Minutes - Council Work Session - 03/16/2004 - Joint with Planning Commission

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Discussion of RALF funds included the possibility of funds being used for the overpass and interchanges on Highway 10, condemnation of properties, and denied site planning requests that have gone through the court of appeals or district court. Commissioner Johnson noted the City Attorney is anticipating there may be a lot of commercial development that will be denied. There may be an issue with all of those property owners that are commercial/non-residential properties trying to negotiate based on the appeals process, and it is anticipated that they may not reach their agreement. That could then leave the City with a condemnation on the property. Chair Nixt noted the process is likely such that the timing to get this type of situation approved through the RALF program would not line up well. It is not as likely a practical approach for them to consider in relation to how restrictive the ordinance should be. Associate Planner Wald noted several months ago, the Planning Commission and City Council reviewed the first draft of the H-1 Ordinance. In the process of revising the ordinance, it became apparent that staff needed additional input from the City Council and the Planning Commission. Staff would like direction regarding how the H-1 Ordinance should be structured to address development within the Highway #10 Corridor that will be affected by highway improvements some day. Staff would like to have the amendments to the ordinance on the agenda of the April 1st Planning Commission meeting for a public hearing and on the agenda of the first City Council meeting in April. She explained the following are a few options for addressing development: 1. Leave the existing B-2 Highway Business Ordinance in its current form. 2. Restrict development within the designated Highway #10 Corridor based on limiting the permitted uses. 3. Restrict development within the corridor based on size of structure. Frank Pafko of MnDOT advised this is an exercise in risk management. They know what they need to do and it will be costly. They need to try to prevent land from developing into the highest and best use, as it could price itself out and the City will be living with Highway 10 the way it is. If it is too restrictive and the City buys up everything they have lost tax base and it will sit vacant until the Highway improvements begin. The balance would be somewhere in the middle. The Commission and Council discussed the following issues associated with the drafting of the H-1 Ordinance: · Square footage · The appropriate level of restrictions on permitted uses · Safety · The possibility of a temporary node with the City owning the land and leasing it for a certain period of time · Eliminating permitted uses that would create issues Joint City Council/Planning Commission Work Session/March 16, 2004 Page 3 of 7