City Council Meeting Date: March 14, 2017
To: Mayor and City Council
City Administrator
From: Chris Heineman, Community Development Director
Title
Discuss updated project proposal for expansion of Basil’s Pizza at 219 Water Street
Body
Summary Report:
Since the last time staff provided an update on the proposed expansion of Basil’s Pizza in 2016, the scope of the project has changed substantially. The preliminary site plan utilized the adjacent city-owned parcel including a pergola, patio, and outdoor seating. The updated project proposal includes a one-story expansion of the existing Basil’s Pizza building with an estimated project cost of $135,500 (see Attachment 2 - Basil’s Addition Revised Proposal).
Project History
The City of Northfield acquired 219 Water Street South in December of 2013 to facilitate future redevelopment opportunities in this area. At that time, possible options for redevelopment that were considered included improved access to the River walk and potential expansion of adjacent businesses, including outdoor seating. The final purchase price for this property was $57,000 with additional costs incurred for survey work, asbestos abatement, demolition and ongoing maintenance. The property now sits vacant and may be considered a redevelopment site.
Owner Theologia Pitsavas approached city staff in the spring of 2015 with an interest in developing a patio on the north side of the Basil’s Pizza building to expand outdoor seating for the restaurant. The site plan was reviewed by staff at a Development Review Committee (DRC) meeting and it was determined the project met Land Development Code and Building Code requirements. The City Council reviewed the proposed project at a work session on November 10, 2015.
Pursuant to MN Statutes, the Planning Commission reviewed the proposed disposition of City-owned land to determine if it was in conformance with the Comprehensive Plan. The Planning Commission reviewed the proposed project at a meeting on December 17, 2015 and determined that the disposition of City-owned property and proposed use would comply with the Northfield Comprehensive Plan. The Planning Commission also recommended that the minor subdivision be compliant with Land Development Code regulations. A letter from the Planning Commission is included as an attachment.
Staff contracted with Rapp Surveying to create a new survey based on the recommendation of the Planning Commission. Staff also obtained a broker’s opinion on the per-square-foot value of land in question. Based on this information dated April of 2016, an estimated value of $11,500 was determined for a portion of the City-owned parcel as depicted in the new survey.
Next Steps
If the Council would like to proceed with this project, a public hearing must be held prior to any sale of City-owned property. The City Charter has a specific provision dealing with real property transactions. Chapter 15, Section 15.5 of the City’s Charter reads as follows:
The council may by resolution approved of by at least five (5) members sell or otherwise dispose of any real property of the city. A sale or other disposition of the city’s real property may be made only after a public hearing has been held and published notice of the hearing has been given at least ten (10) but not more than thirty (30) days prior to the hearing. The net cash proceeds of the sale of the property shall be used to retire any outstanding indebtedness incurred by the city in the acquisition or improvement of the property. Any remaining net cash proceeds shall be used to finance other improvements in the capital improvement budget or to retire any other bonded indebtedness.
Sale of property requires a supermajority vote of at least five members of the Council, which may occur only after a public hearing is held on the question of the sale following at least ten (10) but not more than thirty (30) days’ notice of the hearing.
A Minor Subdivision to consolidate the lots into one parcel would also be required. A Minor Subdivision provides a clean record of title for tax records and is required by the Building Code as structures are not allowed to cross parcel lines. A new survey has already been completed and is included in the packet for your review.
The Land Development Code classifies this property in the East of Highway Three Sub-District and site development standards for this C1 zone must be followed for this project. Additional off street parking is not required, and the proposal as shown would meet the standard requiring any lot edge that is not occupied by a building shall have a landscaped setback, low masonry wall, decorative metal fence, decorative plaza or elevated deck.
A formal Site Plan review involving the Development Review Committee will be required for approval. The Site Plan review process should take 3-4 weeks once a complete application is submitted. Some considerations for this application are:
• The project must meet all Minnesota Building Code requirements
• All portions of a site not covered by buildings, parking, driveways, walkways, plazas, decks or seating shall be landscaped.
• Trash and recycling storage shall be screened with a sturdy, four-sided enclosure.
• The site is located within the Shoreland Overlay District and is required to provide on-site storm water management. Any private on-site storm water facility is required to have a maintenance agreement and maintenance plan.
In order to move forward with this project a standard development agreement will be required. Staff is planning to schedule a closed meeting on April 4th to discuss negotiable sale terms for the sale as allowed in state statutes. Once direction is provided items that would be included in the development agreement include final property description, sale price and related closing expenses, developer commitments for project scope and timelines.
Alternatively, the Council may wish to negotiate the specific terms of this agreement in an open meeting.
Alternative Options:
At the Council work session on November 10, 2015 an alternative option was proposed to issue a request for proposals to provide an opportunity for other prospective developers to utilize the site. Two or more members of the City Council could request an agenda item be placed on the next regular council meeting to consider a request for proposals. Otherwise, staff will continue to work directly with the adjacent property owners regarding this proposed project.
Financial Impacts:
No financial impact has been determined at this time. The purchase and development agreement will include the specific terms of the agreement including the sale price. The current proposed project as presented will have a limited impact on tax capacity for this site.
Tentative Timelines:
Staff is intending to schedule a closed meeting on April 4, 2017 to discuss sale terms and conditions dependent on council discussion including possible other alternative actions.
If terms become finalized, a Public Hearing will be scheduled and advertised for an upcoming City Council meeting thereafter.