Tower City Council continues quest for economic development

MONDAY, APRIL 11, 2016 — Economic development remained the primary focus of the Tower City Council at its regular meeting held on Monday night. The council revisited a Planning and Zoning recommendation to rezone three parcels of real estate, an agenda item tabled at the March 14 city council meeting, returning it to the city’s Planning and Zoning Commission seeking its input on the benefits and negative impacts of changing the zoning from the current Residential 1 designation, to the recommended Tower Harbor North. Citing economic development potential the city council also focused its attention, for the first time, on acquiring Main Street tax forfeit land, offered to the city by St. Louis County.

Rezoning the three parcels, located near the intersection of Hoodoo Point Road and Lake Avenue South, in the range of 1,000 feet of the confluence of the river and Lake Vermilion, has proven to be quite controversial. Lake Vermilion Mill Point Plat home owners along with two new Tower business people filled the council chambers to speak their minds.

The zoning change issue first came before the Planning and Zoning Commission in late February when Dave and Diane Rose requested a change from the current Residential 1 designation so that they can begin to develop a conditional use proposal on an unusually shaped river front lot owned by Recreational Power Sports of Minnesota, Inc., recently purchased from former City Clerk Tim Kotzian. The Roses would like to develop a recreational vehicle campground on the lot straddling both sides of the East Two River southeast of Mill Point Plat.

Since the initial public hearing on the Recreational Power Sports of Minnesota, Inc. parcel, Planning and Zoning added the old Tower garbage dump site and the notable red landmark Wiseman-Helm home property to rezoning consideration. (The Wiseman-Helm home is the picturesque red 19th century building off the southwest corner of Lakeview Cemetery).

Michael Totenhagen, a Mill Point Plat resident, addressed the city council citing several points he said the Minnesota League of Cities recommended cities should follow when considering a change in residential zoning. Haugen said that a city should examine if the existing application of zoning is unsupported by rational basis; the basic purpose of the existing zoning and any proposed changes; determine if adequate space already exists for each zoning designation; consider factual and concrete issues presented by neighborhood opposition and how the proposed zoning change will impact or alleviate any problems such as traffic congestion; and finally determine if the proposed changes are detrimental to property values and enjoyment of the properties affected.

Victoria Meloche and Charles Carlson, co-owners of Tower’s most recent addition to the Main Street business community — Ubetcha Antiques & Uniques, addressed the council. “I’ve met with most of the business owners here, and they are not wanting to say anything for fear of backlash against their business,” Meloche said. She went on to suggest that the council would be involved with “regulatory taking by not allowing the permit process.”

Alderman Joan Broten said that the council was not considering or discussing any permits at the present meeting. “I’m sorry, but what you’re saying doesn’t make any sense. It doesn’t apply to the zoning change we are discussing.”

“It’s a federal law,” Ubetcha Antiques co-owner Charles Carlson added.

“I’ve spent a lot of time in law enforcement, the federal system. I’m not from Tower,” Carlson said, “I don’t want you to get sued.” Explaining that he had yet to fully complete his move from Wisconsin, Carlson added that he wanted to give the council some friendly advice. “I don’t want to see you get caught up in knee-jerk reactions. Things need to change. Tower is a great area. Base things on fact,” Carlson concluded.

Mill Point Plat resident Todd Borden told the city council it should, “leave the zoning as it is. Mr. Rose bought a residential property. He could put three residential lots on it and recover financially.” There are 18 homeowners at Mill Point, Borden said, “The homeowners are economic development and we are all in favor of economic development, just not in a residential area.” Borden reminded the council that there was a reason Minnesota statute required a two-thirds vote to change residential zoning to a commercial zone or mixed-use zone. The state statute emphasizes that these types of changes should not be entered into lightly. (The two-third vote requirement means the city can only make this type of zoning change with four of the five board members voting in favor of the change).

Dale Robertson, also a Mill Point resident, said that he agreed with his neighbors. “We don’t have anything against a RV park,” adding that they just believe that this residential area is not the right place for this type of development.

“I’ve only lived here a year-and-a-half,” Kevin Norby said, “I’m excited about the harbor project. My concern is about the long term vision. I think stable planning would be most beneficial.”

Vermilion Properties Company, LLC, manager Nate Dostert, the operator of storage units located across Hoodoo Point Road said, “The Tower Harbor project plan is to get boats down the river — for economic development,” indicating that he was in favor of the proposed zoning change.

Following the close of public comments, Mayor Josh Carlson reminded the council that it had returned the zoning change recommendation to the Planning and Zoning Commission seeking specific statements regarding the impacts to property owners and benefits of changing the zoning to Tower Harbor North.

The commission complied, providing the city council with a written statement:

“1. Benefits of Tower Harbor North

“Hoodoo Point Road has been and is a major vein of commercial activity and the Tower Harbor North Zoning compliments the existing commercial properties. Tower Harbor North also offers a more usable use of the properties in question

“2. Potential Property Owner Impacts

“Increased Traffic on Hoodoo Point Road

“Anticipated no tax value changes to the properties being rezoned. The CUP (Conditional Use Permit) Process is in place to provide conditions and protections to area residents. There is potential nuisance factor increase — nuisances being things such as Noise, Safety, Walkers, etc.

“3. Benefits/Impact of Residential Zoning

“ If Zoned R-3 there will be a possible increase of Rental and Single Family Housing.”

Considering the Planning and Zoning Commission’s recommendation, Mayor Carlson turned the council’s attention to the issue of changing zoning on three parcels: The first parcel (No. 080-0020-00030), is owned by Recreational Power Sports of Minnesota, Inc. and is currently zoned Residential 1. The second parcel, (080-0020-00162), is owned by John H. Helm, Annandale, Minn, a descendant of a long time Tower family who now uses the property as a seasonal home is also currently zoned Residential 1. The third parcel (080-0020-00035), owned by the City of Tower, is currently zoned C-2 (Highway Commercial Business).

Mayor Carlson announced that he wanted to make the recommended changes on all three parcels to Tower Harbor North.

However, Alderman Broten objected saying, “I thought we would vote on all three separately. (City Attorney) Andy Peterson recommended that we vote separately on the residential to commercial changes.”

Mayor Carlson explicitly did not like this idea, and questioned Alderman Broten’s authority to call the city attorney. “I don’t recall authorizing you to call the attorney,” Mayor Carlson maintained. “The planning commission was tasked to make this recommendation, and we are following the recommendation,” Mayor Carlson said.

Alderman Broten again questioned, “Is this appropriate? Peterson recommended that we consider them separately since one is already commercial and the two others are changing from residential to a mixed use zone,” Alderman Broten said.

Mayor Carlson was not to be deterred. “I believe it is appropriate,” Mayor Carlson said, “We followed the Planning and Zoning ordinance to a letter.”

Mill Point Plat resident Totenhagen interjected, “You are intermingling. Is this a conflict of interest? You are voting to decide jointly — Mr. Rose’s property and city property.”

Mayor Carlson then made the motion to, “go with Planning and Zoning on this.”

“It’s hard to deny economic growth, while we are tearing down Main Street, Alderman Lance Dougherty said as he seconded the motion.

“We are talking here about a residential area here,” Alderman Broten maintained. “The buildings being torn down are on Main Street and are commercial. The red house has no access to the river and shouldn’t be a part of Tower Harbor North zoning,” Alderman Broten said.

The vote was called and passed by the necessary minimum four votes being in favor. Mayor Carlson, Aldermen Dougherty, William Hiltunen and Brad Matich supported the motion. Alderman Broten was the lone dissent.

Again using economic development as the reason for its actions, the city council turned its attention to the issue of informing St. Louis County of its desire to acquire four parcels of Main Street real estate. The county was inquiring, as it was preparing to tear down three buildings in the 500 block of Main Street, if the city supported demolition of the buildings and if it wanted the empty lots after they were torn down. The county also asked the city to report on what the city plans for the use of the properties. Those three buildings, and one twelve-and-one-half-foot empty lot had gone tax forfeit in recent years. The three buildings slated for demolition are commonly known as the “Nelson’s Hardware building, Bits & Pieces, and Tower’s leaning tower,” according to City Clerk Linda Keith.

Readers of a certain age might better know the Bits and Pieces building as Bill Kitto’s hardware store, Nelson’s Hardware as the Tower Merchantile and Tower’s leaning tower as Bill’s Bait, readers with the deepest memory will recall as a hamburger stand, nearly 100 years ago.

There was consensus among all aldermen and the mayor that the city supported the demolitions and would be interested in acquiring the properties to add to the city’s other vacant Main Street properties on the south side of the 400 block of Main Street to be used for economic development. The properties the city has earmarked for development grows and last month the city entered into a 10 year deal with Orlyn Kringstad of Nordic Business Development Inc., to lead development in Tower.

Alderman Broten questioned how the demolition would be paid for and Clerk Keith said that the county would be covering those expenses.

Clerk Keith told the council that the Nelson’s Hardware building shared a common wall with the Stefanich’s Meat Market building and that she is suggesting to the county that it use the money it would need to spend to shore up that wall to demolish the meat market as well as Nelson’s Hardware. Although the meat market is privately owned, it is being sold under contract, and has $2,463 of delinquent taxes owed on the property. The taxpayers on the property, Karel and Brenda Winkelaar, have indicated that they would be interested in having it demolished.

The city council was unanimous in its decision to acquire the three lots to be created by demolition and the already vacant lot and will so inform St. Louis county. The clerk informed The News, that it is expected the only cost to the city would be the $46 real estate filing fees, transferring ownership.

Land issues dominated the city council’s attention and it also considered cemetery land.. Clerk Keith informed the board, “there is very limited grave space left in Lakeview Cemetery,” and the cemetery association is looking to develop the city’s lot at the southeast corner of the cemetery, at the corner of Cedar Street and the North Third Street alleyway. There is some confusion on who actually owns the parcel in question, (080-0020-00170). The cemetery association believes it is their land, according to Clerk Keith. St. Louis County tax records show the City of Tower as the owner, and Clerk Keith said that she looked at the abstract and still found contradictions in the title. The council discussed the issues and decided that the best way to proceed would be to have city attorney, Peterson review the matter. The aldermen noted that they wanted to make sure and keep a green space buffer between the cemetery and the residential neighborhood.