Mayor Robert Backon, Mayor Pro Tem Robert Megowen, Councilors Rachel Lankton, Gernot Joachim, Mike Needham, and Dan Salo.

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1 REGULAR MEETING HOUGHTON CITY COUNCIL WEDNESDAY, NOVEMBER 13, :30 p.m. CITY COUNCIL CHAMBERS, CITY CENTER PRESENT: Mayor Robert Backon, Mayor Pro Tem Robert Megowen, Councilors Rachel Lankton, Gernot Joachim, Mike Needham, and Dan Salo. Also present for the City: City Manager Scott MacInnes, Clerk Ann Vollrath, Treasurer Jodi Reynolds, Director of Public Works Mark Zenner, and Police Lieutenant Nick Roberts. ABSENT: ALSO PRESENT: Councilor Craig Kurtz. A Representative of the Daily Mining Gazette, WMPL, WOLV, Eric Waara of U.P. Engineering, Cleo Ruonavaara, Elise Nelson, Steve Pence, Derek Bradway, Jon Lehtinen, Mark Kemppainen, Steve Kinnunen, Eric Waara, Marty Feira, Christopher Cena, Jen Winikus, Jon Julien, Mike Burink, John McRae, Ted Gast, Jay Green, Mimi Merz, Karin Cooper, Clifford Joeltte, Dick Dunnebeck, Mark Lambert, Amber Haselhuhn and other members of the community. REGULAR MEETING: Mayor Backon called to order a Regular Meeting of the Houghton City Council and the Pledge of Allegiance was recited. APPROVAL OF PREVIOUS MINUTES: A motion was made by Lankton and seconded by Needham to approve the minutes of the October 23, 2013 Regular Meeting as written. Yes: All REVIEW AND APPROVAL OF AGENDA: OPPORTUNITY FOR PUBLIC TO ADDRESS COUNCIL: The Mayor added under New Business Item E Personnel Committee. No one addressed the Council. PETITIONS AND COMMUNICATIONS: Clerk Ann Vollrath read a letter from Mark Lambert of U.P. Kids withdrawing the parking variance request that was submitted on October 15 th for the Good Will Farm property. PUBLIC HEARINGS: Mayor Backon called to order a Public Hearing regarding proposed Ordinance to conditionally rezone the Good Will Farm property at

2 MacInnes Drive from R-3 to B-3 with the conditions that it will only be used for R-3 use groups and that it will only go into effect upon the sale of the property. Clerk Vollrath read a letter from attorney Glenn W. Smith stating that the KD Fraternity supports the development as long as it conforms to current zoning laws. He also stated that the KD s prefer one bedroom apartments versus three or four bedroom units. Clerk Vollrath read a letter from Jim Cote, President of the Theta Tau Fraternity asking that an entrance to the proposed Good Will Farm Apartments from MacInnes Drive be reconsidered. He also asked that improvements to Fairview Drive, including sidewalks on both sides of the street, be done for the safety of pedestrians. Clerk Vollrath read a letter from Gail Sanchez of Hancock asking the Council to not rezone the property citing case law that she feels states the rezoning is spot zoning which cannot be done when the basis for the rezoning is economic gain to the landowner. Clerk Vollrath read a letter from Karin Cooper of U.P. Engineers and Architects in support of the rezoning as she feels higher density student housing adjacent to Michigan Tech makes sense for the community. Clerk Vollrath read a letter from Amberlee Haselhuhn, President of Michigan Tech Graduate Student Government stating that the Graduate Student Government voted unanimously to support the proposed housing development because it will increase housing competition that will improve the quality of existing housing, is situated within walking distance of campus, and provides a viable alternative to Daniell Heights housing when the university renovates the housing. Clerk Vollrath read a letter from MTU graduate student Noah Buikema stating that the available houses and apartments for rent in the city are not in good condition. The city is in need of clean, quiet, quality housing. Clerk Vollrath read a letter from Allan and Ann Gregg of 1009 E. Houghton Avenue stating that they were unable to find suitable off-campus housing for their daughter when she moved here in Amberlee Haselhuhn, President of MTU Graduate Student Government, stated that the proposed apartments will meet graduate student needs. Graduate Student Government generally agrees with and supports housing developments that meet graduate student needs regarding safety, quality, affordability, and closeness to campus. There are many solutions to meeting these needs. Attorney Mike Burink represents Jon Julien. He discussed the colored spreadsheet titled Goodwill Farm Density Issue that compares the proposed development to what is allowed under the current R-3 zoning by parking, green space, and building size. The 135 bedrooms Jon Julien proposes to build is a lesser amount than what he could currently build if he chose to build fourbedroom apartments. The proposed complex is not a significant change to 2

3 what is allowed in R-3 zoning. Mr. Julien is asking for the change to allow flexibility to accommodate the types of bedrooms that students need. Mr. Burink answered some of the issues raised by Steve Pence. The first issue is the question of spot zoning. Mr. Burink said that he read the case law provided by Mr. Pence and does not feel that there is any spot zoning at issue here. The cited case discussed a commercial business in a residential zone. Mr. Burink also read the statute that Mr. Pence discussed and felt that the statute did not fit in this instance as it dealt with a zoning issue in an airport. Mr. Burink read through the factors the Council was provided by the City Attorney. The first factor asks if the proposed use is compatible with the surrounding area. Mr. Burink said he feels that student housing in an area near campus and other student housing is appropriate. The second factor asks if the proposed use will result in traffic congestions or create safety problems. Mr. Burink feels that the factors should be compared by what he proposes to do and what he is allowed to do under the present zoning. Mr. Burink said he does not feel that the change in zoning will create more traffic than what is allowed under R-3. There will actually be less traffic because there will be less bedrooms than what could be built under the R-3 situation. The third factor asks if the proposed project will have a significant adverse effect on property values. He does not see how the proposal will have an adverse effect on property values. The fourth factor asks if the proposed project will significantly increase noise in the area. Mr. Burink said he does not see how the proposed development will provide more noise than a development built under the R-3 zoning. There will be fewer people under Mr. Julien s B-3 proposal. The fifth factor asks if the project satisfies a need in the community. Mr. Burink said there is an identified need for increased student housing. This development will satisfy the need. The last factor asks if the proposed project is incompatible with the master plan for the area. This proposal fits right in with the neighborhood. Derek Bradway mentioned that the colored spreadsheet titled Goodwill Farm Density Issue shows increased density and not the density as it presently is. He also said that there has not been anything new since the last council vote and that there are rental vacancies in the City. He asked that the Council not make special rules for one person and that they are consistent for everyone. City Manager MacInnes asked Mr. Bradway if he understands that almost every apartment building in East Houghton does not meet the density requirements. Mr. Bradway said that he is not opposed to increased density, but that is not what is before the council today. Mark Kemppainen said that he feels this development is a perfect fit for increased density, but what is being proposed exceeds the density for R-3. A 3

4 rezoning to B-3 removes all density rules. He asked that the Council be consistent and fair to the owners of all of the 450 R-3 lots in the City. There were no other comments by the public. A motion to close the public hearing was made by Joachim and seconded by Lankton. Yes: All REPORTS: Director of Public Works Mark Zenner reported that crews are doing their annual fall sewer inspections. The paving projects on Garnet Street and Portage Street are complete. There may be room on Portage Street to add a 3-4 foot paved walkway on the shoulder next summer. All of the parks are closed for the season except for Nara Park. The water/sewer project is done for the season. Police Lieutenant Nick Roberts reported that the department answered 174 complaints, made 16 misdemeanor arrests, handed out 50 civil infractions and 6 city tickets. The department received one body mike to use. The officers will see how it works and if they would like to order more. The new police vehicle will be in next week. City Manager MacInnes reported that Susie Landers, Business Development Director, has already met with some downtown businesses and is working with them. He feels that her energy will help downtown businesses. Elise Nelson, Director of the Carnegie Museum, announced that the museum was designated a Keweenaw National Historical Park Heritage Site. The only other heritage site in Houghton is the mineral museum. UNFINISHED BUSINESS: A motion was made by Lankton and seconded by Megowen to adopt Ordinance Mayor Backon explained that Councilor Needham will not vote on the issue because he voted at the Planning Commission. The Council reviewed the factors: 1. Is the proposed use generally compatible with the existing use of the property surrounding the proposed site? The council discussed that it is compatible with the neighborhood because it is surrounded by fraternities, MTU dorms, and Daniell Heights apartments. 4

5 2. Would the proposed use of the site result in traffic congestion on the adjacent streets or create a safety problem? City Manager MacInnes commented that he counted cars and pedestrians on Fairview Drive. He said that the traffic averaged one car for every seven minutes with one pedestrian for every three minutes. 3. Would the proposed project have a significant adverse effect on property values in the adjacent area? City Assessor MacInnes said that according to the tax map there is no decrease in property values for properties near apartment buildings in the city. 4. Would the proposed project significantly increase noise in the area? The police department said they do not have any noise complaints from other apartment complexes in the city. 5. Would the proposed project satisfy a need in the community? City Manager MacInnes stated that there are 4,000 students living in off-campus housing. There is space for 1,200 students in the East Houghton neighborhoods. There are about 20 single bedroom apartments in that area. Councilor Lankton said that the graduate students expressed a need for one bedroom apartments. 6. Is the proposed project incompatible with the master plan for that area? The Council agreed that this is compatible with the master plan for the area. Mayor Pro Tem Megowen said that there will be less car traffic because the students will live closer to campus helping to make our city more bike-friendly. Councilor Lankton stated that her motion stands based upon the checklist the council reviewed and based upon the city s experience with Mr. Julien as she trusts he will build something the city will be proud of. The Clerk polled the Council: Yes: Lankton, Megowen, Backon, Joachim, Salo Abstain: Needham City of Houghton ORDINANCE AN ORDINANCE, PURSUANT TO CHAPTER 98, SECTION 4, (98-4), 5

6 OF THE CODE OF ORDINANCES, CITY OF HOUGHTON TO RE-ZONE PROPERTY THE CITY OF HOUGHTON ORDAINS: Pursuant to Chapter 98, Section 4, (98-4), the Code of Ordinances, City of Houghton, Michigan and Act 207 of the Public Acts of 1921, as amended, the following-described property is re-zoned from R-3 (multi family) to B-3 (general business) with conditions. The West ½ of Lot 3 and Lots 4 and 5 of Block 11, Park Addition to City of Houghton and the North 110 of the West ½ of Lot 7 and the North 110 of Lot 8, Block 13 and also the North 10 of the South 30 of the West ½ of Lot 7 and the North 10 of the South 30 of Lot 8 Block 13 Park Addition to the City of Houghton and vacated portion of Midland Street and the North 120 feet of Lots 5 and 6 and the North 120 feet of the east ½ of Lot 7, Block 13, also the south ½ of vacated Midland Street adjoining lots 5, 6, and the east ½ of Lot 7 Park addition to the City of Houghton. Conditions: 1. The property will only allow R3 use groups. 2. The proposed conditional rezoning will only go into effect upon the sale of property. The Houghton City Zoning Map, as amended to reflect such re-zoning, is attached hereto as Exhibit A. This Ordinance was enacted by the City Council of the City of Houghton, Houghton County, Michigan on the 13th day of November, 2013 This Ordinance shall take effect upon the recording of the Statement of Conditions executed by the owner of the property and the City of Houghton, but no less than 10 days from the date of adoption. Effective the 25th day of November, Robert Backon, Mayor Ann Vollrath, City Clerk NEW BUSINESS: Councilor Lankton asked about the expenditures for the Oddfellows building. City Manager MacInnes said that the bank will not be able to sell the building for a few months and he is still showing it to interested people. The Council instructed the City Manager that he can put the heat on in the building and pay for it so that the building does not suffer damage over the winter. A motion was made by Lankton and seconded by Joachim to approve the accounts payable for October 24, 2013 to November 13, 2013 as presented. The Clerk polled the Council: Yes: Lankton, Joachim, Salo, Backon, Megowen, Needham 6

7 Proposed Ordinance was introduced in writing. This proposed ordinance will adopt the International Property Maintenance Code to cover all property in the city. The Clerk will notice a public hearing for this ordinance on Wednesday, December 4, Proposed Ordinance was introduced in writing. This ordinance will remove two unused portions of the street ordinance. The Clerk will notice a public hearing for this ordinance on Wednesday, December 4, City Manager MacInnes presented budget adjustments for the year A $20,000 contribution is needed from the general fund to the transit fund. A $50,000 contribution is needed from the general fund to the public improvement fund to cover extra costs to Dee Stadium. The parking fund is now in a deficit because of the extensive work done to the big downtown parking deck. A contribution will be made from the equipment fund to the parking fund of $140,000. A motion was made by Joachim and seconded by Salo to approve the budget adjustments for the fiscal year as presented. The Clerk polled the Council: Yes: Joachim, Salo, Lankton, Backon, Megowen, Needham Mayor Pro Tem Megowen stepped down from the personnel committee until after the new city manager is hired. Mayor Backon appointed Councilor Salo to the personnel committee. The personnel committee will conduct phone interviews of the three candidates on November 20 th. A special council meeting will be scheduled for December 11 th to interview the remaining candidates. Mayor Backon said that the council will return to their fall and winter dress code at the next meeting. A motion to adjourn was made by Lankton and seconded by Needham. Yes: All Motion carried Adjourned 6:40 p.m. Ann Vollrath, Clerk 7