BAXTER — Buoyed by the success of the Grand Oaks and Grand Oaks North townhomes, Kuepers Inc. architects and builders is proposing a similar development off Clearwater Road. 

Kuepers presented its sketch plan for Sprucewood Townhomes to the Baxter City Council for comment Tuesday night. The development is proposed on 4.19 acres just west of Highway 371 next to Lindner Media. Kuepers’ proposal is for six buildings consisting of six housing units in each.

On a motion from council member Todd Holman, the council with a 3-0 vote approved the concept of a residential planned unit development project for the property. Council member Mark Cross, a Kuepers employee, abstained and council member Rob Moser was absent. 

Holman’s motion was made with the understanding that recommending a concept didn’t mean the council was approving Kuepers’ proposed project. Kuepers proposal will need to be reviewed by the Architectural Review Commission; Long Range Planning Commission for Kuepers’ request to have the proposed rezoned from office to residential; and Planning and Zoning Commission for the planned unit development proposal before final council approval.

Holman said he was leery of council action Tuesday that would give approval or denial to the sketch plan presented because it appear that the council is approving the project.

Mayor Darrel Olson agreed. 

“If we say, ‘Yeah, this is a great idea,’ then it (appears to be) a done deal,” Olson said. “I don’t want to send the wrong impression to the applicants or the commissions.”

Cross said the sketch plan presented Tuesday was consistent with other sketch plans approved by the council in the past. The council, he said, needed to weigh in on whether the project was possible or had no chance. 

“Sketch plans were established to developers wouldn’t go through all the time and money,” of submitting applications to the city only to have the council deny the project, Cross said. 

Holman also detailed several other questions he had about the project, including how going down a zone would affect assessments; whether the city would be able to issue a variance to allow for 36 units as proposed by Kuepers; whether there would be any issues with Clearwater Road; and whether there were pedestrian enhancement plans. 

On the issue of the variance, which Kuepers would need to have 36 units instead of the 34 or 35 allowed by city ordinance through credits, City Attorney Brad Person said based on recent Supreme Court action restricting when cities can grant variances he would recommend against it. Instead city ordinances should be amended, he said. 

Holman also said it was disingenuous for the city to say there would be no financial implications, as was written in the request for council action outlining the project, when the tax credits sought by Kuepers for the project would involve some sort of city involvement with tax-increment financing or through deferrals on other fees. 

Steve Kuepers, executive vice president of Kuepers Inc., said discussion on the city’s participation would be for a later meeting. The biggest question for the sketch review, he said, was whether the city would be willing to rezone the property from C-2 commercial to R-2 residential. 

Kuepers said the Grand Oaks townhomes were a “smash success” and now have a waiting list of 20 people. He said there’s a high demand for such housing, especially considering the high number of foreclosures in recent years. 

When Olson said he was concerned about possible oversaturation of apartments, Kuepers responded that developers and the Minnesota Housing Finance Agency, which is offering the tax credits for the project, would be careful not to get to that point. 

“It’s an opportunity for the city to get a lot of outside money to drive something good,” Kuepers said. 

In other action, the council:

Amended changes made at the Feb. 1 council meeting  to the city’s state-aid road system by adding Knollwood Drive back to the system and removing Glory Road and Isle Drive. Also added were Novotny Road, Dellwood Drive, Clearwater Road, and Edgewood Drive. Knollwood Drive was added back after it was learned it removal from the system would necessitate a pay back in state aid. Also removed from the system on Feb. 1 were Cedar Scenic, Travine Way and Meredith Drive.

Accepted a $20 donation from Michael and Elaine Youngquist for the Baxter recreation pond hockey program. 

Approved the final plans for the Baxter portion of the College Road/Crow Wing County Road 48 improvement in conjunction with Brainerd’s reconstruction of College Drive. 

Adjourned to 5:30 p.m. Thursday for a council workshop.

MATT ERICKSON may be reached at matt.erickson@brainerddispatch.com or 855-5857.