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After nearly four hours of discussion, Gaylord’s City Council agreed to continue negotiations on a proposed housing development west of the storm water pond.

The City’s Planning & Zoning Commission capped a two hour meeting Wednesday by approving a conditional use permit for the planned unit development (PUD). This conditional use permit allows for flexibility in the City’s subdivision ordinance, according to City Administrator Kevin McCann. The proposed development calls for smaller lot sizes and smaller homes than originally planned, he explained.

Also approved by Planning & Zoning was a preliminary plat with six conditions attached.

Council members then discussed the issue for two hours. Eventually, on a 3-2 vote, the City Council followed the Planning & Zoning Commission’s recommendations.

For more than a year, the City has been negotiating with Meadow Wood Builders which owns a 15-acre parcel of land west of the pond. Unable to sell as many homes as initially planned for the area, the Jordan developer revised its plan to include smaller lots and smaller homes.

The revised plan immediately prompted concern from City officials and residents who already live in the development.

But, under the impression their decision wasn’t final, council members approved the revised preliminary plat for the development more than a year ago. The preliminary plat is now being described as a “glorified sketch plan” by former Gaylord Public Works Coordinator Avery Grochow.

Council members later voted to deny the plat revision request, a decision immediately contested by the developer.

In November, a District Court Judge ruled in favor of Meadow Wood Builders. The judge ruled that the developer did everything it was asked by the City. He also stated that the City failed to follow proper procedure required by its subdivision ordinance.

The City has considered appealing the court decision while continuing to negotiate with the developer.

Recent negotiations have produced another plat revision. There are three less lots (36) in the most recent plat. According to Jason Kuboushek, an attorney representing the City, also gained by the City in the agreement is: an alley in middle lots was removed; a trail easement was included; a buffer strip (between residential and commercial sites) was included.

Kuboushek also said an agreement would bring “finality” to the issue. He said being successful in appeals court is a “heightened standard.” It would involve having three judges believe the initial judge was wrong in his findings, Kuboushek explained.

Mayor Doug Quast, who was visibly frustrated, agreed that it would be in everyone’s best interest to come to a final decision.

Quast’s primary concern was one of the six conditions attached the preliminary plat. The developer is asking the City to share in the cost of developing a Third Street East extension. This road would connect with Jefferson Avenue. Quast contends that Jeff Hennon, of Meadow Wood Builders, had agreed to pay the entire cost for that street extension during a meeting in April.

Hennon was not present at Wednesday’s meeting. The developer was represented by Cheryl Trnka. She said it would be cost prohibitive for the developer to construct the Third Street East extension. According to Trnka, the developer has never felt responsible for the entire expense of the street. She viewed the cost sharing as compensation for reducing the development from 39 to 36 lots.

The street extension issue is seen as a “deal breaker” by attorney Kuboushek. Other conditions to be negotiated include:

• The owner must enter into a new Development Agreement with the City. The Development Agreement must contain provisions pertaining to financial security for the project;

• The owner must enter into a PUD Agreement with the City;

• A buffer strip must be established along the perimeter of the addition;

• The PUD shall reserve a trail easement for a future trail through the subdivision;

• Compliance with SEH’s engineering and planning comments.

The City asked Short Elliott Hendrickon Inc. (SEH) representatives to review the most recent development proposal from an engineering and planning aspect. Justin Black of SEH reported that there are still review comments that need to be addressed.

Existing homeowners in the development expressed their concern to the planning and zoning commission last week. According to McCann, those residents were concerned about a decline in their property value if smaller lots and homes are allowed. He also said the homeowners were told by the developer that the entire development would include similar size homes. According to McCann, the homeowners would like the City to appeal the court decision.

Established lots in the development are approximately 100-feet wide. McCann said the revised plat includes three 50-foot lots. A majority of the lots in the plan are 60-feet wide, he explained.

Chuck Klimmek, president of Gaylord’s Economic Development Authority, told council members that the City needs the housing. He said the City should research the cost of the street extension and it may have to “bite the bullet.” Klimmek doesn’t believe there will be much of a property value loss with the smaller lots. He called that idea “a myth.”

Mayor Quast agreed that negotiations should continue but said if the City would lose an appeal, “there are other options.” “This is a development we can’t take lightly because it will be here for many years.”

Mayor Quast eventually cast the deciding vote which will lead to more negotiations with the developer. Council members Pat Pinske and Dale Breuer also voted in favor of further negotiations while Carl Wetzel and Jessica Uecker opposed.

The City and the developer will continue negotiations either this week or next, according to McCann. The goal is to get a final plat approved in July or early August.

If negotiations are unsuccessful, the City can still appeal the court decision. The deadline to appeal that decision has been extended to August 11th.