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HomeMy WebLinkAboutSeptember 8, 2003 RegularCITY OF COLUMBIA HEIGHTS 590 40th Avenue N.E., Columbia Heights, MN 55421-3878 (763) 706-3600 TDD (763) 706-3692 Visit Our Website at: www. ci. columbia-heights, mn. us ADMINISTRATION Mayor Julienne tgyckoff Councilmembers Rober~ ,4. Vgilliams Bruce Nawrockt' Tammera Ericson Bruce Kelzenberg City Mantt£er ~Valter R. Fehst The following is the agenda for the regular meeting of the City Council to be held at 7:00 p.m. on Monday, September 8, 2003 in the City Council Chambers, City Hall, 590 40th Avenue N.E., Columbia Heights, MN. The City of Columbia Heights does not discriminate on the basis of disability in the admission or access to, or treatment or employment in, its services, programs, or activities. Upon request, accommodation will be provided .to allow individuals with disabilities to participate in all City of Columbia Heights' services, programs, and activities. Auxiliary aids for disabled persons are aVailable upon request when the request is made at least 96 hours in advance. Please call the Deputy City Clerk at 763-706-3611, to make arrangements. (TDD/706-3692 for deaf or hearing impaired only) Invocation: Reverend Dan Thompson, Columbia Heights Assembly of God Church 1. CALL TO ORDER/ROLL CALL 2. PLEDGE OF ALLEGIANCE ADDITIONS/DELETIONS TO MEETING AGENDA (The Council, upon majority vote of its members, may make additions and deletions to the agenda. These may be items brought to the attention of the Council under the Citizen Forum or items submitted after the agenda preparation deadline.) e PROCLAMATIONS~ PRESENTATIONS~ RECOGNITIONS AND GUESTS A) Proclamations - none B) Presentations - none 1) Report from the Sister City Committee - Dolores Strand and Wally Logacz C) Introduction of New Employees D) Recognition - none CONSENT AGENDA (These items are considered to be routine by the City Council and will be enacted as part of the Consent Agenda by one motion. Items removed from consent agenda approval will be taken up as the next order of business.) A) MOTION: Move to approve the Consent Agenda items as follows: 1) Approve City Council Meeting Minutes for August 25, 2003 MOTION: Move to approve the minutes of the August 25, 2003, regular City Council meeting as presented. 2) Accept Boards and Commissions Meeting Minutes MOTION: Move to accept the Economic Development Authority meeting minutes of July 15, 2003. MOTION: Move to accept the Planning and Zoning Commission meeting minutes of September 2, 2003. 3) Establish a Work Session Meeting Date for Monday, September 15, 2003 at 7:00 p.m. MOTION: Move to establish a Work Session meeting to be scheduled for Monday, September 15, 2003 beginning at 7:00 p.m. in the City Council Chambers. THE CITY OF COLUMBIA HEIGHTS DOES NOT DISCRIMINATE ON THE BASIS OF DISABILITY IN EMPLOYMENT OR THE PROVISION OF SERVICES EQUAL OPPORTUNITY EMPLOYER City Council Agenda September 8, 2003 Page 2 of 3 4) Adopt Resolution 2003-36, being a resolution authorizing application for a Predevelopment Grant. MOTION: Move to waive the reading of Resolution 2003-36, there being ample copies available to the public. MOTION: Move to adopt Resolution 2003-36, being a resolution authorizing application for a Predevelopment Grant. 5) Establish a heating date of September 22, 2003 for revocation or suspension of rental property license at 4610-4612 Fillmore Street NE MOTION: Move to Establish a Heating Date of September 22, 2003 for Revocation or Suspension of a License to Operate a Rental Property within the City of Columbia Heights against Mohsen Dessouki at 4610-4612 Fillmore Street NE. 6) Approve Business License Applications MOTION: Move to approve the items as listed on the business license agenda for September 8, 2003 as presented. 7) Approve Payment of Bills MOTION: Move to approve payment of the bills out of the proper funds as listed in the attached check register covering Check Number 104826 through 105005 in the amount of $873,035.92. o PUBLIC HEARINGS A) Public Hearing called for Revocation/Suspension of Rental Housing License at 3732 3rd Street MOTION: Move to Close the Public Hearing Regarding the Revocation or Suspension of the Rental License Held by Dale Frenzel Regarding Rental Property at 3732 3rd Street N.E. in that the Property complies with the Residential Maintenance Code. e ITEMS FOR CONSIDERATION A) Other Ordinances and Resolutions 1) Adopt Ordinance//1459, being an Ordinance adopting a gas franchise agreement with CenterPoint Energy Minnegasco. MOTION: Move to waive the reading of Ordinance No. 1459, there being ample copies available to the public. MOTION: Move to adopt Ordinance//1459, being an Ordinance adopting a gas franchise agreement with CenterPoint Energy Minnegasco. 2) Adopt Resolution No. 2003-37, being a resolution pertaining to the rezoning of certain properties at 4707, 4747, 4757, 4801, 4811, and 4849 Central Avenue NE. MOTION: Move to waive the reading of Resolution 2003-37, there being ample copies available to the public. MOTION: Move to adopt Resolution 2003-37, being a resolution pertaining to the rezoning of certain properties at 4707, 4747, 4757, 4801, 4811, and 4849 Central Avenue NE. B) C) Bid Considerations - none Other Business 1) Approval of Purchase Agreement for Single Family Residential Property at 3942 Van Buren Street MOTION: Move to authorize the Mayor and City Manager to execute the purchase agreement for the acquisition of 3942 Van Buren Street in the amount of $100,000 for flood mitigation purposes with funds from the City's Storm Water Utility and DNR Flood Mitigation Grant funds on a 50/50 cost share. City Council Agenda September 8, 2003 Page 3 of 3 8. ADMINISTRATIVE REPORTS A) Report of the City Manager B) Report of the City Attorney e CITIZENS FORUM (At this time, citizens have an opportunity to discuss with the Council items not on the regular agenda. Citizens are requested to limit their comments to five minutes.) 10. COUNCIL COMMUNICATION 11. ADJOURNMENT Walter R. Fehst, City Manager OFFICIAL PROCEEDINGS COLUMBIA HEIGHTS CITY COUNCIL CITY COUNCIL MEETING AUGUST 25, 2003 THESE' & INUT $ NOT BEEN APPROV£'D. The following are the minutes for the regular meeting of the City Council held at 7:00 p.m. on Monday, August 25, 2003 in the City Council Chambers, City Hall, 590 40th Avenue N.E., Columbia Heights, MN. Heidi Albrecht, Director of Christian Outreach, St. Matthew Lutheran Church gave the Invocation. CALL TO ORDER/ROLL CALL Mayor Wyckoffcalled the meeting to order at 7:04 p.m. Present: Mayor Wyckoff, Councilmember Williams, Councilmember Nawrocki, Councilmember Ericson, and Councilmember Kelzenberg PLEDGE OF ALLEGIANCE - recited ADDITIONS/DELETIONS TO MEETING AGENDA Nawrocki suggested starting with the Council Comer items from August 11tn. Wyckoff indicated he could address any such items under 7C3, Other Business. PROCLAMATIONS~ PRESENTATIONS~ RECOGNITIONS AND GUESTS A) Proclamations - None B) Presentation - None C) Introduction of New Employees - None D) Recognition Wyckoff recognized Ted Landwehr, outgoing Charter Commission Member, for his eight years of volunteer services on the Charter Commission. Landwehr thanked the City Council and all the Charter Commission members. He encouraged residents to volunteer for this important commission, as the Charter is a constitution for the city, to make local decisions. Landwehr introduced Mike Hartel, who will be the Charter Commission President until the end of this year when elections are held. Nawrocki stated that the City Charter dates back to 1921. CONSENT AGENDA Walt Fehst, City Manager, took the Councilmembers through the consent agenda items 1) Approve City Council Meeting Minutes for August 11, 2003 Motion to approve the minutes of the August 11, 2003, regular City Council meeting as presented. Nawrocki indicated the following corrections: Page 8, regarding the request for a 2.3 liquor license: he did support the renovation of the building by the previous owner. Page 10, Citizens Forum response to Linngren: he did not suggest contracting out snow removal duties. Page 11, Council Comer: the Mayor gaveled the meeting closed before this agenda item. 2) Accept Boards and Commissions Meeting Minutes Motion to accept the August 5, 2003, minutes of the Library Board of Trustees, the July 17, 2003, minutes of the Charter Commission, and the June 23, 2003, minutes of the Park and Recreation Commission. Ig'yckoff indicated that the Charter Commission meeting was not a dinner meeting. City Council Minutes August 25, 2003 Page 2 of 9 3) Establish Work Session Meeting Date for Thursday, September 4, 2003 Motion to establish a joint Work Session meeting with the Economic Development Authority and the Planning and Zoning Commission to be scheduled for Thursday, September 4, 2003, beginning at 7:00 p.m. in City Council Chambers. Fehst stated this meeting would be to discuss the Kmart development proposal. Wyckoff invited residents to attend to see future plans. 4) Establish Budget Work Session Meeting Dates for the 2004 Budget Motion to set budget work session meeting dates to review the 2004 budget (as listed on the council letter) 5) Adopt Resolution No. 2003-35, Being a Resolution Adopting a Proposed Budget for the Year 2004 Setting the Proposed City Levy, Approving the HRA Levy, Approving a Tax Rate Increase, and Establishing a Budget Hearing Date for Property Taxes Payable in 2004 - Removed Nawrocki stated disappointment that more of the work session dates were not set for September, allowing Council more time to review the budget. 6) Authorize the Sale, Salvage, or Disposal of Specified City and Forfeiture Vehicles at City Auction Saturday, September 13, 2003 Motion to authorize the sale, salvage, or disposal of the specified city and forfeiture vehicles (as listed on the council letter) at the September 13, 2003, City auction. Nawrocta' asked if proceeds go to the general fund. Fehst stated yes, except the forfeiture car receipts go into the Police fund. Chief Johnson stated the list of items can be made available at the City Hall information desk. 7) Establish Date for Public Special Assessment Levy Hearing for Zone 6B of the Street Rehabilitation Program Motion to establish Wednesday, October 8, 2003, at 7:00 p.m. as the Public Special Assessment Levy Hearing for City Project 2003-02, Zone 6B Street Rehabilitation, to be held in the City Council Chamber. Following discussion, Council agreed to set the date for Wednesday, October 8, 2003. 8) Authorize the Sale, Salvage, or Disposal of City Property at City Auction Saturday, September 13, 2003 Motion to authorize the sale, salvage, or disposal of surplus City property as indicated on the attached listing to the council letter of surplus property. 9) Authorize Staffto Seek Bids for Additional 2003 Sewer Pipe Lining - Removed 10) Establish a Hearing Date of September 8, 2003, for Revocation or Suspension of Rental Property License at 3732 3raStreet N.E. Motion to Establish a Hearing Date of September 8, 2003, for Revocation or Suspension of a License to Operate a Rental Property within the City of Columbia Heights against Dale Frenzel at 3732 3ra Street N.E. 11) Approve Payrnent of Bills Motion to approve payment of the bills out of the proper funds as listed in the attached City Council Minutes August 25, 2003 Page 3 of 9 check register covering Check Number 104664 through 104825 in the amount of $999,918.25. 12) Approve Business License Applications Motion to approve the items as listed on the business license agenda for August 25, 2003 as presented. 13) Approve Rental Housing License Applications Motion to approve the attached list of rental housing license applications in that they have met the requirements of the Housing Maintenance Code. Motion by Nawrocki, second by Williams, to approve the Consent Agenda. Item #5 - Adopt Resolution No. 2003-35, Being a Resolution Adopting a Proposed Budget for the Year 2004 Setting the Proposed City Levy, Approving the HRA Levy, Approving a Tax Rate Increase, and Establishing a Budget Heating Date for Property Taxes Payable in 2004 Fehst stated this is the proposed budget levy for 2004, which if set could not be exceeded. This would allow for the recovery of sixty percent of lost State Aid. The resolution recommended for adoption would set a proposed City, Library and EDA levy of $5,447,260, establish a budget hearing date of December 1, 2003 and an HRA levy of $137,683. Wyckoff stated that Fehst has met with each division head to discuss individual department budgets. Fehst indicated that Council had previously discussed budget losses and the allowance to raise back sixty percent of State Aid. This would make cities more dependent on their own property tax rather than balancing out funds on a need basis so each community could provide the same level of service as communities with higher bases, such as airports and mega malls. Fehst read from the 2004 Budget Message information in the Council packet regarding percentage of aid lost at 39. 6percent and percentage increase through the city property tax levy increase of 16. 6 percent. Fehst referred to a chart indicating property tax history. Wyckoff stated that City Councilmembers would now meet with each division head to review their budget. Wyckoff asked the City Manager to explain that residents will not received a huge tax increase. Fehst referred to typical house differentials on five different values of homes in Columbia. There was a decrease in most property taxes from 1997 to 2003. Fehst stated that the increase in 2004 would vary from 13 to 16percent. The State has decreased the tax burden on school districts, commercial and industrial property and placed more responsibility on the cities. Wyckoff stated that the budget information is available at the library and city hall. Wyckoff referred to an article from the Minnesota Business Monthly, which predicts that in ten years forty percent of municipalities will have merged. Fehst stated this may seem scary, but for efficiency in government, it is worth looking at. We have attempted contacting surrounding communities to consider joint services with the City of Columbia Heights. Nawrocki noted the name change to the budget book and indicated that it is still short of information that shouM be part of the budget. He agreed with the City Manager that there should be a consolidation of communities to make their size in Hne with the size of Bloomington. Nawrocki pointed out the cap on how much property values can be raised for taxable purposes, which may be removed in a year or two. Nawrocki pointed out that in the past taxes decreased because of the schools and city taxes increased. The increase in the HRA levy must also be considered. The result this year will be a 21.3 percent increase in net dollar change. It is also necessary to consider there will probably be a utility rate City Council Minutes August 25, 2003 Page 4 of 9 increase. Also, residents are required to pay for a street assessment as their street is improved. Columbia Heights residents are facing considerable taxes and the way to handle this may be a referendum. He distributed an article from the City of Shoreview. Nawrocki urged the non-support of this 21.3 percent property tax increase. Wyckoff complimented Fehst on putting together the preliminary budget. She referred to a negative article from the Tax League and resented that Columbia Heights was included in this. Fehst indicated that fund reserves are necessary, as aid is not received until July of each year. Nawrocki stated that we are not trying to find ways to be more cost effective. He stated that the City Manager has the responsibility to look at all budget requests and to see what the ability of the citizens is to pay and make recommendations accordingly. Council is not doing its job to push the City Manager to downsize the city operation and meet the resources available to us. Fehst indicated that Council wouM make the final decision. Williams stated that cuts are being made and property owners can apply for property tax refunds. We are approving a maximum levy amount. Street improvement values must exceed what we are assessing. Wyckoff stated that we may cut services but we cannot cut our economic development taxes, as we need new homes and businesses. Motion by Ericson, second by Williams, to waive the reading of Resolution No. 2003-35, there being ample copies available to the public. Upon vote: Motion carried. Nawrocki indicated the claim is that we are just setting the maximum levy and we can reduce it, but there is never a reduction. Motion by Ericson, second by Kelzenberg, to adopt Resolution 2003-35, being a Resolution adopting a proposed budget, setting the City, Library and EDA proposed local levy at $5,447,260, establishing a budget hearing date for property taxes payable in 2004 for December 1, 2003 at 7:00 p.m. in the City Council chambers, approving a tax rate increase, and approving the I-IRA levy of $137,683. Upon vote: Kelzenberg, aye; Williams, aye; Ericson, aye; Nawrocki, nay; Wyckoff, aye. 4 ayes - 1 nay. Motion carried. #9 Authorize Staffto Seek Bids for Additional 2003 Sewer Pipe Lining Kevin Hansen, Public Works Director, stated this request is to accelerate the sewer pipe lining program to include the recommended 2004 segment of trunk sanitary sewer from 43nt to 45th on Central Avenue. The lines in this area were televised and determined to need lining. This area was split into three segments and this lining would accelerate the final year. Short term solutions to sewage backup problems would be lining sewer pipes, alarms (high leve0 in the sanitary sewers and possibly alarms in residential units. Long term solutions would include a continued televising and cleaning program, expanded lining program, and looking at other ways to reduce inflow. Nawrocki expressed disappointment in staff not helping residents with sewage backup cleanup. Wyckoff indicated that helping residents wouM show guilt on the part of the city. Fehst stated that some houses have insurance to cover clean up costs. Nawrocki asked that information be given to the public to contact their insurance company regarding backup insurance coverage. Mary Callaghan, 4219 Jackson, stated her belief that the NEI development affects the sewage backup problems in her area, and that it is a crime that residents have to clean up the muck. The streets were torn up and nothing was done to alleviate the problem. Hansen stated that for problems like this there is not one single solution. We have done many things over the years to reduce the risk and will continue to clean pipes, perform lining, replace lids, and seek out sources of inflow. City Council Minutes August 25, 2003 Page 5 of 9 Williams agreed that the problem was revolting, but there is no proof that the NEI project was responsible for the backup. This happened during a very heavy rainstorm. He described the difference between sanitary sewers and storm sewers, and believes that innocent people have sump pumps hooked up to the sanitary sewer. Wyckoff stated that the NEI project pipes go to their proper location, and that it is probably residential homes that have illegal connects. Callaghan asked why these homes are not checked and forced to correct this. Wyckoff stated that it is very costly to do this and that all homes in the City would need to be checked, which is difficult during a budget crunch. Todd Clochie, 4244 Van Buren, read the letter he received from the League of Minnesota Cities Insurance Trust, which stated that based upon their investigation they believe the City of Columbia Heights wouM not be responsible for his damage. He indicated a personal lost of $7, 000 due to this backup. Clochie asked why the City has insurance if it will not cover things like this. He also had water in his bathroom last week when the pipes were being lined. Fehst indicated that there may be illegal connections from gutters and sump pumps that go into the sanitary sewer. Disconnects require smoke tests, dye tests, and are expensive to correct, but that does not mean it should not be done. Nawrocki stated that no one couM prove how much water the NEI development adds to the system, which does add to the problem. We will never totally solve the problem, but it is less than in previous years. We shouM help residents clean up the mess. Wyckoff indicated that she voted no on the NEI project. Williams stated that Council took action on a.quickj°tx to line the 650feet of pipe by these properties. The other option is to pass an ordinance and go into homes to check for illegal connections. He stated that the City Council is committed to finding a solution. Williams questioned why Mr. Clochie had water leaking in his home. Hansen stated that the pipe lining company gives residents a 24 hour notice advising no use of facilities when the lining is being done, and he explained the lining process. Nawrocki questioned the method to notify residents. Hansen will discuss notification with the company. Motion by Wyckoff, second by Ericson, to seek bids for additional 2003 Sanitary Sewer Pipe Lining Project. Upon vote: All ayes. Motion carried. PUBLIC HEARINGS A) Public Hearing called for Revocation/Suspension of Rental Housing License at 4253 McLcod Street N.E. Mayor Wyckoff closed the public hearing as the owner has paid the license fees and submitted a rental license application and scheduled an inspection. B) Public Hearing called for Revocation/Suspension of Rental Housing License at 3726 3va Street N.E. Mayor Wyckoff closed the public hearing as the owner has paid the license fees and submitted a rental license application and scheduled an inspection. C) Public Hearing called for Revocation/Suspension of Rental Housing License at 4000 Washington Street N.E. Mayor Wyckoff closed the public hearing as the property is no longer rental property. D) Public Heating called for Revocation/Suspension of Rental Housing License at 3736 3ra Street N.E. Mayor Wyckoff closed the public hearing at the owners has brought the property/building into compliance with the Residential Maintenance Code. E) Public Hearing called for Revocation/Suspension of Rental Housing License at 3819 Main Street N.E. Mayor Wyckoff closed the public hearing at the owners has brought the property/building into compliance with the Residential Maintenance Code. ITEMS FOR CONSIDERATION A) Other Ordinances and Resolutions 1) First Reading of Ordinance #1459, CenterPoint Energy Minnegasco Gas Franchise Agreement City Council Minutes August 25, 2003 Page 6 of 9 Hansen stated this is a renewal agreement, with the Ordinance modeled after the League of MN Cities information and reviewed by the Suburban Rate Authority (SRA). Changes include additional term definitions, a twenty year agreement and assurance that this would not conflict with the City's Right of Way Ordinance. This agreement will provide uniform restoration and give proper notice to CenterPoint Energy Minnegasco of any scheduled improvements. The agreement language provides for franchise fees; however, does not include any at this time, but may at a later date. The SRA legal council made comments on the definition of "Public Way - to include easements" and added a sentence for federally funded projects. Hansen introduced Al Swintek, Community Services Manager from CenterPoint Energy Minnegasco. Swintek spoke on the:franchise agreement and the company's long time relationship with the City of Columbia Heights. He stated that CenterPoint employees have participated in the local Habitat for Humanity projects, supported National Night Out programs, and been involved in local safety programs. Swintekpresented Mayor Wyckoff with $2,500 check awarded through the CenterPoint Energy Minnegasco Community Partnership Grant program, to help improve the equipment in McKenna Park. Motion by Ericson, second by Kelzenberg, to waive the reading of Ordinance #1459, there being ample copies available to the public. Upon vote: All ayes: Motion carried. Motion by Ericson, second by Kelzenberg, to establish the second reading of Ordinance #1459, being an Ordinance adopting a gas franchise agreement with CenterPoint Energy Minnegasco for the City of Columbia Heights for September 8th, 2003, at approximately 7:00 p.m. in the Council Chambers. Upon vote: Ayes: Wyckoff, Williams, Nawrocki, Ericson, Kelzenberg. Motion carried. Ericson stated that Minnegasco employees volunteer on the Planning and Zoning Commission and the Rising to New Heights Committee. B) c) Bid Considerations - None Other Business 1) Appoint Member to the Planning and Zoning Commission Wyckoff read the list of current applications, following the resignation of Tom Ramsdell. Nawrocki stated that the Chair of the Planning and Zoning Commission spoke disparagingly about Mr. Thompson. He listed Mr. Thompson's relevant background. Motion by Nawrocki to appoint Mr. Thompson to fill the unexpired term on the Planning and Zoning Commission. As a second was not received, the motion was not considered. Motion by Williams to appoint Marlaine Szurek to fill the unexpired term on the Planning and Zoning Commission. Williams listed Ms. Szurek's relevant background. Second by Kelzenberg. Wyckoff indicated her assurance that Ms. Szurek would do a good job, but stated concern with having two former council members on this commission. She suggested appointing Rob Fiorendino, to encourage new residents to become involved. Ericson stated that all of the candidates interviewed last spring were excellent and stated her appreciation to all those willing to service. She agreed with seeking new people and tapping into the resources we currently have. Ericson encouraged those on the list to continue be involved in the community. City Council Minutes August 25, 2003 Page 7 of 9 Upon vote: Kelzenberg, aye; Williams, aye; Ericson, aye; Nawrocki, nay; Wyckoff, nay. 3 ayes - 2 nays. Motion carried. 2) City of Columbia Heights Bylaws of Procedures and Decorum Wyckoff apologized for the actions of Councilmembers at the last meeting, and referred to the City Council Bylaws of Procedures and Decorum. She asked that this document be available to the public at the entrance to the Council Chambers, and that Councilmembers intend to go through this document line by line at a work session. Wyckoff indicated that these rules shouM be followed until the present Council can modify, eliminate or add to this document. Nawrocki stated that it is up to each new body to adopt their own operating rules. He took strong exception to comments regarding the meeting of two week~ ago, and referred to openness in government. Nawrocki requested background information from the origination of these Bylaws. Motion by Nawrocki, second by Williams, to refer consideration of the Columbia Heights Bylaws of Procedures and Decorum to a work session. Wyckoff questioned City Attorney Jim Hoefl whether or not this document was still valid. Hoefi stated that Council could address the document whenever they choose, but currently, this is the document to follow. Ericson agreed to discuss this at a work session, but felt certain items should be highlight at this meeting. Wyckoff read the City of Columbia Heights Bylaws of Procedures and Decorum purpose statement and highlighted procedures from the document. Wyckoff indicated why she adjourned the last meeting when she did. Nawrocki indicated that the adjournment was to silence him from making his point. He indicated that all meetings shouM be cablecast for openness in government. He stated that the presiding officer should be a position of neutrality and to insure that each person gets his or her voice. Nawrocki highlighted his comments regarding procedures in the Bylaws. Ericson indicated that this motion is good to challenge us to be concise in our documents, but that it is unfair to expect others to listen to one Councilmember go on for extended amounts of time. Kelzenberg stated that after reviewing the Bylaws, he felt that they made sense and are for both Councilmembers and citizens. He suggested Councilmember Nawrocki create a bylaws document and that Council review both documents. Upon vote: Kelzenberg, aye; Williams, aye; Ericson, aye; Nawrocki, nay; Wyckoff, aye. 4 ayes -1 nay. Motion carried. Wyckoff gave Nawrocki the opportunity to discuss his unheard comments from the last Council meeting. Nawrocki indicated he would include the items in Council Communication. ADMINISTRATIVE REPORTS Report of the City Manager Wyckoff asked Fehst to list the recent employee promotions. Fehst stated that Lenny Austin was promoted from Police Corporal to Sergeant, Lee Okerstrom was promoted from Police Investigator to Corporal and Gary Gorman was promoted to Assistant Fire Chief. City Council Minutes August 25, 2003 Page 8 of 9 Report of the City Attorney- none CITIZENS FORUM Lester Chies stated he was representing 980 44tn Avenue, which is a four-plex by the post office. The concern was water backup from LaBelle swamp into their basements. He indicated there is too much water running through the storm sewer pipe and that the LaBelle valve must be shut off completely. Ms. Jezuskoc, a resident of the building, confirmed the situation. Hansen stated that LaBelle pond has a control structure, which is manipulated depending on rainfall events. He described the gated control structure, which is left twenty-five percent open, to release water slowly. The gate was not manipulated during the time mentioned. Chies stated that the pond should not have been hooked up to the storm sewer. Wyckoff asked what could be done. Hansen stated that the water was held back during the rain events of 1997 and 2003. This could be looked at during the next scheduled roadwork in this area, but would be three to four years away. Wyckoff asked for a written report from Hansen. Nawrocki asked that Chies receive a copy of this report. Deb Johnson 999 41st, stated that she read the Apache Theater is closing and suggested this area for housing. Wyckoff talked about possibilities for Hart Boulevard. Terry Kelly, 4245 Jackson, asked when the pipes on her street would be lined. Hansen indicated that, based on televised inspections, there is currently no lining recommended on Jackson Street. In October, lining will be completed on the trunk line from 43rd to 45tn. Kelly expressed disappointment that she was encouraged to submit all information on her sewage backup damage and was then denied by the City's insurance carrier. Hansen again referred to the problems of illegal connections and televising lines to fin intrusions. Only one connection was found in the public line and that was removed. Ericson stated that even though Jackson Street would not be lined, the Hning of connecting pipes would also bring relief to her area. Wyckoff stated the desire to rectify this problem. Matt Sherin, 4250 Jackson, asked if the flow from any lines disconnected during road work were moved to another area. Hansen, stated no, but there was a connection into Jackson pond that was disconnected in 2001. This did not change the inflow, as it was an overflow connection. Sherin suggested that the large building and large parking lot close to this area shouM be researched for illegal connections. Hansen stated that building is not a public facility and the entire drainage area would need to be researched. Lorraine Kroll, 4256 Jackson, suggested dredging Jackson pond. Hansen stated this would not help. Nawrocki explained why this would not help. Kroll stated that she did not have any sewage backup, as she put in drain tile five years ago. Fehst asked if she had an automatic backup valve. Kroll stated yes, and that it does work, but recently had battery backup installed in case ora power outage. COUNCIL COMMUNICATION Request by Councilmember Nawrocki - regarding Insurance Claims Nawrocki stated that the home at 3 710 Polk Street, suffered erosion under the garage from a water main break on February 14, 2003. City crews helped with clean up of the dirt that washed out, but did nothing with the void under the garage. The resident has estimates of $400 to $500 to fill in the area. The City's insurance will not cover it, claiming "an act of God". We need to fill the void or have a contractor do it. Williams requested a work session discussion regarding setting up an emergency fund for situations such as this. Hoefl suggested having a comprehensive review by our insurance carrier and having a loss prevention person speak at a work session as to why these types of situation come up and why persons are not satisfied. Fehst stated we did clean up sediment from this freeze~thaw water break and the City Council Minutes August 25, 2003 Page 9 of 9 insurance company did inspect the property and gave their decision. Nawrocki indicated there should be consideration of moral obligations. Fehst stated this wouM be discussed at a work session. Kelzenberg Nothing to report. Williams · Referred to Helen Kersh and the beautiful tomatoes she has grown with the removal of the tree next to her garden. Indicated that you can trim a tree overhanging your property line. Hoefi stated he would not address tree situations on private property, and indicated there are many variables regarding public property. NawrocM indicated that you could cut branches as long as you are standing on your property, but if the tree dies they may sue you. Hoer stated that any Councilmember can discuss property owners rights, and if an individual wants to he or she can give legal advise; but this Council as a body, would not give advice in this situation. Wyckoff suggested getting the advice of our Tree Inspector. Pray for the peace and prosperity of our City. Hope to make amends to citizens with water in their basements. Wyckoff · Wednesday, August 27th at 6:30 p.m. there will be a Minneapolis Water Works construction update at Murzyn Hall. · The August Library Patrons of the Month are Library Volunteers. Ericson · Have a safe Labor Day weekend. Nawrocki · Correction to televised Mayor's Report - The motion made regarding the levy was seconded by Councilmember Williams. · Indicated that comments regarding City employee's time on a job were comments directed to him. Was told to bring it up at a work session and did. Did not say it was true or was not true, but should be looked into. Employee budget cut recommendations were ignored. We do have good staff in the city, good department heads, and in times of emergency we have good service. The City Manager should be more aggressive in searching out more cost effective actions. There is a need to downsize. · Suggested allowing a direct payment plan for utility bills, as this would be better than residents giving credit card numbers to the City. ADJOURNMENT Mayor Wyckoffadjourned the meeting at 10:07 p.m. Patricia Muscovitz, CMC Deputy City Clerk/Council Secretary ECONOMIC DEVELOPMENT AUTHORITY (EDA) REGULAR MEETING MINUTES TUESDAY, JULY 15, 2003 CALL TO ORDER/ROLL CALL President, Murzyn called the meeting to order at 7:03 p.m. Present: Don Murzyn Jr., Patricia Jindra, Julienne Wyckoff, Bobby Williams and Bruce Nawrocki, Tammera Ericson, and Bruce Kelzenberg PLEDGE OF ALLEGIANCE CONSENT AGENDA ~' Approval of Minutes Move to adopt the minutes of the June 17, 2003, regular meeting as presented in writing. Financial Report and Payment of Bills Move to approve Resolution 2003-09, Resolution of the Columbia Heights Economic Development Authority (EDA) approving the financial statements for June, 2003 and approving payment of bills for June, 2003. MOTION by Williams, second by Jindra, to adopt the consent agenda items as listed. All ayes. Motion Carried. ITEMS FOR CONSIDERATION RESOLUTION 2003-10~ RESOLUTION TO AMEND AND RESTATE THE BY-LAWS Streetar stated the EDA Board made and approved a motion to change the EDA meeting start time to 7:00p. m. It is stated in the By-laws the meeting time will be 6:30p. m. Therefore, staff has prepared the revised By-laws to amend and restate by Resolution 2003-10. MOTION by Nawrocki, second by Williams, to waive the reading of Resolution 2003-10, there being an ample amount of copies available to the public. All ayes. Motion Carried. MOTION by Nawrocki, second by Williams, to Adopt Resolution 2003-10, a Resolution to amend and restate the By-Laws of the Columbia Heights Economic Development Authority. All ayes. Motion Carried. ADMINISTRATIVE REPORTS KMART REDEVELOPMENT SITE Streetar stated the redevelopment plan is on schedule with the sanitary sewer analysis completed, the engineering firm of SEH will be conducting an evaluation of all the buildings in the area to determine the City's eligibility for TIF funding and a traffic analysis is underway to determine possible traffic impacts and improvements required as a result of the redevelopment. The developer plans to present the final proposal sometime in August. At the August Planning and Zoning meeting the Comprehensive Plan reguiding and rezoning of the property will be discussed. Economic Development Authority Meeting Minutes July 15, 2003 Page 2 of 3 4828 5th Street Streetar stated the Ribbon-Cutting Ceremony for the joint venture of the property at 4828 5th Street will be held on Monday, July 21st. The Open House will be from 4:30 to 6:00p. m. with the Ribbon-Cutting Ceremony at 5:30p. m. GMHC and the City purchased the non-conforming home a couple of months ago. GMHC then demolished the home and built a new single-family home, which has been sold to a current Columbia Heights resident. 4146 2na Street Streetar stated GMHC has purchased the:property at 4146 2"a Street using part of the $240,000 allocated for the City from MHFA and the Metropolitan Council. Currently, there is a single-family home on the property. GMHC will demolish the home and build 3 single-family homes, as the property has three separate lots on it. 40464048 Central Avenue Streetar stated Raynard Nyberg, the owner of the property at 4046 and 4048 Central Avenue met with staff to discuss options for the sale and redevelopment of the property. There is a sign company, carpet store, barber and beauty shop renting out the over 5, 000 square foot building. The Fire Department has given the owner a correction letter to fix the structural problems on the second floor. Staff agreed to try and market the property to interested developers within the next month. 39th & Central Avenue Streetar stated the Columbia Heights Rental business has been negotiating on the property located behind White Castle on Central to build and relocate. The owner has indicated they will be out of their current location by the end of the year and have already discussed some very detailed plans for the new site with the City Planner. Burger King is still looking at the Jelly & Beans site to rebuild on. 37th & Stinson Streetar stated he met with Gerry Herringer, who owns the Apache Plaza Mall on 37tn & Stinson. Herringer indicated the City helped him sell and redevelop the Kmart property that he also owned and wondered if they could also work with him on the 37th & Stinson site. Streetar stated the redevelopment site would incorporate the Apache Theater and the strip mall. Ideas for redevelopment of the sites are some senior market rate housing and building a new City liquor store. Streetar recommended the City consider purchasing the development property using bonds, as the current interest rate is very low. The funds would be used to acquire, relocate and redevelop the properties. Streetar suggested holding a special meeting between the EDA and Ehlers where the pros and cons of Bonds would be addressed. Murzyn requested staff set up this bond meeting. 3955 University Schumacher stated Haugland will put up a marketing sign on the site. They are looking at doing a 1.8 million dollar construction project on the corner of 40ta & University. Schumacher has been in contact with Mike Sweat, owner of MGS to purchase the property to complete the redevelopment project. Sweat indicated a couple of weeks ago he was negotiating on a site on Central Avenue, To date, Sweat has not given staff a purchase amount for his property. Staff recommended sending a letter to them laying out the condemnation steps that may have to be followed in order for the City to acquire the property for redevelopment. Williams asked how long a quick-take procedure would take. Streetar stated it would take approximately 4 months. Economic Development Authority Meeting Minutes July 15, 2003 Page 3 of 3 Murzyn requested staff and a couple of EDA commissioners meet with Mr. Sweat to discuss the purchase and then if no response after 2 to 3 weeks, the City should go forth with the condemnation process. Schumacher will set up the meeting with Mr. Sweat. Industrial Park Redevelopment Schumacher stated Schaffer-Richardson is contacting all of the business owners around his property about purchasing and redeveloping as much of the area around his site. Schaffer-Richardson might ask the City for help with condemnation if they run into problems with a property owner not wanting to sell. The MPCA Voluntary Investigation and Clean Up grant was been approved and a mobile lab will be set up in August. 4833 University Avenue Schumacher stated he was been working with Collins Auto Body on the purchase of 4833 University to expand his business. Last month the EDA requested staff get a bid from Brown Contracting for demolition of the home. Brown Contracting bid $9,300for the demolition. Staff recommended making a counter offer of $70, 000 with Collins demolishing the home as part of the purchase agreement, which would be a $5,000 increase from the original offer. Murzyn directed staff to make the counter offer. 37th & Central Avenue Schumacher stated Mohamed Samaha, Puerta Villarta Restaurant owner has agreed to sell his property and will let staff know what amount he is asking next week. This would allow the City four properties along the 37th & Central block for redevelopment. Parkview Villa Management Bids Nawrocki asked when the HRA boardmembers will see the Parkview Villa Management bids. Streetar stated five bids were received and will be presented to the HRA at their August 19th meeting at Parkview Villa. Staff will be sending out the bid books to boardmembers a week or so prior to the meeting. ADJOURNMENT MOTION by Williams, second by Ericson, to adjourn the meeting at 8:13 p.m. Respectfully submitted, Cheryl Bakken Community Development Secretary H:~EDAminutes2003\7-15-2003 P= Present 2003 EDA ATTENDANCE A= Absent X= Meeting Cancelled TOTALS Jan.28 Feb. 19 Mar. 18 Apr. 15 May.20 June. 17 Jul. 15 Aug.19 Sept. 16 IOct.21 Nov.18 Dec.16 A P Jindra, Patricia P P P X P P P 6 Ericson, Tammera P P P X P P P 6 Kelzenber~,Bruce P P P X P P P 6 Murzyn, Don Jr. P P P X P P P 6 Nawrocki, Bruce P P P X P P P 6 Williams, Bobby P A P X P P P Wyckoff, Julienne P P P X P P P 6 H:~2003EDA Misc,2003 EDA Attendance PLANNING AND ZONING COMMISSION MINUTES OF THE REGULAR MEETING SEPTEMBER 2, 2003 7:00 PM These minutes not approved. The meeting was called to order at 7:00 pm by Chairperson, Ted Yehle. Roll Call: Commission members present- Peterson, Szurek, Schmitt, Baker, and Yehle. Also present were Tim Johnson (City Planner), Shelley Hanson (Secretary), and Tami Ericson (Council Liaison). The Commission members welcomed Marlaine Szurek who was recently appointed by the City Council to serve on the commission. Motion by Peterson, seconded by Baker, to approve the minutes from the. meeting of August 6, 2003 as submitted. All ayes. MOTION PASSED. NEW BUSINESS Case #: Owner: Address: Phone: 2003-0912 Gerry Herringer 1731 Innsbruck Pkwy W Columbia Heights, MN (763) 574-0293 Applicant: City of Columbia Heights Parcel Addresses: 4707, 4747, 4757, 4801, 4811, 4849 Central Avenue NE. Zoning: GB, General Business District Comprehensive Plan: Transit-Oriented Mixed-UseDevelopment The Comprehensive Plan amendment was recently submitted to Met Council to change to Transit- Oriented Development. This amendment request was accepted and officially endorsed on Aug 21, 2003. The City of Columbia Heights has requested the rezoning of properties located at 4707, 4747, 4757, 4801, 4811, and 4849 Central Avenue NE from GB, General Business District, to a Mixed-Use Development District. This includes the Kmart building which was built in 1972 as a big-box retail site. The operation survived until Kmart bankruptcy proceedings in spring 2002. Since this time Kmart has been vacant. The properties to the north are zoned General Business and the properties to the south and east are zoned Residential. PLANNING & ZONING COMMISSION MINUTES SEPTEMBER 2, 2003 PAGE 2 Rezoning The properties to be rezoned are currently zoned GB, General Business District and the uses of the property are currently commercial, with the Kmart space vacant. The Kmart site alone is 13.5 acres, with the remaining commercial businesses totaling an additional 7 acres. The total site acreage of the Kmart property and Hollywood Video/Savers, Buffalo Wild Wings, Welle Auto, Subway/TCBY/E1 Bustan, and Arby's is 20.5 acres. When evaluating a rezoning request it is important to consider how the proposed zoning change fits in with the surrounding area. The current commercial sites adjacent to Central Avenue have maintained various forms of commercial uses throughout the years. However, the Kmart property is considered a big-box retail site with detrimental topography and sightlines, which has an impact on future commercial business interests. The owner of the Kmart property, Gerry Herringer tried to elicit commercial interest in the site since Kmart moved out, but has had no such success. The market indicated that this is a dead commercial big-box site, which forced the City and the property owner to reevaluate and consider a mixed-use concept for the site. Staff submitted a Simple Comp Plan Amendment to the Metropolitan Council after the Planning Commission and City Council approved the Comprehensive Plan change from Commercial to Transit-Oriented Mixed-Use Development. Metropolitan Council staff indicated that this mixed-use project exemplifies what the Metro Council is trying to promote for first -ring suburban/urban cities such as Columbia Heights. Staff recently received an affirmation from the Metropolitan Council indicating their acceptance of the Comp Plan amendment and their positive support for this project. A rezoning of the Kmart Redevelopment Plan Area to Mixed-Use would be consistent with the recent change in the Comprehensive Plan to allow Transit-Oriented Mixed-Use Development. When evaluating a rezoning request to amend the district boundaries on the zoning map, the Planning Commission and City Council shall make the Following Findings before granting approval of this request: The amendment is consistent with the Comprehensive Plan. - As mentioned, staff recently received official endorsement from the Met Council of the requested Comp Plan amendment to be Transit-Oriented Mixed- Use. The amendment is in the public interest and is not solely for the benefit of a single property owner. The project site redevelopment is certainly in the interest of the public and does not just benefit the Kmart site owner, but benefits the entire City and the future viability of this area. The fact that the property has been vacant for well over a year is clearly indicative that the location is no longer a viable commercial site by itself. Subsequently rezoning the property to allow the addition of a residential component greatly improves the likelihood that the property will be put back into production for the benefit of the entire community. PLANNING & ZONING COMMISSION MINUTES SEPTEMBER 2, 2003 PAGE 3 Where the amendment is to change the zoning classification of a particular property, the existing use of the property and the zoning classification of property within the general area of the property in question are compatible with the proposed zoning classification. The proposed rezoning from General Business to Mixed-Use, which allows both commercial/residential on the site, fits with the surrounding area as the proposed residential component will be a compatible land use with the surrounding residential neighborhoods. Where the amendment is to change the zoning classification of a particular property, there has been a change in the character or trend of development in the general area of the property in question, which has taken place since such property was placed in its current zoning classification. - The closure of Kmart has necessitated the City address the failure of this commercial big-box site. The trend of development and the commercial market certainly has changed since the Kmart closure in spring 2002. This trend necessitates the need to rezone the property for a mixed-use purpose, which would allow for a residential component in addition to commercial developmenO. Purpose of Mixed-Use District: The purpose of the Mixed-Use District is to promote efficient use of existing City infi:astructure; ensure sensitivity to surrounding neighborhoods, create linkages between compatible areas of the City, provide appropriate transitions between uses, ensure high quality design and architecture, create good pedestrian circulation and safety, promote alternative modes of transportation, and increase the quality of life and community image of Columbia Heights. The proposed Kmart Redevelopment Concept Plan has been designed as a pedestrian friendly mixed- use project that will accomplish these goals. Upon successful rezoning of the property, the Transit-Oriented Mixed-Use District that has been established by the City requires that the mix of land use shall be 60% service-oriented commercial/retail, and 40% high-density residential development (12 units/acre minimum). As the Commission is aware, this requirement has been recommended to be changed so a certain % will not be required, but rather this requirement shall be flexible to help facilitate development. The future Kmart Redevelopment Concept Plan proposes a higher % of residential land use than commercial. Performance Standards of the Mixed-Use District are as follows: * Minimum size of a mixed-use development shall be 5 acres - Subject parcels meet this requirement, as the site is 20.5 acres * Maximum non-residential density is 6.0 FAR and the maximum residential density is 20 units/acre. Although the City Council can increase the maximum densities by up to 50% if certain conditions are met - The Kmart Redevelopment plan is still conceptual and has not yet been officially endorsed by the City Council. The densities have not been officially determined yet, but it is anticipated that the project densities will be within the guidelines. * Design of the mixed-use development shall be sensitive to adjacent usable open space and shall include design of pedestrian/bicycle connections to enhance existing circulation patterns - Conceptual draft designs oftheproposed mixed-use concept for the site create and conserve usable open space on-site and provide the necessary pedestrian connections to make the site viable and accessible. PLANNING & ZONING COMMISSION MINUTES SEPTEMBER 2, 2003 PAGE 4 Building setbacks shall be regulated by the final site plan and development agreement approved by the City Council - The mixed-use development district does not require specific setbacks, height restrictions, etc. So in essence it is essentially a Planned Unit Development District, which allows for flexibility in redevelopment and design of each redevelopment site. Buildings shall be oriented to the street or a common open area. Building facades shall be varied to create visual interest. All trash areas shall be screened with consistent building materials as the principal buildings. Monument signage is allowed and shall utilize the same exterior materials as the principal buildings - Based on the preliminary concept plans for redevelopment, it is anticipated that these standards will be met. The final concepts and renderings will go through Site Plan Review and the Platting process and will be reviewed at that time for consistency with the ordinance. Planning Process: In May of 2003, the City of Columbia Heights initiated a planning process for the redevelopment of the Kmart site. As part of the planning process, the City appointed an eleven member Redevelopment Advisory Committee comprised of local residents, business owners, and members of key community groups. The purpose of the Advisory Group was to ensure awareness of community stakeholder groups, and to serve as a sounding board to all the major project recommendations and components. As part of this process, the Kmart Advisory Group recently met on August 7, 2003, and gave their strong support to the Kmart Redevelopment Concept Plan. Design Guidelines: It should be noted that the future development of the Kmart site will be subject to recently adopted Columbia Heights Design Guidelines for Central Avenue. This will allow the City and developer to achieve varied building materials and styles, create curb appeal, and enhance the visual interest of Central Avenue and adjacent areas. Summary: The positive aspects of this proposal are as follows: Rezoning these properties to Mixed-Use will allow for the properties to be redeveloped into a traditional community development pattern allowing for pedestrian connections and creating linkages and enhancing accessibility to the site. Rezoning these properties to Mixed-Use will allow for creation of a neighborhood in-fill residential urban style development project, which will allow for the project site to be viable rather than continue to sit vacant. The proposed Kmart Redevelopment Plan will enhance the tax base dramatically. The projected taxes are not known exactly, but will be dramatically increased as a result of the future assessed values of the site. Therefore, staff recommends approval of the rezoning of 4707, 4747, 4757, 4801, 4811, and 4849 Central Avenue NE, from GB, General Business to Mixed-Use, as the rezoning request meets the required findings listed from the Zoning Ordinance and is consistent with the Comprehensive Plan. PLANNING & ZONING COMMISSION MINUTES SEPTEMBER 2, 2003 PAGE 5 Chairperson Yehle opened the hearing for comments and/or questions from those in attendance. Mr. Jon Kalata of 1144 Khyber Lane presented a petition (attached to the end of these minutes) that objected to any development that would be more than two stories that would block their view from the Cheery Heights neighborhood. He stated the residents in the area would rather see single family homes than high density housing, and to keep the current businesses in place. Yehle explained that the businesses currently located along Central Avenue have been involved in the planning process. He went on to invite anyone interested in the project to attend the joint meeting being held Thursday, September 4th at 7 p.m. in the Council Chambers. The EDA Board, Planning and Zoning Commission and the City Council will be in attendance. They will be discussing the potential plans for the property at that time. Residents will have an opportunity to view the preliminary drawings of what the site could look like. Keith Kirk of 1144 Cheery Lane stated he didn't think those residents who signed the petition know anything about the proposed development and that because of the elevations of the property, he didn't feel the view would be obstructed at all. Lee Stauch of 1155 Khyber Lane said he's seen some of the plans and he felt condo buildings 3 or 4 stories high would obstruct their view and bring down the property values. He also said due to the property being put into a TIF District, taxpayers would bear the bnmt of the cost as it would be approximately 20 years before any positive economic impact would occur. He also questioned whether the developer is able to handle a project this large when he hasn't finished some of the other projects he has started in the area. Planner Johnson responded to Mr. Stauch's concerns. He informed the Commission that Mr. Nedegaard's other project in the City is progressing. He has submitted his plans for the next set of 6 townhouses and they are in the process of being reviewed. He also reminded the Commission and those in attendance, the purpose of this meeting is to address the re-zoning of this site to allow flexibility for future development. It is not the purpose at this time to discuss or approve any specific plans for the property. Mr. Kalata questioned the various Residential categories and what could potentially be put on this site. Planner Johnson explained that if the mixed zoning is approved, it would allow for all types of uses to be considered. Yehle reminded those present that without the re-zoning, residential units could not be considered for the site at all as it is currently zoned for commercial/business use. The first step is to re-zone the site for the type of development that is working throughout the Twin Cities area. Kalata agreed that with the close proximity to downtown and the freeway systems, residential development is booming compared to the glut of commercial/retail space. Szurek stated that as a member of the advisory committee, owner occupied housing is what is desired for this site, not apartment buildings. And some commercial sites will be located closer to Central Avenue, with the hope of re-locating most of the present businesses now located there. PLANNING & ZONING COMMISSION MINUTES SEPTEMBER 2, 2003 PAGE 6 Ericson again invited everyone to attend the meeting Thursday evening and thought that the plans will be a pleasant surprise. She said it looks to be a nice mix of residential/commercial space and with the re-zoning we would not be bound to one or the other. Peterson reminded the audience that this is a recommendation board only. The City Council will be making the final decisions regarding the re-development of the site. He stated it is important to attend the meetings, look at the plans, and express any concerns to the Council members before they make their decision. Motion by Baker, seconded by Schmitt, to recommend City Council approval to rezone 4707, 4747, 4757, 4801, 4811, and 4849 Central Avenue NE from GB, General Business to Mixed-Use, as the rezoning is consistent with the required findings from the Zoning Ordinance, as the proposed use of the property is consistent with the City Comprehensive Plan, and is compatible with the surrounding area. All ayes. MOTION PASSED. NEW BUSINESS Kmart TIF District Modification The City of Columbia Heights is considering a proposal to modify the Downtown CBD Revitalization Plan for the CBD Redevelopment Project and to establish the Kmart/Central Avenue Tax Increment Financing (TIF) District, a renewal and renovation tax increment financing district. As dictated by MN State Statutes, the Planning Commission is required to review the TIF District modification plans to determine that they conform with the general plans for development and redevelopment of the City as described in the City Comprehensive Plan. Staff recommends adoption of Resolution 2003-01, as the TIF District modification conforms with the City Comprehensive Plan. Motion byPeterson, seconded by Szurek , to adopt Resolution 2003-01, and to support the action of the Columbia Heights. City Council. PLANNING & ZONING COMMISSION MINUTES SEPTEMBER 2, 2003 PAGE 7 RESOLUTION NO. 2003-01 RESOLUTION OF THE CITY OF COLUMBIA HEIGHTS PLANNING COMMISSION FINDING THAT A MODIFICATION TO TI:rE DOWNTOWN CENTRAL BUSINESS DISTRICT (CBD) REVITALIZATION PLAN FOR TI:IF~ CBD REDEVELOPMENT PROJECT AND THE TAX INCREMENT FINANCING PLAN FOR THE K-MART/CENTRAL AVENUE TAX INCREMENT FINANCING DISTRICT (A RENEWAL AND RENOVATION DISTRICT) CONFORM TO THE GENERAL PLANS FOR THE DEVELOPMENT AND REDEVELOPMENT OF T1]E CITY. WHEREAS, the City Council for the City of Columbia Heights, Minnesota, (the "City") has proposed to adopt a Modification to the Downtown CBD Revitalization Plan for the CBD Redevelopment Project (the "Revitalization Plan Modification") and adopt a Tax Increment Financing Plan for the K-Mart/Central Avenue Tax Increment Financing District (the "TIM Plan") within the CBD Redevelopment Project (the Revitalization Plan Modification and the TIM Plan are referred to collectively herein as the "Plans") and has submitted the Plans to the City Planning Commission (the "Commission") pursuant to Minnesota Statutes, Section 469.175, Subd. 3, and WHEREAS, the Commission has reviewed the Plans to determine their conformity with the general plans for the development and redevelopment of the City as described in the comprehensive plan for the City. NOW, THEREFORE, BE 1T RESOLVED by the Commission that the Plans conform with the general plans for the development and redevelopment of the City as a whole. Approved: September 2, 2003 Roll Call: All Ayes Chair ATTEST: PLANNING & ZONING COMMISSION MENUTES SEPTEMBER 2, 2003 PAGE 8 Met Council Comp Plan Amendment for Kmart Site Planner Johnson enclosed a copy of the letter received fi:om the Met Council regarding the Kmart TOD Comp Plan Amendment. The amendment proposed a change of land use designation for 21 acres located east of Central Ave between 47th and 49th Ave (old Kmart site) fi:om Commercial to Transit Oriented Mixed Use. The purpose of the amendment is to facilitate redevelopment of the site. He stated we received approval within 2 V2 weeks as the Council was very supportive of our plan. Back in 2000, the governing body of the Council identified certain types of local comprehensive plan amendments that may be reviewed by Council staffwithout further formal review by the governing body of the Council. Council staff has applied the plan review waiver as it has no impact on the plans of the units of local government. The City may place this amendment into effect. However, they did offer the following advisory comments: Surface Water Management-The plan amendment application states storm water runoff generated fi:om the site will be routed through detention basins meeting MN Pollution Control Agency and Nationwide Urban Runoff Program. Council staff encourages the city to work with developer when designing the parking lot to incorporate design techniques that will help reduce surface water nmoff volume, as well as provide rate control and treatment of contaminants. They recommended using the Metropolitan Council's Urban Small Sites BMP Manual as it contains detailed information that could incorporate these techniques. Recreation Open Space-Staff recommends the City work with Three Rivers Park District to incorporate bicycle and pedestrian trails connecting the new development and the proposed park on the former Kmart site to the Silver Lake Special Recreations Feature and to the Mississippi Regional Trail. Transit-They addressed several changes that may have to be made to the transit service running along Central Avenue. Baker and Schmitt again expressed how excited they are to see this site moving forward toward re- development and with the re-zoning it opens up many possibilities. Other suburbs have done this and they look forward to it revitalizing our community. Baker thought this re-development and the new Discount Tires Building being built at 53rd and Central will bring a fresh new look to the Avenue. Motion by Peterson, seconded by Szurek, to adjourn the meeting at 8:00pm. All Ayes. Respectfully submitted, Shelley Hanson Secretary of the Cheery Heights neighborhood do petition the city of Columbia Heights and its elect,'d officials to oppose the building of any development on the Kmart property of more than two stories or oran)' height that would obstruct our present view. COLUMBIA HEIGHTS - CITY COUNCIL LETTER Meeting of: September 8, 2003 AGENDA SECTION: Consent ORIGINATING DEPARTMENT: CITY MANAGER'S NO: 5-A-3 CITY MANAGER'S APPROVAL__ ITEM: E stablish Work S essionMeeting BY: Walt Fehst BY: Date for Monday, September 15, 2003 DATE: September 3, 2003 DATE: NO: It is recommended that a Work Session meeting be scheduled for Monday, September 15, 2003 beginning at 7:00 p.m. in the City Council Chambers. RECOMMENDED MOTION: MOTION: Move to establish a Work Session meeting to be scheduled for Monday, September 15, 2003 beginning at 7:00 p.m. in the City Council Chambers. COUNCIL ACTION: CITY COUNCIL LETTER Meeting of: September 8, 2003 AGENDA SECTION: Consent ORIGINATING DEPT.: CITY MANAGER NO: 5-A-q Community Development APPROVAL ITEM: Adopt Resol uti on 2003-36, A Resoluti on BY: Tim John son B Y.'/ ~,~,.~~ Authorizing Application For a Predevelopment Grant DATE: September 2, 2003 NO: Background: This is a request for approval of a resolution to submit an application for a predevelopment grant to the Metropolitan Council for fall 2003. The City of Columbia Heights is a participant in the Livable Communities Act Housing Incentives Program for 2003 as determined by the Metropolitan Council, and is therefore eligible to make application for grant funds. The Columbia Heights City Council has indicated their highest priority project since 2002 is the redevelopment of the Industrial Park. As you are aware, the Council recently adopted a master plan for the redevelopment of this area, which proposes a high concentration of infill housing. The project area is currently undergoing Phase II environmental testing with a plan to remediate environmental contamination through additional grant funding through DEED/Metro Council this fall. In addition, the City of Columbia Heights will be applying to the Metropolitan Council for funding to pay for infrastructure feasibility and engineering service costs. These funds are available for the first time, and are available to cities who need financial assistance for redevelopment, adaptive reuse and infill projects that support housing development. This process will allow for the City to identify infrastructure needs and related costs associated with the redevelopment of this area. The requested amount of the predevelopment grant will be $50,000. Recommendation: Staff recommends approval of the application for a Predevelopment Grant through the Metropolitan Council. Recommended Motions: Move to waive the reading of Resolution 2003-36, there being ample copies available to the public. Move to adopt Resolution 2003-36, a Resolution Authorizing Application For A Predevelopment Grant. Attachments: Resolution 2003-36 COUNCIL ACTION: RESOLUTION NO. 2003-36 CITY OF COLUMBIA HEIGHTS, MINNESOTA RESOLUTION AUTHORIZING APPLICATION FOR A PREDEVELOPMENT GRANT WHEREAS, the City has identified a proposed project within the City that meets the Predevelopment Grant purpose and criteria; and WHEREAS, the City has the institutional, managerial and financial capability to ensure adequate project administration; and WHEREAS, the City certifies that it will comply with all applicable laws and regulations as stated in the contract agreements; and WHEREAS, the City Council of Columbia Heights, Minnesota agrees to act as legal sponsor for the project contained in the opportunity grant application submitted on September 15, 2003. BE IT FURTHER RESOLVED that the City Manager is hereby authorized to apply to the Metropolitan Council for this funding on behalf of the City of Columbia Heights and to execute such agreements as are necessary to implement the project on behalf of the applicant. Passed this __ day of September 2003. Offered by: Second by: Roll Call: Attest: Mayor Julienne Wyckoff Patricia Muscovitz, Deputy City Clerk CITY COUNCIL LETTER Meeting of: September 8, 2003 AGENDA ORIGINATING CITY MANAGER SECTION: _.~- A- ~ DEPARTMENT: APPROVAL NO: Fire ~. /Z ITEM: Establish Hearing Dates BY: Charlie Thompson BY:~J~ License Revocation, Rental Properties DATE: Septeber 2, 2003 DATE: NO: Revocation or suspension of a license to operate a rental property within the City of Columbia Heights is requested against the following owners regarding their rental property for failure to meet the requirements of the Residential Maintenance Codes. 1. Mohsen Dessouki .......................................................... 4610-4612 Fillmore Street NE RECOMMENDED MOTION: Move to Establish a Heating Date of September 22, 2003 for Revocation or Suspension of a License to Operate a Rental Property within the City of Columbia Heights against Mohsen Dessouki at 46104612 Fillmore Street N.E. COUNCIL ACTION: CITY COUNCIL LETTER Meeting of: September 8, 2003 AGENDA SECTION: ORIGINATING DEPT.: CITY MANAGER NO: ~' ' ~ - ~9 License Department APPROVAL ITEM: License Agenda BY: Shelley Hanson DATE: NO: DATE: Sept. 5, 2003 BY: BACKGROUND/ANALYSIS Attached is the business license agenda for the September 8, 2003 City Council meeting. This agenda consists of applications for Contractor licenses for 2003. At the top of the license agenda you will notice a phrase stating *Signed Waiver Form Accompanied Application. This means that the data privacy form'has been submitted as required. If not submitted, certain information cannot be released to the public. RECOMMENDED MOTION: Move to approve the items as listed on the business license agenda for September 8, 2003 as presented. COUNCIL ACTION: TO CITY COUNCIL September 8, 2003 *Signed Waiver Form Accompanied Application 2003 BUSINESS LICENSE AGENDA CONTRACTORS LICENSES BLDG *Circle Plumbing Inc. *TL Plumbing *Global Specialty Contr. 3882 Edith Lane 6920 42nd Ave No. 3220 Terminal Dr, Egan $50.00 $50.00 $50.00 CITY OF COLUMBIA HEIGHTS FINANCE DEPARTMENT COUNCIL MEETING OF: ~ ~ ~3 STATE OF MINNESOTA COUNTY OF ANOKA CITY OF COLUMBIA HEIGHTS Motion to approve payment of bills out of the proper funds, as listed in the attached check register covering Check Number /fq~ through in the amount of $ 8'73. 0~'. q7_-. These checks have been examined and found to be legal charges against the CITY OF COLUMBIA HEIGHTS, and are hereby, recommended for payment. ACS FIN~CIAL SYSTEM CITY OF COL~BIA HEIGHTS 09/04/2003 15:09:45 Check History GL050S-V06.55 COVERPAGE GL540R * *** C O U N C I L *** * * *** C 0 U N C I L *** * * *** C O U N C I L *** * * *** C 0 U N C I L *** * Report Selection: Optional Report Title ....... 09/08/03 COUNCIL LISTING INCLUSIONS: Fund & Account .............. Check Date .................. Source Codes ................ Journal Entry Dates ......... Journal Entry Ids ........... Check Number ................ Pro~ect ..................... Vendor ...................... Invoice ..................... Purchase Order .............. Bank ........................ Voucher .................... Released Date ............... Cleared Date ................ thru thru thru thru 104826 thru 105005 thru thru thru thru thru thru thru thru thru Run Instructions: Jobq Banner Copies Form Printer Hold Space LPI Lines CPI CP SP J COUNCIL 02 P4 Y S 6 066 10 Y Y ACS FINANCIAL SYSTEM CITY OF COLUMBIA HEIGHTS 09/04/2003 15 Check History GL540R-V06.55 PAGE 1 09/08/03 COUNCIL LISTING BANK VENDOR CHECK NUMBER AMOUNT BANK CHECKING ACCOUNT NORTHEAST STATE BANK AMERICAN BOTTLING COMPAN ARCTIC GLACIER AT & T CONSUMER LEASE BELLBOY BAR SUPPLY BRADLEY REAL ESTATES INC CENTER POINT ENERGY MINN CHANHASSEN DINNER THEATR CHERNIN/ALEKSANDR CHISAGO LAKES DISTRIBUTI CITY OF NEW BRIGHTON CITY WIDE WINDOW SERVICE COCA-COLA BOTTLING MIDWE COLUMBIA HEIGHTS I FRITZ COMPANY INC GENUINE PARTS/NAPA AUTO HERLOFSKY/JOHN HOHENSTEINS INC JOHNSON BROS. LIQUOR CO. JOHNSON PAPER & SUPPLY C KUETHER DIST. CO. LORMA/q EDUCATION SERVICE M/%RK VII DIST. METROCALL - ATT MESSAGIN MOELLER/KAREN PAYNE/CHANDRA RICKS PHILLIPS WINE & SPIRITS PITNEY BOWES LOUISVILLE QWEST COMMUNICATIONS RITTMILLER/RANDY & LORI SIX CITIES WATERSHED STAR TRIBUNE STREWSBERRY/JOHN THOMPSON/CHARLIE VAN-O-LITE WAL-MART WINDSCHITL/KEITH WINE MERCHANTS XCEL ENERGY (N S P) AAA AWARDS AMERICAN BOTTLING COMPAN AMERICAN INTERTP~ADE ARCTIC GLACIER BAY/AMBER BELLBOY BAR SUPPLY BELLBOY CORPORATION CENTER POINT ENERGY MINN 104826 104827 104828 104829 104830 104831 104832 104833 104834 104835 104836 104837 104838 104839 104840 104841 104842 104843 104844 104845 104846 104847 104848 104849 104850 104851 104852 104853 104854 104855 104856 104857 104858 104859 104860 104861 104862 104863 104864 104865 104866 104867 104868 104869 104870 104871 104872 94,000.00 174.10 820.96 47.82 284.97 11,337.87 41.81 2,540.00 54.28 312.00 2,225.00 40.47 231.50 18,548.83 3,168.56 89.73 134.92 3,416.00 20,285.17 1,073.18 39,242.50 658.00 8,555.62 92.06 322.54 50.00 12,665.31 296.00 106.60 3,000.00 1,969.75 443.40 1,540.00 503.00 116.75 100.00 2.12 142.14 11,332.24 22.00 195 00 3,151 50 608 64 35 00 842 72 3,757 75 1,678 23 ACS FINANCIAL SYSTEM 09/04/2003 15 BANK VENDOR BANK CHECKING ACCOUNT CHISAGO LAKES DISTRIBUTI DREBLOW/ANNE EAST SIDE BEVERAGE CO FINE WINES FROM EUROPE FRISTROM/JANET FRITZ COMPANY INC GENUINE PARTS/NAPA AUTO GRIGGS-COOPER & CO GUTZKE/MARGE NIGHTINGALE/TERENCE QWEST COMMUNICATIONS STREICHER'S GUN'S INC/DO VERIZON WIRELESS XCEL ENERGY (N S P) WELLS FARGO - PAYROLL AC ACE HARDWARE AMC SALES INC AMERICAN ENGINEERING TES AMERIPRIDE ANOKA COUNTY - GOV'T CEN ANOKA COUNTY LIBRARY APACHE GROUP OF MN ASSOC CONSTRUCTION PUBLI ASSOC OF TRAINING OFFCRS BAKER & TAYLOR BAKER & TAYLOR ENTERTAIN BATTERY CITY INC BAUER BUILT TIRE & BATTE BLUEMELS TREE SERVICE BOOK WHOLESALERS INC BRAKE & EQUIPMENT WAREHO BROCK WHITE CO. BRODART BRYAN ROCK PRODUCTS, INC BUSINESS REFERENCE SERVI CADD/ENGINEERING SUPPLY CAMP SNOOPY CARLSON TRACTOR CATCO PARTS SERVICE CENTER POINT ENERGY MINN CHERNIN/ALEKSANDR CINTAS FIRST AID-SAFETY CITY PAGES CITY WIDE LOCKSMITHING CLAIRMONT TRUCKING CLARK PRODUCTS INC COLUMBIA HEIGHTS RENTAL · C~eck History 09/08/03 COUNCIL LISTING CHECK NUMBER 104873 104874 104875 104876 104877 104878 104879 104880 104881 104882 104883 104884 104885 104886 104887 104888 104889 104890 104891 104892 104893 104894 104895 104896 104897 104898 104899 104900 104901 104902 104903 104904 104905 104906 104907 104908 104909 104910 104911 104912 104913 104914 104915 104916 104917 104918 104919 CITY OF COLUMBIA HEIGHTS GL540R-V06.55 PAGE 2 AMOUNT 397.05 7.75 48,487.65 1,044.06 44.00 3,736.96 77.33 32,308.21 37.00 59.59 150.20 37.22 217.79 2,528.25 254,091.27 159.30 67.00 369.50 27.66 360.24 453.48 362.31 185.00 225.00 2,629.18 525.78 123.07 1,054.35 24,683.19 197.84 106.18 23.61 138.53 1,289.29 634.50 46.33 814.25 764.14 1,291.74 37.61 139.24 145.76 450.00 7.25 2,000.00 108.42 451.62 ACS FINANCIAL SYSTEM CITY OF COLUMBIA HEIGHTS 09/04/2003 15 o Check History GL540R-V06.55 PAGE 3 09/08/03 COUNCIL LISTING BANK VENDOR CHECK NUMBER AMOUNT BANK CHECKING ACCOUNT COLUMBIA HGTS-FRIDLEY KI COMCAST COMP USA INC CREST VIEW CORPORATION CURTIS 1000 DAVIES WATER EQUIPMENT C DEMCO DIAMOND VOGEL PAINTS DISCOUNT SCHOOL SUPPLY DON'S CAR WASHES DOUGS TV & APPLIANCE EBSCO PUBLISHING EHLER & ASSOCIATE-PUBLIC FIDELITY SERVICES INC FIRE GUARD SPRINKLER SER FRIDLEY-COLUMBIA HEIGHTS FRIENDSHIP VENTURES G & K SERVICES GALE GROUP/THE GENEP~AL REPAIR SERVICE GENUINE PARTS/NAPA AUTO GLASS MASTERS HAB INC PIARVEST PAINT HEIGHTS ELECTRIC INC. HOISINGTON KOEGLER GROUP HOME DEPOT #2802 HOUCHEN BINDERY LTD ~E RESTRAINT INDUSTRIAL DOOR CO INC INSITUFORM TECHNOLOGIES INTERSTATE DETROIT DIESE IPC PRINTING JINDRA/PATRICIA KEEP INC/THE KENNEDY & GRAVEN LAKE STATE REALTY SERVIC LEAGUE OF MINNESOTA CITI LISTENING LIBP3~RY INC MENARDS CASHWAY LUMBER-F MES-MINNESOTA MIDWAY FORD MIDWEST ASPHALT CO. MINNESOTA COUNTY ATTORNE MN CHIEFS OF POLICE ASSO MYERS TIRE SUPPLY COMPAN NORTHEASTER 104920 516.78 104921 75.00 104922 439.47 104923 18,953.82 104924 399.70 104925 2,174.71 104926 13.53 104927 39.41 104928 438.80 104929 1,544.25 104930 32.31 104931 40.00 104932 1,493.75 104933 4,822.12 104934 350.00 104935 516.77 104936 189.00 104937 396.17 104938 26.36 104939 3,994.88 104940 186.46 104941 1,022.00 104942 219.00 104943 260.00 104944 285.88 104945 1,032.20 104946 122.56 104947 160.15 104948 250.00 104949 90.00 104950 42,344.63 104951 226.54 104952 40.48 104953 35.00 104954 38.80 104955 4,060.43 104956 1,100.00 104957 295.00 104958 216.00 104959 103.08 104960 70.71 104961 611.08 104962 135,552.52 104963 793.16 104964 385.00 104965 174.49 104966 289.00 ACS FINANCIAL SYSTEM CITY OF COLUMBIA HEIGHTS 09/04/2003 15 Check History GL540R-V06.55 PAGE 4 09/08/03 COUNCIL LISTING BANK VENDOR CHECKNUMBER AMOUNT BANK CHECKING ACCOUNT NORTHERN TOOL & EQUIPMEN OFFICE DEPOT OLLIES KITCHEN & VITTLE OLSON/LEONARD ONE- CALL CONCEPT- GOPHER ONYENEMEZU/MARK ORIENTAL TRADING COMPANY PARK SUPPLY INC PEPSI-COLA- 7 UP PERFORMANCE LAWN CARE PIONEER PRESS RESOURCE DOCUMENTS & ADV RETAIL DATA SYSTEMS OF M ROSEDALE CHEV RUFFRIDGE- JOHNSON EQUIP. S & S ARTS & CRAFTS WORL S & S WORLDWIDE SBC PAGING SHERWIN WILLIAMS SHORT ELLIOT HENDRICKSON SMITH MICRO TECHNOLOGIES STAR TRIBUNE STREICHER' S GUN' S INC/DO SUN PUBLICATION TEACH ME TAPES INC TECHIFAX BUSINESS SYSTEM TKDA TOMISCH/ROGER TRUGREEN CHEMLAWN TUBBS/MARSHA UNITED RENTALS VECTOR INTERNET SERVICES VERI ZON WIRELESS WESTON WOODS WILSON DEVELOPMENT SERVI WINES SPECTATOR XCEL ENERGY (N S P) ZARNOTH BRUSH WORKS, INC 3M 104967 104968 104969 104970 104971 104972 104973 104974 104975 104976 104977 104978 104979 104980 104981 104982 104983 104984 104985 104986 104987 104988 104989 104990 104991 104992 104993 104994 104995 104996 104997 104998 104999 105000 105001 105002 105003 105004 105005 10 64 1,431 27 100 00 187 50 192 20 25 00 53 70 96.27 106.00 65.00 26.33 266.25 120.00 260.93 165.94 13.07 107.99 18.32 33.88 5,745.04 23.33 56.29 592.86 417.61 6.95 10.00 213.14 172.37 38.00 47.92 130.51 150.00 345.08 490.88 139.50 105.00 121.15 567.26 610.00 873,035.92 *** ACS FINANCIAL SYSTEM CITY OF COLUMBIA HEIGHTS 09/04/2003 15 Check History GL540R-V06.55 PAGE 5 09/08/03 COUNCIL LISTING BANK VENDOR REPORT TOTALS: CHECK NUMBER AMOUNT 873,035.92 RECORDS PRINTED - 000806 ACS FINANCIAL SYSTEM 09/04/2003 15:09:46 FUND RECAP: FUND DESCRIPTION 101 GENER3~L 201 COMMUNITY DEVELOPMENT FUND 203 PARKVIEW VILLA NORTH 204 ECONOMIC DEVELOPMENT AUTH 213 PARKVIEW VILLA SOUTH 225 CABLE TELEVISION 235 RENTAL HOUSING 240 LIBR3%RY 261 TWENTY-FIRST CENTURY GRANT 276 LOCAL LAW ENFORCE BLK GRANT 388 G O IMPROVE/REV BONDS 2003A 402 STATE AID CONSTRUCTION 415 CAPITAL IMPROVEMENT - PIR 420 CAP IMPROVEMENT-DEVELOPMENT 601 WATER UTILITY 602 SEWER UTILITY 604 STORM SEWER UTILITY 609 LIQUOR 652 SEWER CONSTRUCTION FUND 653 STORM SEWER CONSTRUCT. FUND 701 CENTR~L GARAGE 720 DATA PROCESSING 885 ESCROW 886 INVESTMENT TRUST TOTAL ALL FUNDS Check History DISBURSEMENTS 48,672.98 2,423.97 18,014.99 1,103.98 8,801.68 75.00 248.39 10,160.12 1,783.81 266.25 4,060.43 369.50 140,325.01 8,221.00 3,363.48 4,220 86 105 47 222,046 13 42,344 63 1,100 00 6,854 65 382 32 254,091 27 94,000 00 873,035.92 CITY OF COLUMBIA HEIGHTS GL060S-V06.55 RECAPPAGE GL540R BANK RECAP: BANK NAME BANK CHECKING ACCOUNT TOTAL ALL BANKS DISBURSEMENTS 873,035.92 873,035.92 CITY COUNCIL LETTER Meeting of September 8, 2003 AGENDA ORIGINATING DEPARTMENT: CITY MANAGER SECTION: ~ A Fire APPROVAL NO: ITEM: Close Hearing BY: Charlie Thompson BY: ~p~a~/~/].J~tS. Rental License Revocation DATE: September 5, 2003 DATE: NO: The matter of the revocation of the license to operate a rental unit(s) within the City of Columbia Heights against Dale Frenzel regarding rental property at 3732 3ra Street N.E. for failure to meet the requirements of the Residential Maintenance Codes was previously scheduled to commence at the City Council meeting of September 8, 2003. The public hearing on this property may now be closed in that the owner has brought the property/building into compliance with the Residential Maintenance Code. RECOMMENDED MOTION: Move to Close the Public Heating Regarding the Revocation or Suspension of the Rental License Held by Dale Frenzel Regarding Rental Property at 3732 3ra Street N.E. in that the Property complies with the Residential Maintenance Code. COUNCIL ACTION: CITY COUNCIL LETTER Meeting off 9/8/03 AGENDA SECTION: RESOLUTIONS/ORDINANCES ORIGINATING DEPARTMENT: CITY MANAGER NO: '7--A - ' PUBLIC WORKS{~) ~~ ITEM: ADOPTION OF ORDINANCE #1459: BY: K. Hansen ,,.,,..~ BY: CENTERPOINT ENERGY MINNEGASCO GAS DATE: 8/28/03~'"' DATE: FRANCHISE AGREEMENT Background: City staff and representatives from CenterPoint Energy Minnegasco have been meeting and reviewing issues regarding the implementation of a new gas franchise agreement. The current gas franchise agreement with Minnegasco expires in 2003. The renewal of a new franchise agreement grants CenterPoint Minnegasco the authority to import, manufacture, distribute and sell gas for public and private use within the City's borders. The franchise agreement has been reviewed by the City Attorney and is recommended for approval. The proposed franchise agreement is in ordinance format and requires two readings at regular City Council meetings, becoming effective 30 days after the second reading. Analysis/Conclusions: The City of Columbia Heights gas franchise agreement with CenterPoint Energy Minnegasco expires this year. Public Works has developed a new franchise agreement for the City Council's review. The new ordinance is based on a model ordinance created by the League of Minnesota Cities (LMC) and Suburban Rate Authority (SRA). The model ordinance was developed to assist local governments in creating a uniform agreement for natural gas service. I would highlight the following specifics of the ordinance before the council: Provides additional definitions of terms and entities used in the agreement. · Provides for a twenty (20) year agreement. · This agreement is consistent with the permit and restoration standards that the gas company must follow in the City's existing Right-of-Way Ordinance (#1446). · Provides for proper notice of proposed public improvements by the City to CenterPoint. · An indemnity clause has also been included to protect the City from potential problems that may arise due to construction, maintenance, operation, repair, inspection or removal of gas service lines within the City of Columbia Heights. · The proposed ordinance preserves the right of the City to implement a franchise fee that can be enacted over the life of the contract. The proposed ordinance does not enact the franchise fee at this time. Following the August 18th, 2003 Council Work Session, staff was directed to forward the proposed ordinance to the legal council for the Suburban Rate Authority (SRA). James Strommen, SRA attorney from the fLrm of Kennedy and Graven reviewed the proposed ordinance and offered the following comments for consideration: added language to the definition of Public Way and added a sentence to the Projects with Federal Funding section. Staffhas incorporated those changes into this document. The first reading of Ordinance #1459 was held on August 25, 2003. Recommended Motion: Move to waive the reading of Ordinance #1459, there being ample copies available to the public. Recommended Motion: Move to adopt Ordinance #1459, being an Ordinance adopting a gas franchise agreement with CenterPoint Energy Minnegasco. rd-I.'jb COUNCIL ACTION: ORDINANCE NO. 1459 GAS FRANCHISE ORDINANCE CITY OF COLUMBIA HEIGHTS, ANOKA COUNTY, MINNESOTA AN ORDINANCE GRANTING CENTERPOINT ENERGY MINNEGASCO, A NATURAL GAS UTILITY, A DIVISION OF CENTERPOINT ENERGY RESOURCES CORP., A DELAWARE CORPORATION, ITS SUCCESSORS AND ASSIGNS, A NONEXCLUSIVE FRANCHISE TO CONSTRUCT, OPERATE, REPAIR AND MAINTAIN FACILITIES AND EQUIPMENT FOR THE TRANSPORTATION, DISTRIBUTION, MANUFACTURE AND SALE OF GAS ENERGY FOR PUBLIC AND PRIVATE USE AND TO USE THE PUBLIC GROUND OF THE CITY OF COLUMBIA HEIGHTS, MINNESOTA, FOR SUCH PURPOSE; AND, PRESCRIBING CERTAIN TERMS AND CONDITIONS THEREOF. THE CITY COUNCIL OF THE CITY OF COLUMBIA HEIGHTS, ANOKA COUNTY, MINNESOTA, ORDAINS: SECTION 1. DEFINITIONS. For purposes of this Ordinance, the following capitalized terms listed in alphabetical order shall have the following meanings: City. The City of Columbia Heights, County of Anoka, State of Minnesota. City Utility System. Facilities used for providing public utility service owned or operated by City or agency thereof, including sewer, storm sewer, water service, street lighting and traffic signals, but excluding facilities for providing heating, lighting, or other forms of energy. Commission. The Minnesota Public Utilities Commission, or any successor agency or agencies, including an agency of the federal government, which preempts all or part of the authority to regulate gas retail rates now vested in the Minnesota Public Utilities Commission. Company. CenterPoint Energy Minnegasco, a Division of CenterPoint Energy Resources Corp., a Delaware Corporation, its successors and assigns including all successors or assigns that own or operate any part or parts of the Gas Facilities subject to this fi:anchise. Gas. Natural gas, manufactured gas, mixture of natural gas and manufactured gas or other forms of natural energy. Gas Facilities. Gas transmission and distribution pipes, lines, ducts, fixtures, and all necessary equipment and appurtenances owned or operated by the Company for the purpose of providing gas energy for public or private use. Non-Betterment Costs. Costs incurred by Company from relocation, removal or rearrangement of Gas Facilities that do not result in an improvement to the Gas Facilities. Notice. A written notice served by any party or parties on any other party or parties. Notice to Company shall be mailed to CenterPoint Energy Minnegasco, V.P. of Regulatory and Supply Service, 800 LaSalle Avenue, Minneapolis, Minnesota 55402. Notice to the City shall be mailed to the City Manager, City of Columbia Heights, 590 - 40th Avenue NE, Columbia Heights, MN 55421-3835. Any party may change its respective address for the purpose of this Ordinance by written notice to the other parties. Public Ground. Land owned or otherwise controlled by the City for park, open space or similar public purpose, which is held for use in common by the public. Public Way. Public right-of-way within the City as defined in MN Stat. § 237.163 subd. 3. SECTION 2. ADOPTION OF FRANCHISE. 2.1 Grant of Franchise. City hereby grants Company, for a period of 20 years from the date this Ordinance is passed and approved by the City, the right to import, manufacture, distribute and sell gas for public and private use within and through the limits of the City as its boundaries now exist or as they may be extended in the future. This right includes the provision of Gas that is (i) manufactured by the Company or its affiliates and delivered by the Company, (ii) purchased and delivered by the Company or (iii) purchased from another source by the retail customer and delivered by the Company. For these purposes, Company may construct, operate, repair and maintain Gas Facilities in, on, over, under and across the Public Ways and Public Grounds, subject to the provisions of this Ordinance. Company may do all reasonable things necessary or customary to accomplish these purposes, subject however, to such lawful regulations as may be adopted by separate ordinance and as currently exist under City Right of Way (ROW) Ordinanc~ 1446. The Company shall be notified 60 days in advance of proposed changes to City Ordinance (ROW) ~ii~ The City and Company shall negotiate in good faith to reach mutually acceptable changes. If the City and Company are unable to agree, disputes will be handled under the terms of Section 2.5 of this Ordinance 2.2 Effective Datel Written Acceptance. This franchise shall be in force and effect from and after its passage of this Ordinance and publication as required by law and its acceptance by Company. If Company does not file a written acceptance with the City within 60 Days after the date the City Council adopts this Ordinance, or otherwise places the City on written notice, at any time, that the Company does not accept all terms of this franchise, the City Council by resolution may either repeal this ordinance or seek its enforcement in a court of competent jurisdiction. 2.3. Service and Gas Rates. The service to be provided and the rates to be charged by Company for gas service in City are subject to the jurisdiction of the Commission. 2.4. Publication Expense. Company shall pay the expense of publication of this 2.5. Dispute Resolution. If either party asserts that the other party is in default in the performance of any obligation hereunder, the complaining party shall notify the other party of the default and the desired remedy. The notification shall be written. Representatives of the parties must promptly meet and attempt in good faith to negotiate a resolution of the dispute. If the dispute is not resolved within 30 days of the written notice, the parties may jointly select a mediator to facilitate further discussion. The parties will equally share the fees and expenses of this mediator. If a mediator is not used or if the parties are unable to resolve the dispute within 30 days after first meeting with the selected mediator, either party may commence an action in District Court to interpret and enforce this franchise or for such other relief as may be permitted by law or equity. 2.6. Continuation of Franchise. If the City and the Company are unable to agree on the terms of a new franchise by the time this franchise expires, this franchise will remain in effect until a new franchise is agreed upon, or until 90 days after the City or the Company serves written Notice to the other party of its intention to allow the franchise to expire. However, in no event shall this franchise continue for more than one year after expiration of the 20-year term set forth in Section 2.1. SECTION 3. LOCATION~ OTHER REGULATIONS. 3.1. Location of Facilities. Gas Facilities shall be located, constructed, and maintained so as not to interfere with the safety and convenience of ordinary travel along and over Public Ways and so as not to disrupt normal operation of any City Utility System. Gas Facilities may be located on Public Grounds as determined by the City. Company% construction, reconstruction, operation, repair, maintenance, location and relocation of Gas Facilities shall be subject to other reasonable regulations of the City consistent with authority granted the City to manage its Public Ways and Pubhc Grounds under state law, to the extent not inconsistent with a specific term of this franchise. 3.2. Street Openings. Company shall not open or disturb the surface of any Public Way or Public Ground for any purpose without first having obtained a permit from the City, if required by a separate ordinance, for which the City may impose a reasonable fee. Permit conditions imposed on Company shall not be more burdensome than those imposed on other utilities for similar facilities or work. Company may, however, open and disturb the surface of any Public Way or Public Ground without a permit if (i) an emergency exists requiring the immediate repair of Gas Facilities and (ii) Company gives telephone, email or similar notice to the City before commencement of the emergency repair, if reasonably possible. Within two business days after commencing the repair, Company shall apply for any required permits and pay any required fees. 3.3. Restoration. After undertaking any work requiring the opening of any Public Way, the Company shall restore the Pubhc Way in accordance with City Ordinance (ROW) #1446, and other applicable City ordinances consistent with law. Company shall restore the Public Ground to as good a condition as formerly existed, and shall warranty the surface in good condition for twenty-four months thereafter. If Company shall not promptly perform and complete the work, 3 remove all dirt, rubbish, equipment and material, and put the Public Ground in the said condition and after demand to Company to cure, City shall, after passage of a reasonable period of time following the demand, but not to exceed ten days, have the right to make the restoration of the Public Ground at the expense of Company. Company shall pay to the City the cost of such work done for or performed by the City. This remedy shall be in addition to any other remedy available to the City for noncompliance with this Section. The Company shall also post a construction performance bond consistent with the provisions City Ordinance (ROW) #1446. 3.4. Avoid Damal~e to Gas Facilities. The Company must take reasonable measures to prevent the Gas Facilities from causing damage to persons or property. The Company must take reasonable measures to protect the Gas Facilities from damage that could be inflicted on the Facilities by persons, property, or the elements. The Company must take protective measures when the City performs work near the Gas Facilities, if given reasonable notice by the City of such work prior to its commencement. 3.5. Notice of Improvements to Streets. The City will give Company reasonable written Notice of plans for improvements to Public Ways where the City has reason to believe that Gas Facilities may affect or be affected by the improvement. The notice will contain: (i) the nature and character of the improvements, (ii) the Public Ways upon which the improvements are to be made, (iii) the extent of the improvements, (iv) the time when the City will start the work, and (v) if more than one-Public Way is involved, the Contractor's Schedule for the order in which the work is to proceed. The notice will be given to Company with a sufficient length of time, considering seasonal working conditions, in advance of the actual commencement of the work to permit Company to make any additions, alterations or repairs to its Gas Facilities the Company deems necessary, but so as not to delay the planned City Improvements. 3.6 Maooinl~ Information. The Company must promptly provide complete and accurate mapping information for any of its Gas Facilities in accordance with the requirements of City Ordinance (ROW) #1446. SECTION 4. RELOCATIONS. 4.1. Relocation of Gas Facilities. Relocation of Gas Facilities in Public Ways shall be subject to City.Ord~e' (ROW) 1446. City may require Company at Company's expense to relocate or remove its Gas Facilities fi.om Public Grounds upon a finding by City that the Gas Facilities have become or will become a substantial impairment to the existing or proposed public use of the Grounds. Relocation Gas Facilities in Public Ground shall comply with applicable City ordinances consistent with law. 4.2. Proiects with Federal Fundine. Relocation, removal, or rearrangement of any Company Gas Facilities made necessary because of the extension into or through City of a federally aided highway project shall be governed by the provisions of Miunesota Statutes Section 161.46, as supplemented or amended. City shall not order Company to remove or relocate its Gas Facilities when a Public Way is vacated, improved or realigned because of a renewal or a redevelopment plan which is financially subsidized in whole or in part by the Federal Government or any agency 4 thereof, unless agreement is made that the reasonable Non-Betterment Costs of such relocation and the loss and expense resulting there from will be paid to Company when available to the City. The City is not obligated to pay Company for those portions of its relocation costs for which City has not received federal funding. 4.3. No Waiver. The provisions of Section 4 apply only to Gas Facilities constructed in reliance on a permit or franchise from City and Company does not waive its rights under an easement or prescriptive right or State or County permit. SECTION 5. INDEMNIFICATION. 5.1. Indenmi .ty of Ci .ty. Company shall indemnify, keep and hold the City, its elected officials, officers, employees and agents flee and harmless fi:om any and all claims and actions on account of injury or death to persons or damage to property occasioned by the construction, maintenance, operation, repair, inspection, removal, the issuance of permits, or the operation of the Gas Facilities located in the Public Ways and Public Grounds, unless such injury or damage is the result of negligence of the City, its elected officials, employees, officers, or agents. 5.2. Defense of City. In the event a suit is brought against the City under circumstances where this agreement to indemnify applies, Company at its sole cost and expense shall defend the City in such suit if written notice thereof is promptly given to Company within a period wherein Company is not prejudiced by lack of such notice. If Company is required to indemnify and defend, it will thereafter have control of such litigation, but Company may not settle such litigation without the consent of the City, which consent shall not be unreasonably withheld. This section is not, as to third parties, a waiver of any defense or immunity otherwise available to the City. The Company, in defending any action on behalf of the City, shall be entitled to assert in any action every defense or immunity that the City could assert in its own behalf. This franchise agreement shall not be interpreted to constitute a waiver by the City of any of its defenses of immunity or limitations on liability under Minnesota Statutes, Chapter 466. SECTION 6. VACATION OF PUBLIC WAYS. The City shall give Company at least two weeks prior written notice of a proposed vacation of a Public Way. The City and the Company shall comply with Minnesota Rules, 7819.3200 and applicable ordinances consistent with law. SECTION 7. CHANGE IN FORM OF GOVERNMENT. Any change in the form of government of the City shall not affect the validity of this Ordinance. Any governmental unit succeeding the City shall, without the consent of Company, succeed to all of the rights and obligations of the City provided in this Ordinance. This ordinance and the franchise it confers may not be assigned by the Company without the express written consent of the City. 5 SECTION 8. FRANCHISE FEE. 8.1. Form. During the term of the franchise hereby granted, and in addition to any permit, hcensing, or other fees, charges or costs being imposed that the City has a fight by statute to impose on the Company for providing gas service or performing work necessary to provide gas service in the City during the terms of this franchise, the City may charge the Company a franchise fee. The fee may be (i) a percentage of gross revenues received by the Company for its operations within the City, or (ii) a flat fee per customer based on metered service to retail customers within the City or on some other similar basis, or (iii) a fee based on units of energy delivered to any class of retail customers within the corporate limits of the City. The method of imposing the franchise fee, the percentage of revenue rate, or the flat rate based on metered service may differ for each customer class or combine the methods described in (i) - (iii) above in assessing the fee. The City shall seek to use a formula that provides a stable and predictable mount of fees, without placing the Company at a competitive disadvantage. If the Company claims that the City required fee formula is discriminatory or otherwise places the Company at a competitive disadvantage, the Company shall provide a formula that will produce a substantially similar fee amount to the City and reimburse the City's reasonable fees and costs in reviewing and implementing the formula. The City will attempt to accommodate the Company but is under no franchise obligation to adopt the Company-proposed franchise fee formula and each review will not delay the implementation of the City-imposed fee. 8.2. Separate Ordinance. The franchise fee shall be imposed by separate ordinance duly adopted by the City Council, which ordinance shall not be adopted until at least thirty (30) days after written notice enclosing such proposed ordinance has been served upon the Company. The fee shall become effective ten (10) days after written notice enclosing such adopted ordinance has been served upon the Company by certified mail. 8.3. Collection of Fee. The franchise fee shall be payable not less than quarterly during complete billing months of the period for which payment is to be made. The franchise fee formula may be changed from time to time, however, the change shall meet the same notice requirements and the fee may not be changed more often than annually. Such fee shall not exceed any amount that the Company may legally charge to its customers prior to payment to the City. Such fee is subject to subsequent reductions to account for uncollectibles and customer refunds incurred by the Company. The Company agrees to make available for inspection by the City at reasonable times all records necessary to audit the Company's determination of the franchise fee payments. 8.4. Continuation of Franchise Fee. If this franchise expires and the City and the Company are unable to agree upon terms of a new franchise, the franchise fee, if any being imposed by the City at the time this franchise expires, will remain in effect until a new franchise is agreed upon. SECTION 9. ABANDONED FACILITIES. The Company shall comply with City ordinances, Minnesota Statutes, Section 216D.01 et seq. and Minnesota Rules Part 7819.3300, as they may be amended from time to time. The 6 Company shall maintain records describing the exact location of all abandoned and retired Facilities within the City, produce such records at the City's request and comply with the location requirements of Section 216D.04 with respect to all Facilities, including abandoned and retired Facilities. SECTION 10. PROVISIONS OF ORDINANCE. 10.1. Severabili.ty. Every section, provision, or part of this Ordinance is declared separate from every other section, provision, or part; and if any section, provision, or part shall be held invalid, it shall not affect any other section, provision, or part. Where a provision of any other City ordinance conflicts with the provisions of this Ordinance, the provisions of this Ordinance shall prevail. 10.2. Limitation on AoDlicability. This Ordinance constitutes a franchise agreement between the City and Company as the only parties and no provision of this franchise shall in any way inure to the benefit of any third person (including the public at large) so as to constitute any such person as a third party beneficiary of the agreement or of any one or more of the terms hereof, or otherwise give rise to any cause of action in any person not a party hereto. SECTION 11. AMENDMENT-PROCEDURE. Either party to this franchise agreement may at any time propose that the agreement be amended. This Ordinance may be amended at any time by the City passing a subsequent ordinance declaring the provisions of the amendment, which amendatory ordinance shall become effective upon the filing of Company's written consent thereto with the City Clerk within 60 days after the effective date of the amendatory ordinance. Passed this ~ day of September 2003. Offered by: Second by: Roll call: Mayor Julienne Wyckoff, City of Columbia Heights, Minnesota Attest: Patricia Muscovitz, CMC Deputy City Clerk/Council Secretary CITY COUNCIL LETTER Meeting off September 8, 2003 AGENDA SECTION: Items for Consideration ORIGINATING DEPT.: CITY MANAGER NO: ~'l -A '-~, Community Development APPROVAL ITEM: Resolution 2003-37 BY: Tim Johnson BY:y~-~ ~/~ NO: Kmart Redevelopment Site Rezoning DATE: September 2, 2003 Background: This is a request to rezone the properties located at 4707, 4747, 4757, 4801, 4811, and 4849 Central Avenue NE from General Business (GB) to Mixed-Use Development District (MXD). The Kmart site has been vacant since spring 2002, but since this time has generated no legitimate commercial reuse opportunities. The site is no longer a viable big-box commercial site because of location, poor sightlines and a weak commercial/retail market. The proposed rezoning identifies not only the Kmart site itself, but also the adjacent commercial businesses between 47th and 49th Avenue. The Mixed-Use designation allows for the existing commercial to either stay 'as is' or to be redeveloped into new commercial/retail. The Mixed-Use designation also allows for high- density residential development, which is a necessary component in order for the project to succeed. A rezoning requires the City Council make the necessary findings identified in the Zoning Ordinance in order to approve a rezoning request. One of the findings is consistency with the City Comprehensive Plan, which has recently changed to a mixed-use designation. It should be noted that the Metropolitan Council recently reviewed and accepted the City request for a simple Comprehensive Plan amendment to allow for the future use of this property to be changed fi'om a strictly commercial land use district to a Transit-Oriented Mixed-Use District. The purpose of the Mixed-Use District is to promote efficient use of existing infrastructure, create neighborhood linkages and ensure sensitivity with adjacent areas, provide appropriate transitions, create pedestrian circulation and safety, and increase the quality of life and community image of Columbia Heights. The proposal to redevelop the Kmart site into a mixed-use pedestrian friendly urban style redevelopment project meets with the purpose identified above and fits with the overall goals of the City and the Mixed-Use Development District. In May 2003, the City of Columbia Heights initiated a planning process for the redevelopment of the Kmart site, and appointed an eleven member advisory committee to make recommendations and review the proposed project. As part of this process, the committee met on August 7, 2003, and gave their strong support to the Kmart Redevelopment Concept Plan (see attached letter). Recommendation: The Planning and Zoning Commission held a public heating on September 2, 2003, and unanimously recommended approval of this rezoning request. Staff also recommends approval of Resolution # 2003-37, which is a resolution rezoning the subject properties at 4707, 4747, 4757, 4801, 4811, and 4849 Central Avenue from GB, General Business to MXD, Mixed-Use District. Recommended Motions: Move to waive the reading of Resolution # 2003-37, there being ample copies available to the public. Move to approve Resolution 2003-37, being a resolution pertaining to the rezoning of certain properties at 4707, 4747, 4757, 4801, 4811, and 4849 Central Avenue NE. Attachments: Resolution 2003-37; Rezonin~, Area Map COUNCIL ACTION: RESOLUTION 2003-37 CITY OF COLUMBIA HEIGHTS, MINNESOTA A RESOLUTION PERTAINING TO THE REZONING OF CERTAIN PROPERTIES LOCATED AT 4707, 4747, 4757, 4801, 4811, AND 4849 CENTRAL AVENUE NE WHEREAS, the City of Columbia Heights established the 'Kmart Redevelopment Advisory Group' to undertake a planning process to determine appropriate redevelopment of the Kmart Redevelopment Project area; and WHEREAS, the City of Columbia Heights recognizes that the current Kmart site has many detriments that prevent it from being reused strictly as a commercial site, recognizing a housing component is necessary in order for a successful redevelopment project to occur; and WHEREAS, rezoning from GB, General Business District to MXD, Mixed-Use District provides flexibility in the project redevelopment, and allows for both commercial and residential components as part of the redevelopment project area; and WHEREAS, the rezoning is consistent with the City Comprehensive Plan, and is in the public interest and not solely for the benefit of a single property owner; and WHEREAS, the existing use of the property and the zoning classification of the property within the general area of the Kmart property are compatible with the proposed Mixed-Use Zoning classification, and WHEREAS, there has been a change in the character and trend of development in the general area of the Kmart property, which has taken place since the original commercial zoning designation, which necessitates the need to consider rezoning for a more appropriate use; and BE IT FURTHER RESOLVED that the Planning Commission has reviewed and recommends approval of the proposed rezoning from GB, General Business to MXD, Mixed-Use District. Passed this day of 2003. Offered by: Seconded by: Roll Call: Mayor Julienne Wyckoff Patricia Muscovitz, Deputy City Clerk COLUMBIA HEIGHTS COMMUNITY DEVELOPMENT N IN G MAP LEGEND Zom~S Designations: 236.3.25 /~/Parcel Lincs ~City Limits CITY OF' FRIDLEY INN kAP(.)LIS rA I LRW( CITY COUNCIL LETTER Meeting off 9/8/03 AGENDA SECTION: OTHER BUSINESS NO: -/Ct ITEM: APPROVAL OF PURCHASE AGREEMENT FOR SINGLE FAMILY RESIDENTIAL PROPERTY AT 3942 VAN BUREN STREET ORIGINATING DEPARTMENT: PUBLIC WORKS BY: K. Hanse~ DATE: 9/3/03~-.-~ CITY MANAGER DATE: Background: An extensive engineering study program was undertaken in 1998 - 1999 and completed in 2000 evaluating various locations throughout the City with storm water problems. The last study area to be completed, east of Huset Park East, recommended the most feasible alternative for two separate sites would be the acquisition, demolition, and site grading of these residential properties. The City applied for and received a grant from the MNDNR Flood Mitigation program in 2002. Subsequently, the City hired the £u'm of Wilson Development to assist the City with the acquisition process. Analysis/Conclusions: An independent appraisal fn-m determined the fair market value of 3942 Van Buren to be $100,000. Anoka County has the property appraised at $97,800 for taxes payable in 2002. The appraised amount was offered and through negotiation, a sum of $100,000 accepted by the owners of 3942 Van Buren Street, and is recommended by Wilson Development Services. The homeowners waived the comparable differential of $19,000. This acquisition is not subject to closing costs as the property does not have a mortgage, but moving costs are identified as an additional cost and listed out separately in the agreement (Wilson Development has estimated these costs to be $1,600). The City's Storm Water Utility and DNR Flood Mitigation Grant funds, on a 50/50 cost share, will provide funding. As detailed in the Storm Water Engineering reports, the next step would be for the home to be removed, the lot to be graded and restoration to be completed. Public Works would then have the responsibility for seasonal maintenance on the property. This process has been completed previously for two homes, at 1307 42na Avenue and 4542 Washington Street. It should also be noted that flooding in the alley, which impacts several garages, would also be mitigated upon completion of this work proposal. Recommended Motion: Move to authorize the Mayor and City Manager to execute the purchase agreement for the acquisition of 3942 Van Buren Street in the amount of $100,000 for flood mitigation purposes with funds from the City's Storm Water Utility and DNR Flood Mitigation Grant funds on a 50/50 cost share. KH:jb Attachment: Purchase Agreement for 3942 Van Buren Street COUNCIL ACTION: REAL ESTATE SALE/PURCHASE AGREEMENT THIS AGREEMENT, made as of the 26th day of August, 2003, by and between Barbara M. Hatter hereinafter referred to as Seller, and the City of Columbia Heights, a municipal corporation, hereinafter referred to as Buyer. WITNESSETH: WHEREAS, Seller owns certain real estate located at 3942 Van Buren, Columbia Heights, Minnesota, (PID #353024410096) and legally described in Section l; and WHEREAS, Buyer wishes to purchase and Seller is willing to sell to Buyer said real estate; and WHEREAS, the parties wish to define their respective fights, duties and obligations related to the sale/purchase of said real estate. NOW, THEREFORE, in consideration of the mutual promises and the respective agreements contained herein, the parties hereby agree as follows: 1. Proper .ty Subject to the terms and conditions hereof, the Seller hereby agrees to sell and the Buyer hereby agrees to purchase the following described real estate located in the City of Columbia Heights, State of Minnesota, to-wit: Columbia Heights Annex to Minneapolis, Anoka County, Minnesota S 4 FT of Lot 13 and all of Lot 14 Block 63, Columbia Heights South Annex-Subject to Easement for Storm Sewer on Lot 14. Harter PA 08/26/03 Page I 2. Purchase Price The purchase price for the subject property shall be the sum of One Hundred Thousand and 00/100 Dollars ($100,000.00) payable at closing. 3. Closinu The closing shall be on or before ~ ./~ ,2003 or within 30 days after all title objections have been satisfied by the Seller, if any have been made by the Buyer. 4. Possession The Seller further agrees to deliver possession not later than h 6'~//~ e2 ~t~ ~ provided that all conditions of this agreement have been complied with. All charges for city water, city sewer, electricity, natural gas and real estate taxes shall be prorated between the parties as of date of possession. Seller agrees to remove ALL DEBRIS AND ALL PERSONAL PROPERTY NOT INCLUDED HEREIN from the property by possession date. Any personal property not removed by the date of possession shall be considered the property of the Buyer. 5. Deed/Marketable Title Subject to performance by the Buyer, the Seller agrees to execute and deliver a Warranty Deed conveying marketable title to said premised subject only to the following exceptions: (a) Building and zoning laws, ordinances, State and Federal regulations (b) Restrictions relating to use or improvement of premises without effective forfeiture provision. (c) Reservation of any minerals or mineral rights to the State of Minnesota. (d) Utility and drainage easements which do not interfere with present improvements. (e) Rights of tenants as follows: (unless specified, not subject to tenancies) 6. Tire The Seller shall, within a reasonable time after approval of this agreement, fumish an abstract of title, or a Registered Property Abstract certified to date to include proper searches covering bankruptcies, and State and Federal judgments and liens. The Buyer shall be allowed 15 days after receipt thereof for examination of said title and the making of any objections thereto, said objections to be made in writing or deemed to be waived. Harter PA 08/26/03 Page 2 If any objections are so made the Seller shall be allowed 60 days to make such title marketable. Pending correction of title the payments hereunder required shall be postponed, but upon correction of title and within l0 days after written notice to the Buyer, the parties shall perform this agreement according to its terms. If Seller shall fail to have said exceptions removed or satisfied within the time provided, Buyer may elect to do one or more of the following: (a) remove or satisfy the exceptions on behalf of Seller and at Seller's cost and expense, all of which costs and expenses shall be deducted from the purchase price at closing; (b) elect to purchase the property subject to the exceptions; and/or (c) declare this Agreement null and void (in which case neither party shall have any further liability or obligation to the other. In the event Buyer elects to remove or satisfy the exceptions on behalf of Seller in accordance with altemative (a) above, Seller shall cooperate with and assist Buyer in all reasonable respects. 7. Real Estate Taxes Real estate taxes due and payable in and for the year of closing shall be prorated between Seller and Buyer on a calendar basis to the actual date of possession. 8. Special Assessments Seller shall pay on date of closing all installments of special assessments. Seller shall pay on date of closing all other special assessments levied as of the date of closing. Seller shall provide for payment of all special assessments pending as of the date of closing for improvements that have been ordered by the city or other assessing authorities. Seller shall pay on the date of closing, any deferred taxes. 9. Seller Warranties Seller warrants that buildings are or will be, constructed entirely within the boundary lines of the property. Seller warrants that there is a right of access to the property fi.om a public right of way. These warranties shall survive the delivery of the deed or contract for deed. Seller warrants that prior to the closing, payment in full will have been made for all labor, materials, machinery, fixtures or tools furnished within the 120 days immediately preceding the closing in connection with construction, alteration or repair of any structure on or improvement to the property. Seller warrants upon execution of this Agreement, Seller will not rent the property once it is vacated by any person now occupying same. Seller warrants that the Seller has executed no option to purchase, right of first refusal, or any other agreement giving any person or other entity the right to purchase or otherwise Harter PA 08/26/03 Page 3 acquire any interest in the property, and Seller is unaware of any option to purchase, right of first refusal, or other similar rights affecting the property, except as otherwise noted in the title commitment for the property. Seller warrants that the Seller has received no notice of any action, litigation, investigation or proceeding of any kind pending against Seller, nor to the best of Seller's knowledge is any action, litigation, investigation, or proceeding pending or threatened against the Subject Premises, or any part thereof. On the Date of Closing, there will be no service contracts in effect in connection with the Subject Premises, except those which are terminable on thirty (30) days' written notice. 10. Risk of Loss If There is any loss or damage to the property between the date hereof and the date of closing, for any reason including fire, vandalism, flood, earthquake, or act of God, the risk of loss shall be on Seller. If property is destroyed or substantially damaged before the closing date, this Purchase Agreement shall become null and void, at Buyer's option, and earnest money shall be refunded to Buyer; Buyer and Seller agree to sign cancellation of Purchase Agreement. 11. Time of Essence Time is of the essence in this Purchase Agreement. 12. Acceptance Seller understands and agrees that this Purchase Agreement is subject to acceptance by Buyer in writing. 13. Default If the title to said property shall be found marketable or be so made within said time, and said Buyer shall default in any of the agreements and continue in default for a period of 10 days, then and in that case the Seller may terminate this contract and on such termination all the payments made upon this contract shall be retained by said Seller, as liquidated damages, time being of the essence hereof. This provision shall not deprive either party of the fight of enforcing the specific performance of this contract provided such contract shall not be terminated as aforesaid, and provided action to enforce such specific performance shall be commenced within six months after such fight of action shall arise. Harter PA 08/26/03 Page 4 14. Environmental Concerns. To the best of the Seller's knowledge there are no hazardous substances, underground storage tanks, or wells except herein noted: 15. Well Disclosure Buyer acknowledges receipt of a well disclosure statement from Seller attached as Exhibit A to this agreement. 16. Individual Sewage Treatment System Disclosure Seller discloses that there is not an individual sewage treatment system on or serving the Property. 17. As-Is-Basis It is specifically agreed that the Real Property is being conveyed to the Buyer by the Seller in "As-Is Condition" ("with all faults"). 18. Right of Entry Buyer is duly authorized agents shall have the right during the period fi.om the date of this Agreement to closing, to enter in and upon the Premises in order to make, at Buyer's expense, surveys, measurements, wetland delineations, soil tests, and other tests that Buyer shall deem necessary. Buyer agrees to restore any resulting damage to the Premises and to indemnify, hold harmless and defend Seller from any and all claims by third persons of any nature whatsoever arising from Buyer's right of entry hereunder, including all actions, suits, proceedings, demands, assessments, costs, expenses and attorneys' fees. 19. Brokers Commissions In the event Seller has retained the services of any agent, person, corporation or firm to assist in the sale of the property who, in mm, is entitled to a commission by reason of this Agreement and the closing hereunder, Seller hereby agrees to indemnify and hold Buyer harmless from any liability arising therefrom. 20. Entire Agreement This Purchase Agreement, any attached exhibits and any addenda or amendments signed by the parties, shall constitute the entire agreement between Seller and Buyer, and Harter P.4 08/26/03 Page 5 supersedes any other written or oral agreements between Seller and Buyer. This Purchase Agreement can be modified only in writing signed by Seller and Buyer. 21. Incidental Expenses All expenses of examination of title, transfer tax, preparation and recording of deed, appraisal, closing fees, lot surveys, etc. will be paid by the Buyer. 22. Addendum A Waiver of Relocation Benefits 23. Acceptance and Approval The undersigned, owner of the above land, does hereby approve the above agreement and the sale thereby made. Barbara M. Harter I hereby agree to purchase the said property for the price and upon the terms above mentioned, and subject to all conditions herein expressed. BUYERS: City of Columbia Heights By: Title: Date of Final Acceptance Harter P.4 08/26/03 Page 6 ADDENDUM #A WAIVER AGREEMENT REGARDING RELOCATION BENEFITS AGREEMENT made this 26th day of August, 2003, by and between Barbara M. Harter (hereinafter jointly referred to as "Owner"), and the City of Columbia Heights (hereinafter referred to as "Buyer") WHEREAS, Owner is the fee owner of certain real property and improvements used for residential purposes located at 3942 NE Van Buren (hereinafter "subject property"), in the City of Columbia Heights, County of Anoka, State of Minnesota; and WHEREAS, Owner knows and understands certain relocation benefits are available, pursuant to Minnesota Statute No. 117.52 and the Uniform Relocation Assistance and Real Property Acquisition Policies Act, 42 U.S.C. No. 4621 et seq., (hereinafter referred to as "Uniform Act") from the Buyer and/or The City of Columbia Heights to assist in the relocation of the personal residence at the subject property, which relocation benefits are: Reimbursement of Moving Expenses You may choose between either a payment for your actual reasonable moving and related expenses or a fixed money expense and dislocation allowance. Replacement Housing Assistance To enable you to buy or, if you prefer, rent a comparable or suitable replacement home. Other Relocation Assistance This includes housing referrals and other assistance to help the owner relocate to a comparable decent, safe, and sanitary dwelling. The owner cannot be required to move from their home, unless they are given reasonable opportunities to relocate to a comparable decent, safe and sanitary dwelling that they can afford. Specifically, I am waiving the following relocation benefits: Replacement Housing Payment a. Differential b. Incidental closing costs c. Interest rate differential Estimate $19,000 Waived N/A N/A Moving Costs To be determined or based on estimate by a professional mover Not Waived Total Estimated Waived Relocation Benefits: $19,000 Harter PA 08/26/03 Page 7 WHEREAS, on August 26, 2003, I have met with a representative of Wilson Development Services, the relocation consultants for the City, and discussed the relocation benefits provided under the Uniform Act. They explained to us that we cannot be required to sell this property to the City of Columbia Heights. They also explained to me that the Buyer and/or The City of Columbia Heights will not acquire the property from me, unless I voluntarily enter into the agreement of sale and also agree to waive my relocation rights under the Uniform Act. WHEREAS, I have received and read the pamphlet "Relocation Assistance to Displaced Homeowners. (HUD-1044-CPD) NOW THEREFORE I, Barbara M. Harter, am the owner and occupant of the property at 3942 NE Van Buren in Columbia Heights. I have voluntarily submitted an offer to sell this property to the Buyer. I understand the basic requirements of the Uniform Act. I know that I can not be required to sell the property to the Buyer unless given the relocation assistance required by the Uniform Act. I hereby release and waive the City of Columbia Heights from any and all claims for relocation benefits, pursuant to Minnesota Statutes No. 117.50 et seq. and the Uniform Relocation Assistance and Real Property Acquisition Policies Act, 42 U.S.C. No. 4621 et seq. t~itness ' '// - Harter PA 08/26/03 Page 8 WELL DISCLOSURE STATEMENT This form approved by the Minnesota Association of REALTORS®, which disclaims any liability arising out of use or misuse of this form. ¢)2000, Minnesota Association of REALTORS®, Edina, MN 1. Date Auoust 26. 2003 2. Page 1 of 2 Pages:THE REQUIRED MAP IS 3. ATTACHED HERETO AND MADE A PART HEREOF 4. Minnesota Statutes Sec. 1031.235 requires that before signing an agreement to sell or transfer real property, the Seller 5. must disclose information in writing to the Buyer about the status and location of all known wells on the property. This 6. requirement is satisfied by delivering to the Buyer either a statement by the Seller that the Seller does not know of any 7. wells on the property, or a disclosure statement indicating the legal description and county, and a map showing the 8. location of each well. In the disclosure statement the Seller must indicate, for each well, whether the well is in use, not 9. in use or sealed. 10. Unless the Buyer and Seller agree to the contrary, in writing, before the closing of the sale, a Seller who fails to disclose 11. the existence or known status of a well at the time of sale and knew or had reason to know of the existence or known 12. status of the well, is liable to the Buyer for costs relating to sealing of the well and reasonable attorney fees for 13. collection of costs from the Seller, if the action is commenced within six years after the date the Buyer closed the 14. purchase of the real property where the well is located. 15. Legal requirements exist relating to various aspects of location and status of wells. Buyer is advised to contact the local 16. unit(s) of government, state agency, or qualified professional which regulates wells for further information about these 17. issues. 18. Instructions for completion of this form are on the reverse side. 19. PROPERTY DESCRIPTION 20. Street address: Rf:14? V~n Rmmren Rtr~.~.l NF:. ~ohmmhia H~_i.n. ht~. Minn~nf~ ~R4~)q. Annk~ ~nunt¥ (ci~) (zip] 21.LEGAL DESCRIPTION (Count) 22. Columbia Heiohts Annex to Minnea~lis. Anoka County. Minnesota S 4 Fl of Lot 13 and all of Lot 14 Block 63 Columbia Heioht 23. Rnlmth Ann~.x-Rmih?.ct to ~_nR~.m~.nt for ~tnrm R~.w~.r nn 1 ot 14 24. 25. WELL DISCLOSURE STATEMENT 26. (CHECK THE APPROPRIATE BOX.) 27. [] The Seller certifies that the Seller does not know of any wells on the above described real property. 28. (If this option is checked, then skip to the last line and sign and date this statement.) 29. [] The Seller certifies that the following wells are located on the above described real property. 30. MN Unique Well Year of Well IN USE NOT IN SEALED 31. Well No. Depth Const. Type USE 32. Well 1 [] [] [] 33. Well 2 [] [] [] 34. Well 3 [] [] [] 35. NOTE: See definition of terms "IN USE," "NOT IN USE," and "SEALED" on lines 82-91. If a well is not in 36. use, it must be sealed by a licensed well contractor or a well owner must obtain a maintenance permit from the 37. Minnesota Department of Health and pay an annual maintenance fee. Maintenance permits ara not transferable. If a 38. well is operable and properly maintained, a maintenance permit is not required. 39. SEALEDWELL INFORMATION 40. For each well designated as sealed above, complete this section. 41. When was the well sealed? 42. Who sealed the well? 43. Was a Sealed Well Report filed with the Minnesota Department of Health? Yes__ No Unknown 44. MAP 45. Complete the attached MAP showing the location of each well on the real property. 46. This disclosure is not a warranty of any kind by the Seller(s) or any Agent(s) representing any Party(s) in this 47. transaction, and is not a substitute for any inspections or warranties the Party(s) may wish to obtain. 48. CERTIFICATION BY SELLER 49. I certi~ that the information provided above is accurate and complete to the best of my knowledge. {Sel~e~'~ig~ated Refx'e~entatlim) ' ' '- - (Dat~) (Sel~r o~ Dealgna~ed Reprement~tlv~) (Dam) 51. BUYER'S ACKNOWLEDGMENT 52. (BuyeQ (Date) (Burr) 53. ORIGINAL COPYTO LISTING BROKER; COPIESTO SELLER, BUYER, SELLING BROKER MN-WDS-1 (9/00) (Date) WELL DISCLOSURE STATEMENT 54. Page 2 of 2 Pages 55. INSTRUCTIONS FOR COMPLETING THE WELL DISCLOSURE STATEMENT 56. DEFINITION 57. A "well" means an excavation that is drilled, cored, bored, washed, driven, dug, jetted, or otherwise 58. constructed if the excavation is intended for the location, diversion, artificial recharge, or acquisition of 59. groundwater. 60. MINNESOTA UNIQUE WELL NUMBER 61. All new wells constructed AFTER January 1, 1975 should have been assigned a Minnesota unique well 62. number by the person constructing the well. If the well was constructed after this date you should have the 63. unique well number in your property records. If you are unable to locate your unique well number and the well 64. was constructed AFTER January 1, 1975, contact your well contractor. If no unique well number is available, 65. please indicate the depth and year of construction for each well. 66. WELL TYPE 67. Use one of the following terms to describe the well type. 68. 69. 70. WATER WELL: A water well is any type of well used to extract groundwater for private or public use. Examples of water wells are: domestic wells, drive-point wells, dug wells, remedial wells, and municipal wells. 71. 72. IRRIGATION WELL: An irrigation well is a well used to irrigate agricultural lands. These are typically large diameter wells connected to a large pressure distribution system. 73. 74. MONITORING WELL: A monitoring well is a well used to monitor groundwater contamination. The well is typically used to access groundwater for the extraction of samples. 75. 76. DEWATERING WELL: A dewatering well is a well used to lower groundwater levels to allow for construction or use of underground spaces. 77. 78. 79. INDUSTRIAL/COMMERCIAL WELL: An industrial/commercial well is a nonpotable well used to extract groundwater for any nonpotable use including groundwater thermal exchange wells (heat pumps and heat loops). 80. WELL USE STATUS 81. Indicate the use status of each well. CHECK ONLY 1 BOX PER WELL. 82. 83. IN USE: A well is "in use" if the well is operated on a daily, regular, or seasonal basis. A well in use includes a well that operates for the purpose of irrigation, fire protection, or emergency pumping. 84. 85. NOT IN USE: A well is "not in use" if the well does not meet the definition of "in use" above and has not been sealed by a licensed well contractor. 86. 87. 88. 89. 90. 91. SEALED: A well is "sealed" if a licensed contractor has completely filled a well by pumping grout material throughout the entire bore hole after removal of any obstructions from the well. A well is "capped' if it has a metal or plastic cap or cover which is threaded, bolted, or welded into the top of the well to prevent entry into the well. A "capped" well is not a "sealed" well. If the well has been sealed by someone olher than a licensed well contractor or a licensed well sealing conlmctor, check the well status as not in use. If you have any questions, please contact the Minnesota Department of Health, Well Management Section at (651) 215-0819 (metropolitan Minneapolis-St. Paul) or 1-800-383-9808 (greater Minnesota). MN-WDS-2 (9/00) ATTACHMENT TO PURCHASE AGREEMENT FOR SALVAGE RIGHTS BARBARA M. HARTER 3942 VAN BUREN COLUMBIA HEIGHTS STOVE REFRIGERATOR WASHER DRYER FURNACE HOTWATER HEATER HANDICAP RAMP FLOWERBED