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September 22, 2003 Regular
CITY 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 September 19, 2003 Mayor Julienne Wyckoff Councilmembers Robert A. Williams Bruce Nawroda' Tammera Ericson Bruce Kelzenberg Ci~ Manager Waiter 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 22, 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 Bob Lyndes, St. Timothy Lutheran Church 1. CALL TO ORDER/ROLL CALL 2. PLEDGE OF ALLEGIANCE 0 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 1. Polish-American Heritage Month 2. Domestic Violence Awareness Month 3. Minnesota Cities Week - October 5 to 11 B) Presentations- 1) Columbia Heights Athletic Boosters Association donation to the Recreation Department 2) Citizen Award of Commendation to Chaucer Bergstrom C) Introduction of New Employees -none 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 September 8, 2003 MOTION: Move to approve the minutes of the September 8, 2003, regular City Council meeting as presented. 2) Accept Boards and Commissions Meeting Minutes a) MOTION: Move to accept the Library Board of Trustees minutes of September 2, 2003. b) MOTION: Move to accept the Economic Development Authority minutes of August 20, 2003. c) MOTION: Move to accept the Human Services Commission minutes of September 10, 2003. THE CITY OF COLUMBIA HEIGHTS DOES NOT DISCRIMINATE ON THE BASIS OF DISABILITY IN EMPLOYMENT OR THE PROVISION OF SERVICES EOUAL OPPORTUNITY EMPLOYER City Council Agenda September 22, 2003 Page 2 of 4 3) Adopt Resolution No. 2003-38, being a resolution adopting revised wage rate for youth football officials, effective September 13, 2003 MOTION: Move to waive the reading of the resolution, there being ample copies available to the public MOTION: Move to adopt Resolution 2003-38, being a resolution adopting revised wage rate for youth football officials, effective September 13, 2003 4) Adopt Resolution No. 2003-39, being a resolution establishing the amount of City Share and amount of Special Assessments on projects to be levied MOTION: Move to waive the reading of the resolution, there being ample copies available to the public. MOTION: Move to adopt Resolution No. 2003-39, being a resolution establishing the amount of City Share and amount of Special Assessments on projects to be levied. 5) Approve an extension of the Police and Fire Medical Service Contract with the City of Hilltop through December 31, 2003 at a rate of $37,250 for police service and a rate of $170 per call for medical calls. MOTION: Move to approve an extension of the Police and Fire Medical Service Contract with the City of Hilltop through December 31, 2003, at a rate of $37,250 for police service and a rate of $170 per call for medical calls. 6) Approve Business License Applications MOTION: Move to approve the items as listed on the business license agenda for September 22, 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 105090 through 105213 in the amount of $452,295.30. PUBLIC HEARINGS A) Close Public Hearing regarding revocation/suspension of the Rental License for 4610-4612 Fillmore Street. Move to Close the Public Hearing Regarding the Revocation or Suspension of the Rental License Held by Mohsen Dessouki Regarding Rental Property at 4610-4612 Fillmore Street N.E. in that the Property complies with the Residential Maintenance Code. B) Public Heating - Adopt Resolution 2003-40, a resolution adopting a Modification to the Downtown CBD Revitalization Plan for the CBD Redevelopment Project and establishing the Kmart/Central Avenue TIF District and Adopting a TIF Plan. MOTION: Move to waive the reading of Resolution 2003-40, there being an ample amount of copies available to the public. MOTION: Move to Adopt Resolution 2003-40, a Resolution Adopting a Modification to the Downtown Central Business District (CBD) Revitalization Plan for the CBD Redevelopment Project and City Council Agenda September 22, 2003 Page 3 of 4 establishing the Kmart/Central Avenue Tax Increment Financing District therein and Adopting a Tax Increment Financing Plan; and furthermore to authorize the Mayor and City Manager to enter into an agreement for the same. ITEMS FOR CONSIDERATION A) Other Ordinances and Resolutions 1) First Reading of Ordinance No. 1460, being an Ordinance amending Ordinance No. 853, pertaining to Zoning and Development Ordinance No. 1428. MOTION: Move to waive the reading of Ordinance No. 1460, there being ample copies available to the public. MOTION: Move to schedule the second reading of Ordinance No. 1460, being an Ordinance amending Ordinance No. 853, pertaining to Zoning and Development Ordinance No. 1428 for Monday, October 13, 2003, City Hall Council Chambers, at approximately 7:00 p.m. 2) Adopt Resolution No. 2003-30, being a Resolution adopting Columbia Heights Design Guidelines for the Central and 40th Avenue corridors. MOTION: Move to waive the reading of Resolution No. 2003-30, there being ample copies available to the public. MOTION: Move to adopt Resolution No. 2003-30, being a Resolution adopting Columbia Heights Design Guidelines for the Central and 40th Avenue corridors. 3) First Reading of Ordinance No. 1462, being an ordinance amending Ordinance No. 853, pertaining to Zoning and Development Ordinance No. 1428, Kmart Redevelopment Site Rezoning, for Monday, October 13, 2003, City Council Chambers at approximately 7:00 p.m. MOTION: Move to waive the reading of Ordinance No. 1462 there being ample copies available to the public. MOTION: Move to scheduled the second reading of Ordinance No. 1462, being an ordinance amending Ordinance No. 853, pertaining to Zoning and Development Ordinance No. 14428 for Monday, October 13, 2003, City Council Chambers at approximately 7:00 p.m. 4) First Reading of Ordinance No. 1461, being an Ordinance Establishing Abatement of Public Nuisances Process MOTION: Move to waive the reading of Ordinance No. 1461, there being ample copies available to the public. MOTION: Move to schedule the second reading of Ordinance No. 1461, being an Ordinance establishing Abatement of Public Nuisances Process for Monday, October 13, 2003, at approximately 7:00 p.m in the City Council Chambers. B) Bid Considerations - none C) Other Business o none 8. ADMINISTRATIVE REPORTS A) Report of the City Manager B) Report of the City Attorney City Council Agenda September 22, 2003 Page 4 of 4 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, [2ity Manager ' WF/pvm PROCLAMATION POLISH-AMERICAN HERITAGE MONTH OCTOBER 2003 WHEREAS, October is Polish-American Heritage Month, which is a national celebration of Polish Heritage. This observance also recognizes Polish culture and pride in cooperation with the Polish-American Congress and Polonia across America. WHEREAS, the Polish American Heritage Month Committee is celebrating their Twenty-second Anniversary of is founding since being recognized in Philadelphia, Pennsylvania. The purpose of the Committee is to bring attention to the contributions of Poles and Polish Americans to the United States and world history. WHEREAS, in 2003, the 212th Anniversary of Poland's Constitution is being observed. WHEREAS, the City of Columbia Heights has many residents who take pride in their Polish heritage, ancestry, and traditions. WHEREAS, our Columbia Heights/Lomianki, Poland, Sister Cities International Committee is celebrating the 12'tn-anniversary of our special relationship. In 2003 this Committee has provided or sponsored various civic, educational, cultural and humanitarian activities. WHEREAS, in July of 2003 the City of Columbia Heights Sister City Committee was honored to sponsor a visit of Polish dignitaries from our Sister City in Lomianki, Poland. WHEREAS, the Sister Cities emblem at our gateway Park is an impressive reminder of our commitment to international friendship. We share the ideals of pride and patriotism with all. NOW, THEREFORE, BE IT PROCLAIMED, that I, Julienne Wyckoff, Mayor of the City of Columbia Heights, do hereby designate October as: Polish American Heritage Month in Columbia Heights, Minnesota. Mayor Julienne Wyckoff PROCLAMATION OF OCTOBER 2003 AS DOMESTIC VIOLENCE AWARENESS MONTH WHEREAS, the community problem of domestic violence has become a critical public health and welfare concern in Anoka County; and WHEREAS, domestic violence is a crime, the commission of which will not be tolerated in Anoka County and perpetrators of said crime are subject to prosecution and conviction in accordance with the law; and WHEREAS, over thousands of women and children have and will continue to access assistance from Alexandra House, Inc., a domestic violence service provider; and WHEREAS, domestic violence will be eliminated through community parmerships of concemed individuals and organizations working together to prevent abuse while at the same time effecting social and legal change; and WHEREAS, October is National Domestic Violence Awareness Month; and WHEREAS, during National Domestic Violence Awareness Month, Anoka County organizations will inform area residents about domestic violence, its prevalence, consequences and what we, as a concerned community can do to eliminate its existence. NOW, THEREFORE, BE IT RESOLVED that I, Mayor Julienne Wyckoff proclaims October to be Domestic Violence Awareness Month. Mayor Julienne Wyckoff PROCLAMATION MINNESOTA CITIES WEEK OCTOBER 5 TO 11, 2003 CITY GOVERNMENT: SERVING CITIZENS 24/7 WHEREAS; the residents of the City of Columbia Heights rely on city government to experience a high quality of life in our community; and WHEREAS; city governments around the state of Mirmesota work 24 hours a day, seven days a week to deliver city services such as fire, police and emergency medical services to create safe communities; and WHEREAS; the methods of funding these vital city services are not always clearly understood by residents; and WHEREAS; it is one of the responsibilities of city officials to ensure that legislators, media and residents understand their city government through open and frequent communication using various avenues and means; and WHEREAS it is important to work to encourage this connection and inform residents of the importance of state shared revenues and levy authority in order to preserve the excellent delivery of services that our residents have come to expect in our city; and WHEREAS; through education and awareness, residents, community leaders and city staff can work together to ensure that services provided by the City of Columbia Heights can remain exceptional elements of the quality of life of our community. NOW THEREFORE BE IT RESOLVED that I, Mayor Julienne Wyckoff, join with municipalities across the state of Minnesota and the League of Minnesota Cities to proclaim October 5 - 11, 1002, Minnesota Cities Week. Mayor Julienne Wyckoff City of Columbia Heights OFFICIAL PROCEEDINGS COLUMBIA HEIGHTS CITY COUNCIL CITY COUNCIL MEETING SEPTEMBER 8, 2003 THESE MINUTES HAVE NOT BEEN APPROVED, The following are the minutes for the regular meeting of the City Council 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. Reverend Dan Thompson, Columbia Heights Assembly of God Church, gave the Invocation. CALL TO ORDER/ROLL CALL Mayor Wyckoff called the meeting to order at 7:03 p.m. Present: Mayor Wyckoff, Councilmember Williams, Councilmember Nawrocki, Councilmember Ericson, and Councilmember Kelzenberg PLEDGE OF ALLEGIANCE - recited ADDITIONS/DELETIONS TO MEETING AGENDA Nawrocki stated that the second anniversary date of the tragedy in New York and is now call "Patriots Day ". There will be a memorial event on Thursday, September 11, at the Fridley High School, and encouraged everyone to attend. PROCLAMATIONS~ PRESENTATIONS~ RECOGNITIONS AND GUESTS A) Proclamations - none B) Presentations - none 1) Report from the Sister City Committee Wally Logacz stated he is receiving letters and cards from our Polish visitors indicating how grateful they are for our hospitality, and that it was the most memorable thing that ever happened to them. Logacz thanked the Mayor, City Council, City Manager, and everyone in the City for their help to bring the guests here and to entertain them. He stated the desire that a City official visit Lomianki in the future to honor our Sister City relationship. Logacz stated he would attend Lomianki's annual ceremony on September 21st, which honors those from the American BI 7 airplane that was shot down over their community on September 18, 1944. Logacz gave the history of the Poles during WWII. He tom of a book he received that included how Walter Szymczak died as a result of that plane crash; details that resident Bernie Szymczak (Waiter's brother) never knew. The City of Lomianki honors this event every year. They have three monuments in their community significant to this event. They also have a private school named "The American Flyer School ". Dolores Strand, co-chair of the Sister City Committee, stated her appreciation of the support received from the City and Staff during the dignitary's visit. Strand and Logacz attended the Sister Cities International Convention this July in St. Louis. Strand gave the background of the Sister City International organization. There are now 700 American cities partnered with foreign cities. She emphasized the importance of municipal support to this organization and listed other conference topics. 120 different countries were represented at a parade during the conference. The Columbia Heights Sister City Committee received second place as the most outstanding small Sister City Committee. First place went to Red Wing, Minnesota. The Minnesota conference will be in St. Paul in September. Governor Pawlenty will be visiting Warsaw and may visit Lomianki. Strand stated that the Sister City Committee will again participate in the Wheel Chairs for Peace project. C) Introduction of New Employees - none City Council Minutes September 8, 2003 Page 2 of 13 D) Recognition - none CONSENT AGENDA Walt Fehst, City Manager, took Councilmembers through the consent items. 1) Approve City Council Meeting Minutes for August 25, 2003 Motion to approve the minutes of the August 25, 2003, regular City Council meeting as presented. Nawrocki asked for the following corrections: Page one - 2.3 liquor should be 3.2 liquor. Page three - motion to approve the consent agenda should include "with the exception of item #5". 2) Accept Boards and Commissions Meeting Minutes Motion to accept the Economic Development Authority meeting minutes of July 15, 2003. Motion 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 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. Work Session agenda items for September 15, 2003: LMCIT Insurance Pool re: City liability on watermain breaks or sewage backups - Hopefully, an agent will be available to attend the meeting. Revised Public Nuisance Ordinance - This would bring a portion of the proposed codified ordinance to Council prior to the rest of the City Code, to allow the establishment of an abatement process in Columbia Heights yards. · Abatement - 3730 Tyler - The intention is that taking someone to court is not always the answer. · Copier replacement 4) Adopt Resolution 2003-36, being a resolution authorizing application for a Predevelopment Grant. Motion to waive the reading of Resolution 2003-36, there being ample copies available to the public. Motion to adopt Resolution 2003-36, being a resolution authorizing application for a Predevelopment Grant. Fehst stated this is a one time grant for predevelopment of housing through the Metropolitan Council. Some members of the Met Council have already visited the redevelopment site. The grant would fund the infrastructure feasibility study and engineering service costs. Nawrocki asked if we have made a commitment to housing in the industrial area and if this is for contamination clean up. Fehst stated no, but housing is under consideration. This is an additional funding source. RESOLUTION NO. 2003-36 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 Wl~EREAS, the City has the institutional, managerial and financial capability to ensure adequate project administration; and WlClF~REAS, the City certifies that it will comply with all applicable laws and regulations as stated in the City Council Minutes September 8, 2003 Page 3 of 13 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. 5) Establish a heating date of September 22, 2003 for revocation or suspension of rental property license at 4610-4612 Fillmore Street NE Motion to Establish a Hearing 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 to approve the items as listed on the business license agenda for September 8, 2003 as presented. 7) Approve Payment of Bills Motion 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. Motion by Nawrocki, second by Williams, to approve the consent agenda. Upon vote: All ayes. Motion carried. PUBLIC HEARINGS Public Hearing called for Revocation/Suspension of Rental Housing License at 3732 3rd Street Mayor Wyckoff closed the Public Hearing 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. Wyckoff indicated to Mr. Frenzel that his property was in compliance and there would not be a public hearing. ITEMS FOR CONSIDERATION A) Other Ordinances and Resolutions 1) Adopt Ordinance #1459, being an Ordinance adopting a gas franchise agreement with CenterPoint Energy Minnegasco Wyckoff stated this Ordinance is to renew the current agreement with CenterPoint Energy Minnegasco. Nawrocki stated that the Ordinance now allows for the City to set a franchise fee. Fehst stated that we were not restricted from establishing a franchise fee in the prior ordinance. Motion by Williams, second by Nawrocki, to waive the reading of Ordinance No. 1459, there being ample copies available to the public. Upon vote: All ayes. Motion carried. Motion by Williams, second by Nawrocki, to adopt Ordinance #1459, being an Ordinance adopting a gas franchise agreement with CenterPoint Energy Miunegasco. Upon vote: Kelzenberg, aye; Williams, aye; Ericson, aye; Nawrocki, aye; Wyckoff, aye. Upon vote: All ayes. Motion carried. City Council Minutes September 8, 2003 Page 4 of 13 (Ordinance #1459 is attached at the end of this document) 8) 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 Wyckoff stated that this Resolution would allow the rezoning of the Kmart area. Nawrocki stated that an ordinance should be amended with an ordinance, not a resolution. City Attorney Jim Hoeft stated that the structure of the new zoning ordinance allows rezoning by resolution, similar to establishing fees. Modifying provisions within the ordinance would need to be by ordinance. Nawrocki stated he was not opposed to the project, but felt there should be a public hearing at a City Council meeting on this significant topic. He questioned the impact of this project on the School District. Nawrocki indicated that there would be no additional tax dollars from this project to support community services for sixteen years, which is not all necessarily bad. [Vyckoff stated that the Planning and Zoning Commission (P&Z) held a public hearing on September 2na, and all business owners along Central Avenue have been notified. Wyckoff stated that a report was received regarding the School District. Hoefi stated that the P&Z held the required hearing, and that the rezoning of the property to the proposed designated would expand the current owners ability to utilize their property, rather than restrict it. Nawrocki stated that the previously allowable unit density was 12 units per acre and this proposal would have 18 units. Tim Johnson, City Planner, stated the maximum is 20 units per acre, and Council could choose to allow up to 30 units with certain restrictions. Johnson explained the similarities of the Transit Oriented and the Mix Use District designations. Nawrocki requested a copy of the Metropolitan Council letter approving changes to the Comprehensive Plan. Johnson showed a map of the Kmart area, indicating where rezoning is requested The mixed use component allows residential development, would not harm commercial property, but would allow flexibility for businesses. Johnson stated that the City Council and Met Council have accepted the changes to the Comprehensive Plan and this resolution would assure consistency. Williams asked what would happen following this action. Johnson stated that the site plan and plat plan would be next, which would require a P&Z public hearing, and then go before the City Council for their review. After this, a final plat plan would come before the Council. Williams referred to a resident's letter concerning bank erosion during the proposed development. Johnson stated that the engineers would have to address the issue. Wyckoff stated that a letter to this resident has been drafted and asked that Councilmembers also receive a copy. Nawrocki stated that Council would not have a chance to make decisions for stabilization of the bank. Fehst indicated that Council could hold a public hearing, but State law requires the P&Z to hold the public hearing. The P&Z will only make a recommendation to the City Council. Fehst stated that it would be in the developer's best interest to stabilize and beautify the bank. Hoeft indicated that if the plan were consistent with the Comprehensive Plan, it would entail a Tax Increment Financing agreement and development agreement, which would cover the issues discussed. If this development does not proceed, current owners could present a site plan to the P&Z and if that falls within the zoning ordinance, would not be required to come before Council. Hoeft stated that the local ordinance is consistent with State Statutes. Nawrocki stated those decisions should be made by the elected body. Fehst stated this development would be "pay as you go" taxing, not like another area where there was a failure to pay from foreclosure. They will have to bring their tax increment proposal before the City Council and the Economic Development Authority. City Council Minutes September 8, 2003 Page 5 of 13 Roger Strom, 690 47 ~ Avenue, asked what would happen to the surrounding businesses included in the plan. Wyckoff stated that we would try to relocate them in Columbia Heights. Wyckoff stated that other businesses have expressed interest to come into our community if this development does come in. Fehst also stated the desire to relocate these businesses in town. Nawrocki again pointed out the results of a sixteen year tax increment financing (TIF) district on City services. Fehst stated the other option is to leave the property as is. Fehst stated that law allows for a 25 year TIF plan. There is a ten percent allowance back to the City for administrative costs. Fehst stated that additional incomes and new businesses would move into the community because of this development. Wyckoff referred to Rob Fiorendino's comment that "the biggest mistake the City could make would be to do nothing". Wyckoff indicated that the Kmart building is now scheduled for demolition. Motion by Williams, second by Kelzenberg, to waive the reading of Resolution 2003-37, there being ample copies available to the public. Upon vote: All ayes. Motion carried. Motion by Williams, second by Kelzenberg, 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. Nawrocki stated there have been other proposals for the property, but the owner has declined to accept those proposals. Kmart was held under the bankruptcy law for a period of time. Motion by Nawrocki, to table the matter of rezoning for the purpose of holding a public heating on this matter. As no second was received, this motion was not considered. .Upon vote: Kelzenberg, aye; Williams, aye; Ericson, aye; Nawrocki, aye; Wyckoff, aye. Upon vote: All ayes. Motion carried. RESOLUTION 2003-37 A RESOLUTION PERTAINING TO THE REZONING OF CERTAIN PROPERTIES LOCATED AT 4707, 4747, 4757, 4801, 4811, AND 4849 CENTRAL AVENUE NE WglEREAS, 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 WHle, REAS, 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 WltEREAS, 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 wmr~REAS, 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 W[IEREAS, 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 WlrlEREAS, there has been a change in the character and trend of development in the general area of the City Council Minutes September 8, 2003 Page 6 of 13 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 FURTI:rER RESOLVED that the Planning Commission has reviewed and recommends approval of the proposed rezoning from GB, General Business to MXD, Mixed-Use District. E) F) Bid Considerations - none Other Business 1) Approval of Purchase Agreement for Single Family Residential Property at 3942 Van Buren Street Fehst introduced Kathy Young, Assistant City Engineer and president of the Minnesota Public Works Association. Young stated that this purchase is for flood mitigation purposes and that the City has mitigated other similar flood properties on 42na and on Washington Street, with a 50/50 cost split through a DNR grant. Fehst stated that Mr. Dan Wilson, the City's Relocation Agent, was present to answer questions on acquisition of the property. Young stated that this home and garages in the area have a history of being flooded with clear water. Wilson indicated that there is water in this basement a good share of the time, and that this is not a good property for housing. He stated negotiations are underway with another neighbor that also has a problem. Wyckoff asked if the curb cut would be fixed. Young stated it would be. Nawrocki questioned the property value used and stated that there would also be demolition costs, and asked what would happen to the lot. Young stated the proposal would be to grade the lot with a swale of three to four feet, with a catch basin that would be connected to the storm water system. Young stated that all costs are incorporated into the grant and would be split 50/50. Williams suggested we pursue offering to sell the lot to the neighbors to enhance their lots. Fehst stated it would have to be with the provision that the area would never be filled. Nawrocla' stated that they would have use of the land without buying it. Wyckoff questioned possibly using these type of lots for more community gardens. Young indicated that this lot does flood in heavy rains. Motion by Ericson, second by Williams, 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. Upon vote: Kelzenberg, aye; Williams, aye; Ericson, aye; Nawrocki, aye; Wyckoff, aye. Upon vote: All ayes. Motion carried. ADMINISTRATIVE REPORTS Report of the City Manager Fehst reminded everyone that the City Auction would be this Saturday; open at 9:00 a.m. to view items and the auction would begin at 10:00 a.m., at the Public Works garage. There will be some forfeiture cars, bikes, computer equipment and many miscellaneous items. Wyckoff questioned the status of the Star Bar. Fehst stated that at this point ownership is in question and that the City Attorney would review the liquor license. Nawrocki stated this should be researched immediately. Hoefi stated there are current citations for the Star Bar and that he has discussed ownership with their attorney. He was told that the current license holder would be the owner through the end of the year. Report of the City Attorney - none City Council Minutes September 8, 2003 Page 7 of 13 CITIZENS FORUM Roger Strom, 690 47 ~ Avenue, asked if the Apache Theater wouM sit empty, now that it is closed. Fehst stated that there are several people interested in the site. St. Anthony also has plans for the Apache site. IVyckoff indicated that the owner may try operating a dollar theater, and stated that he has been contacted by the medical clinic with interest in the site. Strom thanked the City Engineer for the additional benches at Sullivan Park. COUNCIL COMMUNICATION Nawrocki · Comprehensive Plan change was put into effect so quickly, has concerns for the Huset Park group and the promise to them that a committee of their peers would review the part of the plan on 40th Avenue. · Read a letter from a resident dated August 28, 2003 regarding his actions at council meetings. He read his response to the gentleman. All responses are important and the majority of comments have been positive. · Viewed Comcast equipment, an example of HDTV, and the process to keep up with technology. · Attended the North Star Advisory meeting and referenced discussion of passenger cars on the Burlington Northern Railroad line from St. Cloud to Minneapolis. There are Federal funds available, which are contingent on local fimds. The group is trying to attract local support and will again request fimds from the Legislature next year. · Serves as League of Minnesota Cities liaison on two committees - Improving Local Economies and AMC Municipal Revenues committee, which are important for State finances and future discussions of fiscal disparities. There is discussion of the State's displeasure regarding administrative fines, which our Chief of Police is promoting. Hoefi stated that a speeding ticket of l O-15 miles over the limit is $92 and $85 of that goes to the State. Stated concern that there may be retribution to communities issuing these fines. · Took exception to the Greensheet report of $450,000 received for a new fire truck and the Fire Chief's account that this should have been obtained 20 years ago. The number of times a ladder track is needed is very few, but mutual aid with Fridley fills the need. Hope is that this piece of equipment will be available for mutual aid. Fehst stated it wouM be available to aid other communities. Ericson Asked Fehst to tell about the grant monies received for the ladder truck. Fehst stated pride in the Chief and Staff for putting the FEMA grant together. Fridley will soon need to replace their ladder truck and we made discuss the local share with them. This wouM be a ladder with a hose that can be operated remotely from the ground. We are delighted and would make it available to other communities through mutual aid. 14~yckoff stated the desire to invite Senator Coleman to our community when we receive the equipment. Fehst included Representative Sabo. Fehst indicated that we applied for $600,000 and will receive $450,000. Wyckoff questioned if this would lower our insurance rates. Fehst stated this could reduce commercial and industrial insurance rates. Nawrocki spoke of his father as a fire fighter and the equipment they used. Wyckoff · Referred to two letters of confidence she received from residents, and to one anonymous phone message. She requested the person leave her name and number so she can return the call. Listed the Library Patrons of the Month as the Columbia Heights Schools. There are openings on the Library Board and on the Charter Commission. City Council Minutes September 8, 2003 Page 8 of 13 Williams · Thanked Chief Thompson for his efforts to obtain funding for the ladder fire truck. · Hansen will have a Huset Park area public meeting on Thursday evening, September 11th. · Referred to rumors regarding rent increases at Parkview Villa. This building was finished ten years ago for $2 million, and no payments were made on it and we now owe $6 million. No final decisions have been made. · Stated the difference between a sanitary sewer and a storm sewer. Indoor plumbing goes to the sanitary sewer. If residents have a sump pump hooked to the drain in the basement it is illegal, which may not be intentional, but needs to be changed. · Explained the percentage of tax the City receives from residents and the difference paid by a $100,000 home versus a $300,000 home. · The October Values First Community Core Value is Nonviolence with the definition of Peace and Conflict Resolution. Pray for the peace and prosperity of our City. Kelzenberg · Very expensive to enroll youth in sport programs and extensive volunteer time is required. We must get community help in this area and would like to see something done for the Recreation Department. Program participants defray costs through fund raising and encouraged residents to support them. · The 500 Club will begin next month. ADJOURNMENT Mayor Wyckoff adjourned the meeting at 9:15 p.m. Patricia Muscovitz, CMC Deputy City Clerk/Council Secretary 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 ~ PUBLIC GROUND OF THE CITY OF COLUMBIA HEIGHTS, MINNESOTA, FOR SUCH PURPOSE; AND, PRESCRIBING CERTAIN TERMS AND CONDITIONS THEREOF. THE CITY COUNCIL OF ~ 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 Council Minutes September 8, 2003 Page 9 of 13 thereof, heating, City Utility System. Facilities used for providing public utility service owned or operated by City or agency including sewer, storm sewer, water service, street lighting and traffic signals, but excluding facilities for providing lighting, or other forms of energy. Commission. The Minnesota Public Utilities Commission, or any successor agency or agencies, including an agency of the federal govemment, 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 franchise. 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 FRANCIHSE. 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 fight 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) Ordinance 1446. The Company shall be notified 60 days in advance of proposed changes to City ordinance (ROW) 1446. 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 Date~ Written Acceptance. This fi'anchise 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. City Council Minutes September 8, 2003 Page 10 of 13 2.4. Publication Expense. Company shall pay the expense of publication of this Ordinance. 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 whtten. 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 fa-st 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~ OTI~ER 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's 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 Public Grounds under state law, to the extent not inconsistent with a specific term of this franchise. 3.2. Street Openimts. Company shall not open or disturb the surface of any Public Way or Public Ground for any purpose without fu'st 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 requiting the opening of any Public Way, the Company shall restore the Public 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, 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 fight 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 Damage 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 City Council Minutes September 8, 2003 Page 11 of 13 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 Maonint 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 Ordinance (ROW) 1446. City may require Company at Company's expense to relocate or remove its Gas Facilities from Public Grounds upon a finding by City that thc Gas Facilities have become or will become a substantial impairment to thc 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. Prolects 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 Minnesota 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 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 prescripti9e right or State or County permit. SECTION 5. INDEMNIFICATION. 5.1. Indemnity of City. Company shall indemnify, keep and hold the City, its elected officials, officers, employees and agents free and harmless from 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 fianchise agreement shall not be interpreted to constitute a waiver by the City of any of its defenses of immunity or hmitations 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. CltANGE 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. City Council Minutes September 8, 2003 Page 12 of 13 This ordinance and the franchise it confers may not be assigned by the Company without the express written consent of the City. SECTION 8. FRANCHISE FEE. 8.1. Form. During the term of the franchise hereby granted, and in addition to any permit, licensing, 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 amount 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 fi-anchise 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 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. Severability. 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 Applicability. 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 insure 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. City Council Minutes September 8, 2003 Page 13 of 13 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. This Ordinance shall be in full force and effect from and after thirty days (30) after its passage. ECONOMIC DEVELOPMENT AUTHORITY (EDA) REGULAR MEETING MINUTES AUGUST 20, 2003 CALL TO ORDER/ROLL CALL Vice President, Jindra called the meeting to order at 9:12 p.m. and then turned the meeting over to Tammera Ericson, Treasurer. Present: Patricia Jindra, Julienne Wyckoff, Bobby Williams and Bruce Nawrocki, Tammera Ericson, and Bruce Kelzenberg Absent: Don Murzyn Jr. PLEDGE OF ALLEGIANCE CONSENT AGENDA Approval of Minutes Financial Report and Payment of Bills MOTION by Nawrocla', second by Williams, to adopt the consent agenda items as listed. All ayes. Motion Carried. ITEMS FOR CONSIDERATION Adopt Resolution 2003-12 & 2003-13, Budget and Levy, for 2004 Streetar stated staff has prepared the 2004 Budget and Levy documents for board adoption. The 2004 Community Development Budget Resolution 2003-12 is $222,648for the Budget and an additional $84,965 for the Levy. Resolution 2003-13 is approving and levying a total of $137,683 in funding. The budget and levy resolutions are based on two priorities that City Council has expressed to staff; 1) Redevelopment of Central Avenue and 2) Industrial Park Redevelopment project. In order to achieve these goals these funding sources are very important. The 2004 Levy combined is $30,000 less than last year. Streetar asked the boardmembers three questions: 1) do you like the direction staff is going; 2) would they approve the Budget; and 3) would they approve the Levy. Williams, Ericson, Wyckoff, Kelzenberg, and Jindra all agreed that staff was going to the right direction with redevelopment of the City and felt comfortable approving the budget and levy for 2004. Wyckoff asked if there is a way the City can tax residents for redevelopment. Streetar stated he wasn't aware of this but, would check with Bubul. Nawrocki questioned why the EDA was approving an HRA levy and is the $137,683 the maximum amount the City can Levy. Streetar stated Steve Bubul has verified the EDA can Levy for the HRA, that the HRA could not levy anything as the funds would have to be used on repairs or housing, which are covered in the rents received at Parkview Villa and that this is the maximum amount the City can levy. MOTION by Williams, second by Wyckoff to waive the reading of Resolution 2003-12, there being an ample amount of copies available to the public. All ayes. Motion Carried. MOTION by Wyckoff, second by Kelzenberg, to Adopt Resolution 2003-12, a Resolution of the Columbia Heights EDA Adopting the 2004 Budget of $222, 648 and a Levy of $84965 and recommending this budget and levy to the City Council for approval. Upon Vote: dindra- Aye, Kelzenberg- Aye, Williams- Aye, WyckoJf- Aye, Ericson- Aye, Nawrocki- Nay. Motion Carried. Econorrfic Development Authority Meeting Minutes August 20, 2003 Page 2 of 2 MOTION by Ericson, second by Williams, to waive the reading of Resolution 2003-13, there being an ample amount of copies available to the public. All ayes. Motion Carried. MOTION by Ericson, second by Williams, to Adopt Resolution 2003-13, a Resolution of the Columbia Heights EDA Approving and levying $137,683, subject to approval by the City Council. Upon Vote: Jindra- Aye, Kelzenberg- Aye, Williams- Aye, Wyckoff- Aye, Ericson- Aye, Nawrocki- Nay. Motion Carried. ADMINISTRATIVE REPORTS 40th & University Avenue Schumacher passed out a Preliminary Development Proforrna and stated Paul Reinke of the Haugland Company met with staff to negotiate the development proforma. The proposed "Heights Shops" will have project rents approximately $14.50/net rentable square feet, based building costs of $80/square foot and a tenant improvement allowance of $15. O0/square foot. The land cost is estimated at $50,000 less the demolition cost. The Preliminary Development Proforma contains $58,500 in land costs; $779,500 in building costs; $207,700 in development costs; $24,200 in contingency costs;for an estimated total development cost of $1,069,900. If the EDA supports these parameters, Haugland Company will pursue Pre-Lease Agreements before entering into a final development. The owner of 322 40th Avenue (MGS) has agreed to have the Anoka County Assessor evaluate his property in order to obtain a more viable market value. Nawrocla' asked what the appraisal amount was and would the City sell the property for the same amount invested in it. Schumacher stated the five properties were appraised in excess of $1.5 million, the City would sell the properties for less than the Estimated Market Value as this project was totally funded with CDBG dollars. Ericson requested staff review the proforma. Kmart Redevelopment Streetar passed out the Project Summary books prepared by DSU and Ehlers for review. He invited Boardmembers to attend a joint worksession in the City Council Chambers on September 4th at 7p.m. for the City Council, EDA, Planning Commission and Kmart Advisory Group regarding the redevelopment site. Streetar requested boardmembers read over the rest of the Administrative Report included in the packet and contact staff with any questions or concerns. ADJOURNMENT Meeting was adjourned at 10:10 p.m. Respectfully submitted, Chery Bakken Community Development Secretary H:~EDAm/nutes2003\8-20-2003 P= Present A= Absent X= Mtg.Cancelled or rescheduled 2003 EDA ATTENDANCE TOTALS !Jan.28 Feb. 19 Mar. 18 Apr. 15 May.20 June.17 Jul. 15 Aug.19 Aug.20 Sept. 16 Oct.21 Nov.18 Dec. 16 A P Jindra, Patricia P P P X P P P X P 7 Ericson, Tammera P P P X P P P X P 7 Kelzenber~hBruce P P P X P P P X P 7 Murzyn, Don Jr. P P P X P P P X A I 6 Nawrocki, Bruce P P P X P P P X P 7 Wil!iams, Bobby P A P X P P P X P I 6 Wyckoff, Julienne P P P X P P P X P 7 H:~003EDA Misc,2003 EDA Attendance COLUMBIA HEIGHTS PUBLIC LIBRARY BOARD OF TRUSTEES MINUTES September 2, 2003 The meeting was called to order by Chair, Barbara Miller at 7:05 p.m. Those members present were Barbara Miller, Nancy Hoium, Patricia Sowada, Julienne Wyckoff, Catherine Vesley, and Becky Loader. Board member, David Holmgren, was not in attendance. It was moved, seconded, and passed to approve the minutes of the August 5, 2003, Board meeting as mailed. Bill list dated 9/8/03 was reviewed. It was moved, seconded, and passed that they be paid. Catherine Vesleyjoined the meeting at 7:10 p.m. The accounting was reviewed. Old Business: 1. Update on the Children's Intemet Protection Act (CIPA) was presented. The Anoka County Library Board is discussing this same issue at their meetings. The latest update is that the filtering software must have the capability of being "shut off" if so requested by a patron or staff member 18 years of age or older. The County is exploring various filtering products, and they are looking into the compatibility with a new circulation system. Plans for the open house scheduled for December 3, 2003, at the Library were discussed. This date is the 75th "birthday" of the Library. Rather than a formal open house, ideas were discussed for a birthday celebration to be held from noon to 6:00 p.m. that day. Several ideas were introduced. The plans that were finalized tonight include flowers provided by Catherine Vesley and Patricia Sowada...~he Board would like a birthday cake, perhaps some type of shaped cake for display and sheet cakes to be served to the public. They also discussed a guest book, memory book, music of some type, the tape of the history of the library being shown, a slide show presentation, give away items, and a prize drawing of some sort. The event will be discussed again at future meetings. 3. The 2004 proposed Library budget was reviewed. No changes were made by the City Manager to the document. Possible questions the City Council might pose were discussed. The Library Board will meet with the City Council on Monday, September 29th at 7:00 p.m. at the Library to discuss the proposed budget. It was also decided to hold the regular Library Board Meeting for October on September 29th at 6:30 p.m. The Board would like to simplify the budget presentation as much as possible. The letter sent to the City Council concerning David Holmgren's absence from meetings and his seat on the Board was reviewed. Several people have expressed an interest in applying for the position. The guideline for appointment to Board and Commission document provided by the City Council was reviewed. 6. The figures from the certified general city aid calculation and market value credit reduction estimates document were reviewed. A report on staff day was provided. The training provided that day fulfilled required training for City staff on employee right to know and safety issues. Each employee who attended also submitted a report that is included in the Board notebooks. A service call on the 3M security system was necessary in order to "tune-up" the sensors. The technician also suggested moving the planters that were located near the system. The wire in the artificial plants could be interfering with the signal. New Business: 1. Report on the part-time staffing for fall schedule was presented. The part-time page schedule will be one person short this fall. The Library Clerk position was discussed. 2. The server that runs the Automated Circulation System (ACS) failed on 8/20. Aleksandr provided a replacement hard drive and A1 Rautio from the County installed it on 8/21. Al was able to make the circulation terminals available during the change over. 3. The Annual Report from Metronet was provided for the Board to review. 4. The contract on the departmental copier will expire on 9/4/03. Two other City Departments are also looking at copiers. The possibility of negotiating a combined purchase is being explored. 5. Staring School bookmarks from the Children's Department were distributed to the Board. 6. The grant received by the Fire Department for a new ladder truck was discussed. There being no further business the meeting was adjourned at 8:30 p.m. Respectfully submitted, Je~nine M. Schmidt Secretary to the Library Board of Trustees. 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. COLUMBIA HEIGHTS PUBLIC LIBRARY BOARD OF TRUSTEES MINUTES September 2, 2003 The meeting was called to order by Chair, Barbara Miller at 7:05 p.m. Those members present were Barbara Miller, Nancy Hoium, Patricia Sowada, Julienne Wyckoff, Catherine Vesley, and Becky Loader. Board member, David Holmgren, was not in attendance. It was moved, seconded, and passed to approve the minutes of the August 5, 2003, Board meeting as mailed. Bill list dated 9/8/03 was reviewed. It was moved, seconded, and passed that they be paid. Catherine Vesley joined the meeting at 7:10 p.m. The accounting was reviewed. Old Business: 1. Update on the Children's Internet Protection Act (CIPA) was presented. The Anoka County Library Board is discussing this same issue at their meetings. The latest update is that the filtering software must have the capability of being "shut off' if so requested by a patron or staff member 18 years of age or older. The County is exploring various filtering products, and they are looking into the compatibility with a new circulation system. Plans for the open house scheduled for December 3, 2003, at the Library were discussed. This date is the 75th "birthday" of the Library. Rather than a formal open house, ideas were discussed for a birthday celebration to be held from noon to 6:00 p.m. that day. Several ideas were introduced. The plans that were finalized tonight include flowers provided by Catherine Vesley and Patricia Sowada.` The Board would like a birthday cake, perhaps some type of shaped cake for display and sheet cakes to be served to the public. They also discussed a guest book, memory book, music of some type, the tape of the history of the library being shown, a slide show presentation, give away items, and a prize drawing of some sort. The event will be discussed again at future meetings. 3. The 2004 proposed Library budget was reviewed. No changes were made by the City Manager to the document. Possible questions the City Council might pose were discussed. The Library Board will meet with the City Council on Monday, September 29th at 7:00 p.m. at the Libra~' to discuss the proposed budget. It was also decided to hold the regular Library Board Meeting for October on September 29th at 6:30 p.m. The Board would like to simpli~ the budget presentation as much as possible. The letter sent to the City Council concerning David Holmgren's absence from meetings and his seat on the Board was reviewed. Several people have expressed an interest in applying for the position. The guideline for appointment to Board and Commission document provided by the City Council was reviewed. 6. The figures from the certified general city aid calculation and market value credit reduction estimates document were reviewed. A report on staffday was provided. The training provided that day fulfilled required training for City staffon employee fight to know and safety issues. Each employee who attended also submitted a report that is included in the Board notebooks. A service call on the 3M security system was necessary in order to "tune-up" the sensors. The technician also suggested moving the planters that were located near the system. The wire in the artificial plants could be interfering with the signal. New Business: 1. Report on the part-time staffing for fall schedule was presented. The part-time page schedule will be one person short this fall. The Library Clerk position was discussed. 2. The server that runs the Automated Circulation System (ACS) failed on 8/20. Aleksandr provided a replacement hard drive and Al Rautio from the County installed it on 8/21. Al was able to make the circulation terminals available during the change over. 3. The Annual Report from Metronet was provided for the Board to review. 4. The contract on the departmental copier will expire on 9/4/03'. Two other City Departments are also looking at copiers. The possibility of negotiating a combined purchase is being explored. 5. Staring School bookmarks from the Children's Department were distributed to the Board. 6. The grant received by the Fire Department for a new ladder truck was discussed. There being no further business the meeting was adjourned at 8:30 p.m. Respectfully submitted, Je/anine M. Schmidt Secretary to the Library Board of Trustees. The Ci.ty 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. OFFICIAL PROCEEDINGS COLUMBIA HEIGHTS HUMAN SERVICES COMMISSION MINUTES SEPTEMBER 10, 2003 THESE M NUTES BOT. BEE. N APPROVED, Call to Order/Roll Call Present: Sean Clerkin, Barb Karol, Sarah Kogut, and Linda Magee, Assistant to the City Manager Excused Absence: Julienne Wyckoff, Council Liaison Unexcused Absence: Jocelyn Hall, Terry Lee Hoppenrath, and Mohamed Hassan Osman Appoint Recording Secretary for the Meeting Clerkin agreed to be Recording Secretary. Approval of Minutes from May 14, 2003 Commission Meeting Motion by Karol, second by Clerldn to approve the minutes from the May 14, 2003 Commission meeting. All ayes. Motion carried. Old Business a. Election of Chairperson Sarah Kogut was unanimously elected Chairperson of the Commission b. Windsock Program - tabled c. Other Old Business Comments were made by members present that the Humanitarian of the Year reception went very well, and was enjoyed by the recipient and those in attendance. New Business a. Future · Activities of the Commission Recruit new members (currently there are three openings) League of Minnesota Human Rights Commission's (LMHRC's) Sixth Statewide Essay Contest - Magee distributed copies of packets of material received on this from the LMHRC Education Chair for review. Taste of Heights Humanitarian of the Year Make a Difference Day- Magee mentioned that Rising to New Heights is encouraging residents (individuals and groups) to participate in this. Make a Difference Day is in October. Flyers are available at City Hall. Magee will send flyers to those present. This is something the Human Service Commission members may want to participate in, if not this year, maybe next year. bo This item (Future Activities of the Commission) will be placed on the next agenda for further discussion. Other New Business The next meeting is scheduled for Wednesday, November 12, 2003 at 6:30 p.m. Adjournment Motion by Karol, second by Kogut, to adjourn at 7:15 p.m. All ayes. Motion carded. Sean Clerkin Recording Secretary CITY COUNCIL LETTER Meeting of: September 22, 2003 AGENDA SECTION: CONSENT ORIGINATING DEPARTMENT: CITY MA/qAGER'S -A NO: 5 - % CITY NAGER',S APPROVAL /, , WAGE RATE FOR YOUTH FOOTBALL OFFICIALS DATE: 9-15-03 /f DATE: NO: At the City Council meeting of December 16, 2002, the Council adopted a resolution establishing wage rates for seasonal/temporary recreation positions for 2003. Based on the recommendation of the Recreation Director, not all wages were adjusted from 2002. Recently, we have encountered difficulties in obtaining qualified officials for youth football. In a survey conducted of area youth football leagues to compare the officials' pay compared to that of Columbia Heights, we found the following: Lino Lakes Minnetonka Osseo Maple Grove Brooklyn Park Brooklyn Center Roseville Robbinsdale New Hope Crystal SW Metro Officials Ass'n $35.00 $40.00 $33 00 $33 00 $33 00 $33 00 $25 00 $24.00-$26 00 $24.00-$26 00 $24.00-$26 00 $35.00-$45 00 The Recreation Department feels that in order to obtain and retain quality officials for our Youth Football games, we need to increase the per game rate from $20.00 to $25.00. RECOMMENDED MOTION: Move to waive the reading of the resolution, there being ample copies available to the public. RECOMMENDED MOTION: Move to adopt Resolution 2003-38, adopting revised wage rate for youth football officials, effective September 13, 2003. COUNCIL ACTION: RESOLUTION 2003-38 ADOPTING REVISED WAGE FOR YOUTH FOOTBALL OFFICIALS WHEREAS, the City of Columbia Heights adopted a Wage Compensation Program for Non-Unionized City Employees effective January 1, 1980 (Resolution 8-47), which indicated that on an annual basis, changes will be adopted in wage ranges, based upon reliable survey data. NOW, THEREFORE, BE IT RESOLVED THAT the City of Columbia Heights adopts a revised wage for seasonal/temporary Recreation positions, specifically youth football officials, as indicated on Schedule III, which is attached and is on file in the office of the City Manager; and BE IT FURTHER RESOLVED that such revised schedule be effective September 13, 2003. Passed this 22na day of September, 2003. Offered by: Seconded by: Roll Call: Julienne Wyckoff, Mayor Attest: Patricia Muscovitz, Deputy City Clerk 2003 SCHEDULE III RECREATION Movement through the wage schedule is contingent upon satisfactory performance as judged by the City. POSITION TITLE ENTRY Summer Playground Asst. $7.40 Facility Supervisor $8.05 Scorekeeper (per game) $8.05 Baseball Umpire - House League (Youth) $15.00/game - Traveling (Youth) $25.00/game Soccer Officials (Youth) $14.00/game 6 MONTHS 1 YEAR 2 YEARS 3 YEARS 4 YEARS $7.57 $7.74 $7.99 $8.25 $ 8.50 $8.23 $8.42 $8.70 $8.97 $9.25 $8.23 $8.42 $8.70 $8.97 $9.25 Softball Umpires (Youth) Youth Slow Pitch Youth Fast Pitch Basketball Officials (Youth) House League Traveling $13.00/game $25.00/game $15.00/game $20.00/game Football Officials (Youth) $25.00/game* Adult Athletics Umpire/Officials (Softball, Basketball, Volleyball, and Football) Performing Arts Instructor (Gymnastics, Cheerleading, and Ballet) $16.00 $17.75 $19.50 $21.25 $23.00 $25.00 $8.10 $9.45 $10.80 $12.15 $13.50 $15.00 After School Instructor $7.00 $9.60 $12.20 $14.80 $17.40 $20.00 Summer Playground Supervisor $8.10 $9.45 $10.80 $12.15 $13.50 $15.00 Program Instructor (Market rate - contingent upon approval of the Recreation Director and the Assistant to the City Manager.) *$20.00/game effective 1-1-03 $25.00/game effective 9-13-03 CITY COUNCIL LETTER Meeting of: 9/22/03 AGENDA SECTION: CONSENT AGENDA ITEM: ESTABLISHING AMOUNT OF ASSESSMENTS TO BE LEVIED ORIGINATING DEPARTMENT: PUBLIC WORKS BY: K. Hansen~j DATE: 9/17/03~.~- ICITY MANAGER DATE: Consistent with Minnesota Statutes and the City Code, the City Council annually adopts a resolution prior to the Special Assessment Public Hearing regarding costs to be borne by the City for public improvement projects. The resolution establishes the amount of the City share and the amount of the special assessments for projects to be levied against benefiting properties in the City of Columbia Heights. The purpose of the resolution is to advise the general public of costs to be incurred by the City versus costs to be incurred by benefiting property owners. Adoption of the resolution is done annually and staff considers this a routine matter in order to comply with State Statutes and the City Code. Staff recommends adoption of the attached Resolution. RECOMMENDED MOTION: Move to waive the reading of Resolution #2003-39, there being ample copies available for the public. RECOMMENDED MOTION: Move to adopt Resolution #2003-39 being a Resolution establishing amount of City share and amount of Special Assessments on Projects to be levied. I~.'jb Attachment: Resolution 2003-39 COUNCIL ACTION: RESOLUTION NO. 2003-39 BEING A RESOLUTION ESTABLISHING AMOUNT OF CITY SHARE AND AMOUNT OF SPECIAL ASESSMENTS ON PROJECTS TO BE LEVIED WHEREAS, the City Council of the City of Columbia Heights by motion on the 25th day of August, 2003, ordered a special assessment hearing to levy the cost of improvements and; WHEREAS, the following projects will be specially assessed in October, 2003, and a portion of the costs may be borne by the City, NOW THEREFORE BE IT RESOLVED pursuant to Minnesota Statutes 429.061, and City Code 4.103, that the [~reakdown is as follows: PROJECT ESTIMATED ASSESSED ESTIMATED CITY PORTION TOTAL PORTION Zone 6B Street Construction Project $300,500 $502,600 $803,100 0302 Zone 6B - General, Utility Funds $209,300 $ - 0 - $209,300 Dated this 22nd day of September, 2003 Offered by: Seconded by: Roll Call: CITY OF COLUMBIA HEIGHTS By: Mayor, Julieune Wyckoff Patricia Muscovitz, Deputy City Clerk CITY COUNCIL LETTER Meeting of September 22, 2003 AGENDA SECTION: Consent ORIGINATING DEPARTMENT CITY MANAGER NO. ,~' ~' ~ POLICE__ t' APPROVAJ,~7~,~'/~_._ ITEM: Extension ofpolice andmedical service BY: Thomas M. John'S9 BY: /~'~/y~' NO. contract with the City of Hilltop DATE September 17, g0~02~~ ' DATE: BACKGROUND On September 16, 2003, the City Manager, Police Chief, and Assistant Fire Chief met with Ruth Nelsen, Hilltop City Clerk, and Carl Newquist, Hilltop City Attorney, to follow up on a previous presentation of a proposal for full police and fire services to the City of Hilltop. A copy of the proposal is attached to the Council letter. At the conclusion of the meeting on S, desire to continue the negotiations, but~ They requested this because their cur December 31, 2003. Ruth proposes thw 4 (an additional three months) at a rate of ~( 0 This represents a 3.5% increase to the .J~ l Carl Newquist expressed a ;hrough December 31, 2003. :e Department goes through t through December 31, 2003, $170 per medical service call. ANALYSIS/CONCLUSION It is the recommendation of the City Manager, the Fire Chief, and the Police Chief that we extend the police and fire medical services contract with the City of Hilltop through December 31, 2003, at the rate of $37,250 for police services and a medical service rate of $170 per call. We recommend this extension in hopes of agreeing to a full police and fire contract for several years to come. RECOMMENDED MOTION: Move to approve an extension of the police and fire (medical) service contract with the City of Hilltop through December 31, 2003, at a rate of $37,250 for police service and a rate of $170 per call for medical calls. TMJ:mld 03-130 Attachment COUNCIL ACTION: TO: FROM: SLqBJECT: DATE: COLUMBIA HEIGHTS POLICE DEPARTMENT Walt Fehst, City Manager Charlie Thompson, Fire Chief" Thomas .'vi. Johnson, Chief of Police o~Yx,1 Rene~val of Police:Medical Contract with City of Hilltop January. 21, 2003 walt and Charlie, I am suggesting that for the Police Nd Fire contract v,'e submit the following numbers on :he Poi[ce side of the contract: 2003 base salaD' per union contract Longevity per union contract Holiday pa7 Deterred compensation FiCA Workers comp. (7.48,. 100) PER. A 12% of~oss ,.,,'age Health insurance ~553 5,.'month Training allowance Vehicle related expense TOTAL Cost tbr records (data emu') 9.5% of total Part I crimes entered S.5°,/o of total Parr ri crimes entered GRAND TOTAL 553,796.00/year 5 2,S20.00/year 5 2,x83.00/year $ 300.')0'year 5 886.66/year 5 5,~82.84/year $ 7.337.88/year 5 6,-;. 20.©0/year 793.,)0. Fear 550.00/year 5 80.$69.38 x 2 (officers) 5161,738.76 S 6.410.00 S168,!48.76 It is my feeling that the increase from year to vear should be equal to the increase in salary and cost to the City for benefits of the two officers and the one Records Technician; and that the above tbrmula will be used each year to determine the cost of'police services for the City of Hilltop for the tb llowing year. - . TMJ:mld 03-014 City of Columbia Heights Calculations for expenses for Hilltop Contract Prepared 08/26/03 Computation Factors Cost Per Budget capita / crime Operating 2,530,212.00 Capital 57,478.00 DARE 5,375.00 Animal Control 15,470.00 Total 2,587,690.00 Total CH / Hilltop Population 19,493.00 132.75 Total CH / Hilltop Crimes 3,244.00 797.68 Cost Allocation Average Actual Cost allocation 3ost allocation between Crimes per Number of by number of by number of crimes and Population 100,000 Crimes Crimes Population population 3,ost Per 797.68 132.75 3olumbia Heights 18,719.00 15,743.00 2,947.00 2,350,777.57 2,484,941.73 Hilltop 774.00 38,372.00 297.00 Total 19,493.00 54,115.00 3,244.00 2,587,690.001 2,587,690.001 2003 Hilltop Contract The 2003 proposed charge for emergency medical service to Hilltop will be $400.00 per call. This reflects an increase of $230.00 per call over last year's charge, which was $170.00 per call. During the past seven years, the medical contract has gone up at a rate of $2.00 per call per year, which does not even maintain the year's cost of living rate. The 2003 annual operating budget for the Columbia Heights Fire Department is $916,572.00. The Fire Department answered 2,127 calls during 2002, which reflects a $428.90 per call cost to the city. To simplify the increase to the Hilltop contract, we will bid the project at $400.00 per call. The Fire Department is also proposing that we bid on the current Fire Contract for the City of Hilltop. We are offering to protect the City of Hilltop on a per-mn basis of $400.00 plus crew salary. We will not require a stand-by fee. We will charge only when we are dispatched to the City of Hilltop or one of the schools in Hilltop. We will also offer arson investigation services for the City of Hilltop. This fee will be $40.00 per hour plus any related expenses. If the fee approaches a certain limit ($500.00), the City of Columbia Heights will notify in advance that estimated arson services may approach this limit per investigation. If any mutual aid is given to the City of Hilltop through the Columbia Heights Fire Department, the City of Hilltop will also compensate said mutual aid companies at the rate of $400.00 per call per hour. This is currently how the City of Columbia Heights is billing the City of Fridley when requested or when we are dispatched to Hilltop for any related fire calls. Two times per year, during the months of May and October, Columbia Heights shall conduct inspections of industrial, commercial and multiple dwelling properties in Hilltop and forward written reports o£these inspections to the City of Hilltop. As compensation. for inspections services, the City of Hilltop shall pay the City of Columbia Heights an annual fee of One Thousand and no/100 Dollars ($1,000.00) to be billed on a semi-annual basis of two (2) installments of Five Hundred and no/100 Dollars ($500.00) each. Feb03 G:/FireSup/Corresp Fridley Fire Coverage Standby Impeetiom Number of Fee Per Total Call .Annual Year Fh'e Fee C~I~ Call Fee Total 2002 $ 23,.920 $ 832 16 $ 270 [' $ 4,320 $ 29,072 2001 23,000 .. 800 18 260 4,680 28,480 2ooo 23,000 soo ]] 26o 2,8~0 Columbia Heights Proposal for Fire Coverage Columbia Heights Proposal for Medical Coverage Nmt'~'of co~ p~ Year Medicals Medieai Total 2003 ,//X) $ 400 5,'~. c~. 2002 78 170 $ f3,260 2001 114 168 19,152. JCi.~T AGRE~--~'--.NT AI~D CC~T. RACT AND ~-.~ CiTY OF HILLTOP FOR POLICE A~ND ~RG~--~CY. ~EDiCA~ SERVICES This Agreement, made and entered into by and between :he Cd:'/ cf Cclur~ia Heights, hereinafter referred to as "Columbia Heights" and 5he C!~v cf Hi!!tcp, hereinafter referred to as "Hi!!~cp"; ,~HEELAS, ~__um-' ;: w=i:hzs- _cresenz!v. has a Pc!ice __~_~=, - ..... :.._, SECTION I -'-=- '_s=urcza H_~hz- shall Furnish crc]e_sicn 5~ 5he same ex~en5 as ~- afforded 5c Co=umc~a Helchzs - S_m_,a__; Cc shall furnish emergency SECTION Ii ' = ~-~e_-_s a.,d answer all ~r. a5 ,~c_,-r-~_= Heighss shall carrel ,_h_ ~- = That Cc!urbia..-_g.,~ow=~ ~-- pcllce officers shall issue traffic _.._ '' . _ _ ~ = same crdlnance vio!aZion ~:c~eUs and maln5ain a ~e~c~d cf ~ . Co .... ~_a Heights, excep~ similar to the records keut ~v reccrcs ~ ......... --~-~ shall be made available cf=iciais a~ any time and upon terminaticn of this Agreement shall ~e delivered ~c w~-~- Avai!abi!~- ....... ~. _~y of records pursuant tc ;his ~-~ ~ sba!; be subject to the !imitations of the Government S .... C.. - SECTION IV That Hilltop shall at the time of the authorization tbr the execution of this Agreement adopt a resolution empowering and author/zing the police officers of Columbia ne~_nts to have the power of arrest in Hilltoo and deliver to Columbia Heights a certified copy of said resolution. If Columbia Heights incurs any expense as a result of purchasing Iiabitit7 insurance to cover its furnishing of emergency' medical sen'ices to Hithop, the City. of Hilltop will reimburse the Citw of Columbia Heights for the cost of such additional insurance ~ O", ,.. ~_e. SECTION V --r,~.,, c',-,i.,....,k;,, w.:.;o-'.-,~ ~-'.,,,U ~zrr,..ish 'o ~v,.-, ;-r;il.,-,p ("ir-,. (',-,u,',,-';t a month[,.' ."e:e~ i.., .... n.,~to. Council. v.'nt:ng. Sa~a ,,.~.on shall be in such reasonable detail as requested bv said '" ,' SECTION VI That as and for comeensation.. . ml,~o:~, shall ?ay :o Columbia Heights~,~. ..... ~,,,.c,., ~ atrol :bllowing amounts coven,-, f :ne periods corresponding thereto as describe below. :o wit: Asdl I, 20{)0, through .Marzh 31,20{31 A~ril l, 2001, through March x 1, -00_ 5134,000.00 5~ '~9 000.00 $i:4,000.00 That as and for compensation. Hilltop shall pay to Columbia Heights :'or emergency medical services the following amounts for each call covefin_ the periods co~esnc..ndin,a "~, ,e.'-~',..o as described below.. :o '..,,'it: April 1, 2000, through March 31,2001 April 1,2001, through March 3 i, 2002 April ~_, 2002., ~b.,-~,, ~h, ..__:.. Y,t_arch 31 ,2003 SI66.00 S168.00 5!70.00 That the contract is for a term of three years beginning April 1, 2000, and ending .March 31,2003 Either ~arty ma,,' terminate this A=r~,.ment effective the anniversary date of March 31 upon five months' written notice to the other party. That Columbia Heights may terminate this Agreement upon forty-five (45) day's' written notice when any semi-annual payment required by Hilltop has not been received by' Columbia Heights during normal business hours thirty.' (.30) calendar days after July 31 and December 31. Payments made thirty. (30) days after July 31 and December 3 l, but prior to the forq,.'-five (45) days' notice of c~,.~ substansia~ cr ma~er~al ckan~es in ccndi-lcns ~ cur whack are bevcnd zke ccn~rcl cf Cclum~ia Heights suck ~kaz ~erfc---r. ance keccmes ~ ~ ~: _m~css ..... ~ken ~ke Aqreemen~ can be Zerm,~na~ed upcn =ire (5) mcn~hs' wrltzen nczice ~o Hil!'~oD. SECTION ViIi Thai Hi!iZcu_ shall .zav. ~=.._ ccntracz ccmpens-zlcn= as fcllcws: October ~ 20~.~:~ April !, 2001: Cctcber ~, 2C. 01: A~r~ ~ 2002: Ccmcber _,=~ $~7 000.00 $~9 500.30 ~'= 500 O0 ~2 OOO.:~O $72 OCO.C$ -~',.-~== u=;~=hZS =C~ S~Ch se~;lces.' -=__ sal~' ' pa'~,er. Zs =-=- .... r. ace' wl:hln fcruy-fi,ze (45} ~ays cf de!ive%; cf the invoice, uhe amcun: SECTION iX _..=,_ Hil!:~ shall ~av -~= ~= ~= ~ ~_ ~ - = 5kelr pc!ice cr emer~enc*£ se~zice duu~es for HLLLUzc. =:__zzp shall render ="-~ .... = ......... -' .... ==z." .... utc-- ~ O a szazemenz from :£rlur~la Hezghus_~_=¢- sal.i ccur: aooearance ' ' for ' . . ,c. made w±thin fcr:v-fLve (45) days o: c___~_.z cf :he ±nvc~ce, uhe amcunu due shall be subjecu _aid. SECTION ?hau Hi!!zop shall pay Cczum~'_a HeighZs the sum cf $300.00 _~_=~ ==~__,h lic~or, or beer license inves~ica~icn~ recuesned, by Hi!!~-c~. ~=~'~ red by law Or - --_=- . · 3 SECTiCN Xi h_i~ ~ i: harm. less from al~ claims, acuicns, sui:s, pruceedings, ccsZs, exuenses,, damaces_ , and !iabiliuies arislnc, c~.,,- cf sec,,ices and emergency se~zices fu_--n, ished by Cc!umb!a Heigh:s u~-~ However, such indemnification liability cf =~ ~ ~tc~ Cciumbia Helgh~s shall specifically exclude workers' compensation c!alms, motor vehicle no-faul~ c!atms (PIP), hea!~h and me__c__, ~ care ccszs fo-_ Columbia Eelchus_ emp!cyees, and claims arislnc_ .~= child mc!es:a:icn crc.._.= a~use. '~:cc has cb~=;-=~ ;'-'= _ from iJ4CiT '_o cc"er ..... _ .......... t'~:-~= ccverace ccr.:raczua! ~; ~: ~ -v. Hillz~u' s w= igkns shall be --..,- .--~ ~-~-=~ :o 'h_~ = ccverace_ aff crded ?;. -'--~.._=- insurance pc__~y, excep5 zna5 -h_ Si0,0C0.00 deducalb!e prcvlslcn in'emnlfvc ~ , Columbia u~;g..~=~--, u~-~ _=ha*!. _ name Cclu~:a He:uhus_ c=~-;fica:e hc!der cn said insurance ~c!icv., _n~= ~ ~he :clisv. bear a Drcvlsicr. -~-- -=~ ¢ zha~ insurer -:lum~:a,~ Heichzs_ nc: less -~--...=.. :hira*z. ..'30~. days', wriz:en nczlce ~z_ _r.,.ina-~ ~ i~,.~-, cance!ia-~ i~n,~, ~_ an,; chance_ ~lCliC'f. ~= canceiiazl n prcvzsi_n may n - .... c ~ _ c~ ~==- a /isclazm_r ~ -~ cb!ica~icn c= -~= ixs"_~_ ~c cn!v ~nl ~,,=z ncu ccn;aln a d~sc!almer -~ ~espcns_m_,,~z=' ~-' 'sv failing '.c ;rcvlde such ncu:ce.' ~== cf insurance issued -~ ~ ~ ...... ~ cover ~h_ hereunder. ~_slum'-~a~_ ==~c ._= =hall = .... ~=- nave -~= ~ - .... insur_rs ~f :he con, fac: -~- Acreemen~ :c indemr, lf'; and hc!d harmless does nc- ccns:l:u:e a waiver ~,; _i:h__ Columbia ==;c~s cr Hil!:c~ ~= _im::azicns, cn _niabili:v .uruvided b'; Minnescua S~a:u~e-,~ = ~._haT:_r= SECTION Xii Nc~withs~anding any provision herein to :he ccn:ra_--iz, in the ~u.n_sn ~c Columbia even~ ~ha~ ,..!!Zcp fails Zo maintain and "- ~ Heighzs required policies of insurance as sa~isfac~c~; ~c Columbia Heighzs or if Hiiltcp's insurer fails to provide ~he assurances required, Columbia Heighzs may a5 any Zime during the ~erm, of :his 4 SECTION Xiii Co!um~ia Heighus and Hi!i~cp agree to resc!ve all disputes amcnc them arisinc from this Agreement by arbitrazicn and · ~-'-~.- the 5!me and exuense associated' . w_~n ccur.-_ .~roceedings, ~ursuant zo -h_~ = ze~s of :he Minnesota ~bitra:ion Ac:, Minnesc:a S:a:u:es Cha '-r 572 in ~ ~ ~" :=~ and, acreeinc ~o refrain :rcm suiz acalns~_ each cuber -~- '~= durazicn cf this Agreement, =-~--='!~r. es-=' ~ ~-~=~ ~ ~ =-~__= .... sv :his Agreemen~ shall be .... _..e rules c= -he Amerlcan ~.rbl-_ a_ccrli..g .~ -~ ' - ,-a .... Asscctastcn. A-r__men-_~_ == b'/. -;._ir~"= dui,;, au~hcrize.i ~ff~=~=- - ....... =-~ caused -'~e_r :his day .cf , 2CCC.. CiTY OF COLL~'M~iA HEiGFiTS A Munlci~al Ccrpcrasi~n J~m Hoers, Ci~y Au:c-~n_.-=,, Gar'y Pezerscn, Ma-ycr Rumh Neisen, Clny Clerk CITY COUNCIL LETTER Meeting of: September 22, 2003 AGENDA SECTION: ff..^./~ ORIGINATING DEPT.: CITY MANAGER NO: /'~ License Department APPROVAL ITEM: License Agenda BY: Shelley Hanson DATE: ~/~~~ NO: DATE: Sept. 17, 2003 BY: BACKGROUND/ANALYSIS Attached is the business license agenda for the September 22, 2003 City Council meeting. This agenda consists of applications for Contractor licenses for 2003. At the top of the license agenda you will nc Application. This means that the data priv certain information cannot be released to t RECOMMENDED MOTION: figned Waiver Form Accompanied aitted as required. If not submitted, Move to approve the items as listed on the business license agenda for September 22, 2003 as presented. COUNCIL ACTION: TO CITY COUNCI-[. September 22, 2003 *Signed Waiver Form Accompanied Application 2003 BUSINESS LICENSE AGENDA CONTRACTORS LICENSES BLDG *Metro General Services *Boe Plumbing *Karkela Constr. *Bm'let Bldg & Remodeling 5790 Quam Ave NE St Michael 15481 Kiowa St, Andover 3280 Gorman Ave, St L. Pk 3225 57th St SE, Delano $50.00 $50.00 $50.00 $50.00 CITY OF COLUMBIA HEIGHTS FINANCE DEPARTMENT COUNCIL MEETING OF: ~_~~-~ z:z.,z,~$ 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 JO.O"O'FID through lOO'o?/.5 in the amount of$ 6/52-~&~/5''-' . These checks have been examined and found to be legal charges against the CITY OF COLUMBIA HEIGHTS, and are hereby, recommended for payment. ACS FINANCIAL SYSTEM 09/18/2003 13:15:22 Check History CITY OF COLUMBIA HEIGHTS GL050S-V06.55 COVERPAGE GL540R * * * * C O U N C I L * * * * * * * * C O U N C I L * * * * * * * * C 0 U N C I L * * * * * * * * C 0 U N C I L * * * * Report Selection: Optional Report Title ....... 9/22/2003 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 105090 thru 105213 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 N S 6 066 10 Y Y ACS FINANCIAL SYSTEM 09/18/2003 13 Check History 9/22/2003 COUNCIL LISTING BANK VENDOR BANK CHECKING ACCOUNT ACE HARDWARE ACE SUPPLY COMPANY INC ACS ADAM' S PEST CONTROL, INC ADT AMERICAN ENGINEERING TES AMERICAN PAYROLL ASSOCIA AMER I PR I DE ANCOM COMMUNICATIONS INC ANOKA COUNTY ANOKA COUNTY LIBRARY ARCTIC GLACIER ASPEN MILLS, INC. B & M AUTO ELECTRIC CO BAKER & TAYLOR BAR/gA GUZY & STEFFEN LTD BAUER BUILT TIRE & BATTE BFI/WOODLAKE SAigITARY SE BIFF' S, INC. BITUMINOUS ROADWAYS, INC BOOK WHOLESALERS INC BP~AKE & EQUIPMENT WAREHO BRODART CAMDEN PET HOSPITAL CDW - G CEMSTONE CENTRAL IRRIGATION SUPPL CITY PAGES CLARK PRODUCTS INC COLUMBIA HEIGHTS RENTAL COLUMBIA PARK MEDICAL GR CON-NELLY INDUSTRIAL CONSTRUCTION ENGINEERING CREST VIEW CORPORATION CROWN FENCE & WIRE CSC CREDIT SERVICES DANKA DAVIES WATER EQUIPMENT C DEPARTMENT OF NATURAL RE DIAMOND VOGEL PAINTS DISCOUNT STEEL INC EARL F ANDERSEN INC EHLER & ASSOCIATE-PUBLIC EMP ESRI FIDELITY SERVICES INC FIRST-RATE CUSTOMER SERV CITY OF COLUMBIA HEIGHTS GL540R-V06.55 PAGE 1 CHECK NUMBER AMOUNT 105090 312.16 105091 241.29 105092 2,130.30 105093 66.56 105094 601.10 105095 60.00 105096 165.00 105097 27.66 105098 209.27 105099 3,240.50 105100 316.12 105101 536.16 105102 195.50 105103 86.21 105104 2,086.99 105105 13,789.33 105106 165.67 105107 105,198.04 105108 714.28 105109 106.46 105110 74.01 105111 118.41 105112 26.99 105113 1,516.00 105114 3,954.86 105115 324.14 105116 10.48 105117 450.00 105118 920.93 105119 275.10 105120 2,453.19 105121 155.20 105122 5,413.38 105123 13,150.41 105124 225.32 105125 25.00 105126 594.21 105127 118.76 105128 171.23 105129 1,779.19 105130 116.73 105131 810.31 105132 1,350.00 105133 208.36 105134 1,114.30 105135 4,822.12 105136 89.00 ACS FINANCIAL SYSTEM CITY OF COLUMBIA HEIGHTS 09/18/2003 13 Check History GL540R-V06.55 PAGE 2 9/22/2003 COUNCIL LISTING BANK VENDOR CHECK NUMBER AMOUNT BANK CHECKING ACCOUNT FLEX COMPENSATION, INC FLEXIBLE PIPE TOOL CO. FLOYD TOTAL SECURITY G & K SERVICES GALE GROUP/THE GALLES CORPORATION GENERAL BOOK COVERS GENEKAL ELECTRIC CO GENUINE PARTS/NAPA AUTO GOODIN CO. H & L MESABI HAB INC HACH COMPANY HAPPEL DBA PLANSIGHT/JER HOME DEPOT #2802 HUDSON MAPS IKON OFFICE SOLUTION INFO USA MARKETING INC INSITUFORM TECHNOLOGIES INSTRUMENTAL RESEARCH IN INTEGRATED LOSS CONTROL IPC PRINTING JOHNSTON/JANNE KENNEDY & GRAVEN KROMER COMPANY LBP MECHANICAL INC LEAGUE OF MN CITIES INS LUBE-TECH MAINTENANCE WARE HOUSE MARSHALL CONCRETE PRODUC MEDTOX LABORATORIES, INC MENARDS CASHWAY LUMBER-F METRO WELDING SUPPLY METROCALL - ATT MESSAGIN METROPOLITAN COUNCIL WAS MIDWAY FORD MINNEAPOLIS FINANCE DEPT MINNEAPOLIS OXYGEN CO. MINNEAPOLIS SAW CO. MINNESOTA CITY/CNTY MGMT MN DEPT OF ADMINISTRATIO MYERS TIRE SUPPLY COMPAN MYHRE/HELEN NEEHAN FOUNDRY CORP NORTHEASTER NSPE PRODUCT FULFILLMENT O'GARA/ANDREW 105137 152.25 105138 300.15 105139 78.00 105140 625.65 105141 68.93 105142 159.64 105143 41.50 105144 423.87 105145 223.07 105146 256.26 105147 174.09 105148 219.00 105149 124.50 105150 5,896.80 105151 667.90 105152 178.80 105153 334.88 105154 545.00 105155 15,563.00 105156 140.00 105157 306.00 105158 80.96 105159 159.99 105160 519.10 105161 59.79 105162 114.00 105163 34,618.75 105164 73.22 105165 48.57 105166 4.71 105167 130.50 105168 431.61 105169 6.92 105170 14.60 105171 62,382.67 105172 333.67 105173 109,671.00 105174 10.56 105175 23.75 105176 92.89 105177 37.00 105178 25.72 105179 184.61 105180 2,371.07 105181 289.00 105182 412.40 105183 55.00 ACS FINANCIAL SYSTEM CITY OF COLUMBIA HEIGHTS 09/18/2003 13 Check History GL540R-V06.55 PAGE 3 9/22/2003 COUNCIL LISTING BANK VENDOR CHECK NUMBER AMOUNT BANK CHECKING ACCOUNT OFFICE DEPOT PARK SUPPLY INC PARKVIEW VILLA RESIDENT PEPSI-COLA-7 UP PERFORMANCE LAWN CARE PERRY'S CENTRAL SERVICES POOLSIDE PREMIUM WATERS INC PROSOURCE TECHNOLOGIES I R R BOWKER RAPIT PRINTING - FRIDLEY REFRIGERATION SERVICES REFURNISH FURNITURE OUTL ROSANDER/MELISSA ROSEDALE CHEV SEH STAR TRIBUNE STEEL TECH INC STREICHER'S GUN'S INC/DO SUN PUBLICATION SUPERIOR FORD INC. TELEPHONE ANSWERING CENT TRANS-ALARM INC VANCE BROTHERS VERIZON WIRELESS VOSS LIGHTING WERNER ELECTRIC SUPPLY C WILSON DEVELOPMENT SERVI WW GRAINGER, INC ZAHL EQUIPMENT 105184 882.80 105185 94.40 105186 1,332.62 105187 106.00 105188 113.75 105189 87.00 105190 37.22 105191 38.88 105192 10,220.71 105193 1,327.64 105194 29.20 105195 54.50 105196 297.61 105197 320.00 105198 81.78 105199 1,098.38 105200 111.80 105201 260.93 105202 101.81 105203 615.60 105204 21,291.00 105205 122.60 105206 1,059.85 105207 436.65 105208 36.42 105209 52.93 105210 29.11 105211 933.87 105212 1,932.45 105213 40.21 452,295.30 *** ACS FINANCIAL SYSTEM CITY OF COLUMBIA HEIGHTS 09/18/2003 13 · .Check History GL540R-V06.55 PAGE 4 9/22/2003 COUNCIL LISTING BANK VENDOR REPORT TOTALS: CHECK NUMBER AMOUNT 452,295.30 RECORDS PRINTED - 000591 ACS FINAIgCIAL SYSTEM 09/18/2003 13:15:23 FUND RECAP: FUND DESCRIPTION 101 GENERAL 201 COMMUNITY DEVELOPMENT FUND 203 PARKVIEW VILLA NORTH 204 ECONOMIC DEVELOPMENT AUTH 212 STATE AID MAINTENANCE 213 PARKVIEW VILLA SOUTH 235 RENTAL HOUSING 240 LIBRARY 276 LOCAL LAW ENFORCE BLK GRANT 402 STATE AID CONSTRUCTION 405 DOWNTOWN MAINTENANCE 412 CAPITAL IMPROVEMENT PARKS 415 CAPITAL IMPROVEMENT - PIR 420 CAP IMPROVEMENT-DEVELOPMENT 431 CAP EQUIP REPLACE-GENERAL 439 FIRE CAPITAL EQUIPMENT 601 WATER UTILITY 602 SEWER UTILITY 603 REFUSE FUND 604 STORM SEWER UTILITY 609 LIQUOR 652 SEWER CONSTRUCTION FUND 653 STORM SEWER CONSTRUCT. FUND 701 CENTRAL GARAGE 883 CONTRIBUTED PROJECTS-GEN 884 INSURANCE 885 ESCROW 887 FLEX BENEFIT TRUST FUND TOTAL ALL FUNDS Check History DISBURSEMENTS 28,537.01 127.68 12,462.86 332.57 116.73 6,169.21 154.98 6,249.66 4,611.35 60.00 2,453.19 714.19 5,825.78 13,585.52 21,291.00 1,894.50 112,125.55 65,893.73 107,222.77 83.99 1,656.91 15,563.00 933.87 3,241.45 320.00 34,618.75 5,896.80 152.25 452,295.30 CITY OF COLUMBIA HEIGHTS GL060S-V06.55 RECAPPAGE GL540R BANK RECAP: BANK NAME ................................ BANK CHECKING ACCOUNT TOTAL ALL BANKS DISBURSEMENTS 452,295.30 452,295.30 CITY COUNCIL LETTER Meeting of September 22, 2003 AGENDA ORIGINATING DEPARTMENT: CITY MANAGER SECTION: [,~., ]~ Fire APPROVAL NO: Rental License Revocation DATE: September 19, 2003 DATE: NO: The matter of the revocation of the license to operate a rental unit(s) within the City of Columbia Heights against Mohsen Dessouki regarding rental property at 46104612 Fillmore 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 22, 2003. The public hearing on this property may now be closed in that the owner has scheduled an annual inspection. RECOMMENDED MOTION: Move to Close the Public Heating Regarding the Revocation or Suspension of the Rental License Held by Mohsen Dessonki Regarding Rental Property at 4610-4612 Fillmore Street N.E. in that the Property complies with the Residential Maintenance Code. COUNCIL ACTION: COLUMBIA HEIGHTS CITY COUNCIL LETTER Meeting of: September 22, 2003 AGENDA SECTION: Public Hearing ORIGINATING DEPART'MENT~ CITY NO: {~ g Community Development MANAGER'S APPROVAL ITEM: Adopt Resolution 2003-40, Adopting BY: Robert Streetar BY: a Modification to the Downtown CBD DATE: September 17, 2003 j~////~ Revitalization Plan for the CBD Redevelopment Project and establishing the Kmart/Central Avenue TIF District and Adopting a TIF Plan. BACKGROUND: As part of Tax Increment Financing Plan, the City must hold a public heating to provide citizens the opportunity to comment on the plan. Please find attached the Tax Increment Financing Plan for the establishment of the Kmart/Central Avenue Tax Increment Financing District. The plan describes the purpose for, and the amount of, the tax increment assistance. As required the Plan was reviewed by: · Ehlers and Associates, the City's financial council. · Kennedy and Graven, the City's legal council. · The Planning Commission on September 2, 2003 and found to comply with the City's Comprehensive Plan. The County of Anoka on September 9, 2003. · The Columbia Heights School District. · The Economic Development Authority on September 16, 2003 and approved. Both the City's financial and legal Council will be present mtd available for questions at the public heating on the September 22, 2003. RECOMMENDATION: Staff recommends the City Council approve the resolution. RECOMMENDED MOTION: Move to waive the reading of Resolution 2003-40, there being ample copies available to the public. RECOMMENDATION MOTION: Move to adopt resolution, 2003-40, a Resolution Adopting a Modification to the Downtown Central Business District (CBD) Revitalization Plan for the CBD Redevelopment Project and establishing the Kmart/Central Avenue Tax Increment Financing District therein and Adopting a Tax Increment Financing Plan therfor. Attachments COUNCIL ACTION: CITY OF COLUMBIA HEIGHTS COUNTY OF ANOKA STATE OF MINNESOTA RESOLUTION NO. 2003-40 RESOLUTION ADOPTING A MODIFICATION TO THE DOWNTOWN CENTRAL BUSINESS DISTRICT (CBD) REVITALIZATION PLAN FOR THE CBD REDEVELOPMENT PROJECT AND ESTABLISHING THE K- MART/CENTRAL AVENUE TAX INCREMENT FINANCING DISTRICT THEREIN AND ADOPTING A TAX INCREMENT FINANCING PLAN THEREFOR. BE IT RESOLVED by the City Council (the "Council") of the City of Columbia Heights, Minnesota (the "City"), as follows: Section 1. Recitals. 1.01. The Board of Commissioners (the "Board") of the Columbia Heights Economic Development Authority (the "EDA") has heretofore established the CBD Redevelopment Project and adopted the Downtown CBD Revitalization Plan therefor. It has been proposed by the EDA and the City that the City adopt a Modification to the Downtown CBD Revitalization Plan for the CBD Redevelopment Project (the "Revitalization Plan Modification") and establish the K-Mart/Central Avenue Tax Increment Financing District (the "District") therein and adopt a Tax Increment Financing Plan (the "TIF Plan") therefor (the Revitalization Plan Modification and the TI1~ Plan are referred to collectively herein as the "Plans"), all pursuant to and in conformity with applicable law, including Minnesota Statutes, Sections 469.090 to 469.1082, Sections 469.001 to 469.047, and Sections 469.174 to 469.1799, all inclusive, as amended, (the "Act") all as reflected in the Plans, and presented for the Council's consideration. 1.02. The City has investigated the facts relating to the Plans and has caused the Plans to be prepared. 1.03. The City has performed all actions required by law to be performed prior to the establishment of the District and the adoption and approval of the proposed Plans, including, but not limited to, notification of County of Anoka and Independent School District No. 13 having taxing jurisdiction over the property to be included in the District, a review of and written comment on the Plans by the City Planning Commission, and the holding of a public hearing upon published notice as required by law. 1.04. Certain written reports (the "Reports") relating to the Plans and to the activities contemplated therein have heretofore been prepared by staff and consultants and submitted to the Council and/or made a part of the City files and proceedings on the Plans. The Reports include data, information and/or substantiation constituting or relating to the basis for the other findings and determinations made in this resolution. The Council hereby confirms, ratifies and adopts the Reports, which are hereby incorporated into and made as fully a part of this resolution to the same extent as if set forth in full herein. 1.05 The City is not modifying the boundaries of the CBD Redevelopment Project. Section 2. Findings for the Adoption and Approval of the Plans. 2.01. The Council hereby finds that the Plans, are intended and, in the judgment of this Council, the effect of such actions will be, to provide an impetus for development in the public interest and accomplish certain objectives as specified in the Plans, which are hereby incorporated herein. Section 3. Findings for the Establishment of the K-Mart/Central Avenue Tax Increment Financing District. 3.01. The Council hereby finds that the District is in the public interest and is a "renewal and renovation district" under Minnesota Statutes, Section 469.174, Subd. 10a. 3.02. The Council further finds that the proposed redevelopment would not occur solely through private investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the District permitted by the TIF Plan, that the Plans conform to the general plan for the development or redevelopment of the City as a whole; and that the Plans will afford maximum opportunity consistent with the sound needs of the City as a whole, for the development or redevelopment of the District by private enterprise. 3.03. The Council further finds, declares and determines that the City made the above findings stated in this Section and has set forth the reasons and supporting facts for each determination in writing, attached hereto as Exhibit A. 3.04. The City elects to calculate fiscal disparities for the District in accordance with Minnesota Statutes, Section 469.177, Subd. 3, clause b, which means the fiscal disparities contribution would be taken from inside the District. Section 4. Public Purpose 4.01. The adoption of the Plans conforms in all respects to the requirements of the Act. The Plans will enable redevelopment of an area now occupied by substandard buildings, creating new housing and commercial uses. The City expressly finds that any private benefit to be received by developers is incidental, as the assistance is only provided to remedy the conditions that impair the development potential of the site. That is, the tax increment assistance is necessary to produce the public benefits described above. Therefore, the City finds that the public benefits of the Plans exceed any private benefits. Section 5. Approval and Adoption of the Plans. 5.01. The Plans, as presented to the Council on this date, including without limitation the findings and statements of objectives contained therein, are hereby approved, ratified, established, and adopted and shall be placed on file in the office of the Community Development Director. 5.02. The staff of the City, the City's advisors and legal counsel are authorized and directed to proceed with the implementation of the Plans and to negotiate, draft, prepare and present to this Council for its consideration all further plans, resolutions, documents and contracts necessary for this purpose. 5.03 The Auditor of Anoka County (the "Auditor") is requested to certify the original net tax capacity of the District, as described in the TIF Plan, and to certify in each year thereafter the amount by which the original net tax capacity has increased or decreased; and the City is authorized and directed to forthwith transmit this request to the Auditor in such form and content as the Auditor may specify, together with a list of all properties within the District, for which building permits have been issued during the 18 months immediately preceding the adoption of this resolution. 5.04. The Community Development Director is further authorized and directed to file a copy of the Plans with the Commissioner of the Minnesota Department of Revenue pursuant to Minnesota Statutes 469.175, Subd. 4a. Dated this 22nd day of September, 2003 Offered by: Seconded by: Roll Call: ATTEST: Julienne Wyckoff, Mayor Walter R. Fehst, City Manager EXltlBIT A RESOLUTION NO. 2003-40 The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan for the K- Mart/Central Avenue Tax Increment Financing District, as required pursuant to Minnesota Statutes, Section 469.175, Subdivision 3 are as follows: 1. Finding that the K-Mart/Central Avenue Tax Increment Financing District is a renewal and renovation district as defined in M.S., Section 469. ! 74, Subd. lOa. The District consists of six parcels, with plans to redevelop the area for housing and commercial purposes. More than 70 percent of the area in the District are occupied by buildings, streets, utilities, paved or gravel parking lots or other similar structures. More than 20 percent of the buildings in the District are structurally substandard (as defined in Section 469.174, subd. 10a), and more than 30 percent of the other buildings require substantial renovation or clearance to remove existing conditions such as inadequate street layout, incompatible uses or land use relationships, overcrowding of buildings on the land, excessive dwelling unit density, obsolete buildings not suitable for improvement or conversion, or other identified hazards to the health, safety and general well-being of the City. The City further expressly finds that the buildings identified above are reasonably distributed throughout the area of the District (See Appendix F of the TIF Plan, and the TW Eligibility Assessment prepared by SEH on file in City Hall) Finding that the proposed development, in the opinion of the City Council, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the K-Mart/Central Avenue Tax Increment Financing District permitted by the TIF Plan. The proposed development, in the opinion of the City, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future: This finding is supported by the fact that the redevelopment proposed in this TIF Plan meets the City's objectives for redevelopment. The District is occupied by various commercial buildings, including a K-Mart facility that is now vacant. Redevelopment will require acquisition, demolition and site clearance, extensive grading (to address difficulties created by elevation changes) and relocation of certain businesses. The first phase of the proposed redevelopment calls for high density owner-occupied housing on the former K-Mart property. The type and intensity of owner-occupied housing to be built is relatively untested in the Columbia Heights market and the developer is assuming a substantial risk in the investment in the property in order to obtain a reasonable return on the project. The amount of TIF will be reduced if the developer's ultimate rate of return is higher than industry standards. The TIF is intended to mitigate the risk by providing assistance initially for demolition and other site clearing costs of property. The later phases of the project will include more substantial acquisition costs of commercial property as well as potential of structured parking for higher density commercial uses than are currently on the site. The costs of acquisition, especially given the lower relative availability of TIF for commercial property since the 2001 property tax reforms, are substantially higher than what vacant land could be purchased for on an undeveloped site. (See attachment in Appendix G.) For all these reasons, the City reasonably concludes that the proposed redevelopment of the District (including both the housing and future commercial developments) is not financially feasible or likely to occur in the foreseeable future without the assistance described in this Plan. The increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the TIF District permitted by the TIF Plan: This finding is based on the fact that the land in the District is now fully developed, with various substandard and obsolete uses. Any increase in market value without tax increment assistance would only occur if existing owners made substantial improvements, or the area is redeveloped through large-scale improvements similar to those proposed in this Plan. The City has no evidence to support the expectation that existing owners or tenants will make improvements on their own. Further, comprehensive redevelopment has not traditionally occurred in Columbia Heights without public intervention. From June 2002 to the end of 2002, the current owner unsuccessfully marketed the K-Mart building for another retail/office use. Without public intervention, the likely reuse of the K-Mart property would be another "big box" user that would not substantially increase the value of the property and would not act as a catalyst in the redevelopment of the commercial property along Central Avenue in the District. Therefore, the City reasonably determines that no other redevelopment of similar scope is anticipated on this site without substantially similar assistance being provided to the development. The above findings are stated in monetary terms in Appendix G of the TIF Plan, which can be summarized as follows: The City's estimate of the amount by which the market value of the site will increase without the use of tax increment financing is $0 (for the reasons described above). If all development which is proposed to be assisted with tax increment were to occur in the District, the total increase in market value would be up to $61,240,900. The present value of tax increments from the District for the maximum duration of the district permitted by the TIF Plan is estimated to be $5,725,538. (See Appendix (3 in the TIF Plan) Even if some development other than the proposed development were to occur, the Council finds that no alternative would occur that would produce a market value increase greater than $55,515,362 (the amount in clause b less the amount in clause c) without tax increment assistance. Finding that the Tax Increment Financing Plan for the K-Mart/Central Avenue Tax Increment Financing District conforms to the general plan for the development or redevelopment of the municipality as a whole. The Planning Commission reviewed the T~ Plan and found that the T~ Plan conforms to the general development plan of the City. Finding that the Tax Increment Financing Plan for K-Mart/Central Avenue Tax Increment Financing District will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development or redevelopment of the CBD Redevelopment Project by private enterprise. The project preservation employment to be assisted by the District will result in the creation of quality life-cycle housing, the and enhancement of the tax base, the redevelopment of substandard areas, and provide opportunities in the City. MODIFICATION TO THE DOWNTOWN CENTRAL BUSINESS DISTRICT REVITALIZATION PLAN FOR THE CENTRAL BUSINESS DISTRICT REDEVELOPMENT PROJECT and the TAX INCREMENT FINANCING PLAN for the establishment of THE K-MART/CENTRAL AVENUE TAX INCREMENT FINANCING DISTRICT (a renewal and renovation district) within THE CENTRAL BUSINESS DISTRICT REDEVELOPMENT PROJECT COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY CITY OF COLUMBIA HEIGHTS COUNTY OF ANOKA STATE OF MINNESOTA Public Heating: September 22, 2003 Adopted: EHLERS ASSOCIATES INC Prepared by: EHLERS & ASSOCIATES, INC. 3060 Centre Pointe Drive, Roseville, Minnesota 55113-1105 651-697-8500 fax: 651-697-8555 www. ehlers-inc.com TABLE OF CONTENTS (for reference purposes only) SECTION I MODIFICATION TO THE DOWNTOWN CENTRAL BUSINESS DISTRICT REVITALIZA TiON PLAN FOR THE CENTRAL BUSINESS DISTRICT REDEVELOPMENT PROJECT... 1-1 Foreword ............................ - ................................. 1-1 Overview ............................................................. 1-1 SECTION II TAX INCREMENT FINANCING PLAN FOR THE K-MART/CENTRAL A VENUE TAX INCREMENT FINANCING DISTRICT .......... 2.-1 Subsection 2-1. Foreword .............................................. 2-1 Subsection 2-2. Statutory Authority ....................................... 2-1 Subsection 2-3. Statement of Objectives ................................... 2-1 Subsection 2-4. Downtown CBD Revitalization Plan Overview .................. 2-1 Subsection 2-5. Description of Property in the District and Property To Be Acquired 2-2 Subsection 2-6. Classification of the District ................................ 2-2 Subsection 2-7. Duration of the District .................................... 2-3 Subsection 2-8. Original Tax Capacity, Tax Rate and Estimated Captured Net Tax Capacity Value/Increment and Notification of Prior Planned Improvements ............... 2-3 Subsection 2-9. Sources of Revenue/Bonded Indebtedness .................... 2-4 Subsection 2-10. Subsection 2-11. Subsection 2-12. Subsection 2-13. Subsection 2-14. Subsection 2-15. Subsection 2-16. Subsection 2-17. Subsection 2-18. Subsection 2-19. Subsection 2-20. Subsection 2-21. Subsection 2-22. Subsection 2-23. Subsection 2-24. Subsection 2-25. Subsection 2-26. Subsection 2-27. Subsection 2-28. Subsection 2-29. Uses of Funds .......................................... 2-5 State Tax Increment Financing Aid (Local Contribution) .......... 2-6 Fiscal Disparities Election ................................. 2-6 Business Subsidies ...................................... 2-7 County Road Costs ...................................... 2-8 Estimated Impact on Other Taxing Jurisdictions ................ 2-8 Supporting Documentation ................................. 2-9 Definition of Tax Increment Revenues ........................ 2-9 Modifications to the District ................................ 2-9 Administrative Expenses ................................. 2-10 Limitation of Increment ............ o ....................... 2-10 Use of Tax Increment .................................... 2-11 Excess Tax Increments .................................. 2-12 Requirements for Agreements with the Developer .............. 2-12 Assessment Agreements ................................. 2-13 Administration of the District ............................... 2-13 Annual Disclosure Requirements ........................... 2-13 Reasonable Expectations ................................ 2-13 Other Limitations on the Use of Tax Increment ................ 2-13 Summary ............................................. 2-14 APPENDIX A PROJECT DESCRIPTION ............................................... A-1 APPENDIX B MAP OF THE CENTRAL BUSINESS DISTRICT REDEVELOPMENT PROJECT AND THE K-MART/CENTRAL AVENUE TAX INCREMENT FINANCING DISTRICT . . . B-1 APPENDIX C DESCRIPTION OF PROPERTY TO BE INCLUDED IN THE DISTRICT ............. C-1 APPENDIX D ESTIMATED CASH FLOW FOR THE DISTRICT .............................. D-1 APPENDIX E MINNESOTA BUSINESS ASSISTANCE FORM ............................... E-1 APPENDIX F REDEVELOPMENT QUALIFICATIONS FOR THE DISTRICT .................... F-1 APPENDIX G BUT/FOR QUALIFICATIONS ............................................. G-1 APPENDIX H PRIOR PLANNED IMPROVEMENTS ....................................... H-1 SECTION I MODIFICA T/ON TO THE DOWNTOWN CENTRAL BUSINESS DISTRICT REVITALIZATION PLAN FOR THE CENTRAL BUSINESS DISTRICT REDEVELOPMENT PROJECT Foreword The following text represents a Modification to the Downtown Central Business District (CBD) Revitalization Plan for the CBD Redevelopment Project. This modification represents a continuation of the goals and objectives set forth in the Downtown CBD Revitalization Plan for the CBD Redevelopment Project. Generally, the substantive changes include the establishment of K-Mart/Central Avemfe TIF District. For further information, a review of the Downtown CBD Revitalization Plan for the CBD Redevelopment Project is recommended. It is available from the Community Development Director at the City of Columbia Heights. Other relevant information is contained in the Tax Increment Financing Plans for the Tax Increment Financing Districts located within the CBD Redevelopment Project. Overview The Central Business District ("CDB") Redevelopment Project is administered by the Columbia Heights Economic Development Authority (the "EDA"). Previously, the CBD Redevelopment Project was established and administered by the City of Columbia Heights (the "City") and the Columbia Heights Housing and Redevelopment Authority (the "HRA"). The CBD Redevelopment Project previously included property in the downtown area. On July 18, 1994, the Sheffield Neighborhood Redevelopment and Housing Development Project was consolidated with the CBD Redevelopment Project by the HRA. On January 8, 1996, the HRA transferred its authority to the EDA, which currently administers the CDB Redevelopment Project. On May 27, 1997, the CBD Redevelopment Project was modified to expand the project area to include the entire City. Concurrently, Housing Redevelopment Tax Increment Financing District No. 1 ("District No. 1") within the CBD Redevelopment Project was established. As District No. 1 is a scattered site redevelopment tax increment financing district, the property to be included in District No. 1 is found throughout the City, thus necessitating the expansion of the boundaries of the CBD Redevelopment Project. The City and the EDA have hereby modified the boundaries of the CBD Redevelopment Project to be coterminous with the corporate limits of the City'. A map of the boundaries of the CBD Redevelopment Project can be found in Appendix B. Columbia Heights EDA Modification to the Doxxmto~n CBD Revitalization Plan for the CBD Redevelopment Project I-1 SECTION II TAX INCREMENT FINANCING PLAN FOR THE K-MART/CENTRAL A VENUE TAX INCREMENT FINANCING DISTRICT Subsection 2-1. Foreword The Columbia Heights Economic Development Authority (the "EDA"), the City of Columbia Heights (the "City"), staff and consultants have prepared the following information to expedite the establishment of the K-Mart/Central Avenue Tax Increment Financing Distric~t ("the District"), a renewal and renovation tax increment financing district, located in the Central Business District (CBD) Redevelopment Project. Subsection 2-2. Statutory Authority Within the City, there exist areas where public involvement is necessary to cause development or redevelopment to occur. To this end, the EDA and City have certain statutory powers pursuant to Minnesota Statutes ("M.S. "), Sections 469.090 to 469.1082, and Sections 469.124 to 469.134, inclusive, as amended, and MS., Sections 469.174 to 469. ! 799, inclusive, as mended (the "Tax Increment Financing Act" or "TIF Act"), to assist in financing public costs related to this project. This section contains the Tax Increment Financing Plan (the "TIF Plan,') for the K-Mart/Central Avenue Tax Increment Financing District. Other relevant information is contained in the Modification to the Downtown CBD Revitalization Plan for the CBD Redevelopment Project. Subsection 2-3. Statement of Objectives The District currently consists of six parcels of land and adjacent and internal rights-of-way. The District is being created to facilitate the construction of 244 owner-occupied units and up to 115,000 s.f. of commercial redevelopment along Central Avenue in the City of Columbia Heights. Contracts for this have not been entered into at the time of preparation of this TIF Plan, but development is likely to begin in the fall of 2003. This TIF Plan is expected to achieve many of the objectives outlined in the Downtown CBD Revitalization Plan for the CBD Redevelopment Project. The activities contemplated in the Modification to the Downtown CBD Revitalization Plan and the TIF Plan do not preclude the undertaking of other qualified development or redevelopment activities. These activities are anticipated to occur over the life of the CBD Redevelopment Project and the District. Subsection 2-4. Downtown CBD Revitalization Plan Overview 1. Property to be Acquired - Selected property located within the District may be acquired by the EDA or City and is further described in this TIF Plan. 2. Relocation - Relocation services, to the extent required by 'law, are available pursuant to M S., Chapter 117 and other relevant state and federal laws. Upon approval of a developer's plan relating to the project and completion of the necessary legal requirements, the EDA or City may sell to a developer selected properties that it may acquire within the District or may lease land or facilities to a developer. 4. The EDA or City may perform or provide for some or all necessary acquisition, Columbia Heights EDA Tax Increment Financing Plan for the K-Marl/Central Avenue Tax Increment Financing District 2-1 construction, relocation, demolition, and required utilities and public streets work ~vithin the District. Subsection 2-5. Description of Property in the District and Property To Be Acquired The District encompasses all property and adjacent rights-of-way identified by the parcels listed below. See the map in Appendix B for further information on the location of the District. Parcel Numbers 25-30-24-32-0001 25-30-24-32-0002 25-30-24-32-0003 25-30-24-32-0004 25-30-24-32-0061 25-30-24-32-0062 The EDA or City may acquire any parcel within the District including interior and adjacent street rights of way. Any properties identified for acquisition will be acquired by the EDA or City only in order to accomplish one or more of the following: storm sewer improvements; provide land for needed public streets, utilities and facilities; carry out land acquisition, site improvements, clearance and/or development to accomplish the uses and objectives set forth in this plan. The EDA or City may acquire property by gift, dedication, condemnation or direct purchase from willing sellers in order to achieve the objectives of this TIF Plan. Such acquisitions will be undertaken only when there is assurance of funding to finance the acquisition and related costs. Subsection 2-6. Classification of the District The EDA and City, in determining the need to create a tax increment financing district in accordance with M.S., Sections 469.174 to 469.1799, as amended, inclusive, find that the District, to be established, is a renewal and renovation district pursuant to MS., Section 469.174, Subd. lOa. as defined below and on the next page: (a) "Rene~vbl and renovation district" means a Ope of tax increment financing district consisting of a project, or portions of a project, within which the Cityfinds by resolution that: (1) (i) parcels consisting of 7O percent of the area of the district are occupied by buildings, streets, utilities, paved or gravel parking lots, or other similar structures; (ii) 20 percent of the buildings are structurally substandard; and (iii) 30 percent of the other buildings require substantial renovation or clearance to remove existing conditionS such as: inadequate street layout, inc[~mpatible uses or land use relationships, overcrowding ofbuildings on the land, excessive dwelling unit density, obsolete buildings not suitable for improvement or conversion, or other identified hazards to the health, safety, and general well-being of the community; and (2) the conditions described in clause (1) are reasonable distributed throughout the geographic area of the district. Columbia Heights EDA Tax Increment Financing Plan for the K-Mart/Central Avenue Tax Increment Financing District 2-2 (b) For purposes of determining whether a building is structurally substandard, whether parcels are occupied by buildings, streets, utilities, paved or gravel parking lots, or other similar structures, or whether noncontiguous areas qualify, the provisions of subdivision 10, paragraphs (0, (0, and 09 apply. In meeting the statutory criteria the City rely on the following facts and findings: [] The District is a renewal and renovation district consisting of six parcels. [] An inventory shows that parcels consisting of more than 70 percent of the area in the District are occupied by buildings, streets, utilities, paved or gravel parking lots, or other similar structures. [] An inspection of the buildings located within the District finds that more than 20 percent of the buildings are structurally substandard as defined in the TIF Act. (See Appendix F). [] An inspection of the buildings located within the District finds that more than 30 percent of the buildings require substantial renovation or clearance to remove existing conditions such as defined in the TIF Act. (See Appendix F). Pursuant to M.S. 469.176 Subd. 7, the District does not contain any parcel or part of a parcel that qualified under the provisions ofM. S 273.111 or 273.112 or Chapter 473H for taxes payable in any of the five calendar years before the filing of the request for certification of the District. Subsection 2-7. Duration of the District Pursuant to M.S., Section 469. ] 75, Subd. 1, and Section 469.176, Subd ], the duration of the District must be indicated within the TIF Plan. Pursuant to M.S., Section 469.176, Subd. lb, the duration of the District will be 15 years after receipt of the first increment by the EDA or City (a total of 16 years of tax increment). The date of receipt by the City of the first tax increment is expected to be 2006. Thus, it is estimated that the District, including any modifications of the TIF Plan for subsequent phases or other changes, would terminate after 2021, or when the TIF Plan is satisfied. The EDA or City reserves the fight to decertify the District prior to the legally required date. Subsection 2-8. Original Tax Capacity, Tax Rate and Estimated Captured Net Tax Capacity Value/Increment and Notification of Prior Planned Improvements Pursuant toM. S., Section 469.174, Subd. 7 and M. S., Section 469.177, Subd. 1, the Original Net Tax Capacity (ONTC) as certified for the District will be based on the market values placed on the property by the assessor in 2003 for taxes payable 2004. Pursuant to MS., Section 469.177, Subds. 1 and 2, the County Auditor shall certify in each year (beginning in the payment year 2005) the amount by which the original value has increased or decreased as a result of: I. Change in tax exempt status of property; 2. Reduction or enlargement of the geographic boundaries of the district; 3. Change due to adjustments, negotiated or court-ordered abatements; 4. Change in the use of the property and classification; 5. Change in state law governing class rates; or 6. Change in previously issued building permits. In any year in which the current Net Tax Capacity (NTC) value of the District declines below the ONTC, no value will be captured and no tax increment will be payable to the EDA or City. Columbia Heights EDA Tax Increment Financing Plan for the K-IvlartYCentral Avenue Tax Increment Financing District 2-3 The original local tax rate for the District will be the local tax rate for taxes payable 2004, assuming the request for certification is made before June 30, 2004. The ONTC and the Original Local Tax Rate for the District appear in the table below. Pursuant to MS., Section 469.174 Subd. 4 and M..S., Section 469.177, Subd. I, Z and 4, the estimated Captured Net Tax Capacity (CTC) of the District, within the CBD Redevelopment Project, upon completion of the project, will annually approximate tax increment revenues as shown in the table below. The EDA and City request 100 percent of the available increase in tax capacity for repayment of its obligations and current expenditures, beginning in the tax year payable 2005. The Project Tax Capacity (PTC) listed is an estimate of values when the project is completed. Project Estimated Tax Capacity upon Completion (PTC) Original Estimated Net Tax Capacity (ONTC) Fiscal Disparities Reduction Estimated Captured Tax Capacity (CTC) Original Local Tax Rate Estimated Annual Tax Increment(CTC x Local Tax Rate) Percent Retained by the City $820,250 $91,182 $72,600 $656,468 1.08395 $711,578 100% Pay 2003 Pursuant to M.S., Section 469.177, Subd 4, the EDA shall, after a due and diligent search, accompany its request for certification to the County Auditor or its notice of the District enlargement pursuant to M.S., Section 469. ] 75, Subd d, with a listing of all properties within the District or area of enlargement for which building permits have been issued during the eighteen (18) months immediately preceding approval of the TIF Plan by the municipality pursuant toMS., Section 469.175, Subd 3. The County Auditor shall increase the original net tax capacity of the District by the net tax capacity of improvements for which a building permit was issued. The City has reviewed the area to be included in the District and found that four building permits have been issued in the past 18 months for parcel number 25-30-24-32-0002. Should the county auditor decide that building permits increase the original tax capacity, the impact should be minimal because the total dollar amount of the permitJs $75,575. Please see Appendix H for the building permits that were issued. Subsection 2-9. Sources of Revenue/Bonded Indebtedness Public improvement costs, acquisition, relocation, utilities, parking facilities, streets and sidewalks, and site preparation costs and other costs outlined in the Uses of Funds will be financed primarily through the annual collection of tax increments. The EDA or City reserves the right to use other sources of revenue legally ap- plicable to the EDA or City and the TIF Plan, including, but not limited to, special assessments, general property taxes, state aid for road maintenance and construction, proceeds from the sale of land, other contributions from the developer and investment income, to pay for the estimated public costs. The EDA or City reserves the right to incur bonded indebtedness or other indebtedness as a result of the TIF Plan. As presently proposed, the project will be financed by a pay-as-you-go note with a developer. Additional indeb.tedness may be required to finance other authorized activities. The total principal amount Columbia Heights EDA Tax Increment Financing Plan for the K-Mart/Central Avenue Tax Increment Financing District 2-4 of bonded indebtedness, including a general obligation (GO) TIF bond, or other indebtedness related to the use of tax increment financing will not exceed $10,000,000 without a modification to the TIF Plan pursuant to applicable statutory requirements. This provision does not obligate the EDA or City to incur debt. The EDA or City will issue bonds or incur other debt only upon the determination that such action is in the best interest of the City. The EDA or City may also finance the activities to be undertaken pursuant to the TIF Plan through loans from funds of the EDA or City or to reimburse the developer on a "pay-as-you-go" basis for eligible costs paid for by a developer. The estimated sources of funds for the District are contained in the table below. SOURCES OF FUNDS TOTAL Tax Increment $10,195,800 PROJECT REVENUES $1071957800 Subsection 2-10. Uses of Funds Currently under consideration for the District is a proposal to facilitate the construction of 244 owner- occupied units and up to 115,000 s.f. of commercial redevelopment along Central Avenue. The EDA and City have determined that it will be necessary to provide assistance to the project for certain costs. The EDA has studied the feasibility of the development or redevelopment of property in and around the District. To facilitate the establishment and development or redevelopment of the District, this TIF Plan authorizes the use of tax increment financing to pay for the cost of certain eligible expenses. The estimate of public costs and uses of funds associated with the District is outlined in the following table. USES OF FUNDS TOTAL Land/Building Acquisition Site Improvements/Preparation Public Utilities Parking Facilities Streets and Sidewalks Interest Administrative Costs (up to 10%) ,PROJECT COSTS TOTAL $3,500,000 $5OO,OOO $500,000 $2,000,000 $100,000 $2,576,220 $1,019,580 $10,195,800 The above budget is organized according to the Office of State Auditor (OSA) reporting forms. Estimated costs associated with the District are subject to change among categories without a modification to this TIF Plan. The cost of all activities to be considered for tax increment financing will not exceed, without formal modification, the budget above pursuant to the applicable statutory requirements. Pursuant to M.S., Section 469.1763, Subd. 2, no more than 20 percent of the tax increment paid by property within the District will be spent on activities related to development or redevelopment outside of the District but within Columbia Heights EDA Tax Increment Financing Plan for the K-MarffCentral Avenue Tax Increment Financing District 2-5 the boundaries of the Central Business District Redevelopment Project, (including administrative costs, which are considered to be spent outside of the District) subject to the limitations as described in this TIF Plan. Subsection 2-11. State Tax Increment Financing Aid (Local Contribution) M.S., Section 273.1399 (LGA/HACA penalty) was repealed by the 2001 Legislature and does not apply to the District. Subsection 2-12. Fiscal Disparities Election Pursuant to M.S., Section 469.177, Subd. 3, the EDA or City may elect one of two methods to calculate fiscal disparities. If the calculations pursuant toM. S, Section 469.177, Subd. 3, clause b, (within the District) are followed, the following method of computation shall apply: The original net tax capacity shall be determined before the application of the fiscal disparity provisions of Chapter 276A or 473F. The current net tax capacity shall exclude any fiscal disparity commercial-industrial net tax capacity increase between the original year and the current year multiplied by the fiscal disparity ratio determined pursuant to MS., Section 276,4.06, subdivision 7 or M. S., Section 473F. 08, subdivision 6. Where the original net tax capacity is equal to or greater than the current net tax capacity, there is no captured tax capacity and no tax increment determination. Where the original tax capacity is less than the current tax capacity, the difference between the original net tax capacity and the current net tax capacity is the captured net tax capacity. This amount less any portion thereof which the authority has designated, in its tax increment financing plan, to share with the local taxing districts is the retained captured net tax capacity of the authority. The county auditor shah exclude the retained capturednet tax capacity of the authority from the net tax capacity of the local taxing districts in determining local taxing district tax rates. The local tax rates so determined are to be extended against the retained captured net tax capacity of the authority as well as the net tax capacity of the local taxing districts. The tax generated by the extension of the less of(A) the local taxing district tax rates or (B) the original local tax rate to the retained captured net tax capacity of the authority is the tax increment of the authority. The EDA will choose to calculate fiscal disparities by clause b According toM. S, Section 469.177, Subd 3: The method of computation of tax increment applied to a district pursuant to paragraph (a) or (72) shall remain the same for the duration of the district, except that the governing body may elect to change its election from the method of computation in paragraph (a) to the method in paragraph (b). Columbia Heights EDA Tax Increment Financing Plan for the K-Marl/Central Avenue Tax Increment Financing District 2-6 Subsection 2-13. Business Subsidies Pursuant to M.S. Sections 116,Z. 993, Subd 3, the following forms of financial assistance are not considered a business subsidy: (20) (21) (22) (1) A business subsidy of less than $25,000; (2) Assistance that is generally available to all businesses or to a general class of similar businesses, such as a line of business, size, location, or similar general criteria; (3) Public improvements to buildings or lands owned by the state or local government that serve a public purpose and do not principally benefit a single business or defined group of businesses at the time the improvements are made; (4) Redevelopment property polluted by contaminants as defined in M.S. Section 116~.552, Subd. 3; (5) Assistance provided for the sole purpose of renovating old or decaying building stock or bringing it up to code and assistance provided for designated historic preservation districts, provided that the assistance is equal to or less than 50% of the total cost; (6) Assistance to provide job readiness and training services if the sole purpose of the assistance is to provide those services; (7) Assistance for housing; (8) Assistance for pollution control or abatement, including assistance for a tax increment financing hazardous substance subdistrict as defined under M.S. Section 469.174, Subd. 23; (9) Assistance for energy conservation; (10) Tax reductions resulting from conformity with federal tax law; (11) Workers' compensation and unemployment compensation; (12) Benefits derived from regulation; "' (13) Indirect benefits derived from assistance to educational institutions; (14) Funds from bonds allocated under chapter 474A, bonds issued to refund outstanding bonds, and bonds issued for the benefit of an organization described in section 501 (c) (3) of the Internal Revenue Code of 1986, as amended through December 31, 1999; (15) Assistance for a collaboration between a Minnesota higher education institution and a business; (16) Assistance for a tax increment financing soils condition district as defined under M.S. Section 469.174, Subd. 19; (17) Redevelopment ~vhen the recipient's investment in the purchase of the site and in site preparation is 70 percent or more of the assessor's current year's estimated market value; (18) General changes in tax increment financing lmv and other general tax la~v changes of a principally technical nature. (19) Federal assistance until the assistance has been repaid to, and reinvested by, the state or local government agency; Funds from dock and wharf bonds issued by a seaway port authority; Business loans and loan guarantees of $75,000 or less; and Federal loan funds provided through the United States Department of Commerce, Economic Development Administration. The City will comply with M.S., Section 116J. 993 to 116J. 994 to the extent the tax increment assistance under this TIF Plan does not fall under any of the above exemptions. Columbia Heights EDA Tax Increment Financing Plan for the K-Mar~Central Avenue Tax Increment Financing District 2-7 Subsection 2-14. County Road Costs Pursuant to M.S., Section 469.175, Subd Ia, the county board may require the City to pay for all or part of the cost of county road improvements if the proposed development to be assisted by tax increment will, in the judgement of the county, substantially increase the use of county roads requiring construction of road improvements or other road costs and if the road improvements are not scheduled within the next five years under a capital improvement plan or within five years under another county plan. If the county elects to use increments to improve county roads, it must notify the City ~vithin forty-five days of receipt of this TIF Plan. In the opinion of the City and consultants, the proposed development outlined in this TIF Plan will have little or no impact upon county roads, therefore the TIF Plan ~vas not forwarded to the county 45 days prior to the public hearing. The City is aware that the county could claim that tax increment should be used for county roads, even after the public heating. Subsection 2-15. Estimated Impact on Other Taxing Jurisdictions The estimated impact on other taxing jurisdictions assumes that the redevelopment contemplated by the TIF Plan would occur without the creation of the District. However, the City has determined that such development or redevelopment would not occur "but for" tax increment financing and that, therefore, the' fiscal impact on other taxing jurisdictions is $0. The estimated fiscal impact of the District would be as follows if the "but for" test was not met: IMPACT ON TAX BASE Anoka County City of Columbia Heights Columbia Heights ISD No. 13 2002/2003 Estimated Captured Total Net Tax Capacity (CTC) Percent of CTC Tax Capacity Upon Completion to Entity Total 176,930,024 656,468 0.3710% 8,351,648 656,468 7.8603% 13,591,199 656,468 4.8301% IMPACT ON TAX RATES 2002/2003 . Percent Potential Extension Rates of Total CTC Taxes Anoka County 0.346170 31.94% 656,468 227,250 City of Columbia Heights 0.452720 41.77% 656,468 297,196 Columbia Heights ISD No. 13 0.137850 12.72% 656,468 90,494 Other 0.147210 13.58% 656,468 96~639 Total 1.083950 100.00% 711,578 The estimates listed above display the captured tax capacity when all construction is completed. The tax rate used for calculations is the actual 2002/Pay 2003 rate. The ~otal net capacity for the entities listed above are based on actual Pay 2003 figures. The District will be certified under the actual 2003/Pay 2004 rates, which were unavailable at the time this TIF Plan was prepared. Columbia Heights EDA Tax Increment Financing Plan for the K-Mart/Central Avenue Tax Increment Financing Districa 2-8 Subsection 2-16. Supporting Documentation Pursuant to M.S. Section 469.175 Subd Ia, clause 7 the TIF Plan must contain identification and description of studies and analyses used to make the determination set forth in M.S. Section 469. ] 75 Subd 3, clause (2) and the findings are required in the resolution approving the TIF district.. Following is a list of reports and studies on file at the City that support the Authofity's findings: 1. Technical Memorandum for K-Mart Redevelopment Process - DSU 2. SEH Redevelopment Findings Subsection 2-17. Definition of Tax Increment Revenues Pursuant to M.S., Section 469.174, Subd. 25, tax increment revenues derived from a tax increment financing district include all of the following potential revenue sources: 1. Taxes paid by the captured net tax capacity, but excluding any excess taxes, as computed underM. S., Section 469.177; 2. The proceeds from the sale or lease of property, tangible or intangible, purchased by the Authority with tax increments; 3. Repayments of loans or other advances made by the Authority with tax increments; and 4. Interest or other investment earnings on or from tax increments. Subsection 2-18. Modifications to the District In accordance xvith M.S., Section 469.175, Subd. 4, any: 1. Reduction or enlargement of the geographic area of the CBD Redevelopment prOject or the District; 2. Increase in amount of bonded indebtedness to be incurred, including a determination to capitalize interest on debt if that determination was not a part of the original plan, or to increase or decrease the amount of interest on the debt to be capitalized; 3. Increase in the portion of the captured net tax capacity to be retained by the City; 4. Increase in total estimated tax increment expenditures; or 5. Designation of additional property to be acquired by the City, shall be approved upon the notice and after the discussion, public hearing and findings required for approval of the original TIF Plan. Pursuant to MS. Section 469.175 Subd 4(b), the geographic area of the District may be reduced, but shall not be enlarged after five years following the date of certification of the original net tax capacity by the county auditor. Ifa redevelopment district is enlarged, the reasons and supporting facts for the determination that the addition to the district meets the criteria ofM. S., Section 469.174, Subd 10, paragraph (a), clauses (1) to (5), must be documented in writing and retained. The requirements of this paragraph do not apply if (1)~the only modification is elimination of parcel(s) from the CBD Redevelopment Project or the District and (2) (A) the current net tax capacity of the parcel(s) eliminated from the District equals or exceeds the net tax capacity of those parcel(s) in the District's original net tax capacity or (B) the City agrees that, notwithstanding M.S., Section 469.177, Subd. 1, the original net tax capacity will be reduced by no more than the current net tax capacity of the parcel(s) eliminated from the District. The City must notify the County Auditor of any modification that reduces or enlarges the geographic area Columbia Heights EDA Tax Increment Financing Plan for the K-Marl/Central Avenue Tax Increment Financing District 2-9 of the CBD Redevelopment Project or the District. Modifications to the District in the form of a budget modification or an expansion of the boundaries will be recorded in the TIF Plan. Subsection 2-19. Administrative Expenses In accordance with MS., Section 469.174, Subd. 14, and M.S., Section 469.176, Subd 3, administrative expenses means all expenditures of the City, other than: 1. Amounts paid for the purchase of land; 2. Amounts paid to contractors or others providing materials and services, including architectural and engineering services, directly connected with the physical development of the real property in the project; 3. Relocation benefits paid to or services provided for persons residing or businesses located in the project; or 4. Amounts used to pay principal or interest on, fund a reserve for, or sell at a discount bonds issued pursuant to MS., Section 469.178; or 5. Amounts used to pay other financial obligations to the extent those obligations were used to finance costs described in sections 1 to 3. For districts for xvhich the request for certification were made before August 1, 1979, or after June 30, 1982, administrative expenses also include amounts paid for services provided by bond counsel, fiscal consultants, and planning or economic development consultants. Tax increment may be used to pay any authorized and documented administrative expenses for the District up to but not to exceed 10 percent of the total tax increment expenditures authorized by the TIF Plan or the total tax increment expenditures for the CBD Redevelopment Project, whichever is less. Pursuant to M.S., Section 469.176, Subd 4h, tax increments may be used to pay for the County's actual administrative expenses incurred in connection ~vith the District. The county may require payment of those expenses by February 15 of the year follo~ving the year the expenses were incurred. Pursuant toM. S, Section 469. 177, Subd 11, the County Treasurer shall deduct an amount (currently .36 percent) of any increment distributed to the City and the County Treasurer shall pay the amount deducted to the State Treasurer for deposit in the state general fund to be appropriated to the State Auditor for the cost of financial reporting of tax increment financing information and the cost of examining and auditing authorities' use of tax increment financing. This amount may be adjusted annually by the Commissioner of Revenue. Subsection 2-20. Limitation of Increment Pursuant to M.S., Section 469.176, Subd la, no tax increment shall be paid to the City for the District after three (3) years from the date of certification of the Original Net Tax Capacity value of the taxable property in the District by the County Auditor unless within the three (3) year period: (1) Bonds have been issued in aid of the project containing the District pursuant to M.S., Section 469.178, or any other law, except revenue bonds issued pursuant to M.S., Sections 469.152 to 469.165, or (2) The City has acquired property within the District, or Columbia Heights EDA Tax Increment Financing Plan for the K-Mart/Central Avenue Tax Increment Financing District 2-10 (3) The City has constructed or caused to be constructed public improvements within the District. The bonds must be issued, or the City must acquire property or construct or cause public improvements to be constructed by approximately September, 2006 and report such actions to the County Auditor. The tax increment pledged to the payment of bonds and interest thereon may be discharged and the District may be terminated if sufficient funds have been irrevocably deposited in the debt service fund or other escrow account held in trust for all outstanding bonds to provide for the payment of the bonds at maturity or redemption date. Pursuant toMS., Section 469.176, Subd 6: if afier four years from the date of certification of the original net tax capacity of the tax increment financing district pursuant to M.S., Section 469. ! 77, no demolition, rehabilitation or renovation of property or other site preparation, including qualified improvement ora street adjacent to a parcel but not installation of utility service including sewer or water systems, has been commenced on a parcel located within a tax increment financing district by the authority or by the owner of the parcel in accordance with the tax increment financing plan, no additional tax increment may be taken from that parcel and the original net tax capacity of that parcel shall be excluded from the original net tax capacity of the tax increment financing district. If the authority or the owner of the parcel subsequently commences demolition, rehabilitation or renovation or other site preparation on that parcel including qualified improvement of a street adjacent to that parcel, in accordance with the tax increment financing plan, the authority shall certify to the county auditor that the activity has commenced and the county auditor shall certify the net tax capacity thereof as most recently certified by the commissioner of revenue and add it to the original net tax capacity of the tax increment financing district. The county auditor must enforce the provisions of this subdivision. The authority must submit to the county auditor evidence that the required activity has taken place for each parcel in the district. The evidence for a parcel must be submitted by February ] of the fifih year following the year in which the parcel was certified as included in the district. For purposes of this subdivision, qualified improvements of a street are limited to (1) construction or opening of a new street, (2) relocation ora street, and (3) substantial reconstruction or rebuilding of an existing street. The City or a property oxvner must improve parcels within the District by approximately September, 2007 and report such actions to the County Auditor. Subsection 2-21. Use of Tax Increment The City hereby determines that it will use 100 percent of the captured net tax capacity of taxable property located in the District for the following purposes: 1. To pay the principal of and interest on bonds issued to finance a project; 2. To finance, or otherwise paythe capital and administration costs of the CBD Redevelopment Project pursuant to the M.S., Sections 469. 090 to 469.1082 andM. S., Sections 469.124 to 469.134; 3. To pay for project costs as identified in the budget set forth in the TIF Plan; 4. To finance, or otherwise pay for other purposes as provided inM. S., Section 469.176, Subd. 4; 5. To pay principal and interest on any loans, advances or other payments made to or on behalf of the City or for the benefit of the CBD Redevelopment Project by a developer; Columbia Heights EDA Tax Increment Financing Plan tbr the K-MarFCentral Avenue Tax Increment Financing District 2- I 1 6. To finance or otherwise pay premiums and other costs for insurance or other security guaranteeing the payment when due of principal of and interest on bonds pursuant to the TIF Plan or pursuant to MS., Chapter 462C. M.S., Sections 469.152 through 469.165, and/or M. S., Sections 469.178; and 7. To accumulate or maintain a reserve securing the payment when due of the principal and interest on the tax increment bonds or bonds issued pursuant to M.S., Chapter 462C, M.S., Sections 469.152 through 469.165, and/or M.S., Sections 469.178. These revenues shall not be used to circumvent any levy limitations applicable to the City nor for other purposes prohibited by M. S., Section 469.176, Subd. 4. Tax increments generated in the District will be paid by Anoka Count), to the City for the Tax Increment Fund of said District. The City will pay to the developer(s) annually an amount not to exceed an amount as specified in a developer's agreement to reimburse the costs of land acquisition, public improvements, demolition and relocation, site preparation, and administration. Remaining increment funds will be used for City administration (up to 10 percent) and the costs of public improvement activities outside the District. Subsection 2-22. Excess Tax Increments Pursuant to M.S., Section 469.176, Subd. 2, in any year in which the tax increment exceeds the amount necessary to pay the costs authorized by the TIF Plan, including the amount necessary to cancel any tax levy as provided inM. S., Section 475. 61, Subd. 3, the City shall use the excess amount to do any of the following: 1. Prepay any outstanding bonds; 2. Discharge the pledge of tax increment therefor; 3. Pay into an escrow account dedicated to the payment of such bonds; or 4. Return the excess to the County Auditor for redistribution to the respective taxing jurisdictions in proportion to their local tax rates. In addition, the City may, subject to the limitations set forth herein, choose to modify the TIF Plan in order to finance additional public costs in the Central Business District Redevelopment Project or the District. Subsection 2-23. Requirements for Agreements with the Developer The City will review any proposal for private development to determine its conformance with the Downtown CBD Revitalization Plan and with applicable municipal ordinances and codes. To facilitate this effort, the following documents may be requested for review and approval: site plan, construction, mechanical, and electrical system drawings, landscaping plan, gradihg and storm drainage plan, signage system plan, and any other drawings or narrative deemed necessary by the City to demonstrate the conformance of the development with City plans and ordinances. The City may also use the Agreements to address other issues related to the development. Pursuant to M.S., Section 469.176, &tbd 5, no more than 25 percent, by acreage, of the property to be acquired in the District as set forth in the TIF Plan shall at any time be owned by the City as a result of acquisition with the proceeds of bonds issued pursuant to MS., Section 469.178 to which tax increments from property acquired is pledged, unless prior to acquisition in excess of 25 percent of the acreage, the City concluded an agreement for the development or redevelopment of the property acquired and which provides recourse for the City should the development or redevelopment not be completed. Columbia Heights EDA Tax Increment Financing Plan for the K-Mart/Central Avenue Tax Increment Financing District 2-12 Subsection 2-24. Assessment Agreements Pursuant to MS., Section 469.177, Subd. 8, the City may enter into a written assessment agreement in recordable form with the developer of property within the District which establishes a minimum market value of the land and completed improvements for the duration of the District. The assessment agreement shall be presented to the County Assessor who shall review the plans and specifications for the improvements to be constructed, review the market value previously assigned to the land upon which the improvements are to be constructed and, so long as the minimum market value contained in the assessment agreement appears, in the judgment of the assessor, to be a reasonable estimate, the County Assessor shall also certify the minimum market value agreement. Subsection 2-25. Administration of the District Administration of the District will be handled by the Executive Director of the EDA. Subsection 2-26. Annual Disclosure Requirements Pursuant to M.S., Section 469.175, Subd. 5, 6 and 6a the City must undertake financial reporting for all tax increment financing districts to the Office of the State Auditor, County Board, County Auditor and School Board on or before August 1 of each year. M.S., Section 469. ! 75, Subd. 5 also provides that an annual statement shall be published in a newspaper of general circulation in the City on or before August 15. If the City fails to make a disclosure or submit a report containing the information required by MS. Section 469.175 Subd. 5 and Subd. 6, the OSA will direct the County Auditor to withhold the distribution of tax increment from the District. Subsection 2-27. Reasonable Expectations As required by the TIF Act, in establishing the District, the determination has been made that the anticipated development ~vould not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the District permitted by the TIF Plan. In making said determination, reliance has been placed upon written representation made by the developer to such effects and upon City staff awareness of the feasibility o.f developing the project site. A comparative analysis of estimated market values both with and without establishment of the District and the use of tax increments has been performed as described above. Such analysis is included with the cashflow in Appendix D, and indicates that the increase in estimated market value of the proposed development (less the indicated subtractions) exceeds the estimated market value of the site absent the establishment of the District and the use of tax increments. Subsection 2-28. Other Limitations on the Use of Tax Increment General Limitations. All revenue derived from tax increment shall be used in accordance with the TIF Plan. The revenues shall be used to finance, or otherwise pay the capital and administration costs of the CBD Redevelopment Project pursuant to theMS., Sections 469.124 to 469.134. Tax increments may not be used to circumvent existing levy limit law. No tax increment may be used for the acquisition, construction, renovation, operation, or maintenance of a building to be used primarily and regularly for Columbia Heights EDA Tax Increment Financing Plan for the K-MartYCentral Avenue Tax Increment Financing District 2-13 conducting the business of a municipality, county, school district, or any other local unit of government or the state or federal government. This provision does not prohibit the use of revenues derived from tax increments for the construction or renovation of a parking structure. Pooling Limitations. At least 80 percent of tax increments from the District must be expended on activities in the District or to pay bonds, to the extent that the proceeds of the bonds were used to finance activities within said district or to pay, or secure payment of, debt service on credit enhanced bonds. Not more than 20 percent of said tax increments may be expended, through a development fund or otherwise, on activities outside of the District except to pay, or secure payment of, debt service on credit enhanced bonds. For purposes of applying this restriction, all administrative expenses must be treated as if they were solely for activities outside of the District. Five Year Limitation on Commitment of Tax Increments. Tax increments derived from the District shall be deemed to have satisfied the 80 percent test set forth in paragraph (2) above only if the five year rule set forth in MS., Section 469.1763, Subd 3, has been satisfied; and beginning with the sixth year following certification of the District, 75 percent of said tax increments that remain after expenditures permitted under said five year role must be used only to pay previously committed expenditures or credit enhanced bonds as more fully set forth inMS., Section 469.1763, Subd. 5. Renewal and Renovation District. At least 90 percent of the revenues derived from tax increment from a redevelopment district must be used to fmance the cost of correcting conditions that allow designation of redevelopment and renewal and renovation districts underM. S., Secn'on 469.176 Subd. 4j. These costs include, but are not limited to, acquiring properties containing structurally substandard buildings or improvements or hazardous substances, pollution, or contaminants, acquiring adjacent parcels necessary to provide a site of sufficient size to permit development, demolition and rehabilitation of structures, cleating of the land, the removal of hazardous substances or remediation necessary for development of the land, and installation of utilities, roads, sidewalks, and parking facilities for the site. The allocated administrative expenses of the City, including the cost of preparation of the development action response plan, may be included in the qualifying costs. Subsection 2-29. Summary The EDA is establishing the District to preserve and enhance the tax base, redevelop substandard areas, and provide employment opportunities in the City. The TIF Plan for the District was prepared by Ehlers & Associates, Inc., 3060 Centre Pointe Drive, Roseville, Minnesota 55113, telephone (651) 697-8500. Columbia Heights EDA Tax Increment Financing Plan for the K-Mart/Central Avenue Tax Increment Financing District 2-14 APPENDIX A PROJECT DESCRIPTION Nedegaard Custom Homes has obtained a purchase agreement on the vacant K-Mart property east of Central Avenue between 47th and 49th. The developer is planning to build 244 owner occupied units on the K-Mart site as Phase I and construct additional commercial development along Central Avenue as Phase II. Phase II could include up to 115,000 s.f. of new commercial property, depending upon the amount of land included in the redevelopment. The Phase I assistance is limited to a developer financed note for demolition costs of the former K-Mart structure. The majority of the tax increment will be utilized to acquire property and construct public parking to facilitate the commercial redevelopment. A six-month public planning process has preceded the preparation of the tax increment plan as well as findings by SEH on the condition of the buildings to be included on the site. APPENDIX ^-1 APPENDIX B MAP OF THE CENTRAL BUSINESS DISTRICT REDEVELOPMENT PROJECT AND THE K-MART/CENTRAL AVENUE TAX INCREMENT FINANCING DISTRICT APPENDIX .B-1 Proposed K-Mart/Cen tral Avenue Tax Increment Financing District Central Business District Redevelopment ProjeCt City of Columbia Heights Anoka County, Minnesota K-MarlJCentral Avenue Tax Increment Financing District City of Hilltop City of Legend ~ Central Business District Redevelopment Project ~ K-Mart/Central Avenue Tax Increment Financing District The boundaries o1' Ihe Ceniral Business District Redevelopment Project are coterminous wi~ ~ corporate limits of the City of Columbia Heights. APPENDIX C DESCRIPTION OF PROPERTY TO BE INCLUDED IN THE DISTRICT The District encompasses all property and adjacent rights-of-way identified by the parcels listed below. Parcel Numbers Address 25-30-24-32-0001 4801 Central Avenue NE 25-30-24-32-0002 4811 Central Avenue NE 25-30-24-32-0003 4849 Central Avenue NE 25-30-24-32-0004 4757 Central Avenue NE 25-30-24-32-0061 4707 Central Avenue NE 25-30-24-32-0062 4747 Central Avenue NE APPENDIX c-! APPENDIX D ESTIMATED CASH FLOW FOR THE DISTRICT APPENDIX D-1 K-Mart Redevelopment city of Columbia Heights 244 Unite of Owner-Occupied Townhomee and Commercial on Central District Renovation end Renewal District Ill Inflation Rate - Every _ Years 0,0000% Pay-As-You. Go Interest Rate: 7,0000% Note Issued Date (Present Value Date): 01-Aug.~4 Local Tax Rate - Maximum 106.3950% Pay 2004 Estimate Fiscal Disparities Election (A - outside or B - inside) B Year District was carlifiod Pay 2004 Assumes First Tax In~ement For District 2006 Year Dia~'ict was Modified Development located in modified areaYes Assumes First Tax Increment For Dev 2006 Years of Tax Increment 16 Assumes Last Year of Tax Increment 2022 Fiscal Disparities Ratio Fiscal Disparities Metro Wide Tax Rate Local Tax Rate - Curt'ant 24.0000% Pay 2004 Estimate 132.8850% 10~.3650% Pay 2004 Estimate State Wide Pmpmly Tax Rate (Used for total taxes) 55.0000% Pay 2004 Estimate Market Value Tax Rate (used for total taxes) 0.1141% Pay 2004 Estimate Commercial Indus~al Class Rate 1.5%-2.0% Pay 2003 First 150.000 1.50% Over 150,000 2.00% Rental Class Rate 1.25% Pay 2004 Rasidental Class - Under $500,000 1.00% Over $500,000 1.25% Claes RateAfter Property Land Building Total Claes Original After Conversion Date Map ID PID Description Market Value Market Value Market Value Rate Tax Capacity ConversionTax Capacity Payable 25-302-43-200-61 ~.~ 152,500 276,800 429,300 1.5%-2.0% 7,836 2.00% 8,586 2005 25-302-43-200-04 sau.~..~ 185,600 228,300 413,900 1.5%-2.0% 7,528 2.00% 8,278 2005 25-302-43-200-03 s~. 514.300 1,231,600 1.745,900 1~5%-2.0% 34,168 2.00% 34,918 2005 25-302-43-200-02 a~,.~wa ~ 206,100 213,900 420,000 1,5%-2.0% 7,650 2.00% 8,400 2005 25-302-43-200-62 Km.. 2,200.000 1.5%-2.0% 43,250 1.00% 22,000 2004 25-302-43-200-01 Wa* 191,700 258,300 450,000 1.5%-2.0% 8,250 2.00% 9,000 2005 Totala 1~250r200 2~208~900 51659r100 108r682 91r182 Note: 525 Total Market ValueTaxes Per Total Market Class New Year Date Phase Use Sq. FtJUniteSq. FL/Units Sq. FtJUnite Taxes Value Rata Tax Capacity Constructed Payable 1 Commercial 75,000 135 4.72 354,327 10,125,000 2.00% 202,500 2006 2008 2 Commet-~ial 40,000 125 4.37 174,976 5,000,000 2.00% 100,000 2007 2009 I Row Townhome 32 213,750 2.380.74 76,184 6,840,000 1.00% 68,400 2004 2006 2 Townhomes 98 237,500 2,686.65 263,291 23,275,000 1.00% 232,750 2005 2007 3 Flats 114 190,000 2.074.84 236.532 21,660,000 1.00% 216,600 2006 2008 TOTAL 1156244 1~105~30966~900r000 8201250 Note: Total Local Fiscal Local Fiscal Stata-wide Local Fiscal State-wide Less Maritat Phase Tax Tax Disparities Tax Disparities Property Taxes Disparities property MV Hmst. Value Total Capacity Capacity Tax Capacity Rate Tax Rate Tax Rate Taxes Taxes Credit Taxes Taxes I 202,500 153,900 48,600 1.08395 1.32885 0.55000 166,820 64,502 111,375 itSso 354,327 2 100,000 76,000 24,000 1.08395 1.32885 0.55000 82,380 31,802 55,000 S,704 174,976 1 68,400 68,400 0 1.08395 0.00000 0.00000 74,142 0 0 -5,761 ?302 76,164 2 232,750 232,750 0 1.08395 0.00000 0.00000 252.289 0 0 -15,548 26.5so 263,291 3 216,600 216,600 0 1.08395 0 00000 0.00000 234,784 0 0 -22.960 24.708 236,$32 TOTAL 620r250 747~650 721600 1.08395 810t415 96147fi 166r375 -44r260 76.313 1~105r309 Note: 1. Residential do not pay State-wide property tax or Fiscal Disparities. Prepared by Ehler! k-mart corem-housing combined 9116/2003 ~1~ E H LE RS Peg. 2 of 2 V CITY OF COLUMBIA HEIGHTS Base Project Captured Semi-Annual Stats Admin. Semi-Annual Semi-Annual PAYMENT DATE PERIOD BEGINNING TIx Tax Fiscal Tax Gross Tax Auditor st Net Tax Present PERIOD ENDING Yrs. Mth. Yr. Capacity Capacity Disparities Capacity Increment 0.35% 10.00% Increment Value Yrs. Mth. Yr. 0.0 02-0t 2004 108,682 108,682 Present Value Date - 2-01-06 0.0 08-01 2004 0.0 08-01 2004 108,682 108,682 0.0 02-01 2005 0.0 02-01 2005 91,182 91,182 0.0 08-01 2005 0.0 08-01 2005 91,182 91,182 0 0 0 0 0 0 0.0 02-01 2006 0.0 02-01 2006 91,182 137,582 46,400 25,148 (91) (2,506) 22,551 21,052 0.5 08-01 2006 0.5 08-01 2006 91,182 137,582 46,400 25,148 (91) (2,506) 22,551 41,392 1.0 02-01 2007 1.0 02-01 2007 91,182 370,332 279,150 151,292 (545) (15,075) 135,673 159,623 1.5 08-01 2007 1.5 08-01 2007 91.182 370,332 279,150 151,292 (545) (15,075) 135,673 273,856 2.0 02-01 2008 2.0 02-01 2008 91.182 720,250 48,600 580,468 314,599 (1,133) (31,~47) 282,120 503,361 2.5 08-01 2008 2.5 08-01 2008 91,182 720,250 48,600 580,466 314,599 (1,133) (31,347) 282,120 725,105 3.0 02-01 2009 3.0 02-01 2009 91,182 820,250 72,600 656,468 356.789 (1,281) (36,451) 319,058 967,401 3.5 08-01 2009 3.5 08-01 2009 91,182 820,250 72,600 656,468 355,789 (1,281) (36,451) 319,058 1,201,503 4.0 02-01 2010 4.0 02-01 2010 91,182 820,250 72,600 656,468 355,789 (1,281) (35,451) 319,058 1,427,689 4.5 08-01 2010 4.5 08-01 2010 91.182 820,250 72,600 656,468 355,789 (1,281) (35,451) 319,058 1,646,226 5.0 02431 2011 5.0 02-01 2011 91,182 820,250 72,600 656,468 355,789 (1,281) (35,451) 319,058 1,857,373 5.5 08-01 2011 5.5 08-01 2011 91,182 820,250 72,600 656,468 355,789 (1,281) (35,451) 319,058 2,061,380 6.0 02-01 2012 6.0 02-01 2012 91,182 820,250 72,600 656,468 355,789 (1,281) (35,451) 319,058 2,258,488 6.5 08-01 2012 6.5 0S-01 2012 91,182 820,250 72,600 656,468 355,789 (1,281) (35,451) 319,058 2,448,930 7.0 02-01 2013 7.0 02-01 2013 91,182 820,250 72,600 656,468 355,789 (1.281) (35,451) 319,058 2,632,932 7.5 08-01 2013 7.5 08-01 2013 91,182 820,250 72,600 656,468 355,789 (1,281) (35,451) 319,058 2,810,713 8.0 02-01 2014 8.0 02-01 2014' 91,182 820,250 72,600 656,468 355,789 (1,281) (35,451) 319,058 2,982,481 8.5 08-01 2014 8.5 08-01 2014 91,182 820,250 72,600 656,468 355,789 (1,281) (35.451) 319,058 3,148,440 9.0 02-01 2015 9.0 02-01 2015 91,182 820,250 72,600 656,468 355,789 (1,281) (35,451) 319!058 3,308,788 9.5 08-01 2015 0.5 08-01 2015 91,182 820,250 72,600 656,468 355,789 (1,281) (35,451) 319,058 3,463,713 10.0 02-01 2016 10.0 02-01 2016 91,182 820,250 72,600 656,468 355,789 (1,281) (35,451) 319,058 3,613,399 10.5 08-01 2016 10.5 08-01 2016 91,182 820,250 72,600 656,468 355,789 (1,281) (35,451) 319,058 3,758,023 11.0 02-01 2017 11.0 02-01 2017 91,182 820,250 72,600 656,468 355,789 (1,281) (35,451) 319,058 3,897,757 11.5 08-01 2017 11.5 08-01 2017 91,182 820,250 72,600 656,468 355,789 (1,281) (35,451) 319.058 4,032,765 12.0 02-01 2018 12.0 02-01 2018 91,182 820,250 72,600 656,468 355+789 (1,281) (35,451) 319,058 4,163,208 12.5 08-01 2018 12.5 08-01 2018 91,182 820,250 72,600 656,468 355,789 (1,281) (35,451) 319,058 4,289,239 13.0 02-01 2019 13.0 02-01 2019 91,182 820,250 72,600 656,468 355,789 (1,281) (35,451) 319,058 4,411,009 13.5 08-01 2019 13.5 08-01 2019 91,182 820,250 72,600 656,468 355,789 (1,281) (35,451) 319,058 4,528,661 14.0 02-01 2020 14.0 02-01 2020 91,182 820,250 72,600 656,468 355,789 (1,281) (35,451) 319,058 4,642,334 14.5 08-01 2020 14.5 08-01 2020 91,182 820,250 72,600 656,468 355,789 (1,281) (35,451) 319,058 4,752,164 15.0 02-01 2021 15.0 02-01 2021 91,182 820,250 72,600 656,468 355,789 (1,281) (35,451) 319,058 4,858,279 15.5 08-01 2021 15.5 08-01 2021 91,182 8201250 721600 6561468 3551789 (11281) ($51451) 319~058 419601806 16.0 02-01 2022 Totals 10r2321599 (361837) {1~019~576) 9~1761195 Present Value Date - 2-01-06 6~725~538 (19~915) (551,201) 4~960~906 NOTES: 1. State Auditor payment is baaed upon 1st half, pay 2002 actual end may increase over term of district. 2. Assumes development in constructed in 2004, assessed in 2005 and first increment is paid in 2006. 3. Amount of increment will vary depending upon market value, tax rates, class rates, construction schedule and inflation on Market Value. 4. Inflation on tax rates cannot be captured. 5. TIF does not capture state wide property taxes or market value property taxes. Current Market Value - Est. 5,659,1(X}~ New Market Value - Est. 86.900000 I Difference 81.2409001 Present Value of Tax Increment 5.725.5381 Difference 55.515,3621 Value L~kely to Occur Without Tax Increment is Less Than: 55r51S~3621 APPENDIX E MINNESOTA BUSINESS ASSISTANCE FORM (MINNESOTA DEPARTMENT OF TRADE AND ECONOMIC DEVELOPMENT) APPENDIX E-1 *faders- 2003 Minnesota Business Assistance Form EconolnlC Development · The 2003 Minnesota Business Assistance Form (MBAF) is used to report each business subsidy and financial assistance agreement signed from January 1, 2002 through December $1, 2002 per Minn. Stat. § I 16J.993 to § 116J.995. Please use forms from prior years to report agreements signed before 2002. · The following government agencies must submit a 2003 MBAF even if an agreement was not signed during the period January 1, 2002 through December 31, 2002: 1) any local government/agency that signed a business subsidy agreement since January !, 1998, or represents a population of more than 2,500; 2) all state government agencies authorized to provide business subsidies. If the local/state government agency does not have any subsidies or assistance to report, please answer questions 1 through 13 and questions 33 and 34. · If a local or state government agency that is required to report has not done so by April 1, DTED will mail a warning. If it fails to report by June I, it may not award any business subsidies until a report has been filed. · Questions? Call (65 I) 296-0580. Information on where to mail or fax your completed MBAF(s) is on page 4. Section I Grantor Information I. Name of grantor (funding entity) 2. Name of person completing this form 3. Street address 4. City 5. ZIP code 6. County 7. Phone number 8. Fax number 9. E-mail address 10. Please indicate who in your organization should receive the 2003 MBAF if different from the person in Question 2. Name/Title Phone number Street address City ZIP code 1 I. Classification of grantor (Mark one. If grantor is entity 12. Has your organization held a public heating on and created by gov 't agency, please indicate affiliation. For adopted criteria for awarding business subsidies in example, a city EDA would check "City government. ") compliance with Minn. Stat. § 116J.9947 (Mark one.) [] City government [] Yes, in 2003 (attach crt'teria) El Yes, in 2003 but have not yet adopted criteria [] County government [] Yes, prior to 2003 [] Regional government If Yes: Hearing Date: Year Criteria Submitted: El State government [] No [] Other (Please specify.) Fl Other (Please attach explanation.) 13. Has your organization signed any agreements to award a business subsidy or financial assistance from January 1, 2002 through December 3 I, 2002 that is required to be reported under Minn. Stat. § 116J.993 and § 1 t 6J.9947 (Mark one.) DYes (Complete the remainder of the form.) ClNo (Stop here, go to section S on page 4.) Section 2 Recipient Information 14. Name of business or organization receiving subsidy or financial assistance 15. Address where business subsidy or financial assistance will be used Street address City State ZIP code 16. Does the recipient have a parent corporation? (Mark one.) [] Yes (Indicate name and address of parent corporation below, lf more than one, indicate ultimate owner.) [] No Name of parent corporation Street address City State ZIP code 2003 Minnesota Business Assistance Form (I/13/03) Page 1 of 4 Dept. of Trade & Economic Development 17. Industry of recipient's facility (Mark one.): [D Manufacturing [3 Services O Retail Trade [3 Wholesale Trade Finance, Insurance, Real Estate Construction D Other (please specify') 18. Did the recipient relocate as a result of signing this agreement? (Mark one.) El Yes (Indicate city and state of previous address and reason recipient did not complete this project at that address.) ~ No (Go to Question 19.) City/State of previous address Reason project not completed at previous address 19. Would the recipient have remained in previous location or relocated elsewhere if not awarded this business subsidy or financial assistance? (Mark one.) [3 Remained at previous location t21 Relocated to different Minnesota location [3 Relocated outside Minnesota Section 3 Agreement Information 20. Total dollar value of business subsidy or financial assistance (Please separate value by (ype in Questions 24 and 25.) 21. Date agreement signed (In addition to the agreement date, indicate any dates the agreement was amended.) 22. Benefit date (Indicate the date the recipient will benefit from the business subsidy or financial assistance. For example, indicate the date improvements were finished, equipment was placed into service, or the recipient occupied the property, whichever is earlier.) 23. Does the agreement provide a business subsidy or one of the four types of financial assistance (see Question 25) required to be reported? (Mark one.) El business subsidy [3 financial assistance 24. If the agreement provided a business subsidy, please indicate the type(s) and total dollar value for each type. not applicable, agreement provided financial assistance El loan (only principal) $ El grant (i.e., forgivable loan) $__ 021 tax abatement $ {D TIP or other tax reduction or deferral [3 guarantee of payment [3 contribution of property or infrastructure $__ D preferential use of governmental facilities $__ [3 land contribution $ El other (Specify subsidy type.) $__ 26. If the assistance included tax increment financing, please indicate the type of TIF district? (Mark one.) not applicable, assistance was not in the form of TIF 25. if the assistance was one of the four types of financial assistance, please indicate the type(s). D not applicable, agreement provided a business subsidy $ $ El assistance for property polluted by contaminants O assistance for renovating building stock or bringing it up to code, and assistance provided for designated historic preservation districts, when 50% or less of total cost [3 assistance for pollution control or abatement El assistance for a T1F soils condition district 27. Are any other grantors providing a business subsidy or financial assistance to the same project? (Mark one.) El redevelopment El renewal and renovation El soils condition ~3 economic development [3 mined underground space El hazardous substance subdistrict Yes (Specify each grantor and the v'alue of their assistance below; attach an additional sheet if necessary.) [3 No Grantor(s) and value of the agreement(s): Grantor Value ($) Grantor Value ($) 2003 Minnesota Business Assistance Form (I/13/03) Page 2 of 4 Dept. of Trade & Economic Development ;ection 4 Goals and Public Purpose Identified in the Agreement 28. Minn. Stat. §116J.994 requires that business subsidy and financial assistance agreements state a public purpose. Which of the following public purposes were slated in the agreement? (Mark all that apply.) Fl Enhancing economic diversity El Increasing tax base (cannot be only purpose) Fl Creating high-quality job growth FI Other (please specify). Fl Job retention Fl Stabilizing the community 29. Indicate whether the agreement included the following types of goals, and whether the recipient had anained those goals at the time of this report. (Fill in the boxes and attainment date(s) for each goal.) A) Specific wage and job goals to be attained within 2 years B) Other job-creation and/or retention goals C) Other wage goals D) Other goals other than wage and job goals (Please attach descriptions of goals and progress toward attainment if not documented in Questions 30 and 31.) Goals Target attainment All goals established? dates (month & year) attained? Fl Yes ~ No El Yes [3 No El Yes El No El Yes [3 No El Yes [3 No El Yes El No El Yes El No El Yes D No 30. For each of the following wage categories, indicate the job creation and/or retenliongoals stated in the agreemenl and the average hourly value of any employer-provided health insurancegoals for those jobs. (Only indicate job creation goals in full-time equivalents if you are unable to separate goals by full- and part-time positions.) Full-time Part-time/ FTE (only if goals not Hourly Wage Job SeasonaFTemp. stated as FY/PT) Job Retention Hourly Value of (excluding benefits) Creation Job Creation Job Creation Health Insurance no hourly wage-level goal S less than $7.00 S $7.00 to $8.99 $9.00 to $10.99 $11.00 to $12.99 s $13.00 to $14.99 s $15.00 and higher s 31. For each of the following wage categories, indicate the number of actual jobs created and/or retained since the benefit date and the actual hourly value of any employer-provided health insurance for those jobs. (Only indicate job creation in full-time equivalents if you are unable to separate job creation into full- and part-time positions.) Full-time Part-time/ FTE (only. if unable to Hourly Wage Job Seasonal/Temp. separate FT/I~T) Job Retention Hourly Value of (excluding benefils) Creation Job Creation Job Creation Health Insurance less than $7.00 $7.00 to $8.99 S9.00 to $10.99 $--- $11.00 to $12.99 s $13.00 to $14.99 s $15.00 and higher $ 32. Has the recipient achieved all goals (see Questions 29, 30 and 3 I) and fulfilled all obligations stipulated in the agreement? (Mark one.) Fl Yes Fl No 2003 Minnesota Business Assistance Form (1/13/03) Page 3 of 4 Dept. of Trade & Economic Development Section 5 Recipients Failing to Fulfill Obligations Do not com?lete this section if you comtvteted it on another 2002 MBAF submitted to DIED.) 33. During the period January I, 2002 through December 31, 2002, did your organization have any recipients who failed to report as required by Minn. Stat. §116J.993 and §116J.9947 (Mark one.) CI Yes (Indicate the name of each recipient fai]ing to report and the value of subsidy or financial assistance awarded to that recipient. Attach additional pages if necessary.) D No Name of recipient Type of subsidy or assistance (See Questions 24 and 25.) Value of subsidy or assistance 34. Did your organization have any recipients who failed to achieve any goals or fulfill any other obligations under an agreement signed on or after Janua~ I, 2002, that were required to be fulfilled by the time of this report? (Mark one.) Yes (Complete the remainder of this section.) El No (Stop here and submit form to DTED .) 35. - 39. Provide the following information for each recipient failing to fulfill goals or any other terms of an agreement that were to be anained by the time of reporting. (Attach additionalpages if necessary.) 35. Information on recipient and agreement: Name of recipient in default Type of subsidy or assistance Initial value of subsidy or assistance Street address of recipient City/ZIP code of recipient Outstanding value of subsidy or assistance 36. Reason(s) for default (Mark all that apply.,): El recipient ceased operation El recipient was unable to fill vacant positions El recipient relocated to a different community El other (Specify reason.) 37. To date, has the recipient fulfilled its repayment obligation? (Mark one.) El Yes El No, recipient has begun to repay the assistance. El No, recipient has not begun to repay the assistance. 38. Has the agreement been amended to extend the recipient's deadline for fulfilling its obligations? (Mark one.) El Yes El No 39- Describe the steps being taken to bring recipient into compliance or recoup the subsidy Return your completed MBAF(s) by Apri? 1, 2003, to: 2002 Minnesota Business Assistance Form Minnesota Department of Trade and Economic Development - AEO 500 Metro Square, 121 East 7'h Place St. Paul, MN 55101-2146 Or fax to: (651) 215-3841 2003 Minnesota Business Assistance Form (I/13/03) Page 4 0f4 Dept. of Trade & Economic Development APPENDIX F REDEVELOPMENT QUALIFICATIONS FOR THE DISTRICT APPENDIX City of Columbia Heights TIF Eligibility Assessment Proposed K-Mart Renewal and Renovation TIF District Columbia Heights, MN August 18, 2003 Prepared by: Short Elliott Hendrickson, Inc. (SEH) Butler Square Building, Suite 710C 100 North 6~h Street Minneapolis, MN 55403 SEH No. A-COLHT0306.00 City of Columbia Heights K-Mart Renewal and Renovation TIF District August 18, 2003 PURPOSE Short Elliott Hendrickson, Inc. (SEH) was hired by the City of Columbia Heights, Minnesota, to survey and evaluate the properties within the proposed K-Mart Tax Increment Financing (TIF) District. The proposed district is generally located on the east side of Central Avenue between 47th and 49th Avenues. The purpose of our work was to independently ascertain whether the qualification tests for tax increment eligibility, as required under Minnesota Statute, could be met. The findings and conclusions drawn herein are solely for the purpose of tax increment eligibility and are not intended to be used outside the scope of this assessment. SCOPE OF WORK The proposed district consists of 6 parcels comprised of the following types of improvements: 6 commercial structures on 6 parcels. EVALUATIONS Interior and exterior inspections were completed for all buildings. FINDINGS Coverage Test - 6 of the 6 properties met the coverage test resulting in 100% area coverage. This exceeds the 70% area coverage requirement. Condition of Buildings Test - 33 percent of the buildings - 2 of the 6 buildings - were found to be "structurally substandard" when considering code deficiencies and other deficiencies of sufficient total significance to justify substantial renovation or clearance (see definition of "structurally substandard" as follows). This exceeds the Condition of Buildings Test whereby 20% of buildings, not including outbuildings, must be found "structurally substandard." Existing Conditions Test - 66 percent of the buildings - 4 of the 6 buildings - were found to have "existing conditions" requiring substantial renovation or clearance to correct (see definition of "existing conditions" as follows). This exceeds the Existing Conditions Test whereby 20% of buildings must be found "structurally substandard" (see above) and 30% of the other buildings must be found to have "existing conditions." CONCLUSION Our surveying and evaluating of the properties within this proposed Redevelopment District render results that in our professional opinion qualify the district eligible under the statutory criteria and formulas for a Renewal and Renovation Tax Increment Financing District (State Statute 469.174 Subd. 10a). SUPPORTING DOCUMENTS ATTACHED - Site Occupied/Building Substandard Determination table - TIF Assessment maps: Buildings Under Study, Occupied Surfaces, Percent Occupied by Parcel - Report on Building Condition (one per building) Individual Building Summary Report (one per building) - Report on Substantial Renovation or Clearance to Remove Existing Conditions (one per building) PROCEDURAL REQUIREMENTS The properties were surveyed and evaluated in accordance with the following requirements under Minnesota Statute Section 469.174, Subdivision 10, clause (c) which states: Interior Inspection - "The municipality may not make such determination [that the building is structurally substandard] without an interior inspection of the property..." Exterior Inspection and Other Means - "An interior inspection of the property is not required, if the municipality finds that (1) the municipality or authority is unable to gain access to the property; and after using its best efforts to obtain permission from the party that owns or controls the property; and (2) the evidence otherwise supports a reasonable conclusion that the building is structurally substandard." Documentation - "Written documentation of the building findings and reasons why an interior inspection was not conducted must be made and retained under section 469.175, subdivision 3, clause (1)." Interior inspections were completed for all buildings; therefore, documentation is not necessary for these purposes. PROCEDURES FOLLOWED TO MEET REQUIREMENTS The City of Columbia Heights sent letters to all property owners located in the district requesting that an inspection and evaluation be made of their property. SEH conducted assessments on July 14 and 15, 2003. Requests for evaluation appointments were made with the building owner or building tenants. An interior inspection and evaluation was completed following the owner's consent. In all cases, an exterior evaluation was completed. For all subject buildings, the City of Columbia Heights provided a record of all available building permits. These permits provide a basic description of type of work completed for each permit (Building, Electrical, or Plumbing, scope of work). QUALIFICATION REQUIREMENTS The properties were surveyed and evaluated to ascertain whether the qualification tests for tax increment eligibility for a redevelopment district, required under the following Minnesota Statutes, could be met. Minnesota Statute Section 469.174, Subdivision 10a, clause (a) (1) requires three tests for occupied parcels: I. Coverage Test - "parcels consisting of 70 percent of the area of the district are occupied by buildings, streets, utilities, paved or gravel parking lots or similar structures..." Note: The coverage required by the parcel to be considered occupied is defined under Minnesota Statute Section 469.174, Subdivision 10, clause (e) which states: "For purposes of this subdivision, a parcel is not occupied by buildings, streets, utilities, paved or gravel parking lots or other similar structures unless 15% of the area of the parcel contains buildings, streets, utilities, paved or gravel parking lots or other similar structures." 2. Condition of Buildings Test - "20 percent of the buildings are structurally substandard;" The term 'structurally substandard', as used in the preceding paragraph, is defined by a two-step test: Conditions Test: Under the tax increment law, specifically, Minnesota Statutes, Section 469.174, Subdivision 10, clause (b), a building is structurally substandard if it contains "defects in structural elements or a combination of deficiencies in essential utilities and facilities, light and ventilation, fire protection including adequate egress, layout and condition of interior partitions, or similar factors, which defects or deficiencies are of sufficient total significance to justify substantial renovation or clearance." Code Test: Notwithstanding the foregoing, the tax increment law, specifically, Minnesota Statutes, Section 469.174, Subdivision 10, clause (c) also provides that a building may not be considered structurally substandard if it: "... is in compliance with building code applicable to new buildings or could be modified to satisfy the building code at a cost of less than 15 percent of the cost of constructing a new structure of the same square footage and type on the site." Based on the above requirements, the substandard determination of a particular building is a two-step process; therefore, the findings of each step are independent of each other and both steps must be satisfied in order for a building to be found structurally substandard. It is not sufficient to conclude that a building is structurally substandard solely because the Code Test is satisfied. It is theoretically possible for a building to require extensive renovation in order to meet current building codes but still not meet the main test of the Conditions Test. 4 Furthermore, deficiencies included in the Conditions Test may or may not include specific code deficiencies as listed in the Code Test. In many cases, specific building code deficiencies may well contribute to the data which supports satisfying the Conditions Test; conversely, it is certainly possible that identified hazards or other deficiencies which could be included in the Conditions Test do not necessarily constitute current building code deficiencies. By definition, the nature of the two steps is slightly different. The Conditions Test is more subjective, whereas the Code Test is an objective test. Conditions Test deficiencies are less technical and not necessarily measurable to the same extent of the code deficiencies in the Code Test. To the end that technical, measurable building code deficiencies support the satisfaction of the less technical Conditions Test, the following code requirements are defined in terms that go beyond the technical requirements of the code and demonstrate their relevance in terms of".., deficiencies in essential utilities and facilities, light and ventilation, etc..." International Building Code (IBC): The purpose of the IBC is to provide minimum standards to safeguard public health, safety and general welfare through structural strength, means of egress facilities, stability, sanitation, adequate light and ventilation, energy conservation, and safety to life and property from fire and other hazards attributed to the built environment (IBC 101.3). A deficiency in the building code (insufficient number of building exits, insufficient door landing area, etc.) adversely affects one or more of the above standards to safeguard 'public health...and safety to life'; therefore, a deficiency in the building code is considered a deficiency in one or more "essential utilities and facilities, light and ventilation, etc.". Minnesota Accessibility Code, Chapter 1341: This chapter sets the requirements for accessibility all building occupancies. The Minnesota Accessibility Code closely follows the Americans with Disabilities Act. Accessibility Guidelines (ADAAG), which sets the guidelines for accessibility to places of public accommodations and commercial facilities as required by the Americans with Disabilities Act (ADA) of 1990. The ADA is a federal anti-discrimination statute designed to remove barriers that prevent qualified individuals with disabilities from enjoying the same opportunities that are available to persons without disabilities (ADA Handbook). Essentially, a deficiency in the accessibility code (lack of handrail extension at stairs or ramp, lack of clearance at a toilet fixture, etc.) results in a discrimination against disabled individuals; therefore, a deficiency in the accessibility code is considered a deficiency in "essential utilities and facilities". Minnesota Food Code, Chapter 4626: This chapter is enforced by the Minnesota Department of Health and is similar to the IBC in that it provides minimum standards to safeguard public health in areas of public/commercial food preparation. A deficiency in the food code (lack of non-absorbent wall or ceiling finishes, lack of hand sink, etc.) causes a condition for potential contamination of food; therefore, a deficiency in the food code is considered a deficiency in "essential utilities and facilities". National Electric Code (NEC): The purpose of the NEC is the practical safeguarding of persons and property from hazards arising from the use of electricity. The NEC contains provisions that are considered necessary for safety (NEC 90-1 (a) and (b)). A deficiency in the electric code (insufficient electrical service capacity, improper wiring, etc.) causes a hazard from the use of electricity; therefore, a deficiency in the electric code is considered a deficiency in "essential utilities and facilities". International Mechanical Code (IMC): The purpose of the IMC is to provide minimum standards to safeguard life or limb, health, property and public welfare by regulating and controlling the design, construction, installation, quality of materials, location, operation, and maintenance or use of mechanical systems (IMC 101.3). The IMC sets specific requirements for building ventilation, exhaust, intake and relief. These requirements translate into a specified number of complete clean air exchanges for a building based on its occupancy type and occupant load. A deficiency in the mechanical code adversely affects the 'health. .. and public welfare' of a building's occupants; therefore, a deficiency in the mechanical code is considered a deficiency in "light and ventilation". Note: The above list represents some of the more common potential code deficiencies considered in the assessment of the buildings in the proposed district. This list does not necessarily include every factor included in the data used to satisfy Step 1 for a particular building. Refer to individual building reports for specific findings. Finally, the tax increment law provides that the municipality may find that a building is not disqualified as structurally substandard under the Code Test on the basis of "reasonably available evidence, such as the size, type, and age of the building, the average cost of plumbing, electrical, or structural repairs, or other similar reliable evidence. Items of evidence that support such a conclusion [that the building is structurally substandard] include recent fire or police inspections, on-site property appraisals or housing inspections, exterior evidence of deterioration, or other similar reliable evidence." 3. Existing Conditions Test - "... and 30 percent of the other buildings require substantial renovation or clearance to remove existing conditions such as: inadequate street layout, incompatible uses or land use relationships, overcrowding of buildings on the land, excessive dwelling unit density, obsolete buildings not suitable for improvement or conversions, or other identified hazards to the health, safety, and general well-being of the community;" MEASUREMENTS AGAINST TECHNICAL TEST REQUIREMENTS Coverage Test SEH utilized a GIS (Geographic Information Systems) system database, available through Anoka County and the City of Columbia Heights, to obtain individual parcel information. The GIS system contains graphic information (parcel shapes) and numerical data based on county tax records. This information was used by SEH for the purposes of this assessment. The total square foot area of each property parcel was obtained from county records (GIS) and general site verification. The total extent of site improvements on each property parcel was digitized from recent aerial photography (Spring, 2000). The total square footage of site improvements was then digitally measured and confirmed by general site verification. The total percentage of coverage of each property parcel was computed to determine if the 15% requirement was met. Refer to attached maps: Occupied Surfaces map and Percent Occupied by Parcel map. The total area of all qualifying property parcels was compared to the total area of all parcels to determine if the 70% requirement was met. Condition of Building Test Replacement Cost - the cost of constructing a new structure of the same size and type on site: R. S. Means Square Foot Costs (2003) was used as the industry standard for base cost calculations. R. S. Means is a nationally published reference tool for construction cost data. The book is updated yearly and establishes a "national average" for materials and labor prices for all types of building construction. The base costs derived from R. S. Means were reviewed, and modified if applicable, against our professional judgment and experience. A base cost was calculated by first e. stablishing building type, building construction type, and construction quality level (residential construction) to obtain the appropriate Means cost per square foot. This cost was multiplied times the building square footage to obtain the total replacement cost for an individual building. Additionally, to account for regional/local pricing, a cost factor was added to the total cost according tO R.S. Means tables. Using R. S. Means, consideration is made for building occupancy, building size, and construction type; therefore, the cost per square foot used to construct a new structure will vary accordingly. Building Deficiencies: Conditions Test (Condition Deficiencies) - determining the combination of defects or deficiencies of sufficient total significance to justify substantial renovation or clearance. On-Site evaluations - Evaluation of each building was made by reviewing available information from city records and making interior and/or exterior evaluations, as noted, sometimes limited to public spaces. Deficiencies in structural elements, essential utilities and facilities, light and ventilation, fire protection including adequate egress, layout and condition of interior partitions, or similar factors, were noted by the evaluator. Condition Deficiencies may or may not include Code Deficiencies as defined below. Energy code compliance was not considered for the purposes of determining Condition Deficiencies. Deficiencies were combined and summarized for each building in order to determine their total significance. Building Deficiencies: Code Test (Code Deficiencies) - determining technical conditions that are not in compliance with current building code applicable to new buildings and the cost to correct the deficiencies: On-Site evaluations - Evaluation of each building was made by reviewing available information from city records and making interior and/or exterior evaluations, as noted, sometimes limited to public spaces. On-site evaluations were completed using a standard checklist format. The standard checklist was derived from several standard building code plan review checklists and was intended to address the most common, easily identifiable code deficiencies. Mechanical Engineers, Electrical Engineers, and Building Code Officials were also consulted in the development of the checklist. Deficiencies were generally grouped into the following categories (category names are followed by its applicable building code): · Building accessibility- Minnesota Accessibility Code · Building egress, building construction - International Building Code · Fire protection systems - International Building Code · Food service - Minnesota Food Code · HVAC (heating, ventilating, and air conditioning) - International Mechanical Code · Electrical systems - National Electric Code and Minnesota Energy Code · Energy code compliance - Minnesota Energy Code For the purposes of determining the Code Test (Code Deficiencies), Energy code compliance is relevant because its criteria affect the design of integral parts of a majority of a building's systems. The intent of these criteria is to provide a means for assuring building durability, and permitting energy efficient operation (7676.0100). The energy code addresses general building construction (all forms of energy transmission in an exterior building envelope - walls, roofs, doors and windows, etc.) and energy usage by lighting and mechanical systems. A deficiency in the energy code (inadequate insulation, non-insulated window systems, improper air infiltration protection, etc.) reduces energy efficient operation and adversely affects building system durability; therefore, a deficiency in the energy code is considered to contribute to a condition requiting substantial renovation or clearance. Office evaluations - Following the on-site evaluation, each building was then reviewed, based on on-site data, age of construction, building usage and occupancy, square footage, and known improvements (from building permit data), and an assessment was made regarding compliance with current mechanical, electrical, and energy codes. A basic code review was also completed regarding the potential need for additional egress (basement stairways, for example), sprinkler systems, or elevators. Deficiency Cost - Costs to correct identified deficiencies were determined by using R. S. Means Cost Data and our professional judgment and experience. In general, where several items of varying quality were available for selection to correct a deficiency, an item of average cost was used, as appropriate for typical commercial or residential applications. Actual construction costs are affected by many factors (bidding climate, size of project, etc.). Due to the nature of this assessment, we were only able to generalize the scope of work for each correction; that is to say that detailed plans, quantities, and qualities of materials were not possible to be known. Our approach to this matter was to determine a preliminary cost projection suitable to the level of detail that is known. This process was similar to our typical approach for a cost projection that may be given to an owner during a schematic design stage of a project. Costs to correct deficiencies were computed for each building and compared to the building replacement cost to determine if the 15% requirement was met. The total number of buildings determined to be "structurally substandard" by satisfying both the Conditions Test and the Code Test in this manner was compared to the total number of buildings in the proposed district to dete _rmine if the 20% requirement was met. Technical Conditions Resources - the following list represents the current building codes applicable to new buildings used in the Bui.lding Deficiency review: 2003 Minnesota State Building Code 2000 International Building Code 2000 International Housing Code. MN 134I - Minnesota Accessibility Code, Chapter 1341 (1999) 2000 Minnesota Energy Code, Chapters 7672, 7674, or 7676 1999 National Electric Code 2000 International Mechanical Code Existing Conditions Test - Determining buildings that require renovation or clearance to remove existing conditions: Existing Conditions - Conditions such as inadequate street layout, incompatible uses or land use relationships, overcrowding of buildings on the land, excessive dwelling unit density, obsolete buildings not suitable for improvement or conversion, or other identified hazards to the health, safety, and general well- being of the community, were noted by the evaluator. Data on conditions was collected by the evaluator based on actual site review, discussion with city staff, and building code review. The total number of buildings determined to have existing conditions in this manner was compared to the total number of buildings in the district. If 20% of the buildings were determined to be structurally substandard (see above) and 30% of the other buildings were determined to have existing conditions (combination of the two findings must be equal to or greater than 50%), then the requirement is satisfied. Reports on Building Conditions, Individual Building Summary Reports, and Substantial Renovation or Clearance to Remove Existing Conditions are available for review at the offices of SEH, the City of Columbia Heights and Kennedy & Graven, Chartered, Minneapolis. PROJECT TEAM: Leon A. Grothe, AIA, Project Architect Jason P. Zemke, AIA, Project Manager 10 BITE oCCLIPIED/BUILDING BUBSTANDARD DETERMINATION CITY OF COLUMBIA HEIGHTS RENEWAL AND RENOVATION ELIGIBILITY ABBESSMENT MAP TYPE OF SITE AREA COVERAGE SITE COVERAGE TOTAL # # # EXISTING ID FULL NAME OCCUPATION (s.f.I % COVERAGE (s.f.) QUANTITY BUILDINGS SUBSTANDARD CONDITIONS 1 HOLLYWOOD VIDEO/SAVERS BUILDING/PAVED LOT 153009,5894 74,54 114051.49 153009.5894 1 I 1 "2 BUFFALO WILD WINGS BUILDING/PAVED LOT 57361.64819 87.86 50395.57 57361.64819 1 0 0 3 WELLEAUTO BUILDING/PAVED LOT 42559,7002 100.00 42455,08 42559.7002 I I 1 4 SUBWAY/EL BUSTAN BUILDING/PAVED LOT 47438.0625 96.05 45564.55 47438,0625 I 0 1 5 KMART BUILDING/PAVED LOT 589576,8435 77.94 459498.23 589576.8435 I 0 1 6 ARBY'S BUILDING/PAVED LOT 48700.76245 88.67 43183.52 48700,76245 I 0 0 TOT,A~~~~- . . IIII 'i'~'~''~''' .... ' .... ~ ......... '-'~ .... -- .............. -----~' ....... 49TH-AVE CITY OF COLUMBIA HEIGHTS NORTH o lOO REDEVELOPMENT ELIGIBILITY ASSESSMENT Buildings Under Study 20O i Feet 47TH AVE ILegend ~ Pro~ect Boundary Buildings Under Study I ~, ';:' ~30REALIS I1~ I KHy. B ER Lr,I · 'i CHEERY LN Coordinate System (ft) Anoka Courtly, NAD 83 Source:City of Columbia Heights, and SEH. CITY OF COLUMBIA HEIGHTS REDEVELOPMENT ELIGIBILITY ASSESSMENT Occupied Surfaces 47TH AVE 1-- NORTH 0 100 2OO ~ Feet Legend ~ Pro~ect Boundary --'-'l Parcels Occupied Area ! KHY.B E R LN Coordinate System (fi) Anoka County. NAD 83 Source:City of Columbia Heights, and SEH. g 49TH-AVE CITY OF COLUMBIA HEIGHTS REDEVELOPMENT ELIGIBILITY ASSESSMENT NORTH 0 100 Percent Occupied By Parcel 47TH AVE ! KHY. BER LN 200 I Feet Legend Illl Project Boundary FII Parcels Percent Occupied I o % Occ~apied III 1 - 15 % Occupied ~ · 15 % Occupied Coordinate System (fi) Az~oka County, NAD 83 Source:City ol Columbia Heights, and SEH. Report on Substantial Renovation or Clearance to Remove Existing Conditions Building ID/Business Name/Address: Hollywood Video/Savers Building requires substantial renovation or clearance to remove existing conditions (Y/N): Under the tax increment law, specifically, Minnesota Statutes, Section 469.174, Subdivision 10a, paragraph a. 1.iii, requires that at least 30 percent of the buildings in a Renewal and renovation district "require substantial renovation or clearance to remove existing conditions such as: inadequate street layout, incompatible uses or land use relationships, overcrowding of buildings on the land, excessive dwelling unit density, obsolete buildings not suitable for improvement or conversion, or other identified hazards to the health, safety, and general well-being of the community." The above building, based upon actual interior inspection, review of building permit records, site observation, and discussion with City of Columbia Heights staff, requires substantial renovation or clearance to remove the following existing conditions: Incompatible Uses or Land Use Relationship · Building is poorly located on site, resulting in deficient loading dock area, which may prohibit or limit other kinds of uses Obsolete Building not suitable for Improvement or Conversion The estimated cost to modify the existing building to satisfy current building code exceeds 20% of the cost of building replacement. Refer to Individual Building Summary Report for documentation of specific code deficiencies. Report on Substantial Renovation or Clearance to Remove Existing Conditions Building ID/Business Name/Address: Buffalo Wild Wings Building requires substantial renovation or clearance to remove existing conditions (Y/N): Under the tax increment law, specifically, Minnesota Statutes, Section 469.174, Subdivision 10a, paragraph a. 1.iii, requires that at least 30 percent of the buildings in a Renewal and renovation district "require substantial renovation or clearance to remove existing conditions such as: inadequate street layout, incompatible uses or land use relationships, overcrowding of buildings on the land, excessive dwelling unit density, obsolete buildings not suitable for improvement or conversion, or other identified hazards to the health, safety, and general well-being of the community." The above building, based upon actual interior inspection, review of building permit records, site observation, and discussion with City of Columbia Heights staff, requires substantial renovation or clearance to remove the following existing conditions: Inadequate Street Layout · Building/site does not have its own access drive: vehicle access occurs through adjacent property Other Identified Hazards to Health, Safety, and General Well-Being of the Community · Building deficient in meeting various current building code requirements. Refer to Individual Building Summary Report for documentation of specific code deficiencies. Report on Substantial Renovation or Clearance to Remove Existing Conditions Building ID/Business Name/Address: Weile Auto 3-__[ Building requires substantial renovation or clearance to remove existing conditions (Y/N): Under the tax increment law, specifically, Minnesota Statutes, Section 469.174, Subdivision 10a, paragraph a.l.iii, requires that at least 30 percent of the buildings in a Renewal and renovation district "require substantial renovation or clearance to remove existing conditions such as: inadequate street layout, incompatible uses or land use relationships, overcrowding of buildings on the land, excessive dwelling unit density, obsolete buildings not suitable for improvement or conversion, or other identified hazards to the health, safety, and general well-being of the community." The above building, based upon actual interior inspection, review of building permit records, site observation, and discussion with City of Columbia Heights staff, requires substantial renovation or clearance to remove the following existing conditions: Obsolete Building not suitable for Improvement or Conversion · The estimated cost to modify the existing building to satisfy current building code exceeds 15% of the cost of building replacement. Refer to Individual Building Summary Report for documentation of specific code deficiencies. Report on Substantial Renovation or Clearance to Remove Existing Conditions Building ID/Business Name/Address: Subway/El Bustan Building requires substantial renovation or clearance to remove existing conditions (Y/N): Under the tax increment law, specifically, Minnesota Statutes, Section 469.174, Subdivision 10a, paragraph a. l.iii, requires that at least 30 percent of the buildings in a Renewal and renovation district "require substantial renovation or clearance to remove existing conditions such as: inadequate street layout, incompatible uses or land use relationships, overcrowding of buildings on the land, excessive dwelling unit density, obsolete buildings not suitable for improvement or conversion, or other identified hazards to the health, safety, and general well-being of the community." The above building, based upon actual interior inspection, review of building permit records, site observation, and discussion with City of Columbia Heights staff, requires substantial renovation or clearance to remove the following existing conditions: Obsolete Building not suitable for Improvement or Conversion · The estimated cost to modify the existing building to satisfy current building code exceeds 10% of the cost of building replacement. Refer to Individual Building Summary Report for documentation of specific code deficiencies. · 'Non-public' areas such as kitchen and storage areas of both restaurants contain functional and mechanical deficiencies due to inefficient use of space/layout of partitions relative to new restaurants Report on Substantial Renovation or Clearance to Remove Existing Conditions Building ID/Business Name/Address: KMart. Building requires substantial renovation or clearance to remove existing conditions (Y/N): Under the tax increment law, specifically, Minnesota Statutes, Section 469.174, Subdivision 10a, paragraph a. 1.iii, requires that at least 30 percent of the buildings in a Renewal and renovation district "require substantial renovation or clearance to remove existing conditions such as: inadequate street layout, incompatible uses or land use relationships, overcrowding of buildings on the land, excessive dwelling unit density, obsolete buildings not suitable for improvement or conversion, or other identified hazards to the health, safety, and general well-being of the community." The above building, based upon actual interior inspection, review of building permit records, site observation, and discussion with City of Columbia Heights staff, requires substantial renovation or clearance to remove the following existing conditions: Incompatible Uses or Land Use Relationship · The existing site is not suited well for 'big box' retail uses, according to current market trends for the area; building is currently vacant Obsolete Building not suitable for Improvement or Conversion · The estimated cost to modify the existing building to satisfy current building code exceeds 15% of the cost of building replacement. Refer to Individual Building Summary Report for documentation of specific code deficiencies. · The building site, construction type, and layout is not suited well for any other use besides 'big box' retail without major renovation Report on Substantial Renovation or Clearance to Remove Existing Conditions Building ID/Business Name/Address: Arby's Building requires substantial renovation or clearance to remove existing conditions (Y/N): Under the tax increment law, specifically, Minnesota Statutes, Section 469.174, Subdivision 10a, paragraph a. I .iii, requires that at least 30 percent of the buildings in a Renewal and renovation district "require substantial renovation or clearance to remove existing conditions such as: inadequate street layout, incompatible uses or land use relationships, overcrowding of buildings on the land, excessive dwelling unit density, obsolete buildings not suitable for improvement or conversion, or other identified hazards to the health, safety, and general well-being of the community." The above building, based upon actual interior inspection, review of building permit records, site observation, and discussion with City of Columbia Heights staff, requires substantial renovation or clearance to remove the following existing conditions: Other Identified Hazards to Health, Safety, and General Well-Being of the Community · Building deficient in meeting various current building code requirements. Refer to Individual Building Summary Report for documentation of specific code deficiencies. Report on Building Condition Building ID/Business Name/Address: Holl.ywood Video/Savers Satisfies Conditions Test for Structurally Substandard Building: Satisfies Code Test for Structurally Substandard Building: Structurally Substandard Building (Y/N): Conditions Test Under the tax increment law, specifically, Minnesota Statutes, Section 469.174, Subdivision 10, a building is structurally substandard if it contains "defects in structural elements or a combination of deficiencies in essential utilities and facilities, light and ventilation, fire protection including adequate egress, layout and condition of interior partitions, or similar factors, which defects or deficiencies are of sufficient total significance to justify substantial renovation or clearance." The above building, based upon actual interior and exterior inspection and review of building permit records, exhibits the following deficiencies that in our professional opinion contribute to justifying substantial renovation or clearance: Structural Elements · Defects in exterior building shell: settlement cracking in seventy five percent of the height of the exterior concrete block wall on south side. · Concrete block demising wall at stair to exterior is in poor condition with holes and settlement cracking. Essential Utilities & Facilities · Deficient in facilities for disabled: lack of designated disability parking (van) available; lack of accessible hardware on interior doors; lack of maneuvering clearance and accessible features in toilet rooms; toilet fixtures lack adjacent non-absorbent wall surface; inaccessible features for employee breakroom areas; inaccessible drinking fountain (height). · Installation of elevator required: second floor employee spaces required to be on accessible route. Light & Ventilation · Deficient in meeting Mechanical code: for building construction prior to 1989, mechanical systems do not provide sufficient number of air exchanges; air handling unit in storage space on second floor without ductwork, fresh air exchange and filter. Fire Protection/Egress · Deficient exterior door: insufficient door landing area at bottom of stair; deficient threshold height. · Deficient emergency egress: door at bottom landing from retail space swings in opposite direction of travel. · Deficient interior stairway: deficient rise/run dimensions; deficient handrail height and extensions; additional handrail required. Similar Factors · Defects in exterior building shell: paint peeling on south exterior wall; storefront window frames and seals in poor condition at Hollywood Video. · Loading dock area is relatively small (appears inadequate) at Savers. Code Test Notwithstanding the foregoing, the tax increment law also provides that a building may not be considered structurally substandard if it is in compliance with the building code applicable to new buildings or could be modified to satisfy the current building code at a cost of less than 15% of the cost of constructing a new building of the same square footage and type on the same site. Estimated cost of new building of same size and type (Total Replacement Cost): $2,751,268.07 Estimated cost of correction of code deficiencies (Total Deficiency Cost): $578,574.52 Percentage of Code Deficiency to Replacement Cost: 21.03% Refer to Individual Building Summary Report for documentation of specific code deficiencies. Report on Building Condition Building ID/Business Name/Address: Satisfies Conditions Test for Structurally Substandard Building: Satisfies Code Test for Structurally Substandard Building: Structurally Substandard Building (Y/N): Buffalo Wild Wings Conditions Test Under the tax increment law, specifically, Minnesota Statutes, Section 469.174, Subdivision 10, a building is structurally substandard if it contains "defects in structural elements or a combination of deficiencies in essential utilities and facilities, light and ventilation, fire protection including adequate egress, layout and condition of interior partitions, or similar factors, which defects or deficiencies are of sufficient total significance to justify substantial renovation or clearance." The above building, based upon actual interior and exterior inspection and review of building permit records, exhibits the following deficiencies that in our professional opinion contribute to justifying substantial renovation or clearance: Structural Elements · Defects in exterior building shell: minor settlement cracking in exterior concrete block wall on north side; concrete block deterioration due to moisture infiltration on north and south exterior walls. Essential Utilities & Facilities · Deficient in facilities for disabled: lack of accessible features in toilet rooms. · Deficient food prep area: insufficient hand sink clearance from clean areas; portion of kitchen wall panel and floor base tile need replacement. Light & Ventilation · Deficient in meeting Mechanical code: for building construction prior to 1989, mechanical systems do not provide sufficient number of air exchanges. Fire Protection/Egress · Deficient exterior door: insufficient door landing area. Similar Factors · Defects in exterior building shell: paint peeling on north and south exterior walls; minor brick deterioration on south exterior wall. · Wood siding rotting at grade at rear of building. Code Test Notwithstanding the foregoing, the tax increment law also provides that a building may not be considered structurally substandard if it is in compliance with the building code applicable to new buildings or could be modified to satisfy the current building code at a cost of less than 15% of the cost of constructing a new building of the same square footage and type on the same site. Estimated cost of new building of same size and .type (Total Replacement Cost): $917,435.70 Estimated cost of correction of code deficiencies (Total Deficiency Cost): $59,515.92 Percentage of Code Deficiency to Replacement Cost: 6.49 % Refer to Individual Building Summary Report for documentation of specific code deficiencies. Report on Building Condition Building ID/Business Name/Address: Satisfies Conditions Test for Structurally Substandard Building: Satisfies Code Test for Structurally Substandard Building: Structurally Substandard Building (Y/N): Welle Auto Conditions Test Under the tax increment law, specifically, Minnesota Statutes, Section 469.174, Subdivision 10, a building is structurally substandard if it contains "defects in structural elements or a combination of deficiencies in essential utilities and facilities, light and ventilation, fire protection including adequate egress, layout and condition of interior partitions, or similar factors, which defects or deficiencies are of sufficient total significance to justify substantial renovation or clearance." The above building, based upon actual interior and exterior inspection and review of building permit records, exhibits the following deficiencies that in our professional opinion contribute to justifying substantial renovation or clearance: Structural Elements · Defects in exterior building shell: stepped settlement cracking in exterior concrete block wall on north side. · Interior concrete block wall has horizontal separation/gap between block courses. Essential Utilities & Facilities · Deficient in facilities for disabled: lack of designated disability parking (van) available; lack of signage for existing disability parking space; lack of accessible hardware on interior doors; lack of maneuvering clearance and accessible features in toilet rooms. · Installation of drinking fountain required due to building occupancy. Light & Ventilation · Deficient in meeting Mechanical code: for building construction prior to 1989, mechanical systems do not provide sufficient number of air exchanges. Similar Factors · Defects in exterior building shell: exterior face of concrete block is spalling on north side. Code Test Notwithstanding the foregoing, the tax increment law also provides that a building may not be considered structurally substandard if it is in compliance with the building code applicable to new buildings or could be modified to satisfy the current building code at a cost of less than 15% of the cost of constructing a new building of the same square footage and type on the same site. Estimated cost of new building of same size and tyi>e (Total Replacement Cost): $937,589.25 Estimated cost of correction of code deficiencies (Total Deficiency Cost): $148,566.60 Percentage of Code Deficiency to Replacement Cost: 15.85 % Refer to Individual Building Summary Report for documentation of specific code deficiencies. Report on Building Condition Building ID/Business Name/Address: Satisfies Conditions Test for Structurally Substandard Building: Satisfies Code Test for Structurally Substandard Building: Structurally Substandard Building (Y/N): Subway/E! Bustan Conditions Test Under the tax increment law, specifically, Minnesota Statutes, Section 469.174, Subdivision I0, a building is structurally substandard if it contains "defects in structural elements or a combination of deficiencies in essential utilities and facilities, light and ventilation, fire protection including adequate egress, layout and condition of interior partitions, or similar factors, which defects or deficiencies are of sufficient total significance to justify substantial renovation or clearance." The above building, based upon actual interior and exterior inspection and review of building permit records, exhibits the following deficiencies that in our professional opinion contribute to justifying substantial renovation or clearance: Structural Elements · Defects in exterior building shell: open cores of concrete block foundation wall exposed at west wail. · Retaining walls at rear of building are failing. Essential Utilities & Facilities · Deficient in facilities for disabled: lack of signage for existing disability parking; lack of maneuvering clearance and accessible hardware at interior door; lack of maneuvering clearance and accessible features in toilet rooms. · Toilet fixtures lack adjacent non-absorbent wall surface. · Deficient food prep area: lack of non-absorbent wall and ceiling surface; 3 compartment sink required. Light & Ventilation Deficient in meeting Mechanical code: for building construction prior to 1989, mechanical systems do not provide sufficient number of air exchanges. Fire Protection/Egress · Deficient exterior door: deficient threshold height. · Deficient landing at stairs: insufficient landing area and handrails required (at three booths). Similar Factors · Defects in exterior building shell: wood siding at rear of building is rotting. Code Test Notwithstanding the foregoing, the tax increment law also provides that a building may not be considered structurally substandard if it is in compliance with the building code applicable to new buildings or could be modified to satisfy the current building code at a cost of less than 15% of the cost of constructing a new building of the same square footage and type on the same site. Estimated cost of new building of same size and type (Total Replacement Cost): $949,530.69 Estimated cost of correction of code deficiencies (Total Deficiency Cost): $97,859.68 Percentage of Code Deficiency to Replacement Cost: 10.31% Refer to Individual Building Summary Report for documentation of specific code deficiencies. Report on Building Condition Building ID/Business Name/Address: Satisfies Conditions Test for Structurally Substandard Building: Satisfies Code Test for Structurally Substandard Building: Structurally Substandard Building (Y/N): KMart 5-1 N Y Conditions Test Under the tax increment law, specifically, Minnesota Statutes, Section 469.174, Subdivision 10, a building is structurally substandard if it contains "defects in structural elements or a combination of deficiencies in essential utilities and facilities, light and ventilation, fire protection including adequate egress, layout and condition of interior partitions, or similar factors, which defects or deficiencies are of sufficient total significance to justify substantial renovation or clearance." The above building, based upon actUal interior and exterior inspection and review of building permit records, exhibits the following deficiencies that in our professional opinion contribute to justifying substantial renovation or clearance: Structural Elements · Defects in exterior building shell: minor parapet failure at northwest coruer. Essential Utilities & Facilities · Deficient in facilities for disabled: lack of signage for existing disability spaces; lack of maneuvering clearance and accessible hardware on interior doors; lack of maneuvering clearance and accessible features in toilet rooms; inaccessible drinking fountain (height); deficient ramp landing area;. additional handrails required at ramp. · Toilet fixtures lack adjacent non-absorbent wall surface. · Inaccessible features for employee breakroom areas. Light & Ventilation · Deficient in meeting Mechanical code: for building construction prior to 1989, mechanicaI systems do not provide sufficient number of air exchanges. Fire Protection/Egress · Deficient exterior door: insufficient door landing; deficient threshold height. · Deficient interior stairway: deficient rise/run dimensions; insufficient stair landing area; deficient handrail extensions and terminations; additional handrail/guardrail required. Similar Factors · Defects in exterior building shell: unpainted concrete block from previous wall repair is wet in area below roof scupper/downspout- moisture is seeping into interior face of exterior wall; minor moisture damage to interior and exterior faces of block wall on east wall; daylight visible from interior at roof deck on east wall at one location; roof membrane is bubbling/bulging in many areas. · Building is subjected to vandalism due to being vacant. Code Test Notwithstanding the foregoing, the tax increment law also provides that a building may not be considered structurally substandard if it is in compliance with the building code applicable to new buildings or could be modified to satisfy the current building code at a cost of less than 15% of the cost of constructing a new building of the same square footage and type on the same site. Estimated cost of new building of same size and type (Total Replacement Cost): $9,239,936.44 Estimated cost of correction of code deficiencies (Total Deficiency Cost): $1,804,739.62 Percentage of Code Deficiency to Replacement Cost: 19.53 % Refer to Individual Building Summary Report for documentation of specific code deficiencies. Report on Building Condition Building ID/Business Name/Address: Satisfies Conditions Test for Structurally Substandard Building: Satisfies Code Test for Structurally Substandard Building: Structurally Substandard Building (Y/N): Arbors Conditions Test Under the tax increment law, specifically, Minnesota Statutes, Section 469.174, Subdivision 10, a building is structurally substandard if it contains "defects in structural elements or a combination of deficiencies in essential utilities and facilities, light and ventilation, fire protection including adequate egress, layout and condition of interior partitions, or similar factors, which defects or deficiencies are of sufficient total significance to justify substantial renovation or clearance." The above building, based upon actual interior and exterior inspection and review of building permit records, exhibits the following deficiencies that in our professional opinion contribute to justifying substantial renovation or clearance: Essential Utilities & Facilities · Deficient in facilities for disabled: lack of signage for existing disability parking; lack of maneuvering clearance and accessible hardware on interior doors; lack of maneuvering clearance and accessible features in toilet rooms; lack of accessible tables in dining area. · Deficient floor finish: up to 25 percent of floor tiles and floor cove base cracked, including food prep area. Light & Ventilation · Deficient in meeting Mechanical code: for building construction prior to 1989, mechanical systems do not provide sufficient number of air exchanges. Fire Protection/Egress · Deficient exterior door: lack of accessible landing width in direction of travel. Similar Factors · Defects in exterior building shell: eave/edge rotting on north and south side; exterior soffit needs painting and venting; paint finish failing on east side. Code Test Notwithstanding the foregoing, the tax increment law also provides that a building may not be considered structurally substandard if it is in compliance with the building code applicable to new buildings or could be modified to satisfy the current building code at a cost of less than 15% of the cost of constructing a new building of the same square footage and type on the same site. Estimated cost of new building of same size and type (Total Replacement Cost): $433,912.66 Estimated cost of correction of code deficiencies (Total Deficiency Cost): $24,264.50 Percentage of Code Deficiency to Replacement Cost: 5.59% Refer to Individual Building Summary Report for documentation of specific code deficiencies. MAP TI) # PID # Parcel Name Inspector Inspection Date Survey Method Bldg Occupancy Bldg Type Wall Construction Roof Construction # .Stories Basement (Y/N) Story-Height Floor Area Building Area Year Built 5prinklered Elevator 1-1 253024320003 HOLLYWOOD VIDEO~SAVER5 INDIVIDUAL BUILDING SUMMARY REPORT. LAG 7115/2003 INTERIOR Exterior Wall And FrameJ $65.90 M RETAIL MASONRY STEEL 2 N 30,690 36,690 1965 Y 'N Story Height Adjustment (Add or Deduct)J Basement J Location Factor** Total Replacement Cost 36,690.00 $0.55 $16,879.50 $0.00 $o.oo add $2,417,871.00J 3o,69o.ooj °'°°I 0.13 $316,517.57 $2,751,268.07 Total Deficiency costJ J I $578,574.52 Percentage of Code Deficiency To Replacement Cast Satisfies Step 2 Test (469.174 10 (c)) for Structurally Substandard Building (Y/N) Jy 21.03% **Location Factor varies by location and building type (commercial or residential) Summary of Building Deficiencies (Code Deficiencies) Accessibility (Exterior and Interior)/Building Egress/Building Construction Fire Protection Systems Energy Code Compliance Food Service Areas Heating, Ventilation, and Cooling Systems (HVAC) Electrical Systems Deficiency Cost $74,365.00 $0.00 $284,069.52 $0.00 $220,140.00 $0.00 Page 1 Deficiency Accessibility (Exterior) - 1999 Minneosta Accessiblity Code, Ch. 1341 No van accessible parking available - MN 1341.0403; add striping for one stall plus signage Disbility parking space without required signage - MN 1341.0428; add signage each stall Accessibility (Interior) - 1999 Minnesota Accessibility Code, Ch. 1341 Building occupancy of floor (greater than 30 occupants) above or below level of access requires installation of an elevator - MN 1341.0405; provide new elevator Door on an interior accessible route without required maneuvering clearance at door approach or door opening is less than 32" clear width - MN 1341.0442; remove existing barriers or wall framing, patch walls Door on an interior accessible mute without lever handle or loop-style hardware - MN 1341.0442; replace existing door hardware Toilet mom door without required maneuvering clearance at (interior) door approach - MN 1341.0442; remove existing barriers or wall framing, patch walls Toilet room without unobstructed 5'-0" turning radius within room - MN 1341.0460; remove barriers or wall framing, enlarge toilet mom and patch walls Toilet room without plumbing insulation/covering for lavatory - MN 1341.0454; provide plumbing insulation/covering Toilet mom accessories (soap dispenser, towel dispenser, etc.) that are mounted higher than 40" max. above the floor - MN 1341.0470; relocate existing toilet accessories Toilet room without clear space for side transfer water closet/toilet stall - MN 1341.0448; remove barriers or wall framing, enlarge toilet room and patch walls Toilet room without toilet seat at 17"-19" above the floor - MN 1341.0448; replace existing toilet fixture Toilet room without horizontal and vertical grab bars for water closet/toilet stall - MN 1341.0448; provide new grab bars (18", 36", 42") Toilet room without urinal rim mounted at 17" max. above the floor - MN 1341 0452; relocate/adjust height of urinal and plumbing Toilet mom accessibility improvements required due to noncompliant fixture or accessory heights, or lack of grab bars - MN 1341.0454; minimum improvements: adjust fixtures/accessories/partitions, provide grab bars Toilet room accessibility improvements due to noncompliant clearances at fixtures or doors, and heights of fixtures - MN 1341.0454; minor remodeling: remove barriers or wall framing within toilet mom, or enlarge toilet room by relocating one wall (affect one adjacent space max.) Public/common use room without 30"x48" clear space for forward approach at a sink - MN 1341.0464; remove barders or wall framing or modify base cabinet Public/common use room without lever or similar faucet controls for a sink - MN 1341.0464; replace existing sink faucet Public/common use moms without plumbing insulation/covering for a sink - MN 1341,0454; provide plumbing insulation/covering Drinking fountain without spout at 36" max, height and 27" min. knee clearance - MN 1341.0446; relocate/adjust height of fountain and plumbing Building Egress - 2000 International Building Code (IBC) Exit door does not swing in direction of travel - IBC 1003,3.1.2; remove existing door, provide new door and hardware Page 2 Area/Number of Req'd. Improvements N 3 1 5 8 1 2 6 3 5 2 5 2 2 2 1 1 1 Calculated Unit Cost $250.00 $8o,oo $52,725,o0 $250.oo $175,oo $o.oo $o.oo $o.oo $o.oo $o.oo $o.oo $o.oo $o.oo $1,000.00 $5,OOO.0O $500.00 $100.00 $50,00 $250.00 $1,100.00 Deficiency Cost 1 $250.00 $240.00 1 $52,725.00 $1,250.00 $1,400.00 $0.00 $0.00 $0.00 $0.00 $o.o0 $0.00 $o.0o $0.00 $2,000.00 $10,000.00 $500.00 $100.00 $50.00 $250.00 1 $1,100.00 Exterior door with greater than Y2" threshold (accessible) - IBC 1003.3.1.6; assume replacement of exterior stoop required: remove existing stoop, provide new stoop Flight of stairs with noncompliant rise/run (7" max. rise/11" min. run) (residential exception: 7.75" max. dse/10" min. run) - IBC 1003.3,3,3; replace stairs, modify railings and adjacent walls Flights of stairs with less than two handrails (residential exception = 1 h.r. min.) - IBC 1003.3.3.11; provide new handrail (assume 9' floor to floor) Stair handrails are not located at 34"-38" above the tread - IBC 1003.3.3.11; relocate/modify existing handrail Stair handrail ends do not extend 12" beyond the top riser or 12" plus one tread beyond the bottom riser - IBC 1003,3.3.11; modify existing handrail end Stairway improvements requried due to noncompliant rise/run, headroom, and landings - IBC 1003.3.3; minor remodeling: replace stairs, modify railings, landings, and adjacent walls (considered minimum commercial remodel cost, maximum residential remodel cost) Building Construction - 2000 International Building Code (IBC) Udnals or water closet without adjacent non-absorbent wail surface - IBC 1209.2; assume 20 s.f. wall surface, provide new fiberglass reinforced wall paneling adjacent to existing fixture Energy Code Compliance. 2000 Minnesota Energy Code, Ch. 7672, 7674, or 7676 For building construction prior to 1976, foundation wall with less than R-5 insulation - MN 7672.0800, MN 7676.0700; excavate foundation wall at perimeter of building, assume add insulation depth to 4' below finished floor (l.f. perimeter x 4'-0" x $3,28 (insulation + excavation)) For building construction prior to 1976, exterior wall area with less than R-11 insulation - MN 7672.0800, MN 7676.0700; residential improvement: assume price for new insulate 2x4 wall w/vinyl siding (s.f. wall surface x $5.50), commercial improvement: assume price for EIFS or interior wall furring and insulation (s.f. wall surface x $7.00) For building construction pdor to 1976, attic/roof area with less than R-38 insulation (residential) or R-23 insulation (commercial) - MN 7672.0800, MN 7676.0700; assume total reroof required, 'flat' roof, built-up roofing and roof edge (s.f. roof x $6.00) Heating, Ventilation, and Cooling Systeme (HVAC) - Commercial deficiencies For building construction prior to 1989, mechanical systems do not provide sufficient number of air exchanges; upgrade air handling units (cooling and heating coil + controls) for increased air exchanges ((s.f. area x 1.25 cfm/s.f. = additional cfm required) x $2.00/cfm) For building construction prior to 1989, condensing unit does not provide sufficient cooling for increased air exchanges above; upgrade condensing unit for additional air exchanges ((additional cfm required/500 ton/cfm = additional ton cooling required) x $600/ton) For building construction prior to 1989, building electrical'systems are not sufficient to handle additional mechanical units associated with increased air exchanges; provide increased capacity to existing electrical system (s.f. x $2.00/s.f.) 3384 12690 30690 45862.5 91.725 36690 $50O.O0 $0.00 $o.oo $o.oo $50,00 $2,500,00 $100.00 $3.28 $7.00 $6.00 $2.00 $600.00 $2.00 $1,500.0C $0.00 $0.00 $0.00 $300.00 $2,500,00 1 $200.00 1 $11,099.52 $88,830,00 $184,140,00 1 $91,725.00 $55,035.00 $73,380.00 Calculated occupancy # Exst. Baths/Tit. Rms. #Exst. Tlt.-M/Unisex #Exst, Lav.-M/Unisex #Exst. Tit. -F #Exst. Lav.-F #Exst. Drinking Fin. 843 5 5 4 4 4 1 Calculated loads 2 2 2 2 1 Page 3 MAP ID # PID# Parcel Name Inspector Inspection Date Survey Method Bldg Occupancy Bldg Type Wall Construction Roof Construction # Stories Basement (Y/N) Story-Height Floor Area Building Area Year Built Sprinklercd Elevator 2-! 253024320002 BUFFALO WILD WING5 INDIVIDUAL BUILDIN6 SUMMARY REPORT' LAG 7/t5/2003 TNTERZOR A Restaurant/Bar MASONRY WOOD FRAMED ! N !0 5,400 5,400 1972 Y N Exterior Wall And From¢l Story Height Adjustment (Add or Deduct) Basement Location Factor** Total Replacement Cost Total Deficiency costJ Percentage of Code Deficiency To Replacement Cost Satisfies Step 2 Test (469.174 10 (c)) for Structurally Substandard Bui ding (Y/N) **Location Factor varies by location and building type (commercial or residential) $151.65 $818,910,00 5Aoo.oo -$1.30 5,4oo.o0 -$7,ozo.oo $0.00 o.oo $o.~ add o.13 $105,545.70 $917,435.70 J N 6.49% Summary of Building Deficiencies (Code Deficiencies) Accessibility (Exterior and Interior)/Building Egress/Building Construction Fire Protection Systems Energy Code Compliance Food Service Areas Heating, Ventilation, and Cooling Systems (HVAC) Electrical Systems Deficiency Cost $800.00 $0.00 $26,265.92 $50.00 $32,400.00 $0.00 Page 1 Calculated occupancy # Exst. Baths/Tit. Rms. #Exst. TIt.-M/Unisex #Exst. Lav.-M/Unisex #Exst. Tit. -F #Exst. Lav.-F #Exst, Drinking Fin. 243 2 4 3 3 3 0 Deficiency Accessibility (Interior) - 1999 Minnesota Accessibility Code, Ch. 1341 Toilet room without horizontal and vertical grab bars for water closet/toilet stall - MN 1341.0448; provide new grab bars (18", 36", 42") Building Egress - 2000 International Building Code (IBC) Exterior door landing less than 44" min. in direction of travel (residential exception = 36") or greater than 7" rise for non-accessible exterior doors in groups F, H, R, S, and U - IBC 1003,3,1.5, IBC 1003,3.1.4; assume replacement of exterior stoop required: remove existing stoop, provide new stoop Energy Code Compliance - 2000 Minnesota Energy Code, Ch. 7672, 7674, or 7676 For building construction prior to 1976, foundation wall with less than R-5 insulation - MN 7672.0800, MN 7676,0700; excavate foundation wall at perimeter of building, assume add insulation depth to 4' below finished floor (I,f. perimeter x 4'-0" x $3.28 (insulation + excavation)) For building construction prior to 1976, exterior wall area with less than R-11 insulation - MN 7672.0800, MN 7676.0700; residential improvement: assume price for new insulate 2x4 wall w/vinyl siding (s.f. wall surface x $5.50), commercial improvement: assume price for EIFS or interior wall furring and insulation (s,f. wall surface x $7,00) Food Service Areas - 1998 Minnesota Food Code, Ch. 4626 Hand sink with less than 18" clearance from clean operations - MN 4626; provide physical barrier/partition Heating, Ven. tilation, and Cooling Systems (HVAC) - Commercial deficiencies For building construction prior to 1989, mechanical systems do not provide sufficient number of air exchanges; upgrade air handling units (cooling and heating coil + controls) for increased air exchanges ((s.f. area x 1,25 cfm/s.f. = additional cfm required) x $2.00/cfm) For building construction prior to 1989, condensing unit does not provide sufficient cooling for increased air exchanges above; upgrade condensing unit for additional air exchanges ((additional cfm required/500 ton/cfm = additional ton cooling required) x $600/ton) For building construction prior to 1989, building electrical systems are not sufficient to handle additional mechanical units associated with increased air exchanges; provide increased capacity to existing electrical system (s.f. x $2.00/s,f.) Calculated loads 2 1 2 1 0 Area/Number of Req'd. Improvements 1264 3160 6750 13,5 5400 Unit Cost $150.00 $500.00 $3,28 $7.00 $50,00 $2,00 $600.OO $2,00 Deficiency Cost 1 $300,00 1 $500.00 1 $4,145.92 $22,120,00 t $50.00 1 $13,500.00 $8,100,00 $10,800,00 Page 2 MAP Zb # PIb # Parcel Name Inspector Inspection Date Survey Method Bldg Occupancy Bldg Type Wall Construction Roof Construction # Stories Basement (Y/N) Story-Height Floor Area Building Area Year Built Sprinklered Elevator 3-1 253024320001 WELLE AUTO INDI:VIDUAL BUZLD:[NG SUMMARY REPORT LAG 7/14/2003 INTER];OR M RETAIL MASONRY STEEL 1 N 14 11,500 11,500 1971 N 'N Exter'ior Wall And Frame 5tory Height Adjustment (Add or Deduct) Basement Location Factor** Total Replacement Cost Total Deficiency costJ Percentage of Code Deficiency To Replacement costJ Satisfies Step 2 Test (469.174 10 (c)) for Structurally Substandard Building (y/N)I $72.15 11,500.00 $829,725.00 $0.00 o.oo $o.oo $0.00 o.oo $o.oo add o.13 $t07,864.25 $937,589.25 J J $148,566.60 y 15.85% **Location Factor varies by location and building type (commercial or residential) Summary of Building Deficiencies (Code Deficiencies) Accessibility (Exterior and Interior)/Building Egress/Building Construction Fire Protection Systems Energy Code Compliance Food Service Areas Heating, Ventilation, and Cooling Systems (HVAC) Electrical Systems Deficiency Cost $32,430.00 $o.oo $47,136.60 $o.oo $69,ooo.oo $o.oo Page 1 Deficiency Area/Number Unit Cost of Req'd. improvements Accessibility (Exterior) - 1999 Minneosta Accessiblity Code, Ch. 1341 No van accessible parking available - MN 1341.0403; add striping for one stall plus signage N $250.00 Disability parking space without required signage - MN 1341.0428; add signage each stall 1 $80.00 Accessibility (Interior) - 1999 Minnesota Accessibility Code, Ch. 1341 Door on an interior accessible route without lever handle or loop-style hardware - MN 1341.0442; replace 1 $150,00 existing door hardware Toilet room door opening less than 32" min. clear width - MN 1341.0442; remove existing door, enlarge opening 2 $0.00 and provide new door Toilet mom door without required maneuvering clearance at (interior) door approach - MN 1341.0442; remove 2 $0.00 existing barriers or wall framing, patch walls Toilet room without unobstructed 5'-0" turning radius within room - MN 1341.0460; remove barriers or wall 1 $0.00 framing, enlarge toilet room and patch walls Toilet room without.30"x48" clear space for forward approach at lavatory - MN 1341.0454; remove barriers or 2 $0.00 wall framing or modify base cabinet Toilet room without lever or similar faucet controls for lavatory - MN 1341.0454; replace existing lavatory faucet 2 $0.00 Toilet room without plumbing insulation/covering for lavatory - MN 1341.0454; provide plumbing insulation/covering 2 $0.00 Toilet room accessories (soap dispenser, towel dispenser, etc.) that are mounted higher than 40" max. above 2 $0.00 the floor - MN 1341.0470; relocate existing toilet accessories Toilet room without clear space for side transfer water closet/toilet stall - MN 1341.0448; remove barriers or wall 2 $0.00 framing, enlarge toilet room and patch walls Toilet room without toilet seat at 17"-19" above the floor - MN 1341.0448; replace existing toilet fixture 2 $0.00 Toilet room without horizontal and vertical grab bars for water closet/toilet stall - MN 1341.0448; provide new grab bars (18", 36", 42") 2 $0.00 Toilet room without urinal rim mounted at 17" max. above the floor. MN 1341 0452; relocate/adjust height of 1 $0.00 urinal and plumbing Toilet room accessibility improvments due to noncompliant clearances at fixtures or doors, and heights of 2 $15,000.00 fixtures - MN 1341.0454; major remodeling: remove barriers or wall framing, enlarge toilet room by relocating one or more walls (affect one or more adjacent spaces) Building Construction - 2000 International Building Code (IBC) Occupancy of building requires installation of additional drinking fountain - iBC Chap. 29; provide new 1.00 $1,950.00 accessible drinking fountain and plumbing Energy Code Compliance. 2000 Minnesota Energy Code, Ch. 7672, 7674, or 7676 Storefront window/door exceeds thermal transmittance standards (glazing is non-insulated) - MN 7676.0700; 258 $32.50 remove existing window/door assembly, provide new thermally broken aluminum window/door assembly (estimated s.f. of assembly to be replaced x $32.50) For building construction prior to 1976, foundation wall with less than R-5 insulation - MN 7672.0800, MN 1720 $3.28 7676.0700; excavate foundation wall at perimeter of building, assume add insulation depth to 4' below finished floor (l.f. perimeter x 4'-0" x $3.28 (insulation + excavation)) For building construction prior to 1976, exterior wall area with less than R-11 insulation - MN 7672.0800, MN 4730 $7.00 7676.0700; residential improvement: assume price for new insulate 2x4 wall w/vinyl siding (s.f. wall surface x $5,50), commercial improvement: assume price for EIFS or interior wall furring and insulation (s.f. wall sudace x $7.00) Page 2 Deficiency Cost 1 $250.00 $80.00 1 $150.00 $0.00 $0.00 $0.00 $0,00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $30,00O.OO 1 $1,950.00 1 $8,385.00 $5,641.60 $33,110.00 Heating, Ventilation, and Cooling Systems (HVAC) - Commercial deficiencies For building construction prior to 1989, mechanical systems do not provide sufficient number of air exchanges; upgrade air handling units (cooling and heating coil + controls) for increased air exchanges ((s.f. area x 1.25 cfm/s.f. = additional cfm required) x $2.00/cfm) For building construction prior to 1989, condensing unit does not provide sufficient cooling for increased air exchanges above; upgrade condensing unit for additional air exchanges ((additional cfm required/500 ton/cfm = additional ton cooling required) x $600/ton) For building construction prior to 1989, building electrical systems are not sufficient to handle additional mechanical units associated with increased air exchanges; provide increased capacity to existing electrical system (s.f. x $2.00/s.f.) 14375 28,75 115OO $2.00 $600.00 $2.00 '1 $28,750.00 $17,250.00 $23,000.00 Calculated occupancy # Exst. BathsfTIt. Rms. #Exst. TIt.-M/Unisex #Exst. Lav,-M/Unisex #Exst. Tit. -F #Exst. Lav.-F #Exst. Drinking Ftn. 383 2 2 1 1 1 0 Calculated loads 2 1 1 1 1 1 Page 3 MAP ID # PIb # Parcel Name Inspector Inspection bate Survey Method Bldg Occupancy Bldg Type Wall Construction Roof Construction # Stories Basement (Y/N) Story-Height Floor Area Building Area Year Built Sprinklered Elevator 4-1 253024320004 5UBWAY\TCBY\EL BUSTAN INDIVIDUAL BUILDING SUMMARY REPORT' LAG 7/14/2003 INTERIOR A RESTAURANT MASONRY WOOD FRAMED N 5,541 5,541 PRE-1976 N 'N Exterior Wall And FrameJ $151.65 5tory Height Adjustment (Add or Deduct) $0.00 BasementJ $0.00 Location Factor** ~ Total Replacement Cost 5,541.00 $840,292.65 5,541.00 $0.00 0.00 $0.00 0.13 $109,238.04 $949,530.69 Total Deficiency costJ J $97,859.68 Percentage of Code Deficiency To Replacement Cost Satisfies 5tap 2 Test (469.174 10 (c)) for 5tructura y Substandard Bui ding (Y/N) N 10.31% **Location Factor varies by location and building type (commercial or residential) Summary of Building Deficiencies (Code Deficiencies) Accessibility (Exterior and Interior)/Building Egress/Building Oonstruction Fire Protection Systems Energy Code Compliance Food Service Areas Heating, Ventilation, and Cooling Systems (HVAC) Electrical Systems Deficiency Cost $36,330.00 $0.00 $24,565.68 $3,750.00 $33,214.00 $o.oo Page 1 Deficiency Area/Number of Req'd, Improvements Unit Cost Deficiency Cost Accessibility (Exterior) - 1999 Minneosta Accessiblity Code, Ch. 1341 Disbility parking space without required signage. MN 1341.0428; add signage each stall Accessibility (Interior) - 1999 Minnesota Accessibility Code, Ch. 1341 Door on an interior accessible route without required maneuvering clearance at door approach or door opening is less than 32" clear width - MN 1341,0442; remove existing barriers or wall framing, patch walls $80.00 $250.00 1 $80.00 1 $500,00 Door on an interior accessible route without lever handle or loop-style hardware - MN 1341,0442; replace existing door hardware Toilet room door opening less than 32" min. clear width - MN 1341.0442; remove existing door, enlarge opening and provide new door Toilet room without unobstructed 5'-0" turning radius within room - MN 1341,0460; remove barriers or wall framing, enlarge toilet room and patch walls Toilet room without lever or similar faucet controls for lavatory - MN 1341,0454; replace existing lavatory faucet 1 $15o.0o 1 $0.oo 1 $o,oo 1 $0,00 $150,00 $o.oo $o.oo $o.oo Toilet room without plumbing insulation/covering for lavatory - MN 1341.0454; provide plumbing insulation/covering Toilet room accessories (soap dispenser, towel dispenser, etc.) that are mounted higher than 40" max. above the floor - MN 1341.0470; relocate existing toilet accessories Toilet room without clear space for side transfer water closet/toilet stall - MN 1341.0448; remove barriers or wall framing, enlarge toilet room and patch walls Toilet room without toilet seat at 17"-19" above the floor - MN 1341.0448; replace existing toilet fixture $0.00 $0.00 $0.00 $0.00 $0.00 $o.oo $o.oo $o.oo Toilet room without horizontal and vertical grab bars for water closet/toilet stall - MN 1341,0448; provide new grab bars (18", 36", 42") Toilet room accessibility improvements required due to noncompliant fixture or accessory heights, or lack of grab bars - MN 1341,0454; minimum improvements: adjust fixtures/accessories/partitions, provide grab bars $0.00 $150.00 $0.00 $300.00 Toilet room accessibility improvments due to noncompliant clearances at fixtures or doors, and heights of fixtures - MN 1341.0454; major remodeling: remove barriers or wall framing, enlarge toilet room by relocating one or more walls (affect one or more adjacent spaces) Building Egress - 2000 International Building Code (IBC) Exterior door with greater than ~" threshold (accessible) - IBC 1003.3,1.6; assume replacement of exterior stoop required: remove existing stoop, provide new stoop Stairway landing does not extend 36" in direction of travel at top or foot of stairs - IBC 1003.3.3.4; reconfigure/remodel adjacent walls Stairway improvements required due to noncompliant headroom or landings - IBC 1003.3.3; minimum remodeling: reconfigure/remodel adjacent walls and/or ceiling framing Flights of stairs with less than two handrails (residential exception = 1 h.r. min,) - IBC 1003.3.3.11; provide new handrail (assume 9' floor to floor) Building Construction - 2000 International Building Cods (18C) Urinals or water closet without adjacent non-absorbent wall surface - IBC 1209.2; assume 20 s,f, wall surface, provide new fiberglass reinforced wall paneling adjacent to existing fixture Energy Code Compliance - 2000 Minnesota Energy Code, Ch, 7672, 7674, or 7676 2 $15,000.00 2 $500.00 3 $0.00 3 $1,000,00 3 $4OO,OO 1 $100.00 $30,000,00 1 $1,000,00 $o.oo $3,000.00 $1,200,00 1 $100,oo Page 2 Calculated occupancy # Exst. Baths/Tit. Rms. #Exst. TIt.-M/Unisex #Exst. Lav.-M/Unisex #Exst. Tit. -F #Exst. Lav,-F #Exst. Drinking Ftn. 279 5 4 4 3 3 0 For building construction prior to 1976, foundation wall with less than R-5 insulation - MN 7672.0800, MN 7676.0700; excavate foundation wall at perimeter of building, assume add insulation depth to 4' below finished floor (l.f, perimeter x 4'-0" x $3.28 (insulation + excavation)) For building construction pdor to 1976, exterior wall area with less than R-11 insulation - MN 7672.0800, MN 7676.0700; residential improvement: assume price for new insulate 2x4 wall w/vinyl siding (s.f. wall surface x $5.50), commemial improvement: assume price for EIFS or interior wall furring and insulation (s.f. wall surface x $7.00) Food Service Areas - 1998 Minnesota Food Code, Ch. 4626 Washing areas without a 3-compartment sink or automatic dishwasher - MN 4626; provide new stainless steel 3-compartment sink and plumbing Food prep area without non-absorbent wall surfaces - MN 4626; assume 60 I.f. wail x 8'-0" high, provide new fiberglass reinforced wall paneling Food prep area without non-absorbent ceiling surface - MN 4626; assume 400 s.f. space, provide new suspended ceiling for clean room Heating, Ventilation, and Cooling Systems (HVAC) - Commercial deficiencies For building construction prior to 1989, mechanical systems do not provide sufficient number of air exchanges; upgrade air handling units (cooling and heating coil + controls) for increased air exchanges ((s.f. area x 1.25 cfm/s.f. = additional cfm required) x $2,00/cfm) For building construction prior to 1989, condensing unit does not provide sufficient cooling for increased air exchanges above; upgrade condensing unit for additional air exchanges ((additional cfm required/500 ton/cfm = additional ton cooling required) x $600/ton) For building construction prior to 1989, building electrical systems are not sufficient to handle additional mechanical units associated with increased air exchanges; provide increased capacity to existing electrical system (s.f. x $2.00/s.f.) Calculated loads 2 1 2 1 0 3O6 3366 1 1 1 6926 13.8 5541 $3.28 $7.00 $1,500.00 $1,250.00 $1,000.00 $2.oo $6oo.0o $2.00 $1,003.68. $23,562.00 1 $1,500.00 $1,250o00 $1,000.00 1 $13,852.00 $8,280.00 $11,082.00 Page 3 MAP Ib # PID # Parcel Name Inspector Inspection Date Survey Method Bldg Occupancy Bldg Type Wall Construction Roof Construction # Stories Basement (Y/N) Story-Height Floor Area Building Area Year Built 5prinklered Elevator 5-1 253024320062 KMART INDIVIDUAL BUILDING SUMMARY REPORT LA{ 7/15/200; INTERIO[ RETAIL MASONRY STEEL $8,126,118.42 123,366.00 115,49~.00 $50,816.48 o.oo $o.oo 0.13 $1,063,001.54 $9,239,~36.44 I 1 N 18 115,492 123,366 1972 Y 'N Total Deficiency costJ Percentage of Code Deficiency To Replacement Cost Satisfies Step 2 Test (469.174 10 (c)) for 5tructuro y Substandard Building (Y/N)I Iv 19.53% **Location Factor varies by location and building type (commercial or residential) Summary of Building Deficiencies (Code Deficiencies) Accessibility (Exterior and Intedor)/Building Egress/Building Construction Fire Protection Systems Energy Code Compliance Food Service Areas Heating, Ventilation, and Cooling Systems (HVAC) Electrical Systems Deficiency Cost $77,800.00 $0.00 $989,267.62 $o.oo $737,672,00 $o.oo Page 1 Deficiency Accessibility (Exterior) - 1999 Minneosta Accessiblity Code, Ch. 1341 Disbility parking space without required signage - MN 1341.0428; add slgnage each stall Accessibility (Interior) - 1999 Minnesota Accessibility Code, Ch, 1341 Door on an interior accessible route without required maneuvering clearance at door approach or door opening is less than 32" clear width - MN 1341.0442; remove existing barriers or wall framing, patch walls Door on an interior accessible route without lever handle or loop*style hardware - MN 1341.0442; replace existing door hardware Ramp less than 36" min. clear width - MN 1341.0432; widen ramp, modify railings and adjacent walls Ramp landing does not extend 60" at the top of the ramp or 72" at the foot of the ramp - MN 1341.0432, UBC 1003.3.4.4; reconfigure/remodel adjacent walls Ramp improvements required due to noncompliant landings - MN 1341,0432; minor remodeling: reconfigure/remodel adjacent walls Ramp without two handrails or handrail extensions - MN 1341,0432; replace existing handrail Toilet room door opening less than 32" rain, clear width - MN 1341,0442; remove existing door, enlarge opening and provide new door Toilet mom without unobstructed 5'-0" turning radius within room - MN 1341,0460; remove barriers or wall framing, enlarge toilet room and patch walls Toilet r6om without plumbing insulation/covering for lavatory - MN 1341.0454; provide plumbing insulation/covering Toilet room without clear space for side transfer water closet/toilet stall - MN 1341.0448; remove barriers or wall framing, enlarge toilet room and patch walls Toilet room without horizontal and vertical grab bars for water closet/toilet stalt - MN 1341.0448; provide new grab bars (18", 36", 42") Toilet room accessibility improvements required due to noncompliant fixture or accessory heights, or lack of grab bars - MN 1341,0454; minimum improvements: adjust fixtures/accessories/partitions, provide grab bars Toilet room accessibility improvments due to noncompliant clearances at fixtures or doors, and heights of fixtures - MN 1341,0454; major remodeling: remove barriers or wall framing, enlarge toilet room by relocating one or more walls (affect one or more adjacent spaces) Public/common use room without 30"x48" clear space for forward approach at a sink - MN 1341,0464; remove barriers or wall framing or modify base cabinet Public/common use room without lever or similar faucet controls for a sink - MN 1341,0464; replace existing sink faucet Public/common use rooms without plumbing insulation/covering for a sink ~ MN 1341.0454; provide plumbing insulation/covering Public/common use accessories (vending machine, condiments, etc,) that are mounted higher than 54" max, above the floor - MN 1341,0470; relocate accessories Drinking fountain without spout at 36" max. height and 27" rain, knee clearance - MN 1341,0446; relocate/adjust height of fountain and plumbing Building Egress - 2000 International Building Cods (IBC) Exterior door with greater than W' threshold (accessible) - IBC 1003,3,1,6; assume replacement of exterior stoop required: remove existing stoop, provide new stoop Area/Number of Req'd. Improvements 7 1 2 1 1 1 1 2 1 3 2 3 1 Unit Cost $80.00 $250,00 $175,00 $0.oo $o.o0 $500.00 $200.00 $0.00 $0.00 $o.oo $o.oo $o.oo $200.00 $15,000,00 $500.00 $100,00 $50.00 $20.00 $250,00 $500.00 Deficiency Cost 1 $560.00 1 $25O.OO $35O.OO $0.00 $0.00 $500.00 $2OO,OO $o.oo $o.oo $o.oo $o.oo $o.oo $200.00 $30,000.00 $1,000.00 $300,00 $200,00 $40.O0 $500,00 1 $1,500.00 Page 2 Exterior door landing less than 44" min. in direction of travel (residential exception = 36") or greater than 7" rise for non-accessible exterior doors in groups F, H, R. S, and U - IBC 1003.3.1.5, IBC 1003.3.1.4; assume replacement of exterior stoop required: remove existing stoop, provide new stoop Flight of stairs with noncompliant rise/run (7" max, rise/11" rain, run) (residential exception: 7.75" max. rise/10" Stairway landing does not extend 36" in direction of travel at top or foot of stairs - IBC 1003,3.3,4; Flights of stairs with less than two handrails (residential exception = 1 h,r, min,) - IBC 1003.3.3.11; provide new handrail (assume 9' floor to floor) Stair handrail ends do not return to walls or terminate in newel posts - IBC 1003.3.3.11; modify existing handrail end Stair handrail ends do not extend 12" beyond the top riser or 12" plus one tread beyond the bottom riser - IBC 1003.3.3.11; modify existing handrail end Stair flight or landing with noncompliant guardrail (42" min, height, 4" or 21" min. spacing between intermediate rails) (residential exception = 34" - 38" height) - IBC 1003.2.12; provide new guardrail (estimate 3'-6" lin, Feet) 10 1 8 16 18 12 $500.00 $0.00 $0,00 $400.00 $50.00 $50.00 $300.00 $500.00 $0.00 $0.00 $3,200.00 $800.00 $900,00 $3,600.00 Stairway improvements requried due to noncompliant rise/run, headroom, and landings - IBC 1003,3.3; minor remodeling: replace stairs, modify railings, landings, and adjacent walls (considered minimum commercial remodel cost, maximum residential remodel cost) Stairway improvements required due to noncompliant rise/run, width, headroom, landings, and height - IBC 1003.3.3; major remodeling: replace stairs, modify railings, landings, and adjacent walls Building Construction - 2000 International Building Code (IBC) Urinals or water closet without adjacent non-absorbent wall surface - IBC 1209.2; assume 20 s.f. wall surface, provide new fiberglass reinforced wall paneling adjacent to existing fixture Energy Cods Compliance - 2000 Minnesota Energy Code, Ch. 7872, 7674, or 7676 Window exceeds thermal transmittance standards (window glazing is non-insulated) - MN 7672.0800, MN 7676,0700; remove existing window assembly, provide new window assembly, replace interior and extedor trim 7 $2,500,00 3 $5,O0O.00 7 $100.00 4 $700.00 $17,500.00 $15,000.00 1 $70O.00 1 $2,800.00 Storefront window/door exceeds thermal transmittance standards (glazing is non-insulated) - MN 7676.0700; remove existing window/door assembly, provide new thermally broken aluminum window/door assembly (estimated s.f. of assembly to be replaced x $32.50) For building construction prior to 1976, foundation wall with less than R-5 insulation - MN 7672,0800, MN 7676.0700; excavate foundation wall at perimeter of building, assume add insulation depth to 4' below finished floor (l.f. perimeter x 4'-0" x $3.28 (insulation + excavation)) For building construction prior to 1976, exterior wall area with less than R-11 insulation - MN 7672.0800, MN 7676.0700; residential improvement: assume price for new insulate 2x4 wall w/vinyl siding (s.f. wall surface x $5.50), commercial improvement: assume price for EIFS or interior wall furring and insulation is.f, wall surface x $7.00) For building construction prior to 1976, attic/roof area with tess than R-38 insulation (residential) or R-23 insulation (commercial) - MN 7672,0800, MN 7676.0700; assume total reroof required, 'flat' roof, built-up roofing and roof edge (s.f, roof x $6.00) Heating, Ventilation, and Cooling Systeme (HVAC) - Commercial deficiencies For building construction prior to 1989, mechanical systems do not provide sufficient number of air exchanges; upgrade air handling units (cooling and heating coil + controls) for increased air exchanges ((s.f. area x 1.25 cfm/s.f. = additional cfm required) x $2.00/cfm) For building construction prior to 1989, condensing unit does not provide sufficient cooling for increased air exchanges above; upgrade condensing unit for additional air exchanges ((additional cfm required/500 ton/cfm = additional ton cooling required) x $600/ton) For building construction prior to 1989, building electrical systems are not sufficient to handle additional mechanical units associated with increased air exchanges; provide increased capacity to existing electrical system (s.f. x $2.00/s,f.) Page 3 2285 63O4 28,368 115,492 150,765 301.53 120,612 $32.50 $3.28 $7.00 $6.00 $2.00 $600,00 $2.00 $74,262.50 $20,677.12 $198,576.00 $692,952.00 1 $301,530.00 $180,918,00 $241,224.00 For building construction prior to 1989, warehouse or repair garage occupancy, mechanical systems do not provide sufficient number of air exchanges; upgrade air handling units (cooling and heating coil + controls, condensing unit) for increased air exchanges (1 ton additional cooling required for every 8 people x $2,000.O0/ton) For building construction pdor to 1989, repair garage occupancy, mechanical systems do not provide sufficient number of air exchanges for exhaust fumes; provide new engine/tailpipe exhaust system including fans, adapters, and tubing ($4000,00) and new CO detector system including sensor and panel ($3,000.00) 3.5 $2,000.00 $7,000.00 $7,000.00 $7,000.00 Calculated occupancy # Exst. Baths/Tit. Rms, #Exst. TIt.-M/Unisex #Exst, Lav.-M/Unisex #Exst, Tit. -F #Exst. Lav.-F #Exst. Drinking Ftn. 3,106 5 9 5 8 6 3 Calculated loads 3 2 3 2 3 Page 4 MAP ID # Parcel Name Inspector Inspection Date Survey Method Bldg Occupancy Bldg Type Wall Construction Roof Construction # Stories Basement (Y/N) 5tory-Height Floor Area Building Area Year Built Sprinklered Elevator 6-1 253024320061 ARBY' 5 LAG 7/15/~003 ZNTERZOR A Restaurant MA SONRV WOOD FRAMED 1 N 10 2,885 2,88§ 1981 N N INDIVZDUAL BU:[LDING SUMMARY REPORT Exterior Wall And Frame Story Height Adjustment (Add or Deduct) Basement Location Factor** Total Replacement Cost $133.10 2,885.00 $383,993.50 $0.00 2,885.001 $0.00 $0.00 0.00 $0.00 add 0.13 $49,919.16 $433,912.66 Total Deficiency costI I $24,264.50 Percentage of Code Deficiency To Replacement Cost Satisfies Step :> Test (469.174 10 (c)) for Structurally Substandard Building (Y/N) JN 5.59% **Location Factor varies by location and building type (commercial or residential) Summary of Building Deficiencies (Code Deficiencies) Accessibility (Exterior and lnterior)/Building Egress/Building Construction Fire Protection Systems Energy Code Compliance Food Service Areas Heating, Ventilation, and Cooling Systems (HVAC) Electrical Systems Deficiency Cost $6,955.00 $0.00 $0.00 $0.00 $17,309.50 $0.00 Page 1 Deficiency Accessibility (Exterior) - 1999 Minneosta Accessiblity Code, Ch. 1341 Disbility parking space without required signage - MN 1341,0428; add signage each stall Accessibility (Interior) - 1999 Minnesota Accessibility Code, Ch. 1341 Door on an interior accessible route without required maneuvering clearance at door approach or door opening is less than 32" clear width - MN 1341.0442; remove existing barriers or wall framing, patch walls Door on an interior accessible route without lever handle or loop-style hardware - MN 1341.0442; replace existing door hardware Toilet room without lever or similar faucet controls for lavatory - MN 1341.0454; replace existing lavatory faucet Toilet room without plumbing insulation/covering for lavatory - MN 1341.0454; provide plumbing insulation/covering Toilet room without 30"x42" clear space for forward approach at urinal - MN 1341.0452; remove existing barriers or wall framing, patch walls Toilet room accessibility improvements required due to noncompliant fixture or accessory heights, or lack of grab bars - MN 1341.0454; minimum improvements: adjust fixtures/accessories/partitions, provide grab bars Toilet room accessibility improvements due to noncompliant clearances at fixtures or doors, and heights of fixtures - MN 1341.0454; minor remodeling: remove barriers or wall framing within toilet room, or enlarge toilet room by relocating one wall (affect one adjacent space max,) Less than 5% of public/common use tables at 28"-34" above the floor with 27" rain, knee clearance and 30" rain. clear width for front approach - MN 1341,0480; provide new tables or modify existing Building Egress - 2000 International Building Code (IBC) Exterior door landing less than 44" min, in direction of travel (residential exception = 36") or greater than 7" rise for non-accessible exterior doors in groups F, H, R, S, and U - IBC 1003.3.1.5, IBC 1003,3,1.4; assume replacement of exterior stoop required; remove existing stoop, provide new stoop Heating, Ventilation, and Cooling Systems (HVAC) - Commercial deficiencies For building construction prior to 1989, mechanical systems do not provide sufficient number of air exchanges; upgrade air handling units (cooling and heating coil + controls) for increased air exchanges ((s.f, area x 1.25 cfm/s.f. = additional cfm required) x $2,00/cfm) For building construction prior to 1989, condensing unit does not provide sufficient cooling for increased air exchanges above; upgrade condensing unit for additional air exchanges ((additional cfm required/500 ton/cfm = additional ton cooling required) x $600/ton) For building construction prior to 1989, building electrical systems are not sufficient to handle additional mechanical units associated with increased air exchanges; provide increased capacity to existing electrical system (s,f. x $2.00/s,f.) Area/Number of Req'd. Improvements 36O6 7.2125 2885 Unit Cost $80,00 $250,00 $175.00 $0.00 $o.0o $o.00 $5oo.oo $5,000,00 $200.00 $500.00 $2.00 $600,00 $2,00 Deficiency Cost 1 $80.00 1 $500.00 $175.00 $0.00 $0.00 $0.00 $500.00 $5,000.00 $200,00 1 $500,00 1 $7,212.00 $4,327.50 $5,770,00 Calculated occupancy # Exst. Baths/Tit. Rms. #Exst. TIt.-M/Unisex #Exst. Lav.-M/Unisex 100 2 2 1 Page 2 Calculated loads 2 1 1 APPENDIX G BUT/FOR QUALIFICATIONS BUT ! FOR ANALYSIS Current Market Value - Est. New Market Value - Est. Difference ~resent Value of Tax Increment Difference Calue Likely to Occur Without Tax Increment is Less Than: 5,659,100 66,900,000 61,240,900 5,725,538 55,515,362 55,515,362 The existing K-Mart building is a vacant building which sits on an underutilized site. The adjacent commercial uses in the proposed TIF district are all occupied structures but are of varying age and quality. Without the use of TIF, the initial phase of the project and the future phases of the project would not be feasible and it is not foreseen that the scale and intensity of the proposed development would occur with the use of TIF. A development agreement is proposed to be adopted on the same date as the TIF plan for the first phase of developmentin the district, consisting of housing development. The development agreement is expected to coverthe developer's request for TIF assistance associated with the housing. The current request is the costs of the demolition of K-Mart totaling approximately $700,000. To fund these costs will only require a few years of the 16 years of TIF. The development agreement is also expected to contain a requirement that the developerfinish at least a portion of the commercial development within a specific period of time and ~x4ll limit the amount of developer profit if assistance is provided. The remaining years of TIF will be utilized to facilitate the commercial development portion of the project. Commercial development is much harder to finance with TIF for a variety of reasons. 1. The 2001 property tax reforms introduced a state property tax which cannot be captured. Fiscal disparitiesremoves a significant portion of'the local property, tax stream. Commercial properties pay less in land sale proceeds than residential property. 2. Commercialuses have a high parking requirement per s.f. of building. Therefore, structured parking (parking decks) will also add to the cost of the project. The demolition, acquisition and relocation costs of the non-K-Mart parcels could range from $4.5 million to $5.5 million. One other factor, however, which would require additional assistance would be the need for additionalparking ramps on the site to accommodate the density of the commercial development. Generally, there is a likelihood that the TIF district will run the full term if the commercial is all redeveloped. If only a portion of the commercial strip is redeveloped, then the TIF district may run a shorter time than 16 years. APPENDIX G-I APPENDIX H PRIOR PLANNED IMPROVEMENTS APPENDIX H-I PER3,1IT CITY OF COLU~LBIA HEIGHTS 590 40TM Avenue .NE Columbia E[eights, Nix/55'421-3878 763-706-3678 10680 Plumbing, Comm., Ind., Inst. INSTALL URINALS,WTR CLOSET, SINKS AT BW-3 STARTS 11/20/2002 EXPIRES IF NO WORK DONE BY 05/19/2003 TYPE OF WORK: New ESTIMATED JOB COST $ 7,800.00' It is understood by the property owner that falsify/ng in.formation and using an unlicensed contractor is a misdemeanor and ,.MN Statute v/olation. X OW3IER GOULD INVESTORS TRUST 60 CUTTER MILL ROAD SUITE 303 _ ~REAT NECK NY 11021 CONTRACTOR FOREMOST MECHANICAL.CORP 956 PROSPERITY AVE ST PAUL MN 55106 Enforcement & admini$~ation of the MN State Bldg. Code is a public serv/ce and is of necessity [irnited in nature. Consequently, this building permit and the subsequent building inspections ate not to be construed or relied u!:on as any .type of warranty, guarantee, or represent~on on the part of the city that :he plans, construction or finished product are necessarily in :onformance ,.,dth the provisions of the Minnesota State Building :ode or other applicable construction standards. Further, the city tssumes no responsibility or liability for damages of'any nature allegedly arising our of the issuance of this permit or subsequent nspecfions. kpplicant's Signature: kpproved by. /ECEIYT PROPERTY 4811 CENTRAL AVE TENA~NT FEES SURCHARGE PLMG- COMM1 $ $ 3.90 153.25 TOT.&[, FEES 157.15 CITY OF COLUMBIA HEIGHT5 590 40TH Avenue NE Columbia Heights, ~ 55421-3878 763°706-3678 10595 Building Permit TEAR OFF AND REROOF BW 3 BAR/RESTAURANT STARTS 10/29/2002 EXPIRES IF NO WORK DONE BY 04/27/2003 TYPE OF WORK: Maintenance/Repair/Replace ESTIMATED JOB COST $ 10,775.00 It is understood by the property owner that falsifying information and using an unlicensed contractor is a misdemeanor and MN Statute violation. X OWNER GOULD INVESTORS TRUST 60 CUTTER MILL ROAD SUITE GREAT NECK NY 11021 303 CONTRACTOR Superior Roofing 2717 E. 32nd Street Minneapolis MN 55406 Enforcement & administration of the MN State Bldg. Code is a public service and is of necessity limited in nature. Consequently, this building permit and the subsequent building inspections are not to be construed or relied upon as any type of warranty, guarantee, or representation on the part of the city that the plans, construction or finished product are necessarily in conformance with the provisions of the Minnesota State Building code or other applicable construction standards. Further, the city assumes no responsibility or liability for damages of any nature allegedly arising out of the issuance of this permit or subsequent inspections. Approved by RECEIPT # PROPERTY 4811 CENTRAL AVE TENANT FEES SURCHARGE BUILD1 5.39 195.25 TOTAL FEES 200.64 PERMIT ~ CITY OF COLU~IBIA HEIGHTS 590 40TM Avenue NE Columbia Heights, M2q 55421-3878 763-706-3678 10639 Building Permit REMODEL OF BW3 PER PLANS SUBMITTED-FENCE MUST MEET POL. APPR STARTS 11/12/2002 EXPIRES IF NO WORK DONE BY 05/11/2003 TYPE OF WORK: Maintenance/Repair/Replace ESTIMATED JOB COST $ 47,000.00 It is understood by the property owner that falsifying information and using an unlicensed contractor is a misdemeanor and MN Statute violation. X OWNER GOULD INVESTORS TRUST 60 CUTTER MILL ROAD SUITE GREAT NECK NY 11021 303 CONTRACTOR CONSTRUCTION 70 INC. 2808 ANTHONY LANE SOUTH MINNEAPOLIS MN 55418 Enforcement & adrmnistration of the MN State Bldg. Code is a public service and is of necessity limited in nature. Consequently, this building permit and the subsequent building. inspections are not to be construed or relied upon as any type of warranty, guarantee, or representation on the part of the city that the plans, construction or finished product are necessarily in conformance with the provisions of the Minnesota State Building code or other applicable construction standards. Further, the city assumes no responsibility or liability for damages of any nature allegedly arising out of the issuance of this permit or subsequent inspections. Approved by .~. /7 PROPERTY 4811 CENTRAL AVE TENANT FEES SURCHARGE $ 23.50 ~UILDING $ 1,012.20 TOTAL FEES $ 1,035.70 PERx¥IIT "---- CITY OF COLU~IBIA HEIGHTS 590 40TM Avenue NE 4' ' Columbia Heights, ~ 55421-3878 763-706-3678 114 ~ ' ...... ~ Bu~ ±cl~ng Permit INTERIOR REMODEL TO BW3 STP~RTS 07/09/2003 EXPIRES IF NO WORK DONE BY 01/05/2004 TYPE OF WORK: Alteration/Remodle ESTIMATED JOB COST $ 10,000.00 It is understood by the property owner that falsify/rig information and using an unlicensed contractor is a misdemeanor and MN Statute violation. X OWNER GOULD INVESTORS TRUST 60 CUTTER MILL ROAD SUITE 303 GREAT NECK NY 11021 CONTRACTOR WITCHER CONSTRUCTION 9.855 WEST 78TH ST EDEN PRAIRIE MN 55344 Enforcement & administration of the MN State Bldg. Code is a public serv/ce and is of necessity limited in nature. Consequently, this building permit and the subsequent building inspections are not to be construed or relied upon as any type of warranty, guarantee, or representation on the part of the city that the plans, construction or finished product are necessarily in conformance with the provisions of the Minnesota State Building code or other applicable construct/on standards. Further, the city assumes no responsibility or liability for damages of any nature allegedly ar/sing out of the issuance of this permit or subsequent inspections. Applicant's Signature: Approved by RECEIPT # ~ PROPERTY 4811 CENTRAL AVE TENANT FEES SURCHARGE ~UILD1 $ $ 5.00 181.25 TOTAL FEES 186.25 CITY COUNCIL LETTER Meeting of: September 22 2003 AGENDA SECTION: Other Ordinances and Resolutions ORIGINATING DEPT.: CITY MANAGER NO: '-/- A - ~ Community Development APPROVAL pertaining to Zoning & Dev Ordinance #1428 DATE: September 15, 2003 NO: A request to amend certain sections of the Zoning and Development Ordinance as related to the adoption of Columbia Heights Design Guidelines. Back~round: The Columbia Heights Design Guidelines process that started in 2002 in now complete and ready for adoption. As a part of this process, the Columbia Heights Design Guidelines Task Force has recommended certain zoning amendments necessary in order to keep the Design Guidelines document and the Zoning and Development Ordinance consistent. Certain Zoning and Development Ordinance amendments have been recommended by the Task Force, Planning Commission, and the planning consultants involved with the adoption of the Columbia Heights Design Guidelines. These amendments are attached and have been identified as necessary in order to keep document consistency, and to ensure that guidelines are effective, useful, and serve their purpose. The changes are minor in nature, covering various sections of the ordinance, including building design standards, lighting standards, off-street parking standards, setbacks, landscaping standards, mixed-use district standards, and the establishment of a new Design Overlay District. Some of these changes are also expected to facilitate redevelopment activities, such as the Kmart site. A presentation on the guidelines and related amendments was given by City design consultant URS and City staff at the prior City Council work session. Recommendation: The Planning Commission at their August 6, 2003 meeting recommended approval of attached amendments to the City Council. Staff recommends approval of Ordinance No. 1460, being an ordinance amending Ordinance No. 853, pertaining to Zoning and Development Ordinance No. 1428. Recommended Motion: Move to waive the reading of Ordinance No. 1460, there being ample copies available to the public. Move to schedule the second reading of Ordinance No. 1460, being an Ordinance amending Ordinance No. 853, pertaining to Zoning and Development Ordinance No. 1428 for Monday, October 13, 2003, City Hall Council Chambers at approximately 7:00 p.m. Attachments: Ordinance amendments; Ord # 1460; COUNCIL ACTION: ORDINAaNCE NO. 1460 BEING AN ORDINANCE AMENDING ORDINANCE NO. 853, CITY CODE OF 1977, PERTAINING TO ZONING AND DEVELOPMENT ORDINANCE #1428 The City of Columbia Heights does ordain: Section 1: Section 9.614 Building Design Standards. Section 9. 614 shall be amended to read as follows: 5) Design Guidelines. The City Council may adopt by resolution design guidelines that shall apply to designated areas or districts of the City with greater specificity than the standards in this section. Where there is a conflict between the design guidelines and the standards in this section, the guidelines shall apply. 9.614 Building Design Standards. 3) Building Materials and Design. Currently reads: 3) (b) At least 30% of the first floor faqade that faces a public street, sidewalk or parking lot shall be windows or doors of clear of lightly tinted glass that allows views into and out of the building at eye level for non-residential uses. Shall be amended to read as follows: 3) (b) At least 30% 20% of the first floor facade that faces a public street, sidewalk or parking lot shall be windows or doors of clear of lightly tinted glass that allows views into and out of the building at eye level for non-residential uses. 9.611 Lighting: Currently reads: Lighting Fixtures. Lighting fixtures shall be of a downcast with flat lens, cut-off type that conceals the light source from view and prevents light from shining on adjacent property. At no time should a fixture be aimed and/or tilted above a horizontal plane in commercial or industrial districts. Shall be amended to read as follows: Lighting Fixtures. Lighting fixtures shall be of a downcast with flat lens, cut-offtype that conceals the light source from view and prevents light from shining on adjacent property. At no time should a fixture be aimed and/or tilted above a horizontal plane in commercial or industrial districts, with the exception of architectural up-lighting or landscape lighting. Section 9.612 Currently reads: 8) Off-street Parking District. Should the City establish a public off-street parking district, those uses located within the district shall be exempt from providing off-street parking spaces as required herein. Shall be amended to read as follows: 8) Off-street Parking District. Should the City establish a public off-street parking district, those uses located within the district shall be exempt fi-om providing off-street parking spaces as required herein. The CBD, Central Business District, is established as a public off-street parking district, so that nonresidential uses are exempt from providing off-street parking spaces as required herein. Residential uses, including those in mixed-use buildings, shall provide off-street parking as required herein. Section 9.1006 CBD, Central Business District Shall be amended to read as follows: s) Off-Street Parking. The CBD, Central Business District, shall be considered an Of- Street Parking District in which off-street parking is not required for nonresidential land uses. Residential uses, including those in mixed-use buildings, shall meet the parking requirements of Section 9.612. Section 9.1003 Lot Dimensions, Height and Bulk Requirements Currently reads: LB GB CBD Minimum Lot Area 6,000 sq. ft. 6,000 sq. ft. Minimum Lot Width 50 feet 40 feet 20 feet Minimum Lot Depth Lot Area Per Dwellin~ Unit Single Family Dwellin~ 6,500 sq. ft Multiple Family Dwellin~ Efficiency 1,200 sq. il. 1,200 sq. One bedroom 1,800 sq. ft. 1,800 sq. ft Two bedroom 2,000 sq. ft 2,000 sq. ft Three bedroom 2,500 sq. ft. 2,500 sq. ft. Additional bedroom 400 sq. ft 400 sq. ft. Congregate Livinl[ Units 400 sq..fi. 400 sq. ft. Hotel or motel 400 sq. ft. Hospital 600 sq. ft Buildinl~ Setback Requirements Front Yard 12 feet 15 feet 1 foot Side Yard 15 feet None None Comer Side Yard l0 feet I~ feet I foot Rear Yard 20 feet 20 feet 10 feet Parkin~ Setback Requirements Front Yard 12 feet 15 feet I foot Side Yard 5 feet 5 feet None Comer Side Yard 12 feet 15 feet 1 foot Rear Yard 5 feet 5 feet 5 feet Maximum Height 35 feet 35 feet Maximum Lot Coverage Floor Area Ratio 1.0 6.0 ..... Section 9.1003 Lot Dimension, Height and Bulk Requirements. Shall be amended to read as.follows. LB GB CBD Minimum Lot Area 6,000 sq. ft. 6,000 sq. tt. Minimum Lot Width 50 feet 40 feet 20 feet Minimum Lot Depth Lot Area Per Dwelling Unit Single Fan~ly Dwelling 6,500 sq. ff. Multiple Family Dwelling Efficiency 1,200 sq. fi: 1,200 sq. ft. One bedroom 1,800 sq. ft. 1,800 sq. ff. Two bedroom 2,000 sq. ft. 2,000 sq. ft. Three bedroom 2,500 sq. ft. 2,500 sq. 11. Additional bedroom 400 sq. 11. 400 sq. 11. Congregate Living Units 400 sq. 11. 400 sq. ft. Hotel or motel 400 sq. ff. Hospital 600 sq. 11. Building Setback Requirements Nonresidential/Mixed-Use Front Yard None' Residential Front Yard 5 feet Front Yard 12 feet 15 feet 4- None Side Yard 15 feet None None Comer Side Yard I 0 feet 15 feet 1 foot Rear Yard 20 feet 20 feet 10 feet Parking Setback Requirements Front Yard 12 feet 15 feet 1 foot Side Yard 5 feet 5 feet None Comer Side Yard 12 feet 15 feet 1 foot Rear Yard 5 feet 5 feet 5 feet Maximum Height 35 feet 35 feet Maximum Lot Coverage Floor Area Ratio 1.0 6.0 9.613 5) Landscaping and Screening. Screening Requirements. Screening shall be provided in accordance with the following requirements: Currently reads: a) All off-street parking areas containing six (6) or more parking spaces and located adjacent to or across a public right-of-way (street or alley) from a residential or residentially zoned property, the parking area shall be screened along the boundary with the residential use. Where any commercial or industrial use is located adjacent to or across a public right-of-way (street or alley) from a residential or a residentially zoned property, the commercial or industrial use shall be screened along the boundary with the residential use. Shall be amended to read as follows: a) All off-street parking areas containing six (6) or more parking spaces and located adjacent to ............ u~;~ ~,~u, ,.c ...... r~,..,~...~ ~.~.a ~.-.-.-. ide ti 1 ......... v,~. ..... o ........: ~ .............~ ..... ares n a or residentially zoned property, the parking area shall be screened along the boundary with the residential use. Where any commercial or industrial use is located adjacent ......... v ....... ~,.~ cf way ~ ............ j] or across a public alley from a residential or a residentially zoned property, the commercial or industrial use shall be screened along the boundary with the residential use. 6) Section 9.613 6) Shall be amended to read as follows: Screening of Parking Areas from Adjacent Properties. All parking and loading areas (including drive-through facilities, pump island service areas and stacking spaces) abutting a public street or sidewalk shall provide: a) A landscaped frontage strip at least 5 feet wide along the public street or sidewalk. If a parking area contains over 100 spaces, the minimum required landscaped frontage strip shall be increased to 8 feet in width. b) Screening consisting of either a masonry wall, fence, berm or hedge or combination that forms a screen a minimum of 3 feet in height, a maximum of 4 ~ feet in height, and not less than 50 percent opaque on a year-round basis. For reasons of personal safety and security, parking lot screening should allow clear visibility of pedestrians above the 3-foot high viewing range. c) Trees shall be planted at regular intervals of no greater than 50 feet within the frontage strip. .: Section 9.1203 Mixed Use Development District Types Currently reads: Mixed Use Development District Types. The City's Comprehensive Plan identifies three distinct mixed-use development opportunities with the City. 1) Transit Oriented Mixed-Use. The purpose of the Transit-Oriented Mixed Use is to promote development and redevelopment that facilitates linkages and interaction of transit services, housing and neighborhood services. The focus of land use within this district is to ensure a pedestrian friendly environment and pedestrian connections to and from residential development and transit facilities. The mix of land use shall be 60 percent service-oriented commercial/retail and 40 percent high density residential development (12 units/acre minimum). Section 9.1203 Mixed Use Development District Types Shall be amended to read as follows: Mixed Use Development District Types. The City's Comprehensive Plan identifies three distinct mixed-use development opportunities with the City. i) Transit Oriented Mixed-Use. The purpose of the Transit-Oriented Mixed Use is to promote development and redevelopment that facilitates linkages and interaction of transit services, housing and neighborhood services. The focus of land use within this district is to ensure a pedestrian friendly environment and pedestrian connections to and from residential development and transit facilities. The mix of land use shall be 60 d¢;'e!opmcnt flexible to help facilitate a successful development (12 units/acre minimum). 4) 4) Section 9.1205 Performance Standards. The following performance standards shall be applied to all mixed-use developments. Currently reads: I) The minimum size of a mixed-use development shall be five (5) acres. Shall be amended to read as follows: 1) The minimum size of a mixed-use development shall be flexible to help facilitate a successful development. Section 9.1301 General Provisions Currently reads: Establishment of Overlay District. The following overlay districts are established: a) Floodplain Management Overlay District b) Shoreland Management Overlay District Section 9.1301 General Provisions Shall be amended to read as follows: Establishment of Overlay District. The following overlay districts are established: a) Floodplain Management Overlay District b) Shoreland Management Overlay District c) Design Overlay District Section 9.1304 Shall be amended to read as follows: 1) Purpose: The Design Overlay Districts are established to increase the visual appeal and pedestrian orientation of certain major street corridors within the City, thereby increasing the economic vitality of these corridors, and to support the goals of the Comprehensive Plan. 2) Establishment. The following design overlay districts are established: a) Central Avenue Design District b) 40th Avenue Design District c) Highway Design District 3) a) b) Design Guidelines. The Columbia Heights Design Guidelines shall apply to development within the Design Districts. The Columbia Heights Design. Guidelines are hereby incorporated into this ordinance by reference in order to: Guide developers or business owners wishing to propose expansions, renovations or new construction of buildings or parking within the Design Districts; Assist City officials and staff in reviewing development proposals. 4) Applicability of Design Guidelines. Design guidelines shall apply to all nonresidential, mixed-use and/or multi-family buildings, and to the following activities: · New construction; · Any exterior changes, including repainting, with the exception of replacement or repair of existing materials; · Any internal remodeling or expansion activity that increases the overall size of the building by 10 percent or more; · Any development or expansion of parking areas that would result in a lot with more than four parking spaces. · Minor alterations such as repainting may be handled administratively, as determined by the City Planner. The guidelines are intended to be mandatory. It is assumed that the intent of the guidelines shall be met; however, it is understood that there may be ways to achieve the same design objective. The City may permit alternative approaches that in its determination, meet the objective(s) of the guidelines(s) equally well. The guidelines shall apply only to the building or site elements being developed or altered. That is, a proposal for changes to a building would be required to meet only those standards that pertain to buildings, while changes to a parking area would be required to meet all standards for parking areas, but not for buildings. The City Planner will make the initial determination as to which standards are applicable. Design Review shall be conducted as part of the site plan review process, as specified in Section 9.413. Section 2: This ordinance shall be in full force and effect from and after 30 days after its passage. First Reading: Second Reading: Date of Passage: September 22, 2003 Offered by: Seconded by: Roll Call: Patricia Muscovitz, Deputy City Clerk Mayor Julienne Wyckoff CITY COUNCIL LETTER Meeting of: September 22, 2003 AGENDA SECTION: Other ordinances and resolutions ORIGINATING DEPT.: CITY MANAGER NO: "~ - f~ - '~ Community Development APPROVAL ITEM: R esolution2003-30, A resolution adopting BY: Tim Johnson BY: j~/~ Columbia Heights Design Guidelines DATE: September 15, 2003 NO: Background: The Columbia Heights Design Guidelines process that started in fall of 2002 is now complete, and is ready for endorsement by the City Council. The Columbia Heights Design Guidelines document was developed by City Staff, consultants, interested citizens and a Task Force with representatives fi.om the City Council, Planning Commission, area businesses, and landowners. A community preference survey/open house was held in January to receive public commentary on the Design process, and the results are attached in the back of the Design Guidelines document. The Columbia Heights Design Guidelines document that you were recently sent a copy of, will build on and compliment recent streetscape improvements, and will help to guide developers and businesses wishing to expand, renovate, or proposing new additions or construction. The guidelines apply to non-residential, mixed-use, and/or multi-family buildings but do not apply to existing single-family homes. These guidelines will apply to the Kmart Site Redevelopment Project, and were used recently to achieve a unique design for the proposed Discount Tire store at 53rd and Central. The purpose of this document is to encourage quality construction and consistency in future building or renovation projects. This document is flexible in nature, offering a number of options to achieve quality construction and design, and to encourage creative design features for future projects. The guidelines will be linked to the Zoning and Development Ordinance through the creation of three Design Overlay Districts identified in this document. At the work session, staff encourages any questions you have on this document. However, as a reminder the Design Guidelines document you received several weeks ago, has recently been endorsed by the Design Guidelines Task Force and Planning Commission, and is in final draft form and ready for City Council endorsement. A presentation on the guidelines and related amendments was given by City design consultant URS and City staff at the prior City Council work session. Recommendation: The Planning and Zoning Commission at their August 6 meeting, recommended approval of attached resolution 2003-30, adopting design guidelines for the Central and 40® Avenue Corridors. Recommended Motions: Move to waive the reading of Resolution 2003-30, there being ample copies available to the public. Move to adopt Resolution 2003-30, a resolution adopting Columbia Heights Design Guidelines for the Central and 40th Avenue Corridors. Attachments: Resolution 2003-30; Desi$n Guidelines; Public ?rocess (bullet ?oint) COUNCIL ACTION: RESOLUTION NO. 2003-30 CITY OF COLUMBIA HEIGHTS, MINNESOTA A RESOLUTION ADOPTING COLUMBIA HEIGHTS DESIGN GUIDELINES FOR THE CENTRAL AND 40TH AVENUE CORRIDORS WHEREAS, the City of Columbia HeiSts has undertaken a process of preparing design guidelines that will build on and complement recent streetscape improvements, in which these guidelines will apply to the Central Avenue and 40th Avenue corridors; and WHEREAS, the Design Guidelines will be implemented to guide developers and business owners wishing to improve, expand, renovate, or proposing new building or parking construction; and to assist City Officials in reviewing development proposals; and WHEREAS, these guidelines were developed by City Staff, consultants and a Task Force with representatives fi.om the City Council, Planning Commission, area businesses, landowners, and interested citizens; and WHEREAS, the City intends that these guidelines be mandatory, however it is understood that there may be many ways to achieve similar design objectives through alternative approaches; and WHEREAS, the design guidelines will be linked to the Zoning Ordinance throu~ the creation of three Design Overlay Districts consisting of the Central Avenue Business District (CBD), the 40th Avenue District, and the Highway District; and BE IT FURTHER RESOLVED that the Planning Commission has reviewed the Columbia Heights Design Guidelines, and recommends approval to the City Council. Passed this day of 2003. Offered by: Second by: Roll Call: Attest: Mayor Julienne Wyckoff Patricia Muscovitz, Deputy City Clerk Community De~ From: Date: Re: City Council Tim Johnson, City Planner 9/16/2003 Columbia Heights Design Guidelines Public Process. City Council establishes Design Guidelines Task Force in October 2002. Design Guidelines Task Force first meeting at Murzyn Hall October 29, 2002. Design Guidelines Task Force, City Council, Planning Commission take field trip on December 14, 2002. Visited various commercial, mixed-use, high-density residential redevelopment project sites around the metro area. Notice of Public Workshop posted in January 16, 2003 edition of the Focus News. Letter sent out January 13, 2003 to Central Avenue and 40th Avenue businesses to inform them about the Public Workshop to be held in January 2003. City of Columbia Heights posts notice of January 2003 Public Workshop at City Hall, Library, website advertising this event. Columbia Heights Public Workshop/Community Preference Survey held at Murzyn Hall January 22, 2003. Approximately 35 attendees. Design Guidelines Task Force meets as follow up to workshop and reviews community response and develops guideline consensus. Design Guidelines Task Force has final meeting in April 2003 and lends support to Final Draft of Design Guidelis. es document. Planning Commission recommends adoption of Design Guidelines document and holds Public Heating on related Zoning Amendments at their August 2003 meeting. (Public Heating posted in Focus News July 24, 2003). CITY COUNCIL LETTER Meeting of: September 22, 2003 AGENDA SECTION: Other Ordinances and Resolutions ORIGINATING DEPT.: CITY MANAGER NO: '~_ )~ -~ fl- _ Community Development APPROVAL ITEM: Ordinance No. 1462, Amendment of Ora #853, BY: Tim Johnson BY:~~.~,~ pertaining to Zoning & Dev Ordinance #1428 DATE: September 15, 2003 NO: Kmart Redevelopment Site Rezoning 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 commemial/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 from 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. (Adoption by Ordinance explanation by City Attorney at meeting). 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 Ordinance No. 1462, which is an ordinance 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 Ordinance No. 1462, there being ample copies available to the public. Move to schedule the second reading of Ordinance No. 1462, being an ordinance amending Ordinance No. 853, pertaining to Zoning and Development Ordinance No. 1428 for Monday, October 13, 2003 City Council Chambers at approximately 7:00 p.m. Attachments: Ordinance No. 1462; COUNCIL ACTION: ORDINANCE NO. 1462 BEING AN ORDINANCE AMENDING ORDINANCE NO. 853, PERTAINING TO ZONING AND DEVELOPMENT ORDINANCE NO 1428, PERTAINING TO TI-~ REZONING OF CERTAIN PROPERTIES LOCATED AT 4707, 4747, 4757, 4801, 4811, 4849 CENTRAL AVENUE Section 1: 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 WI-IEREAS, 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 site 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. Section 2: This ordinance shall be in full force and effect from and after 30 days after its passage. First Reading: September 22, 2003 Second Reading: Date of Passage: Offered by: Seconded by: Roll Call: Mayor Julienne Wyckoff Pathcia Muscovitz, Deputy City Clerk CITY COUNCIL LETTER Council Meeting of: September 22, 2003 AGENDA SECTION: ORDINANCES AND ORIGINATING CITY RESOLUTIONS DEPARTMENT: MANAGER'S NO: ") - ~' '*~ CITY MANAGER'S APPROVAL ITEM: ORDINANCE 1461, BEINGAN BY: TOMJOHNSO~ BY: ORDINANCE ESTABLISHING POLICE CHIEF~L ) DATE: ABATEMENT OF PUBLIC NUISANCES DATE: 9-17-03 ,a~q~v L,/ PROCESS NO: BACKGROUND: The City of Columbia Heights for many years has had a Public Nuisance ordinance on the books. This ordinance includes such things as animal complaints, snow removal, noxious weed abatement, etc. Under our current Public Nuisance Ordinance, with the exception of noxious weeds, the city cannot abate a nuisance and recover costs of the abatement from the property owner. This would include the extremely high cost of cleanup created if we were to have a chemical cleanup such as a Meth Lab. We can charge a person with allowing a Public Nuisance, but in most cases this would mean the paying of a misdemeanor fine of up to $1000 and/or imprisonment of up to 90 days or both. In most cases the fine on any misdemeanor ordinance violation runs no more than $50. It would also be up to a judge to determine if restitution would be paid or not. ANALYSIS/CONCLUSION: Staff believes that some public nuisances are recurring problems that are not necessarily resolved with the issuing of a citation. Staff feels that by having the means to rectify and cleanup an ongoing public nuisance, and having the means to recover the cost of this cleanup, would assist us in keeping public nuisances to a minimum in our community. It is the recommendation of staff that the attached ordinance have its first reading at the September 22, 2003, City Council meeting. RECOMMENDED MOTION: Move to waive the reading of Ordinance 1461, there being ample copies available to the public. RECOMMENDED MOTION: Move to schedule the second reading of Ordinance 1461, being an Ordinance Establishing Abatement of Public Nuisances Process for October 13, 2003, at approximately 7:00 PM in the Council Chambers. COUNCIL ACTION: ORDINANCE 1461 BEING AN ORDINANCE ESTABLISHING ABATEMENT OF PUBLIC NUISANCES PROCESS The City of Columbia Heights does hereby establish Chapter 8, Article VI, Section 1 of the City Code to read as follows: § 8.601 DUTIES OF CITY OFFICERS. (1) The City Engineer, Public Works Superintendent, Police Department, Fire Department, Building Official, City Planner, or other designated official shall enforce the provisions of this chapter relating to nuisances affecting public safety. The Police Department shall enforce provisions relating to other nuisances and shall assist the other designated officers in the enforcement of provisions relating to nuisances affecting public safety. Such officers shall have the power to inspect private premises and take all reasonable precautions to prevent the commission and maintenance of public nuisances. § 8.602 ABATEMENT. (1) Notice. Written notice of violation; notice of the time, date, place and subject of any hearing before the City Council; notice of City Council order; and notice of motion for summary enforcement hearing shall be given as set forth in this section. (a) Notice of violation. Written notice of violation shall be served by the officer charged with enforcement on the owner of record or occupant of the premises either in person or by certified or registered mail. If the premises is not occupied, the owner of record is unknown, or the owner of record or occupant refuses to accept notice of violation, notice of violation shall be served by posting it on the premises. (b) Notice of City Council hearing. Written notice of any City Council hearing to determine or abate nuisance shall be served on the owner of record and occupant of the premises either in person or by certified or registered mail. If the premises is not occupied, the owner of record is unknown, or the owner of record or occupant refuses to accept notice of the City Council hearing, notice of City Council hearing shall be served by posting it on the premises. (c) Notice of City Council order. Except for those cases determined by the city to require summary enforcement, written notice of any City Council order shall be made as provided in M.S. § 463.17 (Hazardous and Substandard Building Act), as it may be amended from time to time. (d) Notice of motion for summary enforcement. Written notice of any motion for summary enforcement shall be made as provided for in M.S. § 463.17 (Hazardous and Substandard Building Act), as it may be amended from time to time. (2) Procedure. Whenever the officer charged with enforcement determines that a public nuisance is being maintained or exists on premises in the city, the officer shall notify in writing the owner of record or occupant of the premises of such fact and order that such nuisance be terminated or abated. The notice of violation shall specify the steps to be taken to abate the nuisance and the time within which the nuisance is to be abated. If the notice of violation is not complied with within the time specified, the enforcing officer shall report that fact forthwith to the City Council. Thereafter, the City Council may, after notice to the owner or occupant and an opportunity to be heard, determine that the condition identified in the notice of violation is a nuisance and further order that if the nuisance is not abated within the time prescribed by the City Council, the city may seek injunctive relief by serving a copy of the City Council order and notice of motion for summary enforcement. (3) Emergency procedure; summary enforcement. In cases of emergency, where delay in abatement required to complete the notice and procedure requirements set forth in divisions (1) and (2) of this section will permit a continuing nuisance to unreasonably endanger public health safety or welfare, the City Council may order summary enforcement and abate the nuisance. To proceed with summary enforcement, the officer charged with enforcement shall determine that a public nuisance exists or is being maintained on premises in the city and that delay in abatement of the nuisance will unreasonably endanger public health, safety or welfare. The enforcement officer shall notify in writing the occupant or owner of the premises of the nature of the nuisance and of the city's intention to seek summary enforcement and the time and place of the City Council meeting to consider the question of summary enforcement. The City Council shall determine whether or not the condition identified in the notice to the owner or occupant is a nuisance, whether public health, safety or welfare will be unreasonably endangered by delay in abatement required to complete the procedure set forth in division (1) of this section, and may order that such nuisance be immediately terminated or abated. If the nuisance is not immediately terminated or abated, the City Council may order summary enforcement and abate the nuisance. (4) Immediate abatement. Nothing in this section shall prevent the city, without notice or other process, from immediately abating any condition which poses an imminent and serious hazard to human life or safety. § 8.603 RECOVERY OF COST. (1) Personal liability. The owner of premises on which a nuisance has been abated by the city shall be personally liable for the cost to the city of the abatement, including administrative costs. As soon as the work has been completed and the cost determined, the City Clerk- Treasurer or other official designated by the City Council shall prepare a bill for the cost and mail it to the owner. Thereupon the amount shall be immediately due and payable at the office of the City Clerk-Treasurer. (2) Assessment. If the nuisance is a public health or safety hazard on private property, the accumulation of snow and ice on public sidewalks, the growth of weeds on private property or outside the traveled portion of streets, or unsound or insect-infected trees, the City Clerk- Treasurer shall, on or before September 1 next following abatement of the nuisance, list the total unpaid charges along with all other such charges as well as other charges for current services to be assessed under M.S. § 429.101, as it may be amended from time to time, against each separate lot or parcel to which the charges are attributable. The City Council may then spread the charges against such property under that statute and other pertinent statutes for certification to the County Auditor and collection along with current taxes the following year or in annual installments, not exceeding ten, as the City Council may determine in each case. § 8.604 GENERAL PENALTY. (1) Any person, firm, or corporation who violates any provision of this code for which another penalty is not specifically provided shall, upon conviction, be subject to a fine not exceeding $1,000, imprisonment for a term not exceeding 90 days, or both. In either case, the costs of prosecution may be added. A separate offense shall be deemed committed upon each day during which a violation occurs or continues. (2) The failure of any officer or employee of the city to perform any official duty imposed by this code shall not subject the officer or employee to the penalty imposed for a violation unless a penalty is specifically provided for such failure. This ordinance shall be in full force and effect from and after thirty (30) days after its passage. First Reading: Second Reading: Date of Passage: Offered by: Seconded by: Roll Call: Julienne Wyckoff, Mayor Patricia Muscovitz, Deputy City Clerk