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November 22, 2004 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 ADMINIS TRA T/ON dulienne I, Fyckoff Councihnembers. Robert ,4. H/illiams B/'uce Ncnl,rocki Tammera Ericson Bruce Kelzenberg Citt~ Manager [,Vcdter 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, November 22, 2004 in the City Council Chambers, City Hall, 590 40th Avenue N.E., Colmnbia 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: Father A1 Backmann, Immaculate Conception Church 1. CALL TO ORDER/ROLL CALL 2. PLEDGE OF ALLEGIANCE ADDITIONS/DELETIONS TO MEETING AGENDA (The Council, upon majority vote of its members, may make additions and deletions to the agenda. These may be items brought to the attention of the Cormcil reader the Citizen Forum or items submitted after the agenda preparation deadline.) 4. PROCLAMATIONS~ PRESENTATIONS~ RECOGNITIONS AND GUESTS A) Proclamations - none B) Presentations - none C) Introduction of New Employees - none D) Recognition 1) Make a Difference Day - Rising to New Heights P5 CONSENT AGENDA (These items are considered to be routine by the City Com~cil 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 Consem Agenda items as follows: 1) Approve Minutes for October 25 and November 8, 2004 regular City Cormcil meeting a) MOTION: Move to approve the mimltes of the October 25, 2004, regular City Council meeting as presented. P6 b) MOTION: Move to approve the minutes of the November 8, 2004, regular City Council meeting as presented. P23 2) Accept Boards and Colmnissions Meeting Minutes a) MOTION: Move to accept the November 1, 2004 minutes of the Library Board. P31 b) MOTION: Move to accept the November 1, 2004 minutes of the Traffic Com~Tfission. P33 c) MOTION: Move to accept the July 29, 2004 special minutes of the EDA. P37 d) MOTION: Move to accept the September 21, 2004 minutes of the EDA. P41 e) MOTION: Move to accept the October 25, 2004 sPecial minutes of the EDA. P46 f) MOTION: Move to accept the September 27, 2004 special minutes of the EDA. P49 THE CITY OF COLUMBIA HEIGHTS DOES NOT DISCRIMINATE ON THE BASIS OF DISABILITY IN EMPLOYMENT OR THE PROVISION OF" SERVICES EQUAL OPPORTUNITY EMPLOYER City Council Agenda November 22, 2004 Page 2 of 4 g) MOTION: Move to accept the September 15, 2004 special mimltes of the EDA. P51 3) Adopt Resolution No. 2004-80, being a Resolntion canceling the Monday, December 27, 2004 regular City Council meeting. P54 MOTION: Move to waive the reading of Resolution No. 2004-80, there being ample copies available to the public. MOTION: Move to adopt Resolution No. 2004-80, being a Resolution canceling the Monday, December 27, 2004 regular City Council meeting. 4) Adopt Resolution No. 2004-82, being a Resolntion authorizing the sale of $2~000,000 general obligation improvement bonds series 2004A P56 MOTION: Move to waive the reading of Resolution No. 2004-82 there being ample copies available to the public. MOTION: Move to adopt Resolution No. 2004-82, being a Resolution authorizing the sale of $2,000,000 general obligation improvement bonds series 2004A. s) Approve transfer of funds fronl the General Fund to the Police Department Budget to Reimburse Overtime Fund P 103 MOTION: Move to transfer $6,076.75, the total anlount received from Unique Tl2'ift Store, Immaculate Conception Church, Robert Manson, Attorney at Law, Independent School District # 13, Columbia Heights High school, and Keith Jolmson for off duty security work and/or testifying in COUl% fi'om the General Fund to the Police Department 2004 budget under line #1020, Police Overtime. 6) Establish a Public Hearing date of December 13, 2004 - Reallocating of CDBG funds P 124 MOTION: Establish a Public Hearing date for December 13, 2004 for the purpose of reallocating CDBG funds fi'om the sale of 4607 Tyler Street NE for the demolition of the Burger King Restaurant located at 3939 Central Avenue and the MGS Building at 322 40th Avenue NE, Columbia Heights. 7) Accept Change Order No. 1 and Final Payment for Miscellaneous Concrete Proiect #0400 P 126 MOTION: Move to authorize Contract Change Order No. 1 for additional work added to the contract b the City to Ron Kassa Construction, Inc. in the amount of $8,164.30 with fnnding out of the appropriate ftmds. MOTON: Move to accept the work for 2004 Miscellaneous Concrete Repairs and Installations, City Project #0400 and authorize final payment of $4,128.00 to Ron Kassa Construction, Inc. of Elko, Mi~mesota. 8) First reading of Ordinance No. 1478, being an Ordinance changing the street name of Rainer Pass to Rainier Pass P 133 MOTION: Move to waive the reading of Ordinm~ce No. 1478, there being an~ple copies available to the public. MOTION: Move to set the second reading of Ordinance No. 1478 being an Ordinance changing the street name of Rainer Pass to Rainier Pass for December 13, 2004 at approximately 7:00 p.m. in the Council Chmnbers. 9) Approve final payment for the Supervisory Control and Data Acquisition (SCADA) System to Instrument Control Systems. P 136 MOTION: Move to accept the work for the Supervisory Control and Data Acquisition (SCADA) System and to anthorize final payment of $2,270 to Instrument Control Systems of Plymouth, MN. City Council Agenda November 22, 2004 Page 3 of 4 10) Establish a Hearing Date of December 13, 2004 for revocation or suspension of rental property license at 1308-10 Circle Terrace Blvd., 1132-1134 40th Avenue and 4927 & 4935 University Avenue N.E. P 139 MOTION: Move to Establish a Hearing Date of December 13, 2004 for Revocation or Suspension of a License to Operate a Rental Property within the City of Columbia Heights against Edward Fragale at 1308-10 Circle Terrace Blvd. N.E. MOTION: Move to Establish a Hearing Date of December 13, 2004 for Revocation or Suspension of a License to Operate a Rental Property within the City of Columbia Heights against Myrna Bourcy at 1132-1134 40th Avenue N.E. MOTION: Move to Establish a Hearing Date of December 13, 2004 for Revocation or Suspension of a License to Operate a Rental Property within the City of Columbia Heights against Haji Azam at 4927 & 4935 University Avenue N.E. 11) Approve Rental Housing Licenses Applications P 140 MOTION: Move to approve the items listed for rental housing license applications for November 22, 2004. 12) Approve Business License Applications P 144 MOTION: Move to approve the items as listed on the business license agenda for Nov6mber 22, 2004 as presented regarding the new licenses for 2004 and the renewals for 2005. 13) Approve Payment of Bills P 147 MOTION: Move to approve payment of the bills out of the proper funds as listed in the attached check register covering Check Nmnber 110578 tln'ough 110713 in the alnount of $1,005,292.36. 6. PUBLIC HEARINGS - none e ITEMS FOR CONSIDERATION A) Other Ordinances and Resolutions 1) Adopt Resolution No. 2004-52, being subdivision Request for 1226 43rd Avenue NE MOTION: Move to waive the reading of Resolution No. 2004-52, there being ample copies available to the public. P154 MOTION: Move to adopt Resolution 2004-52, a resolution approving a lot split of the property at 1813 40th Avenue NE/4041 Hayes St. NE, subject to the following conditions of approval that are deemed necessary to protect the public interest and ensure compliance with the provisions of the Zoning Ordinance: 1. The applicant shall provide required utility mhd drainage easements for all newly created lots mhd be responsible for the cost of filing mhd recording written easements with the Anoka County Recorder's Office. 2. The applicant shall pay parkland dedication fees in the amount of $2,195 per lot for each of the two lots newly created lots. This fee is payable at the time of building permit. 3. Should soil conditions on the property wan'ant, information as to how soil conditions will be corrected shall be submitted to the Building Official along with the building pemait application. City Council Agenda November 22, 2004 Page 4 of 4 4. Upon approval of a minor subdivision, the applicant shall be responsible for filing the subdivision survey with the Anoka County Recorder's Office. The minor subdivision shall become invalid if not filed with the Anoka County Recorder within one (1) year of the date of the City Council action. 2) Adopt Resolution No. 2004-79, being a resolution regm'ding the labor agreement between the City of Colmnbia Heights and Law Enforcement Labor Services Local 311. P 167 MOTION: Move to waive the reading of Resolution No. 2004-79, there being ample copies available to the public. MOTION: Move to adopt Resolution No. 2004-79, being a resolmion regarding the labor agreement between the City of Columbia Heights and Law Enforcement Labor Services Local 311. B) Bid Considerations 1) Adopt Resolmion No. 2004-81, being a Resolution for the 2004 Water Tower Fencing and Restoration to rei ect the bids and re-advertise the project in the first quarter of 2005. MOTION: Move to waive the reading of Resolution No. 2004-81, there being ample copies available to the public. P169 MOTION: Adopt Resolution No. 2004-81, being a Resolution for the 2004 Water Tower Fencing and Restoration, City Project No. 0307 to reject the bids m~d re-advertise the project in the first quarter of 2005. c) Other Business 1) Renewal of Cigm'ette/Tobacco Sales License for Salem Tobacco and Jerusalem Card P172 MOTION: Move to deny the 2005 application for a Cigarette/Tobacco Sales license for Mr. Adel Salem dba Salem Tobacco operating at 2325 37th Place NE based on the recolnmendation of the Police Department MOTION: Move to deny the 2005 application for a Cigarette/Tobacco Sales License for Ms. Aquel and Mr. Salem dba Jerusalem Cafd operating at 4921 Central Avenue NE based on the recommendation of the Police Department. 8. ADMINISTRATIVE REPORTS A) Report of the City Manager B) Report of the City Attorney CITIZENS FORUM (At this time, citizens have an opportunity to discuss with the Cotmcil items not on the regular agenda. Citizens are requested to limit their comments to five lninutes.) 10. COUNCIL CORNER 11. ADJOURNMENT Walt Fehst City Manager WF/pm CITY COLINCIL LETTER Meeting of: November 22, 2004 AGENDA SECTION: PROCLDJ~ATIONS, PRESENTA- ORIGINATING DEPARTMENT: CITY MANAGER TIONS, RECOGNITION, & GUESTS APPROVAL No: DJ-- ITEM: RECOGNIT'~ON OF I~KE A DTFFERENCE DAY BY: TED L~DWEHR, BY: PROJECTS SUBMITTED TO ~'RISING TO NEW PRESIDENT OF DATE: HEIGHTS" ~'RISING TO NEW NO: HEIGHTS ' ' DATE: October 23, 2004, was national Hake A Difference Day. This unique national program inspires and rewards volunteers, it is a day of helping others----a celebration of neighbors helping neighbors. "Rising to New Heights" urged people to look around the community and come up with a project and register it with the organization. Tonight "Rising to New Heights" wishes to specially recognize those projects and the people who did them. The following people/groups submitted projects to "Rising to New Heights". Marvin and John Sowada Project: The Sowadas grow organic vegetables on their family farm and also collect money for meat products to be distributed by SACA. Northeast Bank Project: Employees of the bank collect items for food baskets to be distributed by SACA. Columbia Heights Employees Project: 36 city employees prepared "birthday boxes/bags" for children of needy families to be distributed by SACA. Some employees donated cash instead of a bag or box. Participants: Diane Arne, Joanne Baker, Chef Bakken, Jackie Baron (& mother Teresa & brother Eddie), Carole Blowers, Mary Dugdale, Wendy Eckert, Walt Fehst, Matt Graves, Shelley Hanson, Henry Henry, Sherri Jensen, Tom Johnson, Jean Kuehn, Steve Leese, Becky Loader, Linda Magee, Amy Moser, John Murzyn, Patty Muscovitz, Mark Nagel, Bruce Nawrocki, Mike O'Rei!ly, Cheray Olson, Karen Olson, Kelly Olson, Christine Okerstrom, LeAnn Ottney, Joanne Peterson, Jeanine Schmidt, Larry Scott, Nancy Soldatow (& mother Harriet), Joe Sturdevant, Steve Synowczynski, Cristy Tombarge (& mother Rosalie), and Julie Wyckoff Ail the above participants have been contacted in advance to attend tonight's council meeting and to be recognized by Ted Landwehr, President/Director of "Rising to New Heights" P. 5 OFFICIAL PROCEEDINGS CITY OF COLUMBIA HEIGHTS CITY COUNCIL MEETING OCTOBER 25, 2004 The following are the minutes for the regular meeting of the City Council held at 7:30 p.m., i~rmqediately following the Economic Development Authority meeting, on Monday, October 25, 2004 in the City Council Chambers, City Hall, 590 40th Avenue N.E., Columbia Heights, MN. CALL TO ORDER/ROLL CALL Mayor Wyckoff called the meeting to order at 7:30 p.m. Present: Mayor Wyckoff, Councilmember Williams, Councihrtember Nawrocki, Councilmember Ericson, Councilmember Kelzenberg PLEDGE OF ALLEGIANCE - recited ADDITIONS/DELETIONS TO MEETING AGENDA Wyckoff switched items A and B under Items for Consideration. Nawrocki requested that the Fall City Newsletter be placed on the agenda. Wyckoffplaced it as item C 1 under Items for Consideration. Harold Hoium requested addition of Ordinances. Wyckoffindicated this would be discussed later in the meeting. PROCLAMATIONS, PRESENTATIONS, RECOGNITIONS AND GUESTS - none CONSENT AGENDA Walt Fehst, City Manager, took Councihnembers through the items. 1) Approve City Council Meeting Minutes a) Motion to approve the minutes of the October 11, 2004 Special Assessment Levy Hearing for Zone 6 City Council meeting as presented. b) Motion to approve the minutes of the October 11, 2004 Special Assessment Levy Hearing for Zone 7A City Council meeting as presented. c) Motion to approve the minutes of the regular October 11, 2004 City Council meeting. 2) Accept Boards and Commissions Meetin~ Minutes a) Motion to accept the October 5, 2004 minutes of the Library Board of T~a~stees. b) Motion to accept the July 20, 2004 minutes of the HRA. c) Motion to accept the October 4, 2004 minutes of the Traffic Commission. 3) Establish the Canvass of the 2004 General Election results for Wednesday, November 3, 2004 beginnin~ at 5:30 p.m. in the Ci_ty Council Chambers Motion to establish the Canvass of the 2004 General Election results for Wednesday, November 3, 2004 beginning at 5:30 p.m. in the City Council Chambers. Wyckoff stated that date is also her First lYe&~esday with the ~l~rayor meeting at the Librao~, and since there would be a quorum, she would not attend the Canvass meeting. 4) Adopt Resolution 2004-70, being a Resolution to extend the terms of the Southern Anoka County Community Consortium Joint Powers Agreement for payment of the annual fees for FY 2005 and 2006. Removed P. 6 City Council Minutes October 25, 2004 Page 2 of 17 5) Adopt Resolution 2004-71, being a Resolution to approve application to the MN Department of Emplo~nent and Economic Development for a Contamination Clean Up Grant Motion to waive the reading of Resolution 2004-71, there being ample copies available to the public. Motion to adopt Resolution 2004-71, being a Resolution to approve application to the MN Department of Employment and Economic Development for a Contamination Clean Up Grant. Fehst indicated previous grants received and stated that action taken tonight wo~tld indicate the project would move fo~neard. Consent Agenda items #5 and #6 are a joint attem,pt to receive clean ztp fimding. RESOLUTION 2004-71 RESOLUTION AUTHORIZING APPLICATION FOR MINNESOTA DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT CONTAMINATION CLEANUP GRANT PROGRAM WHEREAS, the City Council of the City of Columbia Heights (the "City") has given their support to a master plan for redevelopment of industrial area properties; and WHEREAS, the City has found that there exists conditions of deterioration, blight, substandard structures, and environmental concerns, and there exists a need (due to blighting influences) for intervention by the City to prevent further deterioration an promote redevelopment of the industrial area; and WHEREAS, the City has identified and completed Phase I and Phase II assessments of all industrial properties in the industrial planning area in which various potential contaminants were identified, with the City submitting a Response Action Plan (RAP) to the MPCA for cleanup; and WHEREAS, the DEED grant requires applicants to pay an amount equal to 12% of the cleanup costs from unrestricted money; and NOW, THEREFORE BE IT RESOLVED that the City of Columbia Heights acts as the legal sponsor for the Contmnination Cleanup Grant Program to be submitted on November 1, 2004, and that City Manager, is hereby authorized to apply to DEED for funding on behalf of the City of Columbia Heights, Minnesota; and BE IT FURTHER RESOLVED that the City of Columbia Heights has the legal authority to apply for f'mancial assistance, and the institutional, managerial, and f'mancial capability to ensure adequate project admhfistration; and BE IT FURTHER RESOLVED that the sources and amounts of the local match identified in the application are committed to the project identified; and BE IT FURTHER RESOLVED that the City of Columbia Heights has not violated any Federal, State, or Local laws pertaining to fraud, bribery, graft, kickbacks, collusion, conflict of interest or unlawful or corrupt practice; and BE IT FURTHER RESOLVED that upon approval of its application by the state, the City of Columbia Heights, Minnesota may enter into an agreement with the State of Minnesota for the above-referenced project(s), and that Colnmbia Heights certifies that it will comply with all applicable laws and regulations as stated in all contract agreements; and BE IT FLLR._THE_ R R~SOLVED that the Mayor and City Clerk are hereby authorked to execute such agreements as are necessary to implement the project(s) on behalf of the applicant; and NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Columbia Heights, Minnesota has approved the Contamination Cleannp Grant Application submitted to the Department of Employment and Economic Development (DEED). 6) Adopt Resolution 2004-72, being a Resolution authorizing application to the Metropolitan Council for Tax Base Revitalization Account Funding. Motion to waive the reading of Resolution 2004-72, there being anaple copies available to the public. Motion to Adopt Resolution 2004-72, being a Resolution authorizing application to the Metropolitan Council for Tax Base Revitalization Account Funding. RESOLUTION 2004-72 RESOLUTION AUTHORIZING APPLICATION TO THE METROPOLITAN COUNCIL FOR TAX BASE REVITALIZATION ACCOUNT FUNDING WHEREAS, the City of Columbia Heights is a l:p ~cipant h~ the Livable Communities Act Housing Incentives Program for 2004 as determined by the Metropolitan Z~ancil, and is therefore eligible to make application for funds City Council Minutes October 25, 2004 Page 3 of 17 under the Tax Base Revitalization Account; and WHEREAS, the City has identified a contamination clean-up project within the City that meet the Tax Base Revitalization Account's purpose/s and criteria; and WHEREAS, the City has the institutional, managerial and f'mancial capability to ensure adequate project administration; and WHEREAS, the City certifies that it will comply with all applicable laws and regulations as stated in the contract agreements; and WHEREAS, the City Council of Columbia Heights,. Minnesota agrees to act as legal sponsor for the project contained in the Tax Base Revitalization Account application submitted on November 1, 2004; and 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 agreement as are necessary to implement the project on behalf of the applicant. 7) Second reading of Ordinance 1477, being an Ordinance muending Ordinance 853-10.108(6) City Code of 1977, authorizing the ordinance violation of public nuisance under 10.108(6)(a) to be charged as a petty misdemeanor and subject to the penalties set forth by Resolution Removed 8) Adopt Resolution 2004-69, being a Resolution amending Resolution 2003-06 establishing penalties for the violations listed and allowing for the use of administrative tags when citing for these violations Removed 9) Approve Refuse/Recycling contract with BFI Waste Systems Removed 10) Adopt Resolution 2004-67, being a Resolution amending Resolution 2004-23 authorizing certain Charitable Gambling. Removed. 11) Establish a Hearin~ Date of November 8, 2004 for revocation or suspension of rental property license at 1635' 49th Avenue N.E. Motion to establish a hearing date of November 8, 2004 for revocation or suspension of a license to operate a rental property within the City of Columbia Heights against Abullahi Ehni at 1635 49th Avenue N.E. 12) Approve Rental Housing License Applications Motion to approve the items listed for rental housing license applications for October 25, 2004. 13) Approve Business License Applications Motion to approve the items as listed on the business license agenda for October 25, 2004 as presented and the renewals for 2005. 14) 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 110242 through 110410 in the amount of $932,744.44. Motion by Williams, second by Nawrocki, to approve the Consent Agenda items, with the exception of items #4, 7, 8, 9, and 10. Upon vote: All ayes. Motion carried. #4 Adopt Resolution 2004-70, being a Resolution to extend the terms of the Southern Anoka County Cormnunity Consortium Joint Powers A~'eement for payment of the annual fees for FY 2005 and 2006. Nawrocld indicated that in light of budget concerns, we should not continue our support for the next two years. Fehst stated that other colmnunities involved have adopted continuation of the program. SACCC's fee would remain at the 2004 budget amount. Fehst stated that Police Chief Tom Johnson works with this agency. Nawrocki stated that the funds would be better used toward another patrohnan. P. 8 City Council Minutes October 25, 2004 Page 4 of 17 Motion by Nawrocki to table the SACCC agreement and to consider it along with other budget items. Second by Williams. Williams stated that before agreeing to fund the Values First program, Council should lead by example. If we don't do that, we should not be involved. Fehst stated this program works with and because of many volunteers. He suggested Barb Warren explain the program at a Council meeting or work session. Wyckoff stated that this program is recognized across the nation. There are monthly meetings regarding diversity, mental illness, immigrants, and is worth the cost. Chief Johnson stated that we need money for additional officers, but the Values First progralu reaches out to youth in the cormrtunity, teaching tolerance and accepting diversity. This is the only group reaching out to do this in our colmuunity. Johnson stated that he would be a program volunteer even if our City did not continue to contribute. Kelzenberg asked when this could be discussed at a work session. Fehst stated November 29th. Upon vote: Kelzenberg, aye; Williams, aye; Ericson, nay; Nawrocki, aye; Wyckoff, nay. Motion to table 3 Ayes - 2 Nays. Motion carried. #7 Second reading of Ordinance 1477, being an Ordinance amending Ordinance 853-10.108(6) City Code of 1977, authorizing the ordinance violation of public nuisance under 10.108(6)(a) to be charged as a petty misdemeanor and subject to the penalties set forth by Resolution Chief Johnson stated this would address minor items like illegal turns, rolling through stop signs, and minor speed violations as a public nuisance allowing for the con'ection of behavior with a reasonable fine of a petty misdemeanor. The Officer would have the option to issue a public nuisance or County tag. Right hand turns were discussed. Williams expressed concern of excess speed where children play. Harold Hoium, 4215 5th Street, stated there should be an ordinance against parking on streets 365 days a year. Motion by Nawrocki, second by Williams, to waive the reading of Ordinance 1477 there being mnple copies available to the public. Upon vote: Ayes - Wyckoff, Willimus, Nawrocki, Ehcson, Kelzenberg. Motion carried. Motion by Nawrocki, second by Williams, to adopt Ordinance i477, being an Ordinance amending Ordinance 853-10.108(6) City Code of 1977, authorizing the ordinance violation of public nuisance under 10.108(6)(a) to be charged as a petty misdemeanor and subject to the penalties set forth by Resolution. Upon vote: Ayes - Wyckoff, Williams, Nawrocld, Ericson, Kelzenberg. Motion carried. ORDINANCE 1477 BEING AN ORDINANCE AMENDING ORDINANCE NO. 853, CITY CODE OF 1977, PERTAINING TO PUBLIC NUISANCES WHEREAS Chapter 10, Article 1, Section 8, subdivision 6, which CUlu'ently reads as follows to-wit: 10.108 (6) Minnesota Statutes 609.74 and 609.745, defining crimes constituting public nuisances, are incorporated herein. Is hereby amended to read as follows, to-wit: 10.108 (6) Mhmesota Statutes 609.74 and 609.745, defining crimes constituting public nuisances, are incorporated herein. (a) Notwithstanding am,thing to the contrary herein, a violation of Minnesota Statute 609.74 subd. (2) shall be a petW misdemeanor subiect to the penalties as set forth by City Council Minutes October 25, 2004 Page 5 of 17 #8 Adopt Resolution 2004-69, being a Resolution mnending Resolution 2003-06 establishing penalties for the violations listed and allowing for the use of administrative tags when citing for these violations Johnson stated this would establish the fees for violations issued under the Public Nuisance Ordinance. Ericson questioned if refi-igerator doors are to be removed when waiting for recycling pickup. Johnson stated yes. Wyckoffreferred to Public Nuisance versus Administrative Tag, which was not allowed by the State. Motion by Kelzenberg, second Williams, to waive the reading of Resolution 2004-69, there being ample copies available to the public. Upon vote: Ayes - Wyckoff, Williams, Nawrocki, Ericson, Kelzenberg. Motion carried Motion by Kelzenberg, second Williams, to adopt Resolution 2004-69, being a Resolution amending Resolution 2003-06 establishing penalties for the violations listed and allowing for the use of administrative tags when citing for these violations. Upon vote: Ayes - Wyckoff, Williams, Nawrocki, Ericson, Kelzenberg. Motion carried RESOLUTION NO. 2004-69 BEING A RESOLUTION ESTABLISHING PENALTIES FOR ADMINISTRATIVE OFFENSES WITHIN THE CITY OF COLUMBIA HEIGHTS AS AUTHORIZED BY SECTION 8, CHAPTER 3 OF THE COLUMBIA HEIGHTS CITY CODE WHEREAS, the Columbia Heights City Council adopted Ordinance No. 1358 on October 13, 1997, establishing Section 8, Chapter 3 of the Columbia Heights Code entitled "Administrative Offenses;" and, WHEREAS, Subdivision 7 provides that penalties be imposed for violations of scheduled administrative offenses according to a schedule established and amended from time to time, by Resolution of the City Council; and, WHEREAS, it is the desh'e of the Columbia Heights City Council to amend said administrative offense penalty schedule. THEREFORE, BE IT RESOLVED by the City Council of the City of Columbia Heights that the administrative offense penalty schedule is amended as listed. #9Approve Refuse/Recycling contract with BFI Waste Systems Fehst stated that Jean Kuehn, Special Projects Coordinator, oversaw the contract negotiation and did a very good job. The initial cost reduction was $30,000 plus $4 per ton if State funds remained. The City Council authorized discussions with BFI and Waste Management, which resulted in an additional $192,000 savings based on all levels of service with BFI. An advantage is there will be no disruption of service. This five year contract will stay at the same rate for two years and increase 1.5 percent each year after that. There would still be tln-ee levels of service. An added feature in 2005 would be electronics collection, and a pilot project tbr single sort recycling, which would be ail recycling in one bin with twice a month pickup. Motion by Williams to authorize the Mayor and City Manager to enter into a contract with BFI Waste Systems for refuse/recycling/yard waste removal effective January 1, 2005 - December 31, 2009, and to use the savings to reduce any tax increase for next year. Fehst refen'ed to the memo fi:om the Finance Director, which indicates the supplementation of collection costs with fund balances. He suggested consideration of a franchise fee to benefit our operating expenses. Willimns indicated reducing taxes by this cost savings would soften any tax increase and could be reviewed next year. Elrite stated the rates were reduced in 2000, necessitating the use of fund balances. Ericson stated Council should first decide on the contract and discuss tax reductions in the budget hearings. Williams wanted to make the cmrnuitment tonight. Ericson stated that we have not adopted a budget yet, only set the maximuln levy. P. 10 City Council Minutes October 25, 2004 Page 6 of 17 Nawrocki questioned if the negotiation process was legal. Hoeft stated yes. Nawrocki indicated that the contract would include the savings of no charge for pickup of City refuse. Fehst stated that was reduced from $3,000 down to zero. Nawrocki stated the saving should be passed on to the consumer. He referred to the cun'ent percentage of budgeted funds spent, wlfich could result in a fund balance increase and should be used to reduce the tax increase. Motion seconded by Nawrocki. Hoeft restated the motion and amendment. Kelzenberg stated that we are currently subsidizing this fund from our fund balance, so we are operating at a loss. We can not pass on savings if we are operating at a loss for the last five years. Elrite stated that the fund has operated in the red since 1999. We have not passed on the increase in costs, but continued to take fi'om the reserves, and we have severely depleted our fund balance. Upon vote: Kelzenberg, nay; Williams, aye; Ericson, nay; Nawrocki, aye; Wyckoff, nay. 3 nays - 2 ayes. Motion failed. Motion by Ericson, second by Kelzenberg, to authorize the Mayor and City Manager to enter into a contract with BFI Waste Systems for refuse/recycling/yard waste removal effective January 1, 2005 - December 31, 2009. Upon vote: Ayes - Wyckoff, Willimxas, Nawrocki, Ericson, Kelzenberg. Motion carried. Motion by Nawrocki that the matter of refuse fund cost and savings be discussed at a work session. Second by Williams. Upon vote: Ayes - Wyckoff, Willimns, Nawrocki, Ericson, Kelzenberg. Motion carried. #10. Adopt Resolution 2004-67, being a Resolution mnending Resolution 2004-23 authorizing certain Charitable Gambling. Fehst read the amendment change allowing for a monthly pull-tab booth rental rate of $1,700, all- inclusive, dependent on sales volume. This amendment was a request fi'om the Columbia Heights Athletic Boosters. Nawrocld referred to the letter fi'om the Star Bar owner. He indicated the purpose of pull tab sales was to ~ta~ fee should be negotiated between raise ~iiOI~¢y tut cnmitabt¢ purposes in the ....... '-~' cm~ii~Lhuty and the .... ~ the property owner and pull tab owner. Wyckoff indicated that the property owners do not have to raise their fees. Jen~ Foss, 4412 2nd Street, Gambling Manager for the Athletic Boosters, indicated their group feels this is far' and being done thi'oughout the State to put everyone into aligmnent. You can negotiation a better contract. Motion by Kelzenberg, second by Ericson, to waive the reading of Resolution 2004-67, there being mnple copies available to the public. Upon vote: Ayes - Wyckoff, Williams, Nawrocki, Ericson, Kelzenberg. Motion carried. Motion Kelzenberg, second by Ericson, to adopt Resolution 2004-67, being a Resolution an~ending Resolution 2004-23 authorizing certain Charitable Gambling. Upon vote: Kelzenberg, aye; Williams, aye; Ericson, aye; Nawrocki, nay; Wyckoff, aye. 4 ayes - 1 nay. Motion carried. RESOLUTION NO. 2004-67 BEING A RESOLUTION AUTHOIP. 1 IIG CERTAIN CHARITABLE GAMBLING City Council Minutes October 25, 2004 Page 7 of 17 BE IT RESOLVED by the City of Columbia Heights that gambling, as described in Milmesota Statute 326 shall be prohibited in all bars and liquor establishments within the City which are licensed pursuant to Section 5.501, 5.503, 5.504, 5.505, 5.506, or 5.57 of the City Code unless: 1.The organization wishing to gamble obtains the permission of the Minnesota Charitable Gambling Control Board; 2.The organization wishes to gamble obtains the permission of the Council of the city of Columbia Heights; 3.The organization wishing to gamble has been in existence in Columbia Heights for not less than ten years; 4.The organization wishing to gamble is a bona fide club; 5.The organization wishing to gamble does not pay the proprietor of the licensed premises a rental or lease payment in excess x ~,t e~r ^ ~r ~ no ~, e ........ '~" that allowed by MN Stat.349.18 sub. 1, and as amended. No other payment, set-off, or credit, of any ldnd, other than as set forth above, shall be paid to or on behalf of the proprietor, or any company or vendor providing any service or goods to or on behalf of the proprietor. 6. A license fee not subject to a waiver shall be paid to the City of Columbia Heights in the mount of $250 for Class A and Class B hcenses and $25 for Class C and Class D licenses. License fees shall not be prorated or refundable. Not withstanding anything to the contrary herein, an existing Class A or Class B licensee shall pay a license fee of $25 for any event, of three days or less, to be conducted at a location other than the established license location. 7. If the organization is determined to be in violation of any of the terms or conditions of this Resolution, any authorization hereunder previously granted to conduct said gambling activity may be irmnediately suspended until such violation(s) is/are corrected. Any such determination of violations(s) and any suspension hereunder shall be made as follows: a. At a meeting open to the public; and b. After a minimum often (10) days notice to the organization; and c. After providing the organization with the opportunity to present its position at said meeting; and d. By a simple majority vote of the City Council. NOW, THEREFORE, BE IT RESOLVED that this resolution shall take effect on October 25th and shall replace Resolution 2004-23. PUBLIC HEARINGS Adopt Resolution 2004-55, Adopting a Modification to the Downtown Central Business District (CBD) Revitalization Plan for the CBD Redevelopment Project and Establishing the Huset Park Area TIF District and TIF Plan Randy Schumacher, Assistant Community Development Director, stated that Resolutions 2004-55 and 2004-54 are the last two actions necessary prior to the demolition of the buildings and removal of soil for Phase I of the industrial area. Schumacher listed actions prior to this such as amending the Comprehensive Plan, changing zoning in the area, approving the development agreement, and lifting the moratorium. Steve Bubul, Kennedy and Graven Chartered, smmnarized the resolution, which establishes the new TIF District and modifies the redevelopment plan. This is a pay as you go redevelopment tax increment financing district that includes twelve parcels and meets the requirements of State and HRA law. Cun'ently, ,~_ ~ _ .. , · ,, ...... ~,~'~ with environment more [~ ~ft-,y l_,e, cem of the buildings are substandard. The project area ~s .... v .... contamination and redevelopment would not occur without tkis type of financing. Mark Ruff, Ehlers and Associates, financial consultants for the City, indicated that the financial plan has been shared with Anoka County and School District #13, receiving favorable COmlnents. He stated that the amount of $36,000,000 and 26 years for repayment are the full extent of the amount the City could use, and could include other projects throughout the City. This would allow for land acquisition, site improvements, grading, enviromnent costs not covered by State grants, and portions of the interior and parkway improvements. Ruff indicated that the project anticipates 560 housing units and 13,000 square feet of con~unercial area over a five year period. If the lnarketed amount is $125,000,000, the amount of assistance requested would be $8,000,000 in T!F. Additional costs could be ove~_?uns on acquisition, relocation, site improvements and demolition, which would be financed by the developer. There would be no bonds, and interest would be another $4,000,000. Ruff stated that TIF would be anticipated at approximately $12,000,000 over an eleven to twelve yea' time fi'ame thi'ough phases. Use of surplus TIF would need to be decided within five years, after which the district would be closed. Wyckoff stated that the colmrient of there being 26 vents before taxes are collected is incorrect, with a 12 correct estimate of 13 years. Ruff stated that currelP' .es received are less than $70,000 for the City, City Council Minutes October 25, 2004 Page 8 of 17 County, and School District mid have been declining yearly. The schools will continue to receive their operating budget taxes, which would actually increase to $128,000. The City would continue to receive the current amount. Wyckoff asked Mr. Ruff to explain pay as you go financing. Ruff indicated that because of the risk reduction, most cities use pay as you go fmancing, whereby the developer must buy the property, pay for improvements, streets, m~d utilities, and either develop the property themselves or sell the land. Ruff stated that if the developer would go out of business, the City would hold no responsibility. Williams questioned administrative costs. Ruff indicated the City could capture up to $100,000 for administrative costs. Nawrocki stated displease at removing sixty percent of our industrial property from the tax rolls, and placing high-density housing in this area. High-density rental housing can cause many problems. Nawrocki stated that all agreements and documents to be approved indicated 26 years of TIF, but he would feel better with an $18,000,000 limit. He stated that the development would demand additional City services that taxpayers will have to cover. Wyckoff questioned when the schools would receive $128,000. Ruff indicated within five years, possibly receiving $25,000 the first year. He stated that the schools would benefit by increase em'ollment. Wyckoff indicated that high-density areas such as the LaBelle condos have not been a problem. Wyckoffindicated she would love to see more businesses come into the City, and that this area has a beatltiful view of downtown Minneapolis and is ideal for cmrunuting downtown. Ruff stated that with home sale prices estimated at $225,000 to $250,000, rental would be unlikely. Willial'nS stated his belief that the City must l'nove forward and reemphasized that this project would require only twelve-years, of TIF. If it goes beyond that, the developer must share twenty percent of the cost. Fehst indicated that 100 percent of the up front money comes from the developer. Nawrocki stated that there is a higher interest rate for Pay as you go projects. Wyckoff asked if there were any colmnents from the audience. There were none. Wyckoff closed the public hearing. Motion by Ericson, second by Kelzenberg, to waive the reading of Resolution 2004-55, there being an ample amount of copies available to the public. Upon vote: Ayes: Kelzenberg, Williams, Ericson, Nawrocld, Wyckoff. Motion carried. Motion by Ericson, second by Keizeffl~erg, to Adopt Resolution 2004-55, Adopting a Modification to the Downtown Central Business District (CBD) Revitalization Plan for the CBD Redevelopment Project and Establishing the Huset Park Aa'ea Tax Increment Financing District therein and Adopting a Tax Increment Financing Plan therefore. Motion to amend by Nawrocki, that the TIF amount of $36,000,000 be reduced to $18,000,000. Motion seconded by Williams. Upon vote: Kelzenberg, nay; Williams, aye; Ericson, nay; Nawrocld, aye; Wyckoff, nay. 3 nays - 2 ayes. Amendment to the motion failed. Upon vote of the original motion: Kelzenberg, aye; Williams, aye; Ericson, aye; Nawrocki, nay; Wyckoff, aye. 4 ayes - 1 nay. Motion carried. RESOLUTION NO. 2004-55 RESOLUTION ADOPTING A MODIFICATION TO THE DOWNTOWN CENTRAL BUSINESS DISTRICT (CBD) REVITALIZATION PLAN FOR THE CBD REDEVELOPMENT PROJECT AND ESTABLISHING THE HUSET PARK AREA TAX INCREMENT FINANCING DISTRICT THEREIN AND ADOPTING A TAX INCREMENT FiNANCING PLAN THEREFOR. P. 13 City Council Minutes October 25, 2004 Page 9 of 17 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 Conmfissioners (the "Board") of the Columbia Heights Economic Development Authority- (the "EDA") has heretofore established the CBD Redevelopment Project (the "Project Area") and adopted the Downtown CBD Revitalization Plan therefor. It has been proposed by the EDA and fl~e City that the City adopt a Modification to the Downtown CBD Revitalization Plan for the Project (the "Project Plan Modification") and establish the Huset Park Area Tax Increment Financing District (the "District") therein and adopt a Tax Increment Financing Plan (the "TIF Plan") therefor (the Project Plan Modification and the TIF Plan are referred to collectively herein as the "Plans"), all pursuant to and in conformity with applicable law, including Minnesota Statutes, Sections 469.001 to 469.047, Sections 469.090 to 469.1082, and Sections 469.174 to 469.1799, all inclusive, as an~ended, (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 perforated 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 Anoka County 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 ora public heating 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 fmdh~gs and determinations made in this resolution. The Council hereby confn-ms, 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 Project, but makes specific f'mdings as further described in this resolution regarding the conditions of the area within the Project that are the boundaries of the proposed TIF District. Section 2. Findings for the Adoption of the Project Plan Modification. 2.01. The Council fmds that the portion of the Project Area encompassed by the boundaries of the TIF District constitute a "blighted area" within the meaning of Minnesota Statues, Section 469.002, Subd. 11. 2.02. The Council further fmds that acquisition, clearance, and related activities to redevelop the TIF District portion of the Project Area, all in accordance with the Project Plan and the TIF Plan, constitute a "redevelopment project" within the meaning of Minnesota Statues, Section 469.002, Subd. 14. 2.03. The Council further f'mds, declares and determines that the City made the above f'mdings stated in this Section based on the supporting facts described in Exhibit B. Section 3. Findings for the Establishment of the Huset Park Area Tax Increment Financing District. 3.01. The Council hereby finds that the District is in the public interest and is a "redevelopment district" under Mim~esota Statutes, Section 469.174, Subd 10(a)(1). 3.02. The Council further £mds 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 £mds, declares and determines that the City made the above fmdings 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 a, which means the fiscal disparities contribution would be taken from outside the District. Section 4. Public Purpose 4.01. The Council fmds that adoption of the Plans confonns in all respects to the requirements of the Act and will help fulfill a need to redevelop a portion of the Project Area that is characterized by blight, occupied by substandard buildings, and contan~inated with pollntants; and that the f'mancial assistance described in the TIF Plan will revitalize this area, significantly expand the amount and variety of housing stock in the City, and expand the tax base; and that, because these benefits would not accrue without the assistance provided, any benefits received by private redevelopers are incidental to the broader benefits ach~evea by the overall redevelopment o, the TIF District. 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 Executive Director of the EDA. 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 ,,~t present to this Council for its consideration all further plans, resolutions, documents and contracts necessary for this purpcP. 1 4 City Council Minutes October 25, 2004 Page l 0 of 17 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 Executive Director of the EDA is further authorized and directed to file a copy of the Plans with the Cmrmaissioner of the Minnesota Departlnent of Revenue pursuant to Milmesota Statutes 469.175, Subd. 4a. B) Adopt Resolution 2004-54, approving the elimination of parcels from the TIF 4 Multi Use Redevelopment Project (MURP) K2 TIF District Ruff indicated this Resolution would close the old TIF district as some parcels in the new district were in the old district. He stated that they would continue to pay taxes. Motion by Kelzenberg, second by Ericson, to waive the reading of Resolution 2004-54, there being an ample amount of copies available to the public. Upon vote: Ayes: Kelzenberg, Willim~s, Ericson, Nawrocki, Wyckoff. Motion carried. Motion by Kelzenberg, second by Ericson, to Adopt Resolution 2004-54, a Resolution Approving the Elimination of Parcels from the TIF 4 Multi Use Redevelopment Project (MURP) K2 Tax Increment Financing District within the Central Business District Redevelopment Project in the City of Columbia Heights. Upon vote: Ayes: Kelzenberg, Williams, Ericson, Nawrocki, Wyckoff. Motion carried. RESOLUTION NO. 2004-54 RESOLUTION APPROVING THE ELIMINATION OF PARCELS FROM THE TIF 4 MULTI USE REDEVELOPMENT PROJECT (MURP) K2 TAX INCREMENT FINANCING DISTRICT WITHIN THE CENTRAL BUSINESS DISTRICT REDEVELOPMENT PROJECT IN THE CITY OF COLUMBIA HEIGHTS. WHEREAS, on September 28, 1989, the City of Columbia Heights City Council (the "City) established TIF 4 Multi Use Redevelopment Project (MURP) K2 Tax Increment Financing District (the "TIF District") within its Central Business District Redevelopment Project; and WHEREAS, the Columbia Heights Economic Development Authority (the "EDA") is the administrative authority for the TIF District; and WHEREAS, the TIF District, in part, included the following parcel numbers, which were previously certified in the TIF District (the "Parcels"): 35-30-24-34-0013 35-30-24-34-0014 35-30-24-34-0040 35-30-24-43-0060 35-30-24-43-0047 35-30-24-34-0035 35-30-24-34-0039 35-30-24-34-0024 35-30-24-34-0041 35-30-24-34-0003 35-30-24-34-0004 35-30-24-34-0002 WHEREAS, the Parcels have been excluded from the original tax capacity of the TIF District pursuant to Minnesota Statues, Section 469.176, Subd. 6 (the so-called "knock-down rule"); and WHEREAS, the City desires by this resolution to cause the elimination of the Parcels from the TIF District thereby reducing the size of the TIF District; and WHEREAS, the City and EDA are authorized to modify the TIF District by eliminating one or more parcels without the notice and hearing required for approval of an initial plan if they agree that, notwvithstanding Minnesota Statutes, Section 469.177, Subd. 1, the original net tax capacity of the TIF District will be reduced by no more than the current net tax capacity of the parcels eliminated from the TIF District; and WHEREAS, while the Parcels have been "knocked down," their current net tax capacity is less than the original net tax capacity of those Parcels when originally certified. NOW THEREFORE, BE IT RESOLVED as follows: i. The tax increment fmancing plan ("TIF Plan") for the TIF District is hereby modified to remove the Parcels from the TIF District, effective for taxes payable in 2005. 2. In accordance with Minnesota Statutes, Section 469.175, Subd. 4(e)(2)(B), the City elects that the original net tax capacity of the TIF District will be reduced by no more than the current net capacity of the Parcels. 3. Upon approval of a shxfilar resolution by the EDA, staff are authorized and directed to attach a copy of this resolution to the TIF Plan for the TIF District in City files, file a copy of this resolution with the County Auditor of Anoka County along with instructions to adjust the records for the TIF Dist~t,~cordingly, and file a copy of the resolution with the Minnesota Commissioner of Revenue. · City Council Minutes October 25, 2004 Page 11 of 17 c) Adopt Resolution 2004-75, being a Resolution for Rental Housing Revocation at 1324-26 Circle Terrace Blvd. N.E. Motion by Kelzenberg, second by Williams, to waive the reading of Resolution 2004-75, there being ample copies available to the public. Upon vote: Ayes: Kelzenberg, Williams, Ericson, Nawrocki, Wyckoff. Motion carried. Motion by Kelzenberg, second by Willimns, to adopt Resolution 2004-75, Resolution of the City Council of the City of Columbia Heights approving revocation pursuant to Ordinance Code Section 5A.408(1) of the Rental License held by Edward Fragale regarding rental property at 1324-26 Circle Ten'ace Blvd. N.E. Upon vote: Ayes: Kelzenberg, Williams, Ericson, Nawrocki, Wyckoff. Motion carried. RESOLUTION 2004-75 RESOLUTION OF THE CITY COUNCIL FOR THE CITY OF COLUMBIA HEIGHTS APPROVING REVOCATION PURSUANT TO ORDINANCE CODE SECTION 5A.408(1) OF THAT CERTAIN RESIDENTIAL RENTAL LICENSE HELD BY EDWARD FRAGALE (HEREINAFTER "LICENSE HOLDER"). WHEREAS, LICENSE HOLDER IS THE LEGAL OWNER OF THE REAL PROPERTY LOCATED AT 1324-26 CIRCLE TERRACE BLVD. NE, COLUMBIA HEIGHTS, MINNESOTA, AND WHEREAS, PURSUANT TO COLUMBIA HEIGHTS CODE SECTION 5.104(1)(A), WRITTEN NOTICE SETTiNG FORTH THE CAUSES AND REASONS FOR THE PROPOSED COUNCIL ACTION CONTAINED HEREiN WAS GIVEN TO THE LICENSE HOLDER ON SEPTEMBER 8, 2004 OF A PUBLIC HEARING TO BE HELD ON OCTOBER 25, 2004. NOW, THEREFORE, iN ACCORDANCE WITH THE FOREGOiNG, AND ALL ORDiNANCES AND REGULATIONS OF THE CITY OF COLUMBIA HEIGHTS, THE CITY COUNCIL OF THE CITY OF COLUMBIA HEIGHTS MAKES THE FOLLOWING: FINDiNGS OF FACT 1. That on July 1, 2004, Matt Field, inspector for the City of Columbia Heights, inspected the property and noted two violations. Compliance orders listing the violation were mailed by regular mail to the owner at the address listed on the Rental Housing License Application. 2. That on August 12, 2004, Matt Field, inspector for the City of Columbia Heights, reinspected the property and noted two violations. Compliance orders listing the violation were mailed by regular mail to the owner at the address listed on the Rental Housing License Application. 3. That on September 8, 2004, Matt Field, inspector for the City of Columbia Heights, reinspected the property and noted one violation. Compliance orders listing the violation were mailed by regular mail to the owner at the address listed on the Rental Hous/ng License Application. 4. That on October 5, 2004, Matt Field inspected the property and noted one violation. Compliance orders and a Statement of Cause were mailed by certified mail to the owner at the address listed on the Rental Housing License Application. 5. _That based upon said records of the Enforcement Office, t_he following conditions and violations of the City's Residential Maintenance Code were found to exist, to-wit: a. FAILURE TO CORRECT VIOLATION OF THE RESIDENTIAL MAINTENANCE CODE: i. Shall cut/trinffremove all/any scrub growth from the north side of the house. b. FAILURE TO SUBMIT REINSPECTION FEES OF $500.00 6. That all parties, including the License Holder and any occupants or tenants, have been given the appropriate notice of this hearing according to the provisions of the City Code Section 5A.306(1) and 5A.303(1)(d). ORDER OF COUNCIL 1. The rental license belonging to the License Holder described herein and identified by license number F6493 is hereby revoked/suspended (cross out one); 2. The City will post for the purpose of preventing occupancy a copy of this order on the buildings covered by the license held by License Holder; 3. All tenants shall remove themselves fi'om the premises within 60 days from the first day of posting of tlfis Order revolting the license as held by Licens~ Holder. CONCLUSIONS OF COUNCIL 1. That the building located at 1324-26 Circle Terrace Blvd. N.E. is in violation of the provisions of the Columbia Heights City Code as set forth in the Compliance Order attached hereto, 2. That all relevant parties and parties in interest have been duly served notice of tkis hearing and any other hearings relevant to the revocation or suspension of the license held by Lice~p. 1 6'lder' City Council Minutes October 25, 2004 Page 12 of 17 3. That all applicable rights and periods of appeal as relating to the license holder, owner, occupant or tenant as the case may be, have expired or such rights have been exercised and completed. D) Public Hearing called for Revocation/Suspension of Rental Housing License at 1308-1310 Circle TelTace Blvd. Mayor Wyckoff closed the Public Hearing regarding the revocation or suspension of the Rental License held by Edward Fragale regarding rental property at 1308-1310 Circle Terrace Blvd in that the Property complies with the Residential Maintenance Code. Deb Bucher, 1310 Circle TetTace, questioned her rights as a tenant and indicated the landlord has maintained the other half of this duplex but will not do repairs on her portion. Gait Gonnan, Assistant Fire Chief, stated their job is to enforce the Housing Maintenance Code. A complaint inspection can be conducted and the code can be enforced. Nawrocki requested she receive a written response on the interior inspection, with City Council receiving a copy. Gorman described the smoke damage to three units at 980 44th Avenue. E) Adopt Resolution 2004-73, Resolution of the City Council of the City of Columbia Heights Declaring the Property at 4901 5th Street NE a Nuisance and Approving the Abatement of Violations Gonnan showed pictures of the property and described the process leading to the request for abatement. There is a frame for a garage that is now falling down and needs to be removed. Nawrocki questioned the status of removal for the garage damaged by fu'e at 4232 5th Street. Gonrmn stated the insurance investigation is complete and is under the building pennit process for demolition. Nawrocki questioned the transitional housing at 1004-1006 Gould and the number of persons living there. Gorman stated this is owned by the Salvation Anny, which currently houses three veterans who are allowed to live there for up to one year. Wyckoffindicated that no drugs or alcohol are allowed and the tTm~sitional housing is to integrate the veterans back into society, This is a new progrmr~ that is being observed nationwide. Nawa-ocki questioned if they have a rental license. Gonnan stated they are licensed as a duplex. He stated that a two bedroom unit could house six people. We do not license the number of people, only the nmT~ber of bedrooms. Nawrocki questioned if the egn'ess windows installed in the basement would allow more units. Gm-man stated they ...... ~ ~ ....... ~": '~: ........ : ..... wumu uav¢ to m~¢t zoning ..... : ...... ' lCtlul, tC;lll¢l, ltS and follow the umlumg pvnm[ IJtuCcSS. Wyckoff stated that there have been no police calls to this duplex. Motion by Ericson, second by Nawrocki, to waive the reading of Resolution 2004-73 there being ample copies available to the public. Upon vote: Ayes: Kelzenberg, Williams, Ericson, Nawrocki, Wyckoff. Motion carried. Motion by Ericson, second by Nawrocki, to adopt Resolution 2004-73, Resolution of the City Council of the City of Columbia Heights Declaring the Property at 4901 5th Street NE a Nuisance and Approving the Abatement of Violations fi'om the Property Pursuant to City Code Section 8.602. Upon vote: Ayes: Kelzenberg, Williams, Ericson, Nawrocld, Wyckoff. Motion carried. RESOLUTION 2004-73 RESOLUTION OF THE CITY COUNCIL FOR THE CITY OF COLUMBIA HEIGHTS APPROVING ABATEMENT OF ORDINANCE VIOLATIONS PURSUANT TO CHAPTER 8, ARTICLE VI, SECTION 1 OF CITY CODE, ORDiNANCE VIOLATIONS EXIST ON PROPERTY OWNED BY DONALD WOODS (HEREINAFTER "OWNER OF RECORD"). WHEREAS, OWNER OF RECORD IS THE LEGAL OWNEt~ c~F THE REAL PROPERTY LOCATED AT 4901 5TM STREET N.E., COLUMBIA HEIGHTS, MINNESOTA, P. 1 7 City Council Minutes October 25, 2004 Page 13 of 17 AND WHEREAS, PURSUANT TO COLUMBIA HEIGHTS CODE SECTION 8.602(1)(B), WRITTEN NOTICE SETTING FORTH THE CAUSES AND REASONS FOR THE PROPOSED COUNCIL ACTION CONTAINED HEREIN WAS SENT VIA CERTIFIED AND REGULAR MAIL TO THE OWNER OF RECORD ON OCTOBER 14, 2004. NOW, THEREFORE, IN ACCORDANCE WITH THE FOREGOING, AND ALL ORDINANCES AND REGULATIONS OF THE CITY OF COLUMBIA HEIGHTS, THE CITY COUNCiL OF THE CITY OF COLUMBIA HEIGHTS MAKES THE FOLLOWING: FINDINGS OF FACT 1. That on September 9, 2004 an inspection was conducted and tlu:ee violations were noted, one violation was of a serious safety concern and an irmnediate compliance order was sent. This order stated that the violation should be corrected immediately. A compliance order was sent by regular mail to the owner of record. 2.That on September 30, 2004 a reinspection was performed a reinspection and noted the violation was not corrected. 3. That on October 14, 2004. An abatement letter detailing the violations and notification of the abatement hearing was sent by certified mail to the owner of record. 4. That based upon said records of the Fire Department, the following conditions and violations of City Ordinance(s) were found to exist, to-wit: 1)Shall IMMEDIATELY remove the illegal structure being built on to the garage. The framing that is up is a danger and must be removed, complete all/any exterior work on the house. This work requires a building permit. (Chapter 5A, Section 5A.205(1)(a), Section 5A.205(1)(g)). 5. That all parties, including the OWNER OF RECORD and any occupants or tenants, have been given the appropriate notice of this hearing according to the provisions of the City Code Section 8.602(1)(a) and 8.602(1)(b). CONCLUSIONS OF COUNCiL 1. That the property located at 4901 5th Street is in violation of the provisions of the Columbia Heights City Code as set forth in the Notice of Abatement attached hereto; 2. That all relevant parties and parties in interest have been duly served notice of this hearing, and any other heatings relevant to the abatement of violations on the property listed above. 3. That all applicable rights and periods of appeal as relating to the owner of record, occupant, or tenant, as the case may be, have expired, or such rights have been exercised and completed. ORDER OF COUNCIL 1. The property located at 4901 5th Street constitutes a nuisance pursuant to City Code. 2. That a copy of this resolution/order shall be served upon all relevant parties and parties in interest. 3. That any motion for summary enforcement shall be served upon all relevant parties and parties in interest. 4. That all service provided for herein shall be in accordance with Minnesota Statute 483.17, subd. 2 ITEMS FOR CONSIDERATION Other Ordinances and Resolutions 1) Adopt Resolution 2004-68, being a Resolution approving a lot split of the propen'~ at 1600 41 st Avenue NE/4050 Trier Street NE Patrick Smith, City Planner, indicated that the applicants Steve Johnson and Anthony Palacino were present and have signed off on the lot split. He stated that after the lot split, all thi'ee properties would meet City requirements. The Planning and Zoning Cormuission (P&Z) held a public heating and voted to approve the lot split. Smith stated that the two houses on the property would remain, possibly with a third home to be built. This m-ea is Zoned R1 - single fmnily. Steve Johnson stated this would change 4050 Tyler Street from a non-conforming home to conforming. He stated a home would be for a long time resident that was moving back to Columbia Heights and needs a home to fit their medical needs. Motion by Ericson, second by Kelzenberg, to waive the reading of Resolution 2004-68, there being ample copies available to the public. Upon vote: Ayes: Kelzenberg, Willimns, Ericson, Nawrocki, Wyckoff. Motion carried. Motion by Ericson, second by Kelzenberg, to adopt Resolution 2004-68, a resolution approving a lot split of the property at 1600 41 st Avenue N~ ~50 Tyler Street NE, subject to the following City Council Minutes October 25, 2004 Page 14 of 17 conditions of approval that are deemed necessary to protect the public interest and ensure compliance with the provisions of the Zolzing Ordinance: 1. The applicant shall provide required utility and &ainage easements for all newly created lots and be responsible for the cost of filing and recording written easements with the Anoka County Recorder's Office. 2. The applicant shall pay a parkland dedication fee in the mnount of $3,667 for the one newly created lot. This fee is payable at the time of building permit application. 3. The property owner of 1600 41 st Avenue NE shall be responsible for relocating the water line that cm-rently runs from the rear of the house to the alley. The line shall be rerouted out to 41st Avenue. The property owner shall be responsible for the cost of this relocation. All applicable City requirements regarding street excavation shall be met. 4. Upon approval of a minor subdivision, the applicant shall be responsible for filing the subdivision survey with the Anoka County Recorder's Office. The minor subdivision shall become invalid if not filed with the Anoka County Recorder within one (1) year of the date of the City Council action. Upon vote: Ayes: Kelzenberg, Williams, Ericson, Nawrocki, Wyckoff. Motion carried. RESOLUTION NO. 2004-68 SUBDIVISION REQUEST I, Steven Johnson, and I, Anthony Palacino, hereby request a split of PIN 36-30-24-31-0007 Legally described as: Lot 2, Block 21, Auditor's Subdivision ofWalton's 2nd Subdivision, Anoka County, Minnesota. PIN 36-30-24-31-0006 Legally described as: Lot 1, Block 21, Auditor's Subdivision of Walton's 2"d Subdivision, Anoka County, Minnesota. THE DESCRIPTIONS HENCEFORTH TO BE: Northeasterly Parcel: The East 87 feet of at part of Lot 4, Block 17, Auditor's Subdivision ofWalton's 2nd Subdivision, Anoka County, Minnesota. Southerly Parcel: Lot 2, Block 21, Auditor's Subdivision of Walton's 2nd Subdivision, gn~oka County, Mhmesota, except that part of the North 13 feet thereof which lies west of the East 87 feet thereof. Northwesterly Parcel: Tlaat part of Lot !, Block 2 !, Auditor's Subdivision of Walton's 2nd Subdivision, _~noka CounW, Minnesota, which lies west of the East 87 feet thereof and that part of the North 13 feet of Lot 2 in said Block 21, which lies west of the East 87 feet thereof. Be it further resolved that special assessments of record in the office of the City of Columbia Heights as of this day, against the above described property, are paid. Any pending or future assessments will be levied according to the new split as approved this day. Any lot split given approval shall become invalid if the resolution, motion or other Council action approving the said lot split is not filed with the County Recorder within one (1) year of the date of the Council action. Bid Considerations 2) Adopt Resolution 2004-74, being a Resolution 'accepting the bid for building demolition and excavation of contaminated soil in the industrial Park (Phase i), Columbia Heights, IviN. Schumacher stated that the City has received $1,233,000 in gu'ants for clean up in the industrial area Phase I, and has a development agu'eement with Schafer/Richardson to go ahead with the expenditure of these dollars. ProSource Enviromuental Engineering prepared and took the bids, which were opened on October 19. Five bids were received. Schumacher requested Council adoption of this Resolution approving demolition and excavation of contmnination in Phase I of the industrial area by J. M. Frattalone Company. He stated asbestp. 19m°val and demolition would begin in November. City Council Minutes October 25, 2004 Page 15 of 17 Schumacher indicated that the bids Came in lower than the Engineer's estimate, therefore we will have a surplus of funds, which will be used on future cleanup phases. Motion by Kelzenberg, second by Williams, to waive the reading of Resolution 2004-74, there being ample copies available to the public. Upon vote: Ayes: Kelzenberg, Williams, Ericson, Nawrocki, Wyckoff. Motion carried. Motion by Kelzenberg, second by Williams, to adopt Resolution 2004-74, being a Resolution accepting the bid for building demolition and excavation of contmriinated soil in the Industrial Park (Phase 1), Columbia Heights, MN. Upon vote: Ayes: Kelzenberg, Willimns, Ericson, Nawrocki, Wyckoff. Motion carried. RESOLUTION 2004-74 RESOLUTION ACCEPTING BID FOR BUILDING DEMOLITION AND EXCAVATION OF CONTAMINATED SOIL IN THE INDUSTRIAL PARK (PHASE I), COLUMBIA HEIGHTS, MN WHEREAS, pursuant to an advertisement for bids for the demolition of buildings at 3801 5th Street, 510 39th Street (Rayco Corp) and 550 & 600 39~' Avenue (Honeywell) and Excavation of Contaminated Soil identified in Phase I of the Industrial Park Redevelopment Plan; bids were received, opened and tabulated according to law, and the following bids were received complying with the advertisement: (See attached bid spread sheet) AND WHEREAS, it appears that J.M. Frattalone Company is the lowest responsible bidder, NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF COLUMBIA HEIGHTS, MINNESOTA: 1. The mayor and clerk are hereby authorized and directed to enter into the attached contract with J.M. Frattalone Company in the bid amount of $694,662 for the building demolition and excavation of contaminated soil in the Industrial Park Phase I area according to the plans and specifications as outline in the bid request dated October 13, 2004 and on file in the office of Conununity Development. 2. The City staff is hereby authorized and directed to return forthwith to all bidders the deposits made with their bids, except that the deposits of the successful bidder and the next lowest bidder shall be retained until a contract has been signed. Other Business Nawrocki requested input in the City newsletter regarding the budget, as he felt it was not totally accurate. He spoke of the history of tax increases and referred to the motion, which failed, to keep the levy at six percent. He referred to reduction in services and using fund balances to tide us over. The newsletter should indicate there are several vacancies on Boards and Cormuissions. Residents are encouraged to apply, as next spring many cun'ent terms will expire. Fehst indicated the history of loss of State Aid. In our operating budget of $8 million, we lost $2.5 million. Our Goals and Objectives are to look at possible savings and revenue sources. Williams indicated fl~at the article was not accurate, as the City Manager asked for a "hold the line" budget and it was the Mayor who asked to include cost of living increases. Williams stated that there are more creative ways to be more efficient. Fehst stated that the budget is a planning document that we continue to lay and make more efficient. He requested that Council tell staff what we are doing that does not need to be done. Williams stated that we are not going to reduce Police personnel and every division had suggested ways to increase revenue. Fehst indicated that most of the Police budget is for personnel. Fehst stated that staff would look at revising the newsletter article. Wyckoff stated that we are only asking back what we lost in State Aid, with a 3.5 percent increase in the budget. Nawrocki pointed out information fi-om the green sheet, which indicated that the Fke Department is saving funds by conducting their physical tests in their building instead of renting space in Minneapolis, and cmmnended them. P. 20 City Council Minutes October 25, 2004 Page 16 of 17 ADMINISTRATIVE REPORTS Report of the City Manager Fehst thanked the City Council for allowing him to attending the National Managers Conference in San Diego. He stated that he stayed a one~half mile trolley ride away for $8 a night, instead of at the conference site for $250 a night. Fehst stated it was a very invigorating and inspiring conference, addressing items like diversity. Report of the City Attorney - none CITIZENS FORUM Wyckoff stated that all commems should be issues, and should not address individual candidates. A Candidates Forum will be held on October 26, begimfing at 7:00 p.m. in the City Council Chan~bers. Lee Stauch, 1155 Khyber Lane, questioned what fund the purchase of Burger King came from. Fehst stated that the EDA bon'owed funds from the City, which would be paid back. Wyckoff listed the cost per square foot of Burger King at $16.90, Hardies at $22.31, Chutney's Indian Grill at $37.80, and Mr. Steak, which is for sale, at $21.70. Stauch questioned plans for the rest of the area and the cost. Fehst stated we would pay the going rate, as this is one of three major areas designated by City Council as a major redevelopment area. Stauch stated that those who contatninated the soil in the industrial area should be required to clean it up. Fehst indicated that they are deceased. Wyckoff stated that we must protect our senior's property values and we can do so by increasing property development. Wyckoffindicated that the Heights Theater owner is considering a development proposal for the Burger ICing area, which would include theaters and a restaurant. Lan-y Beaman, 3846 Tyler, stated he is having trouble with City Police coming into his yard and making false Police reports. Beaman referred to a computer broken by Police, his neighbor's fence facing the wrong direction, and disagreement with his property tax atnount. Wyckoff stated that the County does the property appraisals. Joyce Myer, Jackson Street, stated that the City of Egan, population 36,000, has the same number of com~cil members as we do, but is considering going to a seven member council. She felt we have too much govermnent. Hat'old Hoium, 5th Street, indicated the ordinance discussion he requested was not addressed. Aurora Johnson, 3977 Polk Street, disagreed with the use of fund balances to offset budget increases, as they were set up for emergencies. She stated that rental properties should be charged for inspections. Johnson also stated that City Staff does a good job, and that a lot of properties in the City are going stagnant, and we need to do something different to keep our City going. Nawrocki listed some statistics and stated that fund balances have been increasing. Fehst stated that we could get Ms. Johnson information on fund balances and their restrictions. COUNCIL CORNER Nawrocki Monthly financial statements at'e incorrect because of purchases made without purchase orders. Any item of consequence should not be allowed without a purchase order. Cable televised Mayor's Report has contained personal feelings. Not the proper use of a City sponsored program. The City has printed fl:p. 21f°r the Mayor's program and NEI open house. City Council Minutes October 25, 2004 Page 17 of 17 Things should be kept professional. Ericson o Candidate Forum tomorrow evening will be televised on cable. Encouraged attendance or viewing, and voting in the upcoming election. ~ · Participants in the Make a Difference program should fo~wvard their information to JoAnne Strident, as Rising to New Heights will highlight projects at a furore City Council lneeting. Three dozen City employees donated over 50 birthday bags to SACCA. · Values First value for the month of October is non-violence. · Do what we can to promote peace. Wyckoff In 1977 Council adopted informatioa whereby the audience would not be allowed to make personal attacks. Two weeks ago this happened and she received no support. Attended a conference with the Cormriunity Development Director regarding other cities. Columbia Heights will host the Local Government Officials meeting for Anoka County at Murzyn Hall, spotlighting the City of Columbia Heights. The same presentation scheduled for the elected officials will be given at the Wednesday with the Mayor program at the Library. Encouraged the public to attend the Candidates Debate tomon'ow and to vote next week. On Thursday night, Pastor Dan Thompson, Assembly of God Church, will conduct a Crossroads Conversations at 7:00 p.m. There are openings on the Library Board and Human Services Colmrfission. Both co~runissions meet once a month. Nawrocki stated there is a vacancy on the Police and Fire Civil Service Commission. Williams Agreed with Ms. Johnson that those causing problems should pay the price. Agreed that the City paid too much for the Burger King property. Agreed with the green sheet, that trashy houses can attract trashy people. Pleased we are clamping down on this. -- Does not always retract everything said about h/an. o November values are Caring, Compassion, and Kindness. Pray for the peace of our citizens. Kelzenberg Went on a Police ~,~e-,~lo,,a. Was the first to a-rive at am,, ,~,,~uy ,~, Police blocked offthe area. Our Police Officers earn their money. Hope everyone respects them. ADJOURNMENT Mayor Wyckoff adjourned the lneeting at 11:05 p.m. Patricia Muscovitz, CMC Deputy City Clerk/Council Secretary P. 22 OFFICIAL PROCEEDINGS CITY OF COLUMBIA HEIGHTS CITY COUNCIL MEETING NOVEMBER 8, 2004 The following are the minutes for the regular meeting of the City Council held at 7:00 p.m. on Monday, November 8, 2004 in the City Council Chmubers, City Hall, 590 40th Avenue N.E., Columbia Heights, MN. Pastor Dave Briley, Oak Hill Baptist Chm'ch, gave the Invocation. CALL TO ORDER/ROLL CALL Mayor Wyckoff called the meeting to order at 7:00 p.m. Present: Mayor Wyckoff, Councilmelnber Willim2s, Councilmember Nawrocki, Councilmelnber Ericson, Councihnember Kelzenberg PLEDGE OF ALLEGIANCE - Recited ADDITIONS/DELETIONS TO MEETING AGENDA Nawa'ocld indicated the additions and deletions to the agenda require a majority vote, which is not consistently done. The Council should also approve the agenda. PROCLAMATIONS~ PRESENTATIONS, RECOGNITIONS AND GUESTS ProclamatiOns Bm'b Warren, Values First Coordinator, read the Proclmnation recognizing November as Values First Month. Warren unveiled a new logo mhd a new bamler, which includes the definition of each value, and indicated there would also soon be a new poster and a published newsletter. She referred to information the Council received on the Cormnunity Collaborative Survey. Wyckoff spoke of two initiatives at the Columbia Heights High School. Warren stated Values First is ma initiative - a philosophy. She referred to the Empty Bowls project, essay contest, sportsmanship award, colmaaunity recognition awards, and assets development conunittee, which entailed bringing organizations together to put on these programs. Warren stated they face a challenge obtaining grants because they m'e not a 501C3 gn'oup. Fehst stated that Ms. Warren has been invited to the November 29th work session. Presentations Jerry Kyser, President of the Mimaesota State Cormcil, Vietnam Veterans of America, Inc. stated that on November 10th the National Gum'd mhd Vietnam Veterans will celebrate the retirement of the UH-Ifrom the Air Force in conjunction with the movie "In the Shadow of the Blade". Jolm Walsh, President of the St. Paul Chapter, stated they are sponsoring this fundraiser. Kyser spoke about the movie, which will be shown at the Heights Theater, along with a helicopter on site. Walsh stated that frauds raised go to a scholarship fund for Vietnam Vets m~d their fmuilies, a literacy project in Laos, and donation of funds to the homeless. All funds are donated; there are no administrative costs. Nawrocki stated that tickets would be available at the door. Kyser thanked the Heights Theater for their cooperation. CONSENT AGENDA Walt Fehst, City Manager, took the City Councilmembers t!~'ough the Consent Agenda. 1) Approve City Council Meeting Minutes for the November 3, City Council Election Canvass meeting Motion to approve the minutes of the November 3, 2004 City Council Election Canvass meeting as presented. Nawrocki questioned why the October 2ffh Council minutes were not included. Wyckoff stated they were not complete, as staff was working on t~o election. P. 23 City Council Minutes November 8, 2004 Page 2 of 8 2) Accept Boards mad Cmmnissions Meeting Minutes a) Motion to accept the October 18, 2004 minutes of the Library Board b) Motion to accept the October 21, 2004 minutes of the Teleconm~unications Colm=ission c) Motion to accept the November 3, 2004 minutes of the Plmming and Zoning Cmrunission d) Motion to accept the October 21, 2004 Charter Co~rm~ission Minutes Nm4~rocki stated the Library Board minutes should state it 14;as a joint meeting with the CiO~ Council. 3) Approve the Conditional Use Permit for Rudolph's Trees to allow for seasonal agricultural sales at 4300 Central Avenue NE Motion to approve the Conditional Use Permit for Rudolph's Trees to allow for seasonal agricultural sales at 4300 Central Avenue NE as the use is consistent with the General Business District, and meets the required performance standards and required finds, subject to the following condition: 1. The outdoor storage shall be located as indicated on the site plan. 2. A $500 deposit shall be submitted to the Community Development Department prior to display of Cb~a'istmas trees. The deposit shall be refunded after the Conditional Use Permit expires and the site has been cleaned up. Nawrocki stated that to better utilize time, something as simple as this permit should not require such detail 4) Approve Business License Applications Motion to approve the items as listed on the business license agenda for November 8, 2004, as presented. 5) Approve Payment of Bills Motion to approve payment of the bills out of the proper ftmds as listed in the attached check register covering Check Number 110411 tlTa-ough 110577 in the amormt of $941,099.65. Motion by Nawrocld, second by Williams, to approve the Consent Agenda itelns as presented. Upon vote: Ayes: Wyckoff, Williams, Nawrocki, Ericson, Kelzenberg. Motion carried. r Unn~t. rtEa~ttNt,~ Public Hearing called for RevocatioffSuspension of Rental Housing License at 1635 49th Avenue N.E. Gary Gorman, Assistmat Fire Chief, stated this propm~y has previously been on the agenda with 43 violation begim~ing last May. The last inspection found 16 violations remaining. The owner had indicated his intent to sell the property mad evict the tenants, so the hearing was detained. Today he produced a quick claim deed showing the sale to his son, but staff recommended going forward with the revocation in case this action also falls through. The tenants have been given a 60 day notice. Ericson stated she heard that the tenants are relatives of the owaaer mad are expecting their 11th child. Erbob Abdi, tenant, stated he has lived in the home for 19 lnonths and that the owner has cheated him as he has been paying the mortgage and was told he could purchase the property. Abde indicated he had a signed pm'chase agreement and has now beech_ told to leave the property. He stated that he has paid the homeowners insm'ance and has maintained the home. Wyckoff asked if there are may safety problems in the home. Gorman stated there is a lot of minor repair work needed inside the home, which does not meet om' standards. Wyckoff stated that the sale of property is between private parties. Jim Hoer1, CiW Attorney, recommended to go ahead with the license P. 24 City Council Minutes November 8, 2004 Page 3 of 8 revocation and within the 60 days this situation lnay be resolved. He suggested the Fire Department update Council before the 60 days are over. Williams questioned if can we require the home be brought up to code before sale. Hoeft stated that the home must be brought up to code by someone. Gorman stated if sold to someone who would own/occupy the home, we would have no right to go inside. Nawrocki asked the number of people in the house. Abdi stated there are 12 people in a four-bedroom home. Gonnan explained habitable rooms. Nawrocki questioned the nmnber of vehicles on the property. Abdi explained the munber of vehicles. Motion by Nawrocki, second by Williams, to waive the reading of Resolution 2004-77, there being ample copies available to the public. Ericson asked if the landlord owns multiple buildings, and whether these violations affect the other properties. Hoeft stated they do not. Williams questioned if the fees go unpaid, are they assessed against the property. Hoeft stated the fees are $1,100. This was explained to the tenant. Upon vote: Ayes: Wyckoff, Williams, Nawrocki, Ericson, Kelzenberg. Motion carried. Motion by Nawrocki, second by Williams, to adopt Resolution No. 2004-77, Resolution of the City Cotmcil of the City of Columbia Heights Approving Revocation Pursuant to Ordinance Code Section 5A.408(1) of the Rental License held by Abdullalfi Elmi regarding rental property at 1635 49th Avenue N.E. Ericson asked that the Fire Department come back with any ilff'ormation on this property within 60 days. Upon vote · Ayes: Wyckoff, Willialns, Nawrocki, Ericson, Kelzenberg. Motion carried. Ericson asked the tenant if he obtained help with the purchase agreement and suggested he pm'chase another home. Wyckoff suggested he be put in touch with GMAC. RESOLUTION 2004-77 Resolution of the City Council for the City of Columbia Heights approving revocation pursuant to ordinance code section 5a.408(1) of that certain residential rental license held by Abdullahi Ehni (hereinafter "license holder"). Whereas, license holder is the legal owner of the real property located at 1635 49a~ Avenue N.E., Columbia Heights, Minnesota, And whereas, pursuant to Columbia Heights code section 5.104(1)(a), written notice setting forth the causes and reasons for the proposed Council action contained herein was given to the license holder on October 7, 2004 of a public hearing to be held on November 8, 2004. Now, therefore, in accordance with the foregoing, and all ordinances and regulations of the City of Columbia Heights, the City Council of the City of Columbia Heights makes the following: FINDINGS OF FACT 1. That on May 20, 2004, inspectors for the City of Columbia Heights, inspected the property and noted forty-three violations. Compliance orders listing the violations were mailed by regular mail to the owner at the address listed on the Rental Housing License Application. 2. That on June 1, 2004, inspectors for the City of Columbia Heights reinspected the immediate hazard violations and noted that the tln'ee initial violations remained uncorrected. 3. That on July 1, 2004, inspectors for the City of Columbia Heights, reinspected the property and noted thirty-nine violations remained uncm~ected. Compliance orders listing the violations were mailed by regular mail to the owner at the address listed on the Rental Housing License Application. 4. That on July 26, 2004, inspectors for the City of Colu~.'~sHeights, attempted to reinspect the property, inspectors and the City Council Minutes November 8, 2004 Page 4 of 8 office were notified that the property had been sold to the tenants, as so, m~ exterior inspection was performed only. Inspectors noted that all the exterior violations remained uncorrected. Compliance orders listing the violations were mailed by regular mail to the owner at the address listed on the Rental Housing License Application. 5. That on August 12, 2004, inspectors for the City of Columbia Heights were notified that the property was still owned by Abdullahi Elmi. Inspectors reinspected the prope~V and noted thh-ty-tkree violations remained uncorrected. A City Council license revocation hearing was scheduled and a notice of such was sent along with compliance orders listing the violations were mailed by regulm' mail to the owner at the address listed on the Rental Housing License Application. 6. That on September 8, 2004, inspectors for the City of Columbia Heights reinspected the property and noted that twenty- two violations remained uncorrected. Inspectors had been notified that the tenants would be evicted by September 30, 2004 and that the prope~Xy would no longer be occupied and sold. The City Council hearing was closed. Compliance orders listing the violations were mailed by regular mail to the owner at the address listed on the Rental Housing License Application. 7. That on October 5, 2004, inspectors for the City of Columbia Heights reinspected the property and noted that twentv-one violations remained uncorrected. The prope~, was still occupied and a new license revocation hearing was setup. Compliance orders listing the violations were mailed by regular mail to the owner at the adch'ess listed on the Rental Housing License Application. 8. That on October 26, 2004, inspectors for the City of Columbia Heights reinspected the prope~W, and noted that sixteen violations remained uncorrected. Compliance orders listing the violations were mailed by certified mail to the owner at the address listed on the Rental Housing License Application. That based upon said records of the Enforcement Officer, the following conditions m~d violations of the City's Residential Maintenance Code were found to exist, to-wit: A. FAILURE TO CORRECT VIOLATION OF THE RESIDENTIAL MAINTENANCE CODE B. FAILURE TO SUBMIT REINSPECTION FEES OF $1,100.00 9. That all parties, including the License Holder and any occupants or tenants, have been given the appropriate notice of this hearing according to the provisions of the City Code Section 5A.306(1) and 5A.303(1)(d). CONCLUSIONS OF COUNCIL 1. That the building located at 1635 49th Avenue NE is in violation of the provisions of the Colmnbia Heights City Code as set forth in the Compliance Order attached hereto, 2. That all relevant parties and parties in interest have been duly served notice of this hearing, and any other hearings relevant to the revocation or suspension of the license held by License Holder. 3. That all applicable rights and periods of appeal as relating to the license holder, owner, occupant, or tenant, as the case may be, have expired, or such rights have been exercised and completed. ORDER OF COUNCIL 1. The rental license belonging to the License Holder described herein and identified by license number F6441A is hereby revoked/suspended (cross out one); 2. The City will post for the purpose of preventing occupancy a copy of this order on the buildings covered by the license held by License Holder; 3. All tenants shall remove themselves from the premises within 60 days from the fu'st day of posting of this Order revoking the license as held by License Holder. B) Adopt Resolution Declaring Property at 3730 Tyler Street N.E. a Nuism~ce and Approving the Abatement of Violations Gorman stated that this property was already abated once this smmr~er and the yard is now filled again. He stated that the prior abatement material of four 20-yard dumpsters was disposed of in October. Williams questioned if the owner has paid the fees. Gormm~ stated that he as not been sent the final bill. Hoeft stated that if the owner does not pay the costs, assessment would come before Council. Hoeft indicated this abatement is not as time sensitive, as combustible materials have been removed, and recolr~r~ended issuing a lettering indicating the nuisance m~d time allotment for removal. Williams asked if the property were sold, would we still receive payment. Hoefr stated that any realtor would be required to disclose the issue. Motion by Nawrocki, second by Willimr~s, to waive the reading of Resolution No. 2004-78, there being P. 26 City Council Minutes November 8, 2004 Page 5 of 8 ample copies available to the public. Upon vote: Ayes: Wyckoff, Willimns, Nawrocki, Ericson, Kelzenberg. Motion carried. Motion by Nawrocki, second by Williams, to adopt Resolution No. 2004-78, Resolution o£the City Council of the City of Columbia Heights Declm'ing the Property at 3730 Tyler Street N.E. a Nuism~ce and Approving the Abatement of Violations from the Property Pursum~t to City Code Section 8.602. Kelzenberg questioned if we charge for our time. Gorman stated that persom~el time and storage are being chm'ged. Upon vote: Ayes: Wycko£f, Willian~s, Nawrocki, Ericson, Kelzenberg. Motion carried. RESOLUTION 2004-78 Resolution of the City Council for the City of Columbia Heights approving abatement of ordinance violations pursuant to chapter 8, article vi, section 1 of city code, ordinance violations exist on property owned by Anthony Griffith (hereinafter "owner of record"). Whereas, owner of record is the legal owner of the real property located at 3730 Tyler Street, Columbia Heights, Minnesota, And whereas, pursuant to Columbia Heights code section 8.602(1)(b), written notice setting forth the causes and reasons for the proposed Council action contained herein was sent via certified and regular mail to the owner of record on November 3, 2004. Now, therefore, in accordance with the foregoing, and all ordinances and regulations of the City of Columbia Heights, the City Council of the city of Columbia Heights makes the following: FINDINGS OF FACT 1. That on September 13, 2004 an inspection was conducted and one violation was noted. A letter detailing the abate~nent procedure and a copy of applicable ordinance sections was sent by regular mail to the owner of record. 2. That on October 29, 2004, the Assistant Fire Chief reinspected the property and noted that the violations remained uncon'ected. A notice of abatement and public hearing was mailed to the owner of record by certified mail on November 3, 2004. 3. That based upon said records of the Fire Depm-trnent, the following conditions and violations of City Ordinance(s) were found to exist, to-wit: A. FAILURE TO CORRECT RMC VIOLATIONS - REMOVE ALL/ANY OUTSIDE STORAGE FROM THE PROPERTY. 4. That all parties, including the OWNER OF RF. CO_R_D and any occupants or tenants, have been given the appropriate notice of this hearing according to the provisions of the City Code Section 8.602(1)(a) m,,d 8.602(1)(b). CONCLUSIONS OF COUNCIL 1. That the property located at 3730 Tyler Street is in violation of the provisions of the Columbia Heights City Code as set forth in the Notice of Abatement attached hereto; 2. That all relevant parties and pm-ties in interest have been duly served notice of this hem'ing, and any other hearings relevant to the abatement of violations on the property listed above. 3. That all applicable rights m~d periods of appeal as relating to the owner of record, occupant, or tenant, as the case may be, have exph'ed, or such rights have been exercised and completed. ORDER OF COUNCIL 1. The property located at 3730 Tyler Street constitutes a nuisance pursuant to City Code. 2. That a copy of this resolution/order shall be served upon all relevant parties and pm-ties in interest. 3. That any motion for summary enforcement shall be served upon all relevant parties and parties in interest. That all service provided for herein shall be in accordance with Mim~esota Statute 483.17, subd. 2 Gorman indicated that the property owner has resolved the abatement at 4152 Cleveland. Through the Contract for Deed, the owner is getting the prot~,~,~back. City Council Minutes November 8, 2004 Page 6 of 8 Wyckoff questioned if the tenam at 1310 Circle Ten'ace has set an inspection. Gorman indicated that she has not returned the necessary correspondence. Nawrocki questioned if the Salvation Aa'my transitional housing at 1004-1006 Gould has a rental license. Gormm~ stated they have a duplex license; occupancy rate is based on habitable rooms. Nawrocki questioned what trm~sition housing includes. Gorman stated it is for veterans re-entrance into society, limited to one year. Gormm~ indicated that the Salvation Army has done a nice job as lm~dlords mhd building usage does not affect the rental license. ITEMS FOR CONSIDERATION Other Business 1) Approval of a Development Comract for the Amended Final Plat of Grand Central Lofts and Approval of the Amended Final Plat of Grand Central Lofts Ellen Berkelhmner, City Platmer, indicated that the developer has requested to add one townhome unit to the pm~tial plat approval given last August. She stated that additional park dedication fees would be required when the building permit is issued. The Planning Connnission has recommended approval with the stone conditions as the original plat. Nawrocki questioned where the sidewalk would go. Berkelhamer stated fi'Oln Fillmore to Central Avenue, following engineering requirements, with the portion by Arby's included when that area is developed. Nawa'ocki stated that Park Dedication fees could be used toward the park budget. Hoeft stated this has historically been used toward added stress to the park system, rather than toward the budget. Nav, a'ocld questioned who would maintain the tiered retaining wall. Bruce Nedegaard, developer, indicated that the homeowner's association would maintain it. Nawrocki questioned the height of the tiers and the washout at the top. Nedegaard indicated the heights and that they have all been designed by registered engine.ers, and the washout would be repaired. Wyckoff questioned the cost of restoration items. Nedegaard indicated that is a letter of credit for $i .2 million. Hoeft stated these are estimated. Nawa-ocld questioned prope~qry dedicated to the County. Berkelhamer stated that the developer must now dedicate 27 feet. This does not apply to the property he does not control. Nawrocki questioned the number of units to be built mid the TIF requirement. Berkeihamer stated 23 i units. Nedegaard stated $700,000 in TiF. Nawrocki indicated this is about $3,000 per unit compared to $21,000 per unit in the industrial area. Nedegaard stated that the commercial area would require more TIF. Fehst pointed out soil correction problems in the industrial area. Wyckoff questioned the Savers property. Nedegaard indicated purchase is being discussed and Arby's would be demolished within the next two weeks. Wyckoff questioned interest in the units. Nedegaard stated that 25 percent are sold in the first building and there is a list of 62 people interested in the condos. Williams stated that Nedegaard is doing a wonderful thing for the City. Nawrocld pointed out that Nedegaard is also paying for the utility work and the street work. Motion by Ericson, second by Williams, to approve the Development Contract for the Plat of Grand Central Lofts. Upon vote: Ayes: Wyckoff, Williams, Nawrocki, Ericson, Kelzenberg. Motion carried. P. 28 City Council Minutes November 8, 2004 Page 7 of 8 Motion by Ericson, second by Willian~s, to approve the Amended Final Plat of Subdivision subject to the following conditions of approval that have been found to be necessary to protect the public interest and ensure compliance with the provisions of the Zoning and Development Ordinance, including: 1. Upon approval of a final plat, the applicant shall be responsible for filing and recording the final plat with the Anoka County Recorder's Office within one year of the date of City Council action. In the event that a final plat is not recorded within this time period, the final plat will become void. 2. The Developer must dedicate 27 ft. of right of way to Anoka County along the 49th Avenue access. 3. The Developer must install a sidewalk along the 47th Avenue right-of-way lkom the west boundary of the property east toward Fillmore, and include a sidewalk link to Central Avenue as part of the development of the co~ma~ercial parcel, Outlot C. 4. The Developer must make a park dedication contribution in the amount of $173,250 ($750 per unit for 231 units) prior to building permit issuance, in accordance with the Development Agreement. 5. The Homeowners Association covenants will be submitted in a form acceptable to the City Attorney, in accordance with the Development Agreement. 6. If the proposed retaining wall exceeds four feet in height, the final plans should include a wall design by a registered engineer. 7. The Development shall provide the City of Columbia Heights with as-built drawings of all newly constructed utilities, in both hardcopy and elect~'onic (.dwg) format. 8. The City's requirement for intersection clear zone, or a 30-foot triangle must be maintained at the public road access on 49th and 47th Avenues, including the landscape and signage plan. 9. A copy of Anoka County's acceptance of the right tm'n lane construction and lane restriping on 49th Avenue must be provided to the Cig, Engineer. Upon vote: Ayes: Wyckoff, Williams, Nawrocki, Ericson, Kelzenberg. Motion carried. ADMINISTRATIVE REPORTS Report of the City Manager Nawroclci questioned the car lot on 51st Avenue. Fehst stated that we were ~rfisi~ormed, as the conditional use permit allows only half of the vehicles present. Staff will schedule a meeting with the owner. Wyckoff stated that the Boards and Conm~issions appreciation dimmer would be held on December 8, 2004. Report of the City Attorney - none CiTiZENS FORUM Mrs. Helen Kersh, 1440 Circle Terrace, thanked everyone Ibr their work on the Council. She presented balloons to the winning candidates present. Nawrocki stated that Columbia Heights had a very impressive 97 percent tm'nout of register voters. Deb Jol2~son, 4626 Pierce Street, indicated some voters were not well informed and that grandstanding at the last Council meeting was shm~aeful. COUNCIL CORNER Nawrocki · 97 percent of registered voters voted in Columbia Heights, 60 percent nationwide, and 70 percent state wide. ° Requested more budget sessions, with less fancy presentations and more detail. · Requested current over/under budget status for this year. There should be carryover money to help reduce taxes. ° Requested montl~ly update on costs for the industrial park. P. 29 City Council Minutes November 8, 2004 Page 8 of 8 Questioned increased cost of leaf disposal, and if the County does not take the City's leaves, whose leaves do they take. Fehst will obtain fi.n'ther information. Ericson · There will be an opening on the Planning m~d Zoning Commission. Applications are accepted at City Hall. Williams ° Has tickets available for the Vietnam Veterm~s fundraiser at his store. Corporal Okerstrom is revitalizing our neighborhood watch program. Fehst stated that more officers would be necessary to facilitate these meetings. ° Questioned if there is m~ ordinat~ce against someone bringing in garbage fi'om other communities and dumping it here. Fehst stated that if we observe this, staff would notify them and make sure it stops. The voting process is humbling. We have four more years to make a difference. Values for November are caring, compassion m~d kindness. ° Surprised that the school referendmn failed. Citizen's budgets are tight. Fehst stated that JoA~m Student indicated there were 1,400 ballots without a vote for this item. Had that number voted, the referendum could have passed. The District has one more chm~ce to put this to a vote next year, and after that would have to seek more cuts. Ericson stated that more voted yes, but the blank votes counted as a no - so the referendmn failed. · Continue to pray for the health m~d peace of om' citizens. Kelzenberg Thanked Deputy City Clerl4Council Secretary Patty Muscovitz for the good job she did on the election. There is a new machine at the Post Office, whereby people can mail packages using credit cards, etc. Williat~s indicated that the Peterson Holiday l~ckoff Patty would be held on November 27th at Mm'zyn Hall. W¥ckoff Also thm~ked Pa~"v~~ Muscovitz for her work on the election. indicated she will still be active in 'the community. Wishes to get more people involved. Attend budget meetings. Has learned that one position to be reduced or cut would be Jean Kuelm, Recycling Coordinator, which would hurt our City se~wices. Nawrocki stated he did a Police ride-along on Friday and discussed the Crime Watch program with Corporal Okerstom at~d his colmnitment to revitalize the program. We have approximately 120 to 130 neighborhood groups. Nawrocld colmnended his efforts. He stated he was impressed that two reserve officers and a CSO were available to handle the less tense situations, like dog complaints. ADJOUPdNMENT Mayor Wyckoff adjourned the meeting at 8:45 p.m. Patricia Muscovitz, CMC Deputy City Clerl4Council Secretary P. 30 COLUMBIA HEIGHTS PUBLIC LIBRARY BOARD OF TRUSTEES MINUTES November 1, 2004 The meeting was called to order by Chair, Barbara Miller, at 7:00 p.m. Those members present were Barbara Miller, Nancy Hoium, Patricia Sowada, Audrey Hyatt, Catherine Vesley, and Becky Loader. Council Liaison, Julienne Wyckoff was unable to attend due to budget meetings of the City Council with other City departments. It was moved, seconded, and passed to approve the minutes of the October 5, 2004, Board meeting as mailed. Joint Library Board/City Council budget meeting minutes were reviewed. Bill list dated 10/25/04 was reviewed. It was moved, seconded, and passed that they be paid. Bill list dated 11/8/04 was reviewed. It was moved, seconded, and passed that they also be paid. The accounting was reviewed. Old Business: 1. This is the final meeting for Audrey Hyatt. Everyone extended their good wishes. Audrey in mm told the Board how much she enjoyed her year. She also thanked the Board for the opportunity to serve and for the learning experience it provided. a. Update on recruitment to fill Board vacancy. Several names were discussed; these people will be encouraged to submit their applications to the City Council. ACL/COH network update: a. The Evaluation Committee met and alter reviewing all of the information provided from the vendor demonstrations concluded that SIRSI will be the vendor of choice. The next step is the negotiation of a contract. b. The Automation Committee will hold their final wrap-up meeting this week and then disband. An implementation committee will have to be chosen. o Proposed 2005 budget update: The Council has made no decisions at this time. a. Capital Funds and allocations were discussed. b. Public heating on the proposed City budget will take place on December 6, at 7:00 p.m. Division Heads will be attending the heating and strategies for handling questions have been discussed. 1 P. 31 New Business: 1. Crossover statistics were reviewed. 2. Thmtk you letter to the Sister City for their donation of the book Illustrated history of Poland was reviewed. 3. A volunteer appreciation dinner will be held on December 8, at 6:30 p.m. the Board will be receiving invitations in the mail. 4. Library Page, Peter Hastings, has submitted his resignation effective 10/23/04. Becky will be talking to Linda Magee, Assistant City Manger, about the possibility of filling this position. 5. An article in the St. Paul Pioneer Press announcing an American Girl Tea Party to be held at the Anoka County Historical Society was reviewed and discussed. 6. An article from the Showeview-Arden Hills Bullletin regarding Ramsey County Library and how the Internet has changed what libraries are about was shared with the Board. 7. Friend of the Libratad member, Rita Norberg, attended the estate sale at Irene Parson's home and purchased a packet of "notes" and the author's copy of the book Bootstrap Town for the Historical Society. There being no further business the meeting was adjourned at 8:20 p.m. Respectfully submitted, Jegnine M. Schmidt Secretary to the Library Board of Trustees. The City of Columbia Heights does not discrinRh, ate on tire basis of disability in tire admission or access to, or treamRent 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. 2 P. 32 OFFICIAL PROCEEDINGS COLUMBIA HEIGHTS TRAFFIC COMMISSION NOVEMBER 1, 2004 Chairperson Carlson called the meeting to order at 6:00 p.m. I. ROLL CALL Members Present: Anderson, Cm'lson, Goodman, Stmnpf, Sturdevant Absent: Council Liaison, Bruce Kelzenberg Staff Present: Kathy Young, Assistant City Engineer Tom Jolmson, Police Chief II. APPROVAL OF OCTOBER 4, 2004 MiNUTES Motion by Smmpf, second by Sturdevant, to approve the minutes of October 4, 2004. Motion ca-tied unanimously. III. OLD BUSINESS REQUEST TO DESIGNATE "NO PARIGNG" IN FRONT OF 700 39TM AVENUE N.E. At the October Traffic Commission Meeting, Con~nission members voted to table the request for "no parldng" in fi'ont of 700 39th Avenue. 1Vh-. Burhans, President of St. Paul Corrugating Co. was present at this meeting to discuss the yellow painted curb on 3 9th Avenue. The cm'bing in front of 700 39th Avenue had been painted yellow in the past by the City and had faded over time. Mr. Burhan's employee repainted the entire length of the curb without City approval. Mr. Bttrhan is requesting approval for no parldng and yellow cm'b from the entrance walk back to the driveway entrance. The concern is safety and ease of truck traffic entering the driveway. In previous years, City employees did paint the driveway and building entrance areas yellow but stopped the practice in recent yem's. Police Chief Jolmson stated that using a yellow paint to restrict pm'ldng in front of a business would not be enforceable as the City didn't authorize the restriction. P. 33 Official Proceedings Columbia Heights Traffic Con2nission November 1, 2004 Page 2 IV. Traffic Co~m~ission members discussed businesses in the area and the need for on street parking. Motion by Carlson, second by Goodman to call a Public Hearing to designate "no parking" in fi'ont of 700 39t~ Avenue from 6.5' east of entrance walk to west property line at the Traffic Commission Meeting on December 6, 2004. Motion carried unanimously. POLICY TO PROVIDE PROPERTY AND BUSINESS OWNER(S) 1N THE ZONED INDUSTRIAL AREA TO PAINT CURB YELLOW. At the direction of the Traffic Commission, staff has developed the · attached policy to allow property and business owner(s) in an area zoned as Industrial to submit a request to the Traffic Co~mnission to paint the curb yellow. The paint would be pm'chased through the City so the color matches what the City uses. Chairperson Carlson wondered if such a policy would be necessary as there are so few requests for painting curbs yellow to restrict parking. Other Commission members felt that with an approved policy the City would do the work, and charge the business owner for labor and materials thereby making it consistent throughout the City. Motion by Goodman, second by Stm'devant, to recolrunend the City Cotmcil adopt the policy to provide property and business owner(s) in the zoned industrial area and reimburse the City to paint curb yellow. OTHER OLD BUSINESS None. NEW BUSINESS REQUEST TO CHANGE THE NAME OF RAINER PASS TO RAINIER PASS. P. 34 Official Proceedings Columbia Heights Traffic Cmmnission November 1, 2004 Page 3 VI. VII. A petition was received by those living on this street requesting the spelling of Rainer Pass be changed to Rainier Pass. This change requires an Ordinance be approved by the City Council. Motion by gmderson, second by Sturdevant, to reconm~end to the City Council that Rainer Pass be changed to Rainier Pass. Roll Call Vote: Anderson-aye, Cm'ison~nay, Stumpf-aye, Smrdevant-aye, Goodman-aye. Motion carried. OTHER NEW BUSINESS None. REPORTS A. CITY ENGINEER The City is plmming mad hosting a joint Boards/Con~nissions dimaer at Mm'zyn Hall on Wednesay, December 8, 2004. The social hour will begin at 6 p.m. with dimaer at 6:30 p.m. B. POLICE CHIEF Police Chief Johnson indicated that the "no parking 2-6 a.m." restriction would be enforced after 11/1/04. Reminders have been published in the Heights Happening, on the web site mad on cable. Parking permits will be issued tFa'ough the Police Depm~ment. C. COMMISSIONERS Cmmnissioner Stumpf asked for ma update on the visibility question in the alley way at the north end of 2 ½ Street and Edgemoor Place mad raised at the last meeting. Staff indicated a letter had been sent to the property owner requesting the bushes be trimmed along the rem' of this property. Commission Goodman asked about the bump out on Jackson Street. Staff indicated that the Engineering staff and the Street Foreman have worked closely on this configuration and for ease of plowing. P. 35 Official Proceedings Colmnbia Heights Traffic Commission November 1, 2004 Page 4 V12I. ADJOURNMENT Motion by Carlson, second by Goodman, to adjottrn the meeting at 6:55 p.m. Re,,s..p._.e_ctfully subm~.'... 'tt~ed,~-~ ~e B~er Traffic Co~ssion Secret~ P. 36 ECONOMIC DEVELOPMENT AUTHORITY (EDA) SPECIAL MEETING MINUTES JULY 29, 2004 CALL TO ORDER/ROLL CALL President Murzyn called the meeting to order at 5:34 p.m. Present: Don Murzyn Jr., Patficia Jindra, Bobby Williams, Bruce Nawrocki, Tammera Ericson, and Bruce Kelzenberg Staff: Absent: City Manager Walt Fehst and Assistant to th~ Community Development Director Randy'Schumacher Julienne Wyckoff ITEMS FOR CONSIDERATION · Further Discussion on NEI Site Fehst stated that Commissioners Nawrocki and Williams called this meeting to discuss if the Authority acted prematurely to approve the demolition of the NEI building. The bid was awarded on April 14, 2004 to F. M. Frattolone. The building has been gutted of asbestos, which has resulted in a lot of damage. The contractor is on site and ready to begin demolition. Fehst referred to touring the building yesterday with Mr. Williams and his architect. Fehst stated that the building was for sale, unsuccessfully, for one year for the price of $1',200,000. The City purchased it for $600,000. The only interest in the building was by non-profit groups. Dunbar Development proposed 50 apartment units on top of community space with 22 units of carriage homes in the back of the lot. Staff spoke to a dozen developers to see if they were interested in keeping the building. Six developers looked at the building and indicated that the real value was in the raw land. The EDA requested staff obtain CDBG funds to remove the building. Williams stated that he and Commissioner Nawrocki were against moving so fast on the demolition, and that the commission does not have a cbnsensus for what to do with the site. He stated his wish to have started earlier to save the ,,,,n,~;.,~u ~,,,~,,~s. Architect Chuck Fryberg indicated that he p~ob,,~,~, could have found someone to - puicua~ m~ oulmmg mud put in a ,2u,uu0,000 project. The building will be difficult to remove, because it is so well built. However, there is now water coming through the roof to the gym floor. Williams referred to the refurbishment of the Grair~belt Brewery, which took 20 years. Murzyn stated this is not an historical building. Williams stated that in the future if there are two descending votes on an issue, it should be discussed further. We need to be more of a team. Ericson stated this discussion began on the timing issue, setting aside the ultimate issue to tear down, which began late last year. The issue was discussed, we applied for a demolition grant, and approved demolition in April. Following this, there were no further issues to discuss, resulting in no EDA meetings during june and July. Now we have a sig-ned contract. Ericson stated it bothers her to hear that we moved to quickly, and sees this as a last minute effort. In getting rid of the building, we can look at something else. She reiterated that we received funds for removal and that any interest shOwn, for the site was for raw land. Ericson stated that Councilmembers toured the building, read the reports, and indicated that her decision was not made quickly. P. 37 Economic Development Authority Meeting Minutes July 29, 2004 Page 2 of 4 Williams stated that he did not get input from citizens until after the vote was taken. We need to have a plan and better communication. Kelzenberg indicated that residents he spoke to say the building should be tom down. These residents may be young and may hake a different vision for the future. They know we need space for our youth, right in Columbia Heights. Kelzenberg referred to an E-mail from Tom Sherohman stating that we need to do this for the kids and offered his help. Kelzenberg stated that we need to think of the future, not just today. The school gyms are not open during the summer. He is also in favor ora pool. Williams indicated this was voted down five years ago and that was before we lost $2 million in State aid. Kelzenberg agreed that the time to do this was 25 years ago. He stated there were only 2,600 votes cast, two to one against their proposal. The kids need something to do and someplace to go. Williams stated that the NEI gyms were in good shape. Kelzenberg indicated they were substandard. Nawrocki stated that three months ago he voted against demolition because we did not have a plan. We should have hung onto the building to see if we could use it. Staff had indicated it was unfeasible to bring the building up to code. The document given in the packet was to justify the area as a TIF district to tear it down and redevelop the area. Nawrocki still feels strongly, but realizes at this point it is probably too late to save the building. The need for gym space is a concern. He referred to a call he received regarding papers, which indicate the old part of the building was built in the 1920's for $70,000. Those gyms could still have been used for recreation programs. The auditorium had 1,000 seats and a newer gym floor. Nawrocki stated that he has been convinced there is a need for gym space. With the loss of NEI we will have no .gym space other than the schools for our programs. I/something comes of the site at 37th and University, it would be great, but there may be sites of higher priority. Nawrocki stated he has had discussions with our schools regarding a cooperative venture. Unfortunate, they will not be pursued in this fall's election. Sharing the cost with the school district, including Fridley residents that attend our schools, would have been the best solution. Murzyn stated that has not been ruled out. Nawrocki indicated it has been ruled out for the time being and that delays meeting the need. This last ditch effort, to try and save.the building with two gym spaces is an honest concern to fmd some temporary space for the programs. He is saddened that we won't be able to keep the 'property until we are able to do something better. He referred to the cost to bring the building up to code. He indicated he is not hung up on the historical preservation, but on trying to save two ~ spaces. Murzyn questioned what Dunwoody Institute paid in taxes. Fehst indicated they paid no taxes.. Murzyn indicated that we should have bought it before they did. We have done nothing for years for our kids. Whatever is done will be to late for today. This property should be multi-use and the taxes would help with our loss of aid. We drastically need to change to a bedroom community and then our taxes would go down. The parks we have are minimal, poorly maintained and not being improved. Nawrocki debated these comments and gave the past history of our parks. Murzya asked when the list park was obtained. Nawrocki stated it was when he got land donated from Burlington Northern. Murzyn stated that we may have more park space than most and suggested a skate park, as that is what kids today do. . Ericson agreed wi~h Chairperson Murzyn, that these are two different issues, and that the recreation program does not influence the decision on the NEI building. The money put into the P. 38 Economic Development Authority Meeting Minutes July 29, 2004 Page 3 of 4 building for renovation, ADA, and maintenance would be a huge expense. Ericson spoke of the selling price of homes in Columbia Heights compared to other communities such as St. Louis Park, where the homes sell for more and residents are willing to pay for the amenities they want. The houses that sell here are sold to become rental property. We need to make our community a · competitive place to live. Nawrocki stated that interest rates are going to rise. The boom is over. Kelzenberg stated that is another reason to do something now. Because of the current interest rates, now is the time to build a facility to meet our needs. An audience member questioned the legal ramification to back out of the signed contract and to the demolition grant money. Murzyn stated that we would be sued for the contract amount. Nawrocki stated that we would not back out, but negotiate. The grant money would have to be given back, but could possibly be used for another project. Sue, a member of the recreation facility task force, stated that they have not rejected the NEI site. Our efforts have been diverted to the choice location as next to Murzyn hall. Gary Peterson indicated that .at the building open house in June, people expressed concern to possibly save the building. Don't tear it down until you have a plan for the property. Peterson stated he did express concern six weeks ago at the council meeting and everyone was alerted. The necessary time was not taken to cover all the options. It is sad to see the shape the building is in now, as it would be unusable as a city facility. Those gyms could have been used from day one. Ericson stated that we could not just open the doors without bringing the building up to code. Peterson stated there was not a health or safety hazard, just that the plumbing did not work because the outside line was broken. Peterson questioned plans for the site, considering the city is in a money dilemma. Fehst stated that the Mqq Design Group from the Lrniversity is looking at site options for private and public development. Joe Sturdevant stated that we had two votes ~'or a recreation center; one was in a presidential year. He did not agree with spending money indicated by a survey that only spoke to 300 of the i 8,000 residents. ~' the building were kept for gym space, we would still need two more gyms and would not have the $900,000 spent on the renovation for a new facility, An audience member asked i£this would go to the people for a vote? Murzyn indicated that Council would not need to put it on the ballot. Kelzenberg stated he is adamant that gym space be on the ballot this year. Murzyn stated that this discussion was not about gym space. Jindra stated that permits have been pulled and if we renege, we could be sued. Nawrocki suggested negotiating with them. Jindra stated that then we would be back to where we were · before. Jindra stated that she liked the old building, but the reports show it is too costly to redo and it is prime property. She stated she would like to see multi-use on the site. Peterson stated that if the building were demolished, the task force would like to see the sale funds directed toward a community center to take the burden off the taxpayer. There would be user fees. " P. 39 Economic Development Authority Meeting Minutes July 29, 2004 Page 4 of 4 An audience member questioned the student enrollment numbers. Kelzenberg stated there are more programs, and therefore more people to accommodate, i.e. volleyball, wrestling and girls sports. Murzyn referred to the school track being repaired, but the fence is locked on the weekend and residents can't use it. ., ADJOURNMENT Ericson moved to adjourn the meeting at 6:47 p.m. Second by Kelzenberg. Upon vole: All ayes. Motion carded. lbatricia Muscovitz, OMC { Deputy City Clerk/Council Secretary P. 40 ECONOMIC DEVELOPMENT AUTHORITY (EDA) REGULAR MEETING MINUTES September 21, 2004 CALL TO ORDER/ROLL CALL President, Murzyn called the meeting to order at 7:09 p.m. Present: Don Murzyn Jr., Patricia J~dra, Julienne Wyckoff, Bobby Williams and Bruce Nawrocki, Tammera Ericson, and Bruce Kelzenberg PLEDGE OF ALLEGIANCE CONSENT AGENDA Approval of Minutes Move to adopt the minutes of the August 17, 2004, regular meeting as presented in writing. Financial Report and Payment of Bills Move to approve Resolution 2004-08, Resolution of the Columbia Heights Economic Development Authority (EDA) approving the financial statements for August, 2004 and approving payment of bills for August, 2004. Nawrocki questioned, why does it state under Parkview Villa North cashflow, revenue rental income, the year to date actual is $170,923, when the year to date budget is $223,713. Streetar stated this is due in part to the fact that Crest View was certifying residents by their net instead of gross incomes and it will take until the end of the year to make all of the adjustments. Motion by Williams, second by Jindra, to adopt the consent agenda items as listed. All ayes. Motion Carried. ITEMS FOR CONSIDERATION Resolution 2004-06~ Acquisition of Bur~er King Property Streetar stated the board directed staff to go back to Nath Companies to negotiate an agreement for the purchase of the property. At this time staff is recommending the purchase price of $800,000, which includes land, building, furniture, ftxtures and equipment as well as relocation assistance as laid out in the enclosed agreement. The contingencies include: 1) comp!eting phase uuut~tt~etd estimates; .,,~ F~,~fo, m tax I environmental review; 2) sec'are u~,tol~,oI~ ar,u ua b~,'~oa- ~ ~ ....... increment inspection and 4) secure financing from City Council Funds wouM come from a loan from the City using the parYa'ng ramp fund290 and Sheffield fitnd 410. Once the property is purchasgd the building will be demolished using approximately $40,000 of CDBG funds left over fi'om the sale of 4607 Tyler Street. In addition, Bauer Construction estimates the salvage value of Burger King is expected to be $1,000 to $5,000, which could also help pay for demolition and asbestos abatement. Tom Letness, the owner of the Heights Theatre has contacted staff with interest in adding 2 or 3 more screens. If that would work out, then on the White _Rental property a nice restaurant would be ideal as~eople come from all over the cities to the Heights Theatre, Dan Wilson, a relocation specialist stated Burger King is legally entitled up to $200, O00 for FF&_E, $100, O00 for relocation, and an additional $300,000 in compensation, for a total of $1,100, 000. He recommended $800,000 settlement because the $300, O00 for FF&E, with relocation included re_sults in a $300,000 savings for the EDA. P. 41 Economic Development Authority Special Meeting Minutes September 21, 2004 Page 2 of 5 Murzyn, Jr. stated he felt that using $800,000 in funding isn't an issue as we can always come back by the development area and say we did that. Wyckoff also felt confident that the offer was agreeable and with buying Burger King and White Rental, then Mady's should want to redevelopment their site. Ericson stated she didn 't feel obliga'ted to buy the property, we couM walk away, but it sounds like we could sell it to the theatre or someone else quickly for redevelopment. Fehst stated staff has many priorities, a short amount of staffing and therefore felt the EDA should buy the property or totally drop the development ideas for the site. Motion by Wyckoff, seconded by Ericson, to waive the reading of Resolution 2004-06, there being an ample amount of copies available to the public. All ayes. Motion Carried. Motion by Wyckoff, seconded by Ericson to Adopt Resolution 2004-06, a Resolution Approving the purchase of land between the Columbia Heights Economic Development Authority and Nath Property Corporation, L.P., A Minnesota Corporation; and furthermore, to authorize the President and Executive Director to enter into an agreement for the same. Upon Vote: Jindra- Aye, Nawrocki- Nay, Williams- Nay, Ericson- Aye, Kelzenberg- Aye, Wyckoff- Aye, Murzyn- Aye. Motion Carried. Resolution 2004-09~ Approving an Inter-Fund Loan. for Burger King Streetar stated Resolution 2004-09 is a resolution approving an Inter-Fund Loan to purchase Burger King in the amount of $800, O00 from the City to the EDA with funding coming from Fund 290 and 410, subject to. City Council approval to provide the loan. The loan could be repaid from proceeds from land sales, tax increments generated from a future project, or other sources available to the EDA. Motion by Ericson, seconded by Wyckoff, to waive the reading of Resolution 2004-09, there being an ample amount of copies available to the publiC. All ayes. Motion Carried. Motion by Ericson, seconded by Wyckoff; to' Adopt Resolution 2004-09, a Resolution Approving a loan for $800,000 from the City of Columbia Heights to the Columbia Hei~hts Economic Development Authority for the purchase of a property located at 3939 Central Avenue with funding to come from Funds 290 and 410, subject to the City Council's approval to provide the loan in the same amount and under the same terms. Upon Vote: Jindra-Aye, Nawrocki- Nay, Williams- Nay, Ericson- Aye, Kelzenberg- Aye, Wyckoff- Aye, Murzyn- Aye. Motion Carried Asbestos Abatement Change Order for NEI Building $chumacher stated the demo is going well. Originally when the bid came in from Southern Minnesota Environmental for the asbestos removal, staff wasn 't able to access the property, so the bid was submitted by square footage. Once the asbestos removal began the contractors found more hazardous materials that needed to be removed prior to demolition of the building. Staff received three change orders to the original bid: Change Order #1 was for vermiculite removal in the amount of $11,300; #2 was for transite panels in the fan room in the amount of P. 42 Economic Development Authority Special Meeting Minutes September 21, 2004 Page 3 of 5 $5,071.50; and #3 was for sink fire doors, more transite panels and vermiculite in the amount of $3,555.00. The state preformed three inspections during the removal period. Stacie Kvilvang from Ehlers & Associates stated Southern Minnesota Environmental has sent another change order for some additio'nal piping, which we are denying, based on our contract as they failed to notify the City priob to removal. Motion by Kelzenberg, seconded by Ericson, to Approve the change orders submitted by Southern Environmental Technologies Inc. for additional vermiculite removal in the mount of $11,300, additional transite panels in the fan room in the mount of $5,071.50 and removal of sink, fire doors, transite panels and vermiculate in the amount of $3,555.00. These change orders shall be funded by surplus, reallocated Community Development Block Grant dollars fi:om project number 327, the sale of 4607 Tyler Street program income. All ayes. Motion Carried. Resolution 2004-10, Authorizing Condemnation by Quick Take for 322 40th Schumacher stated staff made every attempt possible to purchase the property at 322 40th avenue with no prevail, an appraisal was conducted by the City, staff waited until Anoka County appraised the property per the owners request. Dan Wilson, Wilson Development met with the owner today. The owner agreed to $225,000 purchase price but had to check with his wife, so at this time he still hasn't signed an agreement. With the $150,000 CDBG fundingfor the purchase, we need to close on this deal soon or loose the funding. Murzyn, Jr. asked what is a quick take. Schumacher stated it guarantees we get the property. Ericson stated they could adopt the resolution for the quick take tonight and abandon it at anytime, if the owner gives us a purchase agreement. gqlliams excused himself fi'om the decision, as he is one of the Partners involved in redevelol~ment of the site. Motion by Kelzenberg, seconded by Nawrocki, to waive the reading of Resolution 2004-10, there being an mnp~e amum~[ m cutJ~us avadaul, to the public. All ayes. Muuutt,~.m t ~u. Motion by Kelzenberg, seconded by Nawrocki, to Adopt Resolution 2004-10, a Resolution authorizing Condemnation by Quick Take for the property located at 322 40th Avenue NE (PIN #35-30-~4-31-0118) for redevelopment purposes. Upon Vote: Jindra-Aye, Nawrocki- Nay, Ericson- Aye, Kelzenberg- Aye, Wyckoff- Aye, Murzyn- Aye. Motion Carried. Contract with Maxfield Research, Inc. to perform a Demand Analysis Streetar stated the City Council, EDA and residents have all talked about the need for a Community/Recreation Center. Maxfield Research Inc is proposing to perform a Demand Analysis, which would analyze existing facilities, look at other amenities in the area and specify the number of gymnasiums needed in Columbia Heights. The analysis wouM take 45 days, at a total amount of $7, 000. The Sports ;~usters have agreed to pay $2,000; the school board is meeting tonight to vote on putting in $1,000, which would make the City'S portion $1,000. Local residents, Schumache? and Streetar can work with Maxfield to develop the analysis. P. 43 Economic Development Authority Special Meeting Minutes September 21, 2004 Page 4 of 5 Nawrocla' asked who is Maxfield Research and did they have any comments as to the location for the facility. Streetar stated they are the firm that did the Mady's study, Columbia Heights Housing Study, Anoka County Housing Study, he has used the firm when he was in Minnetonka and Oakdale and that Maxfield stated they felt the NE£ site was a better site and easier to access than Huset Park. : Resident, Sue Genosky, stated she is spearheading getting a Recreation Center in Columbia Heights, stressed the need for gyms, whether or not the Crock Recreation Center is built or not, the study will be very important in the determination, and provided the board with a copy of the minutes from the Booster Club minutes stating they will provide $2, O00 for the analysis. Williams stated after going to the School Board meeting he felt they Weren't interested in the project. Ericson stated she also attended the meeting and understood the people there night weren't willing to pay for the facility and that she hopes a study like this would help determine who wouM use the center. Resident, Aurora Johnston, stated the analysis will not be biased and would tell us what we really need to know. Motion by Ericson, seconded by Wyckoff, to Approve the Contract with Maxfield Research, Inc. to perform a Demand Analysis for a Community and Recreational Center in Columbia Heights; and furthermore, to authorize the President and Executive Director to enter into an agreement for the same. All ayes. Motion Carried. ADMINISTRATIVE REPORTS Apache Medical Buildin~ Streetar stated the owners of the Apache Medical Building are interested in building a facility in Columbia Heights and has set up a meeting to discuss this with them. 4232 Madison Street " w,a,,, the Planning and Zoning ~ '--' - denied a Streetar .... ~ ~':- :- m~ ~v,s~ ~ ope, Of, ' ~ '~ lot split at their meeting this month. Tne ~roper~ is basically not buildable. Staff contacted GMHC, which determined they could tear down the home and sell it for $240,000, but there would be a gap be~een it of $60, 000. GMHC will contact MHFA forpossible assistance. g~eemr ~tated the homejust south of it could possib& be purchased and the lots combined for redevelopment. Nawrocki asked what the address of the other home to the south was. Streetar stated he wash 't sure, but Bakken would call him with the correct address tomorrow. Wyckoff, Jindra and Williams also ask for the property address. Hilltop Streetar stated Fehst, Wyckoff and himself attended a Hilltop City Council Meeting were they stated they have applied and received a grant for $25,000 to redevelop the 47th tO 49th block of Central Avenue... P. 44 Economic Development Authority Special Meeting M/nutes September 21, 2004 Page 5 of 5 Ci,ty Planner Streetar stated the City has received a number of applications for the position and may upgrade the position to do some of the things with redevelopment that he and Schumacher currently do. He will be coming before City Council to discuss hiring a full time planner that could do this type of work. Next week there will be d planner coming in three days a week to assist the department. Building Official Streetar stated we have only received two applications for the position, which neither one are qualified for our needs. With all of the new developments coming up in Columbia Heights staff has been talking to other cities about the possibility of combining services. MGS Building Schumacher stated there is an illegal use church in the MGS building that has also put up two illegal signs. The City Planner will be sending out a certified letter t° the owners of the property in this regard. Walker ElderCare Streetar stated he met with Denny 0 'Donnell from Walker ElderCare this week, as they are interested in putting a senior wellness center on part of the NEI site. Staff will continue discussions and inform the board as ideas develop. Nawrocki stated the resident at 1141 Cheery Lane contacted him with concerns that his property is falling down into the Kmart property and asked who he should contact. Streetar stated Jim Mollenaro is the City contact, has talked to Kevin Hansen on this matter already and public works will be addressing the issue with our engineers. Nawrocki stated: 1) he received a call from a Parkview Villa resident concerned that the air conditioning was turned off, which effected her asthma; and 2) heard that the phone was taken out of the elevator and residents are getting trapped iN 'there until someone hears them pounding on the doors. Streetar stated Welke was conta~ed by staff about the air conditioning problem of which she stated it was turned down but as soon as she came it, she turned it up and with the elevator phone issue, staff will contact Welke to have this corrected. The board directed staff to contact Welke to install a phone that residents can call 911from for medical emergencies and an elevator'emergency number to dial for when they are stuck in the elevator. ADJOURNMENT President, Murzyn, Jr., adjourned the meeting at 9:15 p.m. Respectfully submitted, Cheryl Bakken Community Development Secretary H:~EDAminutes2004\x)-2 t-2004 P. 45 ECONOMIC DEVELOPMENT AUTHORITY (EDA) SPECIAL MEETING MINUTES OCTOBER 25, 2004 CALL TO ORDER/ROLL CALL President, Murzyn called the meeting to order at 6:31 p.m. Present: Don Murzyn Jr., Patricia Jindra, Julienne Wyckoff, Bobby Williams and Bruce Nawrocki, Tammera Ericson, and Bruce Kelzenberg PLEDGE OF ALLEGIANCE ITEMS FOR CONSIDERATION Resolution 2004-13, Modification to the Downtown Revitalization Plan for the CBD Redevelopment Project and Establishment of the Huset Park Area TIF Plan Schumacher stated this is the last action to be taken prior to the demolition and removal of contaminated soil in the industrial park. Once the Tax Increment Financing Plan and the elimination of the parcels from the MURP district to the new district is approved, staff will take the item to City Council for approval of the grant application for the removal of the Honejm;ell and Rayco buildings and clean up of the soil. As you know the rezoning of the property has taken place, the comprehensive plan has been amended, the environmental assessment worksheet has been approved, the moratorium has been removed and the Schafer Richardson Development Agreement has been completed. Mark Ruff, Ehlers & Associates Inc. stated the process they followed for the Tax Increment District included notifying the County and School District to review the plan and giving them 30 days notice of the Public Hearing with just positive comments being received, the public hearing notice was published and documents were available to review for weeks. One of the documents in the TIF plan is the redevelopment eligibility assessment study preformed by S.E.H. State law requires an attempted inspection on the buildings in the tax increment district, which all but two were inspected, with only two meeting substandard qualifications. The TIF plan lays out a maximum in terms of budget and the length of the TIF. district. Under state law the district can go up to 26years, but we don't anticipate it going that long and if everything works out with the developers budget and the grant from the state, it is .anticipated the district could be as short as 11 to I2 Years. Keep in mind the EDA approved a development agreement a few wee/cs ago that states the number of years could increase if the costs are higher and the developer would have to share the costs. The district sets a maximum budget of $12 million but with current rates we are looking at $8 million in tax increment assistance. The $12 million of tax increment, compared with the project cost of $125 million would make the tax increment about 10%, which is very good for a project of this size. Williams asked how much the developer pays of the cost over the 12years. Ruff stated in the development agreement it states that if there were increased'costs, the developer wouM pa, v 20°/5 and 80% would be the tax increment share for certain costs, not everything, which kicks in at the time the total budget is established. Wyckoff stated she understood the development agreement covers all three phases, does the TIF plan cover all thrd~ phases. .Ruff stated it did. P. 46 Econorrfic Development Authority Meeting Minutes October 25, 2004 Special Page 2 of 3 Ruff stated in previous days we would set up a plan with the exact amount of TIF we assume to give the developer. Then the state auditor said if you ever exceed that budget you have to go back and modify the TIF plan, which takes time and money. So most public entities find it much easier to pass a tax increment plan that has a budget, Which is much higher than what we intend to spend. The City could then use some of this additional income stream for other projects in the City, without modifying the TIF plah. Nawrocki asked under Use of Funds, what is not applicable in this project. Ruff stated each of the categories are applicable to this project, each category has a higher estimate than what is currently proposed in the development agreement, which was listed in an addendum to the agreement the EDA approved last month. Nawrocki stated on page 7, two ways to compute ftscal disparities what is B. Ruff stated the City and EDA have a choice to pick the fiscal disparities fi'om inside the district or outside the district. The plan identifies the use of plan A, which would collect fiscal disparities from comm ercialproperty inside the district at a total of $6,5OO per year. Ruff stated 1) the developer doesn't have any incentive to spend more money, because they have to finance it and want to get the development finished as quickly as possible, just like the city is; and 2) there are a lot of uncertainties, so we ca,ne to the agreement with the developer to estimate low on the costs, but let them know if the costs go over that amount, we wouM have to come back and modify the district. Fehst stated with this we have no risk up front. Williams stated by giving this much leeway would they have less incentive to produce. Ruff stated TIF does not drive the developer, what drives them is what they can get built and the flexibility in the development agreement to get that. If you truly want to reduce the budget, we would have to go back to the development agreement, as that is what drives the development. Fehst stated the developer can't make more than his 15%profit on the development and does not get paid until the third phase of the project is complete. _Nawrocki stated he does not believe this is the greatest project to come to Columbia Heights. ff it worked for 12 years, bu~ ~,, /,~,,,,~ ?n ,,o,,.~ ...... ~ ~ ............ ~ .... to capture the ....... ~ .... e, ~ won't be any increase in funds for extra police, fire, ci~ staff and school district costs, but all t~payers will have to pay more t~es to pay for these extra se~ices, is still concerned with the high densi~ of housing and wan?s to see documentation the development will be all owner occupied housing. Rz~stated the school district wouM receive revenue of the development~om the operating l~. Williams asked with the estimated $8 to $12 million, for the 10 to 12years the City wouM start to obtain tax increment after 5 years. Ruff stated 1) after 12 years it is the EDA and City's choice on the tar, h~crement, not the developer and 2) in 5 years, if we find the development is not going to be done you have the choice to extend the tax increment beyond the 12years, but this must be done ' ...,i 2.. Wttrltrt .~ years per state statue. Fehst stated there is up to lO%for a&ninistrative staff costs in the T£F plan, which with all the future developmen, t.s, staff can easily utilize. The current taxes received in the development area P. 47 Economic Development Authority Meeting Minutes October 25, 2004 Special Page 3 of 3 is hardly anything and the question Mr. Nawrocki is addressing on owner-occupied housing will be the ultimate decision of the Planning and Zoning and City Council prior to anything being developed Motion by Ericson, second by Wyckoff, to Adopt Resolution 2004-13, a Resolution Adopting a Modification to the Downtown Revitalization Plan for the CBD Redevelopment Project and Establishment of the Huset Park Area TIF Plan. Upon Vote: Jindra- Aye, Nawrocki- Nay, Ericson- Aye, Kelzenberg- Aye, Williams- Aye, Wyckoff- Aye, Murzyn, Jr.- Aye. Motion Carried. Resol'ution 2004-12~ Eliminating Parcels from 142 TIF District Ruff stated this Resolution is to take the properties out of the K2 district and put them into the new district you have just established for the development. Tax increment was set up in J989 for the industrial park under the MURP district, which no activity occurred in the area, so the area fell out of the district and have been on the tax rolls since approximately 1994 per state law. Technically we need to acknowledge the parcels and elhninate them from the 3/FURP district and place them in the new TIF district being established tonight. Motion by Williams, second by Kelzenberg, to Adopt Resolution 2004-12, a Resolution Approving the Elimination of Parcels from the TIF 4 Multi Use Redevelopment Project (MURP) K2 Tax Increment Financing District within the Central Business District Redevelopment Project in the City of Columbia Heights. All ayes. Motion Carried. ADJOURNMENT Motion by Williams, second by Ericson to adjourned the meeting at 7:17 p.m. All ayes. Motion Carried. Respectfully submitted, Ch~n Co_m_m~_u_nity Development Secreta_~ H:~EDAminutes2004\October 25, 2004 Spec. P. 48 ECONOMIC DEVELOPMENT AUTHORITY (EDA) SPECIAL MEETING MINUTES Monday, September 27, 2004 CALL TO ORDER/ROLL CALL President, Murzyn Called the meeting to order at 7:04 p.m. Present: Don Murzyn/tr., Patricia Jifidra, Julienne Wycko££, Bobby Williams and Bruce Nawrocki, Tammera EricsOn, and Bruce Kehenberg PLEDGE OF ALLEGIANCE ITEMS FOR CONSIDERATION Schumacher requested Resolutions 200d-12 and 13 be tabled until next month as some' information was left out of the Tax Increment Financing Plan and stated he will be requesting the same at the City Council meeting along with the public hearing. Resolution 2004-13~ Modification to the Downtown Revitalization Plan for the CBD Redevelopment Proiect and Establishment of the Huset Park Area TIF Plan and Resolution 2004-12~ Eliminating Parcels from K2 TIF Motion by Williams, seconded by Kelzenberg, to table items 3-A and 3-B until October. All ayes. Motion Carried. Resolution 2004-11~ Approving Contract for Private Redevelopment Schumacher stated this resolution is to approve a contract with Schafer Richardson for redevelopment of the Industrial Park. November ist the Phase II clean up grant application is due to the state, of which they won't approve until a redevelopment contract is h~ place. Steve Bubul, Kennedy & Graven, Chartered outlined some of the important parts of the Contract. There z~ approximately 28 acres to be developed, 80% of the project or approximately 450 units would have to be done before the developer would become eligible to receive TIF funds, the EDA will be reviewing the development plans prior to construction, the developer needs to acquire all of the properties by October 31st or will come to the City for help with condemnation, if the contract is app~ oved ~ ~oo] t,,e proyect ~osts woul~ come fi'om the developerunu-" ~ z~n°/uzoj,'o,,~ ~ "' Ci~ funa~ng, the ~A wouM approve eve~ sub-developer when properties are sold o~ the Ci~ ~ cost for the par~ay is approximately $1.4 million, with $1.2 million funded~om state aid and $1.677 million coming~om the developer. ~e Tax Increment Financingis based on a'Pay-as- you-go pro,am, which ia where the developer buys all the RroRerties, develops the &nd and in this case will be as~'ng the Ci~ to receive approximately $8 million in funding. Nawrocki stated: 1) he does not intend to support the project, as it should be in City Council hands not the EDA as the meetings don't get to residents; 2) he asked to have it stated in the agreement that all housing is to be owner-occupied and was told the developer could not agree to this at that point; 3) with cut backs in City funds, increased utility rates, and staff cuts, we should wait on this project. Murzyn, Jr. asked Nawrocki what he meant by the EDA not getting information out. Nawrocld stated that isn't what he meant. He meant the EDA meetings are not televised so residents don't P. 49 Economic Development Authority Special Meeting Minutes September 27, 2004 Page 2 of 2 hear about what we are discussing until it goes to City Council Schumacher stated these items are on both the EDA and City Council agendas and that the City Council is the governing body. Ericson stated if Nawrocki is concerned the EDA meetings aren't televised we could certainly start televising them, however we would have trouble with the four times a year our meetings are held following the HRA meetings at Parkview P-ilia. l~yckoff stated if we do that we should televise all EDA meetings, not just for this development project. Motion by Wyckoff, seconded by Ericson, to waive the reading of Resolution 2004-11, there being an ample amount of copies available to the public. All ayes. Motion Carried. Motion by Wyckoff, seconded by Ericson, to Adopt Resolution 2004-11, a Resolution Approving a Contract for Private Redevelopment between the Columbia Heights Economic Development Authority, the City of Columbia Heights and Scha£er Richardson, Inc. or a related entity; and furthermore;to authorize the President and Executive Director to enter into an agreement for the same. All ayes. Motion Carried. Wyckoff asked for clarification of "or a re&ted entity". Bubul stated this' is limited liability and Schafer Richardson will be one'of the owners. Brad Schafer stated he is the chief owner of Schafer Richardson Inc, a related entity and will be an actual partner in the entity. Nawrocta' stated entities are used to transfer some of the liabilities of the project. Bubul stated this is true and that is why we have control over the TIF financing, were we can withhold TIF funds to the developer if the project does not get built per your specifications. ADJOURNMENT Motion by Nawrocki, seconded by Ericson, to adjourn the meeting at 7:50 p.m. All ayes. Motion Carried. Respectfully submitted, Cheryl Bakken Community Development Secretary H:kEDAm/nutes2004\September 27, 2004 Spec. P. 50 ECONOMIC DEVELOPMENT AUTHORITY (EDA) SPECIAL MEETING MINUTES SEPTEMBER 15~ 2004 CALL TO ORDER/ROLL CALL President, Murzyn called the meeting to order at 7:15 p.m. Present: Don Murzyn Jr., Patricia Jindra, Julierme Wyckoff, Bobby Williams and Bruce Nawrocki, Tamrnera Ericson, and Bruce Kelzenberg PLEDGE OF ALLEGIANCE ITEMS FOR CONSIDERATION COLUMBIA HEIGHTS INDUSTRIAL PARK REDEVELOPMENT Murzyn asked the board to hold their questions until the entire presentation was complete. Schumacher introduced Sue Mason, Project Manager from S.E.H. that did the Infrastructure study, Mark Ruff, Financial Consultant from Ehlers & Associates, Steve 11ubul, the City's consultant from Kennedy and Graven, 11tad Schafer, President of Schafer Richardson and Evan Rice, Legal Counsel for Schafer Richardson. Schumacher stated this meeting was called to bring the board up to speed on the Industrial Park Redevelopment project proposed by $chafer Richardson and that there will be no action items. The City received $1.2 million in grants for clean up in Phase I. For Phase IL, the DEED grant application is due by November fit, 2004. Sue Mason stated S.E.H. looked at the infrastructure of the development, which is traffic, par~vays, sewer, water, waltavays, and lighting issues. Mason stated the Feasibility Report identified 1) would not add any traffic problems; 2) the sanitary sewer is okay; 3) there is a cast iron water main that needs to be replaced; 4) recommended adding a new storm sewer; and 5) they recommended added trails and sidewalks along the parkway with lighting. The report also s.u~vs a ~ u.uu-.-bum in the area 0f39th & dej~ee~on ,u la~ u wd~ c~ uurr-~er aha tloustng. . . Nawrocki stated he didn 't feel it was necessary to have a round-a-bout as shown in Concept A 'and the [~eed for curved roads on Concept tt. Mason stated anytime you develop a parkway design you use curved streets to allow for slower traffic would compliment the four ball fields design in the park study that the City is also working on. Schumacher stated there are approximately 15 businesses in the Industrial Area that have no intention of moving and with the round about it would create a nice barrier for the housing area. Wyckoff agreed with Schumacher. Mason went over the breakdown of project costs, explained the $500,000 deduction for phased roadway in the north/south portion of the park as this area will be developed after the park is finished, and that the roadway costs are divided up on a front split cost or by lateral footage. P. 51 Economic Development Authority Meeting Minutes September 15, 2004 Special Meeting Page 2 of 3 Schumacher stated of the $1.4 million coming from the City, $1.2 million would be e!igibIe for MSA funding. Kevin Hansen stated we get $1.2 million per year, but can borrow in advance if this years funding has already been allocated, which was done when they did the Central Avenue project. Mark Ruff stated the project is expedted to generate 558 units of owner-occupied housing and 11, 600 sq.ft, of commercial to be built in three phases over a period of five years, the developer is responsible for purehasing all of the property, the City agrees to use eminent domain, if necessary, to help the developer purchase any of the remaining properties with the developer paying for the 'relocation costs for all owners and tenants, the developer agrees to pay for all City fees including park dedication, SA C and WA C fees,' the City will reconstruct the road adjacent to the project and assess the developer for its portion of the Costs and payingfor the City's side of the improvements to sewer and water and MSA dollars. Financing proposed for the project is a TIF Pay-As-You-Go program where the developer pays all of the costs upfront, which is $8, 450, O00 for parkway, demo of buildings, site pr. ep, environmental issues, etc. The TIF could be for 13 years provided the City receives the state grant for $3 million for clean up, otherwise, it can be movedout farther to 18 or 20years. The difference between the Kmart and Industrial Parkproject TIF Districts is that when the state evaluates the costs, percentage of blighted or contaminated area to determine the need for the funding which the Industrial Park does qualify much higher for. Steve Bubul went through some of the issue on the redevelopment contract. On page 2, 1I Timing and Proposed Phases, Phase ! will be approximately 170 owner occupied townhomes and condominiums or cooperative units and approximately 11, 650 square feet of commercial space, with improvements commencing within 1 year and requires 75% of the housing units done within 3 years. In Phase 11 there will be approximately 120 owner-occupied townhomes, commencing within 3 years, must complete all site improvements and 75% of the housing units within 4.5 years, plus all land for Phase 11 must be acquired within 2 years. Phase 11I will have approximately 256 owner-occupied condominium or cooperative units, commencing within 4 years, must be complete all internal Phase 11I site improvements and 30% of the housing units within 5 years with all land being acquired ~vithin 2 years. ~£the developer fails to meet the ..... ; ..... ~ ,z,~ ~'r~ ~ ........... ,~ ' '~'~ ': u~dauhmg parcets until the required minimum improvements are made. To meet the DEED pollution ~ant price requirements, at least 20~ of the units in Phase I must be soM at a gurchase grice not to exceed110~ of the m~imum' affordable price under Me~opolitan Council ~idelines. All cons~ction plans must be approved by the EDA and meet the red~elopment glan and desi~ stan&rds prior to const~c~on. Fehst stated that Phase 111, will generate the most.tax base. Schumacher stated, they will be doing construction in Phase I and 11at the same time. Nawrocki asked if staff knows what amount of SAC credits are available to the City. Streetar stated there are a lot. Williams stated und. e.r V number 5, isn't the property or business owner responsible for the clean up of contamination. BUbul stated they are only if they created it. P. 52 Economic Development Authority Meeting Minutes September 15, 2004 Special Meeting Page 3 of 3 Nawrocki quoted from an old document submitted by Ehlers stating that the duration cfa TIF district will be 26 years. Ruff stated what the document is saying is that it could go up to 26 years. : Nawrocki stated he felt staff is moving too fast to adopt the development agreement and requested a better spreadsheet showing money flow for the district. Schumacher stated the following: 1) this is one of the more difficult projects being developed in the Twin Cities; 2) he thanked the developers and consultants for all of their time with weekly meeting being heM for months on this project,' 3) the end project is to get the grants for clean up; and 4) the board should re~nember the developer is payingfor all the property which is a savings to the City. Murzyn asked how soon could the development agreement be ready. Streetar stated it could be ready as SOon as Monday, September 27th and suggested the board have a special meeting prior to the City Council that night, so that the item could also go on the City Council agenda that 'night. Nawrocki recommended Tuesday the 28th instead. After some discussion by the board, the consensus was to have a special EDA meeting at 7pm on Monday, September 27th and the City Council meeting to follow immediately afterwards. Schumacher stated staff would make the arrangements. ADJOURNMENT President, Murzyn, Jr., adjourned the meeting at' 9:14 p.m. Respectfully submitted, Cheryl Bakken Community Development Secretary H:~EDAminutes2004Lg- 15-2004 Spec. P. 53 COLUMBIA HEIGHTS - CITY COUNCIL LETTER Meeting of: November 22, 2004 AGENDA SECTION: Consent ORIGINATING DEPARTMENT: CITY MANAGERS NO: .~ - A.- ~ CITY MANAGER APPROVAL ITEM: Adopt Res. 2004-80 Council BY: Walt Fehst BY ~ ~" ~ ~ meeting date December 2004 DATE: November 16, 2004 DA NO: Background: Thursday, Decelnber 23 m~d Friday, December 24, will be observed as holidays. Monday, December 27th is a regularly scheduled Council meeting date. Recmrnnendation: · Cm~cel the Monday, December 27, 2004 regularly scheduled City Council meeting. Recommended Motion: MOTION: Move to waive the reading of Resolution No. 2004-80, there being ample copies available to the public, MOTION: Move to Adopt Resolution 2004-80, being a Resolution canceling the Monday, December 27, 2004 City of Columbia Heights regular City Council meeting. COUNCIL ACTION: P. 54 RESOLUTION NO. 2004-80 BEING A RESOLUTION CANCELING THE CITY OF COLUMBIA HEIGHTS REGULAR CITY COUNCIL MEETING OF MONDAY, DECEMBER 27, 2004 WHEREAS: The City of Columbia Heights offices are closed on Thursday, December 23, 2004 m~d Friday, December 24, 2004, and; WHEREAS: The City Comxcil has agreed to cancel the regulm' Council meeting scheduled for Monday, December 27, 2004; NOW, THEREFORE, BE IT RESOLVED, that all interested pm-ties be advised of this change. Passed this __ day of November 2004 Offered by: Second by: Roll call: Mayor Juliem~e Wyckoff Attest: Patricia Muscovitz, CMC Deputy City Clerk/Council Secretary P. 55 COLUMBIA HEIGHTS - CITY COUNCIL LETTER Meeting of: November 22, 2004 AGENDA SECTION: Consent ORIGINATING DEPARTMENT: CITY MANAGERS NO: ~ ~/~,t_\ CITY MANAGER APPROVAL ITEM: A Resolution Awarding the Sale of BY: William Elrite BY: $2,000,000 General Obligation DATE: Nove~nber,,~,~ 18, 2004 DATE: Inaprovement Bonds Series 2004A NO: Previously the City Council adopted Ordinm~ce 1476 authorizing the sale of bonds. The second reading of this ordinance was held on October 11, 2004. The sale of these bonds is scheduled for November 22, 2004. The attached resolution authorizes mad awards this sale. At the meeting of November 22, 2004, the city bond counsel will have the numbers related to the sale to fill in on the resolution. The attaclm~ent is a draft of the resolution that will be presented for adoption at that meeting. Reconm~ended Motion: Move to waive the reading of Resolution No. 2004-82, there being ample copies available to the public. Recon2nended Motion: Move to adopt Resolution No. 2004-82, being a resolution authorizing the sale of $2,000,000 general obligation improvement bonds series 12004A. COUNCIL ACTION: P. 56 Extract of Minutes of Meeting of the City Council of the City of Columbia Heights, Anoka County, Minnesota Pursuant to due call and notice thereof, a regular meeting oft he City CounciJ of the City of Columbia Heights, Minnesota, was duly held in the City Hall in the City of Columbia Heights, Minnesota on Monday, Novelnber 22, 2004 commencing at 7:00 o'clock P.M. The following members of the City Cotmcil were present: and the following were absent: The Mayor announced that the next order of business was consideration of the proposals which had been received for the purchase of the City's approximately $ General Obligation Tax Increment Reftmding Bonds, Series 2004A. The City Manager presented a tabulation of the proposals that had been received in the manner specified in the Official Terms of Proposal for the Bonds. The proposals were as set forth in Exhibit A attached to the Resolution. After due consideration of the proposals, Member then introduced the following Resolution and moved its adoption: In accordance with the official Terms of Proposal the following adjustments were made: Principal Amount: Maturities: Minimnm Purchase Price: P. 57 CITY OF COLU3~BIA Ir[EIGHTS, MINNESOTA RESOLUTION NO. 2004-82 A RESOLUTION AWARDING ~ SALE OF GENERAL OBLIGATION TAX INCREMENT REFUNDING BONDS, SERIES 2004A; FIXING THEIR FORM AND SPECIFICATIONS; DIRECTING TltEIR EXECUTION AND DELIVERY; AND PROVIDING FOR THEIR PAYMENT BE IT RESOLVED By the City Council (the "City Council") of the City of Columbia Heights, Anoka County, Mhmesota (the "City") as follows: Section 1. Sale of Bonds. 1.01. It is hereby determined by the City Cotmcil that: (a) the City has duly established the Central Business District Revitalization District (Nos. A3 mhd C7) (the "District") and a tax increment financing plan, as amended (the "TIF Plan"), pursuant to Minnesota Statutes, Sections 469.174 through 469.1799, as amended, and predecessor statutes (the "TIF Act"); (b) the control, authority and operation of the District was transferred to a predecessor of the Columbia Heights Economic Development Authority, a body corporate and politic and a political Subdivision of the State of Mirmesota (the "EDA") by a resolution of the City Council of the City pursuant to Minnesota Statutes, Section 469.094, as amended; (c) the City is authorized by Section 469.178, Subdivision 2, of the TIF Act to issue and sell its general obligations to pay all or a portion of the public development and redevelopment costs (the "Costs") related to the District as identified in a redevelopment plan and tax increment £mancing plan (collectively, the "Plans") for the District; (d) the City is authorized by the TIF Act and Mirmesota Statutes, Chapter 475, as amended (collectively, the "Act"), including Section 475.67, Subdivision 3, of the Act, to issue and sell its general obligation bonds to refund obligations and the interest thereon before the due date of the obligations, if c,,~lS[~m wlth covenants lnade with the ' n,~,ums th,~,~,,~, when deLe, m~.,~u by the CiD' Counc:d to be necessary or desirable for the rednction of debt service cost to the City or for the extension or adjustment of maturities in relation to the resources available for their payment; (e) Section 475.67, Subdivision 13 of the Act permits the sale of crossover refunding obligations by the City prior to the date on which the obligations to be refunded may be called for redemption; (f) it is necessary and desirable to reduce debt service costs of the City and therefore the City will issue its General Obligation Tax Increment Refxtnding Bonds, Series 2004A ("Bonds"), in the original aggregate principal amotmt of $ to refund the City's outstanding General Obligation Tax ~crement Capital Appreciation Bonds of 1990, Series A (the "Prior Bonds"), dated Augx~st 23, 1990, the proceeds of which were used by the City to £mance a portion of the cost of a public redevelopment project (the "Project") in the District; P. 58 (g) Prior Bonds in the accreted principal amount of $ are currently outstanding on the date hereof and are subject to redemption at the option of the City on September 1, 2005; (h) the Mayor and City Manager are authorized and directed to execute a Tax Increment Pledge Agreement, dated on or after December 1, 2004 (the "Pledge Agreement"), between the City and the EDA in substantially the form on file with the City on the date hereof; and (i) pursuant to the Pledge Agreement, the EDA pledges the revenues derived fi'om tax increments generated by the District (the "Pledge Tax Increments") to the payment of principal of, premium, if any, and interest on the Bonds. 1.02. The proposal of (the "Purchaser") to purchase the Bonds described in the Official Terms of Proposal thereof is fonnd and determined to be a reasonable offer and is accepted, the proposal being to purchase the Bonds at a price of $ , for Bonds bearing interest as follows: Date of Interest Date of Interest Maturity Rate Maturity Rate 2006 2008 2007 2009 True interest cost: 1.03. The stun of $ being the amount proposed by the Purchaser in excess of $ will be credited to the Series 2004A Debt Service Fund hereinafter created. The City Finance Director of the City is directed to retain the good faith check of the Purchaser pending completion of the sale of the Bonds, and to return the good faith checks of the unsuccessful proposers forthwith. The Mayor and City Manager are directed to execute a contract with the Purchaser on behalf of the City. 1.04. The City will forthwith issue and sell the Bonds pursuant to the Act in the original aggn'egate principal amount of $. , originally dated December 16, 2004, in minimum denominations of $5,000 each or any integral multiple thereof, nmnbered No. R-l, upward, bearing interest as above set forth, and which mature serially on September 1 in the years and amom~ts as set forth below: Date of Principal Date of Principal Matmdty Amount Maturity Amount 2006 2008 2007 2009 1.05. Optional Redemption. The City may elect on March 1, 2008, and on any day thereafter to prepay Bonds due on or after September 1, 2008. Redemption may be in whole or in part and if in part, at the option of the City and in such mauner as the City will determine. If less than all Bonds of a matm'ity are called for redemption, the City will notify The Depository Trust Company, New York, New York ("DTC") of the particular amount of such maturity to be prepaid. DTC will dete~znine by lot the P. 59 amount of each participant's interest in such matm'ity to be redeemed and each participant will then select by lot the beneficial ownership interests in such matm'ity to be redeemed. Prepayments of the Bonds will be at a price of par plus accrued interest. Section 2. Registration and Payment. 2.01. Registered Fonu. The Bonds will be issued only in fully registered form. The interest thereon and, upon surrender of each Bond, the principal amount thereof, is payable by check or draft issued by the Registrar described herein. 2.02. Dates; Interest Payment Dates. Each Bond will be dated as of theh' date of issuance last interest payment date preceding the date of authentication to which interest on the Bond has been paid or made available for payment, unless (i) the date of authentication is an interest payment date to which interest has been paid or made available for payment, in which case the Bond will be dated as of the date of authentication, or (ii) the date of authentication is prior to the fn-st interest payment date, in which case the Bond will be dated as of the date of original issue. The interest on the Bonds is payable on March 1 and September 1 of each year, co~muencing March 1, 2005, to the registered owners of record thereof as of the close of business on the fffieenth (15th) day of the prior month, whether or not such day is a business day. 2.03. Registration. The City will appoint a bond registrar, transfer agent, authenticating agent and paying agent (the "Registrar"). The effect of registration and the rights and duties of the City and the Registrar with respect thereto are as follows: (a) Register. The Registrar must keep at its principal corporate trust office a bond register in which the Registrar provides for the registration of ownership of Bonds and the registration of transfers and exchanges of Bonds entitled to be registered, transfen'ed or exchanged. (b) Transfer of Bonds. Upon surrender for transfer of a Bond duly endorsed by the registered owner thereof or accompanied by a mitten instrument of transfer, in fonu satisfactory to the Registrar, dnly executed by the registered owner thereof or by an attorney duly authorized by the registered owner in writing, the Registrar will authenticate and deliver, in the name of the designated transferee or transferees, one or more new Bonds of a like aggregate principal amount and maturity, as requested by the transferor. The Registrar may, however, close the books for registration of any transfer after the fffieenth day of the month preceding each interest payment date and tmtil that interest pa.muent date. (c) Exchange of Bonds. When Bonds are snrrendered by the registered owner for exchange the Registrar will authenticate and deliver one or more new Bonds of a lilce aggregate principal amotmt and mattu4ty as requested by the registered owner or the owner's attorney in writing. (d) Cancellation. Bonds sun'endered upon transfer or exchange will be promptly cancelled by the Registrm' and thereafter disposed of as dh'ected by the City. (e) Improper or Unauthorized Transfer. When a Bond is presented to the Registrar for transfer, the Registrar may refuse to transfer the Bond until the Registrar is satisfied that the endorsement on the Bond or separate instrument of transfer is valid and genuine and that the requested transfer is legally authorized. The Registrar will incm' no liability for the refusal, in good faith, to make transfers which it, in its judgment, deems hrtproper or tmanthorized. P. 60 (f) Persons Dee~ned Owners. The City and the Registrar may treat the person in whose name a Bond is registered in the bond register as the absolute owner of the Bond, whether the Bond is overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on the Bond and for all otlier pm'poses, and payments so made to a registered owner or upon the owner's order will be valid and effectual to satisfy and discharge the liability upon the Bond to the extent of the sum or sums so paid. (g) Taxes, Fees and Charges. The Registrar may impose a charge upon the owner thereof for a transfer or exchange of Bonds sufficient to reimburse the Registrar for any tax, fee or other govermnental charge requh'ed to be paid with respect to the transfer or exchange. (h) Mutilated, Lost, Stolen or Destroyed Bonds. If a Bond becomes mutilated or is destroyed, stolen or lost, the Registrar will deliver a new Bond of like amount, number, maturity date and tenor in exchange and substitution for and upon cancellation of the mutilated Bond or in lieu of and in substitution for a Bond destroyed, stolen or lost, upon the payment of the reasonable expenses and charges of the Registrar in connection therewith; and, in the case of a Bond destroyed, stolen or lost, upon filing with the Registrar of evidence satisfactory to it that the Bond was destroyed, stolen or lost, and of the ownership thereof, and upon fumisking to the Registrar an appropriate bond or indemnity in form, substance and amount satisfactory to it and as provided by law, in which both tlie City and the Registrar must be named as obligees. Bonds so smTendered to the Registrar will be cancelled by the Registrar and evidence of such cancellation must be given to the City. If the mutilated, destroyed, stolen or lost Bond has akeady matured or been called for redemption in accordance with its terms it is not necessary to issue a new Bond prior to payment. (i) Redemption. In the event any of the Bonds are called for redemption, notice thereof identifying the Bonds to be redeemed will be given by the Registrar by mailing a copy of the redemption notice by fn'st class mail (postage prepaid) to the registered owner of each Bond to be redeemed at the address shown on the registration books kept by the Registrar and by publishing the notice if requh'ed by law. Failure to give notice by publication or by mail to any registered owner, or any defect therein, will not affect the validity of the proceedings for the redemption of Bonds. Bonds so called for redemption will cease to bear interest after the specified redemption date, provided that the funds for the redemption are on deposit with the place of payment at that time. 2.04. Appointment of Initial Registrar. The City appoints U.S. Bank National Association, Saint Paul, Mirmesota, as the initial Registrar. The Mayor and the City Manager are author/zed to execute and deliver, on behalf of the City, a contract with the Registrar. Upon merger or consolidation of the Registrar with another corporation, if the resulting corporation is a bank or trust company authorized by law to conduct such business, the resulting corporation is authorized to act as successor Registrar. The City agrees to pay the reasonable and customary charges of the Registrar for the services performed. The City reserves the right to remove the Registrar upon 30 days' notice and upon the appointment of a successor Registrar, in which event the predecessor Registrar must deliver all cash and Bonds in its possession to the successor Registrar and must deliver the bond register to the successor Registrar. On or before each principal or interest due date, without further order of this Council, the City Finance Dh'ector must transmit to the Registrar money sufficient for the payment of all principal and interest then due. 2.05. Execution, Authentication and Delivery. The Bonds will be prepared under the direction of the City Manager and executed on behalf of the City by the signatures of the Mayor and the City Manager, provided that those signatures may be printed, en~'aved or lithographed facsimiles of the originals. If an officer whose signatm'e or a facsimile of whose signatm'e appears on the Bonds ceases to be such officer before the delivery of a Bond, such signature or facsimile will nevertheless be vahd and sufficient for all purposes, the same as if the officer had remained in office until delivery. Notwithstanding such execution, a Bond will not be valid or obligatory for any purpose or entitled to any security or benefit under tlfis Resolution unless and until a certificate of authentication on the Bond has been duly executed by the manual signatm'e of an authorized representative of the Registrar. Certificates of authentication on different Bonds need not be signed by the same representative. The executed certificate of authentication on a Bond is conclusive evidence that it has been authenticated and delivered under this Resolution. When the Bonds have been so prepared, executed and authenticated, the City Manager will deliver the same to the Purchaser upon payment of the purchase price in accordance with the contract of sale heretofbre made and executed, and the Purchaser is not obligated to see to the application of the purchase price. 2.06. Tempormw Bonds. The City may elect to deliver in lieu of printed de£mitive Bonds one or more typewritten temporm'y Bonds in substantially the form set forth in Section 3 with such changes as may be necessary to reflect more than one maturity in a single temporary bond. Upon the eXecution and delivery of de£mitive Bonds the temporary Bonds will be exchanged therefor and cancelled. Section 3. Form of Bond. 3.01. The Bonds will be printed or typewritten in substantially the fo~ on the following page. (The remainder of this page is intentionally left blank.) P.-6 2 No. R- UNITED STATES OF AMERICA $ STATE OF MINNESOTA COUNTY OF ANOKA CITY OF COLUMBIA HEIGHTS GENERAL OBLIGATION TAX INCREMENT REFUNDING BOND SERIES 2004A Date of Original Issue Interest Rate Maturity Date CUSIP __% September 1, 20__ December 16, 2004 Registered Owner: Cede & Co. Principal Amount: Dollars The City of Columbia Heights, a duly organized and existing mnnicipal corporation in Anoka County, Minnesota (the "City"), acknowledges itself to be indebted and for value received hereby promises to pay to the Registered Owner specified above or registered assigns, the Principal Amount specified above on the maturity date specified above, with interest thereon from the date hereof at the annual rate specified above, payable March 1 and September 1 in each year, cormnencing March 1, 2005, to the person in whose name this Bond is registered at the close of business on the fifteenth (15th) day (whether or not a business day) of the prior month. The interest hereon and, upon presentation and surrender hereof, the principal hereof are payable in lawful money of the United States of America by check or ch'aft by U.S. Bank National Association, Saint Paul, Minnesota, as Bond Registrar, Paying Agent, Transfer Agent and Authenticating Agent, or its designated successor under the Resolution described herein. For the prompt and full payment of such principal and interest as the same respectively become due, the full faith and credit and taxing powers of the City have been and are hereby irrevocably pledged. The City may elect on March 1, 2008, and on any day thereafter to prepay Bonds due on or after September 1, 2008. Redemption may be in whole or in part and if in part, at the option of the City and in such manner as the City will determine. If less than all Bonds of a maturity are called for redemption, the City will notify The Depository Trust Company, New York, New York ("DTC") of the particular amount of such maturity to be prepaid. DTC will determine by lot the amomnt of each participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. Prepayments of the Bonds will be at a price of par plus accrued interest. This Bond is one of an issue in the aggregate principal amount of $ all of like original issue date and tenor, except as to number, maturity date, redemption privilege, and interest rate, all issued pursuant to a resolution adopted by the City Council on November 22, 2004 (the "Resolution"), for the purpose of providing money to refund the outstanding p~4ncipal mnotmt of certain general obligation bonds of the City, pursuant to and in full confonnity with the home rule charter of the City and the Constitution and laws of the State of Minnesota, including Mhmesota Statutes, Sections 469.174 tlu'ough 469.1799, as amended, and Minnesota Statutes, Chapter 475, as amended, and the principal hereof and interest hereon are payable primarily fi'om tax increments resulting fi'om increases in taxable valuation of real property in the Central Business District Revitalization District (Nos. A3 and C7) in the City (the "District") as set forth in the Resolution to which reference is made for a full statement of rights and powers thereby confen'ed. The P.%3 Columbia Heights Economic Development Authority, a body corporate and politic (the "EDA"), has pledged the tax increments from the District to the City for payment of the principal of and interest dne on the Bonds pursuant to the terms of a Tax Increment Pledge Agreement, dated on or after December 1, 2004, by and between the City and the EDA. The fi.iH faith and credit of the City are irrevocably pledged for payment of this Bond and the City Council has obligated itself to levy ad valorem taxes on all taxable property in the City in the event of any deficiency of tax increments pledged to the payment of the Bonds, which taxes may be levied without lhnitation as to rate or mount. The Bonds of this series are issued only as fi.ally registered Bonds in minimum denominations of $5,000 or any integral multiple thereof of single maturities. As provided in the Resolution and subject to certain limitations set forth therein, this Bond is transferable upon the books of the City at the principal office of the Bond Registrar-, by the registered owner hereof in person or by the owner's attorney duly authorized in wa-iting, upon sm2'ender hereof together with a written instrument of transfer satisfactory to the Bond Registrar, dtdy executed by the registered owner or the owner's attorney; and may also be surrendered in exchange for Bonds of other authorized denominations. Upon such transfer or exchange the City will cause a new Bond or Bonds to be issued in the name of the transferee or registered owner, of the same aggregate principal atnount, bemSng interest at the same rate and matmSng on the same date, subject to reimbursement for any tax, fee or governmental chat-ge required to be paid with respect to such transfer or exchange. The City and the Bond Registrar may deem and treat the person in whose name this Bond is registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose of receiving payment and for all other purposes, and neither the City nor the Bond Registrar will be affected by any notice to the contrary. The City has designated the issue of Bonds of which this Bond forms a part as "qnalified tax exempt obligations" within the meaning of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended (the "Code") relating to disallowance of interest expense for financial institutions and within the $10 million lhnit allowed by the Code for the calendar year 2004. IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts, conditions and things required by the home rule charter of the City and the Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be performed preliminary to and in the issuance of this Bond in order to make it a valid and binding general obligation of the City in accordance with its terms, have been done, do exist, have happened and have been performed as so requh'ed, and that the issuance of this Bond does not cause thellluCut¢uttess' .l_t.._.~_ of the City to ..... -' may ~- cxuceu cunsutuuonm, ~ta[~ito~y or charter lit-nitation of indebtedness. Tlfis Bond is not valid or obligatory for any purpose or entitled to any secm-ity or benefit under the Resolution until the Certificate of Authentication hereon has been executed by the Bond Registrar by manual signature of one of its authorized representatives. IN WITNESS WHEREOF, the City of Colmnbia Heights, Anoka County, Minnesota, by its City Council, has caused this Bond to be executed on its behalf by the facsimile or manual signatures of the Mayor and City Manager and has caused this Bond to be dated as of the date set forth below. P.~64 Dated: December 16, 2004 CITY OF COLUMBIA HEIGHTS, MINNESOTA Its Mayor (Facshnile) (Facshnile) Its City Manager CERTIFICATE OF AUTHENTICATION This is one of the Bonds delivered pursuant to the Resolution mentioned within. U.S. BANK NATIONAL ASSOCIATION By Its Authorized Representative The following abbreviations, when used in the inscription on the face of this Bond, will be construed as though they were written out in full according to applicable laws or regulations: TEN COM -- as tenants UNIF GIFT MIN ACT Custodian in connnon (CusO TEN ENT -- as tenants by entketies under Uniform Gffis or Transfers to Minors (Minor) JT TEN -- as joint tenants with right of survivorship and not as tenants in connnon Act ............ (State) Additional abbreviations may also be used though not in the above list. P. 6 S ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto the within Bond and all fights thereunder, and does hereby hTevocably constitute and appoint attorney to transfer the said Bond on the books kept for registration of the within Bond, with full power of substitution in the premises. Dated: Notice: The assignor's signature to this assigmnent must correspond with the name as it appears upon the face of the within Bond in every particular, without alteration or m~y change ~vhatever. Signature Guaranteed: NOTICE: Signature(s) must be guaranteed by a financial institution that is a member of the Securities Transfer Agent Medallion Program ("STAMP"), the Stock Exchange Medallion Program ("SEMP"), the New York Stock Exchange, Inc. Medallion Signatures Program ("MSP") or other such "signature guarantee program" as may be determined by the Registrar in addition to, or in substitution for, STAMP, SEMP or MSP, all in accordance with the Securities Exchange Act of 1934, as amended. The Bond Registrar will not effect h'ansfer of this Bond unless the information concerning the assignee requested below is provided; Name and Adckess: (Include information for all joint owners if this Bond is held by joint accotmt.) Please insert social security or other identifying number of assignee P. 66 PROVISIONS AS TO REGISTRATION The ownership of the p~4ncipal of and interest on the within Bond has been registered on the books of the Registrar in the name of the person last noted below. Date of Registration Registered Owner Signature of Officer of the Registrar December 16, 2004 Cede & Co. Federal ID # 13-2555119 3.02. The City Manager is directed to obtain a copy of the proposed approving legal opinion of Kennedy & Graven, Chartered, Minneapolis, Minnesota, which is to be complete except as to dating thereof and will cause the opinion to be printed on or accompany each Bond. Section 4. Bonds; SecuriW; Escrow. 4.01. Funds and Accounts. For the convenience and proper administration of the moneys to be bon-owed and repaid on the Bonds and the Prior Bonds (as defmed in the resolution providing for the issuance and sale of the Bonds), and to provide adequate and specific secmSty for the Purchaser and holders fi'om thne to t/me of the Bonds and Prior Bonds, there is hereby created a special fund to be designated the Tax Increment Refunding Bonds, Series 2004A Debt Service Fund (the "Series 2004A Debt Service Fund") to be administered and maintained by the Finance Director as a bookkeeping account separate and apart from all other funds maintained in the official financial records of the City. The Fund will be maintained in the manner herein specified until all of the Prior Bonds have been paid and until all of the Bonds and the interest thereon will have been fully paid. There will be maintained in the Fund two separate accounts, to be designated the Escrow Account and Debt Service Account. (a) Escrow Account. The Escrow Account will be maintained as an Escrow Account (the "Escrow Accotmt") with U.S. Bank National Association in St. Paul, Minnesota, which is a suitable financial institution within the State, whose deposits are insured by the Federal Deposit Insttrance Corporation, whose combined capital and surplus is not less than $500,000 and said financial institution is hereby designated escrow agent (the "Escrow Agent") for the Escrow Account. All proceeds of the sale of the Bonds will be received by the Escrow Agent and applied to fund the Escrow Account or to pay costs of issuing the Bonds. Proceeds of the Bonds not used to pay costs of issuance are hereby hTevocably pledged and appropriated to the Escrow Account, together with all investment earnings thereon. The Escrow Account will be invested in securities maturing or callable at the option of the holder on such dates and bearing interest at snch rates as will be required to provide sufficient funds, together with any cash or other funds retained in the Escrow Account, to pay when due the interest to accrue on each Bond to and including September 1, 2005 (the "Redemption Date"), and to pay when due on the Redemption Date the principal amount of each of the Prior Bonds then outstanding. From the Escrow Account there will be paid (i) all interest paid on, or to be paid on, or to accrue on, the Bonds to and including the Redemption Date, and (ii) the pl4ncipal of the Prior Bonds due by reason of redemption on the Redemption Date. The Escrow Account will be h-revocably appropriated to the payment of the principal of and interest on the Bonds until the proceeds of the Bonds therein are applied to prepayment of the Prior Bonds. The moneys in the Escrow Account will be used solely for the purposes herein set forth and for no other purpose, except that any surplus in the Escrow Account may be remitted to the City, all in accordance with the P. 67 Escrow Agreement (hereafter defmed) by and between the City and the Escrow Agent. Any moneys remitted to the City upon termination of the Escrow Agreement will be deposited in the Debt Service Account. (b) Debt Service Account. To the Debt Service Account there is hereby pledged and flTevocably appropriated and there will be credited: (i) any balance remitted to the City upon the termination of the Escrow Agreement; (ii) any balance remaining on September 2, 2005, in the Debt Service Fund created by the City Council resolution authorizing the issuance and sale of the Refunded Bonds (Prior Resolution); (iii) any collections of all taxes hereafter levied for the payment of the Bonds and interest thereon; (iv) all investment earnings on funds in the Debt Service Account; (v) after the Redemption Date, tax increments resulting fi'om increases in the taxable value of real property in a tax increment financing district in the City; (vi) accrued interest (if any) received upon delivery of the Bonds to the extent not required to fund the Escrow Account; and (vii) any and all other moneys which are properly available and are appropriated by the City Council to the Debt Service Account. The amount of any surplus remaining in the Debt Service Account when the Bonds and interest thereon are paid will be used as provided in Section 475.61, Subdivision 4 of the Act. 4.02. Findings. It is hereby found and detennined that based upon information presently available from the City's financial advisers, the issuance of the Bonds will result in a reduction of debt service cost to the City on the Prior Bonds, such that the present value of such debt service or interest cost savings (the "Reduction") is % of the debt service on the Prior Bonds. The Reduction, after the inclusion of all authorized expenses of refunding in the computation of the effective interest rate on the Bonds, is adequate to authorize the issuance of the Bonds as provided by Minnesota Statutes, Section 475.67, Subdivisions 12 and 13. 4.03. The moneys in the Debt Service Account will be used solely to pay the principal of and interest on the Bonds or any other bonds hereafter issued and made payable from the Fund. No portion of the proceeds of the Bonds will be used directly or indirectly to acquire higher yielding investments or to replace fimds which were used dh'ectly or indirectly to acquire higher yielding investments, except (i) for a reasonable temporary period until such proceeds are needed for the purpose for which the Bonds were issued, and (ii) in addition to the above, in an amount not greater than the lesser of five percent of the proceeds of the Bonds or $100,000. To this effect, any proceeds of the Bonds and any stuns from time to time held in the Fund (or any other City account which will be used to pay principal and interest to become due on the Bonds) in excess of amounts which under the applicable federal arbitrage regulations may be invested without regard as to yield will not be invested at a yield in excess of the applicable yield restrictions imposed by the arbi~-age regulations on such investments after taking into account any applicable temporary periods or minor portion made available under the federal arbitrage regulations. In addition, the proceeds of the Bonds and money in the Ftmd will not be invested in obligations or deposits issued by, guaranteed by or insured by the United States or any agency or instnnuentality thereof if and to the extent that such investment would cause the Bonds to be federally guaranteed within the meaning of Section 149(b) of tlie Internal Revenue Code of 1986, as amended (the "Code"). 4.04. General Obligation Pledge. For the prompt and full payment of the principal and interest on the Bonds, as the same respectively become due, the full faith, credit and taxing powers of the City will be and are hereby irrevocably pledged. If the balance in the Escrow Account or Debt Service Account is ever insufficient to pay all principal and interest then due on the Bonds and any other bonds payable therefrom, the deficiency will be promptly paid out of monies in the general fund of the City which are available for such purpose, and such general fm~d may be reimbtu'sed with or without interest from the Escrow Account or Debt Service Account when a sufficient balance is available therein. IS. k8 4.05. It is determined that estimated collection of tax increments for the payment of p~Sncipal and interest on the Bonds after the Redemption Date will produce at least five percent in excess of the amount needed to meet when due, the principal and interest payanents on the Bonds matra'lng after the Redemption Date, and that no tax levy is needed at this time. 4.06. Filing. The City Manager is authorized and directed to frle a certified copy of this resolution with the Manager of Propelq:y Records and Taxation of Anoka Cotmty and to obtain the certificate required by Section 475.63 of the Act. 4.07. Prior Resolution Pledges. The pledges and covenants of the City made by the Prior Resolution relating to the tax increments and hnprovements financed by the Bonds and the Prior Bonds are restated and confmned in all respects. The provisions of the Prior Resolution are hereby supplemented to the extent necessary to give full effect to the provisions of this resolution. Section 5. Refunding; Findings; Redemption of Refunded Bonds. 5.01. As of the date of delivery of and payment for the Bonds proceeds of the Bonds, in the mnount of $ plus accrued interest on the Bonds less necessary expenses of the issuance of the Bonds (Proceeds), together with other funds (Funds) in the amount of $ are hereby pledged and appropriated and will be deposited in the Escrow Account. 5.02. It is hereby found and determined that the Proceeds and Funds available and appropriated to the Escrow Account will be sufficient, together with the permitted emrfings on the investment of the Escrow Account, to pay principal of and interest on the Bonds through the Redemption Date, and to pay at maturity or redemption all of the principal of and redemption premium (if any) on the Refunded Bonds. 5.03. Securities purchased lkom the monies in the Escrow Account will be limited to securities specified in Section 475.67, Subdivision 8 of the Act. Springsted Incorporated, as agent for the City of Columbia Heights is hereby authorized and directed to purchase for and on behalf of the City of Columbia Heights and in its name, appropriate securities to fund the Escrow Account. Upon the issuance and delivery of the Bonds, the securities so purchased will be deposited with the Escrow Agent and held pursuant to the tenns of the Escrow Agreement and the Resolution. 5.04. The Refunded Bonds maturing on September 1, 2006 and thereafter will be redeemed and prepaid on the Redemption Date. The Refunded Bonds w~ be redeemed and prepaid in accordance with their terms and in accordance with the terms and conditions set forth in the form of Notice of Call for Redemption attached hereto as Attachment A which terms and conditions are hereby approved and incorporated herein by reference. The Registrar for the Refunded Bonds is authorized and directed to send a copy of the Notice of Redemption to each registered holder of the Reftmded Bonds. 5.05. Escrow Agreement. On or prior to the delivery of the Refimding Bonds, the Mayor and the City Manager are hereby authorized and directed to execute on behalf of the City an escrow agreement (Escrow Agreement) with the Escrow Agent in substantially the fmTn now on file with the City Manager. All essential terms and conditions of the Escrow Agreement including payment by the City of reasonable charges for the services of the Escrow Agent, are hereby approved and adopted and made a part of this resolution, and the City covenants that it will promptly er_force all provisions thereof in the event of default theretmder by t_he Escrow Agent. Section 6 Authentication of Transcript. 6.01. The officers of the City are authorized and directed to prepare and fnmish to the Purchaser and to Kermedy & Graven, Chartered, as bond counsel, certified copies of proceedings and records of the City relating to the Bonds and to the financial condition and affairs of the City, and such other certificates, affidavits and transcripts as may be requh'ed to show the facts within thek knowledge or as shown by the books and records in their custody and under thek control, relating to the validity and marketability of the Bonds, and such instruments, including any heretofore fm-nished, may be deemed representations of the City as to the facts stated therein. 6.02. The Mayor, City Manager and Finance Director are hereby authorized and directed to certify that they have examined the Official Statement prepared and circulated in connection with the issuance and sale of the Bonds and that to the best of their knowledge and belief the Official Statement is a complete and accurate representation of the facts and representations made therein as of the date of the Official Statement. 6.03. The City authorizes the Purchaser to forward the amount of Bond proceeds allocable to the payment of issuance expenses (other than amounts payable to Kennedy & Graven, Chartered, as bond counsel) to U.S. Trust Company, Minneapolis, Minnesota on the closing date for fm-ther distribution as directed by the City's £mancial advisor, Ehlers & Associates, Inc. Section 7. Tax Covenants. 7.01. The City covenants and agrees with the holders from time to time of the Bonds that it will not take or permit to be taken by any of its officers, employees or agents any action which would cause the interest on the Bonds to become subject to taxation under the Internal Revenue Code of 1986, as amended (the "Code"), and the Treasury Regulations prmnulgated thereunder, in effect at the time of such actions, and that it will take or cause its officers, employees or agents to take, all affirmative action within its power that may be necessary to ensure that such interest will not become subject to taxation under the Code and applicable Treasury Regulations, as presently existing or as hereafter amended and made applicable to the Bonds. 7.02. (a) The City will comply with requirements necessary under the Code to establish and maintain the exclusion from gross income of the interest on the Bonds trader Section 103 of the Code, including without limitation requirements relating to temporary periods for invest2nents, limitations on amounts invested at a yield greater than the yield on the Bonds, and the rebate of excess investment earnings to the United States ~ th, Bonds tLogether with other obligations reasonably expected to be issued m ~,,1,,,dar year 2004) exceed the small-issuer exception amount of $5,000,000. Co) For purposes of qualifying for the small issuer exception to the federal arbitrage rebate requirements, the City finds, determines and declares that the aggregate face amount of all tax-exempt bonds (other than private activity bonds) issued by the City (and all subordinate entities of the City) during the calendar year in which the Bonds are issued and outstanding at one thne is not reasonably expected to exceed $5,000,000, all within the meaning of Section 148(f)(4)(C) of the Code. Furthermore: (i) each of the Prior Bonds was issued as part of an issue which was treated as meeting the rebate requirements by reason of the exception roi' govermnental units issning $5,000,000 or less of bonds; the average maturity of the Bonds does not exceed the remaining average maturity of the Prior Bonds; and P. 70 (iii) no maturity of the Bonds has a maturity date which is later than the date which is 30 years after the date the original bonds were issued. 7.03. The City fm-ther covenants not to use the proceeds of the Bonds or to cause or pe~mnit them or any of them to be used, in such a manner as to cause the Bonds to be or become "private activity bonds" within the meaning of Sections 103 and 141 ttn'ough 150 of the Code. 7.04. In order to qualify the Bonds as "qualified tax-exempt obligations" within the meaning of Section 265(b)(3) of the Code, the City makes the following factual statements and representations: (a) the Bonds m'e not "private activity bonds" as defined in Section 141 of the Code; (b) the City hereby designates the Bonds as "qualified tax-exempt obligations" for purposes of Section 265(b)(3) of the Code; (c) the reasonably anticipated amount of tax-exempt obligations (other than private activity bonds that are not qualified 501(c)(3) bonds) which will be issued by the City (and all subordinate entities of the City) during calendar year 2004 will not exceed $10,000,000; (d) not more than $10,000,000 of obligations issued by the City during calendar year 2004 have been designated for pm-poses of Section 265(b)(3) of the Code; and (e) the Bonds have a maturity date which is not later than the date which is 30 years after the date the original tax-exempt obligation related to the Prior Bonds was issued. 7.05. The City will use its best efforts to comply with any federal procedural requirements which may apply in order to effectuate the designations made by this section. Section 8. Book-Entry System; Limited Obligation of City. 8.01. The Bonds will be initially issued in the form of a separate single typewritten or printed fully registered Bond tbr each of the maturities set forth in Section 1.03 hereof. Upon initial issuance, the ownership of each Bond will be registered in the registration books kept by the Bond Registrar in the nm]ne of Cede & Co., as nominee for The Depository Trust Company, New York, New York, and its successors and assigns ("DTC"). Except as provided in this sect/on, all of the outstanding Bonds will be registered in the registration books kept by the Bond Registrar in the name of Cede & Co., as nominee of DTC. 8.02. With respect to Bonds registered in the registration books kept by the Bond Registrar in the name of Cede & Co., as nonfinee of DTC, the City, the Bond Registrar and the Paying Agent will have no responsibility or obligation to any broker dealers, banks and other f'mancial institutions fi'om time to time for which DTC holds Bonds as secm-ities depository ("Participants") or to any other person on behalf of which a Participant holds an interest in the Bonds, including but not limited to any responsibility or obligation with respect to (i) the accm'acy of the records of DTC, Cede & Co. or any Participant with respect to any ownership interest in the Bonds, (ii) the delivery to any Participant or any other person (other than a registered ovcner of Bonds, as shown by the registration books kept by the Bond Registrar,) of any notice with respect to the Bonds, including any notice of redemption, or (iii) the payment to any Participant or any other person, other than a registered owner of Bonds, of any amount with respect to principal of, premimrt, if any, or interest on the Bonds. The City, the Bond Registrar and the Paying Agent may treat and consider the person in whose name each Bond is registered in the registration books kept by the Bond Registrar as the 1.4 P. 71 holder and absolute owner of such Bond fol' the ptu-pose of payment of principal, premium and interest with respect to such Bond, for the propose of registering transfers with respect to such Bonds, and for all other purposes. The Paying Agent will pay all principal of, premium, if any, and interest on the Bonds only to or on the order of the respective registered owners, as shown in the registration books kept by the Bond Registrar, and all such payments will be valid and effectual to fully satisfy and discharge the City's obligations with respect to payment of principal of, premitm~, if any, or interest on the Bonds to the extent of the sum or stuns so paid. No person other than a registered owner of Bonds, as shown in the registq'ation books kept by the Bond Registrar, will receive a certificated Bond evidencing the obligation of this resolution. Upon delivery by DTC to the City Manager of a mitten notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., the words "Cede & Co.," will refer to such new nominee of DTC; and upon receipt of such a notice, the City Manager will promptly deliver a copy of the same to the Bond Registrar and Paying Agent. 8.03. Representation Letter. The City has heretofore executed and delivered to DTC a Blanket Issuer Letter of Representations (the "Representation Letter") which shall govern payment of principal of, premimn, if any, and interest on the Bonds and notices with respect to the Bonds. Any Paying Agent or Bond Registrar subsequently appointed by the City with respect to the Bonds will agu'ee to take all action necessary for all representations of the City in the Representation letter with respect to the Bond Registrar and Paying Agent, respectively, to be complied with at all times. 8.04. Transfers Outside Book-Entry System. In the event the City, by resolution of the City Council, dete~n-nines that it is in the best interests of the persons having beneficial interests in the Bonds that they be able to obtain Bond certificates, the City will notify DTC, wherenpon DTC will notify the Participants, of the availability through DTC of Bond certificates. In such event the City will issue, transfer and exchange Bond certificates as requested by DTC and any other registered owners in accordance with the provisions of this Resolution. DTC may determine to discontinue providing its services with respect to the Bonds at any time by giving notice to the City and discharging its responsibilities with respect thereto under applicable law. In such event, if no successor securities depository is appointed, the City will issue and the Bond Registrar will authenticate Bond certificates in accordance with this resolntion and the provisions hereof will apply to the transfer, exchange and method of payment thereof. 8.05. Payments to Cede & Co. Notwithstanding any other provision of this Resolution to the contral% so long as a Bond is registered in the name of Cede & Co., as nominee of DTC, payments with respect to principal of, premium, if any, and interest on the Bond and notices with respect to the Bond will be made and given, respectively in the manner provided in DTC's Operational An-angements, as set forth in the Representation Letter. Section 9. Defeasance. When all Bonds and all interest thereon, have been discharged as provided in this section, all pledges, covenants .and other rights gu'anted by this resolution to the holders of the Bonds will cease, except that the pledge of the frdl faith and credit of the City for the prompt and full payment of the principal of and interest on the Bonds will remain in full force and effect. The City may discharge all Bonds which are due on any date by depositing with the Registrar on or before that date a sum sufficient for the payment thereof in full. If any Bond should not be paid when due, it may nevertheless be discharged by depositing with the Registrar a sum sufficient for the payment thereof in full with interest accrued to the date of such deposit. Section 10. Continuing Disclostrre. 10.01. In order to qualify the Bonds for limited continuing disclosure under paragu'aph (d)(2) of Securities and Exchange Commission Rules, Section 15c2-12 (the "SEC Rule"), the City makes the P. 72 following factual statement and representation: As of the date of delivery of the Bonds, the City will not be an obligated person (as defined in paragraph (f) of the SEC Rule) with respect to more than $10,000,000 in aggregate amount of outstanding municipal securities, including the Bonds and excluding municipal securities that were exempt from the SEC Rule pursuant to paragraph (d)(1) thereof. 10.02. The City hereby covenants and agrees that it will comply with and carry out all of the provisions of the Continning Disclosure Certificate. Notwitl~standing any other provision of this Resolution, failure of the City to comply with the Continuing Disclosure Certificate is not to be considered an event of defanlt with respect to the Bonds; however, any Bondholder may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the City to comply with its obligations under this section. 10.03. "Continuing Disclosure Certificate" means that certain Continuing Disclosure Certificate executed by the Mayor and City Manager and dated the date of issuance and delivery of the Bonds, as originally executed and as it may be amended fi'om time to thue in accordance with the terms thereof. (The remainder of this page is intentionally left blank.) Passed and adopted this 22nd day of November, 2004. CITY OF COLUMBIA HEIGHTS, MINNESOTA Attest: Its Mayor Its City Manager P. 74 The motion for the adoption of the foregoing resolution was duly seconded by Member , and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. P. 75 STATE OF MINNESOTA ) ) COUNTY OF ANOKA ) SS. ) CITY OF COLUMBIA HEIGHTS ) I, the undersigned, being the duly qualified and acting Manager of the City of Columbia Heights, Anoka County, Minnesota, do hereby certify that I have carefully compared the attached and foregoing extract of minutes of a regular meeting of the City Council of the City of Columbia Heights held on November 22, 2004 with the original minutes on Erie in my office and the extract is a full, true and correct copy of the minutes insofar as they relate to the issuance and sale of $ General Obligation Tax Increment Refunding Bonds, Series 2004A of the City. WITNESS My hand officially as such City Manager and the corporate seal of the City this day of ,2004. City Manager City of Columbia Heights, Minnesota P. 76 STATE OF MINNESOTA COUNTY OF ANOKA MANAGER OF PROPERTY RECORDS AND TAXATION'S CERTIFICATE AS TO REGiSTP~_TION WHERE NO AD VALOREM TAX LEVY I, the undersigned Manager of Property Records and Taxation of Anoka County, Minnesota, hereby certify that a resolution adopted by the City Conncil of the City of Columbia Heights, Minnesota, on November 22, 2004, relating to General Obligation Tax Increment Refunding Bonds, Series 2004A, in the amount of $ ., dated December 16, 2004, has been fried in my office and said obligations have been registered on the register of obligations in my office. WITNESS My hand and official seal this __ day of ., 2004. (SE t) Manager of Property Records and Taxation Anoka, County, Minnesota Deputy P. 77 EXltlBIT A BID TABULATION P. 78 EXI-IIIlIT B NOTICE OF CALL FOR REDEMPTION $2,399,720.75 GENERAL OBLIGATION TAX INCREMENT CAPITAL APPRECIATION BONDS OF 1990, SERIES A CITY OF COLUMBIA HEIGHTS ANOICA COUNTY, MINNESOTA NOTICE IS HEREBY GIVEN that, by order of the City Council of the City of Columbia Heights, Anoka County, Minnesota, there have been called for redemption and prepayment on SEPTEMBER 1, 2005 all outstanding bonds of the City designated as General Obligation Tax Increment Capital Appreciation Bonds of 1990, Series A (the "Bonds"), dated August 23, 1990, having a stated maturity date of September 1, in the years 2006 through 2009, both inclusive, totaling $953,903.45 in principal amount, and with the following CUSIP numbers: YearofMaturity Princ~alAmount 2006 $301,281.60 2007 280,977.20 2008 259,780.40 2009 111,864.25 CUSIP The bonds are being called at a price of par plus accrued interest to September 1, 2005, on which date all interest on said bonds will cease to accrue. Holders of the bonds hereby called for redemption are requested to present their bonds for payment at the main office of Wells Fargo Bank, National Association, in the City of Minneapolis, Minnesota (fonnerly known as Norwest Bank Minnesota, National Association), on or before September 1, 2005, at the following address: Wells Fargo Bank, National Association Attention: Corporate Trust Operations 255 Second Avenue South Minneapolis, MN 55479-0113 hnportant Notice: In compliance with the Economic Growth and Tax Relief Reconciliation Act of 2001, federal backup withholding tax will be withheld at the applicable backup withholding rate in effect at the thne the payment by the redeeming institutions if they are not provided with yom' social security nmnber or federal employer identification number, properly certified. This requirement is fulfilled by snbmitting a W-9 ForTh, which may be obtained at a bank or other £mancial institution. The Registrar will not be responsible for the selection or use of the CUSIP number, nor is any representation made as to the correctness indicated in the Redemption Notice or on any Bond. It is included solely for convenience of the Holders. P. 79 Dated: December 16, 2004. BY ORDER OF THE CITY COUNCIL OF THE CITY OF COLUMBIA HEIGHTS, MINNESOTA By /s/ Walter Fehst City Manager 255658vI(BWJ) CL162-27 P. 80 TAX INCREMENT PLEDGE AGREEMENT By and Between COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY and CITY OF COLUMBIA HEIGHTS, MINNESOTA Relating to: $ City of Columbia Heights, Minnesota General Obligation Tax Increment Refunding Bonds Series 2004A This document drafted by: KENNEDY & GRAVEN, CHARTERED (BWJ) 470 U.S. Bank Plaza 200 South Sixth Street Minneapolis, MN 55402 612-337-9300 P. 81 THIS TAX INCREMENT PLEDGE AGREEMENT (this "Agreement") is made and entered into as of the 16th day of December, 2004, by and between the CITY OF COLUMBIA HEIGHTS, a home rule charter city and a political subdivision of the State of Mim~esota (the "City"), and the COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY, a body corporate and politic and political subdivision of the State of Minnesota (the "EDA"). RECITALS WHEREAS, the EDA has been established pursuant to Minnesota Statutes, Sections 469.001 through 469.047 and 469.090 through 469.108, as amended (the "EDA Act"), to promote development and redevelopment within the City of Columbia Heights, a home rule charter city and a political subdivision of the State of Minnesota (the "City"); and WHEREAS, the EDA's goals include recognizing the practical impedhuents to development and redevelopment in areas of the community which are fully developed and offering public assistance for projects which advance its goals; and WHEREAS, the EDA further recognizes that there are special development and redevelopment challenges with regard to property in certain areas of the commtmity which contain institutional uses which are beyond theh' useful life and which are in need of redevelopment; and WHEREAS, the City Council of the City previously established the Central Business District Revitalization District (Nos. A3 and C7) (the "TIF District") in accordance with Minnesota Statutes, Sections 469.174 through 469.1799, as amended (the "TIF Act"); and WHEREAS, by Resolution No. 90-38, adopted by the City Council of the City on July 23, 1990 (the "Prior Bonds Resolution"), the City authorized the predecessor of the EDA to direct application and use of the tax increment revenues derived from the TIF District; and WHEREAS, in order to help f'mance a portion of the cost of a public redevelopment project (the"Project") within the TIF District, the City previously issued, pm-suant to Section 469.178, subdivision 2, as amended, and Minnesota Statutes, Chapter 475, as amended (collectively, the "Act"), the City's General Obligation Tax Increment Capital Appreciation Bonds of 1990, Series A,.dated August 23, 1990 (the "Prior Bonds"); and WHEREAS, the Prior Bonds were issued pursuant to the Prior Bonds Resolutions of the City Council of ,~,_.~[:, and WHEREAS, pursuant to authority conferred to the City by the Act, the City has agreed to refund the Prior Bonds through the issuance of the City's General Obligation Tax Increment Refunding Bonds, Series 2004A, in the original aggregate principal amount of $ (the "Bonds"); and WHEREAS, on November 22, 2004, pursuant to a resolution of the City Council of the City (the "Bond Resolution") of the City Council of the City, the City has authorized the issuance, sale and delivery of the Bonds and the City has awarded the Bonds to the original pm'chaser thereof; and WHEREAS, pursuant to a resolution of the Board of Commissioners of the EDA (the "EDA Resolution") and the terms of this Pledge A~m'eement, the EDA has agreed to pledge the tax increment revenues derived from the District to the City for the payment of the principal of, premium, if any, and interest on the Bonds; and P. 82 WHEREAS, pm'suant to Section 469.178, Subdivision 2, of the TIF Act, any agreement to pledge tax increment revenues must be made by written agreement by and between EDA and the City and must be filed with the Manager of Property Records and Taxation of Anoka County, Minnesota (the "County"); NOW, THEREFORE, the City and EDA mutually agree to the following: (1) thereof. CiW Bonds. The City will issue, sell, and deliver the Bonds to the original purchaser (2) Use of Bond Proceeds. The proceeds from the sale of the Prior Bonds and interest earning thereon were be made available to the City or the EDA to pay or reimburse certain public redevelopment costs paid, incurred, or to be paid or incurred by the City or the EDA in connection with the Project. The Bonds are being issued to refund the Prior Bonds. (3) Pledge of Tax Increment. The EDA hereby Pledges to the payment of the principal of, preminm, if any, and interest on the Bonds the tax increments derived fi'om property in the TIF District and received by the EDA, which pledge is in an mnotmt sufficient to pay 105% of such principal and interest due on the Bonds fi'om time to time (the "Pledged Tax Increment"). (4) Transfer of Funds. Not less than three (3) business days prior to each debt service payment date for the Bonds, there shall be transferred fi'om the tax increment account for the TIF District to the debt service fund maintained by the City for the payment of the Bonds (the "Series 2004A Debt Service Fund") an amount of Pledged Tax Increment which when taken together with amounts akeady on deposit in such Series 2004A Debt Service Fund, is equal to the principal of and interest on the Bonds to become due on the subject payment date. Any Pledged Tax Increment in excess of 105% of the principal and interest due with respect to the Bonds on any payment date may be retained by EDA in the tax increment accotmt for the TIF District and applied to any public redevelopment costs of the TIF District in accordance with the TIF Act and Minnesota law. (5) EDA use of Pledged Tax ~crement. PariW Uses. Without regard to anything in this Agreement to the contrary, Pledged Tax Increment shall be available (at the EDA's option on a parity, superior or subordinate basis) to pay principal of and interest on both the Bonds and any other obligations issued by the City, EDA or any other public body to £mance public redevelopment costs paid or incm'red by EDA or the City in the TIF District. The EDA reserves the right to release all or any portion of Pledged Tax Increment from the pledge under this Agreement (including without limitation the release of Pledged Tax Increment from any specific parcel within the TiF District) to the extent permitted by law, provided that in no event may EDA reduce the pledge of Pledged Tax Increment such that Pledged Tax Increment is reasonably expected to pay less than 20 percent of principal of and interest on the Bonds. (6) Filing with Hennepin County. An executed copy of this Agreement shall be filed with the Manager of Property Records and Taxation of the County pursuant to the requirement contained in Section 469.178, Subdivision 2 of the TIF Act. (7) Governing Law. This Agreement shall be governed by the laws of the State of Minnesota. (8) Term of Agreement. This Agreement shall remain in fall force and effect from the date of execution of this Agreement until such time as no Bonds are outstanding. :P. 83 (9) Counterparts. This Agreement may be executed in any number of counterparts, all of which, taken together, shall constitute one and the same instrument, and any of the parties hereto may execute this Agreement by signing any such counterpart. (10) Time of Essence. Th2e is of the essence of this Agreement and ail dates and time periods specified herein or therein shall be strictly observed. (11) Gender and Number. Words used in this indicating gender or number shall be read as context may require. (12) Captions. The headings or captions of the gn-ticles, sections, paragraphs, and subdivisions of this Agreement are for convenience of reference only, are not to be construed a part of this Agreement or thereof, and shall not be construed as affecting the content of any such Article, section, paragraph or subdivision. (13) Negotiated Docm?aent. This Agreement has been negotiated by the parties with fi_ill benefit of counsel and should not be construed against either party as author. (14) Severabilit¥. In case any one or more of the covenants, agn'eements, terms or provisions in this Agreement shall be invalid, illegal or unenforceable in any respect, the validity of the remaining covenants, agreements, terms or provisions shall in no way be affected, prejudiced or disturbed thereby, and to this end the provisions of this Ageement are declared to be severable. (14) Entire A~eement. This Agreement represents the entire agreement between the parties concerning the subject matter of this Agreement, and all oral discussions and prior agreements m'e merged herein. (The remainder of this page is intentionally left blank.) P. 84 IN WITNESS WHEREOF, the City and EDA have caused this Agreement to be duly executed on theh' behalf and their seals to be hereunto affixed and such signatm'es and seals to be attested, as of the day and year £rrst above written. CITY OF COLUMBIA HEIGHTS, MINNESOTA By Its Mayor By Its City Manager The foregoing instrument as acknowledged before me this __ day of ,2004, by Julienne Wyckoff, Mayor of the City of Columbia Heights, a home rule charter city and a political subdivision of the State of Mirmesota, on behalf of the City of Columbia Heights, Minnesota. Notary Public The foregoing instrument as acknowledged before me this __ day of ,2004, by Walter Fehst, City Manager of the City of Columbia Heights, a home rule charter city and a political subdivision of the State of Minnesota, on behalf of the City of Columbia Heights, Minnesota. Notary Public (City Signature Page to Tax Increment Pledge Agreement) P. 85 COLUMBIA HF, IGHTS ECONOMIC DEVELOPMENT AUTHORITY By. Its President By Its Executive Director The foregoing instrument as acknowledged before me this __ day of ., 2004, by , President of the Colmnbia Heights Economic Development Authority, a public body corporate and politic under the laws of Mim~esota, on behalf of the Colm2bia Heights Economic Development Authority. Notm'y Public The foregoing instrument as acknowledged before me this __ day of ., 2004, by ., Executive Director of the Columbia Heights Economic Development Authority, a public body corporate and politic under the laws of Minnesota, on behalf of the Columbia Heights Economic Development Authority. Notary Public (EDA Signatm'e Page to Tax Increment Pledge Agreement) P. 86 STATE OF MINNESOTA MANAGER OF PROPERTY RECORDS AND TAXATION'S COUNTY OF ANOICA CERTIFICATE I, the undersi~oned Manager of Property Records and Taxation of Anoka Cotmty, Minnesota, hereby certify that a Tax Increment Pledge Agreement by and between the City of Columbia Heights, Minnesota and the Columbia Heights Economic Development Authority, relating to the City of Columbia Heights $ General Obligation Tax Increment Refunding Bonds, Series 2004A, has been filed in my office. No tax levy is required at this time. WITNESS my hand and official seal this __ day of ., 2004. (SEA ) Manager of Property Records and Taxation Anoka County, Minnesota By. Deputy P. 87 Extract of Minntes of Meeting of the Bom'd of Commissioners of the Columbia Heights Economic Development Authority Pursuant to due call and notice thereof, a re.dar meeting of the Bom'd of Colmuissioners of the Columbia Heights Economic Development Authority (the "Authority"), was duly held in the City Hall in the City of Columbia Heights on November 22, 2004, cormuencing at 7:00 o'clock P.M. The following Commissioners were present: and the following were absent: The President of the Bom'd of Commissioners annotmced that the next order of business was consideration of a resolution approving the form of a Tax Increment Pledge Agn'eement and the pledge of the tax increments derived from Tax Increment District known as the Central Business District Revitalization District (Nos. A3 and C7) in the City to the payment of the City of Colm_nbia Heights General Obligation Tax Increment Refunding Bonds, Series 2004A. After due consideration of the proposals, Com2nissioner then introduced the following Resolution and moved its adoption: P. 88 EDA RESOLUTION NO. RESOLUTION AUTHORIZING EXECUTION OF A TAX INCREMENT PLEDGE AGREE1VIENT XNITH THE CITY OF COLUMBIA HEIGHTS, MINNESOTA RELATING TO THE GENERAL OBLIGATION TAX INCREMENT REFUNDING BONDS, SERIES 2004A OF THE CITY OF COLUMBIA HEIGHTS, MINNESOTA BE IT RESOLVED by the Board of Commissioners (the "Board") of the Columbia Heights Economic Development Authority, a body corporate and politic and a political subdivision of the State of Minnesota ("EDA"), as follows: WHEREAS, the EDA has been established pursuant to Minnesota Statutes, Sections 469.001 through 469.047 and 469.090 through 469.108, as amended (the "EDA Act"), to promote development and redevelopment within the City of Columbia Heights, a home rule charter city and a political subdivision of the State of Minnesota (the "City"); and WHEREAS, the EDA's goals include recognizing the practical hnpediments to development and redevelopment in areas of the community which are killy developed and offering public assistance for projects which advance its goals; and WHEREAS, the EDA further recognizes that there are special development and redevelopment challenges with regard to property in certain areas of tlie cmmnunity which contain institutional uses which are beyond their useful life and which are in need of redevelopment or improvement; and WHEREAS, by Resolution No. __., adopted by the City Council of the City on August 11, 1980, the City established Tax Increment District known as the Central Business District Revitalization District (Nos. A3 and C7) (the "TIF District") in accordance with Minnesota Statutes, Sections 469.174 through 469.1799, as amended (the "TIF Act"); and WHEREAS, by Resolution No. 90-38, adopted by the City Council of the City on July 23, 1990 (the "Prior Bonds Resolution"), the City anthorized the predecessor to the EDA to direct application and use of the tax increment revenues derived from the TIF District; and WHEREAS, in order to help £mance a portion of the cost of a public redevelopment project (the"Project") within the TiF District, the City previously issued, pursuant to Section 469.178, subdivision 2, as amended, and Minnesota Statutes, Chapter 475, as amended (collectively, the "Act"), its General Obligation Tax Increment Capital Appreciation Bonds of 1990, Series A, dated August 23, 1990 (the "Prior Bonds"); and WHEREAS, the Prior Bonds were issued pursuant to the Prior Bonds Resolutions of the City Cotmcil of the City; and WHEREAS, pursuant to authority conferred to the City by the Act, the City has agreed to refund the Prior Bonds through the issuance of the City's General Obligation Tax Increment Refunding Bonds, Series 2004A, in the approxhnate original aggn'egate principal amount of $ (the "Bonds"); and WHEREAS, on November 22, 2004, pursuant to Resolution No. __ (the "Bond Resolution") of the City Cotmcil of the City, the City has authorized the issuance, sale and delivery of the Bonds and the City has awarded the Bonds to the original purchaser thereof; and P. 89 WHEREAS, the EDA has agreed to pledge the tax increment revenues derived fi'om the District to the City for the payment of the principal of, premium, if any, and interest on the Bonds; and WHEREAS, a Tax Increment Pledge Agreement, dated on or after December 1, 2004 (the "Pledge Agreement"), between EDA and the City providing for the pledge of tax increments from the TIF District to payment of principal of, premium, if any, and interest on the Bonds has been presented to the EDA; NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners (the "Board") of the Columbia Heights Economic Development Authority, as follows: 1. The President and Executive Director of the EDA are hereby authorized to execute and deliver the Pledge Agreement substantially in the form on file with the City, providing for the pledge of tax increment derived from property in the TIF District for the payment of the principal of, premium, if any, and interest due on the Bonds. The Executive Director and President of the EDA are also authorized to take all necessary action to pledge the tax increments to the City for the Bonds. 2. The form of the Pledge Agreement on file with EDA on the date hereof is hereby approved, with such necessary variations, omissions, and insertions as are not materially inconsistent with such form and as the President of the EDA, in his discretion, shall determine; provided that the execution thereof by the President of the EDA shall be conclusive evidence of such determination. 3. If for any reason the President of the EDA is unable to execute and deliver the Pledge Agreement or the other documents required for pledge of the tax increments to the Bonds, any other member of the governing body of the EDA, or any officer or employee of the EDA duly delegated to act on behalf of the President, may execnte and deliver such documents with the same force and effect as if such documents were executed by the President. If for any reason the Executive Director of the EDA is unable to execute and deliver the Pledge Agreement or the other documents required for the pledge of the tax increments to the Bonds, any other member of the governing body of the EDA, or any officer or employee of the EDA duly delegated to act on behalf of the Executive Director, may execute and deliver such documents with the same force and effect as if such documents were executed by the Executive Director. 4. The EDA hereby approves of and supports the issuance of the Bonds by the City. In all events, it is tmderstood, however, that the Bonds shall never constitute a charge, lien or encumbrance, legal or equitable, upon any property of the EDA except for the tax increments pledged to the payment of the Bonds under the terms of the Pledge Agreement. 5. This resolution shall be effective from and after its passage. P. 90 The question was on adoption of the resolution and upon a vote being taken thereon, the following voted in favor thereof: and the following voted against the same: WHEREUPON SAID RESOLUTION WAS DECLARED DULY PASSED AND ADOPTED THIS 22nd DAY OF NOVEMBER, 2004. COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY ATTEST: Its President Its Executive Dkector BWJ-25566 lvl CL162-27 P. 91 REFUNDING ESCROW AGREEMENT Relating to: $2,399,720.75 General Obligation Tax Increment Capital Appreciation Bonds of 1990, Series A City of Columbia Heights Anoka County, Minnesota December 16, 2004 THIS REFUNDING ESCROW AGREEMENT, dated December 16, 2004 (this "Agreement"), is made pursuant to Minnesota Statutes, Chapter 475, as amended (the "Act"), including Section 475.67, Subdivision 13 of the Act, and executed by and between the City of Cohunbia Heights, a duly organized and existing municipal corporation in Anoka County, Minnesota (the "City"), and U.S. Bank National Association, Saint Paul, Minnesota, a national banking association, Saint Paul, Minnesota, whose deposits are insured by the Federal Deposit Insurance Corporation and whose capital and surplus is not less than $500,000 (the "Escrow Agent"). WITNESSETH That the City and the Escrow Agent recite and, in consideration of the mutual covenants contained herein, covenant and agree as follows: 1. Reftmding Authority. The City, in accordance with Resolution No. , adopted by the City Council of the City on November 22, 2004 (the "Resolution"), a certified copy of which has been filed with the Escrow Agent, has provided for the refimding of the City's General Obligation Tax Increment Capital Appreciation Bonds of 1990, Series A (the "Prior Bonds"), originally issued in the original aggregate principal amount of $2,399,720.75. The City will use proceeds derived from its General Obhgafion Tax Increment Refunding Bonds, Series 2004A (the "Refunding Bonds" or the "Bonds"), in the original aggregate principal amount of $ ., to refund the Prior Bonds. The hqor Bonds were issued by the City to finance the acquisition and construction of a senior housing project (the "Project"). 2. Deposits to Defease the Prior Bonds. The City has, in accordance with the Resolution, issued and sold the Refunding Bonds in the aggregate principal amount of $ The City has deposited with the Escrow Agent, for deposit in the Escrow Account (as defined in paragraph 3 below) funds in the amotmt of $ ., which amount is the proceeds of the Refunding Bonds in the amount of $ ($. principal par amount of Refunding Bonds, [plus premimn of $ ,] less underwriter's discount of $ [, less insurance premium of $ ]). The Escrow Fund shall be comprised of funds and securities from the following sources: (i) $. of such funds shall be invested in securities which are general obligations of the United States, securities whose principal and interest payments are guaranteed by the United States, and securities issued by agencies of the United States (collectively, the "Federal Securities"), as described in the verification report from ., certified public accountants, dated December 16, 2004 (the "Verification Report"), attached hereto as Exhibit A and made a part hereof, and (ii) $ from an initial cash deposit to the Escrow Fund by the City. The amount of $ in the Escrow Fund shall be used by the Escrow Agent to pay the costs of issuance related to the Refunding Bonds, as set forth on Exhibit B attached hereto and made a part hereof. The City has irrevocably deposited an initial cash deposit of $ and the Federal Securities with the Escrow Agent on the date of this Agreement. P. 92 It is understood and agreed that the dates and amounts of payments of principal of and interest due on the Federal Secm'ities so deposited are as indicated in Exhibit A, and that the principal and interest payments due on such Federal Securities together with the initial cash deposit are sufficient to provide the funds required to (i) pay all interest payable on the Refunding Bonds tlu'ough September 1, 2005 (the "Redemption Date"), which is the date on which the Prior Bonds have been directed to be prepaid, as stated in the Resolution, and (ii) to pay the redemption price of the Prior Bonds on the Redemption Date. 3. Acknowledgement of Receipt of Escrow Funds. The Escrow Agent hereby acknowledges receipt of the Federal Securities described above in paragraph 2 of this Agreement and agrees that the Escrow Agent will hold such Federal Securities in a special escrow account (the "Escrow Account") created by the Resolution in the name of the City, and will collect and receive on behalf of the City aH payments of principal and interest on the Federal Secm'ities and will remit from the Escrow Account (i) to the paying agent (the "Paying Agent") for the Refunding Bonds the funds required from time to time for the payment of interest on the Refunding Bonds through the Redemption Date; and (ii) to the Paying Agent for the Prior Bonds the funds needed for the redemption and prePayment of the outstanding principal amount of the Prior Bonds on the Redemption Date. After provision for payment of all remaining Prior Bonds, the Escrow Agent will remit any remaining funds in the Escrow Account to the City. Of the amounts deposited with the Escrow Agent, the sum of $ shall be used by the Escrow Agent for the payment and disbursement of the costs of issuance of the Refunding Bonds and payments to the City as set forth in Exhibit B attached hereto. 4. Compliance with the Code. In order to insure continuing compliance with the Internal Revenue Code of 1986, as euuended, and regulations promulgated thereunder (collectively, the "Code"), the Escrow Agent agrees that it will not reinvest any cash received in payment of the principal of and interest on the Federal SecmSties held in the Escrow Account unless required by the Verification Report. This prolfibition on reinvestment shall continue unless and until an opinion is received by Escrow Agent from a nationally-recognized bond counsel acceptable to the City that reinvestments, as specified in said opinion, may be made in a manner consistent with the Code. Reinvestment, if any, of amounts in the Escrow Account made pursuant to this paragraph may be made only in direct obligations of the United States of America which mature prior to the next date on which either p~4ncipal or interest on the Prior Bonds is payable. 5. Waiver of Lien. The Escrow Agent expressly waives any lien upon or claim against the money and investments in the Escrow Account. 6. Deposit to Escrow Agent for Deficiencies. If at any time it shah appear to the Escrow Agent that the money in the Escrow Account allocable for such use hereunder will not be sufficient to make any interest payment due to the holders of any of the Refunding Bonds, or principal payment due to the holders of any of the Prior Bonds, the Escrow Agent shall hmnediately notify the City. The City thereupon shall forthwith deposit in the Escrow Account, from funds on hand and legally available to it, such additional funds as may be required to meet fully the amount to become due and payable. The City and Escrow Agent acknowledge receipt of the Verification Report to the effect that such cash and securities are sufficient to comply with the requirements of the Act. 7. No ganendments to the Resolution; Redemption of Prior Bonds. The City will not repeal or amend the Resolution which calls the Prior Bonds for redemption on their Redemption Date. The Escrow Agent shall cause the Notice of Call for redemption attached hereto as Exhibit C to be mailed not less than 60 days prior to the Redemption Date to the paying agent for the Prior Bonds for the purpose of giving notice not less than 30 days prior to the Redemption Date to the registered owners of the Prior Bonds to be redeemed, at their addresses appearing in the bond register and also to the paying agent for the Prior Bonds. P. 93 8. Escrow Agent Report to City. On or before September 1, 2005, and on or before September 1 of each year thereafter until te~nination of the Escrow Account, the Escrow Agent shall submit to the City a report covering all funds it received and all payments it made or caused to be made hereunder dm4ng the preceding twelve months. Such report shall also list all Federal Securities and funds held in the Escrow Account and the mr~otmt of money on hand in the Escrow Account on February 1 of each yea'. 9. Escrow Account. It is recognized and agreed that title to the Federal Secm'ities and cash, if any, held in the Escrow Account from time to time shall remain vested in the City but subject always to the prior charge and lien thereon of this Agreement and the use thereof required to be made by this Agreement. The Escrow Agent shah hold all such funds and Federal Securities in the Escrow Account which is a special trnst fund and account separate and wholly segregated from all other funds and Federal Securities of the Escrow Agent, and shall never commingle such funds or Federal Secm4ties with other money or securities; provided, however, that nothing herein contained shall be consl2'ued to require the Escrow Agent to keep the identical money, or any part thereof, received for the Escrow Account on hand, but ftmds of an equal amount (except to the extent such are represented by investments permitted under this Agreement) shall always be maintained on hand as funds held by the Escrow Agent as trustee, belonging to the City, and a special account shall at all times be maintained on the books of the Escrow Agent, together with such investments. In the event of the Escrow Agent's failure to account for any money or obligations held by it in the Escrow Account, such money and obligations shah be and remain the property of the City, and if for any reason such money or obligations cmmot be identified, aH other assets of the Escrow Agent shall be impressed with a trust for the amount thereof, and the City shall be entitled to a preferred claim upon such assets. It is understood and agreed that the responsibility of the Escrow Agent under this Agreement is limited to the safekeeping and segregation of the funds and secm4ties deposited with it in the Escrow Account, and the collection of and accounting for the principal and interest payable with respect thereto. 10. Escrow A~reement for the Benefit of the Prior Bondholders. This Agreement is made by the City for the benefit of the holders of the Prior Bonds, and is not revocable by the City, and the investments and other funds deposited in the Escrow Account and all income therefrom have been in'evocably appropriated for the payment of the callable principal amount of the Prior Bonds at the Redemption Date and interest on the Refunding Bonds to the Redemption Date in accordance with this Agreement. 11. Binding A_~'eement; Snccessors and Assigns. This Agreement shall be binding upon and shall inm'e to the benefit of tlie City and the Escrow Agent and their respective successors and assigns. In addition, this Agreement shall constitute a third party beneficiary contract for the benefit of the holders of the Prior Bonds and said th/rd party beneficiaries shall be entitled to enforce performance and observance by the City and the Escrow Agent of the respective agreements and covenants herein contained as fully and completely as if said third patty beneficiaries were parties hereto. Any bank into which the Escrow Agent may be merged or with which it tnay be consolidated or any bank resulting from any merger or consolidation to which it shall be a party or any bank to which it may sell or transfer all or substantially all of its corporate trust business shall, if the City approves, be the successor agent without the execution of any docmnent or the performance of any further act. 12. Resignation, Removal of Escrow Agent. The Escrow Agent may at any time resign and be discharged of its obligations hereunder by giving to the Executive Director of the City written notice of such resignation not less than 60 days before the date when the same is to take effect and by publication of a copy of such notice in a daily or weekly Minnesota newspaper published in a Minnesota City of the fn'st class, or its metropolitan area, which circulates thi'oughout the state and furnishes fmancial news as part of its se~wice, not less than 30 days prior to such date; provided that the Escrow Agent shall return to the City the pro-rata portion of its fee which is allocable to the period of time con2nencing on the effective date of such resignation. Such resignation shall take effect upon the date specified in the notice of resignation by the P. 94 Escrow Agent, or upon the appointment and qualification of a successor prior to that date. In the event of such resignation, a successor shall promptly be appointed by the City, and the City Manager of the City shall immediately give written notice thereof to the predecessor escrow agent and publish the notice in the manner described in this pm-agraph 12. If, in a proper case, no appointment of a successor agent is made within 45 days after the receipt by the City of notice of such resignation, the Escrow Agent or the holder of any Prior Bond may apply to any court of competent jurisdiction to appoint a successor escrow agent, which appointment may be made by the Conrt after such notice, if any, as the Com-t may prescribe. Any successor escrow agent appointed hereunder shall execute, acknowledge and deliver to its predecessor Escrow Agent and to the City a written acceptance of such appointment, and shall thereupon without any Anther act, deed or conveyance become fully vested with all money, properties, duties and obligations of its predecessor, but the predecessor shall nevertheless pay over, transfer, assign and deliver all money, securities or other property held by it to the successor Escrow Agent, shall execute, acknowledge and deliver such instruments of conveyance and do such other things as may reasonably be requh'ed to vest and confm~ more fully and certainly in the successor escrow agent all right, title and interest in and to any property held by it heretmder. Any bank into which the Escrow Agent may be merged or with which it may be consolidated or any bank resulting from any merger or consolidation to which it shall be a party or any bank to which it may sell or transfer all or substantially all of its corporate trust business shall, if the City approves, be the successor escrow agent without the execution of any document or the performance of any further act. 13. Escrow Agent Fee. The Escrow Agent acknowledges receipt of the sum of as its full compensation for its services to be performed under this Agreement. t4. Liability of Escrow Agent. The duties and obligations of the Escrow Agent shall be as prescribed by the provisions of this Agreement and the Escrow Agent shall not be liable hereunder except for failure to perfoma its duties and obligations as specifically set forth herein or to act in good faith in the performance thereof and no implied duties or obligations shall be incurred by the Agent other than those specified herein. 15. Notices. Any notice, authorization, request or demand requked or pennitted to be given in accordance with the tenns of this Agreement shall be in writing and sent by registered or certified mail adch'essed: If to the City: City of Columbia Heights 590 40~ Avenue N.E. Columbia Heights, Minnesota 55421-3835 Attn: City Manager If to the Escrow Agent: U.S. Bank National Association 60 Livingston Avenue EP-MN-WS3C Saint Paul, Minnesota 55107 Attn: Corporate Trust Department 16. Exltibits. The exhibits which are a part of this Agreement are as follows: Exhibit A Exhibit B Exhibit C Verification Report Costs of Issuance Notice of Call for Redemption P. 95 17. Governin~ Law. This Agreement shall be governed by the laws of the State of Minnesota. 18. Term of A~'eement. This Agreement shall remain in full force and effect fi~om the date of execution of this Agreement until such thne as no Prior Bonds are outstanding. 19. Counterparts. This Agreement may be executed in any number of cotmterpm-ts, all of which, taken together, shall constitute one and the stone insta-ument, and any of the parties hereto may execute this Agreement by signing any such counterpart. 20. Time of Essence. Time is of the essence of this Agreement and all dates and time periods specified herein or therein shall be strictly observed. 21. Gender and Number. Words used in this indicating gender or number shall be read as context may require. 22. Captions. The headings or captions of the Articles, sections, paragraphs, and subdivisions of this Agreement are for convenience of reference only, are not to be construed a part of this Agreement or thereof, and shall not be construed as affecting the content of any such Article, section, paragraph or subdivision. 23. Negotiated Docttment. This Agreement has been negotiated by the parties with full benefit of counsel and should not be construed against either party as author. 24. Severability. In case any one or more of the covenants, agreements, terms or provisions in this Agreement shall be invalid, illegal or unenforceable in any respect, the validity of the remaining covenants, agreements, terms or provisions shall in no way be affected, prejudiced or disturbed thereby, and to this end the provisions of this Agreement are declared to be severable. 25. Defined Terms. All capitahzed terms used in this Agreement and not defined herein shah have the meanings assigned to them in the Resolution unless context clearly indicates otherwise. 26. Entire Agreement. This Agreement represents the entire agreement between the parties concerning the subject matter of this Agreement, and all oral discussions and prior agreements are merged herein. (The remainder of this page is intentionally left blank.) P. 96 IN WITNESS WHEREOF the parties hereto have caused this instrmnent to be duly executed by their duly authorized officers, in counterparts, each of which is deemed to be an original agreement, on this 16th day of December, 2004. CITY OF COLUMBIA lt]glGHTS, MINNESOTA By. Its Mayor By. Its City Manager (Signature Page to the Refunding Escrow Agreement) · P. 97 U.S. BANK NATIONAL ASSOCIATION By Its Corporate Trust Officer (Signature Page to the Refunding Escrow Agreement) P. 98 EXHIBIT A VERIFICATION REPORT P. 99 EXHIBIT B COSTS OF ISSUANCE P. IO0 EXHIBIT C NOTICE OF CALL FOR REDEMPTION $2,399,720.75 GENERAL OBLIGATION TAX INCREMENT CAPITAL APPRECIATION BONDS OF 1990, SERIES A CITY OF COLUMBIA HEIGHTS ANOICA COUNTY, MINNESOTA NOTICE IS HEREBY GIVEN that, by order of the City Council of the City of Columbia Heights, Amoka County, Minnesota, there have been called for redemption and prepayment on SEPTEMBER 1, 2005 all outstanding bonds of the City desiguated as General Obligation Tax Increment Capital Appreciation Bonds of 1990, Series A (the "Bonds"), dated August 23, 1990, having a stated maturity date of September 1, in the years 2006 through 2009, both inclusive, totaling $953,903.45 in principal amount, and with the following CUSI~ numbers: YearofMaturky PrincipalAmount 2006 $301,281.60 2007 280,977.20 2008 259,780.40 2009 111,864.25 CUSIP The bonds are being called at a price of par plus accrued interest to September 1, 2005, on which date all interest on said bonds will cease to accrue. Holders of the bonds hereby called for redemption m'e requested to present theh' bonds for payment at the main office of Wells Fro'go Bank, National Association, in the City of Minneapolis, Minnesota (formerly known as Norwest Bank~,~,~,~o,,,,, ~ ~; ..... ~o XTo~;~,,o~~,,~,~,~,~ Association), ,~,~"*' or before September ~,~ 2005, at the following address: Wells Fargo Bank, National Association Attention: Corporate Trust Operations 255 Second Avenue South Minneapolis, MN 55479-0113 hnportant Notice: In compliance with the Economic Growth and Tax Relief Reconciliation Act of 2001, federal backup witlzholding tax will be withheld at the applicable backup withholdh~g rate in effect at the thne the payment by the redeeming institutions if they m'e not provided with your social security nmnber or federal employer identification nmnber, properly certified. This requh'ement is fulfilled by submitting a W-9 Form, wlfich may be obtained at a bank or other financial institution. P. IO1 The Registrar will not be responsible for the selection or use of the CUSIlP nnmber, nor is any representation made as to the con'ectness indicated in the Redemption Notice or on any Bond. It is included solely for convenience of the Holders. Dated: December 16, 2004. BY ORDER OF THE CITY COUNCIL OF THE CITY OF COLUMBIA HEIGHTS, MINNESOTA By /s/ Walter Fehst City Manager 255662v I(BWJ) CL162-27 P. 102 City of Columbia Heights, MN Results of Bond Sale November 22, 2004 $1,985,000 General Obligation Tax Increment Refunding Bonds, Series 2004A Low Bidder United Banker's Bank True Interest Cost 2.4752% Number of Bids 5 Rating A1 Range of 8ids Bond Sale Summary Principal Amount Discount Allowance Coupon Rates Cashflow Savings Net Present Value Savings Bond Buyers Index Closing Date Council Action 2.4752% - 2.7440% Results of Sale $1,985,000 $5,985 2.00% - 2.75% $335,063 ($234,138 Present Value) 8.595% 4.52% December 16, 2004 Accept the bid proposal from United Bankers Bank and Adopt "Resolution Awarding The Sale Of $1,985,000 General Obligation Tax Increment Refunding Bonds, Series 2004A, Fixing Their Form And Specifications; Directing Their Execution And Delivery; And PrOviding For Their Payment" *Based on previous estimates the cashflow saving are $24,738 more than estimated, the discount is $14,065 less than allowed, and the bond issue was reduced by $15,000. **The EDA will need to approve a Pledge Agreement prior to the closing date, at a Special EDA Meeting on either 12/6 or 12/13. Attachments [] Moody's Investors Service Credit Rating Report [] Bid Tabulation [] Revised Debt Schedule and Savings Analysis [] Bond Market Graphs Prepared by EHLERS ASSOCIATES ~NC MOODY'S ASSIGNS A1 RATING TO COLUMBIA HEIGHTS' (MN) $2 MILLION GOULT SERIES ... witi4 the median family income equal to 89% of the state average (census 2000), compared to 99.4% (1990). Taxbase diversity is evident, with the largest taxpayer (Meal,tonics) equal to 1.8% of total assessed valuation, and ongoing redevelopment efforts that are currently underway are expected to continue diversifying the base. KEY STATISTICS 2000 census:18,529 Population decline since 1990: 2.1% Full value: $1.3 billion Full value per capita: $69.608 Top ten taxpayers as % of assessed value: 8.8% Debt burden: 3.5% Amortization of principal (10 years): 89.8% FY03 General Fund balance: $3.4 million (43.3% of General Fund revenues) MFI as a % of state (1999): 89% PCl as a % of state (1999): 92.1% Debt outstanding: $6.6 million Analysts Jonathan North Analyst Public Finance Group Moody's Investors Service Edward Damutz Backup Analyst Public Finance Group Moody's Investors Service Contacts Journalists: (212) 553-0376 Research Clients: (212) 553-1653 © Copyright 2004, Moody's Investors Sen,ice, !nc. and/or its licensors including Moody's Assurance Company, thc. (together, "MOODY'S"). All rights reserved. ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY COPYRIGHT LAW AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSQEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT. Alt information contained herein is obtained by MOODY'S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, such information is provided "as is" without warranty of any kind and MOODY'S, in particular, makes no representation or warranty, express or implied, as to the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any such Information. Under no circumstances shall MOODY'S have any liability to any person or entity for (a) any loss or damage In whole or in part caused by, resulting from, or relating to, any error (negligent or otherwise) or other circumstance or contingency within or outside the control of MOODY'S or any of its directors, officers, employees or agents in connection with the procurement, collection, compilation, analysis, interpretation, communication, publication or dellvew of any such information, or (b) any direct, Indirect, special, consequential, compensatory or Incidental damages whatsoever (including without limitation, lost profits), even if MOODY'S is advised in advance of the possibility of such damages, resulting from the use of or Inability to use, any such information. The credit ratings and financial reporting analysis observations, if any, constituting part of the information contained herein are, and must be construed solely as, statements oi' opinion and not statements of fact or recommendations to purchase, sell or hold any securities. NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY SUCH RATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY fi~e://C:\D~cuments%2~and%2~Settings\se.~~~\L~ca~%2~Settings\Temp\M~~DYSASS~GNSA 1RATI... Page 2 of 3 11/22/2004 MOODY'S ASSIGNS A1 RATING TO COLUMBIA HEIGHTS' (MN) $2 MILLION GOULT SERIES ... MOODY'S IN ANY FORM OR MANNER WHATSOEVER. Each rating or other opinion must be weighed solely as one factor in any investment decision made by or on behalf of any user of the information contained herein, and each such user must accordingly make its own study and evaluation of each security and of each issuer and guarantor of, and each provider of credit support for, each security that it may consider purchasing, holding OF selling. MOODY'S hereby discloses that most issuers of debt securities (Including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MOODY'S have, prior to assignment of any rating, agreed to pay to MOODY'S for appraisal and Fating services rendered by it fees ranging from $1,500 to ~2,300,000. Moody's Corporation (MCO) and its wholly- owned credit rating agency subsidiary, Moody's Investors Service (MIS), also maintain policies and procedures to address the independence of MIS's ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually on Moody's website at www. moodys.com under the heading "Shareholder Relations - Corporate Governance - Director and Shareholder Affiliation Policy." Page 3 of 3 ~~e://C:kD~cuments%2~and%2~Settings\se.~~~\L~ca~%2~Settings\Temp\M~~DYSASS~GNSA~RAT~... 11/22/2004 BID TABULATION $2,000,000* General Obligation Tax Increment Refunding Bonds, Series 2004A CITY OF COLUMBIA HEIGHTS, MINNESOTA SALE: November 22, 2004 AWARD: UNITED BANKERS' BAN K RATING: Moody's Investors Service '%1" BBI: 4.52% NAME OF BIDDER NET MATURITY RATE REOFFERING PRICE INTEREST (September 1) YIELD COST TRUE INTEREST RATE UNITED BANKERS'BANK Bloomington, Minnesota 2006 2.000% 2.000% 2007 2.250% 2.250% 2008 2.500% 2.500% 2009 2.750% 2.750% $1,994,015.00 $141,960.52 2.4752% WELLS FARGO BROKERAGE SERVICES, LLC Minneapolis, Minnesota 2OO6 2.25O% 2007 2.375% 2008 2.450% 2009 2.750% $1,996,776.40 $142,696.85 2.4870% NORTHLAND SECURITIES, INC. Minneapolis, Minnesota 2006 2.150% 2OO7 2.3OO% 2008 2.7OO% 2OO9 2.95O% $1,994,000.00 $150,443.65 2.6228% CRONIN & COMPANY, INC. Minneapolis, Minnesota 2OO6 2.5OO% 2OO7 2.5O0% 2008 3.000% 2009 3.000% $2,006,062.50 $152,691.67 2.6523% UMB BANK, N.A. Kansas Ci~, Missouri 2006 2.300% 2007 2.550% 2008 2.700% 2009 2.850% $1,992,220.00 $157,231.77 2.7440% *Subsequent to bid opening the issue size was decreased to $1,985,000 with the 2006 maturity decreased $5,000 to $600,000, the 2007 maturity decreased $5,000 to $610,000, and the 2008 maturity decreased $5,000 to $625,000 in maturity value. Adjusted Price - $1,979,064.85 Adjusted Net Interest Cost- $140,971.61 Adjusted TIC - 2.4755% & ASSOCIATES INC 3060 Centre Pointe Drive, Roseville, MN 55113 651.697.8500 fax 651.697.8555 www.ehlers-inc.com Offices in Roseville, MN Brookfield, WI and Lisle, IL City of Columbia Heights, MN Proposed Crossover Refunding of $2,399,720.75 G.O. Capital Appreciation Bonds, Series 1990 Debt Service Schedule Date Principal Coupon Interest Total P+I Fiscal Total 12/16/2004 03/01/2005 9,473.96 9,473.96 09/01/2005 22,737.50 22,737.50 32,211.46 03/01/2006 22,737.50 22,737.50 09/01/2006 600,000.00 2.000% 22,737.50 622,737.50 645,475.00 03/01/2007 - 16,737.50 16,737.50 09/01/2007 610,000.00 2.250% 16,737.50 626,737.50 643,475.00 03/01/2008 9,875.00 9,875.00 09/01/2008 625,000.00 2.500% 9,875.00 634,875.00 644,750.00 03/01/2009 - 2,062.50 2,062.50 09/01/2009 150,000.00 2.750% 2,062.50 152,062.50 154,125.00 Total $1,985,000.00 $135,036.46 $2,120,036.46 Yield Statistics Bond Year Dollars $5,701.04 Average Life 2.872 Yearn Average Coupon 2.3686278% Net Interest Cost (NIC) 2.4727343% True Interest Cost (TIC) 2.4755402% Bond Yield for Arbitrage Purposes 2.3667294% All Inclusive Cost (AIC) 3.0305812% IRS Form 8038 Net Interest Cost 2.3686278% Weighted Average Maturity 2.872 Years CH 04 Xover of Set90 $2 J SINGLE PURPOSE I 11/22/2004 I 12:15 PM Ehlers & Associates, Inc. Leaders in Public Finance Page 1 City of Columbia Heights, MN Proposed Crossover Refi~nding of $2,399,720.75 G.O. Capital Appreciation Bonds, Series 1990 Debt Service Comparison Const Loan Date Total P+I Pmt Existing DIS Net New DIS Old Net DIS Savings 09/01/2005 32,211.46 (2,756,447.08) 2,724,235.62 762,111.67 (762,111.67) 09/01/2006 645,475.00 645,475.00 920,000.00 274,525.00 09/01/2007 643,475.00 643,475.00 920,000.00 276,525.00 09/01/2008 644,750.00 644,750.00 920,000.00 275,250.00 09/01/2009 154,125.00 154,125.00 425,000.00 270,875.00 Total $2,120,036.46 (2,756,447.08) $2,724,235.62 $2,849,936.67 $3,185,000.00 $335,063.33 PV Analysis Summary (Net to Net) Gross PV Debt Service Savings 996,249.68 Net PV Cashflow Savings @ 3.031%(AIC) 996,249.68 Total Cash contribution (765,325.15) Contingency or Rounding Amount 3,213.48 Net Present Value Benefit $234,138.01 Net PV Benefit / $2,724,236 Refunded Principal 8.595% Refunding Bond Information Refunding Dated Date 12/16/2004 Refunding Delivery Date 12/16/2004 CH 04 XoverofSer90$2 I SINGLE PURPOSE ] 11/22/2004 I 12:15 PM Ehlers & Associates, Inc, Leaders in Public Finance Page 2 0 Extract of Minutes of Meeting of the City Council of the City of Columbia Heights, Anoka County, M/nnesota Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Columbia Heights, Minnesota, was duly held in the City Hall in the City of Columbia Heights, Minnesota on Monday, November 22, 2004 connnencing at 7:00 o'clock P.M. The following members of the City Council were present: and the following were absent: The Mayor announced that the next order of business was consideration of the proposals which had been received for the purchase of the City's approximately $1,985,000 General Obligation Tax Increment Refunding Bonds, Series 2004A. The City Manager presented .a tabulation of the proposals that had been received in the manner specified in the Official Terms of Proposal for the Bonds. The proposals were as set forth in Exhibit A attached to the Resolution. After due consideration of the proposals, Member then introduced the following Resolution and moved its adoption: In accordance with the official Terms of Proposal the following adjustments were made: Principal Amount: Maturities: Minimum Purchase Price: Reduced by $15,000 to $1,985,000 2006 maturity reduced $5,000 to $600,000 2007 maturity reduced $5,000 to $610,000 2008 maturity reduced $5,000 to $625,000 Reduced to $1,965,150 CITY OF COLUMB~ HEIGHTS, MINNESOTA RESOLUTION NO. A RESOLUTION AWARDING THE, SALE OF GENERAL OBLIGATION TAX INCREMENT REFUNDING BONDS, SERIES 2004A; FIXING THI~IR FORM AND SPECIFICATIONS; DIRECTING THEIR EXECUTION AND DELIVERY; AND PROVIDING FOR THE1R PAYMENT BE IT RESOLVED By the City Council (the "City Council") of the City of Columbia Heights, Anoka County, Minnesota (the "City") as follows: Section 1. Sale of Bonds. 1.01. It is hereby determined by the City Council that: (a) the City and the Housing and Redevelopment Authority in and for the City (the "HRA") duly established the Central Business District Revitalization District (Nos. A3 and C7) and University Avenue Redevelopment Project (No. C8) (collectively, the "TIF Districts") pursuant to Minnesota Statutes, Sections 469.174 through 469.1799, as amended, and predecessor statutes (the "Tn~ Act"); (b) the control, authority and operation of the TIF Districts was transferred from the I-IRA to the Columbia Heights Economic Development Authority, a body corporate and politic and a political Subdivision of the State of Minnesota (the "EDA") by a resolution of the City Council of the City pursuant to Minnesota Statutes, Section 469.094, as amended; (c) the City is authorized by Section 469.178, Subdivision 2, of the TIF Act to issue and sell its general obligations to pay all or a portion of the public development and redevelopment costs (the "Costs") related to the District as identified in a redevelopment plan and tax increment financing plan (collectively, the "Plans") for the District; (d) the City is authorized by the TIF Act and Minnesota Statutes, Chapter 475, as amended (collectively, the "Act"), including Section 475.67, Subdivision 3, of the Act, to issue and sell its general obligation bonds to refund obligations and the interest thereon before the due date of the obligations, if consistent with covenants made with the holders thereof, when determined by the City Council to be necessary or desirable for the reduction of debt service cost to the City or for the extension or adjustment of maturities in relation to the resources available for their payment; (e) Section 475.67, Subdivision 13 of the Act permits the sale of crossover refunding obligations by the City prior to the date on which the obligations to be refunded may be called for redemption; (f) it is necessary and desirable to reduce debt service costs of the City and therefore the City will issue its General Obligation Tax Increment Refunding Bonds, Series 2004A ("Bonds"), in the original aggregate principal amotmt of $1,985,000 to refund the City's outstanding General Obligation Tax Increment Capital Appreciation Bonds of 1990, Series A (the "Prior Bonds"), dated August 23, 1990, the proceeds of which were used by the City to finance a portion of the cost of a public redevelopment project (the "Project") in the District; (g) Prior Bonds in the accreted principal amount of $2,724,235.62 are currently outstanding on the date hereof and are subject to redemption at the option of the City on September 1, 2005; (h) the Mayor and City Manager are authorized and directed to execute a Tax Increment Pledge Agreement, dated on or after December 1, 2004 (the "Pledge Agreement"), between the City and the EDA in substantially the form on file with the City on the date hereof; and (i) pursuant to the Pledge Agreement, the EDA pledges certain revenues derived from the TIF Districts (the "Pledged Tax Increment") to the payment of principal of, premium, if any, and interest on the Bonds, subject to the terms and conditions described in the Pledge Agreement. 1.02. The proposal of United Bankers' Bank (the "Purchaser") to purchase the Bonds described in the Official Terms of Proposal thereof is found and determined to be a reasonable offer and is accepted, the proposal being to purchase the Bonds at a price of $1,979,064.85, for Bonds bearing interest as follows: Date of interest Date of Interest Maturity Rate Maturity Rate 2006 2.00% 2008 2.50% 2007 2.25% 2009 2.75% True interest cost: 2.4755% 1.03. The sum of $0 being the amount proposed by the Purchaser in excess of $1,965,150 will be credited to the Series 2004A Debt Service Fund hereinafter created. Ehlers and Associates, Inc., on behalf of the City Finance Director of the City, is directed to retain the good faith check of the Purchaser pending completion of the sale of the Bonds, and to return the good faith checks of the unsuccessful proposers forthwith. The Mayor and City Manager are directed to execute a contract with the Purchaser on behalf of the City. 1.04. The City will forthwith issue and sell the Bonds pursuant to the Act in the original aggregate principal amount of $1,985,000, originally dated December 16, 2004, in minimum denominations of $5,000 each or any integral multiple thereof, numbered No. R-l, upward, bearing interest as above set forth, and which mature serially on September 1 in the years and amounts as set forth below: Date of PrLncipa! Date of _Principal Maturi _ty Amount Maturi _ty Amount 2006 $600,000 2008 $625,000 2007 610,000 2009 150,000 1.05. Optional Redemption. The City may elect on March 1, 2008, and on any day thereafter to prepay Bonds due on or after September 1, 2008. Redemption may be in whole or in part and if in part, at the option of the City and in such manner as the City will determine. If less than all Bonds of a maturity are called for redemption, the City will notify The Depository Trust Company, New York, New York ("DTC") of the particular amount of such maturity to be prepaid. DTC will determine by lot the amount of each participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. Prepayments of the Bonds will be at a price of par plus accrued interest. Section 2. Registration and Pawnent. 2.01. Registered Form. The Bonds will be issued only in fully registered form. The interest thereon and, upon surrender of each Bond, the principal amount thereof, is payable by check or draft issued by the Registrar described herein. 2.02. Dates; Interest Payment Dates. Each Bond will be dated as of their date of issuance last interest payment date preceding the date of authentication to which interest on the Bond has been paid or made available for payment, unless (i) the date of authentication is an interest payment date to which interest has been paid or made available for payment, in which case the Bond will be dated as of the date of authentication, or (ii) the date of authentication is pr/or to the first interest payment date, in which case the Bond will be dated as of the date of original issue. The interest on the Bonds is payable on March 1 and September 1 of each year, commencing March 1, 2005, to the registered owners of record thereof as of the close of business on the fifteenth (15th) day of the prior month, whether or not such day is a business day. 2.03. Registration. The City will appoint a bond registrar, transfer agent, authenticating agent and paying agent (the "Registrar"). The effect of registration and the rights and duties of the City and the Registrar with respect thereto are as follows: (a) Register. The Registrar must keep at its principal corporate trust office a bond register in which the Registrar provides for the registration of ownership of Bonds and the registration of transfers and exchanges of Bonds entitled to be registered, transferred or exchanged. (b) Transfer of Bonds. Upon surrender for transfer of a Bond duly endorsed by the registered owner thereof or accompanied by a written instrument of transfer, in form satisfactory to the Registrar, duly executed by the registered owner thereof or by an attorney duly authorized by the registered owner in writing, the Registrar will authenticate and deliver, in the name of the designated transferee or transferees, one or more new Bonds of a like aggregate principal amount and maturity, as requested by the transferor. The Registrar may, however, close the books for registration of any transfer after the fifteenth day of the month preceding each interest payment date and until that interest payment date. (c) Exchange of Bonds. When Bonds are surrendered by the registered owner for exchange the Registrar will authenticate and deliver one or more new Bonds of a like aggregate prh~cipal amount and mattu-ity as requested by the registered o~,~mer or the owner's attorney fin writing. (d) Cancellation. Bonds surrendered upon transfer or exchange will be promptly cancelled by the Registrar and thereafter disposed of as directed by the City. (e) Improper or Unauthorized Transfer. When a Bond is presented to the Registrar for transfer, the Registrar may refuse to transfer the Bond until the Registrar is satisfied that the endorsement on the Bond or separate instrument of transfer is valid and genuine and that the requested transfer is legally authorized. The Registrar will incur no liability for the refusal, in good faith, to make transfers which it, in its judgment, deems improper or unauthorized. (f) Persons Deemed Owners. The City and the Registrar may treat the person in whose name a Bond is registered in the bond register as the absolute owner of the Bond, whether the Bond is overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on the Bond and for all other purposes, and payments so made to a registered owner or upon the owner's order will be valid and effectual to satisfy and discharge the liability upon the Bond to the extent of the sum or stuns so paid. (g) Taxes, Fees and Charges. The Registrar may impose a charge upon the owner thereof for a transfer or exchange of Bonds sufficient to reimburse the Registrar for any tax, fee or other governmental charge required to be paid with respect to the transfer or exchange. (h) Mutilated, Lost, Stolen or Destroyed Bonds. If a Bond becomes mutilated or is destroyed, stolen or lost, the Registrar will deliver a new Bond of like amount, number, maturity date and tenor in exchange and substitution for and upon cancellation of the mutilated Bond or in lieu of and in substitution for a Bond destroyed, stolen or lost, upon the payment of the reasonable expenses and charges of the Registrar in connection therewith; and, in the case of a Bond destroyed, stolen or lost, upon filing with the Registrar of evidence satisfactory to it that the Bond was destroyed, stolen or lost, and of the ownership thereof, and upon furnishing to the Registrar an appropriate bond or /ndemnity in form, substance and amount satisfactory to it and as provided by law, in which both the City and the Registrar must be named as obligees. Bonds so surrendered to the Registrar will be cancelled by the Registrar and evidence of such cancellation must be given to the City. If the mutilated, destroyed, stolen or lost Bond has already matured or been called for redemption in accordance with its terms it is not necessary to issue a new Bond prior to payment. (i) Redemption. In the event any of the Bonds are called for redemption, notice thereof identifying the Bonds to be redeemed will be given by the Registrar by mailing a copy of the redemption notice by first class mail (postage prepaid) to the registered owner of each Bond to be redeemed at the address shown on the registration books kept by the Registrar and by publishing the notice if required by law. Failure to give notice by publication or by mail to any registered owner, or any defect therein, will not affect the validity of the proceedings for the redemption of Bonds. Bonds so called for redemption will cease to bear interest after the specified redemption date, provided that the funds for the redemption are on deposit with the place of payment at that time. 2.04. Appointment of Initial Registrar. The City appoints U.S. Bank National Association, Saint Paul, Minnesota, as the initial Registrar. The Mayor and the City Manager are authorized to execute and deliver, on behalf of the City, a contract with the Registrar. Upon merger or consolidation of the Registrar with another corporation, if the resulting corporation is a bank or trust company authorized by !aw to conduct such business~ the resulting corporation is authorized to act as successor Registrar. The City agrees to pay the reasonable and customary charges of the Registrar for the services performed. The City reserves the right to remove the Registrar upon 30 days' notice and upon the appointment of a successor Registrar, in which event the predecessor Registrar must deliver all cash and Bonds in its possession to the successor Registrar and must deliver the bond register to the successor Registrar. On or before each principal or interest due date, without further order of this Council, the City Finance Director must transmit to the Registrar money sufficient for the payment of all principal and interest then due. 4 2.05. Execution, Authentication and Delivery. The Bonds will be prepared under the direction of the City Manager and executed on behalf of the City by the signatures of the Mayor and the City Manager, provided that those signatures may be printed, engraved or lithographed facsimiles of the originals. If an officer whose signature or a facsimile of whose signature appears on the Bonds ceases to be such officer before the delivery of a Bond, such signature or facsimile will nevertheless be valid and sufficient for all purposes, the same as if the officer had remained in office until delivery. Notwithstanding such execution, a Bond will not be valid or obligatory for any purpose or entitled to any security or benefit under this Resolution unless and until a certificate of authentication on the Bond has been duly executed by the manual signature of an authorized representative of the Registrar. Certificates of authentication on different Bonds need not be signed by the same representative. The executed certificate of authentication on a Bond is conclusive evidence that it has been authenticated and delivered under this Resolution. When the Bonds have been so prepared, executed and authenticated, the City Manager will deliver the same to the Purchaser upon payment of the purchase price in accordance with the contract of sale heretofore made and executed, and the Purchaser is not obligated to see to the application of the purchase price. 2.06. Temporary Bonds. The City may elect to deliver in lieu of printed definitive Bonds one or more typewritten temporary Bonds in substantially the form set forth in Section 3 with such changes as may be necessary to reflect more than one maturity in a single temporary bond. Upon the execution and delivery of definitive Bonds the temporary Bonds will be exchanged therefor and cancelled. Section 3. Form of Bond. 3.01. The Bonds will be printed or typewritten in substantially the form on the following page. (The remainder of this page is intentionally left blank.) No. R- UNITED STATES OF AMERICA $ STATE OF MINNESOTA COUNTY OF ANOKA CITY OF COLUMBIA HEIGHTS GENERAL OBLIGATION TAX INCREMENT REFUNDING BOND SERIES 2004A Date of Original Issue Interest Rate Maturity Date CUSIP __% September 1, 20__ December 16, 2004 Registered Owner: Cede & Co. Principal Amount: Dollars The City of Columbia Heights, a duly organized and existing municipal corporation in Anoka County, Minnesota (the "City"), acknowledges itself to be indebted and for value received hereby promises to pay to the Registered Owner specified above or registered assigns, the Principal Amount specified above on the maturity date specified above, with interest thereon from the date hereof at the annual rate specified above, payable March 1 and September 1 in each year, commencing March 1, 2005, to the person in whose name this Bond is registered at the close of business on the fifteenth (15th) day (whether or not a business day) of the prior month. The interest hereon and, upon presentation and surrender hereof, the phncipal hereof are payable in lawful money of the United States of America by check or draft by U.S. Bank National Association, Saint Paul, Minnesota, as Bond Registrar, Paying Agent, Transfer Agent and Authenticating Agent, or its designated successor under the Resolution described herein. For the prompt and full payment of such principal and interest as the same respectively become due, the full faith and credit and taxing powers of the City have been and are hereby irrevocably pledged. The City may elect on March 1, 2008, and on any day thereafter to prepay Bonds due on or after September 1, 2008. Redemption may be in whole or in part and if in part, at the option of the City and in such manner as the City will determine. If less than all Bonds of a maturity are called for redemption, the City will notify The Depository Trust Company, New York, New York ("DTC") of the particular amount of such maturity to be prepaid. DTC will determine by lot the amount of each participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. Prepayments of the Bonds will be at a price of par plus accrued /p2erest. This Bond is one of an issue in the aggregate principal amount of $1,985,000 all of like original issue date and tenor, except as to number, maturity date, redemption privilege, and interest rate, all issued pursuant to a resolution adopted by the City Council on November 22, 2004 (the "Resolution"), for the purpose of providing money to refimd the outstanding principal amount of certain general obligation bonds of the City, pursuant to and in full conformity with the home rule charter of the City and the Constitution and laws of the State of Minnesota, including Minnesota Statutes, Sections 469.174 through 469.1799, as amended, and Minnesota Statutes, Chapter 475, as amended, and the principal hereof and interest hereon are payable primarily from tax increments resulting from increases in taxable valuation of real property in certain tax increment financing dislricts in the City as set forth in the Resolution to which reference is made for a full statement of rights and powers thereby conferred. The Columbia Heights Economic Development Authority, a body corporate and politic (the "EDA"), has pledged certain tax increments to the City for payment of the principal of and interest due on the Bonds pursuant to the terms of a Tax Increment Pledge Agreement, dated on or after December 1, 2004, by and between the City and the EDA. The full faith and credit of the City are irrevocably pledged for payment of this Bond and the City Council has obligated itself to levy ad valorem taxes on all taxable property in the City in the event of any deficiency of tax increments pledged to the payment of the Bonds, which taxes may be levied without limitation as to rate or amount. The Bonds of this series are issued only as fully registered Bonds in minimum denominations of $5,000 or any integral multiple thereof of single maturities. As provided in the Resolution and subject to certain limitations set forth therein, this Bond is transferable upon the books of the City at the principal office of the Bond Registrar, by the registered owner hereof in person or by the owner's attorney duly authorized in writing, upon surrender hereof together with a written instrument of transfer satisfactory to the Bond Registrar, duly executed by the registered owner or the owner's attomey; and may also be surrendered in exchange for Bonds of other authorized denominations. Upon such transfer or exchange the City will cause a new Bond or Bonds to be issued in the name of the transferee or registered owner, of the same aggregate principal amount, beating interest at the same rate and maturing on the same date, subject to reimbursement for any tax, fee or governmental charge required to be paid with respect to such transfer or exchange. The City and the Bond Registrar may deem and treat the person in whose name this Bond is registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose of receiving payment and for all other purposes, and neither the City nor the Bond Registrar will be affected by any notice to the contrary. The City has designated the issue of Bonds of which this Bond forms a part as "qualified tax exempt obligations" within the meaning of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended (the "Code") relating to disallowance of interest expense for financial institutions and within the $10 million limit allowed by the Code for the calendar year 2004. IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts, conditions and th/ngs required by the home rule charter of the City and the Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be performed preliminary to and in the issuance of this Bond in order to make it a valid and binding general obligation of the City in accordance with its terms, have been done, do exist, have happened and have been performed as so required, and that the issuance of this Bond does not cause the indebtedness of the City to exceed any constitutional, statutory or charter limitation of indebtedness. This Bond is not valid or obligatory for any purpose or entitled to any security or benefit under the Resolution until the Certificate of Pmthenficafion hereon has been executed by the Bond Registrar by manual signature of one of its authorized representatives. IN WITNESS WHEREOF, the City of Colmnbia Heights, Anoka County, M/nnesota, by its City Council, has caused this Bond to be executed on its behalf by the facsimile or manual signatures of the Mayor and City Manager and has caused this Bond to be dated as of the date set forth below. 7 Dated: December 16, 2004 CITY OF COLUMBIA HEIGHTS, MINNESOTA Its Mayor (Facsimile) (Facsimile) Its City Manager CERTIFICATE OF AUTIYENTICATION This is one of the Bonds delivered pursuant to the Resolution mentioned within. U.S. BANK NATIONAL ASSOCIATION By Its Authorized Representative The following abbreviations, when used in the inscription on the face of this Bond, will be construed as though they were written out in full according to applicable laws or regulations: TEN COM -- as tenants UNIF GIFT MIN ACT Custodian in common (Gust) TEN ENT -- as tenants by entireties under Uniform Gifts or Transfers to Minors JT TEN -- as joint tenants with right of survivorship and not as tenants in common Act ............ (State) Additional abbreviations may also be used though not in the above list. ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto the within Bond and all rights thereunder, and does hereby irrevocably constitute and appoint attorney to transfer the said Bond on the books kept for registration of the within Bond, with full power of substitution in the premises. Dated: Notice: The assignor's signature to this assignment must correspond with the name as it appears upon the face of the within Bond in every particular, without alteration or any change whatever. Signature Guaranteed: NOTICE: Signature(s) must be guaranteed by a financial institution that is a member of the Securities Transfer Agent Medallion Program ("STAMP"), the Stock Exchange Medallion Program ("SEMP"), the New York Stock Exchange, Inc. Medallion Signatures Program ("MSP") or other such "signature guarantee program" as may be determined by the Registrar in addition to, or in substitution for, STAMP, SEMP or MSP, all in accordance with the Securities Exchange Act of 1934, as amended. The Bond Registrar will not effect transfer of this Bond unless the information concerning the assignee requested below is provided. Name and Address: (Include information for all joint owners if this Bond is held by joint account.) Please insert social security or other identifying number of assignee 9 PROVISIONS AS TO REGISTRATION The ownership of the principal of and interest on the within Bond has been registered on the books of the Registrar in the name of the person last noted below. Date of Registration Registered Owner Signature of Officer of the Registrar December 16, 2004 Cede & Co. Federal ID # 13-2555119 3.02. The City Manager is directed to obtain a copy of the proposed approving legal opinion of Kennedy & Graven, Chartered, Minneapolis, Minnesota, which is to be complete except as to dating thereof and will cause the opinion to be printed on or accompany each Bond. Section 4. Bonds; Security; Escrow. 4.01. Funds and Accounts. For the convenience and proper administration of the moneys to be borrowed and repaid on the Bonds and the Prior Bonds (as defmed in the resolution providing for the issuance and sale of the Bonds), and to provide adequate and specific security for the Purchaser and holders from time to time of the Bonds and Prior Bonds, there is hereby created a special fund to be designated the Tax Increment Refunding Bonds, Series 2004A Debt Service Fund (the "Series 2004A Debt Service Fund") to be adm/nistered and maintained by the Finance Director as a bookkeeping account separate and apart from all other funds maintained in the official fmancial records of the City. The Fund will be maintained in the manner herein specified until all of the Prior Bonds have been paid and until all of the Bonds and the interest thereon will have been fully paid. There will be maintained in the Fund two separate accounts, to be designated the Escrow Account and Debt Service Account. (a) Escrow Account. The Escrow Account will be maintained as an Escrow Account (the "Escrow Account") with U.S. Bank National Association in St. Paul, Minnesota, which is a suitable financial institution within the State, whose deposits are insured by the Federal Deposit Insurance Corporation, whose combined capital and surplus is not less than $500,000 and said financial institution is hereby designated escrow agent (the "Escrow Agent") for the Escrow Account. All proceeds of the sale of the Bonds will be received by the Escrow Agent and applied to fund the Escrow Account or to pay costs of issuing the Bonds. Proceeds of the Bonds not used to pay costs of issuance are hereby irrevocably pledged and appropriated to the Escrow Account, · · ~ ,T · ,, ' ,ur, be invested in securities Logethe, vvlt,, all mves~ent '~ "" ~o ,~atm%o thereon. The Escrow Account -- m maturing or callable at the option of the holder on such dates and bearing interest at such rates as will be required to provide sufficient funds, together with any cash or other funds retained in the Escrow Account, to pay when due the interest to accrue on each Bond to and including September 1, 2005 (the "Redemption Date"), and to pay when due on the Redemption Date the principal amount of each of the Prior Bonds then outstanding. From the Escrow Account there will be paid (i) all interest paid on, or to be paid on, or to accrue on, the Bonds to and including the Redemption Date, and (ii) the principal of the Prior Bonds due by reason of redemption on the Redemption Date. The Escrow Account will be irrevocably appropriated to the payment of the principal of and interest on the Bonds until the proceeds of the Bonds therein are applied to prepayment of the Prior Bonds. The moneys in the Escrow Account will be used solely for the proposes herein set forth and for no other purpose, except that any surplus in the Escrow Account may be remitted to the City, all in accordance with the 10 Escrow Agreement (hereafter defined) by and between the City and the Escrow Agent. Any moneys remitted to the City upon termination of the Escrow Agreement will be deposited in the Debt Service Account. Co) Debt Service Account. To the Debt Service Account there is hereby pledged and irrevocably appropriated and there will be credited: (i) any balance remitted to the City upon the termination of the Escrow Agreement; (ii) any balance remaining on September 2, 2005, in the Debt Service Fund created by the City Council resolution authorizing the issuance and sale of the Refunded Bonds (Prior Resolution); (iii) any collections of all taxes hereafter levied for the payment of the Bonds and interest thereon; (iv) all investment earnings on funds in the Debt Service Account; (v) after the Redemption Date, all Pledged Tax Increment received by the City from the EDA pursuant to the Pledge Agreement; (vi) accrued interest (if any) received upon delivery of the Bonds to the extent not required to fund the Escrow Account; and (vii) any and all other moneys which are properly available and are appropriated by the City Council to the Debt Service Account. The amount of any surplus remaining in the Debt Service Account when the Bonds and interest thereon are paid will be used as provided in Section 475.61, Subdivision 4 of the Act. 4.02. Findings. It is hereby found and determined that based upon information presently available from the City's fmancial advisers, the issuance of the Bonds will result in a reduction of debt service cost to the City on the Prior Bonds, such that the present value of such debt service or interest cost savings (the "Reduction") is 8.595% of the debt service on the Prior Bonds. The Reduction, after the inclusion of all authorized expenses of refunding in the computation of the effective interest rate on the Bonds, is adequate to authorize the issuance of the Bonds as provided by Minnesota Statutes, Section 475.67, Subdivisions 12 and 13. 4.03. The moneys in the Debt Service Account will be used solely to pay the principal of and interest on the Bonds or any other bonds hereafter issued and made payable from the Fund. No portion of the proceeds of the Bonds will be used directly or indirectly to acquire higher yielding investments or to replace funds which were used directly or indirectly to acquire higher yielding investments, except (i) for a reasonable temporary period until such proceeds are needed for the purpose for which the Bonds were issued, and (ii) in addition to the above, in an amount not greater than the lesser of five percent of the proceeds of the Bonds or $100,000. To this effect, any proceeds of the Bonds and any sums from time to time held in the Fund (or any other City account which will be used to pay principal and interest to become due on the Bonds) in excess of amounts which under the applicable federal arbitrage regulations may be invested without regard as to yield will not be invested at a yield in excess of the applicable yield restrictions imposed by the arbitrage regulations on such investments after taking into account any applicable temporary periods or minor portion made available under the federal arbitrage regulations. In addition, the proceeds of the Bonds and money in the Fund will not be invested in obligations or deposits issued by, guaranteed by or insured by the United o, .... nash-dhie,~tmiLy u~cu, ,~ mud to u~ c.~t¢~,L thuL such: ma[c~ or any' agency or: ._ _,~1.,~ ,l.~^.e :.c *~' ........ llivcStiil~ll[ would cause the Bonds to be federally guaranteed within the meaning of Section 149(h) of the Internal Revenue Code of 1986, as amended (the "Code"). 4.04. General Obligation Pledge. For the prompt and full payment of the principal and interest on the Bonds, as the same respectively become due, the full faith, credit and taxing powers of the City will be and are hereby irrevocably pledged. If the balance in the Escrow Account or Debt Service Account is ever insufficient to pay all principal and interest then due on the Bonds and any other bonds payable therefrom, the deficiency will be promptly paid out of monies in the general fund of the City which are available for such purpose, and such general fund may be reimbursed with or without interest from the Escrow Account or Debt Service Account when a sufficient balance is available therein. 11 4.05. It is determined that estimated collection of Pledged Tax Increment for the payment of principal and interest on the Bonds after the Redemption Date will produce at least five percent in excess of the amount needed to meet when due, the principal and interest payments on the Bonds maturing after the Redemption Date, and that no tax levy is needed at this time. 4.06. Filing. The City Manager is authorized and directed to file a certified copy of this resolution with the Manager of Property Records and Taxation of Anoka County and to obtain the certificate required by Section 475.63 of the Act. 4.07. Prior Resolution Pledges. The pledges and covenants of the City made by the Prior Resolution relating to the tax increments and improvements financed by the Bonds and the Prior Bonds are restated and confirrned in all respects. The provisions of the Prior Resolution are hereby supplemented to the extent necessary to give full effect to the provisions of this resolution. Section 5. Refimding; Findings; Redemption of Refunded Bonds. 5.01. As of the date of delivery of and payment for the Bonds proceeds of the Bonds, in the amount of $2,711,259.02 plus accrued interest on the Bonds less necessary expenses of the issuance of the Bonds (Proceeds), together with other funds (Funds) in the amount of $765,325.15 are hereby pledged and appropriated and will be deposited in the Escrow Account. 5.02. It is hereby found and determined that the Proceeds and Funds available and appropriated to the Escrow Account will be sufficient, together with the permitted earnings on the investment of the Escrow Account, to pay principal of and interest on the Bonds through the Redemption Date, and to pay at maturity or redemption all of the principal of and redemption premium (if any) on the Refunded Bonds. 5.03. Securities purchased fi:om the monies in the Escrow Account will be limited to securities specified in Section 475.67, Subdivision 8 of the Act. Ehlers & Associates, as agent for the City of Columbia Heights is hereby authorized and directed to purchase for and on behalf of the City of Columbia Heights and in its name, appropriate securities to fund the Escrow Account. Upon the issuance and delivery of the Bonds, the securities so purchased will be deposited with the Escrow Agent and held pursuant to the terms of the Escrow Agreement and the Resolution. 5.04. The Refunded Bonds maturing on September 1, 2006 and thereafter will be redeemed and prepaid on the Redemption Date. The Refunded Bonds will be redeemed and prepaid in accordance with their terms and in accordance with the terms and conditions set forth in the form of Notice of Call for Redemption attached hereto as Attachment A which terms and conditions are hereby approved and incorporated herein by reference. The Regis~ar for the Reb,~nded Bonds is authorized and dkected to send a copy of the Notice of Redemption to each registered holder of the Refunded Bonds. 5.05. Escrow Agreement. On or prior to the delivery of the Refunding Bonds, the Mayor and the City Manager are hereby authorized and directed to execute on behalf of the City an escrow agreement (Escrow Agreement) with the Escrow Agent in substantially the form now on file with the City Manager. All essential terms and conditions of the Escrow Agreement including payment by the City of reasonable charges for the services of the Escrow Agent, are hereby approved and adopted and made a part of this resolution, and the City covenants that it will promptly enforce all provisions thereof in the event of default thereunder by the Escrow Agent. 12 Section 6 Authentication of Transcript. 6.01. The officers of the City are authorized and directed to prepare and furnish to the Purchaser and to Kennedy & Graven, Chartered, as bond counsel, certified copies of proceedings and records of the City relating to the Bonds and to the financial condition and affairs of the City, and such other certificates, affidavits and transcripts as may be required to show the facts within their knowledge or as shown by the books and records in their custody and under their control, relating to the validity and marketability of the Bonds, and such instruments, including any heretofore furnished, may be deemed representations of the City as to the facts stated therein. 6.02. The Mayor, City Manager and Finance Director are hereby authorized and directed to certify that they have examined the Official Statement prepared and circulated in connection with the issuance and sale of the Bonds and that to the best of their knowledge and belief the Official Statement is a complete and accurate representation of the facts and representations made therein as of the date of the Official Statement. 6.03. The City authorizes the Purchaser to forward the amount of Bond proceeds allocable to the payment of issuance expenses (other than amounts payable to Kennedy & Graven, Chartered, as bond counsel) to U.S. Trust Company, Minneapolis, Minnesota on the closing date for further distribution as directed by the City's financial advisor, Ehlers & Associates, Inc. Section 7. Tax Covenants. 7.01. The City covenants and agrees with the holders from time to time of the Bonds that it will not take or permit to be taken by any of its officers, employees or agents any action which would cause the interest on the Bonds to become subject to taxation under the Internal Revenue Code of 1986, as amended (the "Code"), and the Treasury Regulations promulgated thereunder, in effect at the time of such actions, and that it will take or cause its officers, employees or agents to take, all affirmative action within its power that may be necessary to ensure that such interest will not become subject to taxation under the Code and applicable Treasury Regulations, as presently existing or as hereafter amended and made applicable to the Bonds. 7.02. (a) The City will comply with requirements necessary under the Code to establish and maintain the exclusion from gross income of the interest on the Bonds under Section 103 of the Code, including without limitation requirements relating to temporary periods for investments, limitations on amounts invested at a yield greater than the yield on the Bonds, and the rebate of excess investment earnings to the United States if the Bonds (together with other obligations reasonably expected to be issued in calendar year 2004) exceed the small-issuer exception amount of $5,000,000. Sl~Iiall ge rui proposesUl-r ttuiliiiyilig~:t:-"--JUl'c-- .~_[lic issuerciucpuun to the l~uciai a-bia'a lcbu[. requirements, the City finds, determines and declares that the aggregate face amount of all tax-exempt bonds (other than private activity bonds) issued by the City (and all subordinate entities of the City) during the calendar year in which the Bonds are issued and outstanding at one time is not reasonably expected to exceed $5,000,000, all within the meaning of Section i48(f)(4)(C) of the Code. Furthermore: (i) each of the Prior Bonds was issued as part of an issue which was treated as meeting the rebate requirements by reason of the exception for governmental units issuing $5,000,000 or less of bonds; (ii) the average maturity of the Bonds does not exceed the remaining average maturity of the Prior Bonds; and 13 (iii) no maturity of the Bonds has a maturity date which is later than the date which is 30 years after the date the original bonds were issued. 7.03. The City further covenants not to use the proceeds of the Bonds or to cause or permit them or any of them to be used, in such a manner as to cause the Bonds to be or become "private activity bonds" within the meaning of Sections 103 and 141 through 150 of the Code. 7.04. In order to qualify the Bonds as "qualified tax-exempt obligations" within the meaning of Section 265 (b)(3) of the Code, the City makes the following factual statements and representations: (a) the Bonds are not "private activity bonds" as defined in Section 141 of the Code; (b) the City hereby designates the Bonds as "qualified tax-exempt obligations" for purposes of Section 265(b)(3) of the Code; (c) the reasonably anticipated amount of tax-exempt obligations (other than private activity bonds that are not qualified 501(c)(3) bonds) which will be issued by the City (and all subordinate entities of the City) during calendar year 2004 will not exceed $10,000,000; ' (d) not more than $10,000,000 of obligations issued by the City during calendar year 2004 have been designated for purposes of Section 265(b)(3) of the Code; and (e) the Bonds have a maturity date which is not later than the date which is 30 years after the date the original tax-exempt obligation related to the Prior Bonds was issued. 7.05. The City will use its best efforts to comply with any federal procedural requirements which may apply in order to effectuate the designations made by this section. Section 8. Book-Entry System; Limited Obligation of City. 8.01. The Bonds will be initially issued in the form of a separate single typewritten or printed fully registered Bond for each of the maturities set forth in Section 1.03 hereof. Upon initial issuance, the ownership of each Bond will be registered in the registration books kept by the Bond Registrar in the name of Cede & Co., as nominee for The Depository Trust Company, New York, New York, and its successors and assigns ("DTC"). Except as provided in this section, all of the outstanding Bonds will be registered in the registration books kept by the Bond Registrar in the name of Cede & Co., as nominee of DTC. R o? With respect to Bonds registered in the re~Stmtinn hnnk~ kent hxr *he I:lnnrl l~ffiSt'rar in the name of Cede & Co., as nominee of DTC, the City, the Bond Registrar and the Paying Agent will have no responsibility or obligation to any broker dealers, banks and other financial institutions fi.om time to time for which DTC holds Bonds as securities depository ("Participants") or to any other person on behalf of which a Participant holds an interest in the Bonds, including but not limited to any responsibility or obligation with respect to (i) the accuracy of the records of DTC, Cede & Co. or any Participant with respect to any ownership interest in the Bonds, (ii) the delivery to any Participant or any other person (other than a registered owner of Bonds, as shown by the registration books kept by the Bond Registrar,) of any notice with respect to the Bonds, including any notice of redemption, or (iii) the payment to any Participant or any other person, other than a registered owner of Bonds, of any amount with respect to principal of, premium, if any, or interest on the Bonds. The City, the Bond Registrar and the Paying Agent may treat and consider the person in whose name each Bond is registered in the registration books kept by the Bond Registrar as the 14 holder and absolute owner of such Bond for the purpose of payment of principal, premium and interest with respect to such Bond, for the purpose of registering transfers with respect to such Bonds, and for all other purposes. The Paying Agent will pay all principal of, premium, if any, and interest on the Bonds only to or on the order of the respective registered owners, as shown in the registration books kept by the Bond Registrar, and all such payments will be valid and effectual to fully satisfy and discharge the City's obligations with respect to payment of principal of, premium, if any, or interest on the Bonds to the extent of the sum or sums so paid. No person other than a registered owner of Bonds, as shown in the registration books kept by the Bond Registrar, will receive a certificated Bond evidencing the obligation of this resolution. Upon delivery by DTC to the City Manager of a written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., the words "Cede & Co.," will refer to such new nominee of DTC; and upon receipt of such a notice, the City Manager will promptly deliver a copy of the same to the Bond Registrar and Paying Agent. 8.03. Representation Letter. The City has heretofore executed and delivered to DTC a Blanket Issuer Letter of Representations (the "Representation Letter") which shall govern payment of principal of, premium, if any, and interest on the Bonds and notices with respect to the Bonds. Any Paying Agent or Bond Registrar subsequently appointed by the City with respect to the Bonds will agree to take all action necessary for all representations of the City in the Representation letter with respect to the Bond Registrar and Paying Agent, respectively, to be complied with at all times. 8.04. Transfers Outside Book-Entry System. In the event the City, by resolution of the City Council, determines that it is in the best interests of the persons having beneficial interests in the Bonds that they be able to obtain Bond certificates, the City will notify DTC, whereupon DTC will notify the Participants, of the availability through DTC of Bond certificates. In such event the City will issue, transfer and exchange Bond certificates as requested by DTC and any other registered owners in accordance with the provisions of this Resolution. DTC may determine to discontinue providing its services with respect to the Bonds at any time by giving notice to the City and discharging its responsibilities with respect thereto under applicable law. In such event, if no successor securities depository is appointed, the City will issue and the Bond Registrar will authenticate Bond certificates in accordance with this resolution and the provisions hereof will apply to the transfer, exchange and method of payment thereof. 8.05. Payments to Cede & Co. Notwithstanding any other provision of this Resolution to the contrary, so long as a Bond is registered in the name of Cede & Co., as nominee of DTC, payments with respect to principal of, premium, if any, and interest on the Bond and notices with respect to the Bond will be made and given, respectively in the manner provided in DTC's Operational Arrangements, as set forth in the Representation Letter. Section 9. Defeasance. When all Bonds and all interest thereon, have been discharged as provided in this section, all pledges, covenants and other rights granted by this resolution to the holders of the Bonds will cease, except that the pledge of the full faith and credit of the City for the prompt and full payment of the principal of and interest on the Bonds will remain in full force and effect. The City may discharge all Bonds which are due on any date by depositing with the Registrar on or before that date a sum sufficient for the payment thereof in full. If any Bond should not be paid when due, it may nevertheless be discharged by depositing with the Registrar a sum sufficient for the payment thereof in full with interest accrued to the date of such deposit. 15 Section 10. Continuing Disclosure. 10.01. In order to qualify the Bonds for limited continuing disclosure under paragraph (d)(2) of Securities and Exchange Commission Rules, Section 15c2-12 (the "SEC Rule"), the City makes the following factual statement and representation: As of the date of delivery of the Bonds, the City will not be an obligated person (as defined in paragraph (f) of the SEC Rule) with respect to more than $10,000,000 in aggregate amount of outstanding municipal securities, including the Bonds and excluding municipal securities that were exempt from the SEC Rule pursuant to paragraph (d)(1) thereof. 10.02. The City hereby covenants and agrees that it will comply with and carry out all of the provisions of the Continuing Disclosure Certificate. Notwithstanding any other provision of this Resolution, failure of the City to comply with the Continuing Disclosure Certificate is not to be considered an event of default with respect to the Bonds; however, any Bondholder may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the City to comply with its obligations under this section. 10.03. "Continuing Disclosure Certificate" means that certain Continuing Disclosure Certificate executed by the Mayor and City Manager and dated the date of issuance and delivery of the Bonds, as originally executed and as it may be amended from time to time in accordance with the terms thereof. (The remainder of this page is intentionally left blank.) 16 Passed and adopted this 22nd day of November, 2004. CITY OF COLUMBIA HEIGHTS, MINNESOTA Attest: Its Mayor Its City Manager 17 The motion for the adoption of the foregoing resolution was duly seconded by Member , and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. STATE OF MINNESOTA ) ) COUNTY OF ANOKA ) SS. ) CITY OF COLUMBIA HEIGHTS ) I, the undersigned, being the duly qualified and acting Manager of the City of Columbia Heights, Anoka County, Minnesota, do hereby certify that I have carefully compared the attached and foregoing extract of minutes of a regular meeting of the City Council of the City of Columbia Heights held on November 22, 2004 with the original minutes on file in my office and the extract is a full, true and correct copy of the minutes insofar as they relate to the issuance and sale of $!,985,000 General Obligation Tax_ Increment Refunding Bonds, Series 2004A of the City. WITNESS My hand officially as such City Manager and the corporate seal of the City this __ day of ,2004. (SEAL) City Manager City of Columbia Heights, Minnesota EXltIBIT A BID TABULATION $2,000,000* General Obligation Tax Increment Refunding Bonds, Series 2004A CITY OF COLUMBIA HEIGHTS, MINNESOTA SALE: November 22, 2004 AWARD: UNITED BANKERS' BANK RATING: Moody's Investors Service "Al" BBI: 4.52% NET TRUE NAME OF BIDDER MATURITY RATE REOFFERING PRICE INTEREST INTEREST (September 1) YIELD COST RATE UNITED BANKERS' BANK Bloomington, Minnesota 2006 2.000% 2.000% 2007 2.250% 2.250% 2008 2.500% 2.500% 2009 2.750% 2.750% $1,994,015.00 $141,960.52 2.4752% WELLS FARGO BROKERAGE SERVICES, LLC Minneapolis, Minnesota 2006 2.250% 2007 2.375% 2008 2.450% 2009 2.750% $1,996,776.40 $142,696.85 2.487O% NORTHLAND SECURITIES, INC. Minneapolis, Minnesota 2006 2.150% 2007 2.300% 2008 2.700% 2009 2.950% $1,994,000.00 $150,443.65 2.6228% CRONIN & COMPANY, INC. Minneapolis, Minnesota 2006 2.500% 2007 2.500% 2008 3.000% 2009 3.000% $2,006,062.50 $152,691.67 2.6523% UMB BANK, N.A. Kansas City, Missouri 2006 2.300% 2007 2.550% 2008 2.700% 2009 2.850% $1,992,220.00 $157,231.77 2.7440% *Subsequent to bid opening the issue size was decreased to $1,985,000 with the 2006 maturity decreased $5,000 to $600,000, the 2007 maturity decreased $5,000 to $610,000, and the 2008 maturity decreased $5,000 to $625,000 in maturity value. Adjusted Price ~ $1,979,064.85 Adjusted Net Interest Cost- $140,971.61 Adjusted TIC - 2.4755% EXItlBIT B NOTICE OF CALL FOR REDEMPTION $2,399,720.75 GENERAL OBLIGATION TAX INCREMENT CAPITAL APPRECIATION BONDS OF 1990, SERIES A CITY OF COLUMBIA HEIGHTS ANOKA COUNTY, MINNESOTA NOTICE IS HEREBY GIVEN that, by order of the City Council of the City of Columbia Heights, Anoka County, Minnesota, there have been called for redemption and prepayment on SEPTEMBER 1, 2005 all outstanding bonds of the City designated as General Obligation Tax Increment Capital Appreciation Bonds of 1990, Series A (the "Bonds"), dated August 23, 1990, having a stated maturity date of September 1, in the years 2006 through 2009, both inclusive, totaling $953,903.45 in principal amount, and with the following CUSIP numbers: YearofMaturity PrincipalAmount CUSIP 2006 $301,281.60 197684JD6 2007 280,977.20 197684JE4 2008 259,780.40 197684JF1 2009 111,864.25 197684 JG9 The bonds are being called at a price of par plus accrued interest to September 1, 2005, on which date all interest on said bonds will cease to accrue. Holders of the bonds hereby called for redemption are requested to present their bonds for payment at the main office of Wells Fargo Bank, National Association, in the City of Minneapolis, Minnesota (formerly known as Norwest Bank Minnesota, National Association), on or before September 1, 2005, at the following address: Wells Fargo Bank, National Association Attention: Corporate Trust Operations 255 Second Avenue South Minneapohs, IvEq 55479-0i i3 Important Notice: In compliance with the Economic Growth and Tax Relief Reconciliation Act of 2001, federal backup withholding tax will be withheld at the applicable backup withholding rate in effect at the time the payment by the redeeming institutions if they are not provided with your social security number or federal employer identification number, properly certified. This requirement is fulfilled by submitting a W-9 Form, which may be obtained at a bank or other financial institution. The Registrar will not be responsible for the selection or use of the CUSIP number, nor is any representation made as to the correctness indicated in the Redemption Notice or on any Bond. It is included solely for convenience of the Holders. Dated: December 16, 2004. BY ORDER OF THE CITY COUNCIL OF THE CITY OF COLUMBIA HEIGHTS, MINNESOTA By /s/ Walter Fehst City Manager 255658vl (BWJ) CL162-27 CITY COUNCIL LETTER Meeting of November 22 2004 AGENDA SECTION: Consent ORIGINATING DEPARTMENT CITY MANAGER ITEM: Transfer Funds from General Fund to Police BY: Thomas M. Johnso, RA~-~/- BY NO. Dept. Budget to Reimburse Police O.T. Line DATE: November 10, 200:4 ~' ~/ DATE: BACKGROUND During the past four months, the Police Department has been involved in off duty employment details that are handled tl2'ough the department. These details were for security at Ulzique Thrift Store, Immaculate Conception Church activities, testifying in court, security detail at the Middle School and High School, CHHS activities, and a court appearance for a police officer in a civil case. Since this type of off duty employment is handled through the department, officers have signed np and worked these details since July 8, 2004. We have received checks from the following entities: Unique TN'iR Store--four checks in the amounts of $630, $855, $720, $1,260--and Immaculate Conception Church for $663.75, a check from Robert Manson, Attorney at law, for witness fees for Officer Shin in the mnount of $135, Columbia Heights High School $135, Independent School District #13 $1,485, and Keith Johnson (civil case, police officer testimony) $193. According to the City Finance Dh-ector, this money is considered revenue and was placed in the City General Ftmd. ANALYSIS/CONCLUSION The Police Depmllnent is requesting that the City Council pass a motion requiring the $6,076.75 received fi'om Unique TNrift Store, hnmaculate Conception Church; Robert Manson, Attorney at Law, Independent School District, CHHS activities, and Keith Johnson to cover the costs of off duty officers working security or testifying at these locations be returned to the 2004 Police Departnient budget line #1020. RECOMMENDED MOTION: Transfer $6,076.75, the total mnount received ]~Olll Ullique Thrift Store, Irmnaculate Conception Church, Robert Manson, Attorney at Law, Independent School District #13, Colmnbia Heights High School, mid Keith Jolmson for offduty security wo£~:ed mid/or testifying in court, fi'om the General Fund to the Police Department 2004 budget under line #1020, police overtime. TMJ:mld 04-134 COUNCIL ACTION: P. 103 City of Columbia Heights Police Department MEMO To: Chief Thomas Johnson From: Captain William J. Rodd~ Subject: Overtime Transfer Date: October 21, 2004 Attached is a list of the overtime received from July 8th through October 21 st, 2004 from outside sources that has been paid to CHPD for services of our personnel. Please request reimbursement of these fi.rods to our overtime account. Unique Thrift INVOICE # DATE AMOUNT 015 7-08-04 $ 630.00 017 8-02-04 855.00 025 10-01-04 720.00 026 10-01-04 1260.00 Immaculate Conception Church INVOICE # DATE AMOUNT 018 8-13-04 $ 663.75 Robert Manson 019 9-24-04 135.00 Total Transfer Amount $ 4263.75 P. 104 INVOICE Columbia Heights Police Department Date: July 8, 2004 Invoice #: 2004-015 Customer Name: Address: Home Phone: Unique Thrift-At-tn: Lee 2201 37th Ave NE, Columbia Heights, MN 55421 Work Phone: 763-788-5250 Request for: Tue. 6-01-04 Fri. 6-04-04 Sat. 6-05-04 Tue. 6-08-04 Sat 6-12-04 Sat. 6-19-04 Sat. 6-26-04 i Police Officers for: June 2004 1000-1400 ('No Officer) 1600-2000 (No Officer) 1000-1400 Ni 4hrs 1000-1400 Ni 4hrs 1000-1200 N[ 2hrs 1000-1400 Bo 4hrs 1000-1400 (No Officer) nrr r r~rc [NFr~R2~Za T!ON Number of Officers: 4 Hours: 14 ~?age is $45. O0 per hour. Total Due: $630.00 Make checks payable to tile "City. of Columbia Heights". Please mail payment to: City of Columbia Heights Police Department, 559 Mill Street NE, Columbia Heights, IVIN 55421 Officer(s) on Duty: Amount Received: FOR DEPARTMENTAL USE ONLY Off Duty: ~ 30 °2 P. 1 fi5tie: NashSales, lnc. DATE INVOICE NO COMMENT 07/08/04 2004-015 ~O~T 630.00 DISCOUNT .00 008904 630. O0 CHECK: 008~' ' 704 07/15/04 Czty of Columbia Heights CHK TOTAL: 630.00 PAY TO THE ORDER OF: Nash Sales, Inc. 1387 Cope Ave. E. Maplewood, MN 55109 (651) 773-8077 *SIX HUNDRED THIRTY DOLLARS AND NO Anchor Bank Nosh'St. Paul, MN 75-882-960 008904 City of Columbia Heights City of Col. Hgts Police Dept 559 Mill Street NE Columbia Heights MN 55421 CENTS DATE 07/15/04 AMOUNT ******'630.00' P. 106 INVOICE Columbia Heights Police Department Date: August 2, 2004 Invoice #: 2004-017 Customer Name: Address: Home Phone: Unique Tlzrift -Attn: Shawn Piotrowicz 2201 3Th Ave NE, Columbia Heights, ~fN 55421 Work Phone: 763-788-5250 Reauest for: Fri. 7-02-04 Sar. 7-03-04 Mom 7-05-04 Ssi. 7-10-04 Tue. 7-13-04 Sat. 7-17-04 · Sar. 7-24-04 Sat. 7-31-04 i Police Officers for: July 2004 i200-1600 $c ('.No Of±lcer) i200-1500 Ni 4hzs !200-1300 Ni !b~r (.~-o OfrScer) !200-i600 Nrc 4hfs 124_:., - 1645Nfl '2 h_r s i200-1600 Ai 41~s BI£LI~¥G I~?OPO/L4 Number of O£±]cers: 6 Hours: 19 ~-f/k~ge is $45. O0 pe',-' Total Due: $855.1)0 Make checks payable to rl~e "Ci~' of Columbia Heights". Please mail payment to: City of Columbia Heights Police Department. 559 Mill Street NE. Columbia Heights. MN 55421 Officer(s) on Duty: Amount Received: FOR DEP,4RT~fE.¥Z.4L USE OIYL Y · o o Off Duty: ~.5 ~ Date: P. 107 Nash Sales, Inc. DATE iNr¢OICE NO COMMENT s/o2/o . 2oo _-oz7 .AMOUNT 855.00 DISCOUNT .00 009024 ~T AMOUNT 855.00 Nash Sales, Inc. 28.7 Cope Ave. =_. Mapiewood, MN 55109 {651) 773-a077 *EIGHT k7j%rDRED FIFTY Fi'%'i DOLLARS .Anchor 3ank Nonn St. ?aui, MN 75-882-960 "}rD NO CENTS DATE "~ ~/'04 08/-~ AMOUNT P. 108 INVOICE Columbia Heights Police Department Date: October 1, 2004 Invoice #: 2004-025 Customer Name: Address: Home Phone: Unique Tin:iff-Attn: Lee 2201 37t~` AveNE, Columbia Heights, ,.'vfN 55421 Work Phone: 763-788-5250 Request for: 1_ u~e.6-~J s-iJ . Fri. 8-06-04 Tue. 8-10-04 Sar. 8-14-04 Fd. 8-20-04 Fri. 8-27-04 Number of Officers: Hours: 16 ~.P2'zge is S45. OO per hour. Total Due: $720.1)0 Make checks payable to lhe "City of Columbia Heights". Please mail payment to: City of Columbia Heights Police Department. 559 Mill Street NE. Columbia Heights. MN 55421 Officer(s) on Duty: Amount Received: FOR DEPARTM.-.~fVZ.-tL USE Of'fL Y Off Duty: P' 10_9_.re: Nash Sales, Inc. 009241 DATE IN¥OICE NO COMMENT AMOUNT DISCOUNT NET AMOUNT 0/01/04 2004-026 Sept 04 1,260.00 .00 1,260.00 0/01/04 2004025 August 04 720.00 .00 720.00,/ _~_m._A: :3a9£4i.~ .0/15 04 ~'t-z-__ _ ~.--~_ :io±umlBia Hei--hns_ u----~, .-~_.-_~: i,:80. .C Nash Sales, ]nc. ~387 Cope Ave. E. Mapiewood, MN 55109 !651) 773-$077 Anchor Bank NorTh St. Paul, N,1N 75-882-960 009241 .... · of C,s!um2c i ~ PAY - TO TN~ 'ill-/ of Cc!. HSzs u~l ~ Dep~ ORDER S~9 Hill S~ree~ NE P. 110 INVOICE Columbia Heights Police Department Date: October. 1, 2004 Invoice #: 2004-026 Customer Name: Address: Home Phone: Unique Thrift-Attn: Lee 2201 37'h Ave NE, Columbia Heights, MN 55421 Work Phone: 763-788-5250 Request for: Sar. 9-04-0e Mort. 9-06-04 Fri. 9-10-04 Sar. 9-i!-04 Sat. 9- ! 8-04 Fri. 9-24-04 ~ _,h.,~ OffiCers ~br: ~ep.,mb,~r 2004 1 ~00-1500 Ko 4hfs 0900-!S00 Ko 6hrs (Ho]iday Premium) lS00-!900 Bo 41~'s 1500-1900 Ni 4I~s Number of Offqcers: [~ours7 20 regnlnr/6 Premium [,'Vage is S45. O0 ;~r..,'2Pre;.n Rate $60. O0/hr. Total Due: S1260.80 Make checks payable to the "City.' of Columbia Heights". Please mail payment to: City of Columbia Heights Police Department. 559 Mill Street NE, Columbia Heights. MN _<5421 Officer(s) on Duty: Amount Received: FOR DEPARZkr£"NTAL USE OiYZ Y ~= Off Duty: / E ~ 0 Date: P. 111 NashSales, lnc. DATE INVOICE NO COMMENT 0/01/04 2004-026 Sept 04 0/01/04 2004025 August 04 AMOUNT 1,260.00 720.00 DISCOUNT o00 .00 009241 NET AMOUNT 1,260.00 720.00 PAY TO THE ORDER OF: Nosh Sales, Inc. 1387 Cooe Ave. --_. Maplewood, MN 55109 (651) 773-8077 ,Anchor Bank North SL Paul, MN 75-882-960 '~ONE THOUSA_'qD NiNEr_~sx~,~'~ ............. .__,=_-~_ _; _~=__n .... .~-zc_..~ :Z_ND NO riENT S DATE ! 0 / i 5/." il, 4 009241 A ,%1 O U N T P. 112 INVOICE Columbia Heights Police Department Date: August 13, 2004 Invoice #: 2002-018 Customer Name: Immaculate Conception Church (Attn: Fun Fest 2004 Committee) Address: 4030 Jackson Street NE Home Phone: Reauesr for: 1 Saturday August 7~h 2(104 Sunday' August 8'h 200'4 Work Phone: 76.~-/88-906;, Police Officers for: ~xo~ ~s 1 ,' O0-~o l ~ ) 6.2~ hour Ko~s (1100-!930) 8.50 hours 770:¥ Number of Officers: 2 Hours: 14.75 hours [To, ge is S45. O0 per ,5our. Total Due: $663.75 Make checks payable to the "City.' of Columbia Heigi~ts". Please mail payment to: City of Columbia Heights Police Department. 559 Mill Street NE. Columbia Heights. MN 55421 Officer(s) on Duty: ,aumottnt Received: FOR DE?ART:krE~¥Z4L USE O~x/Z Y P. 113 i'HE CHURCH OF THE !ACULATE CONCEPTION or: ~voice # 002-018 City of Columbia Heights Police Dept Date Due Date 08/1~/2004 08/13/2004 Total: Date: Amount $663.75 Discount Total: 22067 $663.75 08/18/2004 Check: 22067 Paid Memo $663.75 Police Officers at Fun Fest $663.75 THE r',, ,,t~ u,~,,~ OF THE !MMACUL~,TF_ CONCh,UT]ON -~030 JACXSCN STREW, NB. CCLUMBIA HEIGHTS, MN Si:< Hundred Six,b'-Three and 75 ,,' 100 Ocflars .... Cit'./of ,Columbia Heights Police C, ep[ -;=CMill ~' ='''- Columbia Heiahts, MN := c~ NORTHEAST BANK MINNEAPOLIS. MN - ,612-379-8811 COLUMBIA HEIGHTS, MN - 763-788-935t COON RAPIDS, MN - 7,53-784-3533 YOUR IF. IDE?ENDENT CC,'vlMUNI?¢ BANK 17-i3-910 22 - 22067 DATE -' MCUNT P. 114 INVOICE Columbia Heights Police Department Date: September 24, 2004 Invoice #: 2002-019 Customer Name: Address: Home Phone: Robert Manson Attorney - At-tn: Nancy >mderson 2233' Harnline Ave N., Roseville MN 55113 Work Phone: 651-604-0711 FA~(: 651-631-3155 9.eauest 1 Police Officers ~br: OFP Hearin_. "Cou: Appear~ce) 9-!7-04 3hrs 0900-!200 :',.;umber of Officers: 1 Hours: 3 hours Total Due: S135.00 Make checks payable to tl~e "Cie,.' of Columbia Heights". Please mail payment :o: City or'Columbia Heights Police Department. 559 Mill Street NE. Columbia Heights, >,IN 5542! FOR DEPART~}IENTAL USE O./¥L Y Officer(s) on Duty: Amount Received: ~" Off Duty: Post-it'* Fax Note 7671 Date ?/~/. ' t pages Phone Fax · · ,: tNVOIC~. TOTAL DUE DISCOUNT TOTAL PAID Robert A. Manson, P.A. 2233 Hamline Avenue North 5435 Suite 609 Roseville. ,'MN 551 I3 O ' PAY /55.00 Customer Name: Address: Tj~ 0 ~.e O1, Robert Manson Attorney - Artn: Nancy Anderson 2233 Hamline Ave N., Rosevitle M2'4 55113 i-o0~-0/it Work Phone:' 65:" ' ~' F:~X: d5!-651-3155 Reauesr for: ! Police OS'_,qcers for: OFP Hem:lng O+'ficsr Grez_ $in_n l'j-~'.-.,,u,'"'~ i2near.anca). _ a-i?-0,-t. . . 3bxs 0900-1200 ,.~iLL I;'$G I2&-OR3~4 TIO?v' ;.T;~ge is .543. O0 ;e: ,:~our. Total Due: $135.00 Make checks payable to ,,he "City. of Columbia Heights". ?Ieee maii payment to: Cky o~'Columbia Heights PoLice Depamment, 559 Mill Street NE, Columbia Heights. Officsr(s) on Duty: FOR DEPART?~IEWTAL USE OWL Y Off Duty: Date: post-if Fax Note 7~71 JOam ~'.//2Z//' )p~a~.Ls> ~ City of Columbia Heights Police Department MEMO To: Chief Thomas Johnson From: Captain William J. Roddy Subject: Overtime Transfer Date: November 09, 2004 Attached is a list of the overtime received from October 22nd through November 9~, 2004 from outside sources that has been paid to CHPD for services of our persomael. Please request reimbursement of these funds to om' overtime account. CHHS INVOICE # DATE AMOUNT 024 7-08-04 $135.00 Independent School District #13 il~'Uv~Oi CE # DATE AMOUNT 023 10-27-04 $1485.00 Keith Johnson 020 9-30-04 193.00 Total Transfer Amount $1813.00 P. 117 INVOICE Columbia Heights Police Department Date: September 30, 2004 Invoice #: Customer Name: Columbia Heights Highschool Address: 1440 49a' Ave NE, Col. Hgts. MN 55421 Home Phone: Work Phone: Attn: Betty Thomas 2004-02 528-4601 Request for: 1 Police Officer for: SchoolDance Sept. 10, 2004 2045-_~45 3 hrs Korts Number of Officers: 1 BILLING iNFORMATiON Hours: 3 OT Billing Wage is $45. OO per hour. Total Due: $135.00 Make checks payable to the "City of Columbia Heights". Please mail payment to: City of Columbia Heights Police Department, 559 Mill Street NE, Columbia Heights, MN 55421 FOR DEPARTMENTAL USE ONLY P. 118 R NUMBER VEt. JIJOR NAME CI4ECK DATE CFIECK l' 0 : CITY OF COLUMBIA IIEIGHTS 10/20/04 INVOICE NUMBER DESCRIPTION P.O. NUMBER -024 OF COLUMBIA HEIGHTS E DEPARTMENT ILL STREET NE BIA HEIGHTS, MN 55421 TOTAL AMOUN' PAID r SCHOOL DISTRICT NO. 13 )-49TH AVENUE N.E. tEIGHTS, MINNESOTA 55421 I bank. 303 Third Slreel Nodhwest East Grand Forks, MN 58721 ******'135 Dollars 00 Cents R OF: CITY OF COLUMBIA HEIGHTS ATTN: POLICE DEPARTMENT 559 MILL STREET NE COLUMBIA HEIGHTS, MN 55421 CHECK DATE CHECI~ CHECKAMOUN $~35 n'~?l,l,q,i, "-0q~2~Sq27' '52~00007B Date: October 27, 2004 Invoice #: 2004-023 (Revised) Customer Name: Address: Home Phone: Independent School District #13 1440 49th Ave NE, Col. Hgts. MN 55421 Work Phone: (Afternoon School Security Detail) Attn: Finance Department Request for: 1 September: Week 1- Sept. 1-3 Week 2- Sept. 7-10 Week 3- Sept. 13-17 Week 4- Sept. 20-24 Week 5- Sept. 27-Oct. 1 Police Officer for: Afternoon School Detail 3 days x 1.5hrs ~ OT Rate 4 days x 1.5hrs ~ OT Rate 5 days x 1.5hrs ~ OT Rate 5 days x 1.5hrs ~ OT Rate 5 days x 1.5hfs ~ OT Rate $ 202.50 $ 270.00 $ 337.50 $ 337.50 $ 337.50 Total: 1485.00 BILLING INFORMATION Number of Of_ricers:. 22 Hours: 33 OT bVage Rate is $45. OOper hour. Total Due: $1485.00 Make checks payable to the "City of Columbia Heights". Please mail payment to: City of Columbia Heights Police Department, 559 Mill Street NE, Columbia Heights, MN 55421 Officer(s) on Duty: Amount Received: FOR DEPARTMENTAL USE ONLY P. 120 NO. 13 VENDOR NUMBER VENDOR NAME CHECK DATE CHECK NO. 08350 - 0 : CITY OF COLUMBIA HEIGHTS 10/28/04 00117507 DATE ! INVOICE NUMBER DESCRIPTION P.O. NUMBER AMOUNT 10/21/04 ~.004-023 1,485.00 TOTAL AMOUNT PAID TO: CITY OF COLUMBZA HEIGHTS PAID 1,485. oo POLICE DEP.ZL~TMENT 559 MiLL STREET NE COLLTMBIA HEIGHTS, ~ 55421 75-1592 INDEPENDENT SCHOOL DISTRICT NO. 13 I bank. CHECK DATE CHECK NO. 912 1400-49TH AVENUE N.E. COLUMBIA HEIGHTS, MINNESOTA 55421 303 Third Street Nodhwest East Grand Forks, MN 56721 10/28/04 11750 , PAY: TO THE ORDER OF: 485 Dollars 00 Cents CITY OF COLUMBIA HEIGHTS ATTN: POLICE DEPARTMENT 559 MILL STREET NE COLUMBIA HEIGHTS, Ml~ 55421 CHECK AMOUNT $1,485.00 ," ~ ~750 ?," ':0q ~ 2 ~ 5q 27~: ~- 5 ~ ;O000 7~ 25"" P. 121 INVOICE Columbia Heights Police Department Date: September 30, 2004 Invoice #: 2002-020 Customer Name: Keith D. Johnson, P.L.L.C. - Barristers Trust Building Address: 247 Third Ave. S, Minneapolis MN 55415 Home Phone: Request for: 1 Police Officers for: Corporal Paul Bonesteel (Attorney conference call) 9-24-04 (Court standby) 9-29-04 (Court appearance) 9-29-04 (Parking Fee) 9-29-04 Work Phone: 612-341-2525 (~ Helm Co Civil Case (Craig vs. Prestwood) 2 hrs minimum ~ 1 1252-1352 60.00 1 hr ~ 1 1300-1400 30.00 2 hrs minimum ~ 1.5 t400-1600 90.00 $13.00 $13.00 Total 193.00 BILLING INFORMATION Number of Officers: 1 Horn:s: 2 hrs ~ 1.5/3hfs G1 Wage is $30. OO per hour/OT $45.00 per hour. Total Due: $193.00 Make checks payable to tile "City of Columbia Heights". Please mail payment to: City of Columbia Heights Police Department, 559 Mill Street NE, Columbia Heights, MN 55421 Officer(s) on Dray: Amount Received: Date: P. 122 D. JOHNSON, P.L.L.C. 0 Customer Name: Address: Home Phone: Keith D. Johnson, P.L.L.C. - Barristers Trust Building 247 Third Ave. S, Minneapolis MN 55415 Work Phone: 612-341-2525 COLUMBIA HEIGHTS CITY COUNCIL LETTER Meeting of: November 22, 2004 AGENDA SECTION: ORIGINATING DEPARTMENT: CITY NO: '-- b Community Development MANAGER'S ,.h-A- APPROVAL ITEM: Establish Public He aring Date for BY: Cheryl Bald~en BY' ~'--'"'~/dS~ Reuse of CDBG Funds DATE: November 16, 2004 BACKGROUND: Establish Public Hearing Date for December 14, 2004, at approximately 7:00 pm for the pm'pose of reallocating CDBG Funds received from the sale of 4607 Tyler Street NE. The realtocated funds would be used for demolition of the Bm'ger King Restam'ant, 3939 Central Avelme NE, Colmnbia Heights m~d the demolition of the MGS Building, 322 40th Avenue NE, Columbia Heights. RECOMMENDATION: Staff recommends setting Monday, December 13, 2004 at approximately 7:00 p.m. for the Public Hearing Date for reallocating CDBG funds froln the sale of 4607 Tyler Street NE. RECOMMENDED MOTION: Move to establish a Public Hearing Date/'or December 13, 2004, at approximately 7:00 pin for the purpose of reallocating CDBG funds fi'Oln the sale of 4607 Tyler Street NE for the demolition of the Burger King Restaurant located at 3939 Central Avenue and the MGS Building at 322 40th Avenue NE, Columbia Heights. COUNCIL ACTION: h:\Consent200~\CL Establish Public Hearing for CDBG funds BK and MGS P. 124 City of Columbia Heights Public Notice Notice is hereby given that the City of Columbia Heights will hold a Public Hem-ing on Monday, December 13, 2004 at approximately 7:00 PM in the Council Chmnbers of Columbia Heights City Hall, 590 40th Avenue NE, Columbia Heights for the purpose of takh~g public comment for the reallocation of Connrmnity Development Block Grant monies received from the sale of 4607 Tyler Street NE. The proposed reuse of these funds will be for the demolition of the Burger Irdng Restaurant, 3939 Central Avenue NE, Columbia Heights and the demolition of the MGS Building, 590 40th Avenue NE, Columbia Heights. Written comments will be accepted in the Community Development Department of the City of Columbia Heights, 590 40th Avenue NE, Columbia Heights, Minnesota until 4:40 PM on Monday, December 13, 2004. For further information, please contact Mark Nagel, Housing Assistant at (763)-706-3677. H:\CDBG2004~Legal Notice Reallocation of funds for Demo BK and MGS P. 125 CITY COUNCIL LETTER Meeting of: 11/22/04 AGENDA SECTION: CONSENT AGENDA ORIGINATING DEPARTMENT: CITY MANAGER NO: .~-' ~ ~'-1 PUBLIC WORKS ~ ~r~ff// //~~'~ ITEM: CHANGE ORDER NO. 1 AND FINAL PAYMENT BY: K. Hanse BY: FOR MISCELLANEOUS CONCRETE PROJECT #0400 DATE: 11/16/0'4~ DATE: Background: The Contractor has completed the 2004 Miscellaneous Concrete Repairs and Installations. This annual program consisted of curb and gutter, street, alley, driveway and sidewalk improvements/repairs throughout the City. A spreadsheet with the fund distribution is attached. Analysis/Conclusions: The Miscellaneous Concrete Program is set up on an annual basis with a prel/minary est/mate of quantities for the entire year. The quantities of work will vary from year to year based upon actual work performed/n the two phases (late spring and fall). The final compensating change order, attached, modifies the contract to include additional quantities for repairs due to water main breaks, street and alley repairs, and replacement of hazardous sidewalk. All additions to the contract modified quantities only, using the contract bid prices for each work item. Staffrecommends approval of Change Order #1. Staff is recommending approval of final payment to Ron Kassa Construction, Inc. and acceptance of the work. A copy of the final payment voucher and the Engineer's Report of Final Acceptance is attached. For informational purposes, the final contract amounts for the past three program years have been: 2001: $64,336 2002: $32,359 2003: $39,955 Recommended Motion: Move to authorize Contract Change Order No. 1 for additional work added to the contract by the City to Ron Kassa Construction, Inc. in the amount orS 8,164.30 with funding out of the appropriate funds. Recommended Motion: Move to accept the work for 2004 Miscellaneous Concrete Repairs and Installations, City Project #0400 and authorize final payment of $ 4,128.00 to Ron Kassa Construction, Inc. of Elko, Minnesota. Attachment: Fund Distribution Spreadsheet Change Order Payment Voucher Engineer's Report of Final Acceptance COUNCIL ACTION: P. 126 ;ELLANEOUS CONCRETE FUNDING - FINAL PAYMENT JECT 0400 ~ESCRIPTION UNIT SEAL COAT' MSAS STREET PARK WATER SANITARY STORM PRIVATE PROJECT TOTAL PRICE QUAN: TOTAL QUAN. TOTAL QUAN. TOTAL QUAN. TOTAl_ QUAN.. TOTAL QUAN. TOTAL QUAN. TOTAL QUAN. TOTAL QUAN. TOTAL C&G $5.00 187.0 $935.00 234.0 $1,170.00 $0.00 $0.00 102.0 $510.00 $0.00 $0.00 $0.00 523.0 $2,615.06 ST C&G $17.00 201.0 $3,417.00 253.0 $4,301.00 10.0 $170.00 $0.00 102.0 $1,734.00 $0.00 $0.00 $0.00 566.0 $9,622.0(3 8"CONC $1.20 $0.00 330.0 $396.00 90.0 $108.00 $0.00 712.0 $854.40 $0.00 $0.00 $0.00 1132.0 $1,358.4(2 ST 8"CONC $3.25 $0.00 330.0 $1,072.50 90.0 $292.50 $0.00 712.0 $2,314.00i $0.00 $0.00 $0.00 1132.0 $3,679.0(} 6"CONC $1.60 $0.00 108.0 $162,00 $0.00 $0.00 30.0 $45.00 $0.00 $0.00 $0.00 138.0 $207.00 ST6"CONC $3.00 $0.00 108.0 $324.00 $0.00 $0.00 30.0 $90.00 $0.00 $0.00 $0.00 138.0 $414.00 SDWK $1.00 426.0 $426.00 250.0 $250.00 62.0 $62.00 $0.00 162.0 $162.00 $0.00 $0.00 $0.00 900.0 $900.00 3T SDWK $2.90 426.0 $1,235.40 418.0 $1,212.20 62.0 $179.80 78.0 $226.20 162.0 $469.80 $0.00 $0.00 $0.00 1146.0 $3,323.40 S~_~ $5.00 $0.00 $0.00 $0.00 $0.00 36.0 $180.00 $0.00 $0.00 $0.00 36.0 $180.00 ~l ~q =P $30.00 $0.00 $0.00 $0.00 $0.00 36.0 $1,080.00 $0.00 $0.00 $0.00 36.0 $1,080.00 iL $6,013.40 $8,887.70 $812.30 $226.20 $7,439.20 $0.00 $0.00 $0.00 $23,378.80 TRANSFER TO TRANSFER TO TRANSFER TO TRANSFER TO TRANSFER TO TRANSFER TO TRANSFER TO 415-50301 212-43190 101-43121 101-45200 601-49430 602-49450 604-49650 CHANGE ORDER NO. 1 Project: 2004 Miscellaneous Concrete Repairs and Installations City Project: 0400 Owner: Contractor: City of Columbia Heights 637 38a' Avenue N.E. Columbia Heights, MN 55421 Ron Kassa Construction, Inc. 6005 - 250th Street East Elko, MN 55020 Date of Issuance: November 15, 2004 Engineer: City Engineer You are directed to make the following changes in the Contract Documents: Description: Change in original contract price to compensate for additional work added to the contract by the City. Purpose of Change Order: The contract has been modified to include additional quantities for repairs due to water main breaks, street and alley repairs, and replacement of hazardous sidewalk. CHANGE IN CONTRACT PRICE Original Contract Price: $15,493.50 Previous Change Orders No. __ None to No. Contract Price Prior to this Change Order: $15,493.50 Net Increase of this Change Order: $ 8,164.30 Contract Price with all Approved Change Orders: $ 23,657.8O Reconnnended By: City Engineer CHANGE IN CONTRACT TIME Original Contract Time: Net Change from Previous Change Order: Contract Time Prior to this Change Order: Net Increase (Decrease) of Change Order: Contract Time with Approved Change Orders: Approvefl~,5.? /r/ R~n l~kssa'~j~nstmction, Inc. Approved By: Juherme Wyckoff, Mayor Approved By: ---P. 1 28 Walte~ £~n~t, City Manager Date of Council Action Attachment to Change Order No. 1 City Project 0400 Page 1 of 1 Owner: Contractor: Project: City of Columbia Heights Ron Kassa Construction, linc. 2004 Miscellaneous Concrete Repairs and Installations Description of Changes: The Public Works Department requested these items be replaced. Item No. 1 2 3 4 5 6 7 8 Item Description Unit Ouantity Remove curb and gutter L.F. 15 $ 5.00 Construct concrete curb and gutter L.F. 58 $17.00 Remove street/alley S.F. 802 $ 1.20 Construct 8" concrete street/alley S.F. 802 $ 3.25 Remove sidewalk S.F. 490 $ 1.00 Constm. ct 4" concrete sidewalk S.F. 736 $ 2.90 Remove step S.F. 26 $ 5.00 Construct concrete step S.F. 26 $ 30.00 Unit Price Total Estimated Price 75.00 986.00 962.40 2,6O6.50 49O.0O 2,134.40 130.00 780.0o TOTAL OF CHANGE ORDER NO. 1 $ 8~164.30 P. 129 CITY OF COLUMBIA HEIGHTS CONSTRUCTION PAYMENT VOUCHER ESTIMATE NO. FINAL DATE: November 15, 2004 PERIOD ENDING: November 12, 2004 CONTRACT: 2004 Miscellaneous Concrete Repairs and lnstallations O4OO PROJECT NO. TO: RON KASSA CONSTRUCTION, INC. 6005 - 250th Street East Elko, MN 55020 952-461-3715 A. Original Contract Amount . B. Total Addition C. Total Deduction D. TOTAL CONTRACT AMOUNT E. TOTAL VALUE OF WORK TO DATE F. LESS RETAINED G. Previous Payment(s) .......................................................................................................... H. TOTAL APPROVED FOR PAYMENT THIS VOUCHER I. TOTAL PAYMENTS iNCLUDING THiS VOUCHER $15,493.50 $8,164.30 $o.oo $23,657.80 $23,378.80 $o.oo ($19,250.80) $4,12~00 $23,378.8O APPROVALS Pursuant to our field observations, I hereby recommend for payment the above stated amount for work perfc Signed by: ~rm.ed ti1 'ough November 12, 2004 u~ic Works Director ~NSTRUCTION, INC. Signed by: Dat6 Date P. 130 CITY OF COLUMBIA HEIGHTS 2004 MISCELLANEOUS CONCRETE REPAIRS AND INSTALLATIONS CITY PROJECT NO. 0400 FINAL ESTIMATE NO. 1 2 3 4 5 6 7 8 9 10 ITEM Remove curb and gutter Construct concrete curb and gutter Remove street/alley Construct 8" concrete street/alley Remove driveway/apron Construct 6" concrete driveway/apron Remove sidewalk Construct 4" concrete sidewalk Remove step Construct concrete step TOTAL UNIT QUANT. UNIT PRICE L.F. 523.0 $5.00 L.F. 566.0 $17.00 S.F. 1132.0 $1.20 S.F. 1132.0 $3.25 S.F. 138.0 $1.50 S.F. 138.0 $3.00 S.F. 9OO.O $1.00 S.F. 1146.0 $2.90 S.F. 36.0 $5.00 S.F. 36.0 $30.00 AMOUNT $2,615.00 $9,622.00 $1,358.40 $3,679.00 $207.00 $414.00 $9oo.oo $3,323.40 $180.00 SI,080.00 $23,378.8O P. 131 CITY OF COLUMBIA HEIGHTS ANOKA COUNTY, MINNESOTA ENGINEER'S REPORT OF FINAL ACCEPTANCE 2004 MISCELLANEOUS CONCRETE REPAIRS AND INSTALLATIONS CITY PROJECT NUMBER 0400 November 15, 2004 TO THE CITY COUNCIL COLUMBIA HEIGHTS, MINNESOTA HONORABLE MAYOR AND CITY COUNCIL MEMBERS: This is to advise you that I have reviewed the work under contract to Ron Kassa Construction, Inc. The work consisted of curb and gutter, street, alley, driveway, sidewalk and step improvements/repairs throughout the City. The contractor has substantially completed the project in accordance with the contract. It is recommended; herewith, that final payment be made for said improvements to the contractor in the amount as follows: ORIGINAL CONTRACT PRICE CHANGE ORDERS FINAL CONTRACT AMOUNT FINAL WORK APPROVED ALL PRIOR PAYMENTS $15,493.50 $ 8~164.30 $ 23,657.80 $ 23,378.80 ($19,250.80) BAL ~NCE DUE Sincerely, City Engineer P. 132 CITY COUNCIL LETTER Meeting of: 11/22/04 AGENDA SECTION: CONSENT AGENDA ORIGINATING DEPARTMENT: CITY MANAGER NO: ~-~/~-~ PUBLIC WORKS BEING AN ORDINANCE CHANGING THE STREET DATE: 11/16/04 DATE: NAME OF RAINER PASS TO RAINIER PASS Background: Residents on Rainer Pass submitted a petition to the Traffic Cmmnission to chmage the spelling to Rainier Pass. The petition was signed by 9 out of the 10 Columbia Heights' residents. The remaining property is for sale. The two properties in Fridley already spell the name Rainier. "Rainer" is the spelling on the original plat. The City Council has the authority to change street names by ordinance. The Traffic Commission recmmnended the street nmne be changed fi'om Rainer Pass to Rainier Pass at their meeting on November 1, 2004. Analysis/Conclusions: Staff recormnends the spelling of Rainer be changed to Rainier, based on the reconnnendation of the Traffic Commission. Recommended Motion: Move to waive the reading of Ordinance No. 1478, there being ample copies available to the public. Recommended Motion: Move to set the second reading of Ordinance No. 1478, being an Ordinance changing the street name of Rainer Pass to Rainier Pass for December 13, 2004, at approximately 7:00 p.m. in the Council Chamber. KH:jb Attaclnnent: Petition COUNCIL ACTION: P. 133 ORDINANCE NO. 1478 BEING AN ORDINANCE CHANGING THE STREET NAME OF RAINER PASS TO RAINIER PASS The City of Colmnbia Heights does ordain: Section 1: The name of Rainer Pass from Im~sbruck Parkway to the north corporate limit of the City is hereby changed and shall hereafter be known and renamed as Rainier Pass. Section 2: 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 City of Columbia Heights, Mim~esota Attest: Patricia Muscovitz, Deputy City Clerk P. 134 2005 BUICK RAINIER, otR~.T ATLAS Kevin Hah-sen, P.E. Director of Public Works City of Columbia Heights, bR~ nler The purpose o£ this petition is to cause the erroneous spellin~ of the name of our straat robe corrected. The original plat from 1960 spells our street, "Fd~I~(ER". The United States Pos~a! Service spells it,"Ranier". It is obvious tile origi~-~al intent was to spell it, "~I!~IER"after Mt. Rainier siz[ce many streets in this Innsbruok subdivision have names of Alpine origin. Tho King Street Atlas, used bY taxi drivers and some emergency crews~ spells it correctly. Even Gene?al Motors Buick Division tm%owe how to spell. 'i.[e~the undarsign~d, want the City of Columbia Heights to correct this 45 year old error. Address on !~!INIER PASS P. 135 CITY COUNCIL LETTER Meeting of: 11/22/04 AGENDA SECTION: CONSENT AGENDA ORIGINATING DEPARTMENT: CITY MANAGER NO: _.~.~ _~ PUBLIC WORKS ~ ~/~/_~//~~~ !TEM: FINAL PAYMENT FOR SUPERVISORY BY: K. Hansen ~'~'x BY: CONTROL AND DATA ACQUISITION (SCADA DATE: 11/16/0~ DATE: SYSTEM) TO INSTRUMENT CONTROL SYSTEMS Background: On January 26, 2004 the City Council authorized the pubhc bidding for a new Supervisory Control and Data Acquisition (SCADA) for the City utility system. The project was awarded to Instnmaent Control Systems (ICS) of Plymouth, Minnesota in the amount of $136,000. Component fabrication and instrument installation was conducted over the summer months and system testing and staff training has now been completed. Analysis/Conclusions: Staff is recommending approval of final payment to Instrument Control Systems (ICS) of Plymouth, Minnesota and final acceptance of the work. A copy of the final payment voucher and the Engineer's Report of Final Acceptance is attached. The work has been installed, completed and tested in accordance with the contract documents. Staff is recommending fmal payment of $2,270 for a total of $136,000, consistent with the original contract mount. Recommended Motion: Move to accept the work for the Supervisory Control and Data Acquisition (SCADA) System and to authorize final payment of $ 2,270 to Instrument Control Systems of Plymouth, Minnesota. Attachment: Payment Voucher Engineer's Report of Final Acceptance rH.'jb COUNCIL ACTION: P. 136 CITY OF COLUMBIA HEIGHTS ANOKA COUNTY, MINNESOTA ENGINEER'S REPORT OF FINAL ACCEPTANCE 2004 SUPERVISORY CONTROL AND DATA ACQUISITION SCADA SYSTEM CITY PROJECT NO. 0403 November 16, 2004 TO TItE CITY COUNCIL COLUMBIA HEIGHTS, MINNESOTA HONORABLE MAYOR AND CITY COUNCIL MEMBERS: This is to advise you that I have reviewed the work under contract to Instrmnent Control Systems. The work consisted of the fabrication and installation of a Supervisory Control and Data Acquisition (SCADA) System. It is recommended herewith, that final pa3anent be made for said improvements to the con, actor in the amount as follows: ORIGINAL CONTRACT PRICE CHANGE ORDER (None) FINAL CONTRACT AMOUNT $136,000 0 $136,000 FINAL WORK APPROVED ALL PRIOR PAYMENTS $136,000 .($133,730) BALANCE DUE $ 2,270 Sincerely, City Engineer P. 137 CITY OF COLUMBIA HEIGHTS CONSTRUCTION PAYMENT VOUCHER ESTIMATE NO. FINAL DATE: November 15, 2004 PERIOD ENDING: November 12, 2004 CONTRACT: SCADA: Supervisory Control and Data Acquisition 0403 PROJECT NO. TO: Instrument Control Systems 13005 16th Avenue North Suite 100 Plymouth, MN 55441 952-461-3715 A. Original Contract Amount B. Total Addition C. Total Deduction D. TOTAL CONTRACT AMOUNT E. TOTAL VALUE' OF WORK TO DATE F. LESS RETAINED G. Previous Payment(s) .......................................................................................................... H. TOTAL APPROVED FOR PAYMENT THIS VOUCHER U ' TOTAL PA, ME~,~, S INCLUDING THIS VOUCHER I, $136,000.00 $o.oo $o.oo $136,000.00 $136,000.00 $o.oo $133,730.00 $136,000.00 $2,270.00 APPROVALS Pursuant to our field observations, I hereby recommend for payment the above stated amount for work~n / ." ~ ~per~°rmedt'l~r°ugh November 12, 2004 Signedby: . &~J'/-~~.b?~-~ ,~\]~t~::)~r- r~ev~ Hanseh;~P~ ic Works Director ua~ Signed by: INSTRUMENT CONTROL SYSTEMS Date P. 138 CITY COUNCIL LETTER Meeting of: November 22, 2004 AGENDA ORIGINATING CITY MANAGER SECTION: DEPARTMENT: APPP, OVAL NO: Fire ITEM: Establish Hearing Dates BY: Chm'lie Thompson BY: License Revocation, Rental Properties DATE: November 16, 2004 DATE: NO: Revocation or suspension of a license to operate a rental property within the City of Columbia Heights is requested against the following owners regm'ding their rental propeFry for failure to meet the requirements of the Residential Maintenance Codes. 1. Edwm'd Fragale ............................................................. 1308-10 Circle Terrace Blvd N.E. 2. Myrna Bourcy ............................................................... 1132-34 40th Avenue N.E. 3. Haji Azam ..................................................................... 4927 University Avenue N.E. 4. Haji Azam ..................................................................... 4935 U~ziversity Avenue N.E. RECOMMENDED MOTION: Move to Establish a Hearing Date of December 13, 2004 for Revocation or Suspension of a License to Operate a Rental Propmx~y within the City of Cob.unbia Heights against Edward Fra~ale at 1308-10 Circle Terrace Blvd. N.E. RECOMMENDED MOTION: Move to Establish a Hem'ing Date of December 13, 2004 for Revocation or Suspension of a License to Operate a Rental Property within the City of Coltm~bia Heights against Myrna Bourc¥ at 1132-1134 40th Avenue N.E. RECOMMENDED MOTION: Move to Establish a Hem'ing Date of December 13, 2004 for Revocation or Suspension of a License to Operate a Rental Property within the City of Colmnbia Heights against Haji Azam at 4927 & 4935 Universitw Avenue N.E. COUNCIL ACTION: P. 139 CITY COUNCIL LETTER Meeting of: November 22, 2004 AGENDA SECTION: CONSENT ORIGINATING DEPARTMENT: CITY MANAGER APPROVAL NO: ~-- ~- \\ Fire ITEM: Approval of Rental Housing License BY: Charlie Thompson BY:~~~ Applications NO: DATE: November 22, 2004 DATE: Approval of the attached list of rental housing license applications, in that they have met the requirements of the Housing Maintenance Code. MOTION: Move to approve the items listed for rental housing license applications for November 22, 2004. COUNCIL ACTION: P. 140 ~ccupanyI.D, 10033 10067 10500 10504 10508 20500 30003 30040 30500 30502 30504 20208 10150 20164- 34012 30130 30158 12105 20150 20009 12131 12094 10026 20261 10098 30072 20063 10040 12082 12206 34006 20204 20132 12133 10034 20300 20012 20088 70142 70144 70146 Property Owner Name Wyman, Veryl E. Bryant, LLC. Anoka County Community Action Anoka County Community Action Anoka County Community Action Anoka County Community Action Columbia Village City of Columbia Heights E.D.A. Anoka County Community Action Anoka County Community Action Anoka County Community Action Ahmed Al-Beheary Angeles Alvardo Olga Antochy Alan Avery Haji Azam Haji Azam Joe Bazzett Steve Bethel John Billings Judith Brunsell Raymond Buganski Ricardo Cadman Charles Chen Josh Chu Danny Dang Mohsen Dessouki Bruce Ebner Douglas Evans William Farrey Lori Fitzpatrick Gerry Gerechi Judith Germain Roger Gillespie Michael Gondek Thomas Gromek Bette Harlan Bette Harlan Bette Harlan Bette Harlan Bette Harlan P. 141 Property Address 1316 43rd Avenue 5075 Johnson Street 4349 5th Street 4304 5th Street 4411 Main Street 4641 Polk Street 1675 44th Avenue 965 40th Avenue 3932 Central Avenue 4641 Tyler Street 4647 Tyler Street 4916 Tyler Street 5159 7th Street 4000 Hayes Street 4201 Monroe Street 4622 Tyler Street 4616 Tyler Street 4514 Fillmore Street 4555 Fillmore Street 4108 Madison Street 1401 42-t/2 Avenue 1026 45th Avenue 3947 Arthur Street 1207 43-1/2 Avenue 4213 3rd Street 3915 Lookout Place 4610 Fillmore Street 3928 Central Avenue 4156 2nd Street 1110 43-1/2 Avenue 626 40th Avenue · 3742 3rd Street 1355 Circle Terrace 1010 42nd Avenue 344 40th Avenue 4340 Quincy Street 5252 5234 5110 5146 5037 Washington Street Washington Street Washington Street Washington Street Jackson Street Occupany I.D. 20152 20154 20011 20116 30124 20006 20024 20390 10122 20299 30007 30009 10164 12044 20103 34010- 30023 12032 20315 10042 20293 30034 30066 30092 20117 20034 20060 20044 12015 30062 30108 20243 10100 12037 20177 10166 12208 12115 12136 20206 12052 Property Owner Name Bette Harlan Bette Harlan Bradley Hoag Mike Hyska Margaret Ingle Marge Janson Marge Janson Marge Janson Dave Johnson Gerald Johnson Michael Juaire Michael Juaire Laurie Karnes Susan Kinch Susan Kinch Matt Kleinjan Harvey Kowalzek Dan Krick Larry Larson Howard Law Mark Lee James Lupient James Lupient James Lupient Ping Luu-Wang Rose Maciaszek John Majewski Edwin Matthes Mary Jo McNutt Paul Modell Paul Modell Julio Orellana Diane Pederson W. Tarey Peterson Kelly Phillips Stephen Popa Timothy Quass Linda Rogers Patsy Sandsness Ron Sanford Linda Sawochka P. 142 Property Address 5140 Washington Street 5200 Washington Street 3861 Edgemoor Place 1035 43-1/2 Avenue 4347 University Avenue 1236 Circle Terrace 1266 Circle Terrace 1248 Circle Terrace 3808 Reservoir Blvd 4655 Polk Street 4417 University Avenue 4301 3rd Street 1226 43rd Avenue 1221 Circle Terrace 1241 Circle Terrace 1731 37th Avenue 4226 4th Street 4333 Washington Street 1087 Polk Circle 1218 Borealis Lane 4600 Polk Street 2200 39th Avenue 3839 Hart Boulevard 3838 McKinley Street 1214 45-1/2 Avenue 4401 Jackson Street 4995 Tyler Street 5229 7th Street 5055 Jackson Street 4650 Johnson Street 3746 Stinson Boulevard 4628 Johnson Street 1000 41st Avenue 3963 Polk Street 4535 Washington Street 4421 4th Street 3727 Reservoir Blvd 1057 Polk Place 1214 43-1/2 Avenue 4914 Tyler Street 838 40th Avenue OccupanyI.D. 20247 20188 30112 30132 1OO65 10106 12173 12005 20003 10093 20020 20018- 30038 12068 20072 12186 10129 10158 10052 Property Owner Name Nelia Schaff Ronald Schloesser Maumer Sekizovic Maumer Sekizovic Walter Sentyrz Walter Sentyrz Martin Sieger Bruce Smith Tad Sonneman Leland Stauch Leland Stauch Stacy Stutelberg Edward Ukatu Janene Unke-Hanson Stanley Van Blaricom Weston Wiggins Melissa Williams Jeffrey Zimmer Robert Zschokke Property Address 4228 Madison Street 4217 2nd Street 4357 Tyler Place 970 44th Avenue 2119 45th Avenue 3721 Van Buren Street 1237 43-1/2 Avenue 3800 Tyler Street 4029 2nd Street 4311 Royce Street 4545 Fillmore Street 218 42nd Avenue 615 40th Avenue 4357 7th Street 4513 Taylor Street 4144 Madison Street 4151 Stinson Boulevard 3921 Tyler Street 3823 Polk Street P. 143 CITY COUNCIL LETTER Meeting of: November 22, 2004 AGENDA SECTION: ORIGINATING DEPT.: CITY MANAGER NO: ~' A- \ "z- License Department APPROVAL ITEM: License Agenda BY: Shelley Hanson ,.-~ DATE: DATE: Nov. 19, 2004 BY://~~ NO: BACKGROUND/ANALYSIS Attached is the business license agenda for the November 22, 2004 City Council meeting. This agenda consists of applications for Contractor licenses for 2004. Also included on the agenda are the renewals for calendar year 2005 that have been received and approved to date. These include renewals for Contractors, Cigarette Sales, Off Sale Beer, On Sale Beer, Temporary Beer, Club Liquor, Liquor/Sunday Liquor, Wine/Beer, Courtesy Benches, Games of Sldll, Fuel Dispensing Devices, and Secondhand Dealers Licenses. At the top of the license agenda you will notice a phrase stating *Signed Waiver Form Accompanied Application. This means that the data privacy form has been submitted as required. If not submitted, certain information cannot be released to the public. RECOMMENDED MOTION: Move to approve the items as listed on the business license agenda for November 22, 2004 as presented regarding the new licenses for 2004 and the renewals for 2005. COUNCIL ACTION: P. 144 TO CITY COUNCIL November 22, 2004 * Sig-ned Waiver Form Accompanied Application 2004 BUSINESS LICENSE AGENDA CONTRACTORS LICENSES BLDG *Barnes Plumlsing Co Inc.MJ Construction Ext Inc *Schulties Plumbing Inc. *T & G Drywall *BARC Ind Inc. 3923 Washington Ave No., Mpls 8071 Ranchers Rd, Fridley 1521 94th Ln NE, Blaine 2521 3rd Ave E, No. St. Paul 425 Arrowhead Dr. $50.00 $50.00 $50.00 $50.00 $50.00 *'***LICENSES FOR 2005**** CONTRACTOR LICENSES BLDG *Sharp Heating & AC Inc *Modern Heating & AC *Riccar Heating *Superior Heating *Standard Heating *Forced Air *Master Mechanical *McQuillan Bros Plm *Norblom Plumbing *Neeck Construction *Allstar Construction *Gunderson Construction *MN Petroleum Service *Sela Roo£mg *C & S Blacktopping *Modern Roadways *Carl Bolander & Sons *Signart Co Inc 7221 University Ave, Fridley $60.00 2318 1st Street NE, Mpls $60.00 2387 Station Pkwy, Anodver $60.00 2132 2nd Ave, Anoka $60.00 410 W. Lake St, Mpls $60.00 4131 Old Sibley Mem Hwy, Eagan $60.00 1027 Gemini Rd, Eagan $60.00 688 Hague Ave, St Paul $60.00 2905 Garfield Ave So., Mpls $60.00 3989 Central Ave, Mpls $60.00 8401 73rd Ave No, Brk Pk $60.00 1760 Commerce Court, Wht Bear Lk $60.00 682 39th Ave NE, Col. Hts $60.00 4100 Excelsior Blvd, St Louis Pk $60.00 14435 Northdale Blvd, Rogers $60.00 1620 Winnetka Ave No. Gold. Vail $60.00 251 Starkey St, St Paul $60.00 2170 Dodd Rd, Mendota Hts $60.00 COURTESY BENCHES Us Bench Corp 3300 Snelling Ave, Mpls $450 OFF SALE BEER POL, FIRE, BLDG, ZA *Dick's Place 500 40th Avenue NE $!50.00 ON SALE BEER POL,FIRE,BLDG, ZA *Dick's Place 500 Club 547 40mAveNE $400.00 500 40thAvenueNE $400.00 P. 145 POL, FIRE,BLDG,ZA POL,FIRE,BLDG,ZA POL,FIRE,BLDG, ZA CLUB LIQUOR *VFW Post #230 *Columbia Hts Lions Club 4446 Central Ave NE 53O Mill St. TEMPORARY BEER *Columbia Hts Lions Club Huset Park for Jamboree 2005 LIQUOR/SUNDAY LIQUOR *Star Central 4005 Central Ave *Mady's Bowling Center 3919 Central Ave $500.00 $300.00 $500.00 $6700.00 $670O.OO POL,FIRE,BLDG, ZA POLICE WINE/BEER *LaCabema Bar & Grill 4952 Central Ave GAMES OF SKILL *Metro Coin of MN Inc. 8055 Ranchers Rd NE, Fridley For Star Bar, VFW, and Denny's $2400.00 $90.00 POLICE POL,FIRE,BLDG,ZA CIGARETTE SALES *Sarna's Tobacco Stores *University Auto Service SECONDHAND DEALER Salvation Army ARC 4329 Central Ave 5257 University Ave 3929 Central Ave NE $3OO $300 $100.00 FIRE FUEL DISPENSING DEVICES *Twin Cities Avanti Stores dba Oasis Mkt. 4001 University Ave *University Auto Service 5257 Unive. rsity Ave *Columbia Hts Rental 3901 Central Ave $200.00 $8O.OO $62.50 P. 146 CITY OF COLUMBIA HEIGHTS FINANCE DEPARTMENT cot~cn~ ~v, xx~g or: I~t)v~ ¢7~ ~ h~ 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 ! } _D~'/~ through in the amount orS !,, These checks have been examined and found to be legal charges against the CITY OF COLUMBIA HEIGHTS, and are hereby, recommended for payment. P. 147 ACS FIN~CI~ SYSTEM CITY OF COL~BIA HEIGHTS 11/18/2004 16:01:47 Check History GL050S-V06.60 CO~RPAGE GL540R * *** C O U N C I L *** * * *** C O U N C I L *** * * *** C O U N C I L *** * * *** C O U N C I L *** * Report Selection: Optional Report Title ....... 11/22/04 COUNCIL LISTING INCLUSIONS: Fund & Account .............. Check Date .................. Source Codes ................ Journal Entry Dates ......... Journal Entry Ids ........... Check Number ................ Project ..................... Vendor. Invoice ..................... Purchase Order .............. Bank ........................ '~lcher .................... ~.eased Date ............... ~ared Date ................ thru thru thru thru 110578 thru 110713 thru thru thru thru thru thru thru thru thru Run Instructions: Jobq Banner Copies Form Printer Hold Space LPI Lines CPI CP SP J COUNCIL 02 P4 Y S 6 066 10 Y Y ACS FINANCIAL SYSTEM ~1/18/2oo4 16 Check History 11/22/04 COUNCIL LISTING BANK VENDOR BANK CHECKING ACCOUNT AMERICAN BOTTLING COMPAN AMERICAN INTERTP~ADE AMERIPRIDE BELLBOY CORPORATION BFI OF MINNESOTA BLOWERS~CAROLE CHERNIN/ALEKSANDR CHISAGO LAKES DISTRIBUTI CITY OF NEW BRIGHTON CITY WIDE WINDOW SERVICE COCA-COLA BOTTLING MIDWE FERNA1XTDO / LASA/qTHA G & K SERVICES GENUINE PARTS/NAPA AUTO GLENWOOD INGLEWOOD GRIGGS-COOPER & CO GROSSE/PAUL HOHENSTEINS INC JOHNSON BROS. LIQUOR CO. LOFFLER BUSINESS SYSTEMS METROCALL - ATT MESSAGIN MN MUNICIPAL BEVERAGE AS OKERSTROM/LEE ONVOY ORIENTAL TRADING COMPANY PETTY CASH - MARY DUGDAL PHILLIPS WINE & SPIRITS PLUNKETT'S, INC QUALITY WINE & SPIRITS VERIZON WIRELESS WELLS FARGO - PAYROLL AC ACE ICE COMPA/qY CITY OF NEW BRIGHTON COOK/BA~ DAVES SPORT SHOP FARNER-BOCKEN G & K SERVICES GRAND RIOS WATER PARK RE GRIGGS-COOPER & CO JOHNSON BROS. LIQUOR CO. KUEHN/JEAN biN DEPT OF ADMINISTRATIO OLSON/CHERAY PHILLIPS WINE & SPIRITS QWEST COMMUNICATIONS SPECIALTY WINES & BEVEP_A STAGES THEATER COMPANY CHECK NUMBER 110578 110579 110580 110581 110582 110583 110584 110585 110586 110587 110588 110589 110590 110591 110592 110593 110594 110595 110596 110597 110598 110599 110600 110601 110602 110603 110604 110605 110606 110607 110608 110609 110610 110611 110612 110613 110614 110615 110616 110617 110618 110619 110620 110621 110622 110623 110624 CITY OF COLUMBIA HEIGHTS GL540R-V06.60 PAGE 1 AMOUNT 927.09 90.00 69.21 2,854.95 1,261.69 45 48 515 02 3,225 80 2,187 00 40 47 2,296 28 22~ 20 201 63 76 31 244 41 50,827 21 35 71 2,334 85 141,831 09 361 10 79 73 5,000 00 60 00 24 95 38.70 84.08 46,016.42 89.67 19,079.61 420.75 274,104.52 400.34 3,267.00 90.00 40.00 3,593.46 77.59 100.00 14,410.52 21,045.55 46.25 532.30 63.88 129.32 1,257.00 427.50 68.00 ACS FINANCIAL SYSTEM ii/i8/2004 i6 Check History 11/22/04 COUNCIL LISTING BANK VENDOR BANK CHECKING ACCOUNT STATE TREASURER BLD VERIZON - ATTN: PREPAY D XCEL ENERGY (N S P) ACE HARDWARE ALL SAFE FIRE & SECURITY AMERICAN PUBLIC WORKS AS AMERICAN WATER WORKS ASS AMERIPRIDE ANCOM COMMUNICATIONS INC ANOKA COUNTY LIBP3kRY ASPEN MILLS, INC. AWD COOLERS OF MINNESOTA BAKER & TAYLOR BAKER & TAYLOR ENTERTAIN BARNA GUZY & STEFFEN LTD BAUER BUILT TIRE & BATTE BOOK WHOLESALERS INC BP_ADLEY & GUZZETTA LLC BUPaNET TITLE-ESCROW ACCO CAbZDEN PET HOSPITAL CATCO PARTS SERVICE CDW-G CENTER POINT ENERGY COLUMBIA HEIGHTS VOLUNTE CSC CREDIT SERVICES DAKOTA COUNTY TECHNICAL DAVIES WATER EQUIPMENT C DCI INDUSTRIES LTD DPMS EHLER & ASSOCIATE-PUBLIC EMP FIDELITY SERVICES INC FLEX COMPENSATION, INC FRATTALONE COMPANIES INC G & K SERVICES GALE GROUP/THE GENUINE PARTS/NAPA AUTO GERTENS GREENHOUSE GIS RANGERS GOODIN CO. HOME LINE HOUCHEN BINDERY LTD HY-MARK ELECTRIC, INC INTOXIMETER INC IPC PRINTING ITL PATCH COMPANY INC KENNEDY & GRAVEN CHECK NUMBER 110625 110626 110627 110628 110629 110630 110631 110632 110633 110634 110635 110636 110637 110638 110639 110640 110641 110642 110643 110644 110645 110646 110647 110648 110649 110650 110651 110652 110653 110654 110655 110656 110657 110658 110659 110660 110661 110662 110663 110664 110665 110666 110667 110668 110669 110670 110671 CITY OF COLUMBIA HEIGHTS GL540R-V06.60 PAGE 2 AMOUNT 226.41 37.50 108.53 88.56 55.95 140.00 124.00 143.47 387.99 866.97 738 15 60 55 1,102 50 567 05 14,192 00 70 00 121 24 652 50 69 00 731 00 13 18 42 14 167 23 97,679 00 25 00 650 00 1,423 32 256.00 54.70 9,331.25 424.69 4,822.12 162.75 117,970.00 86.84 420.37 5.82 842.42 4,166.04 173.83 60.00 80.95 865.00 40.47 69.26 354.t2 11,578.57 ACS FINANCIAL SYSTEM 11/18/2004 16 Check History 11/22/04 COUNCIL LISTING BANK VENDOR BANK CHECKING ACCOL/NT LEAGUE OF MN CITIES INS LISTENING LIBRARY INC LUBE-TECH MARSHALL CONCRETE PRODUC MAXFIELD RESEARCH INC MEDICS TRAINING INC MEDTOX LABORATORIES INC MENARDS CASHWAY LUMBER-F METRO GAP~AGE DOOR METROCALL - ATT MESSAGIN METROPOLITAN COUNCIL WAS MID CITY MECHANICAL MIDWEST ASPHALT CO. MINNEAPOLIS SAW CO. MN DEPT OF PUBLIC SAFETY MSTMA MTI DISTRIBUTING OFFICE DEPOT ORIENTAL TP~ADING COMPANY OSI ENVIROMENTAL,INC PHYSICIANS DESK REFERENC PREMIUM WATERS INC PROSOURCE TECHNOLOGIES I RADIO SHACK REXINE/TODD RICHARDS/BRIAN SAM'S CLUB SCHINDLER ELEVATOR CORP SECURITY FENCE & CONSTRU STREICHER'S GUN'S INC/DO SWEENEY BROTHERS TASTY PIZZA TESSMAN CO TIMBERLAND TITLE LLC TRUE TITLE SERVICES UNIVERSAL TITLE CO. VERIZON WIRELESS WERNER ELECTRIC SUPPLY C WILSON DEVELOPMENT SERVI WW GRAINGER, INC XCEL ENERGY (N S P) ZARNOTH BRUSH WORKS, INC CHECK NUMBER 110672 110673 110674 110675 110676 110677 110678 110679 110680 110681 110682 110683 110684 110685 110686 110687 110688 110689 110690 110691 110692 110693 110694 110695 110696 110697 110698 110699 110700 110701 110702 110703 110704 110705 110706 110707 110708 110709 110710 110711 110712 110713 CITY OF COLUMBIA HEIGHTS GL540R-V06.60 PAGE 3 AMOUNT 44,020 50 200 00 285 65 378 26 3,000 00 450 O0 261 00 103 77 188 47 33 60 63,721 47 912 00 87 67 44 06 120 O0 70 00 67 55 221 35 3.95 242.50 119.90 23.16 10,660.34 25.41 69.00 175.00 150.00 216.39 2,160.00 24.95 1,810.50 630.00 913.77 276.00 69.00 69.00 78.23 24.38 89.75 113.58 69.45 669.67 1,005,292.36 *** ACS FINANCIAL SYSTEM CITY OF COLUMBIA HEIGHTS 11/18/2004 16 Check History GL540R-V06.60 PAGE 4 11/22/04 COUNCIL LISTING BANK VENDOR REPORT TOTALS: CHECK NUMBER AMOUNT 1,005,292.36 RECORDS PRINTED - 000920 ACS FINAi~CIAL SYSTEM 11/18/2004 16:01:49 FUND RECAP: FUND DESCRIPTION 101 201 203 213 225 240 261 270 276 415 420 431 601 602 603 604 609 652 653 701 720 TOT~ GENERAL COMMI/NITY DEVELOPMENT FUND PARKVIEW VILLA NORTH PARKVIEW VILLA SOUTH CABLE TELEVISION LIBRARY TWENTY-FIRST CENTURY GRANT DARE PROJECT LOCAL LAW ENFORCE BLK GRANT CAPITAL IMPROVEMENT - PIR CAP IMPROVEMENT-DEVELOPMENT CAP EQUIP REPLACE-GENERAL WATER UTILITY SEWER UTILITY REFUSE FUND STORM SEWER UTILITY LIQUOR SEWER CONSTRUCTION FUND STORM SEWER CONSTRUCT. FUND CENTRAL GAR3tGE DATA PROCESSING PERMIT SURCHARGE INSURANCE ESCROW FLEX BENEFIT TRUST FI/ND ALL FUNDS Check History DISBI/RSEMENTS 126,008.81 5,774.90 85 82 42 91 671 82 5,513 05 209 22 6 81 54 70 5,607 18 152,866 59 1,810 50 439 82 64,954 91 112 17 424 92 315,394.86 24.38 173.83 1,894.97 539.97 226.41 44,020.50 270,909.69 7,523.62 1~005,292.36 CITY OF COLUMBIA HEIGHTS GL060S-V06.60 RECAPPAGE GL540R BANK RECAP: BANK NAME BANK CHECKING ACCOUNT TOTAL ALL BANKS DISBURSEMENTS 1,005,292.36 1,005,292.36 COLUMBIA HI~IGHTS CITY COUNCIL LETTER Meeting of: November 22, 2004 AGENDA SECTION: Items for Consideration, Other ORIGINATING DEPARTMENT: CITY MANAGER'S Ordinances and Resolutions Community Development APPROVAL ITEM: Resolution 2004-52, Lot Split BY: ParTicle Smith B Case #: 2004-0902, 1226 43rd Avenue NE DATE: November 12, 2004 BACKGROUND: At its September 27a~ meeting, the City Council tabled the lot split request. An application has been made by Lam'ie Karnes of LEK Holding Company, the owner of the property at 1226 43rd Avenue NE, for a lot split of the one parcel into one single family lot and two twinhome lots. Ms. Karnes proposes that the existing structure will remain on the single-family lot and that she will sell the two twinhome lots to a builder. The proposed split would allow for the resulting parcels to be in conformance with all City requirements including setbacks, lot coverage and lot size. These requirements are detailed in the attached Council planning report, along with information as to what the proposed twinhomes may look like. Section 9.410(4) of the Columbia Heights Zoning Ordinance requkes that an application for a lot split be reviewed bythe Planning mhd Zoning Conmxission which shall provide a report to the City Council either recommending approval or denial of the proposed lot split. Several neighbors appeared at the public hearing to raise concerns about the issue of poor soils at the site and whether the twh~home lots would be buildable. Staff informed the neighbors and the Plam~ing and Zoning Colrmfission that it was the responsibility of the property owner to correct any poor soil conditions that may exist and to submit all necessary information showing how this would be accomplished in conformance with all city codes as pm-t of the building permit process. RECOMMENDATION: The Plmming and Zoning Cmrnnission held a Public Hearing for the request on September 8, 2004 and voted four ayes and one nay to recommend City Council approval of the lot split. RECOMMENDED MOTIONS: Move to waive the reading of Resolution 2004-52, there being ample copies available to the public. Move to adopt Resolution 2004-52, a resolution approving a lot split of the property at 1813 40th Avenue NE/4041 Hayes St. NE, subject to the following conditions of approval that are deemed necessary to protect the public interest and ensu~ compliance with the provisions of the Zoning Ordinance: / The applicant shall provide required utility and ch'ainage easements for all newly created lots and be responsible for the cost of filing and recording written easements with the/Xmoka County Recorder's Office. The applicant shall pay parldand dedication fees in the amount of $2,195 per lot for each of the two lots newly created lots. This fee is payable at the time of building pe~znit. o Should soil conditions on the property wmTant, information as to how soil conditions will be corrected shall be submitted to the Building Official along with the building pernxit application. Upon approval of a minor subdivision, the applicant shall be responsible for filing the subdivision survey with the Anoka County Recorder's Office. The minor subdivision shall become invalid if not filed with the Anoka County Recorder within one (1) year of the date of the City Council action. Attach~nents: Resolution 2004-52, Plannh~g Report to Council, Location Map, Certificate of Survey COUNCIL ACTION: P. 154 TO: Mayor and City Council FROM: Robert Streetar, Community Development Director DATE: 17 November 2004 SUB J: Addressing the attached two-family homes / Duplex issue in the R-2 District Partly in response to the application by LEK Holding Company for a lot split at 1226 43rd Avenue, the Planning Commission directed staff to look into the appropriateness of attached two-family homes or duplexes in neighborhoods that are primarily occupied by single-family detached housing, as well as the number of these types of units in the City compared to similar cities. Subsequently, with the assistance of John Shardlow of the planning firm of DSU, staff is in the process of responding to this request, and hopes to present at the City Council work session on November 29 the findings of our assessment. Based upon the outcome of the work session staff will work to provide options addressing this concern for discussion at a work session in early 2005. P. 155 RESOLUTION NO. 2004-52 SUBDIVISION REQUEST CITY OF COLUMBIA HEIGHTS 590 - 40TH AVENUE N.E. COLUMBIA HEIGHTS, MN 55421 l, Laurie Karnes of LEK Holding Company, hereby request a split of PIN 36 30 24 24 0153 Legally described as: The west 60.00 feet of the North 150.00 feet of Lot 6, and the east 70.00 feet of Lot 7, lying north of the south 165.00 feet; All in Block 3, Reservoir Hills, Anoka County, Minnesota. THE DESCRIPTIONS HENCEFORTH TO BE: The west 60.00 feet of the north 150.00 feet of Lot 6, Block 3, Reservoir Hills, Anoka County, Minnesota. Subject to easements of record. The east 35.00 feet of Lot 7, Block 3, Reservoir Hills, Anoka County, Minnesota, lying north of the south 165.00 feet of said Lot 7. Subject to easements of record. The west 35.00 feet of the east 70.00 feet of Lot 7, Block 3, Reservoir Hills, Anoka County, Minnesota, lying north of the south 165.00 feet of said Lot 7. Subject to easements of record. Be it further resolved that special assessments of record in the office of the City of Columbia Heights as of this day, against the above described property, are paid. Any pending or future assessments will be levied according to the new split as approved this day. Any lot split given approval shall become invalid if the resolution, motion or other Council action approving the said lot split is not filed with the County Recorder within one (I) year of the date of the Council action. PLANNING & ZONING DEPARTMENT ACTION: This __ day of ,2004 Offered by: Schmitt Seconded by: Baker Roll Call: Ayes: Fiorendino, Baker, Schmitt, Peterson Nay: Szurek Zoning Officer COUNCIL ACTION: Notary Public Signature of Owner, Notarized Owner's Address Telephone No. SUBSCRIBED AND SWORN TO BEFORE ME this __ day of ,2004 CITY This __ day of Offered by: Seconded by: Roll Call: .,2004. Secretary to the Council Julienne Wyckoff, Mayor P. 156 CZTY OF COLUMBIA HEIGHTS PLANNING REPORT TO CITY COUNC~'L CASE NUMBER: DATE: TO: APPLICANT: LOCATION: REQUEST: PREPARED BY: 2004-0902 November 22, 2004 Columbia Heights City Council Laurie Karnes, LEK Holding Company 1226 43rd Avenue NE R2 One and Two Family Residential District Lot Split Patrick Smith, AICP, City Planner Planning Considerations Consistency with Comprehensive Plan The City Comprehensive Plan designates this area for Iow density residential development. The proposed lot split will create newly configured lots that continue to be consistent with this designation. Consistency with Zoning Ordinance The property involved in the lot split is zoned R-2 One and Two Family Residential. The parcel is surrounded on all sides by properties zoned R-2. The lot split meets all of the lot area, setback and lot coverage requirements for the R-2 Zoning District. Section 9.903 of the Columbia Heights Zoning Ordinance regulates lot area, setback, height and lot coverage requirements and Section 9.603 regulates accessory structures and lot coverages. Section 9.904 regulates standards for "zero lot line" (twinhome) setbacks. Applicable requirements are as follows: For the proposed sinqle-family lot: Minimum lot size shall be 6,500 sq. ft. for a single family home. One lot will be created to contain the existing single family home on the site. This is referred to as Lot A on the certificate of survey. The total parcel area is currently 18,850 sq. fl. After the proposed lot split, Lot A will be 8, 700 sq. ft. Minimumlotwidthshallbe60feet. The total parcel is currenfly f 30 ft. in width. After the proposed lot split, Lot A will be 60 ft. in width. Yard setbacks shall be as follows: Front yard - 25 ft; side yard - 5 ft.; corner side yard - 10 ft.; rear yard - 20% of lot depth; detached accessory structures - 3 ft. from side and rear property lines. Afl of the setbacks of the existing structure on the proposed Lot A will meet P. 157 City of Columbia Heights City Council November 22, 2004 Lot Split, 1226 43rd Avenue NE Case #2004-0902 these requirements. The front yard setback will be 39.5 ft., the side yard setback will be 8.9 ft., and the corner side setback will be 18.5 ft. Any new structures that may be built subsequent to the lot split must also meet these requirements. Lots greater than 6,500 sq. ft. in area may have a lot coverage of up to 30 percent. Currently, entire parcel has a lot coverage of 7 percent. After the proposed lot split, Lot A would have a lot coverage of 16 percent. Any new structures that may be built subsequent to the lot split must also meet the lot coverage requirement. For the proposed twinhome lots: A twin home is defined as a single-family residential dwelling on an individual lot, sharing a common wall with another single-family residential dwelling. This is also known as a "zero lot line" development. Each individual lot has a separate PIN number. Combined, the two twinhome lots must contain the minimum required lot area, setbacks and lot coverage for twinhome dwellings in a given zoning district. According to Section 9.904, the yard for a single family attached dwelling may be reduced to zero (0) feet, provided that the following conditions are satisfactorily met: · The wall of the dwelling unit shall be placed upon said property line in a manner that does not encroach upon another property. · The applicant records all required agreements, easements and deed restrictions against all properties that abut the zero lot line. · The minimum front, side and rear building setbacks shall be applied to the structure as a whole, rather than to individual units. Two lots will be created that will each contain one twinhome. These are shown on the certificate of survey as Lots B and C. As required, Lots B and C taken as a whole will have a side yard setback of 5 ft. and a rear yard setback of 20% of lot depth. Front yard setbacks will be based on the average setback of other houses on the same block face within 200 ft. Any detached accessory structures must be a minimum of 3 ft. from side and rear property lines. In accordance with Section 9.602 of the Zoning Ordinance, in any residential district where the average depth of the front yard within 200 ft. and within the same block is lesser or greater than that required by ordinance, the required front yard shall be the average plus or minus 10 percent of the depth. This setback will be determined at the time of building permit application. · The minimum lot area requirement shall be applied by dividing the sum of the area of al! parcels occupied by the structure by the total number of dwelling units. The minimum lot area needed for development of twinhome dwellings is 9,000 sq. ft. and the total lot width must be 60 ft. After a lot split, each individual twinhome lot must have a minimum of 4,500 sq. ft. per dwelling unit and 30 ft of lot width. After the proposed lot split, Lots B and C will each have 5,075 sq. ft. and a lot width of 35 ft. The total property may have a maximum lot coverage of 30 percent (or 3,045 sq. ft. based on the combined area of Lots B and C of 10,150 sq. ft.). When reviewing twinhome subdivisions, the Planning and Zoning Commission and City Council have historically been provided with sample building elevations and footprints to confirm that twinhome development can occur on the property. These samples are not intended to be building permit plans but rather concepts of what will be developed. Therefore, attached to this report is a photograph of a single-family product built by the intended builder of the twinhomes. This product would be modified as shown in the attached elevation sketch to create two zero lot line twinhomes for the site. Placement would be approximately as shown on the attached Page 2 City of Columbia Heights City Council November 22, 2004 Lot Split, :1226 43rd Avenue NE Case #2004-0902 building footprint. Each unit would have 3 bedrooms and two bathrooms on the upper level. The lower level of each unit would contain a two-car garage unit and with the remainder of the level unfinished space. Findings of Fact 1. The proposed subdivision of land will not result in more than three lots. The proposed subdivision will three lots. 2. The proposed subdivision of land does not involve the vacation of existing easements. The proposed subdivision does not involve vacating existing easements. All lots to be created by the proposed subdivision conform to lot area and width requirements established for the zoning district in which the property is located. As detailed above, the lots conform to the minimum requirements of the R-2 Zoning District. The proposed subdivision does not require the dedication of public rights-of-way for the purpose of gaining access to the property. The proposed subdivision does not require any dedication of public right-of-way. The property has not previously been divided through the minor subdivision provisions of this Ordinance. City records do not show that there have been any previous minor subdivisions of the property. Records do show that the property was previously two lots that were combined into one lot in 1998. 6. The proposed subdivision does not hinder the conveyance of land. The proposed subdivision will not prohibit the conveyance of land. The proposed subdivision does not hinder the making of assessments or the keeping of records related to assessments. As long as the applicant records the lot split with Anoka County in accordance with all City and County requirements, this finding will be met. The proposed subdivision meets all of the design standards specified in the Section 14 (Subdivision Regulations). The proposed subdMsion meets the requirements of the Subdivision Regulations. Recommendation On a vote of four ayes and one nay, the Planning Commission voted to recommend that the City Council approve the lot split, .subject to conditions of approval outlined below. The applicant shall provide required utility and drainage easements for all newly created lots and be responsible for the cost of filing and recording written easements with the Anoka County Recorder's Office. 2. The applicant shall pay parkland dedication fees in the amount of $2,195 per lot for each of the two lots newly created lots. This fee is payable at the time of building permit. Page 3 City of COlumbia Heights City Council November 22, 2004 Lot Split, 1226 43rd Avenue NE Case #2004-0902 Should soil conditions on the property warrant, information as to how soil conditions will be corrected shall be submitted to the Building Official along with the building permit application. Upon approval of a minor subdivision, the applicant shall be responsible for filing the subdivision survey with the Anoka County Recorder's Office. The minor subdivision shall become invalid if not filed with the Anoka County Recorder within one (1) year of the date of the City Council action. Attachments Location Map Letter from Applicant Certificate of Survey Sample photographs, elevations and footprint P. 1 6 0 Page 4 City of COLUMBIA HEIGHTS COMMUNIT'Y DEVELOPMENT FIGURE 2-2, .FUTURE LAND USE M A P LEGEND Future Land Usc: Acres: % of Toml: F---I Law Density Residential 1,029.20244.30% ~ Medium De~ity Re:sidenlJal 59.538 2_56% ~ 48.191 2.0'/% 16.092 0.69% J ReligSo~s lnstit~Jons Comeee-mi~l ~0.026 3.8`/% ~ Industrial 87.~31 3.78% E~ Co~ Center District . ?.641 0.33% ~ Transit Or~enled Development 59.431 2.56% ~1 Tz'as~tlooal D~,alopment ]0.675 0.46% ~ V~::~nt 0.316 0.01% ~ Park 123.4~ 5.31% Public: [ ~ Right-of-Way 517.569 22.:28% Non-City Land: I:r'f'/'71 City of ltillmp 69.317 C:~773 City of Minneapolls '/4.845 3_22% I I Water Featmes 54.091 Ac-res Pared Lines O p,~levelopment Area 2323.443 I~10.00% N City Limita City o f Galumbla I-lelglds Conmm~t¥ Development [G. LS. Division) LEK Holding Company P.O. Box 1958 Maple Grove, MN 55311 August 5, 2004- City of Columbia Heights 590 40th Avenue NE Columbia Heights, MN 55421 re: Lot Split Request for 1226 43rd Avenue Dear Columbia Heights Staff, Planning Commission and City Council, I'm excited to be creating opportunities for three more families to live in your community. I purchased a home at 3919 Main Street NE in December of 2002 and split a lot off that property. I've been actively looking for another property in Columbia Heights ever since. Part of what makes Columbia Heights such a great place to live is the character of the community and the diversity of housing styles. I live in Maple Grove, where new construction has seen so many cookie cutter housing units that the Maple Grove City Council just approved a radically new zoning code to try to create the character that Columbia Heights already has. My petition is to keep the remaining single family home at 1226 43rd avenue as is and sell the property. On the vacant land I'm splitting off I'm proposing a Twin Home to be built by J.D. Roofing and Construction, Inc., who has built in your community. His letter is attached. The surrounding neighborhood has other scattered recently built 2 family homes including: 3820 NE Hayes, built in 2001 4401/4405 Quincy NE, built in 2002 677 NE 43rd Ave, built h~ 1999 The new proposed lot with the existing home does meet your standards to also build a Twinhome on it, being 8,700 square feet with 60' width. However, the existing home is in excellent condition so I'm leaving it as is. The new proposed Twinhome lot exceeds the standards for Twinh0me lots, as it will be 10,150 square feet and 70' wide. Each dwelling unit will be 35' wide and 5,075 square feet, exceeding the minimum 4,500 square feet. I understand that I could have a duplex built on the lot without requesting the additional lot line split down the center of my Twimhome lot. But a duplex, by definition, is a rental property because it is a two family home with one prope~W ID number so it can only have one owner. A Twinhome has two property ID nmnbers and can be sold to 2 different families, each owner occupied. I believe that owner occupied units will be more welcomed by the neighborhood. k,~,(~_Z~Sincerily' Laurie E. Karnes, President LEK Holding Company P. 162 July 28, 2004 City of Columbia Heights 590 40th Avenue NE Columbia Heights, MN 55421 Dear Columbia Heights Planning Commission and City Council, My name is Jack Buszta and a have a purchase agreement to buy the lot that LEK Holding is splitting off from 1226 43rd Avenue North, My intent is to build a Twinhome and sell it to two families, each side being owner occupied. If I built a Duplex that would, by definition, be a rental property. My homes features a sunken living room with a bay window that is popular with my home buyers. ! understand that the water and sewer are in the street and they are not stubbed to the lot. i know i am responsible to bear this cost to bring the utilities to service the new homes I'm building. This will be my second home built in your community. I also built a home at 4344 5th Street NE. I look forward to building again in Columbia Heights. Thank you. J.D. Roofing &.Construction, Inc.. 11345 Uplander Street Coon Rapids, MN 55433 P. 163 CERT I F I CATE -FOR I HERERY CERTIFY THAT THIS SURVEY, PLAN OR REPORT ~tAS PREPARED BY I~E OR UNDER UY DJ,~ECT SUPERVISION ~T t A~A ~LY LICENSED L~ SURVEYOR UNDER R~ndy L. Kurlh. ~.~.~ No.~70 Russell J. Kurth. L.L.S. No. 16113 OF SURVEY (MEASUREMENTS SHORN IN FEET ANO OECI~HLS OF A FOOT) KUR~H SURVEYING, INC. ~oo2 ~EFTERS~V ST. ~.~. . o ~o E-mAIL: KURTHSURVEY~AOLCO~ SCALE IN FEET DATE '~''" o = IRON MONUMENT 0 · .MA - CoO, 0 I I ~. . ':..: ~',"r~.L. ~_~.3 ~2- t_. (L,-7'L ,'~ "- 'l. '~'~-..,:~C-lz._ ~ T~--E:_G'Z:\,' '/'-~"-" ,,~ ~.'.-.'. '~.' Existing ~ul De<Hption ~te west 60.00 feet of the North 150.00 f~t of ~t 6, and ~e ~st 70.00 f~t of ~t 7. lying no~ of thc ~ufl~ 165.00 f~l; All in Bilk 3. Re~n'oir Hills. ~o~ Co~ty. Minoesom. ~te west 60,00 feet of ~c no~h 150.00 f~t of Lot 6, Bilk 3. Rc~'oir Hills. Ano~ County, Minncso~. Sdbject to e~cmcnts of r~ord. ~c east 35.00 fcc{ of Lot 7. Bilk 3. Rescmoir Hills. ~oka Count)'. Mimmso~, lying no~ of the ~uth 165.00 feet ofsaid Lot 7. Subjecl tO easements of ~ord. "c" ' P 164 , ~lC llCSI ]5.00 rcet of thc =si 70.00 feet or Lot 7. Bl<k 3. Rcscn'oir Hills. " nly. Mim~e. ola. lying north of thc south 165.00 fcc{ ormid Lot 7. Subjccl Io I I I I L P. 165 . t, :~ CITY COUNCIL LETTER Meeting of: November 22, 2004 AGENDA SECTION: ORDINANCES & RESOLUTIONS ORIGINATING DEPARTMENT: CITY MANAGER'S NO: ~ ~_)_ CITY MANAGER'S APPROVAL///fi~/ ITEM: 2004-2005 LABOR CONTRACT, LELS BY: LIN]DA L. MAGEE BY: ~,~-~.~ NO: DATE: 11-2-04 DATE: Negotiations between Law Enforcement Labor Services (representing the Police Officers), and members of the city negotiating team for a 2004-2005 labor agreement resulted in an impasse between the parties. Ten issues were certified by the Bureau of Mediation to interest arbitration. Listed below are the ten issues certified to arbitration, along with the arbitrator's award on each issue. 2. 3. 4. 6. 7. 8. 9. 10. Longevity - Amount of Longevity 2005: Wages Amount of Increase 2004: 2% (effective July 1, 2004) Wages Amount of Increase 2005: 2% (effective January 1, 2005) Wages Differential Amount Investigators: Increased from $110/month to $125/month Wages - Differential Amount School Liaison Officers: Increased from $110/month to $125/month Wages Differential Amount Corporals: Increased from $110/month to $125/month Licensure - Payment of License Fee: City shall pay POST licensing fee when due Insurance - Amount of Employer Contribution 2004: $535/month (no change from 2003) Insurance - Amount of Employer Contribution 2005: $555/month Longevity - Amount of Longevity 2004: No change No change Staff recommends acceptance of the arbitrator's award by the council adopting the attached resolution. RECOMMENDED MOTION: Move to waive the reading of the resolution, there being ample copies available to the public. RECOMMENDED MOTION: Move to adopt Resolution 2004-79, being a resolution regarding the labor agreement between the City of Columbia Heights and Law Enforcement Labor Services, Local 311. COUNCIL ACTION: P. 167 RESOLUTION 2004-79 REGARDING LABOR AGREEMENT BETWEEN CITY OF COLUMBIA HEIGHTS AND LAW ENFORCEMENT LABOR SERVICES, LOCAL 311 BE IT HEREBY RESOLVED by the City Council of the City of Columbia Heights that: WHEREAS, negotiations have proceeded between Law Enforcement Labor Services, Local 311, representing Police Officers of the City's Police DepmCment, and members of the City' s negotiating team, and said negotiations Lave resulted in an impasse between the parties on the following issues as certified by the Bureau of Mediation Smwices: 1. Wages - Amount of Increase 2004 2. Wages -Amount of Increase 2005 3. Wages - Differential gnnount Investigators 4. Wages - Differential gnnount School Liaison Officers 5. Wages - Differential Amomat Corporals 6. Licensure - Payment of License Fee 7. Insurance - gnnount of Employer Contribution 2004 8. laasurance- Amount of Employer Contribution 2005 9. Longevity- gnnount of Longevity 2004 10. Longevity- Amomat of Longevity 2005 WHEREAS, an arbitrator was selected by the pm-ties to determine such issues; and WHEREAS, the arbitration hearing resulted in the Enforcement Labor Services, Local 3 ! 1, Police Officers of: following, effective Janum3, 1, 2004, for Law 1. Wages - Amom~t of Increase 2004: 2% (effective July 1, 2004) 2. Wages - Amount of Increase 2005: 2% (effective January 1, 2005) 3. Wages - Differential Amount Investigators: Increased from $110/month to $125/month 4. Wages - Differential ganount School Liaison Officers: Increased from $1 !0/month to $125/month 5. Wages - Differential Amount Corporals: Increased fi'om $110/month to $125/month 6. Licensm'e - Payment of License Fee: City shall pay POST licensing fee when due 7. Insurance -Amount of Employer Contribution 2004: $535/month (no change from 2003) 8. hasurance- Amount of Employer Contribution 2005: $555/month 9. Longevity- Amom~t of Longevity 2004: No change 10. Longevity - Amount of Longevity 2005: No change BE IT FURTHER RESOLVED, that the Mayor and City Manager are hereby authorized to enter into a contract with Law Enforcement Labor Services, Local 311, Police Officers, effective Janum-y 1, 2004- December 31, 2005, in accordance with the arbitrator's award, and such contract is available for inspection at the office of the City Manager. Passed this __ day of November, 2004. Offered by: Seconded by: Roll Call: Juliem~e Wyckoff, Mayor Patricia Muscovitz, Deputy City ClerldCouncil Secretp TM P. 168 CITY COUNCIL LETTER Meeting of: 11/22/04 AGENDA SECTION: BID CONS!DER. ATION ORIGINATING DEPARTMENT: CITY M ~2q~AGER NO: ITEM: REJECTION OF BIDS FOR WATER TOWER BY: K. Hansen ~x~--~j BY: FENCING DATE: 11/16/04'~''~ DATE: Background: The City Council ordered advertisement for bids for this project at their October 13, 2003 meeting. One bid was received and read publicly aloud at 10:00 a.m. on Wednesday, November 3, 2004. Bid opening minutes are attached. Analysis/Conclusions: The single bid received in the amount of $35,817.50 for the base bid is approximately 30% over the Engineer's Estimate of $27,500. It is Public Works' recommendation to reject the bid and re-bid this work in the frrst quarter of 2005. With only a single bid and exceeding the Engineer's Estimate by 30%, it is staff's recommendation to re-advertise the project in an effort to receive additional bids for a better bid comparison and bids more consistent with the Engineer's Estimate. Recommended Motion: Move to waive the Reading of Resolution No. 2004-81, there being ample copies available to the public. Recommended Motion: Move to consider Resolution No. 2004-81 for 2004 Water Tower Fencing and Restoration, City Project No. 0307 to reject the bids and re-advertise the project in the first quarter of 2005. mU.-jb Attackment: Resolution Bid Opening Minutes COUNCIL ACTION: P. 169 RESOLUTION NO. 2004-81 BEING A RESOLUTION REJECTING THE BIDS FOR THE 2004 WATER TOWER FENCING AND RESTORATION PROJECT NO. 0307 WHEREAS, the Cotmcil ordered the bidding for the 2004 Water Tower Fencing and Restoration, City Project No. 0307, and WHEREAS, a formal bid opening was held on November 3, 2004, at 10:00 a.m., and WHEREAS, a single bid was received, and WHEREAS, the lowest bid is percent over the Engineer's Estimate. NOW THEREFORE BE IT RESOLVED: The 2004 Water Tower Fencing and Restoration Project No. 0307 bid received December 3, 2004, be rejected m~d staffbe directed to Dated this 22nd Offered by: Seconded by: Roll Call: day of November, 2004 CiTY OF COLUMBIA HEIGHTS BY Mayor Patricia Muscovitz, Deputy City Clerk P. 170 CITY OF COLUMBIA HEIGHTS Minutes of Bid Opening on Wednesday, November 3, 2004 2004 Water Tower Fench~g and Installation Project No. 0307 Pursuant to an advertisement for bids for 2004 Water Tower Fencing and Installation, an administrative meeth~g was field on November 3, 2004 at 10:00 a.m. for the purpose of bid opening. Only one bid was received, opened and read aloud. Attendh~g tlie meeting were: Mike Olzeske, Security Fence Kevh~ Hansen, City Engineer Joam~e Baker, Public Works Secretary Bids were opened and read aloud as follows: Bidder TOTAL Security Fence & Construction $35,817.50 /R~ectfully submitt?,~_ ~_ Joam~e Baker Public Works Secretm'y jb P. 171 CITY COUNCIL LETTER Meeting of: November 22, 2004 AGENDA SECTION: Items for Consideration ORIGINATING DEPT.: CITY MANAGER NO: --/ C_. License Department APPROVAL ITEM: Renewal of Cigar Lic for Salem Tobacco BY: Shelley Hanso '.rb-~ DATE: & Renewal of Cigar Lic for Jerusalem Cafe~ ° NO: DATE: November 19, 2004 BY: BACKGROUND/ANALYSIS Attached is the business license renewal of the 2005 Cigarette/Tobacco Licenses for Mr. Adel Salem & Assoc. dba Salem Tobacco at 2325 37th Place NE and for Ms. Zah/ra Aqel and Mr. Adel Salem dba Jerusalem Cafe at 4921 Central Avenue. It is Staff's recommendation that these licenses be denied based on the fact that Mr. Adel Salem was recently convicted of a Federal offense. A copy of the Police Chief's memo is attached as well as other background information pertinent to the request for re-licensing. At the top of the license agenda you will notice a phrase stating *Signed Waiver Form Accompanied Application. This means that the data privacy form has been submitted as required. If not submitted, certain information cannot be released to the public. RECOMMENDED MOTION: Move to deny the 2005 application for a Cigarette/Tobac~(~ Sales license for Mr. Adel Salem dba Salem Tobacco operating-at 2325 37th Place NE based on the recommendation of the Police Department. AND Move to deny the 2005 application for a Cigarette/Tobacco Sales License for Ms. Aqel and Mr. Salem dba Jerusalem Caf6 operating at 4921 Central Ave NE based on the recommendation of the Police Department. COUNCIL ACTION: P. 172 TO CITY COUNCIL November 22, 2004 *Signed Waiver Form Accompanied Application 2005 BUSINESS LICENSE AGENDA APPROVED BY POLICE CIGARETTE/TOBACCO SALES *Mr. Adel Salem & Assoc dba Salem Tobacco Inc 2325 37th Place NE $300.00 *Ms. Zahira Muhammed Aqel and Mr. Adel Salem & A. ssoc dba Jerusalem Caf6 4921 Central Ave NE $300.00 ****RECOMMENDED DENIAL BY POLICE DEPT**** license agenda P. 173 COLUMBIA HEIGHTS POLICE DEPARTMENT DATE: October 20, 2004 TO: FROM: SUBJECT: Shelley Hanson, License/Permit Clerk Thomas M. Johnson, ChiefofPolic~) Cigarette/Tobacco License for Salem Tobacco Inc. The Columbia Heights Police Department has completed a background investigation of Mr. Adel Salem and Associates, d.b.a. Salem Tobacco Inc, 2325 37th Place NE. Columbia Heights, Minnesota. Mr. Salem applied for a Cigarette/Tobacco License. The department has checked the criminal history of Mr. Salem, and we have checked our local · files and with the law enforcement agencies in the jurisdictions where he has resided. Initially we found nothing that would preclude them fi-om being issued a Cigarette/Tobacco License. Then in the October 16, 2004 issue of the Star Tribune it was noted in an article (see attached) that Mr. Adel Salem plead guilty to mail fraud in relationship to a "bust out" scheme fi-om 1996 to 19991 This scheme involved the fraudulent purchase of nearly $1 million dollars in cigarettes. We also found that Mr. Salem and one of his Associates were charged for selling Tobacco products to a minor during one of our compliance checks in:December of 2001 Columbia Heights City Ordinance 5.302(5) (B) Basis for Denial of License states "The applicant or any employee thereof has been convicted within the past five years of any violation of Federal, State, or Local Law, ordinance provision, or other regulation relating to tobacco products, or tobacco related devices" may be grounds for denying the issuance or renewal of a license under this ordinance. It is the recommendation of the Police Department. that a Cigarette/Tobacco License not be issued to Salem Tobacco Inc., at 2325 37th Place NE based on the recent Federal ConvictiOn. P. 174 .COLUMBIA HEIGHTS POLICE DEPARTMENT DATE: October 28, 2004 TO: FROM: SUBJECT: Shelley Hanson, License/Permit Clerk · Thomas M. Johnson, Chief ofPolic Cigarette/Tobacco License for Jerusalem Market The Columbia Heig~hts Police Department has completed a background investigation of Ms. Zahira Muhammad Aqel and Mr. Adel Salem and Associates, d.b.a. Jerusalem Market, 4917 Central Ave. NE Columbia Heights, Minnesota. MS. Aqel and Mr. Salem applied for a Cigarette/Tobacco License. The department has checked the criminal history of Ms. Aqel and we find nothing to prevent her from having a Cigarette/Tobacco License. We also checked Mr. Salem in our local files and with the law enforcement agencies in the jurisdictions where he has resided. Initially we found nothing that would preclude them from being issued a Cigarette/Tobacco License. Then in the October 16, 2004 issue of the Star Tribune it was noted in an article (see attached) that Mr. Adel Salem plead guilty to mail fraud in relationship to a "bust out" scheme from 1996 to 1999. This scheme involved the fraudulent purchase of nearly $1 million dollars in cigarettes. We also found that Mr. Salem and one of his Associates were charged for selling Tobacco products to a minor during one of our compliance checks in December of 2001 Columbia Heights City Ordinance 5.302(5) (B) Basis for Denial of License states "The applicant or any employee thereof has been convicted within the past five years of any violation of Federal, State, or Local Law, ordinance provision, or other regulation rel'ating to tobacco products, or tobacco related devices" may be grounds for denying the issuance or renewal'Of a license under this ordinance. It is the recommendation of the Police Department that a Cigarette/Tobacco License not be issued to Jerusalem Market, at 4917 Central Ave. NE based on the recent Federal Conviction of Mr. Salem. P. 175