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HomeMy WebLinkAboutNovember 18, 2002 Work SessionCITY OF COLUMBIA HEIGHTS 590 40th Avenue N.E.. Columbia Heights. MN 55421-3878 (763) 706-3600 TDD (763) 706-3692 Visit Otlr Website at: wwmci, coh,nbia-heights.mn, us ADMINISTRATION NOTICE OF CITY COUNCIL MEETING to be hem in the CITY OF COL UMBIA HEIGHTS as follows: Mayor Gary £. Peterson Councilmembers Marlaine Szurek Julienne Wyckoff Bruce Nawrocki Robert A. Williams City Manaoer Walt Fehst Meeting of: Date of Meeting: Time of Meeting: Location of Meeting: Purpose of Meeting: COLUMBIA HEIGHTS CITY COUNCIL NOVEMBER 18, 2002 7:00 P.M. CONFERENCE ROOM 1 WORK SESSION AGENDA Discussion Items 1. Wheelchairs for Peace project video. 2. Southern Anoka County Community Consortium (SACCC) agreement renewal 3. Gondek Property Easement 4. Sale of Lomianki Park North 5. Purchase of commercial building for redevelopment project 6. Budget (preparation for Troth & Taxation Hearing) 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 handicapped persons are available upon request when the request is made at least 96 hours in advance. Please call the City Council Secretary at 706-3611, to make arrangements. (TDD/706-3692 for deaf or hearing impaired only) ThE CITY OF COLUMBIA HEIGHTS DOES NOT DISCRIMINATE ON THE BASIS Of DISABILITY IN EMPLOYMENT OR THE PrOVISiON OF SERVICES EQUAL OPPORTUNITY EMPLOYER COLUMBIA HEIGHTS - CITY COUNCIL LETTER Meeting of: November 25, 2002 AGENDA SECTION: ORIGINATING DEPARTMENT: CITY MANAGERS NO: CITY MANAGER APPROVAL ITEM: Adopt Resolution No. 2002-68 BY: Walt Fehst Renewal of Joint Powers Agreement & DATE: November 14, 2002 · Values First/SACCC Coordinator Services NO: Background: Attached is a request to renew the Joint Powers Agreement and Values First/Southern Anoka County Consortium (SACCC) Coordinator Services for fiscal year 2003-2004. The Cost to Columbia Heights is $5,614 for 2003 and $5,782 for 2004. The effectiveness and accountability of this organization has improved greatly with Barb Warren as its part-time coordinator. I would recommend that we continue with this coordinated effort. Recommendation: Staff recommends the renewal of the Joint Powers Agreement with the Southern Anoka County Community Consortium and the payment of the annual fees for FY 2003-2004. Recommended Motion: Move to waive the reading of Resolution No. 2002-68, there being ample copies available to the public. Adopt Resolution No. 2002-68, to extend the term of the Southern Anoka County Community Consortium Joint Powers Agreement for payment of the annual fees for FY 2003- and 2004. COUNCIL ACTION: RESOLUTION NO. 2002-68 EXTENDING THE TERM OF THE SOUTHERN ANOKA COUNTY COMMUNITY CONSORTIUM JOINT POWERS AGREEMENT WHEREAS, in June of 1985, a Joint Powers Agreement established the Southern Anoka County Community Consortium consisting of Anoka County, and the Cities of Columbia Heights, Fridley, and Hilltop and Independent School Districts #13 and #14; and, WHEREAS, the general purpose of this Joint Powers Agreement is to allow each party to jointly and cooperatively coordinate the delivery of services, maximize the use of resources, avoid redundancy, encourage public, private community partnerships, and to develop and find programs to promote the general community health and safety in the territory of the cities herein; and, WHEREAS, a very successful example of this joint, cooperative effort is the establishment of the community values program known as Values First which has been recognized throughout the country as a model for promoting core values consistently across all sectors of the community so that youth and adults have a common, inclusive foundation upon which to operate. NOW, THEREFOR, BE IT RESOLVED that the City of Columbia Heights supports the efforts of the Southern Anoka County Community Consortium and does hereby renew and enter into the aforesaid Southern Anoka County Community Consortium Joint Powers Agreement (Contract #950154A) until December 31, 2004, unless earlier terminated or extended under the terms hereof. Dated this ~ day of~ 2002. Offered by: Seconded by: Roll Call: Attest: Mayor Gary L. Peterson Patricia Muscovitz, Deputy City Clerk COUNTY OF ANOKA Of~e of Court t~ Administration GOVERNMENT CENTER 2100 3rd Avenue · Anoka, Minnesota 55303-2265 (763) 323-5700 TIM YANTOS Deputy County Administrator Direct #763-323-5692 October 25, 2002 MEMO TO: FROM: SUBJECT: Commissioner Jim Kordiak Nancy Kaldor, Superintendent Ind. School Distdct #13 Walter Fehst, City Manager, City of Columbia Heights Dr. Mary Ann Nelson, Superintendent, Fridley Ind. School District #14 Dr. William W. Bums, Manager, City of Fridley Ruth Nelson, Clerk, City of Hilltop Tim Yantos, Deputy County Administrator Renewal of Joint Powers Agreement and Values First and SACCC Coordinator Services for 2003-2004 At the October 2, 2002, meeting of the Southem Anoka County Community Consortium (SACCC), the consortium recommended that the participating SACCC members consider renewing the current Joint Powers Agreement by extending the term to December 31,2004. According to Article 8 of the current Joint Powers Agreement, "This agreement may be renewed for an additional term of two years each by resolution-of all of the governing bodies of the parties hereto, prior to the expiration date of this agreement." I have attached a sample resolution you may wish to use to allow for this extension. The SACCC again recommends that a contract be continued for a 25-hour per week Values First/SACCC coordinator. The consortium recommends a 25-hour per week coordinator of which 20 hours per week would be dedicated to the community values program and approximately five hours per week for the SACCC. The consortium recommended that this contract position would be for two years. The total cost for the position in 2003 would be $36,693 and in 2004, $37,794, which represents a three percent increase. The formula used for2000-2002 drew down the budget reserve to hold down our costs. If we were to use that same formula, we would be left with approximately $1,500 at the end of 2004. We must raise ourcontdbution to create a small $5,000-$6,000 budget reserve. The formula enclosed would accomplish this end. FAX: 763-323-5682 Affirmative Action I E¢lual Opportunity Employer TDD/TTY: 763-323-5289 October 25, 2002 Page 2 2003 2004 City of Fddley $5,614 $5,782 City of Columbia Heights $5,614 $5,782 School District #13 $4,138 $4,262 School Distdct #14 $4,138 $4,262 City of Hilltop $296 $304 Anoka County Up to $10,000 Up to $10,000 $9,ooo* $9,ooo* $38,798 $39,392 *The remaining $9,000 for2003 and 2004 for the SACCC coordinator would come from current budgeted reserves. The fund balance at the end of 2004 would be approximately $1,598. The consortium requests each member governing body take action on the approval of the' extension for the Joint Powers Agreement and funding of the coordinator by December 1,2002.. Should you have any questions regarding this matter, please do not hesitate to contact me. TY:sky Enclosu res cc: Barb Warren, SACCC Coordinator Community De~ To: City Council From: Tim Johnson, City Planner Date: 11/15/2002 Re: Access issues for 325 Summit Street and 334 40th Avenue The City Council has requested discussion of access issues for Castle Distributing at 334 0 Avenue and for the home at 325 Summit Street NE. Please refer to existing conditions map and proposed property redevelopment map for reference. As the City Council should be aware, Castle Distributing currently uses 40th Avenue, Lookout Place and the adjacent alley for vehicle access and deliveries to the property. With the potential vacation of Lookout Place and a possible reconfiguration of the adjacent alley, the Council should be aware that vehicle access point changes may be necessary in the future. However, without any specific redevelopment plans on the table, it is too premature to speculate exactly how access may be changed or impacted on these properties. In regards to 325 Summit Street, a possible alley reconfiguration from north to south will change the way the property currently appears. If a north-south alley is constructed, it could possibly be placed within 10-30 feet from the bottom of the stoop now facing Lookout Place. The City would have the discretion to decide what would be an appropriate and safe distance for an adjacent alley from the front of the home at 325 Summit Street. SCALE IN FEET DA'IE o = IRC EXISTING CONDITIONS 40TH 3955 VACANT LOT 322 334 ;I VACANT (3 LOT 325 0 A,-LI$83A INn 0 0 - COLUMBIA HEIGHTS CITY COUNCIL LETTER wxeeung oI: l'~ovemver 22. 2002 AGENDA SECTION: ORIGINATING DEPARTMENT: CITY MANAGER'S NO: Community Development APPROVAL.,,, ITEM: Sale ofLomianki ParkNorth BY: Randy Schumacher'~ DATE: November 14. 2002 BACKGRCIIINI¥ tq.~ .-,c,h .... , ..... ~.c__.: · : most cost effective redevelopment tools a Community Development Department can offer is the ability to assist high quality businesses to expand within the City. I believe Profile Tool and Engineering located at 3825 3ra Street meets that high-quality threshold. They approached the City in early October 2002 to assist in their expansion. Glen Stauffacher has owned and operated Profile Tool for over 10 years. He employs about 10 full time employees, runs a clean business, gets high marks from the Fire Department on his annual safety review, and needs to expand his current business from 8,000 square feet to 15,000 square feet. He would like to stay in Columbia Heights because of its central location to his suppliers and trade market. He requested assistance from the Community Development Department in locating a site for his new building. For 2003 construction purposes, he would need a commitment by year-end. Staff reviewed the City's portfolio and is recommending that the City Council consider selling Lomianki Park North to Mr. Stauffacher for the following reasons: · Present Zoning is correct for Industrial use. · Removal of Park Designation is consistent with the Comprehensive Plan per Park Board and Planning and Zoning recommendation. · An existing 23,672 square foot industrial building boarders the site to the South. · Railroad property is directly West of the site. · Fridley City limits on the North end of the property eliminates future expansion of the road system. The site has numerous negative characteristics for redevelopment purposes- i.e. high antenna at Southwest comer, larg6 banks of elevated lights from the railroad yard and switching noise. An industrial use would be least impacted by these issues. California Street has been partially vacated to accommodate parking needs of the Industrial Building located directly South of this property. By extending that vacation North to the City limits this would allow the new building to be moved West on the site providing a larger buffer (approx. 45 fi) between the residential neighborhood on the East side. OTHER RELATED ISSUES If Profile Tool moved out of the existing building at 3825 ya Street, this would give the City an opportunity to relocate another business in Columbia Heights that needs additional space. Staffhas been working with the owner of MGS, located on 40~ and Lookout Place. The Profile Tool building would be a good fit for MGS, meetings its need for additional square footage and bus route location. Appraiser Malcolm Watson placed an estimated value of $2.40 per square foot on the available Lomianki Park property. Mr. Stauffacher has agreed to pay $2.50 per square foot or approximately $101,632 for the Industrial site. The present taxes being paid on the Profile Tool building (approx. 8,200 square feet) is $6,000 per year. The estimated tax on his new building at 15,000 square feet would be $28,000. If the City Council supports the recommendation of City staff and authorizes the project to move forward, the following procedural steps would take place: 1. City Council would take action to remove the present Park status on the property. 2. City Council would approve first reading of Ordinance for the sale of the property and authorize execution of a purchase agreement. 3. City Council would approve 2nd reading of the Ordinance for the sale of property. 4. 30 days after the 2nd reading of the Ordinance, a closing could take place. 5. Planning and Zoning would review site plan to assure consistency with City Ordinance and recommend to City Council any vacation of Road Right-of-Way if necessary. COUNCIL ACTION: h: \Consent2002\CLSale of homianki Park North RAILROAD PROPERTY PROPOSED IHDUSTRIAL SITE -~, 3929 128.0' 5905 METAL TREATERS INC. ,3 I 2 8. O' COLUMBIA HEIGHTS CITY COUNCIL LETTER Meeting of: November 25, 2002 AGENDA SECTION: ORIGINATING DEPARTMENT: CITY NO: Community Development M ' ANAGER S APPROVAL ITEM: Adopt Resolution 2002-67, BY: Randy Schumacher BY:~. Approving Purchase Agreement for 3710 DATE: November 13, 2002 Central Avenue N.E. · a ~g meeting in January of 2002, the City Council and EDA Board established Central Avenue as a priority for redevelopment. One of these project areas, located at 37~ and Central includes Puerta Villerta (Old Bridgeman's), Vera Johnson and Heidi VonHeidimann homes, and the Beecrofi office building. All are 50 foot properties on Central with the exception ofPuerta Villerta, which has a 200 foot frontage. These properties are in blighted condition with the exception of the Beecrofi property, which is obsolete in function. The City has acquired the two single-family homes and are in the process of removing those structures. The owner ofPuerta Villerta is a developer and has been working with City staff on a Commercial/Housing redevelopment proposal that would include all property listed above (350 feet on Central). The Beecrofi property has become available for acquisition due to the retirement of Paul Beecrofl effective December 31, 2002. Therefore, this would be a voluntary sale. The City requested an appraisal from Malcolm Watson, which was completed in August, 2002. The appraiser used both the cost approach and market comparison approach and came in with an estimated value of $230,000. That number was upgraded to $234,000 due to a math error on square footage and parking lot values. Staff has been negotiating with Mr Beecrofi for over three months. Mr. Beecroft has agreed to enter into a purchase agreement in the amount of $248,800. This value is 6.3% over the appraisers estimated value, but is within reasonable limits of the appraisers variables. Mr Beecrofi has agreed to waive any relocation benefits associated with the sale of this property. RECOMMENDATION: Staff recommends City Council Adopt Resolution 2002-67, a Resolution authorizing the purchase of property at 3710 Central Avenue N.E. RECOMMENDED MOTION: Move to waive the reading of Resolution 2002-67, there being ample copies available to the public. RECOMMENDED MOTION: Move to Adopt Resolution 2002-67, being a Resolution authorizing the purchase of 3710 Central Avenue N.E. and utilizing the revenues in Fund 414 for interim financing. Attachments COUNCIL ACTION: h:\Consent2002\CL Purchase Agreement 3710 Central Ave. RESOLUTION 2002 - 67 BEING A RESOLUTION AUTHORIZING THE PURCHASE OF 3710 CENTRAL AVENUE N.E. WHEREAS, the City Council and EDA have established Central Avenue as a priority for redevelopment in order to remove blight and improve vitality on the avenue; and WHEREAS, the City presently owns two properties in this redevelopment area and are in the process of negotiating a commercial/housing redevelopment project at this site; and WHEREAS, the property located at 3710 Central Avenue N.E. is part of the redevelopment site and has become available for a voluntary sale; and WHEREAS, the proposed purchase agreement is within reasonable limits of the appraisers value estimate for this property. NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Columbia Heights that: The City Council hereby approves the terms of the Purchase Agreement for 3710 Central Avenue N.E. between the City of Columbia Heights and Paul and Virolnia l:leeeroft, and authorizes the Mayor and the City Manager to sign it on behalf of the City a['a purchase price of $2_48,800310, which is established as a fair market value based on negotiations with the property owner. The City Council hereby authorizes the City Manager to handle all the requirements and conditions in order for the City to complete the transaction contemplated in the Purchase Agreement. The City Council approves payment of the purchase from the reimbursed at the time redevelopment of this property takes place. Fund, to be Passed this __ day of November, 2002 Offered by: Second by: Roll Call: Mayor Gary L. Peterson Patricia Muscovitz, Deputy City Clerk Address: 3710 Central Avenue N.E. Columbia Heights, MN PIN # 35-30-24-44.0119 Page 1 of 6 REAL ESTATE SALE/PURCHASE AGREEMENT THIS AGREEMENT, made as . ~'r i~ia~-i;;r,a', ~___. ,~ofth~e.__.____ day of Nov a municioa! ,~~'-rrelnaner reterre,~ ,~ -- ,,_,, !~ove.m.ber 2002, by and b pa~ corporation, hereinaa ...... ,, t~, ~ ~euer, ana the c~;,.. _e~ . . Ctween *t~ reterrea to as Buyer. ,-l,y vx~olumOia Heights, WITNESSETH: WHEREAS, Seller Owns certain real estate situated at 3710 Central Avenue, Columbia Heights, Minnesota, and legally described below; and WHEREAS, Buyer wishes to purchase and Seller is willing to sell to Buyer said real estate, building and fixtures; and WHEREAS, the parties wish to define their respective rights, duties and obligations related to the sale/purchase of said real estate. NOW, THEREFORE, in consideration of the mutual promises and the respective agreements contained herein, the parties hereby agree as follows: The Seller hereby agrees to sell and the Buyer hereby agrees to purchase the following described real estate located in the City of Columbia Heights, State of Minnesota to-wit: Lot 16, Block 87, Columbia Heights Annex Page 2 of 6 2. Purchase Price The purchase price for the subject property shall be the sum of Two Hundred Forty Ei£ht Thousand eight hundred and 00/100 Dollars ($248,800.00) payable at closing. 3. Contingency This offer is contingent upon approval by the Columbia Heights City Council for a period of 60 days after signing of the Purchase Agreement by the Seller. 4. Closing The closing shall be within 30 days after all required City Council actions have been finalized and all title objections have been satisfied by the Seller, if any have been made by the Buyer. 5. Possession The Seller further agrees to deliver possession not later than after closing provided that all conditions of this agreement have been complied with. All charges for city water, city sewer, electricity, and natural gas shall be prorated between the parties as of date of possession. Seller agrees to remove ALL DEBRIS AND ALL PERSONAL PROPERTY NOT INCLUDED HEREIN from the property by possession date. Any personal property not removed by the date of possession, shall be considered the property of the Buyer. 6. Deed/Marketable Title Subject to performance by the Buyer, the Seller agrees to execute and deliver a Warranty Deed conveying marketable title to said premised subject only to the following exceptions.: a) 2) 3) 4) 5) Building and zoning laws, ordinances, State and Federal regulations. Restrictions relating to use or improvement of premises without effective forfeiture provision. Reservation of any minerals or mineral rights to the State of Minnesota. Utility and drainage easements, which do not interfere with present improvements. Rights of tenants as follows: (unless specified, not subject to tenancies) Page 3 of 6 7. Title The Seller shall, within a reasonable time after approval of this agreement, furnish an abstract of title, or a registered Property Abstract certified to date to include proper searches covering bankruptcies, and State and Federal judgements and liens. The Buyer shall be allowed 15 days after receipt thereof for examination of said title and the making of any objections thereto, said objections to be made in writing or deemed to be waived. If any objections are so made the Seller shall be allowed 60 days to make such title marketable. Pending correction of title the payments hereunder required shall be postponed, but upon correction of title and within 10 days after written notice to the Buyer, the parties shall perform this agreement according to its terms. If Seller shall fail to have said exceptions removed or satisfied within the time provided, Buyer may elect to do one or more of the following: (a) remove or satisfy the exceptions on behalf of Seller and at Seller's cost and expense, all of which costs and expenses shall be deducted from the purchase price at closing; (b) elect to purchase the property subject to the exceptions; and/or (c) declare this Agreement null and void (in which case neither party shall have any further liability or obligation to the other. In the event Buyer elects to remove or satisfy the exceptions on behalf of Seller in accordance with alternative (a) above, Seller shall cooperate. with and assist Buyer in all reasonable respects. 8. Real Estate Taxes Real estate taxes due and payable in and for the year of closing shall be prorated between the Seller and Buyer on a calendar basis to the actual date of closing. 9. Special Assessments Seller shall pay on date of closing all installments of special assessments. Seller shall pay on date of closing all other special assessments levied as of the date of closing. Seller shall provide for payment of all special assessments pending as of the date of closing for improvements that have been ordered by the city or other assessing authorities. Seller shall pay on the date of closing, any deferred taxes. 10. Seller Warranties Seller warrants that buildings, are or will be, constructed entirely within the boundary lines of the property. Seller warrants that there is a right of access to the property from a public fight of way. These warranties shall survive the delivery of the deed or contract for deed. Page 4 of 6 Seller warrants that prior to the closing, payment in full will have been made for all labor, materials, machinery, fixtures or tools furnished within the 120 days immediately preceding the closing in connection with construction, alteration or repair of any structure on or improvement to the property. Seller warrants upon execution of this Agreement, Seller will not rent the property once it is vacated by any person now occupying same. Seller warrants Seller has executed no option to purchase, right of first refusal, or any other agreement giving any person or other entity the right to purchase or otherwise acquire any interest in the property, and Seller is unaware of any option to purchase, right of first refusal, or other similar rights affecting the property, except as otherwise noted in the title commitment for the property. Seller has received no notice of any action, litigation, investigation or proceeding of any kind pending against Seller, nor to the best of Seller's knowledge is any action, litigation, investigation, or proceeding pending or threatened against the Subject Premises, or any part thereof. On the Date of Closing, there will be no service contracts in effect in connection with the Subject Premises, except those, which are terminable on thirty (30) days' written notice. 11. Risk of Loss If there is any loss or damage to the property between the date hereof and the date of closing, for any reason including fire, vandalism, flood, earthquake, or act of God, the risk of loss shall be on Seller. If property is destroyed or substantially damaged before the closing date, the Purchase Agreement shall become null and void, at Buyer's option. Buyer and Seller agree to sign cancellation of Purchase Agreement. 12. Time of Essence Time is of the essence in this Purchase Agreement. 13. Acceptance Seller understands and agrees that this Purchase Agreement is subject to acceptance by Buyer in writing. 14. Environmental Concerns To the best of the Seller's knowledge there are no hazardous substances, underground storage tanks, or wells except herein noted: Page 5 of 6 15. Well Disclosure Buyer acknowledges receipt of a well disclosure statement from Seller attached as Exhibit A to this Agreement. 16. Individual Sewage Treatment System Disclosure Seller discloses that there is not an individual sewage treatment system on or serving the Property. 17. As-ls-Basis It is specifically agreed that the Real Property is being conveyed to the Buyer by the Seller in "As-Is Condition" ("with all faults"). 18. Right of Entry Buyer is duly authorized agents shall have the right during the period from the date of this Agreement to 'closing, to enter in and upon the Premises in order to make, at Purchaser's. expense, surveys, measurements, wetlands delineations, soil tests, and other tests that Buyer shall deem necessary. Buyer agrees to restore any resulting damage to the Premises and to indemnify, hold harmless and defend Seller from any and all claims by third persons of any nature whatsoever arising from Buyer's right of entry hereunder, including all actions, suits, proceedings, demands, assessments, costs, expenses and attorney's fees. 19. Brokers Commissions In the event Seller has retained the services of any agent, person, corporation or firm to assist in the sale of the property who, in turn, is entitled to a commission by reason of this Agreement and the closing hereunder, Seller hereby agrees to indemnify and hold Buyer harmless from any liability arising therefrom. 20. Entire Agreement This Purchase Agreement, any attached exhibits and any addenda or amendments signed by the parties, shall constitute the entire agreement between Seller and Buyer, and supersedes any other written or oral agreements between Seller and Buyer. This Purchase Agreement can be modified only in writing signed by Seller and Buyer and is contingent upon the execution and passage of all necessary City and State requirements. Page 6 of 6 21. Incidental Expenses All expenses of examination of title, transfer tax, and closing fees will be paid by the Buyer. Any cost incurred to remove any cloud on the title to convey a good and marketable title to said premised subject shall be the responsibility of the Seller. 22. Ineligible for Relocation Assistance The Seller acknowledge that they have voluntarily entered this Purchase Agreement and, as such, acknowledge that the Sellers are not a displaced persons~ as defined by The Uniform Real Property Acquisition and Relocation Act of 1970 as amended and M.S. 117.52 and hence the Sellers are not eligible for any relocation assistance or benefits (see Addendum AC@, Waiver Agreement Regarding Relocation Benefits). The undersigned, owner of the above land, does hereby approve the above agreement and the sale thereby made. SELLER: (NAME OF SELLER) I hereby agree to purchase the said property for the price and upon the terms above mentioned, and subject to all conditions herein expressed. BUYERS: Walter Fehst - City Manager, Columbia Heights Gary Peterson - Mayor, City of Columbia Heights FINAL ACCEPTANCE DATE OF PURCHASE AGREEMENT: HSForms~urchase Agreement3710Central