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HomeMy WebLinkAboutJune 15, 1987OFFICIAL PROCEEDINGS COLUMBIA HEIGHTS CITY COUNCIL SPECIAL COUNCIL MEETING JUNE 15, 1987 The Special Council Meeting was called to ord'er by Mayor Nawrocki at 7:45 p.m.. 1. Roll Call Paulson, Carlson, Peterson, Nawrocki - present Petkoff - absent Councilmember Petkoff arrived at the meeting at 9:00 p.m.. 2. Purpose of Special Meeting To conduct a public hearing regarding various documents relating to the development of property at Sullivan Lake. 3. Presentation of Business Items and Relevant Information a. Modification of the City's existing Downtown Central Business District Revi- talization Plan and Establishing the Sullivan Lake Tax Increment Financing District The modification to the existing plan and its extension to the Sullivan Lake area was discussed. A resident inquired if funds from the Downtown Redevelopment Plan were going to the Sullivan Lake Plan. The Mayor responded that a separate district could be established but presently it was decided to expand the present Tax Incre- ment Financing District. Todd Stutz, the HRA's Director of Community Development, reviewed the fourth draft of the contract between the HRA and the Rottlund Company. Each change in the document was addressed. The anticipated completion date for the entire project which would include the City-owned parcel 1 and the acquired property parcel 2 is January 1990. Mayor Nawrocki requested Stutz to ~xplain what would happen if the developer of the project defaulted or withdrew from the project. Stutz stated that the mortgage holder (s) would be required to complete the project. The Mayor also inquired what would happen to the bond issue if parcel 2 were not acquired. The City Manager advised that there is a redemption provision in the agreement. b. Development Agreement Between the City of Columbia Heights and the HRA The City Attorney had not reviewed this document at this point in time. He will look it over during the meeting. c. Planned Unit Development Preliminary Plan ' .~ The Council received the minutes of the Planning and Zoning Commission Public Hearing held on June 9, 1987. The Commission approved the Planned Unit Development concept Plan based upon compliance with the goals and objectives of the City's Comprehensive Plan. The preliminary plan was approved by the Commission based on five conditions, one of which was approved of the Traffic Commission. Councilmember Carlson stated that the Traffic Commission approved the plan at i~ts meeting on June 8, 1987. d. Petition Requesting an Environment Assessment Worksheet (EAW) It was noted that the City is neither mandated nor exempted from preparing an EAW. After reviewing Environmenta~ Review Program, Councilmember Paulson felt a small portion of the Program ~ouid apply to this project. Staff advised the preparation of the report would take about two months and cost approximately $2,500. The Council was polled regarding its position on preparing this report and the consensus sup- ported not preparing it. Mayor Nawrocki stated he supports the extension of the Tax Increment District and the Development Agreement between the City and the HRA for this project. He does Special Council Meeting June 15, 1987 page 2 not support the agreement between the HRA and this particular developer. The Mayor expressed hopes for a higher quality development and felt this proposal was not in the best interest of the City. Councilmember Paulson felt that quality is anyone's definition and that the project would be a good one for the City ~f Columbia Heights. He noted that much time had been spent in viewing this developer's other projects and they were impressive. Councilmember Carlson is not interested in this specific proposal and opposes the relocation of the double bungalows on parcel 2. Councilmember Petkoff expressed support for this developer's proposal. She feels it is a quality development and that any concerns the Council has had in the past were addressed in the development agreement by staff. She noted that this is just the beginning of Council and staff involvement with the project and that it ~ill be closely watched by all involved. Councilmember Peterson stated he supports this developer's project and also felt any questions the Council has had regarding quality with materials used or work- manship were safeguarded in the agreement. 4. Actions by the Council a. Resolution No. 87-44; Being a Resolution Relating to the Modification by the HRA of the Downtown Central Business District Revitalization Plan Motion by Petkoff, second by Paulson to waive the reading of the resolution there being ample copies available to the public. Roll call: All ayes Councilmember Petkoff introduced the following resolution, the reading of which was dispensed with by unanimous consent, and moved its adoption: CITY OF COLUMBIA HEIGHTS COUNTY OF ANOKA STATE OF MINNESOTA RESOLUTION NO. 87-44 A RESOLUTION RELATING TO THE MODIFICATION BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF COLUMBIA HEIGHTS OF THE DOWNTOWN CBD REVITALIZATION PLAN RELATING TO THE REDEVELOPMENT PROJECT AND THE ESTABLISHMENT OF THE PROPOSED SULLIVAN LAKE TAX INCREMENT FINANCING DISTRICT LOCATED WITHIN THE REDEVELOPMENT PROJECT AND THE ADOPTION AND APPROVAL BY THE CITY OF COLUMBIA HEIGHTS OF THE PROPOSED TAX INCRE- MENT FINANCING DISTRICT. BE IT RESOLVED by the City Council (the "Council") of the City of Columbia Heights, Minnesota (the"City"), as follows: Section 1. Recitals. 1.O1. It has been proposed and adopted by the Housing and Redevelopment Authority in and for the City (the ~'Authority") that the Authority modify by enlargement of the geographic project area the Redevelopment Project pursuant to and in accordance with Minnesota Statutes, Sections 462.411 to 462.716, inclusive, as amended. It has been further proposed and adopted by the Authority that the Authority establish the Sullivan Lake Tax Increment Financing District within the Redevelopment Proe~ect pursuant to Minnesota Statutes, Sections 273.71 to 273.78, inclusive, as amended. Special Council Meeting 'June 8, 1987 page 3 1.02. The Authority has caused to be prepared, and this Council has investigated the facts with respect thereto, a proposed modification of the Downtown CBD Revitalization Plan (the "Modified Redevelopment Plan") for the Redevelopment Project, defining more precisely the property to be included in the Redevelopment Project and the proposed Tax Increment Financing Plan for the Sullivan Lake Tax Increment Financing District (collectively referred to as the "Plans"). t.03. The Authority and the City have performed all actions required by law to be performed prior to the modification of the Redevelopment Project, the establishment of the Sullivan Lake Tax Increment Financing District and the~option of the Plans relating thereto. 1.04. The Council hereby determines that it is necessary and in the best interest of the City at this time to modify, by enlargement of the geographic project area, the Redevelopment Project, to establish the Sullivan Lake Tax Increment Financing District and to approve the Plans relating thereto. Section 2. Findings for the Modification of the Redevelopment Project and the Estab- lishment of the Proposed Sullivan Lake Tax Increment Financing District~therein. 2.01 The Council hereby finds, determines and declares that the modification, by enlargement of the geographic project area, of the Redevelopment Project is intended and, in the judgement of this Council, its effect will be, to further provide an impetus for commercial, industrial and housing development, increase employment and otherwise promote certain public purposes and accomplish certain objectives as specified in the Modified Redevelopment Plan. 2.02. The Council hereby finds, determines and declares that the establishment of the proposed Sullivan Lake Tax Increment Financing District located within the Re- development Project is intended, and in the judgement of this Council, its effect will be, to further provide an impetus for housing, commercial and industrial development, increase employment and otherwise promote certain public purposes and accomplish certain objectives as specified in the Tax Increment Financing Plan for the Sullivan Lake Tax Increment Financing District. 2.03. The Council finds, determines and declares that the proposed development, housing, and redevelopment, in the opinion of the Council, would not occur solely through private investment within the reasonably foreseeable future and, therefore, the use of tax increment financing is deemed necessary. 2.04. The Council finds, determines and declares that the proposed Tax Increment Financing Plan for said Sullivan Lake Tax Increment Financing District conforms to the comprehensive plan of the City. 2.05 The Council finds, determines and declares that the proposed Tax Increment Financing Plan will afford maximum opportunity, be consistent with the sound needs of the City as a whole, for the development or redevelopment of the Redevelopment Project by private enterprise. 2.06. The Council hereby finds, determines and declares that the Sullivan Lake Tax Increment Financing District is an economic development type of tax increment finan- cing district which consists of any project, or portions of a project, not meeting the requirements found in the definition of redevelopment district, mined under- ground space development district or housing district, but which the authority finds to be in the public interest because: 'Speclal Council Meetino June 8, 1987 page 4 (a) It will discourage commerce, industry or manufacturing from moving their operations to another state; or (b) Jt will result in increased employment in the municipality; or (c) It will result in preservation and enhancement of the tax base of the municipality. 2.07. The Council determines and declares that Redevelopment Project is hereby modified and that the Sullivan Lake Tax Increment Financing District is hereby established. 2.08. The Council further finds, declares and determines that the City made the above findings stated in Section 2 and has set forth the reasons and supporting facts for each determination in writing, attached hereto as Exhibit A. Section 3. Adoption of the Respective Plans. 3.01 The respective plans presented to the Council on this date, are hereby approved and adopted and shall be placed on file in the office of the City Clerk-Treasurer. Section 4. Implementation of the Modified Redevelopment Plan and Tax Increment Financin~ Plan. 4.01. The officers of the City, the City's financial advisor, underwriter and the City's legal counsel and bond counsel are authorized and directed to proceed with the implementation of the respective Plans and for this purpose to negotiate, draft, prepare and present to this Council for its consideration all further plans, reso- lutions, documents and contracts necessary for this purpose. The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Paulson, and upon vote being taken thereon, the following voted in favor thereof: Paulson, Petkoff, Carlson, Paterson, Nawrocki and the following voted against the same: None Wherebpon said resolution was declared duly passed and adopted, and was signed by the Mayor and attested to by the City Clerk-Treasurer. Dated: Attest: June 15, 1987. Mayor City Clerk-Treasurer (SEAL) b. City Council Consideration of a Development Agreement by and Between the City of Columbia Heights and the Housing and Redevelopment Authority The City Attorney advised the Council that some of the items contained in the Development Agreement may have to be amended. Councilmember Paulson reques(ed that the Council be advised by memo of any changes or amendments made to the Agreement. Special Council Meeting June 15, 1987 page 5 Motion by Petkoff, second by Paulson to authorize the Mayor and City Manager to execute a development agreement between the City of Columbia Heights and the Housing a~d Redevelopment Authority regarding the Sullivan Lake Development ~ Proposal with the understanding that the Mayor and City Manager would not sign the agreement until the City Attorney had approved this document on behalf of the City Council. Roll call: All ayes c. Resolution No. 87-45; Authorizing the HRA to Proceed With Execution of a Contract for Private Redevelopment Between the HRA and the Rottlund Company, Inc. Motion by Paulson, second by Petkoff to waive the reading of the resolution there being ample copies available to the public. Roll call: All ayes RESOLUTION NO. 87-45 AUTHORIZING THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF COLUMBIA HEIGHTS TO PROCEED WITH EXECUTION OF A CONTRACT FOR PRIVATE REDEVELOPMENT BY AND BETWEEN THE HOUSING REDEVELOPMENT AUTHORITY AND THE ROTTLUND COMPANY, INC. WHEREAS: The Housing and Redevelopment Authority in and for the City of Columbia Heights on May 21, 1987, adopted Resolution No. 87-8 approving the execution of a Redevelopment Contract between the HRA and the Rottlund Company, Inc.; and WHEREAS: The Housing and Redevelopment Authority's approval of the Redevelopment Contract was contingent upon the following occurrences: 1. The City Council concurrence with HRA approval of the Redevelopment Contract. 2. The City Council making available bond proceeds or other City funds in an amount sufficient to pay the costs of the Agency's activities. 3. The City Council approval of the Modification to the Downtown CBD Revitalization Plan relating to the Redevelopment Project, and the establishment of the Sullivan Lake Tax Increment Financing District and the adoption of the proposed Tax Increment Financing Plan. NOW, THEREFORE, BE IT REOSLVED by the City Council of the City of Columbia Heights that the Housing and Redevelopment Authority in and for the City of Columbia Heights is hereby authorized to execute a Contract for Private Redevelopment by and between the HRA and the Rottlund Company, Inc. BE IT FURTHER RESOLVED that the City Council's authorization is contingent upon the HRA~s preparation and submission of a final draft of the Contract for Private Redevelopment prior to execution for approval by the City Council in a form satisfactory to the City Attorney. BE IT FURTHER RESOLVED that this Resolution shall be effective upon execution of the Development Agreement between the HRA of Columbia Heights and the City. Offered by: Seconded by: Roll call: Paulson Petkoff Paulson, Petkoff, Peterson - aye Carl son - abstain Mayor Bruce G. Nawrocki Jo-Anne Student, Council ~ecretary Nawrocki - nay 'Special Council Meeting June 15, 1987 page 6 d. Second .Reading of Ordinance No. ll51, Authorizing Issuance of $1,100,O00 General Obligatio~ Taxable Tax Increment Bonds of 1987. Motion by Paulson, second by Peterson to waive the reading of the ordinance there being ample copies available to the public. Roll call: All ayes ORDINANCE NO. ll51 AUTHORIZING ISSUANCE OF $1,100,000 GENERAL OBLIGATION TAXABLE TAX INCREMENT BONDS OF 1987, SERIES A The City of Columbia Heights does ordain: 1. Bond Purpose and Authorization Sale. a. Pursuant to the provisions of Minnesota Statutes, Chapter 475, the City of Columbia Heights (the "City") is authorized to issue general obligation tax increment bonds for the purpose of financing public redevelopment costs of the redevelopment project established by The Housing and Redevelopment Authority in and for the City of Columbia Heights, Minnesota, designated as the Downtown C.B.D. Revitalization Project (the "Projectl'). b. It is hereby found, determined and declared that the financing of certain public redevelopment costs of the Project is necessary and desirable and in the best in- terest of the public health and welfare, and that the City should issue, and the City hereby authorizes and directs the issuance and sale of, its General Obligation Taxable Tax Increment. Bonds of 1987, Series A in the principal amount of $1,1OO,0OO (the "Bonds"). 2. Sale. This City Council (the "Council") shall meet at the time and place specified in the forms of Official Notice of Bond Sale for the Bids attached hereto as Exhibit B for the purpose of opening and considering sealed bids for, and awarding the sale of the Bonds. 3. Notice of Bond Sale. The Council hereby authrbrizes and directs the City Manager or his designee to cause to be published the notice of advertisement for sealed bids for the Bonds in the official newspaper of the City, and in Commercial West, at Minneapolis, Minnesota, in substantially [he form attached hereto as Exhibit B. Each and all of the terms and conditions of the Bonds and the sale thereof. 4. Official Terms of Offering. The Official Terms of Offering 6f the Bonds in sub- stantially the form attached hereto as Exhibit A shall constitute the terms and conditions for the sale of the Bonds, and the Council hereby authorizes the incor- poration of such terms and conditions in the material to be distributed to pro- spective bidders for the Bonds. 5. Information and bidding forms may be obtained from the undersigned or from Miller & Schroeder Financial, Inc., 7900 Xerxes Avenue South, Minneapolis, Minnesota 55440; telephone: 612-831-1500, financial cosultants to the City. 6. This ordinance shall be in full force and effect from and after 30 days after its passage. First Reading: Second Reading: May 26, 1987 June 15, 1987 Special Council Meeting June 15, 1987 page 7 Date of passage: Offered by: Seconded by: Roll call: dune 15, 1987 Paulson Peterson All ayes do-Anne Student, Council Secretary Mayor Bruce G. Nawrocki e. Planned Unit Development Preliminary Plan Motion by Peterson, second by Petkoff to approve the planned unit development preliminary plan as submitted by the Rottlund Company, Inc. subject to the following conditions: 1. The development meets the requirements of the Public Works Department those requirements referred to in the memo dated June 9, 1987 prepared by Ms. Kathy Young, Assistant City Engineer. 2. The development meets the requirements of the Fire Department as stipulated in the memo dated June 11, 1987 prepared by Chief Charles Kewatt. 3. The development provides for additional guest parking which meets the minimum standards of our PUD ordinance. 4. The homeowners association by-laws and declarations are acceptable to the City Attorney. 5. Subject to the approval of the Traffic Commission. Roll call: Paulson, Petkoff, Peterson - aye Carlson - abstain Nawrocki - nay f. Petition Requesting an Environment Assessment Worksheet Regarding the Sullivan Lake Development Project Motion by Petkoff, second by Peterson that pursuant to 4410.1100, sub-part 6, the City Council, as a responsible governmental unit, finds that the preparation of an Environmental Assessment Worksheet is neither mandatory nor exempted and that evidence presented fails to demonstrate the project will have the potential for significant environmental effects; and, furthermore, that the Council establishes the following finding of facts: This finding is based upon specific findings of fact that the project complies with all Local, State and Federal environmental laws or authorities; the project is in conformance with the City's Comprehensive Plan, and that all environmental impacts are negligible, including: no additional noise beyond current levels; no fish or wildlife impacts; appropriate soils suitable to support the project; no known rare or endagered plant species; nimimal forest and woodland clearance; no significant changes or alterations in air quality; no discharge of waste water into any water body or ground waters into any water body or ground water sources; no burden upon energy requirements; adequate roadway capacity; and adequate capacity in existing public services. Roll call: Paulson, Petkoff, Carlson, Peterson - aye Nawrocki - nay Adjournment ~0 Motion by Peterson, second by Carlson to adjour p.m. Roll call: All ayes Ma~ruce G. Nawrocki Ahhe Student, Cou~l Secret~ry