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