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HomeMy WebLinkAboutJuly 18, 1994OFFICIAL PROCEEDINGS COLUMBIA HEIGHTS CITY COUNCIL SPECIAL COUNCIL MEETING JULY 18, 1994 The Special Council Meeting was called to order by Mayor Sturdevant at 7:00 p.m. 1. ROLL CALL Jolly, Nawrocki, Ruettimann, Peterson, Sturdevant - present 2. pLEDGE OF ALLEGIANCE ® SHEFFIELD NEIGHBORHOOD PROJECT - PUBLIC HEARING a. Presentation by Staff City Manager Hentges reviewed the format for the Special Meeting and the proposed timetable and financing sources for the project. He introduced the planning consultant who gave an overview of the target block. A booklet containing the consultant's recommendations and a draft Request for Proposal had been distributed to members of the City Council. The conclusion of the consulting team was that the redevelopment of the area should be done with detached owner/occupied housing. Lot size was recommended to be sixty to sixty-three feet wide. It was felt this lot size would be ample enough to accommodate a home in the ninety-thousand dollar market. Elimination of alleys and sidewalks, except those for approaching the house from the street, was recommended. Various sketches for model houses were included in the booklet. Townhouses were also a consideration for the project area. There was consensus among the Council that the lot size recommended by the consultant was too small. Other items of concern were a two-car garage requirement and exterior maintenance materials. Councilmember Nawrocki felt townhouses should remain as a viable consideration for a portion of this redevelopment. He was of the opinion that townhouses better utilize common space especially with regard to play areas for children. Councilmember Ruettimann viewed townhouses as being attractive to smaller families and a potential for becoming rental property. He felt this would not be the ideal proposal for this area. SPECIAL COUNCIL MEETING JULY 18, 1994 PAGE 2 The Executive Director of the HRA reviewed future redevelopment projects and possibilities for this area. He specifically addressed the conversion of duplexes into owner occupied, single family homes. The Acting Police Chief referred to his department's summary report of the area and the recent activities of police officers in the neighborhood. A few residents of the Sheffield Area voiced their concerns and comments regarding the proposed redevelopment plans. Councilmember Nawrockiquestioned some of the proposed methods being recommended for financing the project. He had real concerns regarding the use of TIF funds. He also observed that almost all of the City's available resources are being concentrated in one area. He questioned what would be done to meet similar kinds of needs in other areas of the City. The City Manager responded to how funds will be made available for replacement funds. He also addressed the potential loss of LGA and HACA funding and how it would be offset with the charging of administrative fees. Councilmember Ruettimann agreed that there are other problem areas within the City and funding will be needed to solve these situations. But, he felt residents had wanted the Sheffield Area a priority project. Eventually, he anticipates each quadrant of the City will be looked at for improvements. He suggested that the issue of funding sources be revisited next year. Councilmember Jolly expressed his concern regarding funding for future redevelopment projects. He inquired if there is to be a revolving fund set up for this purpose. The City Manager responded he anticipates there being grant opportunities in the future. b. Resolutions on Sheffield Redevelopment Finan¢iDg 1. Resolution No. 94-40; Approving Redevelopment Project Budget for 4600 Block of Pierce/Fillmore Streets Motion by Ruettimann, second by Peterson to waive the reading of the resolution there being ample copies available for the public. Roll call: All ayes SPECIAL COUNCIL MEETING JULY 18, 1994 PAGE 3 RESOLUTION NO. 94-40 RESOLUTION OF THE CITY COUNCIL FOR THE CITY OF COLUMBIA HEIGHTS, MINNESOTA, APPROVING THE DEVELOPMENT PROJECT BUDGET FOR 4600 BLOCK BETWEEN PIERCE STREET AND FILLMORE STREET WHEREAS, the Authority did authorize the creation of a "redevelopment project" as that term is defined at Minnesota Statutes, Section 469.001, Subd. 14 and a "housing development project" as that term is defined at Minnesota Statutes, Section 469.001, Subd. 15, which project is referred to as the Sheffield Redevelopment Housing Development Project (the "Redevelopment and Housing Development Project") and adopted a "redevelopment plan" as that term is defined at Minnesota Statutes, Section 469.001, Subd. 16 for said "Redevelopment and Housing Developmenet Project" which is referred to as the Sheffield Neighborhood Redevelopment and Housing Development Plan (the "Redevelopment and Housing Development Plan") on February 8, 1994; and WHEREAS, the City Council did approve the Housing Development and Redevelopment Plan for the Redevelopment and Housing Development Project on February 28, 1994; and WHEREAS, the Redevelopment Housing and Development Plan proposes redevelopment and housing development activities to be undertaken within the project boundaries and to specifically occur to the area defined as the 4600 block between Pierce Street and Fillmore Street (commonly described as "target block"); and WHEREAS, the City has acquired property on the target block and funded said acquistions through interfund loans of Sewer Infrastructure Fund 652 in the amount of $710,000 and Liquor Fund 609 in the amount of $469,000; and WHEREAS, it is the intention of the City Council to establish a final redevelopment and housing development project budget that specifically establishes expenditure limits and sources of repayment for the Sewer Infrastructure Fund 609 and Liquor Fund 652. SPECIAL COUNCIL MEETING JULY 18, 1994 PAGE 4 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL FOR THE CITY OF COLUMBIA HEIGHTS, MINNESOTA, THAT: The City Council approves a Redevelopment and Housing Development Project budget for the 4600 block between Pierce and Fillmore streets of $1,330,000 to accomplish property acquisition, demolition/removal, tenant relocation, public improvements, professional services and holding costs related to the objectives set forth within the Housing and Redevelopment plan, and further attached Exhibit A (Sheffield 4600 Block Redevelopment Expenditures Budget) is hereby adopted, amending to the 1994 Budget Fund 410. The city Council hereby establishes the interfund loan of $710,000 from Sewer Infrastructure Fund 652 shall be repaid with interest at 4% or $199,000 interest accumulation from proceeds of the Housing and Redevelopment Authority Annual Levy of approximately $71,000 through the year 2003; and with potential of tax increment financing revenues of the Sheffield Redevlopment and Housing Development Tax Increment Financing District estimated to be approximately $25,000 annually, over a period not exceeding the year 2009. The City Council hereby establishes a loan of up to $469,000 from Liquor Fund 609 to be repaid in the principal amount only from the use of surplus TIF revenues of the CDB Tax Increment Financing District, estimated at approximately $300,000; and revenues from the sale of cleared land or individual lots on the 4600 block between Pierce and Fillmore Streets estimated up to $320,000 in sales proceeds. e The city Council approves $131,000 of expenditures for the project derived from revenues including payments of the house removal contract in the amount of $10,000, a 1994 Housing and Redevelopment Authority Annual Levy in the amount of $71,000, and proceeds from the sale of surplus property of the City and HRA in the amount of $70,000. The City Council approves these sources of funds and expenditures amounts as the current budget for the Sheffield Redevelopment and Housing Development Project located on the 4600 block between Pierce and Fillmore Streets and any increase in the redevelopment activities will be submitted for approval by the City Council. SPECIAL COUNCIL MEETING JULY 18, 1994 PAGE 5 Approved this 18th day of July, 1994. Offered by: Ruettimann Seconded by: Peterson Voting Aye: Jolly, Nawrocki, Sturdevant Voting Nay: None Absent: None Ruettimann, ATTEST: Peterson, Mayor Joseph Sturdevant Jo-Anne Student, Council Secretary 2. Resolution No. 94-41; Approving Modification of Downtown CDB Redevelopment Project and the Sheffield Neighborhood Redevelopment and Housing Development Project Boundaries Motion by Ruettimann, second by Peterson to waive the reading of the resolution there being ample copies available for the public. Roll call: All ayes RESOLUTION NO. 94-41 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COLUMBIA HEIGHTS, MINNESOTA, APPROVING THE MODIFICATION OF DOWNTOWN C.D.B. REDEVELOPMENT PROJECT AND THE SHEFFIELD NEIGHBORHOOD REDEVELOPMENT AND HOUSING DEVELOPMENT PROJECT BOUNDARIES WHEREAS, the Housing and Redevelopment Authority in and for the City of Columbia Heights, Minnesota (the "Authority") did authorize the creation of a "redevelopment project" as that term is defined at Minnesota Statutes, Section 469.001, Subd. 14, on June 14, 1977, which "redevelopment plan" as that term is defined at Minnesota Statutes, Section 469.001, Subd. 16, for said redevelopment project is referrd to as the Downtown C.D.B. Redevelopment Project (the "Redevelopment Project"); and WHEREAS, the City Council for the City of Columbia Heights (the "City") did approve the Redevelopment Plan for said Redevelopment Project on August 3, 1977; and SPECIAL COUNCIL MEETING JULY 18, 1994 PAGE 6 WHEREAS, the Authority did approve amendments to the Redevelopment Plan for the Redevelopment Project with the most recent amendment approved by the City on September 9, 1989; and WHEREAS, the Authority did authorize the creation of a "redevelopment project" as that term is defined at Minnesota Statutes, Section 469.001, Subd. 14 and a "housing development project" as that term is defined at Minnesota Statutes, Section 469.001, Subd. 15, which project is referred to as the Sheffield Redevelopment and Housing Development Project (the "Redevelopment and Housing Development Project") and adopted a "redevelopment plan" as that term is defined at Minnesota Statutes, Section 469.001, Subd. 16 for said "Redevelopment and Housing Development Plan (the "Redevelopment and Housing Development Plan") on February 8, 1994; and WHEREAS, the City did approve the Redevelopment and Development Housing Plan for the Redevelopment and Housing Development Project on February 28, 1994; and WHEREAS, the Authority has proposed a program for financing the redevelopment activities in the Redevelopment and Housing Development Project and the proposed program involves the use of any surplus funds which may become available from the Redevelopment Project; and WHEREAS, in order for the Authority to use any surplus funds from the Redevelopment Project for activities to be undertaken by the Authority and the City in the Redevelopment and Housing Development Project, the Authority and the City must approve the modification of the boundaries of the Redevelopment Project and the Redevelopment and Housing Development Project so as to merge the Redevelopment Project and the Redevelopment and Housing Development Project. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Columbia Heights, Minnesota, that: The City Council approves the modification of the Downtown C.B.D. Redevelopment Project and the Sheffield Redevelopment and Housing and Development Plan for the Sheffield Redevelopment and Housing Development Project in order to merge the boundaries of the respective Redevelopment Project and Redevelopment and Housing Development Project. SPECIAL COUNCIL MEETING JULY 18, 1994 PAGE ? Passed this 18th day of July, 1994. Motion by: Seconded by: Ruettimann Peterson Voting Aye: Jolly, Nawrocki, Sturdevant Ruettimann, Peterson, Voting Nay: None Absent: None Mayor Joseph Sturdevant ATTEST: Jo-Anne Student, Council Secretary 3. Resolution No. 94-42; Directing City Manager to Prepare Tax Increment Financing Plan and Establish TIF District, Public Notice and Hold Public Hearing Motion by Ruettimann, second by Peterson to waive the reading of the resolution there being ample copies available for the public. Roll call: All ayes RESOLUTION NO. 94-42 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COLUMBIA HEIGHTS, MINNESOTA, TO DIRECT THE CITY MANAGER TO PREPARE A TAX INCREMENT FINANCING PLAN FOR THE SHEFFIELD REDEVELOPMENT AND HOUSING PROJECT (THE "PROJECT") TO CREATE A TAX INCREMENT FINANCING DISTRICT WITHIN SAID PROJECT AND TO DIRECT THE CITY MANAGER AND THE HOUSING ANDREDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF COLUMBIA HEIGHTS TO PUBLISH NOTICE AND HOLD A PUBLIC HEARING TO APPROVE THE TAX INCREMENT FINANCING PLAN AND ESTABLISH THE TAX INCREMENT FINANCING DISTRICT WHEREAS, the City Council ("Council") of the City of Columbia Heights ("City") did adopt a Redevelopment and Housing and Development Plan entitled "Sheffield Neighborhood Redevelopment and Housing Plan" and created a RedeveloDment and Housing Development Project on February 26, 1994 pursuant to Minnesota Statutes, Section 469.028; and WHEREAS, the Redevelopment and Housing Development Plan did identify various sources of funds to finance the costs contemplated in the Redevelopment and Housing Development Plan; and SPECIAL COUNCIL MEETING JULY 18, 1994 PAGE 8 WHEREAS, the Council has identified the use of tax increments derived from the "tax increment financing district" as that term is defined in Minnesota Statutes, Section 469.174, Subd. 9 as a potential source of funds to further finance the public costs associated with the Sheffield Neighborhood Redevelopment and Housing Development Project; and WHEREAS, the Council and the Authority propose to establish a tax increment financing district within the boundaries of, or coterminous with the boundaries of, the Sheffield Neighborhood Redevelopment and Housing Development Project; and WHEREAS, prerequisite to the establishment of a Tax Increment Financing District is the preparation of a "Tax Increment Financing Plan" as provided at Minnesota Statutes, Section 469.175, Subd. 1; and WHEREAS, also prerequisite to the establishment of a "Tax Increment Financing District" is the Council's holding a public hearing after published notice at least 10 or no more than 30 days prior to said public hearing as provided at Minnesota Statutes, Section 469.174, Subds. 2 and 3. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Columbia Heights, Minnesota as follows; The City Council hereby directs the City Manager to prepare a "Tax Increment Financing Plan" for the Sheffield Neighborhood Redevelopment and Housing Development Project. The City Council hereby directs the City Manager to create and establish the boundaries of the proposed "Tax Increment Financing District" for the Sheffield Neighborhood Redevelopment and Housing Development Project. SPECIAL COUNCIL MEETING JULY 18, 1994 PAGE 9 The City Council hereby directs the City Manager to publish notice of the date upon which the City Council will hold a public hearing at which time the City Council will consider approval of said "Tax Increment Financing Plan" for the Sheffield Neighborhood Redevelopment and Housing Development Project and directs the Housing and Redevelopment Authority in and for the City of Columbia Heights to consider said "Tax Increment Financing Plan" for the Sheffield Neighborhood Redevelopment and Housing Development Project at a separate public hearing after the Housing and Redevelopment Authority in and for the City of Columbia Heights has provided an opportunity for members of the Anoka County Board of Commissioners and the Columbia Heights School Board to review and comment upon the contents of the "Tax Increment Financing Plan." Approved this 18th day of July, 1994 Motion by: Seconded by: Ruettimann Peterson Voting Aye: Jolly, Nawrocki, Sturdevant Ruettimann, Peterson, Voting Nay: None Absent: None ATTEST: Mayor Joseph Sturdevant Jo-Anne Student, Council Secretary c. Purchase of Property on 4600 Block of Fillmore and Pierce streets 1. Resolution No. 94-43 Authorizing the Purchase of Property Motion by Nawrocki, second by Ruettimann to waive the reading of the resolution there being ample copies available for the public. Roll call: All ayes SPECIAL COUNCIL MEETING JULY 18, 1994 PAGE 10 RESOLUTION NO, 94-45 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COLUMBIA HEIGHTS, MINNESOTA, AUTHORIZING THE PURCHSE OF 4601 FILLMORE STREET AND 4619 FILLMORE STREET LOCATED IN THE SHEFFIELD NEIGHBORHOOD WHEREAS, the City Council of the City of Columbia Heights (the "City") and the Housing and Redevelopment Authority in and for the City of Columbia Heights (the "Authority") have been working jointly to prepare a Redevelopment Plan for the Sheffield Neighborhood entitled "The Sheffield Neighborhood Revitalization Program (the "Redevelopment Plan"); and WHEREAS, the City and the Authority have found within the Sheffield Neighborhood there exists conditions of deterioration, substandard residential structures, residential units in need of repairs which are in violation of the City Housing Code and City Ordinances or there exists a need for intervention by the City to prevent further deterioration of the area; and WHEREAS, the City has an option to acquire two such non-owner occupied duplexes pursuant to that certain Purchase Agreement by and between the City of Columbia Heights and Gary and Carolyn Knutson (the "Sellers") and certain purchase agreements by and between the City of Columbia Heights and Donald L. and Margie E. Drabant (the "Sellers") and the purchase agreements were signed by the seller(s) and are provided herewith; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Columbia Heights that: The City Council hereby aprpoves the terms of the Purchase Agreement between the City and Donald L. and Margie E. Drabant and authorizes the Mayor and City Manager to sign it on behalf of the City at a purchase price of $69,900. The City Council hereby approves the terms of the Purchase Agreement between the City and Gary and Carolyn Knutson and authorizes the Mayor and City Manager to sign it on behalf of the City at a purchase price of $69,000. 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 Agreements. SPECIAL COUNCIL MEETING JULY 18, 1994 PAGE 11 e e The City Council approves an interim source of funding from Capital Improvement Fund 410 in the amount of $138,900 plus $4,000 so the City may acquire the real property as provided in the Purchase Agreements. The City Manager is authorized to work jointly with the Authority to identify a permanent source of project funding. The interim sources of financing of Capital Improvement Fund 410 shall be repaid from sources of permanent financing as set forth in Resolution 94-40 (approving the Development Project budget for 4600 block between Pierce Street and Fillmore Street). Passed this 18th day of July, 1994. Offered by: Seconded by: Roll call: Nawrocki Ruettimann Ail ayes Mayor Joseph Sturdevant Jo-Anne Student, Council Secretary 2. Tenant Relocation Services Contract Motion by Peterson, second by Jolly to authorize the Mayor and City Manager to enter into a contract with Wilson Development Services for tenant relocation services. Roll call: All ayes de Sheffield Rehabilitation Proaram 1. R~solution No. 94-44: Approving the Implementation of Sheffield CDBG/HOME Duplex Conversion and Owner Occupied Eehabilitation Pro~ram Motion byNawrocki, second by Ruettimann to waive the reading of the resolution there being ample copies available for the public. Roll call: All ayes SPECIAL COUNCIL MEETING JULY 18, 1994 PAGE 12 RESOLUTION NO. 94-44 RESOLUTION OF THE CITY COUNCIL FOR THE CITY OF COLUMBIA HEIGHTS, MINNESOTA APPROVING IMPLEMENTATION OF SHEFFIELD CDBG/HOMEDUPLEX CONVERSION AND OWNER OCCUPIED REHABILITATION PROGRAM WHEREAS, the City of Columbia Heights (hereinafter referred to as the "City") has received a grant of $120,000 (matched by $30,000 of local funds) through the federally funded HOME Program for use in renovating duplexes in the Sheffield Neighborhood into large single family houses; and WHEREAS, the City has allocated $249,010 of its FY1994 federally funded Community Development Block Grant (CDBG) allocation from the Anoka County CDBG Program for Acquisition and Clearance of Deteriorated Properties ($139,000) and Single Family/Duplex Housing Rehabilitation ($110,010)with use of the Acquisition funds restricted to the Sheffield Neighborhood until June 30, 1995 and with the owners of property in the Sheffield Neighborhood to receive preference over others for loan/grant funds through the CDBG Rehabilitation Program; and WHEREAS, a limited portion (up to $30,000) of the FY1994 CDBG Single Family/Duplex Housing Rehabilitation is needed to complete housing rehabilitation projects that the HRA has in process outside of the Sheffield Neighborhood and a portion of the FY1995 CDBG Program funds could be used in the Sheffield Neighborhood if needed; and WHEREAS, it is desirable to have housing rehabilitation programs for low income and non-low income property owners who occupy their property (duplex or single family) in the entire Sheffield Neighborhood with preference given to those with home immediately adjacent to the "Target" block area (4600 blocks of Pierce and Fillmore Streets); and WHEREAS, the City currently owns duplex units at 4519-21 and 4535-37 Taylor Street N.E. and 4531-33 Fillmore Street N.E. which are to be the first three (of up to eleven) duplexes to be converted to single family units; and WHEREAS, the architectural firm of Dovolis, Johnson & Ruggieri, Inc. (hereinafter referred to as the "Architect") has been involved with the City in preparing preliminary plans for the renovation of duplexes and has agreed, after substantial negotiation, to provide plans and specification for the renovation of the three initial duplexes for $2,995 for each of the duplexes; and SPECIAL COUNCIL MEETING JULY 18, 1994 PAGE 13 WHEREAS, the plans and specifications prepared by the architect will be usable with minor revisions on the other duplex conversions; and WHEREAS, the initial three (and any future) duplexes renovated into single family houses will be sold and the plan is to sell the houses (for $84,900 or appraisal value after renovation, whichever is less) via a lottery system with preference given to residents of Columbia Heights; and WHEREAS, the proceeds from the sales of the renovated units is to be deposited into a duplex renovation revolving fund to acquire and renovate additional duplexes into single family homes in the Sheffield Neighborhood; THEREFORE, BE IT RESOLVED by the City Council of the City of Columbia Heights that it approves and City/HRA staff are authorized to implement programs as approved here and in the 1994 HOME and CDBG Programs (as previously approved by the City Council): (1) Use of up to $30,000 FY1994 CDBG Single Family/Duplex Housing Rehabilitation funds for completing rehabilitation projects in progress from families outside of the Sheffield Neighborhood with the understanding that the amount used outside of the Sheffield Neighborhood will be replaced by FY1995 CDBG funds after July 1, 1995 (if needed in the Sheffield Neighborhood). (2) Establishment of single family and duplex owner occupied rehabilitation program with preference to those immediately adjacent to the Target Block of the 4600 block of Pierce and Fillmore. In addition to assisting low income homeowners under the CDBG funded rehabilitation program, non-low income homeowners (single family and duplex) will be assisted with up to $50,000 of funds from the sale of City owned residential properties located outside of the Sheffield Neighborhood. Staff, with concurrence of the City Council, is authorized to grant loans with 2% interest and terms of up to 10 years to owner occupants of duplexes and single family homes in the Sheffield Neighborhood to enable them to complete interior and or exterior improvements to their properties. Preference is to be given to properties immediately adjacent to the "Target Block" area. Loans of up to $5,000 are authorized with those over $2,000 to be secured by mortgage against the property and those under $2,000 secured by a promissory note. SPECIAL COUNCIL MEETING JULY 18, 1994 PAGE 14 (3) In regard to the duplex conversion to single family program in the Sheffield Neighborhood the following, in addition to those guidelines approved in the FY1994 HOME Program Application, are approved: (A) Families for ownership of the renovated homes will be selected by LOTTERY with preference given to Columbia Heights residents. (8) The price for the renovated houses will be established as the lower of the appraised value after completion of the renovations or $84,900. (c) The proceeds from the sale of converted properties is to be deposited into a duplex renovation revolving fund for acquisition and renovation of additional duplex units in the Sheffield Neighborhood. (D) The City Manager is hereby authorized to contract with Dovolis, Johnson & Ruggieri, Inc. to have them prepare the plans and specifications for the initial three duplexes to single family houses with two car garages for a fee of $2,995 each for a total cost of $8,985. Approved this 18th day of July, 1994. Motion by: Seconded by: Ruettimann Peterson Voting Aye: Jolly, Nawrocki, Sturdevant Ruettimann, Peterson, Voting Nay: None Absent: None Mayor Joseph Sturdevant ATTEST: Jo-Anne Student, Council Secretary SPECIAL COUNCIL MEETING JULY 18, 1994 PAGE 15 e. Sheffield Land Use and Site Design Study The City Manager suggested these issues should be discussed at a Council work session before any action is taken. They did not need to be acted upon at this meeting. Motion by Ruettimann, second by Nawrocki to table for further discussion to a Council work session. Roll call: All ayes Motion by Nawrocki, second by Peterson to adjourn the Special Council Meeting at 10:10 p.m. Roll call: All ayes -Anne Student, ~cil /ayor J°s~ph S-turdevant Secretary