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HomeMy WebLinkAboutJun 7, 1976OFFICIAL PROCEEDINGS SPECIAL MEETING OF THE CITY COUNCIL CITY OF COLUMBIA HEIGHTS JUNE 7, 1976 The Meeting was called to order at 8:38 by Council President Heintz. Roll Call: Logacz, Heintz, Hentges---present Norberg, Nawrocki--- absent Council President Heintz noted that Mayor Nawrocki would join the meeting shortly. Motion by Hentges, Seconded by Logacz to name Karen DeBruin Secretary for the meeting. Roll Call: All Ayes STATEMENT OF PURPOSE OF MEETING Council President Heintz noted that the purpose of this meeting is to handle the items of business on the agenda, including the presentation of the Rehabilitation Program. PRESENTATION OF REHABILITATION PROGRAM Mr. Dean Otterson, HRA Director, stated that he would like the Council to consider elements of a program that the City has been interested in for many years: Rehabilitation of the present housing stock. He noted that this program is designed primarily to be a flexible approach to preserving the existing housing stock of Columbia Heights, which is a valuable resource. Mr. Otterson noted that a high percent of dwellings in Columbia Heights are single family units. He also explained that this program is modelled after similar programs which have been successful. At this time, Mr. Otterson introduced Mr. Bob Bentzen of the Housing Authority to explain more about the proposed program. Mr. Bentzen stated that the main target area would be from Van Buren Street from 39th Avenue to 40th Avenue. He noted that this area is a primary area because of its visual appearance and the possibilities for home rehabilitation there. Mr. Bentzen then explained the goals of the program as being: 1. To make loan funds available to low and moderate income homeowners for the purpose of improving the quality of their existing residential properties. 2. To maximize the participation of local public and private entities in program administration and delivery of home improvement funds. --241- June 7, 1976 To encourage improvement of deteriorated and substandard housing in areas to make it more habitable and less hazardous to health and safety. To encourage the stabil ization and upgrading of existing neighborhoods having moderately priced housing. He also explained the requirements for eligibility: ]. Applicants must be individual fee owners or contract-for-deed purchases of the property which wi]] be improved. Applicants for Home Improvement Program loans must be persons or families (including non-related individual adults) who are residents of Hinnesota and have an annual "adjusted gross income" of not over $19,000. 3. Applicant must be a reasonable credit risk, with reasonable ability to pay the loan obligation. Properties must be at least fifteen (15) years of age, or in need of repair to correct damage resulting from a natural disaster or to correct items that are hazardous to health and safety. 5. Properties must not be in violation of applicable zoning ordinances or other land use guides. o Eligible properties shall be used primarily for residential purposes and shall contain no more than six separate dwelling units. Mobile homes and tral]ers are not eligible. HRA funds shall be used to finance only new improvements to existing structures, and shall not be used for refinancing any existing mortgage or debt. Improvements shall be completed within nine (9) months from the date the Note for the loan is signed and funds are disbursed. Council President Heintz noted that under No. 6 of the general eligibility requirements, the number of separate dwellings should be changed, in his opinion, from six to two. He went on to say that he didn't see why apartment owners should get rehabi]itation help when their apartments are commercial and income properties and improvements can be written off on their income tax forms. Councilman Logacz noted that Mr. Otterson was tr'!ing to present the extreme cases by including the six dwelling unit in the eligibility listing. He also noted that he thought the single family dwellings should be looked at first in terms of rehabilitation, June 7, 1976 -2~2- Councilman Hentges stated that he could not see the reason why the area from 39th Avenue to 40th Avenue on Van Buren Street was chosen as the "target area~II Mr. Otterson replied that there were several reasons for this. He noted that it would be best to begin in a small area when beginning a program such as this one. He also noted that this area of the City would not be undergoing any public improvements. Mr. Otterson suggested call ing the area a "demonstration areaI' if the title "target area" was not suitable. Mr. Otterson further noted that this was an area he would ~eel comfortable working in to begin this project. Council President He.i, ntz stated that he was concerned over the fact that private home owners would not be aware of this program, and people owning multiple dwellings would be taking advantage of it. Mr. Otterson noted that he thought there was a need for this type of program in multiple dwelling structures. Mr. Otterson explained that local lending institutions would be handling the monies involved in the project. He also noted that the HRA had applied for a title to loan money in case no local lender was interested. Mr. Bentzen explained the eligible improvements, priority in selection,and presented the loan summary. ELIGIBLE IMPROVEMENTS Residential properties may be improved to increase compliance with state, county or municipal health, housing, building, fire prevention and housing maintenance codes or other public standards applicable to housing. Improvements may also be made for the purpose of making housing more desirable to live in, or to increase the market value of the housing, or to make the home more habitable. These improvements may take the form of permanent general improvements; however, to insure that loans will be used for basic and necessary items and not for luxury items, the definition of permanent general im- provements is as follows: Permanent general improvements shall include additions,renovations, alterations, or repairs upon real property or in connection with existing structures which substantially protect or improve the basic livability or utility of the property. Improvements shall not include materials, fixtures, or landscapes of a type of quality which exceeds that customarily used in the locality for properties of the same general type as the property to be improved. June 7, ]976 All work or construction completed with Home Improvement Program funds must be in compliance with applicable building and housing codes and standards, however, no application for improvements to owner- oo:upied housing shall be denied solely because the improvements will not place such housing in full compliance with all such codes and standards. 4. Improvements such as insulation and storm windows, which will conserve usage of fuel and energy, are strongly encouraged. o HRA funds may be used for bringing individual sewage disposal systems (excluding septics) into comp] iance with local, state, and federal environment and sanitary standards. 6. HRA funds shall not be used for the financing or payment of assessments for ~public improvements. 7. Ail construction or work performed under contract shall be in compliance with a HRA warranty on workmanship and materials. o In all cases, loans and improvements must be eligible under HUD/FHA Title I requirements as described or referred to in HUD Handbook Title ! Property Improvement~Loan Operating Handbook; and/or FHA Regulations, FHA 2000 Property Improvement Loan Insurance, Title 24, Chapter Subchapter B, Part 20], Subpart A, Code of Federal Regulations. PRIORITY IN SELECTION OF APPLICANTS Priority will be given to applicants whose living conditions are hazardous to the health, safety, public welfare, or may be considered as emergencies. LOAN SUMMARY The maximum principal loan amounts exclusive of financing charges are: A. $5,000 for properties with one dwelling unit. B. $5,000 per dwelling unit for properties with six individual dwelling units, 2. Loans need not be secured except for principal amounts over $1,000. 3. The maximum terms of the loan shall be twelve (12) years. 4. There shall be no prepayment penalties, and loans may general ly be assumed upon the sale of the pr(;perty if a mortgage lien is in effect. The simple annual rate of interest to be charged on the loan shall be either 4, 6, 8~, depending upon the property owners adjusted gross income. June 7,1976 -244- At the time of application, conventional financing for the proposed improvements must not otherwise be available from private lenders upon equivalent terms and conditions. All loans must be "direct loans" as defined by FHA Title I regulations. Loans involving "dealers" are ineligible. The minimum monthly payment on a loan shall be $10.00. For the principal amount desired, if a 12-year maturity (term) results in a monthly payment of less than $10.00, then the term shall be decreased to yield a monthly payment of not less than $10.00. 9. Before the Note (Loan) is signed, the applicant shall also complete and sign a certificate stating: A. The type and extent of proposed improvements. B. That the improvements to be financed by the loan shall be completed within nine months. C. That each contractor shall specify work to be done by him and shall sign a warranty on workmanship and materials. D. That HRA or an authorized representative shall have the right to inspect the property any time after nine months upon giving due notice to the occupants. Failure to use loan funds for home improvements is a federal criminal offense punishable by a fine up to $5,000 and/or imprisonment up to two years. Councilman Hentges stated that this was a good program that the average working man in Columbia Heights could benefit from. Mayor Nawrocki entered the meeting at 9:!5 p.m. Motion by Hentges, seconded by Heintz to authorize the Housing and Redevelopment Authority to enter into this program. Roll Call: All Ayes. Mr. Otterson assured the Council that, as Director of the Housing Authority, emphasis would be placed on single family units. Mayor Nawrocki noted that he has been trying to implement a program of this nature for some time and that he was extremely happy to see the City a step closer. RESOLUTION #76-32 ON HOME IMPROVEMENT GRANTS AUTHORIZING THE HOUSING AND REDEVELOPMENT AUTHORITY TO SUBMIT A GRANT APPLICATION TO THE MINNESOTA HOUSING FINANCE AGENCY. WHEREAS, The City Council of the city of Columbia Heights has long recognized that the supply of existing housing units in the community represent a valuable resource that should be preserved, and -24~- June 7, 1976 WHEREAS, The City Council further recognizes the need to provide a program to assist low income homeowners in maintaining their dwelling units and other incentives to arrest decline in the community's neighborhoods, and WHEREAS, the Housing and Redevelopment Authority, organized pursuant to MSS 462.411, in partnership with the City Council, has developed a housing rehabilitation loan and grant program designed to preserve the community's housing stock, and WHEREAS, The H.R.A. has requested authorization of the City Council to submit a grant application to the Minnesota Housing Finance Agency for funds under their Home Improvement Grant Program, and WHEREAS, pursuant to Minnesota Housing Finance Agency requirements, approval of the grant application is necessary before a sponsoring agency can submit an application. NOW THEREFORE, BE IT HEREBY RESOLVED by thc City Council of the City of Columbia Heights that the Housing and Redevelopment Authority be authorized to submit an application for home improvement grants to the Minnesota Housing Finance Agency. BE ~IT FURTHER RESOLVED that if successful, the Housing and Redevelopment Authority be required to provide the City Council with quarterly reports demonstrating how these grant funds were used in the community. Passed this 7th day of June, 1976 Offered by: Logacz Seconded by: Hentges Roll! Call: All Ayes PRESENTATION OF DOWNTOWN DEVELOPMENT CONCEPT Mr. Otterson explained that the City has been through a long process of studies with Real Estate Research on the subject of downtown development and now have an interested developer, Kraus Anderson. Mr. Otterson noted that there is a need for something to be done in the Columbia Heights downtown area, but help was needed to decide exactly what: should be done. He went on to say that he came before the Council tonight to ask their endorsement of the concept of development as it stands so far. It was explained that the Council would not be committed to any course of action. Mr. Otterson noted that he only wished the Council to voice their opinions, ideas, and concerns. Mr. Otterson presented the four initial concepts of development. He also spoke on what would be included in each of these four concepts. June 7, 1976 -246- Mayor Nawrocki noted that it is difficult to give even a preliminary decision without a feel for the numbers, and Mr. Otterson noted that this was true, but numbers were difficult to give when one is working in stages as preliminary as this. There was much general discussion on such things as expected costs of the project. At this time, Mr. Otterson asked for the general consensus of the Council on one of the four plans which were presented. He again emphasized that this would in no way commit the Council, but only give Kraus Anderson some idea which direction to pursue. The Council agreed that the Plan No. 4 should be pursued further. Mayor Nawrocki stated that, even if the fine points don't look quite so encouraging; a lot of work, time, and effort has gone into the project as presented thus far. He noted that he very much appreciated this. RECESS AT 10:42 p.m. RECONVENE AT ll:03 p.m. REQUEST TO CALL FOR BIDS ON TREE PLANTING SEPARATE FROM CONSTRUCTION BID ON JEFFERSON STREET 40th to 45th AVENUE George Brown, City Engineer, was present at the meeting and explained to the Council that it was his feeling that a more acceptable tree planting program could be accomplished if the bid for trees was let separately from the construction bid. Mayor Nawrocki informed Mr. Brown that it was his perogative whether he wanted to let the bids together or separately. REQUEST FOR AUTHORIZATION TO MOVE CUL-DE-SAC It was explained that the cul-de-sac which was presently platted for 42½ Avenue would allow for more efficient lot development if it was moved approximately fifty feet east. It was discovered that the cul-de-sac as initially laid out does not give good access for the easterly lots on 42½ Avenue. Motion by Logacz, seconded by Hentges to acquire the necessary easements needed to move the cul-de-sac on 42½ Avenue. Roll Call: All Ayes PETITION FOR CANCELLATION OF A FORFEITURE CERTIFICATE FOR CANCELLATION OF A FORFEITURE AND APPLICATION FOR ABATEMENT OF TAXES ON CERTIFICATE #31245 Attorney Douglas Peterson explained that this action is to cancel the forfeiture filed against Anoka Registrar of Title Certificate #31245, which relates to the forfeiture which was filed against the Glover property at Sullivan Lake. The second action is approval of the application for the abatement of taxes of the same property. ._2L7.- June 7, 1976 Motion by Hentges, seconded by Heintz to authorize the Mayor and City Manager to sign the petition for cancellation of a forfeiture certificate for cancellation of a forfeiture and the application for .abatement of taxes on certificate #3]245. Roll Call: All Ayes CONSIDERATION OF CASE SETTLEMENT Attorneys Peterson and Kalina explained that this case sett]ement related to the po]icmen pension case which was scheduled for June 14. A letter was given to a]l the Councilmen outlining the basic proposal for this settlement. It was noted that the active and retired officers and their attorneys have agreed to this settlement. It was further noted that if the Council approved this settlement plan, there should be no more litigation involving the City and its active and retired police officers. Attorney Kalina noted that the provisions of this settlement, if approved, wou]d become enacted as part of a bi]] to the legislature supported by the !retired officers, active officers, and the City. Attorney Ka]ina read and explained each of the points of the settlement. Councilman Heintz suggested that John Schedler, City Clerk-Treasurer, be appointed to invest the funds of the Po]ice Relief Association. There was much discussion on this idea. Mayor Nawrocki suggested that the final settlement be written with words suggesting provisions for the best return on investments. Counci]man Heintz asked Attorney Kalina if he recommended approval of this settlement. Attorney Kalina replied that his recommendation is in favor of this settllement. Motion by Logacz, seconded by Hentges to concur in settlement as proposed by the City Attorney. Roi] Cai]: All Ayes Mayor- Nawrocki noted that with federal and state fund available, the police department would be hiring a Community Service Officer for the summer months. It was further noted that this individual has had three years of police science training. Motion by Heintz, seconded by Logacz to adjourn the special, meeting at 1:08 a.m. Roll Call: All Ayes ~~~1 Bruce G. Nawrocki, Mayor Secretary