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HomeMy WebLinkAboutAug 3, 1977OFFICIAL PROCEEDINGS SPECIAI~ MEETING OF THE CITY COUNCIL CITY OF COLUMBIA HEIGHTS, MINNESOTA AUGUST 3, 1977 HEARING ON DOWY~TOWN DEVELOPMENT PLAN The Meeting was called to order at 7:35 p.m. by Council President He~ntz in the Columbia Heights Field House. Roll Call: Logacz, Heintz, Hentges--present Norberg, Nawrocki--absent Motion by Hentges, Seconded by Logacz to name Karen DeBruin secretary for the meeting. Roll Call: All Ayes Councilman Norberg joined the meeting at 7:37 p.m. Dean Otterson, City Planner/HRA Director, thanked the City Council for the opportunity to present the Downtown Development Plan. He stated that the im- portance of the plan to revitalize the downtown district is evident. Mr. Otterson stated that the area on Central Avenue from 37th Avenue to 42nd Avenue was once a viable business district, something considerably different than it is at present. Mr. Otterson explained that the draft of the downtown plan was begun in Jan- uary of 1977 - it was to be a plan of action that would cause improvements in accordance with the goals and objectives set for the district. He further stated that since community development is an extremely complicated process, dependent upon many factors, the plan should be a general, flexible, realistic statement of what the City needs. A copy of a letter to the Council from Bob Guzy was then read by Mr. Otterson. The body of that letter is as follows: I apologize that as Chairman of the Downtown Development Council I am unable to attend the public hearing August 3, 1977. In regard thereto I wish to advise you that the Downtown Develop- ment Council (DDC) has put in many hours studying the downtown area and the redevelopment thereof together with the tools nece- ssary for redevelopment. Progress has been slow but the DDC is still enthusiastic in its attitude to seek a means of improving our downtown business district. The DDC is of the opinion that to accomplish redevelopment in our business district it would appear that the tax increment financing is the only vehicle that will provide us with the tool to hopefully accomplish redevelopment. August 3, 1977 To have tax increment financing available to us, it is necessary that a redevelopment plan and a redevelopment district be approved. The approval of such a plan and district does not necessarily mea~ that tax increment fina~cing will be used in the future and in no way is the City by approval of such a plan committing itself to tax increment finani~ing. Any future proposal for tax increment finan- cing would require necessary approval of the various governmental authorities and at thc time of that approval, the City of Columbia Heights should be in a position to see that the situation in Minneapolis as to redevelopment did not occur. To accomplish redevelopment by tax increment financing it is nec- essary to have an economically feasible project that will be gen- erating taxes to repay the debt. It would be our hopes that this type of project could be developed in our business district, how- ever, with economic costs of relocation and land acquisition this may not develop and of course the economic impact will bear close scrutiny by all involved in connection with any developer proposal. It wo~.:ld appear that there is potential legislation pending which could deprive our community of tax increment financing. If this legislation develops, there may be a grandfather savings clause which will allow us to continue with tax increment financing if we are to a certain stage by the time that legislation would pass. As I stated before it would appear that tax increment financing is a valuable tool which if it could be presented for our commu- nity x~ay give us an opportunity to redevelop the business district much sooner than the natural process of decay and rebuilding. The Downtown Development Council represents numerous interests in the community including business, residential, citizens with chil- dren in the school district; and bas citizen representation from the proposed district. I would urge you to give your complete consideration to the pro- posed plan and district and approve same so that we may be in the position to take advantage of tax increment f~nancing for poten- tial development, if it is needed, to accomplish our goal of re- establishing a viable downtown business district. Mr. Otterson stated that the problem of the deteriorating business district has been discussed for several years, although a strategy for change was never developed.. He further stated that the public and private sectors must work together to carry out redevelopment in the downtown area. Neither group could do the job by itself. He then went on to explain tax increment financing, stating that it ~is a program that has been quite successful, but has received bad publicity because of the poor way it had been hand]ed ~n some cases. Early plans for the downtown area were shom.n and explained. Phil Honsey of the Housing Authority presented the results of three surveys he had conducted on various groups in Columbia Heights. Consistently noted in these surveys as one of Columbia Heights' biggest problems was the August 3, 1977 deteriorating downtown area. The problems of the district were then presented and discussed; these including parking, traffic, environmental and economic viability. Otterson stated that, to be successful, the Plan must contain three things: 1) private renovation of existing structures 2) public improvements 3) new commercial and office developments A summary was given of what would be included in each of these three categories. Mayor Nawrocki joined the meeting at 8:35 p.m. It was explained that, to be eligible for tax increment financing, the following findings must be made regarding the downtown district: 1) there are structural deficiencies 2) there is economic deterioration 3) there are environmental deficiencies. Evidence supporting these three statements was presented. There was more discussion on the process of tax increment financing. Mr. Otterson stated that there must be a commitment by a developer long before any action is taken on the part of the City. Mr. Otterson asked the Council, on behalf of the Downtown Development Council and the Housing and Redevelopment Authority, to approve the Downtown Redevelop- ment Plan and proposed district as presented. He again thanked the Council for the opportunity to present the plan. The meeting was then opened for questions from the audience and/or Councilmembers. A lady in the audience whose home ~s in the proposed development district asked where she'd go when this development took place. She explained that she had a nice home on a residential lot and she didn't want to be displaced. Mayor Nawrocki stated that, although her home is in the proposed district, it does not necessarily mean that she will have to move or that development would occur at all. Another lady in the audience asked how the Council would like it if some- one took their home. Mel Aanerud was present and at this time stated that he realizes that there are emotional involvements in this issue. He went on to say that the people involved must strive to be as objective as possible. He explained that there is a decline of tax return from the commercial property along Central. If this continues, the tax burden on residential property will be greater. He stated that it may be difficult to be objective when one's own home is directly involved, but the final outcome is for the good of the community as well. August 3, 1977 Mr. Dave Zurek asked why there were not more people present at this meeting who are supportive of the concept being disc~,ssed. Mr. Otterson remarked t~lat people who typically come out to meetings like this are those who are opposed to the subject matter. Mr. Chester Shattuck stated that he is in favor of the proposal because he doesn't want to see the tax base drop further, and he'd also like to have the facilities available to do the major part of his shopping and related business in Columbia Hei?~ts. He doesn't like 'leaving town' to ~pend his money. Mr. Monty Florence pointed out that many people don't know zpecifically what's happening with respect to this proposal. Mr. Otterson replied that there is no easy and sure way to reach a large group of people, and there is also no easy way to ~xplain a proposal such as this. Some general points of the plan were then discussed. Ms. Jackie Halterman stated that she is concerned for the people who may lose their homes. She asked how many would be forced out. Mr. Otterson replied that there is nothing presently designated for acquisition. A discussion followed regarding the steps that would be followed in the relocation process. One of the gentlemen owning a home in the proposed redevelopment district asked if he should make improvements on his home or let it run down. Mr. Otterson replied that he should make ail the improvements he ~:ould like, as the home may never be acquired, and if it is, the ~mprovements will increase the fair market value for the home, thus increasing the amount he will receive for it. A tenant of one of the office buildings asked if relocation costs would also apply to tenants. Mr. Otterson replied in the affirmative. Mayor Nawrocki noted that there is general agreement that something should be done in the downtown area. He went on to say that the question of what should be done is where groups of people beg~n to differ. He stated that he felt the proposal before the Council was a good one for the following reasons: 1) the proposal provides for building the commercial tax base of the community, commercial tax base is important to a community such as Columbia Heights 2) it provides shopping opportunities for the people of the community 3) it will provide job opportunities for people in the area. He emphasized that what has been shown at this meeting is not a final plan. He also stated that the Council will continue to consider the development plan's effect on people, particularly the adverse effects that may be involved. The Mayor went on to say that it is important to relize that what is being done at this meeting is not by any means a final step. An area is merely being indicated for possible future commercial improvement. The Mayor also stated that it is regretable, but communications barriers do exist between governmental bodies and the people of a community. He explained that hearing notices get lost, owners of property are difficult to trace, and there is a tendency by people to disregard the notices which are sent. He concluded by stating that a community is the sum total of all of its parts; citizens, business, industry, and special interst grou?s. He noted that all of these parts would be taken into consideration in the Council's decisions on this redeveTopment pla::. August 3, 1.977 Resolution 77-46 Approving a Redevelopment Plan for the Central Business District was read by Malcolm O. Watson. The Resolution was offered by Hentges, Seconded by Heintz. Motion by Hentges, Seconded by Heintz to change section 9 of the resolution from "...is made by the Authority to the City Council" to "...is made by the Authority and approved by the City Council." Roll Call: All Ayes Motion by Hentges, Seconded by Norberg to change section D of the resolution from "...and to take all such action as they deem necessary or desirable in implementing the content of this resolution." to "...and to take all such actions as are necessary to implement the content of this resolution." Roll Call: All Ayes Motion by Norberg to strike section 3 from the resolution. Motion dies for lack of a second. Motion by Norberg to strike section A of the resolution because it approves the tax increment financing aspect of the plan. Motion dies for lack of a second. Councilman Norberg pointed out that he felt the plan contains two fatal flaws: it sidesteps the heart of the problem and forces new development and it extends into a primarily residential area. He stated that he could not accept the plan with a clear conscience. Mayor Nawrocki stated that these were Councilman Norberg's opinions and should not be taken as necessarily being factual. He also stated that it is easy to criticize a plan when one does not offer any particular alternatives. Roll Call on Resolution: Logacz, Heintz, Hentges, Nawrocki--aye Norberg--nay Resolution 77-46 is adopted. RESOLUTION 77-46 FINDINGS AND DETERMINATIONS BY AND RESOLUTIONS OF, THE CITY COUNCIL OF COLUMBIA HEIGHTS, MINNESOTA, RELATIVE TO AND APPROVING A REDEVELOPMENT PLAN AND REDEVELOP- MENT PROJECT AREA FOR A COMMERCIAL BUSINESS DISTRICT REVITALIZATION PROGRAM IN COLUMBIA HEIGHTS, MINNESOTA, ENTITLED "DOWNTOWN C.B.D. REVITALIZATION 'PLAN," DATED MARCH 2, 1977 WHEREAS, it has been the intent and desire of the City of Columbia Heights for many years to improve conditions in the section of the City of Columbia Heights referred to as the 40th and Central areas or the "Central Business District" and, WHEREAS, the Housing and Redevelopment Authority of Columbia Heights, Minnesota, herein called the "Authority," has prepared a redevelopment plan for a revitaliza- tion program in the Central Business District of Columbia Heights, Minnesota, August 3, 1977 consisting of pages thirteen (13) through thirty-four (34) of that certain document entitled "Downtown C.B.D. Revitalization Plan," dated March 2, 1977, and including a statement for financing projects proposed by the "Plan," and WHEREAS, the Plan was duly reviewed and approved by the Downtown Development Council of Columbia Heights, Minnesota, being a duly designated and acting official advisory body to the City Council and Authority, a copy of their Resolution 77-2 is attached and made reference to herein; and, WHEREAS, the Authority, by Resolution 77-16, adopted at a meeting held on June 14, 1977, (a copy of which is attached and mad~ reference to herein), did approve the Plan and did authorize application to the City Council for approval of the Plan, and submission to the City Council of the Plan, including a statement of the method proposed for financing the project proposed by tlne Plan, and the written opinion of the Planning and Zoning Commission of Columbia Heights, dated June 28, 1977, and WHEREAS, application for approval of the Plan has now been made to the City Council, and the Plan, a statement of the method proposed for financing the project proposed by the Plan, the written opinion of the Planning and zoning Commission have now been duly submitted to the City Council, and the City Council on August 3, 1977, duly held a public hearing on the Plan pur- suant to published notice, dated July 20, 1977, all as required by Minnesota Statutes 462.521; and WHEREAS, the Authority may not proceed with the Plan unless the City Council, by resolution, makes certain findings with respect to the Project Area and Plan, and approves the Plan; and, WHEREAS, the Authority has studi~ the location and the physical condition of structures, land use, environmental influences, and social, cultural, and economic conditions of the Project Area, and the Planning Commission of the City of Columbia Heights, Minnesota, being the duly designated and acting official planning agency of Columbia Heights, Minnesota, has found and determined that the Project Area is a deteriorated and deteriorating area with- in the meaning of Minnesota Statutes 462.421, Subdivision 11, as set out in its written opinion submitted ot the City Council, which finding and determina- tion was concurred in by the Authority; and WHEREAS, the City Council has duly considered the written opinion of the Planning and Zoning Commission, the findings and d~erminations and resolutions of the Authority dated June 14, 1977, the findings and determi~ations and resolutions of the Downtown Development Council dated June 15, 1977, the mat- erial and information included in the Plan, and the testimony and evidence presented at the public hearing on August 3, 1977; and, WHEREAS, the members of the City Council have knowledge of the conditions prevailing in the Project Area and in the locality generally; and I~EREAS, the City Council has been fully apprised of all actions that will or may be necessary to be taken by the City of Columbia Heights relating to the Plan and the implementation and carrying out of the Plan. August 3, 1977 NOW THEREFORE, the City Council of the City of Columbia Heights, Minnesota, does hereby make the following findings and determinations: 1. that the area included with the Plan (the "Project Area") is a deteriorated and deteriorating area within the meaning of Minnesota Statutes 462.421, subdivision 11, by reason of, but not limited to, such factors as serious structural deficiencies in sixty-one (61) or 41% of the structures contained in the Project Area. 2. That the revitalization program proposed by the Plan is necessary to eliminate, and prevent the spread of such deterioration. 3. That the Redevelopment Project Area is subject to conditions preventing private development and would not be available for redevelopment without the governmental assistance and financial aid proposed by the Plan. 4. That the Plan and its corresponding Redevelopment Project Area affords maximum opportunity for redevelopment by private enterprise, consistent with the sound needs of the locality as a whole. 5. That the Plan provides an outline for the redevelopment and rehabilitation of the Project Area, and is sufficiently complete to indicate the relationship of the Plan to the objectives of the City of Columbia Heights as to appropriate land uses and general standards for redevelopment or rehabilitation within the Project Area. 6. That there is a feasible method for the relocation of businesses and families who may be displaced from the Project Area, and that there are available or will be provided, decent, safe and sanitary d~¢elling units at least equal in number to the number of displacies; that the Authority, in acquiring any properties, must and will provide all relocation assistance and benefits required by Minnesota Statutes 117.50 et. seq. and/or the Federal Uniform Relocation Assistance and Real Property Acquisition Act of 1970, and any amendments thereto. 7. That the objectives and purposes of the Plan conform to and are consistent with the general land use proposals and planning objectives established by the City of Columbia Heights in their Comprehensive Plan dated June, 1970. 8. That the Plan provides a feasible and adequate method of financing redevelopment projects recognizing that the Authority will upon approval of a specific development proposal within the Project Area, add additional section to the C.B.D. Revitalization Plan addressing said proposal in depth, as to financing, land acquisition, tax increment analysis, and land use. 9. That certification by Anoka County, Minnesota, of the Development Project Area, pursuant to MSA 462.585, Subdivision 2, is for purposes of establishing a base value only and is not intended to capture tax increments until such time a written request is made by the Authority and approved by the City Council for tax increments on identified properties within the Project Area. August 3, 1977 NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF COLUMBIA HEIGHTS, MINNESOTA: A. That the Plan, in all respects, is hereby approved, including the method proposed for financing specific development proposals within the Project Area; B. That the City Clerk is hereby directed to maintain on file a copy of the Plan as he~-eby approved, together with the written opinion of the Planning Commission, the Findiogs and Determ~ations and Resolutions of the Authority ~ated June 14, 1977, and the Downtown Development Council dated June 15, 1977. C. That in order to implement and facilitate the effectuation of the Plan hereby approved, it is found and determined that certain official action must be taken by this body with reference among other things to changes in zoning, the vacating and removal of streets, alleys, and other public ways, the establishment of new street patterns, location and relocation of sewer and water mains and other public facilities and other public action, and accordingly, this body hereby (a) pledges its cooperation in helping to carry out the Plan; (b) requests the various officials, departments, boards and agencies of the locality having administrative responsibilities in the premises likewise to cooperate to such end and to exercise their respective functions and powers in a manner consistent with the plan; (c) stands ready to consider and take appropriate action upon proposals and measures designed to affectuate the pJan. D. That the Mayor and City Manager, be and they +~ereby are, directed and authorized, for and onbehalf of, and in the name of, the City of Columbia Heights, to execute all such documents and agreements, and to take all such action, as are necessary to implement the content of this resolution. Passed this 3rd day of August, 1977. Recess: ]0:42 P.M. Reconvene: 11:05 P.M. PURCHASE OF VEHICLES FOR CETA "SPECIAL PROJECTS" Administrative Assistant Tim Yantos reported that informal bids had been taken on one hail ton, three quarter ton, and four wheel drive vehicles to be utilized by CETA "Special Projects" personnel. He was recommending the purchase of two one half ton trucks from White Bear Dodge in an amount of $4,760 each, and one four wheel drive truck from Midway Ford in an amount of S6,185. Councilman Heintz inquired if the CETA Adminfstration allowed the use of these funds for purchases of this kind. Councilman Hentges stated that he felt the purchases were correct. Councilman Norberg stated that he felt formal bids should have bean taken. Attorney Kalina noted that it is legal to take informal bids on any purchases under $10,000. Councilman Norberg replied that it was his understanding that the Council would not be taking advantage of this unless it had been agreed to before the informal bids were taken. August 3, 1977 Mayor Nawrocki asked the record to show that the need for the trucks is to properly utilize CETA personnel currently working for the City. He further stated that several bids had been received to show the competitiveness of the prices. He also noted that the money for the vehicles is available from CETA funds. The Mayor pointed out that it is normally desirable to take formal bids on purchases of this size, however the timing of this situation is such that it would cause these CETA personnel to be used less efficiently if they do not have vehicles as soon as possible. Motion by Hentges, Seconded by Heintz to award the bid on two half ton trucks to White Bear Dodge in an amount of $4,760 each, on the basis of low, informal bid, and the Mayor and City Manager be authorized to enter into contract for same. Roll Call: Logacz, Heintz, Hentges, Nawrocki--aye Norberg--nay Motion by Logacz, Seconded by Heintz to award the bid on the four wheel drive vehicle to Midway Ford in an amount of $6,185, based on low, informal bid, and the Mayor and City Manager be authorized to enter into contract for same. Roll Call: Logacz, Heintz, Hentges, Nawrocki--aye Norberg--nay Motion by Hentges, Seconded by Logacz to adjounr at 11:20 p.m. Roll Call: All Ayes 'seCretary- - --