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HomeMy WebLinkAboutDec 27, 1977OFFICIAL PROCEEDINGS REGULAR MEETING OF THE CITY COUNCIL CITY OF COLUMBIA HEIGHTS, MINNESOTA DECEMBER 27, 1977 The meeting was called to order at 8:03 p.m. Roll Call: Logacz, Heintz, Norberg, Hentges, Nawrocki - present INVOCATION The invocation was given by Councilman Norberg. MINUTES OF PREVIOUS MEETINGS Motion by Heintz, seconded by Hentges, to approve the minutes of the regular meeting of October 24, regular meeting of December 12, and the special meeting of December 19 as presented and dispense with the reading. Roll Call: All Ayes PAYMENT OF BILLS Motion by Norberg, seconded by Hentges, to approve the bills as listed. Roll Call: All Ayes MIDLAND COOP PROPOSED LAND PURCHASE City Manager Anderson explained the location of the property, its present use, a brief history of how the proposal came about, and a resume of proposed financing. Midland has agreed to purchase the land at $45,000 per acre for 8 acres. They will grade and landscape the property and maintain approximately 6 acres of park. The City will issue industrial revenue bonds to finance the project. Mr. Sig Sampson, President of Midland, Mr. Ralph Sommer, and Mr. Charles Hall were present to answer any questions about the proposed purchase and building. Councilman Norberg stated he would like to see a proposal drawn up setting dates with a definite schedule of planning and work, in a logical sequence, for all departments. Mr. Sampson noted that the company's lease at their present corporate offices would expire soon and to meet the deadline for moving they must start making plans for the new building. Talks with a contractor cannot begin until a resolution is passed by the Council approving the purchase. He explained that the $3.5 million original proposed bond issue would have covered the building and grounds but they would now also like to finance the furnishings for the office through bonds. In order to provide themselves with leeway, they would prefer to have the bond issue in the larger amount of $4.8 million. Any bonds issued over the actual final cost will be redeemed immediately. December' 27, 1977 Page 2 Mr. John Dowdle, 4904 5th St., asked what the tax revenue would be from the building. City Manager Anderson answered that the City Assessor estimated taxes of $126,000. Mr. Jerry Herron, 5209 4th St., asked if 53rd Avenue would be widened to handle the traffic. Mayor Nawrocki answered that there is currently an urbanization project underway on Central that will include widening and improved signalization on 53rd Avenue. City Attorney Kalina presented several points he and the attorney for Midland did not seem to agree on and asked for clarification. The amount of fill which Midland would need and the amount which could be dredged from Sullivan Lake were discussed. Councilman Logacz recommended that Engineering representatives meet with Midland and report at the next meeting as to the final interpretation of what is needed. Mayor Nawrocki noted that there was a memo of agreement dealing with industrial revenue bonds. The City Attorney explained the memorandum is one in which the City obligates itself to a good faith effort to provide for the issuance of bonds. Motion by Logacz, seconded by Hentges, to authorize the Mayor and City Manager to enter into a memorandum of agreement. Roll Call: Ail Ayes City Attorney Kalina explained the different sections of the resolution giving preliminary approval to the project and authorizing the execution of the memorandum of agreement with Midland. Motion by Hentges, seconded by Norberg, to waive reading of the resolution as sufficient copies were available to the public and that the resolution be approved as presented in writing. Roll Call: Ail Ayes RESOLUTION 77-86 RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROJECT UNDER THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT, REFERRING THE PROPOSAL TO THE CO~MISSIONER OF SECURITIES FOR APPROVAL, AND AUTHORIZING EXECUTION OF A MEMORANDUM OF AGREEMENT AND PREPARATION OF NECESSARY DOCUMENTS BE IT RESOLVED by the City Council of the City of Columbia Heights, Minnesota, as follows: 1. It is hereby found, determined and declared as follows: 1.1 The welfare of the State of Minnesota requires active promotion, attraction, encouragement and development of economically sound industry and commerce through governmental acts to prevent, so far as possible, emergence of blighted lands and areas of chronic unemployment, and the state has encouraged local government units to act to prevent such economic deterioration. December 27, 1977 Page 3 1.2 Midland Cooperatives, Incorporated, a Minnesota cooperative corporation (hereinafter, the Company), has advised this Council of its desire to acquire land within the City and to construct and equip one or more buildings thereon (such land, buildings and equipment being hereinafter referred to as the Project), for use by the Company as a headquarters and office facility. 1.3 The existence of the Project within the City would increase the tax base of the City, County and school district in which the City is located, and would provide opportunities for employment for residents of the City and surrounding area. 1.4 The City has been advised that conventional commercial financing to pay the capital cost of the Project is available only on a limited basis and at such high costs of borrowing that the economic feasibility of operating the Project would be significantly reduced, but that with the aid of municipal financing, and its resulting low borrowing cost, the Project is economically more feasible. 1.5 This Council has been advised that revenue bonds of the City could be issued and sold upon favorable rates and terms to finance the Project. 1.6 The City is authorized by Minnesota Statutes, Chapter 474, to issue its revenue bonds to finance capital projects consisting of properties used and useful in connection with a revenue-producing enterprise, such as that of the Company, and the issuance of such bonds by the City would be a substantial inducement to the Company to construct its facility within the City. On the basis of information given the City to date, it appears that it would be in the best interest of the City to issue its revenue bonds under the provisions of Chapter 474 to finance the Project of the Company at a cost presently estimated to be approximately $4,500,000. The Project above referred to is hereby given preliminary approval by the City and the issuance of bonds for such purpose and in an amount not exceeding $4,800,000 approved, subject to approval of the Project by the Commissioner of Securities and to the mutual agreement of this body, the Company and the initial purchasers of the bonds as to the details of the bond issue and provisions for their payment. In all events, it is understood, however, that the bonds of the City shall not constitute a charge, lien or encumbrance legal or equitable upon any property of the City except the Project, and each bond, when, as, and if issued, shall recite in substance that the bond, including interest thereon, is payable solely from the revenues received from the Project and property pledged to the payment thereof, and shall not constitute a debt of the City. The form of Memorandum of Agreement relating to the issuance of revenue bonds of the City to finance the cost of the Project is hereby approved and the Mayor and City Manager are hereby authorized and directed to execute the Memorandum of Agreement in behalf of the City. 5o In accordance with Minnesota Statutes, Section 474.01, Subdivision 7, the Mayor and City Manager are authorized and directed to submit the proposal for the Project to the Commissioner of Securities for his approval of the Project. The Mayor, City Manager, City Attorney and other officers, employees and agents of the City are hereby authorized to provide the Commissioner with any preliminary information he may need for this purpose, and the City Attorney is authorized December 27, 1977 Page 4 to initiate and assist in the preparation of such documents as may be appropriate to the Project, if it is approved by the Commissioner. BIDS City Manager Anderson stated that the City has taken bids on leather goods for the Civil. Defense Police Reserve. Two informal written bids were taken and the iow bid is from Uniforms Unlimited for $1,076. Motion bt, Heintz, seconded by Norberg, to award the bid to Uniforms Unlimited for S1,076 for leather goods for the Civil Defense Police Reserve unit based on low informal bids taken and that the Mayor and City Manager be authorized to enter into agreement for same. Roll Call.: Ail Ayes ORDINANCE 882 - OVERTIME PARKING Motion by Hentges, seconded by Norberg, to take Ordinance 882 regarding overtime parking off the table for discussion. Roll Call.: Heintz, Norberg, Hentges - Aye Logacz, Nawrocki - Nay Motion carries. A discussion followed on "snowbirds" and the expense to the City because of the street department having to plow several times over. Mr. R. J. Martin, 4032 Washington, stated that he doesn't feel there is any enforcement of parking laws. He quoted from a letter he received from Police Chief Anderson dated June 1, 1976 regarding 6 hour and boulevard parking. He stated he would like to see better enforcement of the laws. Mr. Lloyd Graczyk, 4911 4th St., stated that he can't see any reason why residents cannot park on boulevards when there isn't enough driveway to park in. He feels it is a handicap having an alley instead of a long driveway. Councilman Heintz noted that he is a proponant of tag and tow and had asked the City Attorney to draft a new ordinance. He explained his argument with "snowbirds" Mr. Dowdle, 4904 5th St., asked Councilman Heintz if he was against just the Electric Steel parkers or all "snowbirds" He asked if a 2 hour parking limit could be enforced on Mill Street. Councilman Heintz stated that he felt this would handicap the Field House activities. Councilman Logacz stated that the City's Police Department is small and he would rather see the officers spend time on more serious problems than tagging parkers. He realizes this is a problem but not the most serious one in Columbia Heights. Mr. Palm asked if anyone had ever called on Electric Steel to tell them of the problem. The Mayor answered that the Company has been informed and the employees have been warned. December 27, 1977 Page 5 Mr. Kevin Peterson, 4850 Madison, asked how the people are supposed to know when the City plans to plow the streets so cars could be moved. Mayor Nawrocki noted that proposed ordinance 882 stated that any car parked in the street between 2 a.m. and 6 a.m. was illegally parked. An alternate ordinance would only apply when snow removal was required. Councilman Norberg stated than snow wasn't the only problem caused by parked cars, there is also a danger to pedestrians when trying to cross a street. The ordinance would also get the cars off the street during peak vandalism hours. Mayor Nawrocki noted that there is no such thing as a perfect ordinance related to parking. There is no way to cure all the problems. The ordinance under consideration banning parking between 2 a.m. and 6 a.m. will not save great deals of money. Enforcement will be impossible and vandalism will not be stopped. He also stated that a good share of the community was platted out before everyone owned cars and space wasn't allowed for the number of cars people own today. No ordinance will take care of all the situations alluded to tonight. He asked the Council if they had any action to propose. Motion by Norberg, seconded by Logacz, to table ordinance 882 at this time, to be discussed next month. Roll Call: Logacz, Norberg, Hentges, Nawrocki - Aye Heintz - Nay Motion carries. RESOLUTION DESIGNATING DEPOSITORIES The resolution was read by City Manager Anderson. Offered by: Hentges Seconded by: Heintz Councilman Norberg noted that in view of the fact that the Northeast State Bank has shown an interest in establishing a branch in this area, they should be included, and suggested they be added to the resolution. Motion by Norberg, seconded by Hentges, to amend the resolution to add Northeast State Bank as a depository. Roll Call on motion to amend: Logacz, Norberg, Hentges, Nawrocki - Aye Heintz - Nay Roll Call on amended resolution: Ail Ayes RESOLUTION 77-87 DESIGNATING DEPOSITORIES FOR FUNDS OF THE CITY OF COLUMBIA HEIGHTS FOR THE YEAR 1978 The City Council of the City of Columbia Heights, HEREBY RESOLVES, that the Marquette State Bank of Columbia Heights, the Fidelity Bank and Trust Co., the Third Northwestern National Bank, and the Northeast State Bank be hereby designated as the depositories for moneys of the City of Columbia Heights for December 27, 1977 Page 6 a period of one year beginning the first day of January, 1978, and the Treasurer of this City is hereby directed to deposit moneys of this City in said Banks, and the Marquette State Bank of Columbia Heights, the Fidelity Bank and Trust Co., the Third Northwestern National Bank, and the Northeast State Bank are hereby authorized and directed to honor and pay any checks or orders, when signed by the City Treasurer for the withdrawal or transfer of funds on deposit in said banks in whatever form. BE IT FURTHER RESOLVED, that in case such deposit shall at any time exceed the sum for which its deposits are insured under the acts of Congress of the United States relating to insurance of bank deposits, said depository shall immediately furnish bonder securities in lieu of bond according to the law, and the Marquette National Bank for the Marquette State Bank of Columbia Heights, the Federal Reserve Bank for Fidelity State Bank, the Third Northwestern National Bank, and Northwestern National Bank for the Northeast State Bank are hereby designated as the places for the safekeeping of all securities furnished in lieu of such bond. RESOLUTIONS REGARDING STATE AID These resolutions will provide a technical assistance agreement between Columbia Heights and the State and authorization for the City Engineer to ask the State for services during the year 1978. RESOLUTION 77-88 BE IT RESOLVED, that pursuant to statutory authority, the Columbia Heights Municipal Engineer for and on behalf of the Municipality of Columbia Heights is hereby authorized to request and obtain from the Minnesota Department of Transportation, needed engineering and technical services during the year of 1978, for which payment will be made by the Municipality upon receipt of verified claims from the Commissioner of Transportation. Offered by: Heintz Seconded by: Hentges Roll Call.: Ail Ayes RESOLUTION 77-89 Be it resolved that pursuant to Section 161.36, Subdivision 1 through 6, Minnesota Statutes, 1976, the Commissioner of Transportation be appointed as agent of the City of Columbia Heights to let as its agent, contracts for the construction of portions of Municipal Streets, for the year 1978, and the Mayor and the Clerk are hereby authorized and directed for and on behalf of the City Council to execute and enter into a contract with the Commissioner of Transportation prescribing the terms and conditions of such contracts in the form as set forth and contained in "Minnesota Department of Transportation Agency Contract Form No. 30774" a copy of which said form was before the Council, assuming on behalf of the City all of the contractural obligations therein contained. Offered by: Heintz Seconded by: Hentges Roll Call.: Ail Ayes Recess at 10:03 p.m. Reconvene at 10:27 p.m. December 27, 1977 Page 7 PLANNING AND ZONING COMMISSION RECOMMENDATIONS White Castle Restaurant Sam VanTassel, Assistant City Planner, stated that a conditional use permit is required for construction of this type. Councilman Logacz stated that the Planning and Zoning Commission has not made a recommendation for a permit as a protest against the building of another fast food restaurant. Mr. John Shampton Assistant General Counsel, Mr. William D. Johnston Director of Engineering, and Mr. H. O. Braesch Area Manager of White Castle were present to answer any questions. Mr. Braesch read a statement of facts as they pertain to the restaurant. Mr. Johnston showed a mock-up of the proposed building. Councilman Hentges stated that this plan was not brought to the full Traffic Commission because they did not have a quorum at their last meeting. A discussion followed on traffic flow, distance of driveways from corners, parking spaces, and glare require- ments on lighting. Motion by Heintz, seconded by Hentges, that a conditional use permit be granted and a minimum of 62 parking spaces be provided. City Attorney Kalina stated that the rule governing conditional use permits is that its use cannot be detrimental to the health, safety, or welfare of the community. He noted that this facility is to be approximately a 50% fast food and 50% restaurant operation. The difference between the two types of operations being the number of required parking spaces. He recommends giving White Castle a variance of 20 parking spaces. A discussion followed on the difference between a fast food operation and a restaurant and the possible ways of gaining an additional 20 parking spaces. Councilman Logacz stated that he will abstain but would like to sse a variance given for parking and have White Castle retain the green area in front of the building. Mayor Nawrocki stated that he will vote against the motion because he doesn't feel it is in the best interest of the community. Roll Call on motion: Heintz, Norberg, Hentges - Aye Nawrocki - Nay Logacz - Abstain Motion carries. PLANNING AND ZONING APPOINTMENT This appointment is to fill the unexpired portion of Vern Johnson's term on the Commission. Motion by Heintz, seconded by Hentges, to appoint Irene Parsons to the Planning and Zoning Commission. Roll Call: Ail Ayes December 27, 1977 Page 8 REQUEST FROM SUN NEWSPAPERS City Manager Anderson stated that he had received a request from the Sun Newspapers asking that they be designated the City's official publication. Mayor Nawrocki asked if the bidding process should be followed. Motion by Norberg, seconded by Heintz, that the City Manager be authorized to call for bids for official newspaper designation to be opened on January 19 and awarded on January 23. Roll Call: Ail Ayes OLD BUSINESS City Manager Anderson reported that he had talked to Mr. Wagamon regarding ~ seth!e- ment on his claim for damages to his driveway during street construction. The City Manager presented the bids to him. Mr. Wagamon rejected the low bid but said he would accept the $1,530 bid. Motion by Hentges, seconded by Heintz, that the Council authorize the Mayor and City Manager to enter into agreement to settle the claim of Wallace Wagamon at 3960 McKinley Street for damages caused his property during street construction on McKinley Street in the amount of $1,530. Roll Call: Ail Ayes Motion by Heintz, seconded by Norberg, that the $1,530 approved for payment of the Wagamon claim come from the unallocated general fund. Roll Call: Ail Ayes OTHER OLD BUSINESS The City Manager has talked with Mitch DeMars, Street Superintendent, in regards to the Dunkley bill for $500. Mr. DeMars feels $455 will cover the work done by the City to sweep the streets. Motion by Hentges, seconded by Norberg, that the cost of extra sweeping be designated as $455 and that Dunkley be paid the remainder of $45. Roll Call: Ail Ayes LICENSES Councilman Norberg asked if there was anything the City could do to enforce vending machine laws. He was particularly concerned with teenagers buying cigarettes. Motion by Norberg, seconded by Hentges, to i~}slude a warning with all over the counter and vending machine licensing warning the licensee of the laws about sales to minors and that the City of Columbia Heights will enforce t!~em. Roll Call.: Ail Ayes December 27, 1977 Page 9 Motion by Heintz, seconded by Logacz, that all licenses be approved upon payment of proper fees and that a letter be sent to cigarette sales licensees warning of laws and penalties thereof. Roll Call: Ail Ayes REPORTS Discussion on the possible licensing of saunas. Mayor Nawrocki requested the City Attorney to obtain copies of St. Paul's and Richfield's ordinances regarding sauna licensing. CITY MANAGER REPORTS The salary increase recommendations of two employees were presented. Motion by Hentges, seconded by Norberg, to table consideration of these reviews until the next regular meeting. Roll Call: Norberg, Hentges, Nawrocki - Aye Logacz, Heintz - Nay Motion carries. PUBLIC WORKS DIRECTOR REPORTS George Brown, City Engineer, reported the Engineering Department would like to set a date to review the public works program for 1978. Councilman Norberg noted that this is the type of item that he would like to see on a Council work list. He wants the staff to get together to arrive at some type of schedule. The Council will meet with the Engineering Department on January 10 along with the personnel review meeting. Motion by Heintz, seconded by Logacz, to adjourn at 12:38 a.m. Roll Call: Ail Ayes Bruce G. Nawrocki, Mayor Secretary