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HomeMy WebLinkAboutFebruary 5, 2001Work SessionCITY OF COLUMBIA HEIGHTS 590 40TH AVENUE N.E., COLUMBIA HEIGHTS~ MN 55421-31878 (612) 782-2800 TDD 782-2806 Please note.' Ciiy Hall Phone Numbers have changed. New numbers are.' Main Number (763) 706-3600; TDD (763) 706-3692 ADMINISTRATION NOTICE OF COUNCIL WORK SESSION Notice is hereby given that a work session is to be held in the CITY OF COLUMBIA HEIGHTS Meeting of: Date of Meeting: Time of Meeting: Location of Meeting: Purpose of Meeting: COLUMBIA HEIGHTS CITY COUNCIL FEBRUARY 5, 2001 7:00 P.M. CONFERENCE ROOM 1 WORK SESSION AGENDA Consent Items 1. PrintingofCityNewsletterbids 2. Award bid for 1967 Pirsch Fire Track 3. Anoka County Joint Powers Agreement SCORE Ftmds 4. Set work session date for Tuesday, February 20, at 5:00 p.m. Mayor Gary L Peterson Councilmembers Marlaine Szurek Julienne Wyckoff Bruce Nawrocki Robert A. Williams ~ Manager Wal~ F~hst Discussion Items 1. Declaration of Hazardous Building - xxxx 6m Street NE 2. Request to waive Murzyn Hall fee for "Taste of Columbia Heights" festival 3. Request from Sister Cities Committee regarding trip to Atlanta 4. Architectural design guidelines for Central Avenue from 3Th to 42"a Avenues 5. Right-of-way acquisition process for 39$ Avenue 6. Right-of-way acquisition process for Central Avenue 7. Consider Charter Commission liaison - discussion 8. Update on discussion with Jim McComb for Market Feasibility Study - discussion 9. Date for joint meeting with the School District, and cities of Fridley and Hilltop - discussion The City of Columbia Heights does not discriminate on the basis of disability in the admission or access to, or treatment or employment in, its services, programs, or activities. Upon request, accommodation will be provided to allow individuals with disabilities to participate in all City of Columbia Heights' services, programs, and activities. Auxiliary aids for handicapped persons are available upon request when the request is made at least 96 hours in advance. Please call the City Council Secretary at 706-3611, to make arrangements. (TDD/706-3692 for deaf or hearing impaired only) CITY COUNCIL LETYER Meeting of: February 12, 2001 AGENDA SECTION: CONSENT AGENDA NO: ITEM: City Newsletter Printing Quotations for 2001 NO: ORIGINATING DEPT.: Recreation CITY MANAGER APPROV~.L BY;~ 0 \ BACKGROUND: On January 8, 2001 the City Council authorized staff to obtain price quotes for printing and mailing the 2001 quarterly "Heights Happenings" city newsletters. Price quotes were requested from three printing companies. Attached are the two price quotes that were received by the Recreation Department. The following table summarizes the two quotations: Item 20-page newsletter 24-page newsletter Postage on 10,037 newsletters Halftones (photographs) Total for four issues (24-page) Nystrom's Publishing Price Quote $3,444.21 including tax ($3,461.25 in 2000) $3,826.54 including tax ($3,843.58 in 2000) approximately $1,200.00 $10.00 each $20,106.16 Brooklyn Printing Price Quote $3774.14 including tax $4,242.79 including tax Approximately $1,200.00 $10.00 each $21,771.16 Staff has been very pleased with the quality of newsletter published by Nysttom's Publishing, They have been very accommodating, easy to work with, and are very familiar with the production process of our newsletter. RECOMMENDED MOTION: Move to authorize Mayor and City Council to enter into an agreement with Nyslrom's Publishing for printing, publishing, and distributing the City newsletter based upon their proposal of estimated yearly cost of $20,106.16 for four publications in 2001. COUNCIL ACTION: Htshappn\CC-Newsletter0 1 Specifications for 2001 City Newsletter Contact Person: Keith Windschitl, Recreation Director Columbia Heights Recreation Department 530 Mill Street NE Columbia Heights, MN 55421 Phone (763) 706-3730 Fax (763) 706-3731 Qualifications: Printing company must have two years of experience in the priming of newsletters or similar projects. 2001 city newsletters to be published and mailed quarterly according to the following schedule: Spring - February; Summer - May; Fall - August; Winter - November. Printing specifications: * Primed using a sheet fed method (no web press priming) * 60 lb. white 11" x 17" paper. * Folded in half(to create an 8 1/2" x 1 I" booklet) with two staples in the center. * Two ink print colors. * Printing to include typed text, clip art and photographs. * Printing on both sides of paper. * 12,900 newsletters to be printed. Price quotes should be submitted for newsletters of either 20 or 24 finished pages. 10,047 newsletters to be mailed to all Columbia Heights residents. The additional 2,853 newsletters to be delivered to John P. Murzyn Hall, 530 Mill St. NE, Columbia Heights, MN 55421. If there are different costs for the mailing a 20 or 24 page newsletter (due to different weights of the newsletter), these costs should be specified in the price quotes. Copy for the newsletter will be prepared on Quark X-Press and will be submitted in hard copy form. The primer will do color separation from the hard copy. Copy to be submitted to primer approximately seven business days prior to scheduled mailing dates. Additional cost for prinfmg oreside covers in three colors. Additional cost for half tone photographs. The price quotes shall include: printing costs; mailing costs (10,047 copies); sales tax; delivery costs; and any other associated costs. CITY COUNCIL LETTER Meeting of: February 12, 2001 AGENDA SECTION: NO: ITEM: Sale of 1967 Pirsch pumper NO: Background: ORIGINATING DEPARTMENT: Fire BY: Charles Thompson DATE: January 31, 2001 CITY MANAGER APPROVAL DATE~ In October, 2000, the City Council authorized the Fire Dep~uhaent to go out for sealed bids on a 1967 Pirsch fire pumper. The pumper is 33 years old and is no longer used in the Fire Department inventory. The pumper was advertised in the LMC Newsletter and the City's official paper, the Focus. The advertisement was also posted at City Hall. The bid process closed with only one bid received from Robert (Bobby) A. Williams for $2,500. Recommended motion: Move to Award the Bid for the sale of the 1967 Pirsch Fire Puntper Based on the Bid Received from Robert A. Williams for $2,500; and furthermore, to authorize the Mayor and City Manager to enter into an agreement for the same. 01-9 COUNCIL ACTION: CITY COUNCIL LZTTZR Meeting of February 12,2000 AGENDA SECTION: OTHER BUSINESS NO: ITEM: ANOKA COUNTY JPA SCORE FUNDS NO: ORIGINATING DEPARTMENT: SPECIAB PROJECTS BY: JEAN KUEHN DATE: January 20, 2001 CITY MANAGER ' S APPROVAL DATE: This Joint Powers Agreement issued by the County board, December 12,2000 (received January 15)is meant to include all of 2001 calendar year. The County has been assigned the full years allotment of SCORE funds from the State of Minnesota and has issued these agreements in a more timely manner than in past years. The 2001 Joint Powers Agreement with Anoka County entitles the City to apply for funding for the residential recycling program and the City's recycling drop off center as well as special collections of problem materials (ie., tires & oil filters, fluorescents). The joint powers agreement further specifies that Columbia Heights is entitled to receive reimbursements up to $54,963.31 for eligible expenses specifically related to recycling and waste abatement activities. To receive these funds the City must submit substantiating data in semiannual reports and abide by the State statutes regarding recyclable materials and mixed municipal solid waste. Staff has submitted the required reports for 2000 and has received the full amount of the allotment per the previous joint powers agreement. RECOMMENDED MOTION: Move to authorize Mayor and City Manager to enter into the 2001 Joint Powers Agreement with Anoka County to provide cooperation between the City and the County in the implementation of the Residential Recycling Program and to make funds of up to $54,963.31 available as reimbursement for eligible expenses. COUNCIL ACTION: Anoka County Contract #2001-0010 AGREEMENT FOR RESIDENTIAL RECYCLING PROGRAM THIS AGREEMENT made and entered into on the 12th day of December, 2000, notwithstanding the date of the signatures of the parties, between the COUNTY OF ANOKA, State of Minnesota, hereinafter referred to as the "COUNTY", and the CITY OF COLUMBIA HEIGHTS, hereinafter referred to as the "MUNICIPALITY". WITNESSETH: WHEREAS, Anoka County has received $801,191 in funding from the Solid Waste Management Coordinating Board and the State of Minnesota pursuant to Minn. Stat.§ 115A.557 (hereinafter "SCORE funds"); and WHEREAS, the County wishes to assist the Municipality in meeting recycling goais established by the Anoka County Board of Commissioners by providing said SCORE funds to cities and townships in the County for solid waste recycling programs. NOW, THEREFORE, in consideration of the mutual covenants and promises contained in this Agreement, the parties mutually agree to the following terms and conditions: PURPOSE. The purpose of this Agreement is to provide for cooperation between the County and the Municipality to implement solid waste recycling programs in the Municipality. TERM. The term of this Agreement is from January 1, 2001 through December 31, 2001, unless earlier terminated as provided herein. 3. DEFINITIONS. "Problem material" shall have the meaning set forth in Minn. Stat.§ 115A.03, subdivision 24a. "Multi-unit households" means households within apartment complexes, condominiums, townhomes, mobile homes and senior housing complexes. "Opportunity to recycle" means providing recycling and curbside pickup or collection centers for recyclable materials as required by Minn. Stat.§ 115A.552. "Recycling" means the process of collecting and preparing recyclable materials and reusing the materials in their original form or using them in manufacturing processes that do not cause the destruction of recyclable materials in a manner that precludes further use. "Recyclable materials" means materials that are separated from' mixed municipal solid waste for the purpose of recycling, including paper, glass, plastics, metals, fiuorescent lamps, major appliances and vehicle batteries. Refuse derived fuel or other material that is destroyed by incineration is not a recyclable material. "Yard waste" shall have u'~e meaning set forth in Minn. Stat.§ 115A.931. PROGRAM. The Municipality shall develop and implement a residential solid waste recycling program adequate to meet the Municipality's annual recycling goal of 1,637 tons of recyclable materials as established by the County. The Municipality shall ensure that the recyclable materials collected are delivered to processors or end markets for recycling. a. The Municipal recycling program shall include the following componen',s: i. Each household (including multi-unit households) in the Municipality shall have the opportunity to recycle at least four broad types of materials, such as paper, glass, plastic, metal and textiles. ii. The recycling program shall be operated in compliance with all applicable federal, state, and local laws, ordinances, roles and regulations. iii. The Municipality shall implement a public information program that contains at least the following components: (1) One promotion is to be mailed to each household focused exclusively on the Municipality's recycling program; (2) One promotion advertising recycling opportunities available for residents is to be included in the Municipality's newsletter or local newspaper; and (3) Two community presentations are to be given on recycling. The public information components listed above must promote the focused recyclable material of the year as specified by the County. The County will provide the Municipality with background material on the focused recyclable material of the year. iv. The Municipality, on an ongoing basis, shall identify new residents and provide detailed information on the recycling opportunities available to these new residents. b. If the Municipality's recycling program did not achieve the Municipality's recycling goals as established by the County for the prior calendar year, the Municipality shall prepare and submit to the County by March 31, 2000, a plan acceptable to County that is designed to achieve the recycling goals set forth in this Agreement. REPORTING. The Municipality shall submit the following reports semiannually to the County no later than July 20, 2001 and January 20, 2002: An accounting of the amount of waste which has been recycled as a result of the Municipality's activities and the efforts of other community programs, redemption centers and drop-off centers. For recycling programs, the Municipality shall certify the number of tons of each recyclable material which has been collected and the number of tons of each recyclable material which has been marketed. For recycling programs run by other persons or entities, the Municipality shall also provide documentation on forms provided by the County showing the tons of materials that were recycled by the Municipality's residents through these other programs. The Municipality shall keep detailed records documenting the disposition of all recyclable materials collected pursuant to this agreement. The Municipality shall also report the numizr of cubic yards or tons of yard waste 2 collected for composting or landspreading, together with a description of the methodology used for calculations. Any other material removed from the waste stream by the Municipality, i.e. fires and used oil, shall also be reported separately. Information regarding any revenue received from sources other than the County for the Municipality's recycling programs. Copies of all promotional materials that have been prepared by the Municipality during the term of this Agreement to promote its recycling programs. The Municipality agrees to furnish the County with additional reports in form and at frequencies requested by the County for financial evaluation, program management purposes, and reporting to the State of Minnesota. BILLING AND PAYMENT PROCEDURE. The Municipality shall submit itemized invoices semiannually to the County for abatement activities no later than July 20, 2001 and January 20, 2002. Costs not billed by January 20, 2002 will not be eligible for funding. The invoices shall be paid in accordance with standard County procedures, subject to the approval of the Anoka County Board of Commissioners. ELIGIBILITY FOR FUNDS. The Municipality is entitled to receive reimbursement for eligible expenses, less revenues or other reimbursement received, for eligible activities up to the project maximum as computed below, which shall not exceed $54,963,31. The project maximum for eligible expenses shall be computed as follows: a. A base amount of $10,000.00 for recycling activities only; and b. $5.73 per household for recycling activities only. RECORDS. The Municipality shall maintain financial and other records and accounts in accordance with requirements of the County and the State of Minnesota. The Municipality shall maintain strict accountability of all funds and maintain records of all receipts and disbursements. Such records and accounts shall be maintained in a form which will permit the tracing of funds and program income to final expenditure. The Municipality shall maintain records sufficient to reflect that all funds received under this Agreement were expended in accordance with Minn. Stat.§ 115A.557, subd. 2, for residential solid waste recycling purposes. The Municipality shall also maintain records of the quantifies of materials recycled. All records and accounts shall be retained as provided by law, but in no event for a period of less than five years from the last receipt of payment from the County pursuant to this Agreement. AUDIT. Pursuant to Minn. Stat.§ 16C.05, the Municipality shall allow the County or other persons or agencies authorized by the County, and the State of Minnesota, including the Legislative Auditor or the State Auditor, access to the records of the Municipality at reasonable hours, including all books, records, documents. and accounting procedures and practices of the Municipality relevant to the subject matter of the Agreement, for purposes of audit. In addition, the County shall have access to the project site(s), if any, at reasonable hours. 10. GENERAL PROVISIONS. In performing the provisions of this Agreement, both pardes agree to comply with all applicable federal, state or local laws, ordinances, rules, regulations or standards established by any agency or special governmental unit which are now or hereafter promulgated insofar as they relate to performance of the provisions of this Agreement. In addition, the Municipality shall comply with all applicable requirements of the State of Minnesota for the use of SCORE funds provided to the Municipality by the County under this Agreement. No person shall illegally, on the grounds of race, creed, color, religion, sex, marital status, public assistance status, sexual preference, handicap, age or national origin, be excluded from full employment rights in, participation in, be denied the benefits of, or be otherwise subjected to unlawful discrimination under any program, service or activity hereunder. The Municipality agrees to take affirmative action so that applicants and employees are treated equally with respect to the following: employment, upgrading, demotion, transfer, recruitment, layoff, termination, selection for training, rates of pay, and other forms of compensation. The Municipality shall be responsible for the performance of all subcontracts and shall ensure that the subcontractors perform fully the terms of the subcontract. The Agreement between the Municipality and a subcontractor shall obligate the subcontractor to comply fully with the terms of this Agreement. The Municipality agrees that the Municipality's employees and subcontractor's employees who provide services under this agreement and who fall within any job classification established and published by the Minnesota Department of Labor & Industry shall be paid, at a minimum, the prevailing wages rates as certified by said Department. It is understood and agreed that the entire Agreement is contained herein and that this Agreement supersedes all oral and written agreements and negotiations between the parties relating to the subject matter hereof. Any amendments, alterations, variations, modifications, or waivers of this Agreement shall be valid only when they have been reduced to writing, duly signed by the parties. Contracts let and purchases made under this Agreement shall be made by the Municipality in conformance with all laws, rules, and regulations applicable to the Municipality. 4 12. The provisions of this Agreement are severable. If any paragraph, section, subdivision, sentence, clause or phrase of this Agreement is for any reason held to be contrary to law, such decision shall not affect the remaining portion of this Agreement. Nothing in this Agreement shall be construed as creating the relationship of co- partners, joint venturers, or an association between the County and Municipality, nor shall the Municipality, its employees, agents or representatives be considered employees, agents, or representatives of the County for any purpose. PUBLICATION. The Municipality shall acknowledge the financial assistance of the County on all promotional materials, reports and publications relating to the activities funded under this Agreement, by including the following acknowledgement: "Funded by the Anoka County Board of Commissioners and State SCORE funds (Select Committee on Recycling and the Environment). INDEMNIFICATION. The County agrees to indemnify, defend, and hold the Municipality harmless from all claims, demands, and causes of action of any kind or character, including the cost of defense thereof, resulting from the acts or omissions of its public officials, officers, agents, employees, and contractors relating to activities performed by the County under this Agreement. The Municipality agrees to indemnify, defend, and hold the County harmless from all claims, demands, and causes of action of any kind or character, including the cost of defense thereof, resulting from the acts or omissions of its public officials, officers, agents, employees, and contractors relating to activities performed by the Municipality under this Agreement. The provisions of this subdivision shall survive the termination or expiration of the term of this Agreement. TERMINATION. This Agreement may be terminated by mutual written agreement of the parties or by either party, with or without cause, by giving not less than seven (7) days written notice, delivered by mail or in person to the other party, specifying the date of termination. If this Agreement is terminated, assets acquired in whole or in part with funds provided under this Agreement shall be the property of the Municipality so long as said assets are used by the Municipality for the purpose of a landfill abatement program approved by the County. IN WITNESS WHEREOF, the parties hereunto set their hands as of the d,tes first written above: CITY OF COLUMBIA HEIGHTS COUNTY OF ANOKA By: By: Name: Dan Erhart, Chairman Anoka County Board of Commissioners Title: Date: Date: ATTEST: By: Municipality's Clerk Date: Approved as to form and legality: John "Jay" McLinden County Administrator Date: Approved as to form and legality: Assistant County Attorney I:',CIVATFYNPCHXLOW-TECh%~r. CYCI.t/qXCO/CFRA~C2001.vqad 6 COLUMBIA HEIGHTS - CITY COUNCIL LETTER Meeting of: February 12, 2001 AGENDA SECTION: Consent NO: ITEM: Schedule Work Session Date NO: ORIGINATING DEPARTMENT: CITY MANAGER BY: Walt Fehst DATE: CITY MANAGERS i~ROV ~ It is recommended that a Work Session meeting be scheduled for Tuesday, February 20, 2001 at 5:00 p.m. in the City Hall Conference Room 1. This will be followed at 7:00 p.m. by a meeting of the Columbia Heights Economic Development Authority. RECOMMENDED MOTION: Move to establish a Work Session meeting date for Tuesday, February 20, 2001 at 5:00 p.m. in the City Hall Conference Room 1. COUNCIL ACTION: CITY COUNCIL LETTER Meeting of: February 12, 2001 AGENDA SECTION: NO: ORIGINATING DEPT.: Community Development CITY MANAGER APPROVAL ITEM: Declaration of Hazardous Building BY: Mel Collova NO: DATE :January 18, 2001 BackEround: The interior of the buildings on the property located at xxxx 6m Street N.E. has remained in a suspected hazardous condition for a period of at least one year. The Building Official has verified that the structure is owned by an elderly person. The Building Official had mailed a notice to owner/occupant and the owner/occupant has responded and stated the process will take more than six months. Six months is not an acceptable time period for abatement. Relatives of the owner have requested and have offered assistance in the abatement. The Building Official will consult with the City Attorney and an Administrative Search Warrant will be obtained. The Warrant will be served in a joint effort by Anoka County Health, Fire, Police, and Building Departments. Anoka County Adult Protection will be notified of the condition of the property and will be requested to provide assistance. The/nterior of the building is filled with debris constituting a fire and health hazard. The building is infested with rodents and insects. Per the relatives, the plumbing system is only partially operational. The Building Official has ordered the buildings emptied of debris and complete restoration of the plumbing system. A PIR Project Number will be assigned to the project. Costs of the project will be assessed to the property and its owner in the form of a special assessment on the property tax over a period of five years at an eight percent interest rate as allowed by the Hazardous Building Statutes. It should noted that PIR Abatement Funds are enterprise funds rather than a budgeted fund. Recommended Motion: Move to waive the reading of Resolution 2001-03, there being ample copies available to the public. Recommended Motion: Move to Adopt Resolution 2001-03, being a Resolution declaring the contents of the building on the property located at xxxx 6m Street N.E. as hazardous, to authorize staff to abate the contents, and to repair the plumbing system, and furthermore to authorize the Mayor and City Manager to enter into contracts with vendors as necessary to complete the project using PIR Funds and to charge all costs to the property in form of a special assessment to the property taxes. COUNCIL ACTION: RESOLUTION NO. 2001-03 RESOLUTION OF THE CITY COUNCIL FROM THE CITY OF COLUMBIA HEIGHTS REQUESTING ABATEMENT OF HAZARDOUS STRUCTURES LOCATED AT XXXX 6TM STREET N.E.. WHEREAS, there are substandard buildings located at xxxx 6m SWeet N.E. which have been unsafe for a period in excess of six months, and WHEREAS, Minnesota Statute 463.15 to 463.26 authorizes municipalities to address hazardous and substandard structures and properties, and WHEREAS, the City of Columbia Heights finds this property to be hazardous based on the following code violations as contained in the Findings of Fact: FINDINGS OF FACT Dangerous Building Definitions Chapter 3 of the 1994 Uniform Code for the Abatement of Dangerous Buildings: 302(9) Whenever, for any reason, the building or structure, or any portion thereof, is manifestly unsafe for the purpose for which it is being used. 302(17) Whenever any building or structure is in such a condition as to constitute a public nuisance known to the common law or in equity jurisprudence. THEREFORE, BE IT RESOLVED on the Building Official's conclusions that, the structures at xxxx 6m SWeet N.E. are substandard and filled with debris, that they lacks minimum standards for habitable space per 1998 MN State Building Code and 1994 Uniform Code for the Abatement of Dangerous Buildings, and the Building Official is recommending the structures be abated by removal of the debris and to bait for rodents. Conclusions of Council That all relevant parties have been duly notified of this action. That the structures on the property at xxxx 6th Street N.E. hazardous and are in violation of local, state and national code requirements. That the structures can be rehabilitated to bring them into compliance with local, state and national code requirements. Page 2 Declaration of Hazardous Structures Order of Council The remaining dwelling and detached garage located at xxxx 6a~ Street N.E., Columbia Heights, Minnesota, are hazardous buildings pursuant to Minn. Star. 463.152, 463.616. Pursuant to the foregoing findings and in accordance with Minnesota Statutes, the City Council hereby orders the owner of record of the above-hazardous building, or his heirs, to abate the hazard. The City Council further Orders that if the City is compelled to take any correction action herein, all necessary costs expended by the City will be assessed against the real estate concerned, and collected in accordance with Minn. Star. 463.22. The mayor, the clerk, city attorney and other officers and employees of the City are authorized and directed to take such action, prepare, sign and serve such papers as are necessary to comply with this order, and to assess the cost thereof against the real estate described above for collection, along with taxes. Passed this . day of ,2001 Offered by: Secondedby: Roll Call: Mayor Gary L. Peterson Patricia Muscovitz, Deputy City Clerk CITY COUNCIL LETTER Meeting of :February 12, 2001 AGENDA SECTION: NO: ITEM: Request of fees waived for the 1~ Annual "Taste of Columbia Heights" NO: ORIGINATING DEPT.: Recreation · . . CITY MANAGER APPROVAL BACKGROUND: At the January 24, 2001 Park and Recreation Commission meeting, the Human Services Commission requested that the fee for Murzyn Hall be waived for the fu'st annual "Taste of Columbia Heights" to be held on Sunday, March 25, 2001. The Recreation Director informed the Park and Recreation Commission that since there was no event scheduled for that Sunday, it would require eight (8) hours of staff time to clean and reset the hall from the prior evenings event, four (4) hours to staff the proposed event, and an additional six (6) hours to clean and reset the hall after the requested event to accommodate a 6:30 a.m. rental on Monday morning, March 26, 2001. By waiving the fee for this event, the Murzyn Hall budget would incur a loss of a minimum of $225.00 in staff costs. The Park and Recreation Commission recently established a policy regarding fee waived groups utilizing Murzyn Hall when the hall is not normally staffed. The adopted policy states that fee waived groups using the hall during non scheduled hours would be charged a $40.00 entry fee and a $15.00 per hour staffing fee, rather than the normal rental rate. ANALYSIS/CONCLUSION: The Park and Recreation Commission supports this "Taste of Columbia Heights" community event. The Commission also feels that they need to adhere to the policy recently established, making it consistent with all current and future requests in the use of Murzyn Hall during non scheduled hours. The Comnussion felt that if the fee was to be waived in it's entirety, it should be done so by the City Council. RECOMMENDED MOTION: Move to waive the normal rental fee of Murzyn Hall for the 1 ,t Annual "Taste of Columbia Heights" and follow the current pohcy by charging a $40.00 entry fee and $15.00 per hour staffing fee. ALTERNATE MOTION: Move to waive the normal rental fee of Murzyn Hall for the 1't Annual "Taste of Columbia Heights", the $40.00 enw/fee and the $15.00 per hour staffing fee. COUNCIL ACTION: COLUMBIA HEIGHTS - CITY COUNCIL LETTER Meeting of: February 5, 2001 AGENDA SECTION: NO: ITEM: Contribution Request - NO: Sister Cities Committee ORIGINATING DEPARTMENT: CITY MANAGER BY: Walt Fehst DATE: February 1, 2001 CITY MANAGER'S Dolores Strand has requested that the Council consider making a contribution to the Sister Cities Committee for three to four people considering attending the Annual Conference in Atlanta in July. Early registration is $3 15 per person. She is asking for a "contribution", expecting to pay their own airfare and food. I am not aware of any contributions made for these conferences in the past. This is their "10~'' year in existence. Recommendation: Consideration of request. COUNCIL ACTION: Co I~ v~ ~1/25/2~1 12~35 '4105592217 SCI Cofi~nce Schedule at a Glance · InternaUonal lltglonal Forums including US/Afiiea, US/China, US/Japan, US/Mexico, at~ U$~olamt. The~d~y-lm~ forums will involve participants from axound the world (Wednesday) · C~sk-un~nt wo~ksh,:~ which focus on pnctlcal infomtion for developing and strengthening sister city pro~ram-s at the grassroots level (Thursday- SatuRday) · State Meet~gs · S(3! ~p & Business Meetings · May~as ~ R~lxion · :~d'm 4Sd' Annivena~y · SCI Awards l..ur~lgon , Tot-A,, 200~ Meet and wnrlt with: · Ciuz,ms and city ma government oflfkials from acresin the country who are providing leadership and global engagements for their sister dry programs · Local program staff members · NewcBmen to Sister Cities International · Imema~onal sister city colleagues who wish to strengthen the ~ sister cities network · l~Rablishi~ tarmenhlps with schools, colleges, c~ m i~ in~maU~t b~cs · CIting ~a~{ s~tcr ci~ ~ whi~ · ~ost~ng ~e in yo~ m~ s~ a~ ptogr$ EVENT SOLUTIC~-4~ PAGE' SISTER CITIES INTERNATIONAL .' 25- 28, 20 ATLANTA, GEOR( YOUR COMMUNIq PASSPORT TO THE W Developing 2l.t Ce,11 sister city programs thl Parlnership, Innova~l and F~ccllenu ough On The SCI Annual Cont~:rencc opportuniD/ro learn from and t'~ hundm'cds of other dedicated s volunteers, elected ot}kials. p. alld international colic.tgues. is nvork with .$c¢r city f~:ssk)nals CITY COUNCIL LETTER Meeting of: 2/5/01 AGENDA SECTION: NO: ITEM: ARCHITECTURAL DESIGN GUIDELINES FOR CENTRAL AVENUE Background: ORIGINATING DEPARTMlgNT: PUBLIC WORKS CITY MANAGER The City Council previously awarded the fmal design services for Central Avenue Street and Utility Improvements to BRW at their February 28, 2000 regular meeting. The fmal design work as identified in the Engineering Study, includes utilities: water main, sanitary sewer and storm sewer; and street reconstruction winch includes center medians, concrete curb and gutter, pavement and sidewalks. On October 9, 2000, the Council awarded the final design of streetstaping to BRW. Analysis/Conclusions: Staff met with the Council at their August 7th work session to discuss preliminary alternatives for urban streetscaping. A public informational meeting was held September 20th, 2000 at Murzyn Hall with all fronting properties along Central Avenue invited. From the direction and input of these two meetings, the f'mal design of streetscaping was developed. The total estimated cost of the streetscaping is $760,000 with a total project cost in excess of 4.3 million dollars. At the public informational meeting, the issue of storefront mdevelopment and/or design guidelines was raised by the business community. In further support of revitalization along Central Avenue, the recently completed city-wide survey by Decision Resources reported that two of the major concerns of the community is 'redevelopmerit along Cen~'al Avenue,'t and 'rimdown/dirty conditions'2 of the downtown area. The Central Avenue Sa'eet, Utility and Streetscaping project will provide a large public investment for the redevelopment of the 'core' downtown area along Central Avenue. For this type of redevelopment to be cohesive and successful, the business community along this corridor should also have an opportunity for redevelopment. In support of the comments of the Central Avenue business community, the creation of a 'Design Guidelines' document is proposed by staff to guide private redevelopment. The proposed work scope is detailed on the attached proposal and is generally summarized by the following tasks: Initial Project Scoping, Inventory and Analysis, Community Preference Survey, Design Principles and Guidelines, Draft Ordinance, Review and Public Comment, and Final Ordinance Development. This work would not duplicate the efforts of the Downtown Master Plan, but provide the next step of detailed Arcintectural/Design controls for existing business owners. Funding sources for this work could be any one or a combination of the following: City Project 1999-12, CDBG funds, assessments to fronting business properties, or the undesignated fund balance. Recommended Motion: Consider the development of Architectural Design Guidelines for Central Avenue, from 37th to 42"a Avenues, and authorize the consulting firm of BRW to conduct the work as defined in their proposal dated February 1, 2001 at a cost not to exceed $28,500 with funding appropriated from 2000 Residential Survey, Decision Resources, PG 24. 2000 Residential Survey, Decision Resources, PG 60. Attachment: BRW proposal letter dated February 1,2001. COUNCIL ACTION: BRW, Inc. February 1, 2001 Mr. Kevin Hansen, PE Public Works Director\ City Engineer City of Columbia Heights 637 - 38t~ Avenue N.E. Columbia Heights, MN 55421 Scope of Work/Estimated Cost for Design Guidelines Central Avenue (TH 65) Improvement Project City Project No. 99-12 Dear Mr. Hansen: As requested, we have developed a preliminary scope of work and estimated cost for the development of Design Guidelines for the Central Avenue (TH 65) corridor. We understand that the Design Guidelines should include both sides of Central Avenue between 37m Avenue and 42nd Avenue and perhaps 40th Avenue from Central to University as well. It is likely that several districts will be identified during the preliminary inventory and analysis phase. These might include the Central Avenue core area from 391h to 41st, Central Avenue north and south of the core area and 40th Avenue from Quincy Street to University Avenue. The content of the guidelines may then vary by district. As discussed at our meeting on January 30, 2001, we have worked with a number of local communities to develop Design Guidelines to assist them with development/redevelopment issues. We have attached a copy of an article out of the January - February 2001 issue of Architecture Minnesota that discusses how the City of Wayzata has developed Design Guidelines to assist them with development/redevelopment along Lake Street in their community. The following is a summary of a preliminary scope of work and estimated cost for the development of the Design Guidelines. The scope of work and cost estimate have been prepared based upon our past experience with similar work for other communities. SCOPE OF WORK The following is a summary of a preliminary scope of work for the development of the Design Guidelines. Thresher Square 700 Third Street South Minneapolis, MN 55415 612.370.0700 Tel 612.370.1378 Fax BRW, Inc. Mr. Kevin Hansen February 1, 2001 Page 2 1. Project Scoping We would meet with City staff to review the work program and finalize the schedule. We would also review prior visioning efforts, discuss problems or shortcomings of past development and identify other issues that the project should address. Inventory and Analysis Define and document the "typology" of the built environment along Central and 40th Avenues. The typological examination will include street cross-sections, building setbacks, building dimensions, common architectural elements, street trees and landscaping, lighting and street furniture, signage, historic architecture and vehicular, pedestrian and bicycle facilities and movement patterns. We would illustrate these elements in photographs, sketches and descriptive text. We also suggest that we meet with the City Council and/or Planning and Zoning Commission at this time to get their assessment of problems or shortcomings of past development and their sense of buildings or sites that exemplify community character. Community Preference Survey Define visual preferences and community character. We propose a two-part process, using a focus group or task force composed of approximately 8 to 12 members of the City Council, EDA, Planning and Zoning Commission, business and neighborhood representatives and other interested citizens. The two parts would be as follows: Conduct a visual preference survey in which participants would rate the visual appeal of buildings and streetscape elements, using images from Columbia Heights and other communities. Score the results and discuss them with participants. While the results of this method are often largely predictable, subtle differences will emerge which help define the character of a particular community. The preferred images am then used to establish basic design principles, which are used in developing the Design Guidelines. BRW, Inc. Mr. Kevin Hansen February 1, 2001 Page 3 Design Principles and Guidelines Drawing on the results of the previous task, we would develop design principles: brief statements accompanied by sketches or photos illustrating the community preferences. These principles would focus on both the individual building, the development site and the surrounding neighborhood, and would likely include the following design elements: · Building scale and massing · Proportion (height to width; building height to street width) · Building materials and detailing; appropriate primary materials, accents and prohibited materials · Fenestration: pattern and rhythm of windows and doors · Signage · Site circulation and parking, balancing pedestrian and vehicle needs · Preservation of existing landscaping and introduction of new landscape material · Public spaces, including street furniture, lighting and streetscape elements · Tran.sitions between commercial and residential areas · Community entrances, gateways and focal points Draft Ordinance Language Prepare a draft of an ordinance in outline form, including statements of the basic principles and illustrations. Review draft language with staff, City Council and/or the Planning and Zoning Commission. Review and Revise Based upon the results of the previous task, refine the ordinance language into a final draft format. Present the draft ordinance, illustrations and results at a public meeting and receive public comments. Develop Final Ordinance Incorporate staff, City Council, Planning and Zoning Commission and public comments into final design standards ordinance. Present final ordinance to the City Council and/or the Planning and Zoning Commission. BRW, Inc. Mr. Kevin Hansen February 1, 2001 Page 4 ESTIMATED COSTS The following is a summary of the estimated costs for the services described above. Task Estimated Cost Project Scoping $ 2,000 Inventory and Analysis $ 7,000 Community Preference Survey $ 3,000 Design Principles & Guidelines $ 9,500 Draft Ordinance Language $ 2,500 Review and Revise $ 2,000 Develop Final Ordinance $ 2,000 Subtotal $ 28,000 Reimbursable Expenses $ 500 Approximate Total Cost $ 28,500 The estimated cost for the development of the Design Guidelines is, therefore, $28,500. This is iraended to be a preliminary cost only as the costs could vary with the further refinement of the scope of work. Facilitating the production of multiple copies of a final color booklet of the guidelines document would be an additional expense the City may wish to consider. Typically printing costs about $20.00 per booklet. We estimate that it would take between four to five months to complete the development of the Design Guidelines. The schedule would be dependent upon the City Council, Planning and Zoning Commission and public involvement processes used for the project. Two original copies of this proposal are enclosed. If the proposal is acceptable, please execute both copies on the signature blocks provided below and return one copy to us for our records. Please let me know if you have any questions or you need any additional information. Sincerely, BRW, Inc. Horn, PE BRW, Inc, Mr. Kevin Hansen February 1, 2001 Page 5 APPROVED BY: CITY OF COLUMBIA EIGHTS Name /~lalTle Title Title Signature Date Signature Date Copy: Bob Kost/BRW Kim Schaffer/BRW File 33910-004-1001 Endangered I Lake Street Downtown Wayzata BY ROBERT ROSCOE n the mid-1860s, the Saint Paul and Pacific Pailroad decided to build a raft bed several miles west of the Mississippi River I to transport lumber into the settlement of Saint Anthony. When the uackage neared a small inlet at the northeastern edge c~ a large lake, known today as Lake Mtnnetonka, the railroad operators saw scenic potenilal in the scalloped lakeshore. In August 1868, the railroad arrived in Wayzata, a small vii- ]age named for two American Indian words meaning *the mur- muring of pines" and 'god of the north.' The village quickly ex- panded into a wealthy resort town. Gigantic hotels, whose size and sumptuousness rivaled notable resorts in New England, at- nacted well-heeled tourists from the East Coast and Europe who disembarked at Wayzata's elegant Great Northern Depot. In the early 20th centuP/, those lakeshore hotels declined in popularity as highway travel disbursed tourists to Minneso- ta's tunher reaches. Wayzata had become, however, a pesma- nent summer colony for prominent Minneapolis dtizens, who built extensive yachting and golf facilities and large summer homes in the area. A string of shops along Wayzata's main thoroughfare, Lake Street, offered sailing equipment, sports supplies and other mer- chandise to summer residents and visitors. These wood-frame and brick-front buildings were 1- and 2-stories high, usually housed one or two businesses, and featured ornamental ~ouxish- es that were maintained through successive ownershiln for most of the 20th century. in the last decade, however, long-lime Lake Mlrmetonka resi- dents and frequent visitors have olnerved a disquieting change. Many of Wayzata's cute storefront shops have disappeared, re- placed by bigge comma mucmres. Not that the~e is anything wrong with that (to quote the television show 'Seinfeld') if such But these buildings are destroying the unique character of a re- tail district that took advantage of a markable natural setling. Today Wayzata is similar to many mlall towns throughout Ameri- ca thatused tobe distinctive phees to live, but are now changlng from 'Our Town" to 'Anyplace USA.' Some years ago, Wayzata govemmen~ leaders noticed devel- open were purchasing a number of small lots, tea~,ng down the existing sn'uclures, then combining the lots into one in order to build a larger stnicture. The practice occuned in the retail dis- trtct, as well as in residential neighborhoods. The City responded by enacting a lot-combination ordinance that recluires a formal review of applications for lot combinations. The City also created a compre_hensive guide to development, the Wayzata Design Guidelines, in coilabura~on with BRW, inc. Components of this plan--incorporated into Wayzata's wning code-guide land use, landscape standards and fadFade-design re- view, and defme_~assing, scale and building heights. The plan's overall goal is '~ maintain Wayzata's small-scale built envirorF ment while regulating new development. 'Its important to make Lake Street inviting for pedes~ans,' sap Sarah Smith, City planner, Wayzata. Thus, the plan requires that commesdal buildings dedicate 50 percent of the fi~ flour to retail space. ~In retrospect, it's a bit baffling that something so obvious as mandating retail space in sUeet-front development took a long lime to rigure out," says Bany Petit, pafaler, Meyer, Scherer & Rockcas~e Ltd., Minneapolis, and Mayor of Wayzata. 'But those of us who serve on the City's planning commission are volunteess, so the r~c~nse process is often longer.' With the guidelines, he adds, "we can set design standards that complement Lake Street's traditional storefronts.' in fact, all Continued on page ~8 JANUARY - FEBRUARY 2001 15 ImP nl · Consulting Engineers ERICKSEN ELMSON and Associates Inc. Electrical, Mechanical & Communication Design TEL(651)632-2300 FAX(651)632-2397 University of Minnesota, Duluth Library v~zww.ee. ,, ngineers,com r HONOR AWARD5 Sustainable-Design Focus Landscape Architecture Plus, A Directory of Landscape Architecture Firms For advertising information Call Judith Van Dyne 612/338-6763. endangered Continued from page 15 new construction and renovation projects must pass a City-mandated design review in order to obtain a buiJding permit. Pho- tographs that demonstrate appropriate materials, colors and details are included in the guidelines and "these visual expla- nations often work for us better than words," Petit says. For some shop owners on Lake Street, however, design criteria is less ol an issue than the ever-increasing rents. Steve Behling, proprietor of a sailing-equipment shop Iocated~n a small, tum-of-the-centu- zy stonffront on the east end of the down- town ~ district, says franchise stores On the west end of Lake Street drive up the rents, which smaller stores can't afford. Bob Ctamer, manager of a clothing store for 20 years, questions the long-term effect of retail-chain store~' on the town. "The independent-store merchants who live in the community know the needs and the pleasures of the people who live here," he says. "Do the cookie-cuttet chains know? Not really. These chains have been Fan of the American economic o/de, but people are staffing to get bored with the large malls. We need more hu- man stuff around here, like those weird coffee places college students set up." Currently, no conventional historic- preservation component advocates for, or mandates, the saving of wood-flame store- fronts like those in downtown Wayzata. No building can last forever. Structures built for less than monumental purposes have even shorter lifespans. However, as much as historic preservation's prindpal duty is to guard important structures of the past, its duty is not simply architectur- al taxidermy. Historic preservation's overarchlng put- pose is to set a preservation course for the f~ture. At the beginning of this eentun/, it's heartening to see WaTzata's civic lead- lines for new forms that can replace old ones wish sensitivity to scale and a sense of place. ~ 48 ARCHITECTURE MINNESOTA CITY COUNCIL LETTER Meeting of: 2/5/01 AGENDA SECTION: NO: ITEM: AUTHORIZATION TO BEGIN ROW ACQUISITION PROCESS FOR 39TM AVENUE ORIGINATING DEPARTMENT: PUBLIC WORKS DATE: Background: The City recently purchased the parcel of land north of 39t~ Avenue and east of 5m Street, owned by CP Rail. This purchase makes it possible for the tracks to be removed on 37ch Avenue, 38t~ Avenue, 39th Avenue, 5m Street and Jefferson Street, as well as in Huset Park. Analysis/Conclusions: Staff is preparing plans to construct curb and gutter as needed and construct/overlay the Municipal State Aid Streets in this area as a State-Aid project As part of the construction, MnDOT will require the City to realign the curve on 39m Avenue between 5t~ Street and Jefferson Street to comply with State Aid standards for horizontal curves. A map depicting this alignment is attached. A small area of right_of_way needs to be acquired from 550 39th Avenue for the new alignment of 39m Avenue. q/he area is shown on the attached plan. Recommended Motion: Move to authorize the City Attorney to begin land acquisition for roadway purposes to realign the horizontal curve to meet Municipal State Aid standards on 39th Avenue between 5~h Street and Jefferson Street. Attachments: Maps (2) COUNCIL ACTION: ELEV. 93.13 -- Ox ~0 ~'rn <~: :~ W ~:~_ I-- ~_, CITY COUNCIL LETTER Meeting of: 2/5/01 AGENDA SECTION:, NO: ITEM: RIGHT-OF-WAY ACQUISITION FOR CENTRAL AVENUE ORIGINATING DEPARTMENT: PUBLIC WORKS Background The City Council previously awarded the f'mal design services for Central Avenue Street and Utility Improvements to BRW at their February 28, 2000 regular meeting. The final design work as identified in the Engineering Study, includes utilities: water main, sanitary sewer and storm sewer; and street reconstruction which includes center medians, concrete curb and gutter, pavement and sidewalks. The initial estimated cost of the work was $850,000 for utilities and $1,745,000 for street improvements. On October 9, 2000, the Council awarded the final design of streetscaping to BRW with an estimated cost of $760,000. Analysis/Conclusions: Design work is completed for the street and utility plans and has been submitted to Mn/DOT State Aid for their Cooperative review process. The Right-of-Way office has commented that constructinn must be completed within fight-of-way limits and all permanent improvements must be within fight-of-way or permanent easements. Certain portions of the roadway currently exist outside of the fight-of-way (ROW). Additionally, certain segments of the sidewalk are not within easement fight-of-way. In order to execute the cooperative agreement with Mn/DOT, fight-of-way and permanent easements will have to be acquired. Mn/DOT will not allow the project to be awarded until all reviewing divisions have completed the plan review for their functional area. Of the eleven MnDOT divisions reviewing the plans, the fight-of-way issue(s) may have the potential of delaying the project. Public Works staff has instructed BRW to modify the plan sets in some areas (mainly streetscaping) to eliminate the need for easements, but in some areas this cannot be accomplished. The six properties listed below have been identified for fight-of-way and/or easement acquisitions: 2. 3. 4. 5. 6. Columbia Heights Mall/Transit Hub Columbia Park Clinic/Rapid Graphics Property Columbia Heights Business Center Burger King Mady's Bowling City park property south of Bobby and Steve's Additional services are required for plan modifications along with fight-of-way acquisition services including acquisition documents, legal descriptions and meetings or coordination with the City Attomey and landowners. Once the documents are prepared, we will work with the City Attomey to begin the negotiation process. The estimated cost from BRW to complete this portion of the work is $15,500. COUNCIL ACTION: CITY COUNCIL LETTER Meeting of: 2/5/01 AGENDA SECTION: CONSENT AGENDA NO: ITEM: RIGHT-OF-WAY ACQUISITION FOR CENTRAL AVENUE ORIGINATING DEPARTMENT: CITY MANAGER PUBLIC WORKS BY: K. Hansen BY: DATE: 1/31/01 DATE: Continued - Page 2 Right-of-way Acquisition for Central Avenue Recommended Motion: (1) Move to authorize the engineering consultant BRW to make plan amendments and fight-of- way/easement documents related to land acquisition for City Project 1999-12, at a cost not-to-exceed $15,500. (2) Authorize the City Attomey to begin land acquisition for roadway and sidewalk purposes as required by Mn/DOT for City Project 1999-12, Central Avenue Street, Utility and Streetscaping Improvements. KH.'jb Attachment: BRW proposal lelter Right-of-way/easement drawings COUNCIL ACTION: BRVV, Inc. January 31, 2001 Mr. Kevin Hunsen, PE Public Works Director\ City Engineer City of Columbia Heights 637 - 38th Avenue N.E. Columbia Heights, MN 55421 Proposal for Additional Final Design Services Central Avenue (TH 65) Improvement Project City Project No. 99-12 Dear Mr. Hunsen: The following supplemental proposal is offered for your consideration for additional final design phase services for the above-referenced project. The additional services have been specifically requested by City staff and are outside of the scope of work included in our January 10, 2000 proposal, our September 14, 2000 supplemental proposal for landscape design services and our December 12, 2000 supplemental proposal. SCOPE OF WORK URS/BRW will provide additional final design phase services related to Right of Way for the project as follows: URS/BRW has reviewed the plans to determine the Right of Way required for construction of the project. MnDOT is requiting that Right of Way be acquired for all areas where the construction limits are shown outside of existing Rights of Way or easements. We have analyzed the areas of encroachment with City staff and have reduced the areas where Right of Way or easements will be required. We will modify plan sheets in some areas to eliminate the need for Right of Way, however, in some areas this can not be accomplished. Right of Way and/or easement acquisition will be required for six properties. The plans are being revised for approximately thirteen other areas to avoid the need for acquisitions. Thresher Square 700 Third Street South Minneapolis, MN 55415 612.370.0700 Tel 612.370.1378 Fax BRW, Inc. Mr. Kevin Hansen January 31, 2001 Page 2 There are six properties requiring Right of Way and/or easement acquisitions for the project, including the City Park located south of Bobby and Steve's. The properties are identified below: 2. 3. 4. 5. 6. Columbia Heights Mall/Transit Hub Columbia Park Clinic/Rapid Graphics Property Columbia Heights Business Center Burger King Mady's Bowling City Park property south of Bobby and Steve's Additional services are required for the plan revisions, as well as for the Right of Way related services. The proposed Right of Way related services include preparation of Right of Way/easement documents and descriptions and exhibits. We anticipate that one meeting per property will be required either with City staff, the City Attorney and/or property owners. ESTIMATED COSTS BRW will perform these additional services on an hourly basis consistent with our original proposal and our Professional Services Agreement. The following is a summary of the estimated costs to complete the work tasks detailed above. Current Not-to-Exceed Amount Additional Services Revised Not-to-Exceed Amount $247,100.00 $ 15,500.00 $262,600.00 The total revised not-to-exceed cost for the design phase cost for this project is, therefore, $262,600.00 including the additional services detailed in this supplemental proposal. Consistent with our Professional Services Agreement, labor will be billed on an hourly basis using our Standard Rate Schedule and reimbursable expenses will be billed to the City at cost with no URSfBRW markup. We have included exhibits depicting the parcels that easements and/or Right of Way is required for the project for your review. Two original copies of this proposal are enclosed. If the proposal is acceptable, please execute both copies on the signature blocks provided below and return one copy to us for our records. BRW, Inc. Mr. Kevin Hansen January 31, 2001 Page 3 Please let me know if you have any questions or you need any additional information. Sincerely, BRW, Inc. APPROVED BY: C1TY OF COLUMBIA HEIGHTS Name Name Title Title Signature Signature Date Date Copy: Kevin Kielb/BRW Kim Schaffer/BRW File 33910-004-1001 39111 AV~NUr GOULD AVENUE '1 LOT 0ATE: Jon 31, 2( ~1 8:220m OISK FrLE NAME: (15.0) R:\33910\33910004\EASEM\CentEASE2,dwcJ ,l GOULD AV!:NUE I I 40"IH AVENUE -t- _< C/) m "o r'q I c, o m I I z m~. Z m comm I I F' r-- C) C 0 0 ~ --I -- -< Ic~ Z r- rq c~ u) Orq~' X 4.1ST AVENUE McCOMB GROUP, LTD. SHOPPING CENTER SERVICES 3001 Hem~epm Avenue South Suite 301B Minneapolis, Minnesota 55408 (612) 339-7000 CONTENTS Overview of Services ..................................................... I Client List ............................................................. 5 Retail and Shopping Center Market Analysis Experience Regional Shopping Centers .......................................... 6 Urban Shopping Center ........................... , ................. 8 Neighborhood and Community Shopping Centers ...................... 10 OVERVIEW OF SERVICES McComb Group, Ltd. provides specialized market and consumer research and marketing services for all types of shopping centers. Services range from market analysis and core customer identification, remerchandising and promotion assistance. Our objective is to develop a tenant mix and market position that, in conjunction with a functional and compatible design, will maximize the return on investment to the owners. The professionals at the McComb Group bring a merchandising approach to services for the shopping center industry. Major services include: Market Analysis. Shopping center sales potential, supportable square footage and rental rates are determined through analysis of such factors as the market area economy, trade area demographics and purchasing power, and shopping center competition. Financial Feasibility. Shopping center financial feasibility analysis is prepared taking into consideration development costs, rental revenues, tenant allowance operating expenses, property taxes and debt service. Proforma cash flow and income statements are prepared for a ten-year period. Shopping Center Valuation. Shopping center financial performance is evaluated to determine its value for investment and real property valuation purposes. This evaluation considers competition, past financial performance, anchor stores, tenant mix and future potential. Shopping center value can be segregated between real property, tangible and intangible personal property. Due Diligence Evaluation. McComb Group's personnel is skilled in due diligence evaluations for mortgage and investment purposes. Analytical tasks are based on client objectives and can include market analysis, financial evaluation, tenant performance review and other tasks. · Renovation and Repositioning. Shopping center tenant mix, retail sales and financial performance are evaluated taking into consideration trade area characteristics, competition and other factors to prepare renovation and remerchandising recommendations. Increased sales resulting from implementation of the renovation and remerchandising plan can also be estimated. · Marketing Services. Attracting desired tenants is critical to achieving opening occupancy, rent and sales objectives. A marketing program is required that first focuses on attracting key tenants and then markets the tenant mix to potential customers. McComb Group professionals assist in creating the tenant marketing program and related materials. In addition, they are available to assist with and provide direction for the pre-opening and ongoing marketing and promotional programs. All of the above services, either as a group or as individual engagements, are focused on assisting our clients to develop, acquire and tenant shopping centers that have a fashion orientation and merchandise mix that responds to the needs and desires of the target customer. SHOPPING CENTER SERVICES McComb Group, Ltd. market research services are based on years of experience and reflect an evolution of market research techniques that have led to successful shopping centers. Typical components of shopping center market research engagements are described below: · Site Evaluation The site for the proposed retail center is evaluated to determine its suitability for retail development. Factors studied include but are not limited to: access, ingress and egress, traffic counts, site configuration and size. · Trade Area Evaluation The trade area is defined for the proposed retail center. Demographics of the trade area are evaluated including population, households and income levels using the latest census data and updated estimates. The retail purchasing power available within the trade area is estimated by major merchandise category. Market Area Analysis The economy of the market area is analyzed and pertinent data presented to support projections for future retail potential. The economic analysis considers such factors as population, employment, retail sales, household incomes and other pertinent data. This analysis also addresses changes which have been occurring in the trade area including new housing, employment growth, office building construction and transportation improvements. · Consumer Research Consumer surveys are conducted to probe demographic and psychographic characteristics and current shopping habits and preferences of trade area residents. The primary intent of these surveys is to determine where customers now shop for merchandise and to identify the type of merchandise for which they are shopping. The survey instrument is desigued to elicit such information as shopp'mg habits and preferences, perceived needs for new and/or additional retail stores, retail expenditures, demographic data, lifestyle preferences and fanffiy incomes. Telephone or intercept surveys are conducted by trained professional interviewers. · Shopping Center Competition Retail facilities serving the market area of the shopp'mg center are inspected and evaluated to determine their competitiveness to the project. Principal competitors are rated for market dominance, tenant and merchandise mix, size, presentation and price orientation. Void Analysis A void analysis is conducted to determine market segments or merchandise categories that are void in the market area or under-represented by existing retail tenants in competing shopping centers. Core Customer Identification Core customers of existing or proposed shopping centers are defined using consumer research techniques. This analysis identifies core customer price point and fashion preferences, shopping habits, spending paRems, and lifestyle and demographic characteristics. This approach provides a unique composite of a shopping center's core customer and is invaluable in formulating a merchandise plan and tenant mix. Renovation and Remerchandising Shopping center sales performance, competitive position, tenant mix and rental income are evaluated. Consumer research can be used to identify the shopping center's core customer in terms of fashion and price point preferences, shopping, dinning and entertainment habits, lifestyle patterns and demographic characteristics. A remerchandising plan is developed that focuses on the shopping center's core customer. Increased retail sales and rents resulting from implementations of the renovation and remerchandising plan can be estimated. Tenant Mix A tenant mix is developed that focuses on the preferences of trade area shoppers, taking into consideration consumer demographics and psychographics, retail competition and market voids. The tenant mix is structured to represent the merchandise lines, price points and preset. ation standards needed to convey the desired image of the proposed shopping center. The objective is to develop a tenant mix and market position that will maximize customer traffic as well as sales and profit per square foot in the proposed project. Sales and Rent Potential Total shopping center sales potential and sales by type of tenants projected for the proposed development are estimated for future target years. Rental rates, rental income and tenant allowances are estimated based on retail sales potential. Financial Feasibility Analysis Shopping center financial feasibility analysis is conducted based on sales and rent estimates for the shopping center. Proforma financial feasibility analysis is conducted for the shopping center and can include the following components: a. Development Costs: The development costs for the shopping center are estimated including construction costs, soft costs and financing. Cash Flow: A cash flow proforma, including operating expenses and debt service, is developed for the center. The proforma is based on forecasted rental rates and absorption assumptions. c. Income Statement: A cash flow proforma is further developed into an after-tax income statement. The income statement re~ects the tax shelter implications ofthe development program where applicable. 3 Design Criteria and Review Shopping center design is evaluated for elements important to retail success. The tenant mix must interface with the shopping center design to provide store spaces that are consistent with the proposed tenant mix. Rental revenue is maxirnized to the extent that the tenant mix can be accommodated by store spaces with the proper location, size and adjacencies. Other design input includes the general retail environment such as entrances, circulation, vertical transportation, atrium, lighting and graphics. · Leasing Strategy Leasing sh~tegies can he developed and coordinated for the shopping center. This includes input on tenant prospecting and qualifying as well as negotiating leases with tenants acceptable to the landlord. Marketing Package A marketing package is developed to familiarize potential tenants with the proposed retail center and its surrounding trade area, highlighting specific data that would be of special interest to those tenants. The marketing package includes consumer information on market segrne~ts pertinent to individual retailers, strengths of the proposed center and opportunities for tenants locating in the proposed center. Center Promotion Assistance is provided in the development of the center's promotional program including advertising pre-opening and grand opening events, ongoing special events, sale events and packaging. The components of the shopping center research and marketing services are packaged to fit the unique needs of each engagement. These services are designed to analyze the existing or proposed shopping center to maximize the center's sales, rental income and financial performance. 4 CLIENT LIST CONSULTING CLIENTS The following is a representative list of clients served by the McComb Group. Aetna Real Estate Investments; Hartford, CT Alexander's Department Stores; New York, NY BCE Development Corporation; Minneapolis, MN Bechtel Investments, Inc.; San Francisco, CA Carlson Companies; Minneapolis, MN Century Development; Houston, TX Chemical Bank; New York, NY CIGNA Investments, Inc.; Hartford, CT Corporate Property Investors; New York, NY Dayton Hudson Corporation; Minneapolis, MN Dayton's Department Store; Minneapolis, MN Equitable Real Estate Company; Atlanta, GA General Growth Center Companies; Minneapolis, MN Goldman, Sachs & Company; New York, NY Hill Health Care; Oakland, CA Homar~ Development Company; Chicago, IL Hubbell Realty Company; Des Moines, IA LucasFilm Ltd.; San Francisco, CA MEPC American Properties; Dallas, TX Merrill-Lynch-Hubbard; New York, NY New England Development; Boston, MA New York State Employees' Retirement System; New York, NY Northern States Power Company; Minneapolis, MN Northwestern Mutual Life Insurance; Milwaukee, WI Northwestern National Bank; Minneapolis, MN Opus Corporation; Minneapolis, MN Palmer Group; Chicago, IL Prudential Real Estate; Minneapolis, MN Pyramid Companies; Syracuse, NY Radisson Hotel Corporation; Minneapolis, MN Richland Mall Associates; Johnstown, PA Rouse Company; Columbia, MD Salomon Brothers, Inc.; New York, NY Shearson-Lehmann; New York, NY Simon Property Group; Indianapolis, IN Skywalker Development Company; San Francisco, CA Trammell Crow Co.; Minneapolis, MN Trump Organization; New York, NY Twentieth Century Fox Real Estate Corp.; Los Angeles, CA Yarmouth Group; San Francisco, CA 5 RETAIL AND SHOPPING CENTER MARKET ANALYSIS EXPERIENCE REGIONAL MALLS Northpark Mall - Davenport, IA Equitable Real Estate Management Company Northpark Mall's customer base was evaluated to identify market opportunities to better serve trade area residents. A survey of 500 adults residing in the trade area was conducted. From survey information the target customer for Northpark Mall was identified and merchandise strategies were developed which would more adequately address the target customer shopping needs. Recommenda- tions for improving Northpark Mall's market share, including additional tents and merchandise lines to be added to the mix, were made. Eastridge Mar - San Jose, CA Yarmouth Group Consumer research and market analysis were conducted to identify the target customer and reposition this 1.5 million square foot regional mall. The shopping center, located in eastern San Jose, serves a multi-ethnic trade area consisting primarily of households with incomes above $50,000. Tasks included identifying the target customers' price point and fashion preferences, shopping habits, lifestyle patterns and demographic characteristics. This information was used to recommend a merchandising strategy and estimate sales increases associated with implementation of the strategy. Moreno Valley Mall - Moreno Valley, CA Homart Development Company Customer research was conducted to identify the core customer for this 1.2 million square foot regional mall planned for opening in 1992. Tasks included identifying the likely shopper for the proposed mall, the'tr price point and fashion preferences, shopping habits, lifestyle paRems and demographic characteristics. Greenwood Mall - Bowling Green, ICY Equitable Real Estate Management Company The purpose of this analysis was to evaluate Greenwood Mall's customer base and identify market opportunities to better serve trade area residents. Based upon a survey of S00 adults residing in the trade area, Greenwood Mall's primary customer was identified and merchandise strategies were developed which would more adequately address their shopping needs. Recommendations for improving Greenwood Mall's market share were prepared along with recommendations for additional tenants and merchandise lines to be added to the shopping center mix. Southdale Center - Edina, MN Equitable Real Estate Management Company Conducted market analysis to evaluate impact of renovation and expansion of this super-regional mall and competitive impact of Mall of America on Southdale sales. The center was expanded fxom 1,1 million to 1.4 million square feet including construction of a new Dayton's store. Work tasks included shopping ~mter evaluation, competitive evaluation, trade area analysis, sales estimates and customer base contributions of anchor stores. 6 Rosedale Center; Rosedale, MN Equitable Real Estate Management Company Market analysis was conducted to evaluate impact on retail sales resulting ~'om renovation and expansion of this super-regional mall and competitive impact of Mall of America. The center wE expanded from 1.0 million square feet to 1.2 million square feet including construction of a new Dayton's store. The existing Dayton's store was convened to mall shops. Work tasks included: competitive shopping center evaluation, trade area analysis, sales estimates and customer base contribution of anchor stores. Maplewood Mall; Maplewood, MN Corporate Property Investors ~L~u'ket analysis was conducted to evaluate retail sales impact of adding a new Dayton's department store to this 750,000 square foot regional mall. Work tasks included shopping center evaluation, competitive evaluation, trade area analysis and preparation of sales estimates for mall tenants and anchor stores assuming a new Dayton's store. In addition, analysis was conducted to identify tenants that would be attracted to Maplewood Mall as a result of adding a Dayton's as an anchor. Willowbrook Mall; Houston, TX Yarmouth Group Market analysis was conducted to determine competitive impact on Willowbrook Mall' s retail sales caused by a new super-regional mall opening in the northeast portion of Willowbrook' s trade area. W'dlowbrook is a super-regional mall with 1.4 million square feet anchored by Dillard's, Foley's, J.C. Penney, Macy' s, Sears and Ward' s. Sales transfer resulting from the new mall was estimated as well as future sales growth taking into consideration the new mall's competitive impact. Customer base contribution ofW'dlowbrook Mall's anchor stores was estimated. Barton Creek Square Mall; Austin TX Simon Property Group This 1.4 million square foot super regional mall, anchored by Dillard's, Foley's, Penney's, Sears and Ward' s was undergoing renovation and facing competition from a new super-regional mall being constructed in the northern portion of the trade area. Work tasks included shopping center evaluation, competitive evaluation, trade area analysis and estimating sales increase resulting from mall renovation and sales transfer caused by the new super-regional mall. Customer base contribution of each of the anchor stores was also calculated. Northshore Mall; Peabody, MA New England Development Financial analysis was conducted to determine impact of mall renovation and expansion on shopping center value. The completed mall contains over 1.6 million square feet and is anchored by Filene' s, Jordan Marsh, Lord & Taylor, Peuney's and Sears. Work tasks included financial evaluation of Northshore Mall, quanti~cation of renovation expenditures and benefits for anchor stores and quanti~cation of intangible asset value. Customer base contribution of anchor stores was also calculated. URBAN SHOPPING CENTERS Luminare-Houston; Houston, TX LucasFilm, Ltd. Market analysis was conducted for the proposed Luminaire-Houston, a joint venture between LucasFilms and Century Development. Lurninaire-Houston can be best described as a regional mall of dining and entertainraem with complementary retailing. Components include 119,000 square feet ofrestnHrants and nightdubs, a ten-screen cinema, proprietary LucasFilms attraction, 68,000 square feet of retail and a 7,500 square foot food court. 59th and Lexington; New York, NY Alexander Department Stores, Inc. A financial feasibility analysis was performed for a $300 million mixed-use development in midtown Manhattan. The engagement included conducting a sensitivity analysis of six alternative development concepts with six different uses (fashion store, specialty retail, office hotel, residential and parking) to determine the development alternatives and combination of ~ses that would maximize the investor's return on the development. Gaviidae Common-SaM Wing; Minneapolis, MN BCED Development, Inc. Retail market analysis was prepared for a high fashion specialty shopping center anchored by Saks Fifth Avenue in downtown Minneapohs. The study estimated retail sales and rent potential for 125,000 square feet of small tenant space constructed in conjunction with the 110,000 square foot anchor store. Rego Park; Queens, NY Trump Organization Market analysis was conducted for the proposed 900,000 square foot Rego Park Mall. The trade area was defined for the proposed center. Current competition was identified and evaluated to determine underdeveloped and void merchandise strategies in the market area. Demographics and purcba_~ing power of trade area residents were analyzed in the study. Findings of the study included sales potential and rental rates for the center. City Center; Minneapolis, MN Oxford Development, Inc. Market analysis was conducted for the retail portion of City Center, a mixed-use development in downtown Minneapolis. The proposed project included 175,000 square feet of small tenant space attached to a 275,000 square foot Donaldsons department store. The market analysis provided estimated retail sales and achievable minimum rents by major tenants. 8 North Pier Terminal; Chicago, IL Broadacre Development Company Market analysis and consumer research identified target customers and estimated retail sales potential for the Noah Pier retail center. This 180,000 square foot shopping center, located in the North Michigan Avenue shopping district, is targeted at upscute professional house-holds on the north side of Chicago. Water Street Pavilion; Flint, MI Flint Economic Development Agency A retail market analysis and consumer sun~ey were conducted for an existing specialty retail center · in downtown Flint, Michigan. A strategy was recommended for revitnliTation including any physical expansion and extensive remerchandising of the center. Town Square; St. Paul, MN Oxford Development, Inc. Market analysis was performed for the retail component in the Town Square mixed-use development located in downtown St. Paul. The research included identification of sources of retail sales and estimated minimum rent levels. A shopping center evaluation and customer analysis were performed for Town Square to analyze shopper composition, determine how well Town Square satisfies the needs of primary customer groups and formulate recommendations to correct problems and capitalize on opportunities identified in the study. Recommendations were made for changes in current tenant mix and square footage allocations, adjacencies, graphics, directories and lighting. Gaviidae Common-Neiman Marcus Wing; Minneapolis, MN BCED Development, Inc. Retail market analysis was conducted for the retail component of a major mixed-use development in downtown Minneapolis. The retail component is comprised of a high fashion shopping center anchored by Neiman Marcus. The study evaluated market support for a fashion specialty center in downtown Minneapolis and provided estimated market share and sales for the center. Calhoun Square; Minneapolis, MN Ray Harris Company Calhoun Square is a specialty shopping center in an urban commercial district at Hennepin Avenue and Lake Street in gmneapolis. The center integrates new construction and adaptive reuse of existing buildings. The project included retail market and financial feasibility analyses, including development packaging involvin8 tnx increment financing and an UDAG application. A ten-year operating cash flow was prepared in the study. Galtier Plaza; St. Paul, MN Chemical Bank Market analysis and consumer research were conducted to identify target customers and estimate retail sales potential for the retail portion of this mixed-use development. The retail center as developed was experiencing poor sales performance and high vacancy. The primary objectives of this engagement were to analyze the market, determine the target customer and provide estimates of sales and rent potential. 9 NEIGHBORHOOD AND COMMUNITY SHOPPING CENTERS Typical retail market analysis engagements for neighborhood and community shopping centers are described below. Southdale Square - Minneapolis, Minnesota Carlson Properties, Inc. A market analysis was performed to evaluate the effects of a proposed retenanting program for Southdale Square. A survey was conducted of shopping center customers. Tenant types, future sources of retail sales and purchasing power were provided in the study. Eagan Town Center - Eagan, Minnesota Federal Land Company Research was conducted to identify and evaluate the retail market potential for a 348,000 to 39~,000 square foot shopping cente~ in Fagan, a rapidly growing Twin Cities suburb. A proposed tenant mix, sources of retail sales, trade area population and demographic characteristics, resident purchasing power and potential sales were provided in the study. Maplewood Square - Rochester, Minnesota M.A. Mortenson Company A market analysis was conducted to identify the retail market potential for a 150,000 square foot shopping center adjacent to an existing 100,000 square foot Target store. This engagement included evaluating the trade area and determining the supportable GLA, rent and sales potential, and tenant mix. Zachary Square - Maple Grove, Minnesota Prudential Insurance Company Two consumer surveys were conducted to evaluate Zachary Square, a community shopping center in Maple Grove. An evaluation was conducted of the existing center and the study provided the trade area, shopper profile, awareness level of ZachanJ Square, purchasing power of residents. Power Center - Rosevale, Minnesota Northwestern Mutual Life Insurance Company Retail market analysis was performed for a 200,000 to 300,000 square foot power center at Highway 36 and Fairview Avenue in Roseville. The trade area was defined for the proposed center. Demographics and purchasing power of trade area residents were provided as well as sales potential and rental rates. Signal Hills Shopping Center - West St Paul, Minnesota Azure Properties Remerchandising market analysis and financial feasibility was conducted for Signal Hills Shopping Center. Tasks included shopping center evaluation, trade area analysis, preparation of rernerchandising and renovation plans, sales and rent estimates and financial feasibility for this 40-year old enclosed-mall. 10 Shopping Center - Eagan, Minnesota Tri-Land Partnership A retail market analysis was conducted for a proposed community shopping center at Lexington Avenue and Diffiey Road in Fagan, a rapidly growing suburb of St. Paul/Minneapolis. Retail market potential for the center was identified in terms of square footage and sales potential. Northwest Business Campus - Plymouth, Minnesota Prudential Insurance Company The nine-acre Northwest BuSiness Campus site was analyzed to identify retail development potential. The likely trade area was defined and a tenant mix was recommended that would maximize sales and rent potential. Minnesota Valley Mall - Shakopee, Minnesota Essex Corporation This community shopping center was anchored by a K mart, Super Value, Snyder Drug and True Value Hardware. A prelin~nary market analysis was performed for the proposed redevelopment of the 195,000 square foot Minnesota Valley Mall. Primary and secondary trade areas were defined for the shopping center. Demographic characteristics and purchasing power of the trade area residents were provided in the study. Power Center - Golden Valley, Minnesota MEPC American Properties, Inc. Conducted market analysis for a proposed power center to be located on a redevelopment parcel adjacent to a business park. Tasks included site evaluation, trade area analysis, competitive evaluation, preparation of sales and rent estimates, and recommendations for center size. Shopping Center - Williston, North Dakota A market analysis was performed for a major shopping center development in this regional focus for western North Dakota and eastern Montana. The engagement included identification of a trade area, projection of sales potential and supportable square feet of retail space, and determination of an appropriate tenant mix. Chicago and Lake - Minneapolis, Minnesota Ray Harris Company A retail market analysis was performed for a proposed shopping center development containing 65 stores and linked by skyway to an existing Sears department store in Minneapolis. This study included retail market analysis, competitive centers evaluation, estimated sales potential and a recommended tenant mix. 11