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HomeMy WebLinkAboutApril 9, 2007OFFICIAL PROCEEDINGS CITY OF COLUMBIA HEIGHTS CITY COUNCIL MEETING APRIL 9, 2007 The following are the minutes for the regular meeting of the City Council held at 7:12 p.m. on Monday, Apri19, 2007, immediately following the Board of Review, in the City Council Chambers, City Hall, 590 40th Avenue N.E., Columbia Heights, MN. CALL TO ORDER/ROLL CALL/INVOCATION Present: Mayor Peterson, Councilmember Williams, Councilmember Nawrocki, Councilmember Diehm, Councilmember Kelzenberg. Rev. Peter Law, Community United Methodist Church, gave the Invocation. PLEDGE OF ALLEGIANCE -recited ADDITIONS/DELETIONS TO MEETING AGENDA Nawrocki asked to add discussion of a letter from the Mayor dated February 27`h. Peterson placed this under Other Business. PROCLAMATIONS, PRESENTATIONS, RECOGNITIONS AND GUESTS Proclamations 1) 2007 Prayer Breakfast Mayor Peterson. read the 2007 Prayer Breakfast Proclamation, which will beheld on Wednesday, May 9, 2007. 2) Arbor Day Mayor Peterson read the 2007 Arbor Day Proclamation, Peterson stated that we are a Tree City USA; which we can be proud of. This proclamation will go to the City Forester. 3} Community United Methodist Church Centennial Mayor Peterson read the Community United Methodist Church Centennial Proclamation and stated his pride to present it to Pastor Peter Law. This was the first church in Columbia Heights. Peterson stated that he learned tonight that Pastor Law will retire this June after 42 years of service. He stated our pride to have had Pastor Law here for the years he served our community. Peterson presented Lay Leader Mary Tholkes with the Proclamation. Lay Leader Thoikes presented the City with the Community United Methodist Church History booklet. Pastor Law introduced his wife. He announced that on July I St Pastor Ruth Hograbe will be appointed Head Pastor. Introduction of New Employees l) Ramon Gomez -Library Clerk Becky Loader, Library Director, introduced Ramon Goinez, the new Library Clerk. She gave his background and stated that he worked for the Library for five year as a page. Gomez thanked the Council far the opportunity to work for the City. CONSENT AGENDA Walt Fehst, City Manager, took Councilmembers through the Consent Agenda items. Nawrocki requested to remove items 4, 5, 6, 7, and 8. 1 } Approve City Council Meeting Minutes for the March 26 2007 regzular City Council meeting Motion to approve the minutes of the March 26, 2007 regular City Council meeting as presented. City Council Minutes April 9, 2007 Page ? of 19 2) Accept Boards and Commissions Meeting Minutes a) Accept: Minutes of the February 27, 2007 Economic Development Authority meeting. b} Accept: Minutes of the Apri13, 2007 Planning and Zoning Commission meeting. 3} Approve City iyewsletter Printing Quotations for 2007-2008 Motion to enter into an agreement with Custom Business Forms for printing, publishing, and distributing the City newsletter based upon their proposal of $4,512.00 per issue for three publications in 2007 and four publications in 2008; and furthermore to authorize the Mayor and City Manager to enter into an agreement for the same. Nawrocki indicated that he took exception with the Council letter indicating this would be a significant improvement over the current newsletter. He indicated that Rapid Graphics has done a good job providing the newsletter for the city. 4) Adopt Resolution No. 2007-44 being a Resolution adopting the Anoka County Multi-3urisdictional Hazard Mitigation Plan -removed 5} Authorize to seek bids for the purchase of Penerators, including installation, for the Cit~pump house, Public Works building and Murzyn Hall -removed 6) Adopt Resolutions No. 2007-55 and 2007-56, being resolutions supporting application of the Non- Motorized Transportation Pro r~ am (NTP) for the replacement of the pedestrian bridge and mobility flan -removed 7) Approve change of the current procedure to dispose of appliances through Allied Waste/BFI Services -removed 8) Approve contract addendum to Bolton and Menk for en ing eerie inspection services -removed 9) Adopt Resolution No. 2007-57 approving a Conditional Use Permit for outdoor sales at 2261 37tH Avenue Motion to waive the reading of Resolution No. 2007-57, there being ample copies available to the public. Motion to adopt Resol_~.ztion No. 2007-57, approving a Conditional Use Permit for outdoor sales for Frattalone's Greenhouse, located at 2261 37th Avenue, subject to the conditions outlined in Resolution No. 2007-57. RESOLUTION NO. 2007-57 RESOLUTION APPROVING A CONDITIONAL USE PERMIT FOR FRATTALONE'S ACE HARDWARE WITHIN THE CITY OF COLUMBIA HEIGHTS, MINNESOTA WHEREAS, a proposal (Case #2607-0402} has been submitted by Frattalone's Ace Hardware to the City Council requesting a conditional use per!rtit from the City of Col>?mbia Heights at the following site: ADDRESS: 2261 - 37`" Avenue. LEGAL DESCRIPTION: On file at City Hall. THE APPLICANT SEEKS THE FOLLOWING PERMIT: A Canditional Use Permit per Cade Section 9.110 (E}(3)(gl, to allow outdoor sales or display. WHEREAS, the Planning Commission has held a public hearing as required by the city Zoning Code on Apri13, 2007; WHEREAS, the City Council has considered the advice and recommendations of the Planning Cammission regarding the effect of the proposed conditional use permit upon the health, safety, and welfare of the community and its Comprehensive Plan, as well as any coneems related to compatibility of uses, traffic, property values, light, air, danger of fire, and risk to public safety in the surrounding areas; and City Council Minutes April 9, ?007 Page 3 of 19 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Columbia Heights after reviewing the proposal, that the City Council accepts and adopts the following findings of the Planning Commission: 1. The use is one of the conditional uses listed for the zoning district in which the property is located, or is a substantially similar use as determined by the Zoning Administrator. 2. The use is in harmony with the general purpose and intent of the Comprehensive Plan. 3. The use will not impose hazards or distributing influences on neighboring properties. 4. The use will not substantially diminish the use of property in the immediate vicinity. 5. The use will be designed, constructed, operated and maintained in a manner that is compatible with the appearance of the existing or intended character of the surrounding area. 6. The use and property upon which the use is located are adequately served by essential public facilities and services. 7. Adequate measures have been or will be taken to minimize traffic congestion on the public streets and to provide for appropriate on-site circulation of traffic. 8. The use will not cause a negative cumulative effect, when considered in conjunction with the cumulative effect of other uses in the immediate vicinity. 9. The use complies with all other applicable regulations for the district in which it is located. FURTHER, BE IT RESOLVED, that the attached conditions shall become part of this permit and approval; and in granting this permit the city and the applicant agree that this permit shall become null and void if the project has not been completed within one (1) calendar-l ear after the approval date, subject to petition for renewal of the permit. CONDITIONS ATTACHED: 1. The outdoor storage shall be located as indicated on the site plan. 2. A $500 deposit shall be submitted to the Community Development Department prior to installation of the structures on the site. The deposit shall be refunded after the Conditional Use Permit expires and the site has been cleaned up. 10) Approve the items listed for rental housing license applications far April 9, 2007 Motion to approve the items listed for rental housing license applications for April 9, 2007. 11) Approve Business License Applications Motion to approve the items as listed on the business license agenda for Apri19, 2007 as presented. 12) Approve Payment of Bills Motion to approve payment of the bills out of the proper funds as listed in the attached check register covering Check Number 120938 through 121095 in the amount of $939,303.95. Motion by Nawrocki, second by Williams, to approve the Consent Agenda items, with the exception of items #,~, 5, ti, 7, and 8. Upon vote: All ayes. Motion carried. 4. Adopt Resolution No. 2007-44 being a Resolution ado tp ing_the Anoka County Multi-Jurisdictional Hazard Mitigation Plan Nawrocki questioned what a Hazard Mitigation Plan was and how it pertains to Columbia Heights. Fire Chief Gary Gorman stated this plan was mandated by the State of Minnesota for requirements of Homeland Security management. In August of 2005 we began assisting with this plan by providing community information. The County submitted the combined plan to the State and to FEMA. To make it official, each community must approve the plan by resolution. The public plan is 329 pages long and the non-public plan is 185 pages. Nawrocki asked what would happen if a major tornado came through our community. Gorman stated this plan shows things that have happened or co'ald happen, based on history, and what comm,,znities have dens to alleviate any foreseeable damage. Gorman referred to updates in the storm water systems and ponds in our community. Motion by Williams, second by Kelzenberg, to waive the reading of Resolution No. 2007-44, there being ample copies available to the public. Upon vote: All ayes. Motion carried. City Council Minutes April 9, 2007 Page 4 of I9 Motion. by Williams, second by Kelzenberg, to adopt Resolution No. 2007-44, being a resolution adopting the Anoka County Multi-Jurisdictional Hazard Mitigation Plan. Upon vote: All ayes. Motion carried. RESOLUTION N0.200'7-44 RESOLUTION TO ADOPT THE Al`IOKA COUNTY MULTI-JURISDICTIOI`I4L, HAZARD MITIGATION PLAN WHEREAS, the State of Minnesota has ordained that every county and incorporated municipality in the state is required to have a Hazard Mitigation Plan approved by the Minnesota Department of Homeland Security and Emergency Management, to maintain eligibility for state disaster assistance after November 2004; and WHEREAS, the Federal Emergency Management Administration (FEMA) under the Disaster Mitigation Act of 2000 has ordained that every county and incorporated municipality within the county is required to have a Hazard Mitigation Plan approved by FEMA in order to be eligible for Hazard Mitigation Grant Program Funding for Presidential disasters declared after November 2004; and WHEREAS, under the Disaster Mitigation Act of 2000, the Federal Emergency Management Agency (FEMA) has issued an Interim Final Rule that details the minimum criteria for local hazard mitigation plans; and WHEREAS, the City of Columbia Heights agrees with the concept of and necessity for hazard mitigation planning; and WHEREAS, The Anoka County Hazard Mitigation Planning Committee recommends the adoption of the Anoka County Multi-Jurisdictional Hazard Mitigation Plan and; WHEREAS, the Minnesota Department of Homeland Security and Emergency Management and the Federal Emergency Management Agency have conducted a review of and approved the Anoka County Multi-Jurisdictional Hazard Mitigation Plan; WHEREAS, the Anoka County Board of Commissioners formally adopted the Anoka County Multi-Jurisdictional Hazard Mitigation Plan on November 28, 2006; NOW THEREFORE, we, the City of Columbia Heights Council, hereby adopt the Anoka County Multi-Jurisdictional Hazard Mitigation Plan as submitted. Authorize to seek bids for the purchase of generators, including installation, for the Cit~pump house, Public Works building and Murzyn Hall. Nawrocki questioned the size of the existing Public Works generator. Steve Synowczynski, Shop Foreman, stated there is not a generator at the Public Works building. There is a 1972 portable unit. Fehst stated that two of the requested generators are budgeted, and one is not. We would save money by purchasing in volume. 1'he portable generator is too small to run Murzyn HaII, and there have been times when senior citizens have been in banns way in the building without power, so we are proposing a generator for there. Nawrocki asked what would happen to the current generator. Synowczynski stated that we had to rent generators to run the lift stations, and the portable unit would be saved for the lift station and Sullivan pond. Gorman indicated that this purchase is relative to the last resolution dealing with emergency management. In 2005 the entire city was without power for days due to a storm. The generator purchased in 2003 ran city hall. We want to be sure that we continue to provide city services in an emergency. Pvlurzyn Hall is a shelter for mature emergencies and electricity is necessary. He refe~~ed to the incident when senior citizens were kept in at Murzyn Hall with no lights or ventilation. It is our goal to obtain generators for the essential services. We can save a significant amaunt by purchasing three generators at one time. Xcel Energy has a program that during peak energy use that they request you go to generator power, and receive a savings on their bill. It could save about $1.0,200 a year in that situation. Synowczynski stated that the current generators can not run bath pumps at a lift station, whieh these would do. The current generators would be used as backups. Nawrocki questioned why the two City Counci] Minutes April 9, 2007 Page 5 of 19 current generators could not be used at Murzyn Hall. Synowczynski stated that the mobile generator will still be used at the lift stations. The current model was made in 1972 and is hard to get parts for. Synowczynski stated one generator is about $35,000 with installation. Gorman stated the Murzyn Hall generator would be the biggest and would cost about $60,000 to $62,000 installed. Nawrocki questioned where the funds would come from. Fehst stated that two were in the budget and the other would come from the General Fund balance and the energy discount program. Kelzenberg indicated the energy costs savings of using generator power when requested by the utility company. Gorman stated that the savings last year was $3,800. With all generators on the program the total would be over $10,000. Gorman stated that the Murzyn Hall generator would be a selling point, as there have been outages during weddings. Peterson stated that Murzyn Hall is our emergency shelter and a generator is necessary. Hopefully, the generator never needs to be started. Nawrocki stated that you will not be able to provide for every emergency. Motion by Diehm, second by Williams, to authorize staff to seek bids for the purchase of generators, including installation, for the City pump house, Public Works building and Murzyn Hall. Upon vote: All ayes. Motion carried. 6. Adopt Resolutions No 2007-55 and 2007-56 being resolutions supporting application of the Non- Motorized Transportation Program (NTP) for the replacement of the pedestrian bridge and mobility plan. Nawrocki questioned the purpose and what the NTP was. Kathy Young, Assistant City Engineer, stated this is a pilot program that is being tried in four metro areas nation wide. This funding is for our particular area. Nawrocki asked for more information on NTP. He stated funding would be far the pedestrian bridge or the trail program. Young indicated this would be a supplement to the federal request for pedestrian bridge funding. Nawrocki stated that the request was made to Senator Ellison. Fehst indicated the legislative process the request has passed through. Nawrocki questioned the funding requests. Young indicated this request is $3.8 million and the federal request is $2.8 million. Nawrocki stated that is was not an action of the Council; and that the pedestrian bridge belongs to MNDOT and should be their responsibility. Young stated that it is, but it is very low on their priority list. Fehst stated that the State has abandoned many of their responsibilities, such as along University Averi~te, Sv we are tijrlT'ig tC 1'ielp CiirseiVCS. ~~~c iilay hale tC CCme up vJitl'i SC1ne funds frCrt'i Cur State Aid account. He invited residents to view the bridge and indicated that handicapped persons must cross at the light, endangering their life. Students can not cross legally unless they go over the bridge. Nawrocki stated the impetus for the bridge was a child killed crossing against the light. Nawrocki stated it would be nice to have a new bridge, but indicated concern with increasing city debt. He listed current projects that would incur city indebtedness. Nawrocki questioned the trail way study cast. Young stated $23,000, with the $18,000 grant we are applying for and $5,000 from state aid maintenance funds. Nawrocki stated that we could hold off on these projects. if the bridge needs to be replaced, we sho1~ld talk to MNDot abo,.at replacing it, Fehst stated that we talked to theirs about this when the Design Teain was in Columbia Heights. Nawrocki requested a copy of their response. Williams stated this resolution was to support a request for funds. Motion by Williams, second Kelzenberg, to waive the reading of Resolution No. 2007-55, there being ample copies available to the public. Upon vote: All ayes. Motian carried. City Council Minutes April 9, 2007 Page 6 of 19 Motion by Williams, second by Kelzenberg, to adopt Resolution No. 2007-55 supporting request for infrastructure funding through the NTP grant program for the construction of a pedestrian. bridge over Central Avenue (TH 65) at 49th Avenue. Nawrocki questioned the need for these things. Upon vote: Kelzenberg, aye; Williams, aye; Diehm, aye; Nawrocki, nay; Peterson, aye. 4ayes - 1 nay. Motion carried. RESOLUTION NO. 2007-55 BEING A RESOLUTION REQUESTING CONSIDERATION OF INFRASTRUCTURE FL7NDING THROUGH THE NON-MOTORIZED TRANSPORTATION PILOT PROGRAM FOR THE CONSTRUCTION OF A PEDESTRIAN BRIDGE OVER CENTRAL AVENUE (T.H. 65) WHEREAS, the City of Columbia Heights desires to reconstruct the pedestrian bridge over T.H. 65, at 49`" Avenue NE; WHEREAS, the improvements will benefit both the City of Columbia Heights, surrounding communities and the Minnesota Department of Transportation; and WHEREAS, the City of Columbia Heights is committed to securing other federal, state, and local funding if the project is selected by Transit for Livable Communities as part of the Non-Motorized Transportation Pilot Program. NOW THEREFORE BE IT RESOLVED by the City Council of the City of Columbia Heights that the City shall be responsible for the preliminary engineering, project design, and permitting functions of said improvements; and BE IT FURTHER RESOLVED that the construction costs of the improvements not federally funded be shared between the Non-Motorized Transportation Program and the City of Columbia Heights. Motion by Williams, second by Kelzenberg, to waive the reading of Resolution No. 2007-56 there being ample copies available to the public. Steven Popa, 3812 Van Buren, indicated the need for a pedestrian bridge in the area of McDonalds ar there should be a crossing guard. Upon vote: All ayes. Motion carried. Motion by Williams, second by Kelzenberg, to adopt Resolution No. 2007-56 supporting request for planning funding through the NTP grant program for a bike and pedestrian mobility plan. Upon vote: Kelzenberg aye, Williams, aye; Diehm, aye; Nawrocki, nay; Peterson, aye. 4ayes - 1 nay. Motion carried. RESOLUTION NO. 2007-56 BEING A RESOLUTION REQUESTING CONSIDERATION OF PLANNING FUNDING THROUGH THE NON-MOTORIZED TRANSPORTATION PILOT PROGRAM FOR THE DEVELOPMENT OF A BIKE AND PEDESTRIAN MOBILITY PLAN WHEREAS, the City of Columbia Heights proposes to develop a comprehensive bike, trail and pedestrian plan; and WHEREAS, the plan. will benefit both the City of Columbia Heights and surrounding communities; and WHEREAS, the City of Columbia Heights is committed to providing the local share of the casts if the project is selected by Transit for Livable Communities as part of the Non-Motorized Transportation Pilot Program. NOW THEREFORE BE IT RESOLVED by the City Council of the City of Columbia Heights that the City shall be responsible for the development and eventual implementation of the Mobility Plan; and BE IT FURTHER RESOLVED that the costs of the planning study be shared between the Non-Motorized City Council Minutes April 9, 2007 Page 7 of l 9 Transportation Pilot Program and the City of Columbia Heights. 7. Approve change of the current procedure to dispose of appliances through Allied Waste/BFI Services Nawrocki questioned items from the waste hauler contract and rebates we recei~fed. Fehst stated that Jesse Davies was not available and he would research the answers. Nawrocki questioned the number of houses in violation of the number of appliances picked up. We have had an example of one property violating the intent of the program. If we feel people are violating the intent, why not go after the violators. Kelzenberg stated that with the contract we have, nothing is being violated. Fehst stated that in a six month survey the hauler determined 3,091 appliances were picked from only 7.5 percent of the users. The contractor, Allied Waste/BFI, had estimated they would collect approximately 845 appliances per year, so the amount is far above the anticipated number. They contract out appliance pick up. Fehst indicated the problem seems to be multiple housing units, with property owners bringing appliances in from outside the city for disposal. There is nothing to stop them from using our service. The contractor anticipates a loss of $75,000 in their contract. Fehst stated that we could do nothing and they could walk away from the contract, or drop white goods disposal as most stores include disposal with purchase and pay the $35 for each removal, or give residents one free appliance removal per year. Nawrocki indicated that we have not checked who is abusing the service. There are not a specific number of pickups in the contract. Fehst stated it was in the specifications. Nawrocki indicated that appliances have a market for the recycling of Freon and questioned if that is taken into account. The contract states the contractor shall do the investigation for the quantity of work to be performed and agreed to complete the work under any circumstances. We have a contract and they are trying to change it at the expense of our citizens. Fehst stated that citizens will pay more in the future if we don't work with our long time contractor. Fehst stated that currently there is no regulation to limit the number of appliance pick ups requested. Diehm stated that BFI came to us and explained the problem. We requested facts and figures, which they supplied. Of the 6,000 households they serviced only 7.5 percent that used this service. It seems unusual ±hat this percentage of households prod~.zced 3,091 applia_n_ces in six months, Diehm indicated that when an appliance is purchased from a retailer, disposal is included in the delivery. She stated concern that people buying appliances by other means still have a way to get rid of their old appliance. The work session discussion included allowing one removal per year. BFI wants us to administer the program, but that would be a burden to our staff. We would ask BFI to do so. The abuse is unfortunate, but this is an acceptable compromise. Motion by Diehm, second by Williams, to authorize change in the procedure to dispose of appliances through Allied Waste/BFI and establish one free appliance pickup a year per parcel and a fee based appliance disposal for all additional appliances (per year) in the current City of Columbia Heights refuse services. Jeman Stipes, indicated he works far Schwartzman Metal Recycling out of Anoka and they are now capable to work with cities on appliance removal. Fehst stated that Allied does contract out the removal. Upon vote: Kelzenberg, aye; Williams, aye; Diehm, aye; Nawrocki, nay; Peterson, aye. 4ayes - 1 nay. Motion carriedo City Council Minutes April 9, ?007 Page 8 of 19 8. Approve contract addendum to Bolton and Menk for en ing_ Bering inspection services. Nawrocki stated that an additional payment was just authorized to this company two months ago. ~'oung stated that it was indicated at that time an additional request for payment would be presented. Nawrocki questioned the high cost of the service. Fehst stated that in the future if we know there is that much work to be done, we should hire another person. Peterson suggested talking to the City Engineer to see if it is necessary to add another employee. Nawrocki suggested to take competitive bids if hiring a contractor. Motion by Diehm, second by Kelzenberg, to authorize Contract Addendum No. 1 to Bolton and Menk, Inc. for additional Engineering Inspection Services added by the City, in the amount of $10,694.50 with funding out of Huset Parkway, Phase II Development Agreement, State Aid and Engineering. Upon vote: Kelzenberg, aye; Williams, aye; Diehm, aye; Nawrocki, aye; Peterson, aye. Motion carried. PUBLIC HEARINGS A. Public Hearing -Adopt Resolution No. 2007-54, being a Resolution adopting a housing program with respect to a senior housing_project• gra~g~reliminarv approval for the issuance of multifamily housing revenue bonds to finance the project• and authorizing the reimbursement of expenditures made in anticipation of the issuance of such bonds. Fehst introduced John Utley, Kennedy and Graven, our bond attorney. John Utley indicated that Crestview Corporation has requested the City re-issue two series of revenue bonds, to refund outstanding bonds from 1998 and 2002 that financed and refinanced existing facilities and Crestview on 42°d. The new bond issue, if approved, would refund those outstanding bonds and also finance some improvements to the existing facilities. For the city to issue the bonds, the public hearing regarding the housing program is necessary and the adoption of a preliminary resolution. If approved, we will initiate documentation. When approved by each of the parties, it would come back to the City Council for final bond approval. It would then proceed to a closing and bonds ~~auld be iss~~ed. It is important to note tha± the proposed are revenue bonds, authorized under State Statute for a private non-profit party, There is no obligation to the City. If there is default or delay in payment, the City can not be asked to make up the deficiency. The quality of the bonds does not have any impact on the City's credit rating. The City is acting as an accommodation party to allow them to borrow at a tax exempt rate and deliver services at a lower cost. Nawrocki questioned the amount to refinance. Utley stated that the bond issue size for refunding is approximately $21.5 million and an additional $1 million of taxable bonds that can't be paid from tax exempt proceeds. Of the initial series approximately $17 million would be refunding, leaving about $3 million for improvements. Nawrocki questioned if they are current in principal and interest pay-inents. Utley stated it is not possible to borrow money if you are ira default. Navarocl~i questioned what the new money is far. Utley indicated that Shirley Barnes could answer that question. Nawrocki asked for the existing interest rate. Utley indicated he did not have that rate, but they expect a significant savings. Nawrocki questioned haw this could be justified to the citizens. Utley indicated that the expectation of cost savings would be passed on with greater services or reduced costs to citizens. Nawrocki questioned if we should do this for other senior prajects, such as tl~e one proposed on 37th Avenue. Diehm stated that they are for profit groups and do not meet this City Council Minutes Apri] 9, 2007 Page 9 of 19 definition. Utley stated this resolution is to gauge the Council's interest in proceeding. Kelzenberg stated he would like to know the difference in the interest rates before the final resolution is approved. Dielun stated her understanding that this is to express our interest to move forward and additional details will be worked out in the process. Utley indicated that the Council is not bound to approve the second resolution. Shirley Barnes, Crestview Senior Communities CEO, described that there is a bond council, underwriters council and borrowers council. We can get Countil the difference in the interest rate. A lot ofnon-profits refinance. In our care center we service 70 percent of residents who are on Medicade. It is the only skilled nursing facility in this community. We are fortunate to have this here since 1952. In our assisted living, we were one of the first in Anoka County to provide this care to low income. In Royce Place assisted living one-third of the people are served through county programs. At Crestview on 42nd Avenue one-fourth are served by the elderly waiver care system. We are always up to date on our payments. This will assist us to service all with economic need. Nawrocki asked how many other similar facilities are there in the metro area. Barnes stated that in Minnesota there are only six private homes, the rest accept aid. Motion by Diehm, second by Williams, to close the public hearing and waive the reading of Resolution No. 2007-54, there being ample copies available to the public. A resident requested placement of a speed sign. Peterson suggested that request be brought to the Traffic Commission. Upon vote: All ayes. Motion carried. Motion by Diehm, second by Williams, to adopt Resolution No. 2007-54, being a Resolution adopting a housing program with respect to a senior housing project; granting preliminary approval for the issuance of multifamily housing revenue bonds to finance the project; and authorizing the reimbursement of expenditures made in anticipation of the issuance of such bonds. Upon vote: A11 ayes. Motion carried. (Resolution 2007-54 can be found at the end of the document., B. Second reading_ Adopt Ordinance 1522 Zoning Amendment to the Zoning Code as it relates to Seasonal Outdoor Sales. Jeff Sargent, City Planner, referred to questions at the first reading regarding what governs current uses. He requested to remove this ordinance and rework it to tighten the requirements. Peterson withdrew the ordinance request. Nawrocki stated it makes sense to get away from this repeated paper work every year and it would be good to look closer at fireworks sale facilities. Diehm thanked hi~n far the additional consideration of this item. C. First readin~° Ordinance 1523 Zoning Amendment to the Zoning Code as it relates to Temporary Signs• City Council Minutes April 9, 2007 Page l 0 of i 9 Sargent stated that this is to improve the intent of the temporary sign zoning ordinance and design guidelines. There are four areas lacking in the current code 1) location, 2) number of signs and duration of placement, and 4) portable signage. Sargent described each item, indicated the proposed ordinance, and the reason for the recommendation. This would not allow temporary signs to be used for permanent signage. The foil ordinance changes are listed in the Council's packet. Nawrocki asked if we are doing anything about permanent signs. Sargent indicated the code covers the size, etc. and the Design Guidelines cover signs on Central and University Avenues. He indicated the difference in permanent and temporary signs. A record is kept of permanent signs. There are restrictions for the amount of permanent signage allowed and this would restrict the temporary signage. Nawrocki referred to the donut shop truck in their parking lot for advertising. Sargent stated that is a commercial vehicle on commercial property and there is not much we can do about it. Nawrocki asked if anyone could put such a vehicle on their property. Sargent stated yes, if it is legally parked there is nothing we can do. He stated that this ordinance does not go far enough. Nawrocki questioned the exclusion of election and real estate signs. Sargent stated the code lists signs that are eliminated and that remains unchanged. Nawrocki questioned signs off the premises. Sargent stated those would be affected by other areas of the code and are based on the situation. Nawrocki questioned how a shopping center could be limited to four signs. Sargent stated he would keep a list and deny the request if there were more than four temporary signs. Nawrocki asked what area is considered the CDB. Sargent described the area. Nawrocki questioned if a sandwich board sign has two sides or four. Sargent stated they are described as having two sides. Nawrocki questioned why sandwich boards are allowed on sidewalks only. Sargent indicated that the way the CBD is designed to have a zero set back it would be allowed so as not to exclude them, as long as they do not interfere with safety or pedestrian travel.. Nawrocki stated this ordinance is a good start, and our liquor stores should be included. Kelzenberg questioned if the Planner had conversations with any business owners on this. Sargent stated no, not at this point. Kelzenberg stated he received a call from Jeff Bahe. Sargent indicated he has not spoken to him on this matter. Mohan by Kelzenberg to table Ordinance 1523 for the time being. Diehm suggested that like the last ordinance, the first reading could be completed with discussion and the decision made to table at the second reading. Kelzenberg agreed, but asked the City Planner to contact Jeff Bahe on this matter. Sargent stated this was discussed at two Planning Commission meetings and was advertised as required. This is the first of two reading and there is 30 day period for petition before passage of an ordinance. Kelzenberg withdrew the motion. Peterson suggested setting the second reading for one month from now, to allow time for b~asznesses to bring up any concerns. Mahon by Nawrocki, second by Diehm, to close the public hearing and waive the reading of Ordinance No. 1523, being ample copies available to the public. Upon vote: All ayes. Mohan carried. atian by Nawrocki to set the second reading of Ordinance No. 1523 for Monday, April 23, 2007, at approximately 7:00 p.m. in the City Cauncil Chambers. City Council Minutes April 9, 2007 Page 11 of 19 Diehm suggested a friendly amendment to hold the second reading of the ordinance at the first meeting in May. Peterson called for a second. Diehm seconded the motion for purpose of discussion. Diehm stated the hearing can be scheduled and tabled at that meeting, if necessary. Upon vote: Kelzenberg, aye; Williams, abstain; Diehm, aye; Nawrocki, aye; Peterson, aye. 4ayes - 1 abstention. Motion carried. D. First reading: Ordinance 1524 Zoning Amendment to the Zoning Code as it relates to Parking Stall Len hs. Sargent stated this ordinance is to better implement the goals of our comprehensive plan. Reducing parking stall length would provide better flexibility in site design, while helping to potentially reduce hard surfaces and provide better on-site traffic circulation. He listed examples of past situations. Sargent referred to surveying other first-ring suburbs, as well as Minneapolis and St. Paul. Nawrocki questioned if this would cause snow removal problems. Sargent indicated the hope that the owner would remove snow in a sufficient manner. Nawrocki clarified that if parking is nose to nose, the spaces must be 20 feet. Motion by Williams, second by Kelzenberg, to close the public hearing and waive the reading of Ordinance No. 1524, being ample copies available to the public. Upon vote: All ayes. Motion carried. Motion by Williams, second by Kelzenberg, to set the second reading of Ordinance No. 1524 for Monday, Apri123, 2007, at approximately 7:00 p.m. in the City Council Chambers. Upon vote: All ayes. Motion carried. E. Adopt Resolution No. 2007-53 being a resolution for abatement of violations at 4656-4658 Polk St. Gorman indicated this property was addressed three times for an unlocked, unoccupied lower area in February. Finally, we had the door boarded up. This resolution would approve the iiilu~Tr'iedlate ai3atcrl'iciit tfi secure tl'iC property. Gorman stated this is not a licensing issue, rather an immediate abatement charge. Residents will not be removed from the property. Motion by Diehm, second by Williams, to close the public hearing and waive the reading of Resolution No. 2007-53, there being ample copies available to the public. Upon vote: All ayes. Motion carried. Motion by Diehm, second by Williams, to adopt Resolution No. 2007-53, a resolution of the City Council of the City of Columbia Heights declaring the property at 4656-4658 Polk Street N.E. a nuisance and approving the abatement of violations from the property putsuar~t to City Code section 8.206. Upon vote: A11 ayes. Motion carried. RESOLUTION 2007-53 Resolution of the City Council far the City of Columbia Heights declaring the property a nuisance and approving abatement of ordinance violations pursuant to Chapter 8, Article II, of City Code, of the property owned by Va-Megn Thaj (Hereinafter "Owner of Record"). City Council Minutes April 9, 2007 Page i 2 of 19 Whereas, the owner of record is the legal owner of the real property located at 4656-4658 Polk Street N.E., Columbia Heights, Minnesota. And whereas, pursuant to Columbia Heights Code, Chapter 8, Article II, Section 8.206, written notice setting forth the causes and reasons for the proposed council action contained herein was sent via regular mail to the owner of record on March 19, 2007. Now, therefore, in accordance with the foregoing, and all ordinances and regulations of the City of Columbia Heights, the City Council of the City of Columbia Heights Makes the following: FINDINGS OF FACT 1. On March 1, 2007 the Fire Department was called to 4656-465$ Polk Street N.E. after receiving information that one of the units was unsecured. The Fire Department notified the City's chosen contractor and requested that they board the entrance to the unit to secure it. 2. That based upon said records of the Fire Department, the following conditions and violations of City Codes(s) were found to exist and have been abated, to wit: Secured the units on building to prevent unauthorized access. 3. That all parties, including the owner of record and any occupants or tenants, have been given the appropriate notice of this hearing according to the provisions of the City Code Section 8.206(A) and 8.206(8). CONCLUSIONS OF COUNCIL 1. That the property located at 4656-4658 Polk Street N.E. is in violation of the provisions of the Columbia Heights City Code as set forth in the Notice of Abatement. 2. That all relevant parties and parties in interest have been duly served notice of this hearing, and any other hearings relevant to the abatement of violations on the property listed above. 3. That all applicable rights and periods of appeal as relating to the owner of record, occupant, or tenant, as the case may be, have expired, or such rights have been exercised and completed. ORDER OF COUNCIL 1. The property located at 4656-4658 Polk Street N.E. constitutes a nuisance pursuant to City Code. 2. That a copy of this order shall be served upon all relevant parties and parties in interest. ITEMS FOR CONSIDERATION Other Business Peterson read the letter he wrote to Councilmembers on February 27, 2007 that Councilmember Nawrocki wished to discuss. The letter referred to a meeting discussion that was terminated and a member's comment to be more vociferous in future meetings. He stated that such actions shall not be tolerated and indicated that the letter was addressed to the entire Council, including himself. iawrocki stated that he did not have a dictionary with him, but .~~eant to say l~.e F,~/ill be active in pursuing his righ± to address matters in the meeting. The discussion was for expendihires of over $1 million and the question was called because he talked for 17 minutes. For that amount of money, that is not talking too long. Nawrocki read an unsigned email that was attached to the letter regarding impeaclunent of a councilmember. At the last meeting members spoke of not giving consideration to unsigned communications, but he would like to know where it comes from. He asked for that person to give him a call to discuss it. There is a provision in the City Charter whereby five registered voters can establish a committee for a recall petition. He stated that to the best of his ability he has items discussed publicly. Williams stated that he called for the question on that issue, as the item was only to call for a public hearing date, and felt he the discussion was irifonr~ation meant for the public hearing. 17 minutes to set the date for the public hearing was unreasonable. If every person on the council did that, we would be here unti14:00 a.m. Peterson stated the email referred to was signed and he did respond to the person. Nawrocki stated that his discussion was not to set the hearing, but what was proposed at the hearing, City Council Minutes April 9, ?007 Page 13 of 19 what kind of work, and who would be affected. ADMINISTRATIVE REPORTS Report of the City Manager • Work session -Monday, April 16, from 5:30 to 7:00 p.m. with a YMCA presentation to possibly work with the city on a community center and a possible report on the liquor store. • Last week the Recreation Department held a youth fishing program, in conjunction with Rick Johnson of SAGA who is also a pro fisherman, and he brought in other professionals. Heard opinions that the program was exceptional. Passed on his thanks to Rick Johnson and our staff for this program. Children received a fishing pole and tackle box. Gander Mountain donated prizes. A program similar to this will be held during the Jamboree, with possible casting lessons in our wading pool. • Apri126`h is the ground breaking for Comforts of Home. • We are working to improve our high grass and weed program. The Fire Department will be out four days a week, for one hour each time taking down addresses and leaving notices. This will result in more up to date information and follow through of violations. Reminded those on Central Avenue to clean their areas. Pleased that the Fire Chief has stepped up to take over this responsibility. • The Taste of Heights event will beheld this Sunday, with five local businesses serving food. Nawrocki • After the last snow storm the snow was not shoveled at 4752 5th Street. Fehst stated this was referred to the Fire Department. There was no follow up, as the snow was not removed. • 51 S` and University -there are two more cars without current license plates. Fehst stated that they were advised, bz-ct is not sure if these are different vehicles. • Asked again about the Recreation Department using the Hilltop bowling alley rather than Mathes. Fehst stated that Mathes has been used in the past. Questioned if the Hilltop alley was low bid. • 4241, 4255 and 4301 3th Street have front porches that look terrible and need to be addressed. • Regarding liquor store bonds -would like to meet or have a telephone conversation with our consultant on how they figure the interest rate on the bands. It looks like we are trying to stay away from areferendum/vote of the citizens. • 4600 black of Washington Street -there is debris in the street. Feist indicated that the property is being dealt with and has until next week to comply. We try to work with oz~~r citi:~ens. • Comprehensive Plan was discussed at the work session; thought it would come before Council for approval. Apparently not. Want to see more coverage of the bid advertisement than just four companies. Feist stated it would be advertised in the League t~'ulieiin. • The City of Fridley has citizen meetings regarding their Co~nprehenshve Plan. Would like to see us do this. Fridley hs requiring 1,000 moderate income houses. What is required of us? Feist stated that the 1,000 a~mits were required of Blaine. It is suggested that all cities have affordable housing. • Metro meeting weekly notice referred to our involvement with the Hilltop interceptor. What was our involvement? Feist stated he waa.lld research this. City Council Minutes April 9, 2007 Page 14 of 19 • Requested the status to discuss him with the State Auditor. Fehst indicated that he has the right to report someone if he so chooses. If charging me, I have the right to know what it is. Peterson stated this discussion is out of order and requested a more conversational tone. If talking to the State, it should include the disrespectful way the Manager and Mayor speak to him and there should be follow-up to see if there was a problem with the Nedegaard conflict and with the City Attorney on the Sarno land deal. • Update on Central Avenue TIF district extension. Fehst stated this is being considef•ed by the House and the Senate. Bob Streetar, Community Development Director, listed all the hearings and action that has taken place, and stated his anticipation that the bill would pass. Report of the City Attorney -nothing to report. CITIZENS FORUM None COUNCIL CORNER Mayor Peterson dispensed with Council Corner, due to the lateness of the hour. ADJOURNMENT Mayor Peterson adjourned the meeting at 9:52 p.m. ~~~"`~ Patricia Muscovitz CMC Deputy City Clerk/Council Secretary CITY OF COLUMBIA HEIGHTS, MEVNESOTA RESOLUTION N0.2007-54 ADOPTING A HOUSING PROGRAM WITH RESPECT TO A SENIOR HOUSING PROJECT; GRANTING PRELIMINARY APPROVAL FOR THE ISSUANCE OF MULTIFAMILY HOUSING REVENUE BONDS TO FINANCE THE PROJECT; AND AUTHORIZING THE REIMBURSEMENT OF EXPENDITURES MADE IN ANTICIPATION OF THE ISSUANCE OF SUCH BfiNDS Section 1. Recitals. 1.01. Pursuant to Minnesota Statutes, Chapter 462C, as amended (the "Act"), the City is authorized and empowered to develop and administer programs to finance multifamily housing developments within its boundaries. The Act authorizes the City to issue bands and loan the proceeds to a borrower to finance multifamily housing developments. Each loan must be made for the construction or the long-term financing of a multifamily housing development and substantially all of the proceeds of each loan must be used to pay the cost of a multifamily housing development, including property functionally related and subordinate to it. A multifamily housing development may consist of a combination of a multifamily housing development and a new or existing health care facility, as defined in Minnesota Statutes, Section 469.153, if the following conditions are satisfied: (i) the multifamily housing development is designed and intended to be used for rental occupancy; (ii} the multifamily housing development is designed and intended to be used primarily by elderly or physically handicapped persons; and (iii} nursing, medical, peg°sonai care, and oti~er healtl-i related assisted living services are available on a 24-hour basis in the development to the residents. I.02. On August I8, 19$7, the City issued its Health Care Facility Revenue Bonds (Crest View Lutheran Home Project), Series 1987 (the "Series 1987 Bands"}, in the original aggregate principal amount of $4,400,000, for the benefit of Crest View Corporation, a Minnesota nonprofit corporation (the "Corporation"}, formerly known as Crest View Lutheran Home, for the purpose of financing the reconstruction, improvement, rehabilitation and equipping, including the construction of a building addition to Crest View Horne, a 122-unit Licensed nursing facility located at 4444 Reservoir $oulevard N.E. in the City ("Crest View Home"), including the discharge and refinancing of certain outstanding indebtedness of Crest View Lutheran Home incun-ed therefor. City Council Minutes Apri19, 2007 Page 15 of 19 On May 19, 1991, the City issued its Board and Care Facility Revenue Bands (FHA Insured Mortgage Loan -Royce Place Project}, Series 1991A (the "Series 1991A Bonds"), in the original aggregate principal amount of $2,770,000, and its Board and Care Facility Revenue Bonds (Royce Place Project), Series 1991B (the "Series 1991B Bonds"), in the original aggregate principal amount of $560,000. The Series 1991A Bonds and the Series 1991B Bonds (collectively, the "Series 1991 Bonds") were issued to provide funds to the Corporation to finance the costs of the acquisition, construction, and equipping of Royce Place, a 50-unit board and care facility located at 1 ~ 15 44th Avenue N.E. in the City ("Royce Place"). On March 31, 1998, the City issued its Multifamily and Health Care Facilities Revenue Bonds (Crest View Project), Series 1998 (the "Series 1998 Bonds"), in the original aggregate principal amount of $10,130,000. The Series 1998 Bonds were issued to defease the Series 1987 Bonds and the Series 1991 Bonds, to redeem certain other outstanding indebtedness of the Corporation, and to finance certain improvements to the existing facilities of the Corporation. On January 24, 2002, the City issued its: (i} Multifamily Housing Revenue Bonds (GNMA Collateralized Mortgage Loan - Crest View ONDC I Project), Series 2002A-1 in the original aggregate principal amount of $5,000,000 (the "Series 2002A-1 Bonds"), (ii) Multifamily Housing Revenue Bonds (GNMA Collateralized Mortgage Loan -Crest View ONDC I Project), Taxable Series 2002A-2 in the original aggregate principal amount of $110,000 (the "Series 2002A-2 Bonds" and, collectively with the Series 2002A-1 Bonds, the "Series 2002 Bonds"); and (iii) Multifamily Housing Revenue Note (Crest View ONDC I Project), Subordinate Series 2002B (the "Series 2002 Note"), in the original aggregate principal amount of $200,000. The Series 2002 Bonds and the Series 2002 Note (collectively, the "Series 2002 Obligations") were issued to finance the acquisition, development, construction, and equipping by Crest View ONDC I, a Minnesota nonprofit corporation ("Crest View ONDC I"), of Crest View on 42nd, a SO-unit multifamily housing assisted-living and memory-loss facility for seniors located at 900 - 42nd Avenue N.E., in the City ("Crest View on 42nd"). 1.03. Crest View on 42nd is currently owned and operated by Crest View ONDC I and is expected to be transferred to the Corporation in connection with the issuance of the proposed revenue refunding bonds referred to in Section 1.04. 1.04. The Borrower has requested that the City issue its: (i) Multifamily and Health Care Facilities Revenue Refunding Bonds (Crest View Project), Series 2007A (the "Series 2007A Bonds"), in the approximate aggregate principal amount of $21,500,000; and (ii) Taxable Multifamily and Health Care Facilities Revenue Refunding Bonds (Crest View Project), Series 2007B (the "Series 2007B Bonds"), in the approximate aggregate principal amount of $1,000,000 (the Series 2007A Bonds, and the Series 2007B Bonds are hereinafter referred to collectively as the "Series 2007 Bonds"). The proceeds of the Series 2007 Bonds will be applied to (i) refund the outstanding principal amount of the Series 1998 Bonds and the Series 2002 Obligations, and pay or prepay certain other indebtedness of the Borrower; (ii) finance capital improvements (the "Improvements") to certain facilities owned by the Borrower, including Royce Place, The Boulevard, a 74-unit senior housing facility located at 4458 Reservoir Boulevard N.E. in the City ("The Boulevard"), Crest View Home; and Crest View on 42nd (collectively, the "Facilities"); (iii) fund one or more reserve funds; and (iv) pay the costs of issuing the Bonds. 1.05. The Series 2007 Bonds are proposed to be issued as obligations the interest on which is not includable in gross income for federal income tax purposes pursuant to Section 145 of the Internal. Revenue Code of 1986, as amended (the "Code"}. Pursuant to Section 147(f) of the Code, and the regulations promulgated thereunder, the City is required to conduct a public hearing on the issuance of the Series 2007 Bonds. A notice of such public hearing, prepared in accordance with the requirements of Section 147(:} of the Code, and the regulations promulgated thereunder, was published in a newspaper of general circulation in the City at least fifteen (15) days prior to the date of the public hearing. 1.06. Prior to consideration of this resolution, the City Council of the City will conduct a public hearing on the date hereof with respect to the proposal to issue the Series 2007 Bonds, as requested by the Corporation. Section 2. Housing Program. 2.01 The City has prepared a housing program (the "Housing Program" or "Program"), a copy of which is attached hereto as EXHIBIT A, providing for the (i) refunding of the outstanding principal amount of the Series 1998 Bonds and the Series 2002 Obligations, and the payment or prepayment of certain other indebtedness of the Corporation; (ii) financing of capital improvements to the Facilities; (iii) funding of one or more reserve funds; and (iv) paying the costs of issuing the Bonds. 2.02 The City has arranged far publication of a notice of public hearing on the Program, all in corifar-~nance with the requirements of the Act. 2.03 The Housing Program was prepared and submitted to the Metropolitan Council for its review on March 22, 2007. The preparation of the Housing Program and the submission of the Housing Program to the Metropolitan Council are hereby ratified, confirmed, and approved, with such amendments as are approved by the City Manager. Section 3. Reimbursement City Council Minutes Apri19, 2007 Page 16 of 19 3.01 The United States Department of the Treasury has promulgated final regulations governing the use of the proceeds of tax-exempt bonds, all or a portion of which are to be used to reimburse the City or a borrower from the City for project expenditures paid prior to the date of issuance of such bonds. Those regulations (Treasury Regulations, Section 1.150-2) (the "Regulations"} require that the City adopt a statement of official intent to reimburse an original expenditure not later than sixty days after payment of the original expenditure. The Regulations also generally require that the bonds be issued and the reimbursement allocation made from the proceeds of the bonds occur within eighteen months after the later o£ (i) the date the expenditure is paid; or (ii) the date the project is placed in service or abandoned, but in no event more than three years after the date the expenditure is paid. The Regulations generally permit reimbursement of capital expenditures and costs of issuance of the bonds. 3.02 The City reasonably expects to reimburse the Corporation for a portion of the expenditures made for costs of the Improvements from the proceeds of the Series 2007 Bonds in an approximate amount of $3,000,000 after the date of payment of all or a portion of the costs of the Improvements. All reimbursed expenditures shall be capital expenditures, a cost of issuance of the Series 2007 Bonds or other expenditures eligible for reimbursement under Section 1.150-2(d)(3) of the Regulations and also qualifying expenditures under the Act. 3.03 Based on representations by the Corporation, other than (i) expenditures to be paid or reimbursed from sources other than the Series 2007 Bonds, (ii) expenditures permitted to be reimbursed under prior regulations pursuant to the transitional provision contained in Section 1.150-2(j)(2)(i)(B} of the Regulations, (iii) expenditures constituting preliminary expenditures within the meaning of Section 1.150-2(f)(2) of the Regulations, or (iv) expenditures in a "de minimus" amount (as defined in Section 1.150- 2(f)(1) of the Regulations), no expenditures for the Project have been made by the Corporation more than sixty (60) days before the date of adoption of this resolution. 3.04 Based on representations by the Corporation, as of the date hereof, there are no funds of the Corporation reserved, allocated on a long term-basis or otherwise set aside (or reasonably expected to be reserved, allocated on a long-term basis or otherwise set aside) to provide permanent financing for the expenditures related to the Project to be financed from proceeds of the Series 2007 Bonds, other than pursuant to the issuance of the Series 2007 Bonds. This resolution, therefore, is determined to be consistent with the budgetary and financial circumstances of the Corporation as they exist or are reasonably foreseeable on the date hereof. Section 4. Preliminar~pproval Granted. 4.01. The issuance of the Series 2007 Bonds to redeem and prepay the Series 1998 Bonds and the Series 2002 Obligations Bonds, finance the Improvements, fund one or more reserve funds, and pay the costs of issuing the Series 2007 Bonds is hereby preliminarily approved subject to the mutual agreement of the City, the Corporation and the initial purchaser of the Series 2007 Bonds as to the details of the Series 2007 Bonds and provisions for their payment. In all events, it is understood, however, that the Series 2007 Bonds shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the City except the City's interest in the loan or financing agreement with respect to the Series 2007 Bonds and the Facilities, and the Series 2007 Bonds, when, as, and if issued, shall recite in substance that the Series 2007 Bonds, including interest thereon, are payable solely from the revenues received from the Facilities and property pledged to the payment thereof, and shall not constitute a general or moral obligation of the City. 4.02. The law firm of Kennedy & Graven, Chartered is authorized to act as Bond Co~.uisel and to assist in the preparation and. review of necessary documents relating to the Facilities and the Series 2007 Bonds issued in connection therewith. The Mayor, City Manager and other officers, employees and agents of the City are hereby authorized to assist Bond Counsel in the preparation of such documents. 4.03. The Corporation has agreed to pay or reimburse the City for any and all costs paid or incurred by the City in connection with the Series 2007 Bonds. The Corporation has also agreed to pay the administrative fee of the City in the event the Series 2007 Bonds are issued. Section 5. Termination of Preliminary Approval. All commitments of the City expressed herein are subject to the condition that by April 9, 2008, the City, the Corporation and the initial purchaser of the Series 2007 Bonds will have agreed to mutually acceptable terms and conditions of the loan or financing agreement, the Series 2007 Bonds and of the other instruments and proceedings relating to the Series 2007 Bonds and their issuance and sale. If the events set forth herein do not take place within the time set forth above, or any extension thereof, and the Series 2607 Bonds are not sold within such time, this Resolution will expire and be of no fizrther effect. Section 6. Withdrawal by City. The adoption of this Resolution does not constitute a guaranty or firm commitment that the City will issue the Series 2007 Bonds as requested by the Corporation. The City retains the right in its sole discretion to withdraw from participation and accordingly not to issue the Series 2007 Bonds, or issue the Series 2007 Bonds in an amount less that the amaunt referred to herein, should the City at any time prior to issuance thereof determine that it is in the best interest of the City not to issue the Series 2007 Bands, or to issue the Series 2007 Bonds in an amount less than the amount referred to in paragraph 2.01. City Council Minutes April 9, 2007 Page 17 of 19 hereof, or should the parties to the transaction be unable to reach agreement as to the terms and conditions of any of the documents required for the transaction. Section 7. Effective Date. This Resolution shall be in full force and effect from and after its passage. Dated this 9`i' day of Apri12007. EXHIBIT A CITY OF COLUMBIA HEIGHTS, MINNESOTA AMENDED AND RESTATED PROGRAM FOR A MULTIFAMILY HOUSING DEVELOPMENT Pursuant to Minnesota Statutes, Chapter 462C (the "Act"), the City of Columbia Heights, Minnesota (the "City"} is authorized to develop and administer programs to finance the acquisition and construction of multifamily housing developments under the circumstances and within the limitations set forth in the Act. A multifamily housing development may consist of a combination of a multifamily housing development and a new or existing health care facility, as defined in Minnesota Statutes, Section 469.153, if the following conditions are satisfied: (i) the multifamily housing development is designed and intended to be used for rental occupancy; (ii} the multifamily housing development is designed and intended to be used primarily by elderly or physically handicapped persons; and (iii) nursing, medical, personal care, and other health related assisted living services are available on a 24-hour basis in the development to the residents. Minnesota Statutes, Section 46X.07 provides that such programs for multifamily housing developments maybe financed by revenue bonds issued by the City. On August 18, 1987, the City issued its Health Care Facility Revenue Bonds (Crest View Lutheran Home Project), Series 1987 (the "Series 1987 Bonds"), in the original aggregate principal amount of $4,400,000, for the benefit of Crest View Lutheran Home, a Minnesota nonprofit corporation ("Crest View Lutheran Home"), for the purpose of financing the reconstruction, improvement, rehabilitation and equipping, including the construction of a building addition to Crest View Home, a 122-unit licensed nursing facility located at 4444 Reservoir Boulevard in the City ("Crest View Home"), including the discharge and refinancing of certain outstanding indebtedness of Crest View Lutheran Home incurred therefor. On May 19, 1991, the City issued its Board and Care Facility Revenue Bonds (FHA Insured Mortgage Loan -Royce Place Project), Series 1991A (the "Series 1991A Bonds"), in the original aggregate principal amount of $2,770,000, and its Board and Care Facility Revenue Bonds (Royce Place Project}, Series 19918 (the "Series 19918 Bonds"}, in the original aggregate principal amount of $560,000. The Series 1991A Bonds and the Series 1991E Bonds (collectively, the "Series 1991 Bonds") were issued to provide funds to Crest View Lutheran Home to finance the costs of the acquisition, construction, and equipping of Royce Place, a 50-unit board and care facility located at 4444 Reservoir Boulevard in the City ("Royce Place"). On March 31, 1998, the City issued its Multifamily and Health Care Facilities Revenue Bonds (Crest View Project), Series 1998 (the "Series 1998 Bonds"), in the original aggregate principal amount of $10,130,000. The Series 1998 Bonds were issued to defease the Series 1987 Bonds and the Series 1991 Bonds, to redeem certain other outstanding indebtedness of Crest View Corporation, a Minnesota nonprofit corporation ("Crest View Corporation"), formerly known as Crest View Lutheran Home, and to finance certain improvements to the existing facilities of Crest View Corporation. On January 24, 2002, the City issued its: (i) Multifamily Housing Revenue Bonds (GNMA Collateralized Mortgage Loan - Crest View ONDC I Project), Series 2002A-1 in the original aggregate principal amount of $5,000,000 (the "Series 2002A-1 Bonds"), (ii) Multifamily Housing Revenue Bonds (GNMA Collateralized Mortgage Loan -Crest View ONDC I Project), Taxable Series 2002A-2 in the original aggregate principal amount of $110,000 (the "Series 2002A-2 Bonds" and, collectively with the Series 2002A-1 Bands, the "Series 2002 Bonds"); and (iii) Multifamily Housing Revenue Note (Crest View ONDC I Project), Subordinate Series 20028 (the "Series 2002 Note"), in the original aggregate principal amount of $200,000. The Series 2002 Bonds and the Series 2002 Note (collectively, the "Series 2002 Obligations"} were issued to finance the acquisition, development, consri-uction, and equipping by Crest View ONDC I, a Minnesota nonprofit corporation ("Crest View ONDC I), of Crest View on 42nd, a 50-unit multifamily housing assisted-living and memory-loss facility for seniors located at 900 - 42nd Avenue N.E., in the City ("Crest View on 42nd"). The City has received a proposal that it approve a housing program (the "Program"), with respect to the issuance of revenue bonds under the Act. The proceeds derived from the sale of the revenue bands (the "Bonds"), to be issued pursuant to the Program will be loaned to Crest View Corporation, a Minnesota nonprofit corporation, or a related organization, or an organization to be farmed (the "Borrower"), and applied to: (i} refund the outstanding principal amount of the Series 1998 Bonds and the Series 2002 Obligations, and pay or prepay certain other indebtedness of the Borrower; City Council Minutes April 9, 2007 Page 18 of 19 (ii) finance capital improvements to certain facilities owned by the Borrower, including Royce Place, The Boulevard, a 74- unit senior housing facility located at 4444 Reservoir Boulevard in the City ("The Boulevard"), Crest View Home; and Crest View on 42nd (collectively, the "Facilities"); (iii) fund one or more reserve funds; and (iv) pay the costs of issuing the Bonds. The City, in establishing the Program, has considered the information contained in the City's comprehensive plan. The Facilities will be financed and refmanced in accordance with the requirements of Subdivisions 1 and 2 of Section 462C.05 of the Act. Section A. Definitions. The following terms used in this Program shall have the following meanings, respectively: "Act" shall mean Minnesota Statutes, Chapter 4620, as amended. "Bonds" shall mean the revenue bonds to be issued by the City. "Borrower" shall mean Crest View Corporation, a Minnesota nonprofit corporation, or a related organization, or an organization to be formed. "City" shall mean the City of Columbia Heights, Minnesota. "Facilities" shall mean Royce Place, The Boulevard, Crest View Home; and Crest View on 42nd. "Land" shall mean the real property upon which the Facilities are situated. "Program" shall mean this program for the financing of the Facilities pursuant to the Act. Section B. Program For Financing the Project. It is proposed that the City establish this Program to fmance and refinance the Facilities at a cost and upon such other terms and conditions as are set forth herein and as may be agreed upon in writing between the City, the initial purchaser of the Bonds and the Borrower. The City expects to issue the Bonds as soon as the terms of the Bonds have been agreed upon by the City, the Borrower, and Piper Jaffray & Co, as the initial purchaser of the Bonds. The proceeds of the Bonds will be loaned to the Borrower to fmance and refinance the Facilities, to fund required reserves and to pay the costs of issuing the Bonds. It is expected that a trustee will be appointed by the City to monitor the construction of capital improvements to the Facilities and the payment of principal and interest on the Bonds. It is anticipated that the Bonds will have a maturity of approximately thirty years or less and will bear interest at fixed rates consistent with the market at the time of issuance. The City will hire no additional staff for the administration of the Program. Insofar as the City will be contracting with underwriters, legal counsel, bond counsel, the trustee, and others, all of whom will be reimbursed from bond proceeds and revenues generated by the Program, limited administrative costs will be paid from the City's budget with respect to this Program. The Borrower will pay an administrative fee to the City to pay or reimburse such administrative costs. The Bonds will not be general obligation bonds of the City, but are to be paid only from properties pledged to the payment thereof, which may include additional security such as additional collateral, insurance or a letter of credit. Section C. Standards and Requirements Relating to the Financing of the Facilities Pursuant to the Program. The following standards and requirements shall apply with respect to the operation of the Facilities by the Borrower pursuant to this Program: (1) Substantially all of the proceeds of the sale of the Bonds will be applied to (i) refund the Series 1998 Bonds and the Series 2002 Obligations, and pay or prepay certain other indebtedness of the Borrower; (iij finance capital improvements to the Facilities; (iii) fund appropriate reserves; and (iv) pay the costs of issuing the Bonds. The proceeds will be made available to the Borrower pursuant to the terms of the Bond offering, which will include certain covenants to be made by the Borrower to the City regarding the use of proceeds and the character and use of the Facilities. (2) The Borrower, and any subsequent owner of the Facilities, will not arbitrarily reject an application from a proposed tenant because of race, color, creed, religion, national origin, sex, marital status, or status with regard to public assistance or disability. (3) The Facilities are designed primarily for rental to and occupancy by elderly persons. Section 462C.05, Subdivision 4 of the Act provides that the limitations set forth in Section 462C.05, Subdivision 2 of the Act are not applicable. Subsection D. Evidence of Compliance. The City may require from the Borrower at or before the issuance of the Bonds, evidence satisfactory to the City of the ability and intention of the Borrower to complete the capital improvements to the Facilities, and evidence satisfactory to the City of compliance with the standards and requirements of the City for the financing set forth herein; and in connection therewith, the City or its representatives may inspect the relevant books and records of the Borrower in order to confirm such ability, intention and compliance. In addition, the City may periodically require certification from either the Borrower or such other person deemed necessary concerning compliance with various aspects of this Program. Subsection E. Issuance of Bonds. To finance the Program authorized by this Section the City will by resolution authorize, issue and sell its revenue bonds in a maximum aggregate principal amount of $22,500,000. The Bonds will be issued pursuant to City Council Minutes April 9, 2007 Page 19 of 19 Section 462C.07, Subdivision 1 of the Act, and will be payable primarily from the revenues of the Program authorized by this Section. The costs of the Project, including costs of issuance of the Bonds and required reserve funds, are presently expected to be in excess of the principal amount of the Bonds. It is expected that the Borrower and its affiliates will contribute to the Project the difference between the total costs of the Project and the principal amount of the Bonds available to finance the Project. The costs of the Project may change between the date of preparation of this program and the date of issuance of the Bonds. The Bonds are expected to be issued in May, 2007. Subsection F. Severability. The provisions of this Program are severable and if any of its provisions, sentences, clauses or paragraphs shall be held unconstitutional, contrary to statute, exceeding the authority of the City or otherwise illegal or inoperative by any court of competent jurisdiction, the decision of such court shall not affect or impair any of the remaining provisions. Subsection G. Amendment. The City shall not amend this Program, while Bonds authorized hereby are outstanding, to the detriment of the holders of such Bonds. Subsection H. State Ceiling. None of the state ceiling for private activity bonds, pursuant to Section 146 of the Internal Revenue Code of 1.986, as amended, and Chapter 474A of Minnesota Statutes, will be applied for with respect to the Bonds.