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HomeMy WebLinkAboutApril 27, 2009OFFICIAL PROCEEDINGS CITY OF COLUMBIA HEIGHTS CITY COUNCIL MEETING MONDAY, APRIL 27, 2009 The following are the minutes for the regular meeting of the City Council held at 7:00 p.m. on Monday, April 27, 2009 in the City Council Chambers, City Hall, 590 40th Avenue N.E., Columbia Heights, MN. (Ordinances and Resolutions may be found at the end of this document) CALL TO ORDER/ROLL CALL/INVOCATION Reverend Dan Thompson, Columbia Heights Assembly of God Church, gave the Invocation. Present: Mayor Peterson, Councilmember Williams, Councilmember Nawrocki, Councilmember Diehm, Councilmember Kelzenberg PLEDGE OF ALLEGIANCE -recited ADDITIONS/DELETIONS TO MEETING AGENDA Mayor Peterson requested the addition of property acquisition and inter-fund loan for 4108 7th Street. Motion by Diehm, second by Williams, to add property acquisition and inter-fund loan for 4108 7th Street as Item F, Public Hearings. Upon vote: All ayes. Motion carried. Nawrocki requested to add the letter he received from the Mayor, under Other Business. Peterson stated that decision would need Councilmember's approval to be placed on the agenda. Kelzenberg stated this was a personnel issue and not to be discussed at this meeting. Motion by Nawrocki to add discussion of the letter he received from the Mayor, under Other Business. Peterson called for a second. Motion died for lack of a second. PROCLAMATIONS PRESENTATIONS RECOGNITION ANNOUNCEMENTS AND GUESTS Peterson stated that we have received our 17t Tree City USA award and we are very proud of this. A. Recognition Mayor Peterson read the recognition for Harold Netkow and Pastor David Briley for their many years of service on the Police and Fire Civil Service Commission. Netkow stated it was an honor and a pleasure to be on this commission and work with the Chiefs, staff and Linda Magee. This commission was initially created to speed up the process of hiring and promotions. Briley echoed these comments. He stated that they are "old time cops" and the quality of candidates has improved. He thanked the Council for letting him serve. B. Proclamation Community Prayer Breakfast -Mayor Peterson read the Proclamation. This is the 10th annual event. He invited everyone to attend. CONSENT AGENDA Walt Fehst, City Manager took Council members through the consent agenda items. Nawrocki requested to remove Item I. A. Approve minutes of the April 13, 2009 City Council meeting. Motion to approve the minutes of the April 13, 2009 City Council meeting. B. Approve Gambling Permit Immaculate Conception Church Fun Fest August 7-9 2009 City Council Meeting Minutes Monday, Apri127, 2009 Page 2 of 14 Motion to direct the City Manager to forward a letter to the State Charitable Gambling Control Board indicating that the City of Columbia Heights has no objection to a gambling permit for Immaculate Conception Church to conduct bingo, raffles and pull-tabs at their Fun Fest event being held August 7 to 9, 2009 at 4030 Jackson Street NE, Columbia Heights; and furthermore, that the City of Columbia Heights hereby waives the remainder of the thirty-day notice to the local governing body. C. Approve permits for the 2009 Jamboree Fehst stated that the parade would be held on Central Avenue again this year. There was a question if the route would be on Central Avenue this year. Staff's concern was the savings of $3,000 to $4,000 with an alternate route. The route change will be considered next year. He thanked Mike Peterson, Lions President, for his letter requesting to keep the parade on Central Avenue. The Jamboree is June 24 to June 28, 2009. Motion to authorize staff to close Jefferson Street for the time period from Monday afternoon, June 22, 2009 through Sunday, June 28, 2009. Motion to authorize the Police Department to issue a parade permit for the Jamboree Parade to be held on Friday, June 26, 2009 beginning at 6:00 p.m. for the following streets: Central Avenue from 45th Avenue to 40th Avenue, west on 40th Avenue to St'' Street and 5th Street to Mill Street. Motion to authorize Fireworks at dusk on Saturday, June 27, 2009 and waive the Fire Department fireworks display permit fee. D. Annrove transfer of funds for DTF from General. Fund to Police Department Budget to reimburse Overtime Fund Motion to transfer $1,200, the amount of money received from Anoka County as partial reimbursement for overtime worked by our member in the Anoka/Hennepin Drug Task Force, for the first quarter of 2009 from the General Fund to the Police Department 2009 Budget line 1020, Overtime. E. Approve transfer of funds from General Fund to Police Department Budget to reimburse Overtime Fund re: Off-Dut~mployment Assignments Motion to transfer the $2,435.05 received from CHHS and Unique Thrift Stores from the General Fund to the Police Department 2009 Budget line item 1020, Police Overtime. F. Approve the Transfer of Funds from General Fund to Police Department Budget to Reimburse Overtime Fund re: Anoka County DWI Task Force Motion to transfer $1,385.37 received from the State of Minnesota as reimbursement for our participation in the Anoka County DWI Task Force from the General Fund to the Police Department 2009 Budget line item 1020, Overtime. G. Approval of the attached list of rental housing license applications, in that they have met the. requirements of the Property Maintenance Code. Motion to approve the items listed for rental housing license applications for Apri127, 2009. H. Approve Business License Applications Motion to approve the items as listed on the business license agenda for April 27, 2009 as presented. City Council Meeting Minutes Monday, Apri127, 2009 Page 3 of 14 I. Approve payment of the bills. -removed Motion by Nawrocki, second by Williams, to approve the Consent Agenda items, with the exception of item I. Upon vote: All ayes. Motion carried. Discussion: I. Approve payment of the bills. Nawrocki stated that check #129883 is for Jeff's Bobby's and Steve's Auto World. It is a legitimate expense, but as Councilmember Williams has an interest in this and is a member of the Council, it should be removed. Motion Nawrocki, second by Williams, to approve the payment of the bills out of the proper fund as listed in the attached register covering Check Number 129970 through Check Number 130122 with exception of check #129883. Upon vote: All ayes. Motion carried. Motion by Nawrocki, second by Diehm, to approve check #129883. Upon vote: Nawrocki, aye; Diehm, aye; Williams, abstain; Kelzenberg, aye; Peterson, aye. 4ayes -1 abstention. Motion carried. PUBLIC HEARINGS A. Adopt Ordinance Numbers 1563 and 1564 being Ordinances providing for the Issuance and Sale of Bonds, Series 2009A and 2009B Item tabled until Bond Counsel arrived. B. Adopt Resolution No. 2009-50 being a Resolution authorizingLpurchase of property located at 4502 Washin on Street. -Scott Clark, Community Development Director, stated that the neighbor to the south of the property is present. These neighbors submitted an email to Councilmember Williams, which passed on to him, with concerns about the property. Last month at the EDA meeting, there was a general direction to start a scattered housing district to buy functionally obsolete and structurally dangerous houses. The funding source is the tax increment district C8 fund balance that will be decertified in 2010. With existing fund balance and tax increment receipts there will be a balance to buy approximately 20 of these properties and with the Anoka County program to buy another 10 properties. We will look to sell the properties and redevelopment them in the future, receiving approximately $6,500,000 in terms of reinvestment. We made an offer of $35,000 and there will be demolition costs. Pictures were made available to the City Council and the public. This is a 900 square foot house. Clark listed issues with the home. Motion by Williams, second by Kelzenberg, to waive the reading of Resolution 2009-50, there being an ample amount of copies available to the public. Upon vote: All ayes. Motion carried. Motion by Williams, second by Kelzenberg, to adopt Resolution 2009-50, a Resolution approving the acquisition of property located at 4502 Washington Street NE; and furthermore, to authorize the Mayor and City Manager to enter into an agreement for the same. Nawrocki questioned who would pay the taxes that are past due. Clark indicated the bank would need to pay the delinquent taxes. Nawrocki asked the estimate to demo the property. Clark stated $13,000 with the contract coming back for Council approval. Clark stated that a new district would be created for the scattered site area. We would acquire 70 to 80 percent of the cost through sale. Nawrocki commented that these funds take away from other services. He will support this, but will not support creating another district. City Council Meeting Minutes Monday, Apri127, 2009 Page 4 of 14 Peterson opened the public hearing. Cory Mattson, owner of 4500 Washington Street, stated he has lived there 15 years and built a new home on the property two years ago. He has a vested interest to see that something good is done with this property. He indicated he has just signed on with the Columbia Heights Fire Department. The home had drug issues and was raided and had structural issues. The original owner was there since 1952 and passed away at age 95. She wanted to see something good happen to this property. Nawrocki asked if the intent for the property is to be owner occupied and not rental property. Clark stated that when these properties are for sale, they will come before the Council for approval. The intent will be to have them owner occupied. Nawrocki requested that be the goal for these properties. Fehst referred to the City's External Goals to improve the City's housing stock. Peterson stated that he understands Mr. Mattson has indicated interest in purchasing the property. Upon vote: All ayes. Motion carried. C. Adopt Resolution 2009-51 approving an inter-fund loan in connection with the acquisition of 4502 Washington Street. Motion by Diehm, second by Williams, to waive the reading of Resolution 2009-51, there being an ample amount of copies available to the public. Upon vote: All ayes. Motion carried. Motion by Diehm, second by Williams, to Adopt Resolution 2009-51, a Resolution Approving an Inter-fund loan in connection with the .acquisition of 4502 Washington Street. Upon vote: All ayes. Motion carried. D. First Readies of Ordinance 1562 Establishing Fire Department Service Charges Fire Chief Gary Gorman stated this ordinance would allow the. department to charge for service of certain types of events that are out of the norm of their job. State Statute allows charging for these things. Some items included are: vehicle accidents, railroad fires, state highway fires, technical rescues, cut gas lines, underground utility breaks, hazardous materials, and arson fires. The City of Fridley does this and it works well for them. A lot of the invoices are sent to insurance companies. This is a way for our department to recoup some costs for events that are out of the norm. Motion by Williams, second by Kelzenberg, to waive the reading of Ordinance No. 1562, there being ample copies available to the public. Upon vote: All ayes. Motion carried. Motion by Williams, second by Kelzenberg, to establish the second reading of Ordinance 1562, for May 11, 2009 at approximately 7:00 p.m. in the City of Columbia Heights Council Chambers. Nawrocki asked how much we anticipate decreasing the property tax with this new revenue. Fehst stated that we may expect to receive about one-half of what the City of Fridley gets. We will lose a $1,000,000 next year in state aid. This is a way to off set some of that cost. Nawrocki stated it is bad policy, as the department is set up for emergencies and now people may have to consider that it may cost them to call for assistance. Kelzenberg stated that people would call when there is an emergency. Charges can be dealt with City Council Meeting Minutes Monday, Apri127, 2009 Page 5 of 14 after the fact. Gorman stated that the number of calls continue to increase. With all the things like meth houses, etc. we must train, be certified, test, and obtain specialized equipment. This would eliminate the cost of certain events for the good citizens of the community. The Fire Department budget has been cut 16 to 18 percent in the last few years. Deb Johnson, 4626 Pierce Street, stated these charges make people take responsibility for their own actions and our own stupidity, like in the case of rescues through ice. She questioned vehicle accident coverage and if the amount would only be what the insurance company covers. Gorman stated there would be a fee schedule set at the second reading of the ordinance. It would be based on the federal rate and national standard. Diehm indicated that charges not covered by insurance could be appealed to the City Council. A 911 call for a heart attack is not included in this. Nawrocki felt that the insurance companies would then reflect this in their fees. It is difficult to collect from the owners of a meth house. We encourage people to not take chances and to call 911. Mary Persing, 2201 40t" Avenue, stated that she has never had a problem with the Police and Fire Departments; but would be afraid of insurance rates going up. She questioned the large cost to process paper work and the opening to increase fees in the future. Gorman referred to staffing and our rental licensing program. He stated that the people that use the system should pay for the system, just like abatements where the owner should pay for the staff time. There is a State Statute whereby the State has to pay for fires along highway property. Tax dollars should pay for basic services. Williams stated that about 99.9 percent of residents will not pay for any of these fees. Upon vote: Nawrocki, nay; Diehm, aye; Williams, aye; Kelzenberg, aye; Peterson, aye. 4ayes - 1.nay. Motion carried. E. Adopt Resolutions 2009-52 4208 Madison Street N.E. 2009-53, 3732 3rd Street N.E., and 2009-54 3814 Gauvitte Street N E. being Resolutions of the City Council of the City of Columbia Heights approving rental license revocation for failure to meet the requirements of the Property Maintenance Codes. Gorman listed the addresses. Issues are failure to submit license application and fees, and schedule the inspection. Nawrocki stated that inspections are different from fire fighting duties. Inspection fees are justified. Nawrocki gave the history of the fire department. Motion by Williams, second by Diehm, to close the public hearing and to waive the reading of Resolution Numbers 2009-52, 53, and 54 being ample copies available to the public. Upon vote: All ayes. Motion carried. Motion by Williams, second by Diehm, to adopt Resolution Numbers 2009-52, 53, and 54 being Resolutions of the City Council of the City of Columbia Heights approving revocation pursuant to City Code, Chapter SA, Article IV, Section SA.408(A) of the rental licenses listed. Upon vote: All ayes. Motion carried. City Council Meeting Minutes Monday, April 27, 2009 Page 6 of 14 A. Adopt Ordinance Numbers 1563 and 1564 being Ordinances providing for the Issuance and Sale of Bonds, Series 2009A and 2009B Mark Ruff, Ehlers and Associates, gave an update of the bond request for the public safety center, Murzyn hall energy efficiency, city water line lining, and 2007 and 2009 special assessments for street projects. After the second reading we would publish the ordinance in the newspaper, followed by 30 days for response. The bonds would be sold in June. The second bond would be paid by revenue from the developed k-mart site. Motion by Diehm, second by Williams, to waive the reading of Ordinance 1563, there being ample copies available to the public. Upon vote: All ayes. Motion carried. Motion by Diehm, second by Williams, to adopt Ordinance No. 1563 being an ordinance providing for the issuance and sale of approximately $3,935,000 General Obligation Public Facilities Bonds, Series 2009A. Mary Persing indicated distress that the City Council continues to spend money in this economy. Peterson indicated sorrow at her feelings, but stated the public safety project and Murzyn Hall energy improvement decisions were made prior to the turn in the economy. Diehm stated that everyone on the Council takes very seriously the financial decisions made. It has been a tough year with the loss of local government aid and putting all employees on a two week unpaid furlough. We now risk losing a lot of our progress made in our community. We have houses that are falling apart selling for $19,000 and we have to make a choice, do we allow families to buy these homes that are not fit to live in. Williams stated that the water lining. bonds are an ongoing project to keep our water good. Fehst stated that four or five years ago we had residents -lined up to speak about the bad water lines in the city. We need to catch up on some of these items. Nawrocki stated that the water lines need to be done and the special assessments are for projects that are done. The public safety building, when first. proposed, was for $11.5 million and we were lead to believe it could be less than that. Now it is being increased to $12 million. The police department needed the space, but the fire department could have stayed and used the police space. He indicated that some of the money could come from reserves rather than from bonding. They should also be used for the Murzyn Hall costs. Motion by Nawrocki to reduce the public safety building bond from $2 million to $1.5. Peterson called for a second to the motion. Motion died for lack of a second. Motion by Nawrocki to strike $200,000 from the Murzyn Hall bond request, to be paid instead with reserves. Peterson called for a second to the motion. Motion died for lack of a second. Upon vote of the original motion: Nawrocki, nay; Diehm, aye; Williams, aye; Kelzenberg, aye; Peterson, aye. 4ayes -1 nay. Motion carried. Motion by Williams, second by Kelzenberg, to waive the reading of Ordinance 1564, there being ample copies available to the public. Upon vote: All ayes. Motion carried. City Council Meeting Minutes Monday, Apri127, 2009 Page 7 of 14 Motion by Williams, second by Kelzenberg, to adopt Ordinance No. 1564 being an ordinance providing for the issuance and sale of approximately $930,000 General Obligation Taxable Tax Increment Financing Bonds, Series 2009B. Nawrocki stated the goal is to expand the district to increase borrowing against the district, with not only the $930,000, plus $300,000 in interest. This is very premature. Ruff stated that this process is setting up the bond sale. We can wait until June to see what the Legislature will do. The Senate bill may not allow us to do this in the future. Council maintains the ability to decide. F. Item added: end loan in conne~ isition of 41 Clark stated that this property was listed on Friday for $19,900. The home is 718 square feet. The majority of the house is rotting away. Clark showed pictures of the home. Nawrocki asked the demo estimate. Clark stated approximately $16,000 to $17,000, as there are asbestos issues. Nawrocki stated the goal would be to make this a single family/owner occupied home. He will not support setting up another tax increment district. Fehst again referred to the adopted external city goal to improve the City's housing stock. This house was built in 1918. These homes have served their purpose and it is time to replace them. Motion by Williams, second by Kelzenberg, to waive the reading of Resolution 2009-55, there being an ample amount of copies available to the public. Upon vote: All ayes. Motion carried. Motion by Williams, second by Kelzenberg, to adopt Resolution 2009-55, being a Resolution approving the acquisition of property located at 4108 7th Street; and furthermore, to authorize the Mayor and City Manager to enter into an agreement for the same. Nawrocki referred to older homes that were fixed and added on to. Fehst agreed that homes which are kept up are fine, but some homes have become decayed and are being sold for less than the land value. Peterson stated that the structure of this home is not safe. Deb Johnson stated that within two blocks of this home there are five homes in foreclosure. If we are not careful and stop this now, this may become another Sheffield area. Fehst stated that this house, at one time, had a $140,000 mortgage. Upon vote: All ayes. Motion carried. Motion by Williams, second by Kelzenberg, to waive the reading of Resolution 2009-56, there being an ample amount of copies available to the public. Upon vote: All ayes. Motion carried. Motion by Williams, second by Kelzenberg, to adopt Resolution 2009-56, being Resolution approving an inter-fund loan in connection with the acquisition of 4108 7th Street. Upon vote: All ayes. Motion carried. ITEMS FOR CONSIDERATION -none ADMINISTRATIVE REPORTS Report of the City Manager City Council Meeting Minutes Monday, Apri127, 2009 Page 8 of 14 Fehst requested to schedule an executive session on Monday,. May 11, 2009 at 6:00 p.m., prior to the city council meeting, for the purchase of the Hilltop Trailer property, followed by a short work session for the Refuse and Recycling RFP. Nawrocki indicated the need to monitor if the Elk River refuse station will continue or be shut down. Fehst stated costs were reduced during the last contract negotiation. The hauler has indicated that if the contract is bid, the cost would increase. Concerns will be brought up at the meeting. The May 4 work session agenda will include the 2010 budget and funding for the pedestrian bridge. There will also be a representative from the Better Business Bureau present to describe how being a member would benefit us. Nawrocki referred to the pedestrian bridge and handicap accessibility. Important to remember this bridge met all requirements when it was built and unless there is work done on it, you do not have to comply with current standards. He stated he did not see any handicapped, as they are transported to the schools. Fehst stated that he witnessed a wheelchair cross the street. Nawrocki stated there is still graffiti on the green box at 40t" and Circle Terrace. Nawrocki stated that the gym costs have gone up. Fehst stated that the Finance Director factored in the required items for the contingency fund. We would like to place cameras in areas to be supervised at night with limited staff. Report of the City Attorney -nothing to report CITIZENS FORUM -none COUNCIL CORNER Kelzenberg • Read from the Green Sheet regarding the Drug Task Force - Good j ob Detective Bonesteel. Williams • Crime is down again through week 16. Listed the categories. • June 19 and 20 fund raising event for "One community -Rising to New Heights" for a new two part park in conjunction with the School District. Events will be held at Murzyn Hall and Huset Park. Diehm • Attended the statue fund raising pancake breakfast with the Mayor at Applebee's. Breakfast served by our Police and Fire personnel. Thanked the Mayor for his work on this. • The School District passed their new academic calendar for next year. It is available on their web site • The Jamboree will be June 24 to 28. Nawrocki • Assisted in the Lion's highway clean up. • Read the letter he received from Mayor Peterson on conduct. He commented on his feeling on specific items in the letter, and disagreed with the letter. • Indicated the Auto World signage has changed. • Reiterated the city attorney is an employee and should contribute to the furlough. • Commented on his beliefs of discussion of city business. Peterson City Council Meeting Minutes Monday, Apri127, 2009 Page 9 of 14 • Indicated he did send the letter to Councilmember Nawrocki and copied other Council members and his reasons for doing so. Read an email from a St. Thomas student, that attended the last Council meeting, questioning a Council member's conduct. • Participated, with the City Manager, in the KC tootsie roll give away. • Status of statue fund raiser is $17,000. The pancake breakfast raised $1,000. Times are tough, but people still have a big heart. • Credited Councilmember Williams for his fund raising enthusiasm. We have raised a lot of funds in the last ten years. • Can't say enough about our service men and women. When you see them, shake their hand. ADJOURNMENT ayor Peterson adjourned the meeting at 9:02 p:m. Patricia Muscovitz CMC City Cl RESOLUTION 2009-50 APPROVING THE ACQUISITION OF PROPERTY LOCATED AT 4502 WASHINGTON STREET NE WHEREAS, the City has found that there exists conditions of substantial deterioration which are in violation of the City Housing Code and City Ordinances or there exists a need (due to blighting influences) for intervention by the City to prevent further deterioration of the area, and WHEREAS, they City is making a concentrated effort to acquire dilapidated foreclosed properties, and WHEREAS, the city has the option to acquire such properly pursuant to the Purchase Agreement by and between the City of Columbia Heights and Wilshire Credit Corporation (the "seller") and Purchase Agreement has been signed by the seller and provided to the City Council NOW THEREFORE BE IT RESOLVED 1. The City Council hereby approves the terms of the Purchase Agreement for 4502 Washington Street NE between the City of Columbia Heights and Wilshire Credit Corporation and authorizes the Mayor and City Manager to sign the agreement on behalf of the city at a purchase price of $35,000 plus all ancillary costs associated with closing and to proceed with demolition bids. 2. The City Council hereby authorizes staff to handle all the requirements and conditions in order for the City to complete the transaction contemplated in the Purchase Agreement. 3. The City Council approves payments of the purchase cost from the Capital Improvement Development Fund (fund 420). RESOLUTION 2009-51 RESOLUTION APPROVING AND SPECIFYING TERMS OF INTER-FUND LOAN FOR ACQUISITION OF 4502 WASHINGTON ST. NE RECITALS A. The City of Columbia Heights. ("City") and its Economic Development Authority ("Authority") have undertaken a program to promote the development and redevelopment of land which is underutilized within the City, and in this connection the Authority administers the Redevelopment Project No. 1 ("Project") pursuant to Minnesota Statutes, Sections 469.001 to 469.047 and Sections 469.090 to 469.1081 (the "Act"). B. Pursuant to the Act, the Authority is authorized to acquire real property for development and redevelopment by private enterprise or public use. C. The Authority proposes to acquire certain property in the Project located at 4502 Washington Ave. NE (the "Property)." City Council Meeting Minutes Monday, Apri127, 2009 Page 10 of 14 D. The Authority and City may establish ascattered-site tax increment financing district ("TIF District") under Minnesota Statutes, Sections 469.174 to 469.179, (the "TIF Act") that includes the Property in order to facilitate development of that property; or the Authority and City may develop the property for various public uses. E. Under Section 469.178, Subdivision 7 of the TIF Act, the City is authorized to advance or loan money from any fund from which such advances may be legally made in order to fmance expenditures that are eligible to be paid with tax increments under the TIF Act. F. The City has determined that it is in the best interests of the City to loan funds to the EDA in order to acquire the Property, which loan may be reapaid from tax increments or other sources, all as further described in this resolution. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Columbia Heights follows: 1. The City authorizes a loan to the Authority in the maximum amount of $35,000, plus actual closing costs on acquisition of the Property and the actual costs of demolition (the "Loan"), to be drawn from any unencumbered funds available to the City for such purposes. Such amount will be made available to the Authority at or before the closing on acquisition of the Property by the Authority. 2. The outstanding principal balance of the Loan bears interest at the rate of 5.0 percent per annum, which is the maximum rate applicable under Minnesota Statues, Section 469.178, subd. 7 for calendar year 2009. Interest accrues from the date of disbursement from the identified funds in order to acquire the Property. 3. The Loan is payable from tax increments generated from a TIF District to be created (if any), from any other tax increments legally available for such-purposes, from proceeds of the sale of the Property (if any), and from any other revenues available to the Authority. Principal and interest ("Payments") shall be made at the times any revenue sources are available to make installment payments. Payments will be credited to the respective fund from which the Loan was drawn. All payments shall be applied first to accrued interest, and then to unpaid principal of the Loan. 4. The principal sum and all accrued interest payable under the Loan are pre-payable in whole or in part at any time by the Authority without premium or penalty. 5. To the extent the Loan is paid with tax increment, the Loan is evidence of an interfund loan in accordance with Minnesota Statutes, Section 469.178, subd. 7 and is a limited obligation payable solely from the revenues pledged to the payment hereof under this resolution. This Loan and the interest hereon shall not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision thereof, including, without limitation, the Authority. Neither the State of Minnesota, nor .any political subdivision. thereof shall be obligated to pay the principal of or interest on this Loan or other costs incident hereto except out of the pledged revenues, and neither the full faith and credit nor the taxing power of the State of Minnesota or any political subdivision thereof is pledged to the payment of the principal of or interest on the Loan or other costs incident hereto. 6. The City may amend the terms of this Loan at any time by resolution of the City Council, including a determination to forgive the outstanding principal amount and accrued interest to the extent permissible under law. 7. This resolution is effective as of approval by the EDA of a resolution authorizing an interfund loan under substantially the terms described in this resolution. 8. The City Council authorizes and directs staff to take all actions and execute any collateral documents necessary to carry out the intent of this resolution. RESOLUTION 2009-52 Resolution of the City Council for the City of Columbia Heights approving revocation pursuant to City Code, Chapter SA, Article IV, Section SA.408(A) of that certain residential rental license held by Jeffery Dinkel (Hereinafter "License Holder"). Whereas, license holder is the legal owner of the real property located at 4208 Madison Street N.E. Columbia Heights, Minnesota, Whereas, pursuant to City Code, Chapter SA, Article IV, Section SA.408(B), written notice setting forth the causes and reasons for the proposed Council action contained herein was given to the License Holder on Apri16, 2009 of an public hearing to be held on Apri127, 2009. 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. That on or about February 15, 2009, inspection office staff sent a letter requesting the owner of the property to renew the rental license for this property. The letter was mailed by regular mail to the owner at the address listed in the property records. 2. That on Apri16, 2009 inspection office staff reviewed the property file and noted that the property remained unlicensed. A Statement of Cause was mailed by regular mail to the owner at the address listed in the property records. 3. That based upon said records of the Enforcement Office, the following conditions and violations of the City's Residential City Council Meeting Minutes Monday, Apri127, 2009 Page 11 of 14 Maintenance Code were found to exist, to-wit: Failure to submit renewal rental license application and fees 4. That all parties, including the License Holder and any occupants or tenants, have been given the appropriate notice of this hearing according to the provisions of the City Code, Chapter SA, Article III SA.306 and SA.303(A). ORDER OF COUNCIL 1. The rental license belonging to the License Holder described herein and identified by license number F8903 is hereby revoked; 2. The City will post for the purpose of preventing occupancy a copy of this order on the buildings covered by the license held by License Holder; 3. All tenants shall remove themselves from the premises within 60 days from the first day of posting of this Order revoking the license as held by License Holder. RESOLUTION 2009-53 Resolution of the City Council for the City of Columbia Heights approving revocation pursuant to City Code, Chapter SA, Article IV, Section SA.408(A) of that certain residential rental license held by Jose Lema (Hereinafter "License Holder"). Whereas, license holder is the legal owner of the real property located at 3732 3rd Street N.E. Columbia Heights, Minnesota, Whereas, pursuant to City Code, Chapter SA, Article IV, Section SA.408(B), written notice setting forth the causes and reasons for the proposed Council action contained herein was given to the License Holder on April 1, 2009 of an public hearing to be held on Apri127, 2009. 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. That on or about January 15, 2009, inspection office staff sent a letter requesting the owner of the property to renew the rental license for this property. The letter was mailed by regular mail to the owner at the address listed in the property records. 2. That on April 1, 2009 inspection office staff reviewed the property file and noted that the property remained unlicensed. A Statement of Cause was mailed by regular mail to the owner at the address listed in the property records. 3. That based upon said records of the Enforcement Office, the following conditions and violations of the City's Residential Maintenance Code were found to exist, to-wit: Failure to submit renewal rental license application and fees 4. That all parties, including the License Holder and any occupants or tenants, have been given the appropriate notice of this hearing according to the provisions of the City Code, Chapter SA, Article III SA.306 and SA.303(A). ORDER OF COUNCIL 1. The rental license belonging to the License Holder described herein and identified by license number F8872 is hereby revoked; 2. The City will post for the purpose of preventing occupancy a copy of this order on the buildings covered by the license held by License Holder; 3. All tenants shall remove themselves from the premises within 60 days from the first day of posting of this Order revoking the license as held by License Holder. RESOLUTION 2009-54 Resolution of the City Council for the City of Columbia Heights approving revocation pursuant to City Code, Chapter SA, Article IV, Section SA.408(A) of that certain residential rental license held by Christopher Quinn (Hereinafter "License Holder"). Whereas, license holder is the legal owner of the real property located at 3814 Gauvitte N.E. Columbia Heights, Minnesota, Whereas, pursuant to City Code, Chapter SA, Article IV, Section SA.408(B), written notice setting forth the causes and reasons for the proposed Council action contained herein was given to the License Holder on April 14, 2009 of an public hearing to be held on Apri127, 2009. 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. That on or about October 1, 2008, inspection office staff sent a letter requesting the owner of the property to submit a rental license application and schedule a rental inspection for this property. The letter was mailed by regular mail to the owner at the address listed in the property records. 2. That on March 11, 2009 inspection office staff reviewed the property file and noted that the property remained unlicensed. A Statement of Cause was mailed by regular mail to the owner at the address listed in the property records. City Council Meeting Minutes Monday, Apri127, 2009 Page 12 of 14 3. That based upon said records of the Enforcement Office, the following conditions and violations of the City's Residential Maintenance Code were fourid to exist, to-wit: Failure to schedule a rental property inspection. 4. That all parties, including the License Holder and any occupants or tenants, have been given the appropriate notice of this hearing according to the provisions of the City Code, Chapter SA, Article III SA.306 and SA.303(A). ORDER OF COUNCIL 1. The rental license belonging to the License Holder described herein and identified by license number F9307 is hereby revoked; 2. The City will post for the purpose of preventing occupancy a copy of this order on the buildings covered by the license held by License Holder; 3. All tenants shall remove themselves from the premises within 60 days from the first day of posting of this Order revoking the license as held by License Holder. ORDINANCE NO.1563 ORDINANCE PROVIDING FOR THE ISSUANCE AND SALE OF APPROXIMATELY $3,935,000 GENERAL OBLIGATION PUBLIC FACILITIES BONDS, SERIES 2009A THE CITY OF COLUMBIA HEIGHTS DOES ORDAIN: 1. It is hereby determined that the City of Columbia Heights, Minnesota (the "City") intends to undertake or has undertaken the following projects (collectively, the "Projects"): (a) Construction and equipping of an approximately 40,000 square foot police and fire facility (the "Public Safety Center") on a site bounded by 41st Avenue, Jackson Street, 42nd Avenue and Central Avenue (the "Site"), including landscaping and other site improvements related to the Public Safety Center, and landscaping and other site improvements on the remainder of the Site, in the approximate amount of $2,000,000. The City previously issued its General Obligation Public Safety Center Bonds, Series 2008B, in the aggregate principal amount of $10,000,000 (the "Series 2008B Bonds"), to finance a portion of the construction and equipping of the Public Safety Center. (b) Energy-efficient improvements to Murzyn Hall, in the approximate amount of $980,000. (c) Watermain improvements pursuant to Minnesota Statutes, Section 444.075, in the approximate amount of $335,000. (d) Street and alley rehabilitation and reconstruction improvements (Project No. 2007-02 and Project No. 2009-02) pursuant to Minnesota Statutes, Chapter 429, in the approximate amount of $620,000. 2. The City has determined- to finance. the costs of the Projects through the issuance of general obligation bonds under the Charter of the City of Columbia Heights (the "Charter") and Minnesota Statutes, Chapters 429, 444, and 475 (collectively, the "Acts"). 3. It is necessary and expedient to the sound financial management of the affairs of the City to issue its General Obligation Public Facilities Bonds, Series 2009A (the "Bonds"), in a principal amount not to exceed $3,935,000, pursuant to the Charter and the Acts to provide financing for the Projects. 4. The City is authorized by Section 475.60, Subdivision 2(9) of the Acts to negotiate the sale of the Bonds, it being determined that the City has retained an independent financial adviser in connection with such sale. 5. Ehlers & Associates, as fmancial advisor to the City, is authorized to negotiate the sale of the Bonds in the maximum principal amount specified in Section 3, in accordance with the terms of proposal approved by the City Manager and the City Finance Director. The City Council will meet on June 8, 2009 or such other date specified by the City Manager in accordance with the Charter, to consider the sale of the Bonds and take any other appropriate action with respect to the Bonds. 6. The City previously declared its official intent to reimburse itself for the costs of the Public Safety Center from the proceeds of obligations in the maximum principal amount of $11,500,000, pursuant to Treasury Regulations, Section 1.150-2, promulgated by the Internal Revenue Service. The City subsequently issued the Series 2008B Bonds in the aggregate principal amount of $10,000,000, and it is now estimated that the total costs of the Public Safety Center will be $12,000,000, with the remaining costs to be financed through the issuance of the Bonds. The City hereby declares its official intent to reimburse itself for the remaining costs of the Public Safety Center (i.e. costs not reimbursed from the issuance of the Series 2008B Bonds) from the proceeds of the Bonds. 7. This Ordinance shall be in full force and effect from and after thirty (30) days after its publication in a legal newspaper of general circulation in the City. ORDINANCE NO.1564 ORDINANCE PROVIDING FOR.THE ISSUANCE AND SALE OF APPROXIMATELY $930,000 GENERAL OBLIGATION TAXABLE TAX INCREMENT FINANCING BONDS, SERIES 2009B THE CITY OF COLUMBIA HEIGHTS DOES ORDAIN: 1. It is hereby determined that: (a) The City of Columbia Heights, Minnesota (the "City") and the Columbia Heights Economic .Development Authority (the "Authority") duly established the Kmart/Central Avenue Tax Increment Financing District (the "TIF District") within the Downtown CBD Redevelopment Project (the "Project") pursuant to Minnesota Statutes, Sections City Council Meeting Minutes Monday, Apri127, 2009 Page 13 of 14 469.174 through 469.1799 .(the "TIF Act") and Sections 469.001 to 460.047, which TIF District was filed for certification by the Anoka County Auditor on July 23, 2004. (b) Pursuant to Section 469.175, Subdivision 4 of the TIF Act, the City and Authority are authorized to expand the boundaries of the TIF District by no later than July 23, 2009, which is five years after the date of certification of the TIF District. (c) The City and Authority have initiated the process to expand the boundaries of the TIF District in order to facilitate various redevelopment activities in the expanded area of the TIF District, including without limitation acquisition of foreclosed housing. The City expects to hold a public hearing and consider a modification of the TIF District boundaries and the tax increment financing plan therefor (the "TIF Plan") on May 11, 2009. (d) The City is authorized by the TIF Act and Minnesota Statutes, Chapter 475, as amended, to issue general obligation tax increment bonds in order to finance public redevelopment costs of the Project in accordance with the TIF Plan for the TIF District. (e) It is necessary and expedient to the sound fmancial management of the affairs of the City to issue its General Obligation Taxable Tax Increment Bonds, Series 2009B (the "Bonds") in a principal amount not to exceed $930,000 to provide fmancing for certain public redevelopment costs of the Project, including without limitation the acquisition of certain foreclosed homes located in the TIF District, as proposed to be expanded. 2. The City is authorized by Minnesota Statutes, Section 475.60, Subdivision 2(6), to negotiate the sale of the Bonds, it being determined that interest on the Bonds cannot be represented to be excluded from gross income for purposes of federal income taxation. 3. Ehlers & Associates, as financial advisor to the City, is authorized to negotiate the sale of the Bonds in the maximum principal amount specified in Section 1(e), in accordance with the terms of proposal approved by the City Manager and the City Finance Director. The City Council will meet on June 8, 2009 or such other date specified by the City Manager in accordance with the Charter, to consider the sale of the Bonds and take any other appropriate action with respect to the Bonds; provided that such sale shall be scheduled after City Council approval of the amendment to the TIF Plan described in Section 1, and no later than July 23, 2009. 4. This Ordinance shall be in full force and effect from and after thirty (30) days after its passage. RESOLUTION 2009-55 APPROVING THE ACQUISITION OF PROPERTY LOCATED AT 4108 7th STREET NE WHEREAS, the City has found that there exists conditions of substantial deterioration which are in violation of the City Housing Code and City Ordinances or there exists a need (due to blighting influences) for intervention by the City to prevent further deterioration of the area, and WHEREAS, they City is making a concentrated effort to acquire dilapidated foreclosed properties, and WHEREAS, the city has the option to acquire such property pursuant to the Purchase Agreement by and between the City of Columbia Heights and Countrywide Home Loans, Inc. (the "seller") and Purchase Agreement has been signed by the seller and provided to the City Council NOW THEREFORE BE IT RESOLVED 1. The City Council hereby approves the terms of the Purchase Agreement for 4108 71h Street NE between the City of Columbia Heights and Countrywide Home Loans, Inc. and authorizes the Mayor and City Manager to sign the agreement on behalf of the city at a purchase price of $19,900 plus all ancillary costs associated with closing and to proceed with demolition bids. 2. The City Council hereby authorizes staff to handle all the requirements and conditions in order for the City to complete the transaction contemplated in the Purchase Agreement. 3. The City Council approves payments of the purchase cost from the Capital Improvement Development Fund (fund 420). RESOLUTION 2009-56 RESOLUTION APPROVING AND SPECIFYING TERMS OF INTER-FUND LOAN FOR ACQUISITION OF 4108 7th ST. RECITALS A. The City of Columbia Heights. ("City") and its Economic Development Authority ("Authority").have undertaken a program to promote the development and redevelopment of land which is underutilized within the City, and in this connection the Authority administers the Redevelopment Project No. 1 ("Project") pursuant to Minnesota Statutes, Sections 469.001 to 469.047 and Sections 469.090 to 469.1081 (the "Act"). B. Pursuant to the Act, the Authority is authorized to acquire real property for development and redevelopment by private enterprise or public use. City Council Meeting Minutes Monday, Apri127, 2009 Page 14 of 14 C. The Authority proposes to acquire certain properly in the Project located at 4108 7t" Street NE (the "Properly)." D. The Authority and City may establish ascattered-site tax increment fmancing district ("TIF District") under Minnesota Statutes, Sections 469.174 to 469.179 (the "TIF Act") that includes the Property in order to facilitate development of that property; or the Authority and City may develop the property for various public uses. E. Under Section 469.178, Subdivision 7 of the TIF Act, the City is authorized to advance or loan money from any fund from which such advances may be legally made in order to finance expenditures that are eligible to be paid with tax increments under the TIF Act. F. The City has determined that it is in the best interests of the City to loan funds to the EDA in order to acquire the Property, which loan maybe reapaid from tax increments or other sources, all as further described in this resolution. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Columbia Heights follows: 1. The City authorizes a loan to the Authority in the maximum amount of $19,900,. plus actual closing costs on acquisition of the Property and the actual costs of demolition (the "Loan"), to be drawn from any unencumbered funds available to the City for such purposes. Such amount will be made available to the Authority at or before the closing on acquisition of the Property by the Authority. 2. The outstanding principal balance of the Loan bears interest at the rate of 5.0 percent per annum, which is the maximum rate applicable under Minnesota Statues, Section 469.178, subd. 7 for calendar year 2009. Interest accrues from the date of disbursement from the identified funds in order to acquire the Property. 3. The Loan is payable from tax increments generated from a TIF District to be created (if any), from any other tax increments legally available for such purposes, from proceeds of the sale of the Property (if any), and from any other revenues available to the Authority. Principal and interest ("Payments") shall be made at the times any revenue sources are available to make installment payments. Payments will be credited to the respective fund from which the Loan was drawn. All payments shall be applied first to accrued interest, and then to unpaid principal of the Loan. 4. The principal sum and all accrued interest payable under the Loan are pre-payable in whole or in part at any time by the Authority without premium or penalty. 5. To the extent the Loan is paid with tax increment, the Loan is evidence of an interfund loan in accordance with Minnesota Statutes, Section 469.178, subd. 7 and is a litmited obligation payable solely from the revenues pledged to the payment hereof under this resolution. This Loan and the interest. hereon shall not be deemed to constitute a general obligation. of the State of Minnesota or any political subdivision thereof, including, without limitation, the Authority. Neither the State of Minnesota, nor any political subdivision thereof shall be obligated to pay the principal of or interest on this Loan or other costs incident hereto except out of the pledged revenues, and neither the full faith and credit nor the taxing power of the State of Minnesota or any political subdivision thereof is pledged to the payment of the principal of or interest on the Loan or other costs incident hereto. 6. The City may amend the terms of this Loan at any time by resolution of the City Council, including a determination to forgive the outstanding principal amount and accrued interest to the extent permissible under law. 7. This resolution is effective as of approval by the EDA of a resolution authorizing an interfund loan under substantially the terms described in this resolution. 8. The City Council authorizes and directs staff to take all actions and execute any collateral documents necessary to cary out the intent of this resolution.