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HomeMy WebLinkAboutSeptember 28, 2009OFFICIAL PROCEEDINGS CITY OF COLUMBIA HEIGHTS CITY COUNCIL MEETING SEPTEMBER 28, 2009 The following is the agenda for the regular meeting of the City Council to be held at 7:00 p.m. on Monday, September 28, 2009 in the City Council Chambers, City Hall, 590 40th Avenue N.E., Columbia Heights, MN. Resolz~tions and Ordinance nrav be found at the end of this document. CALL TO ORDER/ROLL CALL/INVOCATION Pastoral Minister Lorraine Mell, Immaculate Conception 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 removed Resolution 2009-153, in that the property has been brought into compliance, and item 6C -property acquisition. Nawrocki stated his assumption that there would be a "Council Corner" and requested to add the budget EDA change for the apartment development site, information on the Veolia contract, and newsletter costs. Nawrocki stated that Councilmember Diehm has been recognized as one of the top lawyers in the United States. Local residents that passed away this week were Bill Land and Al Martinson. Land was a City Councilmember for 12 years and Martinson was a local insurance agent. 4. PROCLAMATIONS, PRESENTATIONS, RECOGNITION, OUNCEMENTS, GUEST5 A. Proclamation -October 2009 Domestic Violence Awareness Month Mayor Peterson read the proclamation. 5. CONSENT AGENDA Nawrocki requested to remove items D, I, and K. City Manager Walt Fehst took Council members through the consent agenda items A. Approve Minutes of the September 14, 2009 City Council meeting Motion to approve the minutes of the September 14, 2009 City Council meeting. B. Accept minutes of the Columbia Heights Boards and Commissions Motion to accept the August 5, 2009 minutes of the Library Board. Motion to accept the June 24, 2009 minutes of the Park and Recreation Commission. Motion to accept the August 26, 2009 minutes of the Park and Recreation Commission. C. Approve Gambling Permit for Immaculate Conception Church, November 14, 2009 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 and raffles at an event being held Saturday, November 14, 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. City Council Minutes Monday, September 28, 2009 Page 2 of 14 D. Adopt Resolution 2009-149, being a Resolution establishing_amount of City share and amount of special assessments on projects to be levied. -removed E. Adopt Resolution 2009-148 approving Third Amendment to Amended and Restated Contract fo_r_ Private Redevelopment - Huset Park Development Motion to waive reading of Resolution 2009-148, there being ample copies available to the public. Mnfinn to a~lnnt RPCnlntinn 7M4_i 4R a RPCnhitinn a»nrnvina the Third AmpnrlmPnl to _._..__..~ .., .......,t,. __.,.,.,_.....,__ _., .,, _ ..., .. ___ ............. ..i.i,_...---a ____ __---,- - --------.------_ .~ Amended and Restated Contract for Private Redevelopment by and between the City of Columbia Heights and Huset Park Development Corporation, approved on August 1, 2007; and furthermore, to authorize the Mayor and City Manager to enter into an agreement for the same. F. Adopt Resolution 2009-150, being a Resolution authorizingextension request to the Met Council for 47th and Central Avenue parking ramp grant Motion to waive the reading of Resolution 2009-150, there being ample copies available to the public. Motion to adopt Resolution 2009-150, authorizing submittal to the Metropolitan Council for a third extension for demonstration Grant No. SG006-166 for the 47th and Central Avenue parking ramp. G. Demolition Bid for 41.47 7th Street and 4448 Quincy Street -Scattered Site Motion to approve the demolition contract for TCM Construction, in the amount of $14,004 for properties located at 4147 7th Street and 4448 Quincy Street. H. Approval of the attached list of rental housing license applications Motion to approve the items listed for rental housing license applications for September 28, 2009 I. Approve the 2010 Business License Fees -removed Approve Business License Applications Motion to approve the items as listed on the business license agenda for September 28, 2009 as presented. K. Approve Payment of Bills -removed Motion by Williams, second by Kelzenberg, to approve the Consent Agenda items with the exception of items D, I, & K. Upon vote: All ayes. Motion carried. D. Adopt Resolution 2009-149, being a Resolution establishing amount of City share and amount of special assessments on projects to be Levied. Nawrocki asked the cost comparison to the assessment hearing estimate. Fehst stated that all assessments are about 15 percent below the amounts presented at the hearing. Nawrocki indicated that when a property becomes tax forfeit, the County cancels out any assessments against the property. There is a process to add them back if the property is sold. Fehst stated he would research this. Motion by Nawrocki, second by Diehm, to waive the reading of Resolution No. 2009-149, there City Council Minutes Monday, September 28, 2009 Page 3 of t4 being ample copies available for the public. Upon vote: All ayes. Motion carried. Motion by Nawrocki, second by Diehm to adopt Resolution No. 2009-149 being a Resolution establishing amount of City share and amount of Special Assessments on Projects to be levied. Upon vote: All ayes. Motion carried. 1. Approve the 2010 Business License Fees Nawrocki questioned what the existing fees are and where we are compared to other cities. Scott Ciar k, Coiiuiiiiiii t`y' Deveiopiiient Dir eiJtor, indicated that the business iicei'ise i~;eS have iiot changed and staff will come back later with fee changes for permits. Nawrocki questioned why they need to be readopted each year. Clark stated this is a requirement. Nawrocki indicated what he paid for a permit and stated that permit fees should be looked at based on increased construction costs. Clark stated we are only looking at changing the minimum fee. Motion by Nawrocki, second by Williams, to adopt Resolution 2009-147 being a Resolution adopting the 2010 Business License Fee Schedule as presented. Upon vote: All ayes. Motion carried. K. Payment of bills Nawrocki removed check 131970 to Bobby and Steve's Autoworld, as Williams is on the City Council. Motion by Nawrocki, second. by Diehm, to approve check 131970. Upon vote: Kelzenberg, aye; Williams, aye; Nawrocki, aye; Diehm, aye; Peterson, aye. All ayes. Motion carried. Motion by Na~.vrock i, second by Diehm, to approve the payment of bills out of the proper funds as listed in the attached register covering Check Number 131819 through Check Number 132023 in the amount of $2,004,981.01. Upon vote: All ayes. Motion carried. PUBLIC HEARINGS A. Adopt Resolution 2009-152, 4149 Monroe Street N.E. being a Resolution abnrovina rental license revocation for failure to meet the requirements of the Property Maintenance Codes. Fire Chief Gary Gorman stated the request is for failure to submit rental License application, schedule an inspection, and failure to pay fees. Motion by Diehm, second by Kelzenberg, to close the public hearing and to waive the reading of Resolution Number 2009-152 there being ample copies available to the public. Upon vote: All ayes. Motion carried. Motion by Diehm, second by Kelzenberg, to adopt Resolution Number 2009-152 being a Resolution of the City Council of the City of Columbia Heights approving revocation pursuant to City Cade, Chapter SA, Article IV, Section SA.408(A) of the rental licenses listed. Upon vote: All ayes. Motion carried. B. Adopt Resolutions 2009-153, 5038 Jefferson Street N.E., 2009-154, 3957 Polk Street N.E., and 2009-155.941 45th Avenue N.E. being declarations of nuisance and abatement of violations within the City of Columbia Heights• City Council Minutes Monday, September 28, ?009 Page 4 of 14 Gorman stated that the 3957 Polk Street abatement was to board up the vacant home. 941 45th Avenue has three items to repair. Nawrocki questioned removal of the Jefferson item because the stump has not been removed. Gorman stated the property has been purchased and we will give the new owner time to remove the stump. Nawrocki stated that the alley between 45th and 46th needs to be cleaned up. Motion by Nawroeki, second by Williams, to close the public hearing and to waive the reading of Resolution Numbers 2009-154, and 155 there being ample copies available to the public. Upon vote: All ayes. Motion carried. Motion by Nawrocki, second by Williams, to adopt Resolution Numbers 2009-154, and 155 being resolutions of the City Council of the City of Columbia Heights declaring the properties listed a nuisance and approving the abatement of violations from the properties pursuant to City Code section 8.206. Upon vote: All ayes. Motion carried. C. Adapt Resolution 2009-151. being a Resolution approving acquisition of 4450 Van Buren Street. - removed ITEMS I{'Q- CONSII)E TIK31~1 A. Other Ordinances and Resolutions Second Reading of Ordinance 1570, being a Municipal Code Amendment as it relates to Smoke Shops Jeff Sargent, City Planner, stated this is the second reading of Ordinance 1570. He recapped the first reading. This Ordinance was the second option, plus the removal of the size restriction and number of people sampling. Sargent stated there was an error in the initial ordinance distributed for this meeting and indicated the corrected ordinance was handed out at this meeting. Ordinances 1570 and 1571 were combined, for clarification. Attorney Alex Bajwa, 3932 Longfellow A_venuP Minnepolis, representing Hooka l~ingdom and Hooka Paradise stated that he respectfully disagreed with the Freedom To Breath Act (FBA) and referenced local patchwork regulations added to the ordinance. He indicated sections of the FBA that were changed following the original passage, including State information relative to municipal acts. This does not include businesses that sell products other than tobacco products. He stated disagreement on information included in section 5.309 that was not included in the original ordinance. The original recommendation was to limit licenses to five businesses and follow the FBA, not to include an end of the year audit. There is no definition of sampling in the State law. There have been no complaints or violations of the FBA since these businesses opened. This addition would work to close these businesses. He referred to other businesses that are not so regulated. People should be allowed to choose how to live their own lives. Putting these businesses at risk to close does not make the community stronger. Diehm asked if the 90 percent requirement for tobacco sales would be a problem, and does more than 10 percent of the sales come from sampling? Bajwa stated that some people just sample and some sample and buy. Diehm asked the percentage. Bajwa stated that these are new businesses and do not yet have that information. Diehm asked if she would be allowed to sample her purchase in the store. Bajwa stated yes, the sample typically costs $6 to $7 and the purchase of a box is $15 to $16 or enough for about two or three uses. Product can be purchased in larger amounts as well. City Council Minutes Monday, September 28, 2009 Page 4 of 14 Gorman stated that the 3957 Polk Street abatement was to board up the vacant home. 941 45`" Avenue has three items to repair. Nawrocki questioned removal of the Jefferson item because the stump has not been removed. Gorman stated the property has been purchased and we will give the new owner time to remove the stump. Nawrocki stated that the alley between 45`" and 46t" needs to be cleaned up. Motion by Nawrocki, second by Williams, to close the public hearing and to waive the reading of Resoiiiiioil 1`3iiiTlberS 2^v09-i54, and i55 there belllg alllple cVp1eJ av[Lllable to the public. Upon vote: All ayes. Motion carried. Motion by Nawrocki, second by Williams, to adopt Resolution Numbers 2009-153, 154, and 155 being resolutions of the City Colmcil of the City of Columbia Heights declaring the properties listed a nuisance and approving the abatement of violations from the properties pursuant to City Code section 8.206. Upon vote: All ayes. Motion carried. C. Adopt Resolution 2009-15I, being a Resolution approving acquisition of 4450 Van Buren Street. -removed ITEMS FOR CONSIDERATION A. Other Ordinances and Resolutions Second Reading of Ordinance 1570, being a Municipal Cade Amendment as it relates to Smoke Shops Jeff Sargent, City Plamler, stated this is the second reading of Ordinance 1570. He recapped the first reading. This Ordinance was the second option, plus the removal of the size restriction and number of people sampling. Sargent stated there was an error in the initial ordinance distributed for this meeting and indicated the corrected ordinance was handed out at this meeting. Ordinances 1570 and 1571 were combined, for clarification. Attorney Alex Bajwa, 3932 Longfellow Avenue Minnepolis, representing Hooka Kingdom and Hooka Paradise stated that he respectfully disagreed with the Freedom To Breath Act (FBA) and referenced local patchwork regulations added to the ordinance. He indicated sections of the FBA that were changed following the original passage, including State information relative to municipal acts. This does not include businesses that sell products other than tobacco products. He stated disagreement on information included in section 5.309 that was not included in the original ordinance. The original recommendation was to limit licenses to five businesses and follow the FBA, not to include an end of the year audit. There is no definition of sampling in the State law. There have been no complaints or violations of the FBA since these businesses opened. This addition would work to close these businesses. He referred to other businesses that are not so regulated. People should be allowed to choose how to live their own lives. Putting these businesses at risk to close does not make the community stronger. Diehm asked if the 90 percent requirement for tobacco sales would be a problem, and does more than 10 percent of the sales come from sampling? Bajwa stated that some people just sample and some sample and buy. Diehm asked the percentage. Bajwa stated that these are new businesses and do not yet have that information. Diehm asked if she would be allowed to sample her purchase in the store. Bajwa stated yes, the sample typically costs $6 to $7 and the purchase of a box is $15 to $16 or enough for about two or three uses. Product can be purchased in larger amounts as well. City Council Minutes Monday, September?&, 2009 Page S of 14 Peterson stated the 90/10 percentage is something that has been agreed to, but questioned how that would be interpreted without an audit. Bajwa indicated that what is included in the audit is beyond the FBA requirements. Diehm questioned if the purchase of samples is credited to the product. Bajwa stated their concern is for the percentage requirement. He referred to the MN Department of Health, which considers a sample as a sale of tobacco. Diehm stated that the motion at the last meeting was not iiieaiit to prohibit sa~upiing. She stand that the perception of ttie coiiuituiti~y iS that ttic, Store IS not to buy product, but to sample it at the store. Bajwa stated this is discussing hypothetical's and referred to the MN Department of Health model. We can not control the actions of customers and what they have tried before. Everything that can be sampled is for sale. Diehm questioned if the margin of profit is higher on samples than product. He stated that, per the State, that is still a sale of product. Diehm questioned without an audit, how can we be sure of the spirit of the intent? Bajwa stated that the State does not remove the sale of samples from product sales. Nawrocki asked what constitutes sampling and how long does it take. Bajwa stated that has been discussed before. He referred to cigar or wine sampling. Nawrocki stated that wine sampling is not an on-going thing and is only a few sips. Nawrocki referred to smoking the entire sample at the store. Bajwa referred to liquor stores that have wine sampling in a social setting. Nawrocki asked how this is smoked. Bajwa described the Hooka. Nawrocki asked if people can buy a regular size produce and smoke it there. Bajwa stated they do not buy an entire box and smoke it there. Nawrocki question how we can. allow people to smoke this in stores when we do not allow people to smoke cigarettes in stores. Peterson stated that a smoke shop stands on its own. Diehm indicated the issue seems to be if sampling constitutes more than 10 percent of proceeds. What is the procedure if a license holder does not meet the requirement? Jim Hoeft, City Attorney, referred to liquor licenses that sell under the required percentage. They have an a~.zdit requirement, with the first year used as a base line. When a business did not meet the 60-40 split, they were given another year to work toward the correct split. It would come back to the Council for consideration. Diehm indicated that if they do not sell anything other than tobacco, the audit would only be because of the samples sold. Nawrocki referred to the initial liquor license requirements being changed, based on experience. Hoeft stated that no one has lost a liquor license because of sale percentages. Sargent stated there is a provision fora 13 month amortization allowing businesses to meet this requirement. This ordinance is not written specifically for these businesses referred to; we have two other stores that sell things other than tobacco products. Nawrocki asked Sargent how many licenses are allowed in Minneapolis and how they work. Sargent stated that Minneapolis and St. Paul have not further defined their smoke shop ordinances. There is a shop in St. Paul being investigated. After a city adopts an ordinance they must follow that ordinance or they can only fall back on the FBA. We do not want smoking parlors. Nawrocki questioned if we are too easy on these shops, as other communities only have single stores of this type. Sargent stated we may attract these types of businesses due to demographics or available business space. Nawrocki stated that he received a call indicating "we should leave them alone". John. Anderson, 5909 2nd Street, President of the Republican Party, indicated they stand in City Cc~uncii Minutes Monday, September 28, 2009 Page 6 of 14 opposition of the Ordinance, as it stands in the way of commerce, attacks personal freedom and rights, and attacks certain cultures. Nawrocki asked if his people are against smoking in restaurants. Anderson stated their belief is that it is unconstitutional. Dan Thompson, Columbia Heights Pastor, voiced his support of the business owner. Mohamed Hassan has a great place for people to meet and represents a diverse community. Even with tough economic times, he has brought people to our city. This requirement would challenge his business and could endanger his lease. Thompson stated his support for Columbia Heights and the comm~un;ty's diversity. He stated his desire that the City continue to allow these businesses to operate. Mindy Bach, Pastor and 20 year resident of Columbia Heights, stated she is a patron of these establishments. She is now a friend of the owner. She stated that as a Christian she feels this brings cultures together and can change the face of who we are. With this, we have a microcosm of what peace could look like. She stated her believe that these two businesses have enriched her family. Her daughter is now studying in the east. Bach requested the City Council not place restrictions that would jeopardize these businesses. Hamguy Elsawef, member of the Governor's Council and resident, gave his background. He has observed cultural diversity for over 30 years, and was not present to defend smoking/shops. He stated his honor to be invited to give one of the first Council meeting invocations in 2004. Elsawef indicated haw these two businesses have enriched our community. They have a restaurant and they are adding another one. They are doing well and bring people together. He has told them to abide by the regulations. When we get together, it is more than smoking a sample; it is a coming together, a coexistence. He stated his belief that this helps to reduce crime. Elsawef indicated his hope for this to become a model for the rest of the state. There is no alcohol or drugs allowed, as they are against our beliefs. Bajwa read a letter from Marie Porkonowski, President-elect of the MN PTA indicating her support of the owner and describing his help to children of the community. Mohamed Hassan stated he has owned the Cafe since 2006, and referred to when the smoking ban came in he came to the city for help, opened a new store, received a license, entered a lease for seven years and then, after three months, received a letter from the city regarding changes. He stated that he has 1,000 signatures of support from customers in Minnesota and Wisconsin. He stated that he is now a United States citizen and making his dream come true. He does not want that jeopardized. Jessica Fine, Columbia Heights resident, stated that she is employed at Hooka Cafe and loves the job and relies on this to pay her bills. She stated "please don't do anything to shut us down." Olive Waswas gave the background on how the store came about and the discussion to establish a legal smoke shop. The Building Official laid out the rules. The goal was not the Hooka shop, but how to allow people to sample a flavored tobacco. Sampling is done because there are not yet enough. customers to only have sales. This is all new. Give them time to build this new style of business. Debra Miller, 4130 Quincy, 17 year resident and patron of Yafa, indicated that restrictions may be a firture detriment to the business and. that would be really sad. She stated that she moved here City Council. Minutes Monday, September 28, ?009 Page 7 of t 4 for the community's diversity. Joel Hildon, 3932 Longfellow, Minneapolis, gave his history of visiting the shop and the character of the owner. He stated that he is now looking for a house here; Hooka Kingdom brought him to this community. He requested the City not establish an ordinance that would jeopardize this business. He questioned the rational of the percentage requirement. Scott Clark, Community Development Director, indicated his concern that if we do not set restrictions through licensing, any business could become a smoking lounge. Fehst indicated that the State does not remove sampling from the FBA. Sargent indicated that the State does not define sampling as part of the 90 percent requirement. We are saying that we want to remove sampling from that percentage. Peterson referred to the Planning and Zoning Commission recommendation to follow the FBA and go no further. Diehm stated that the FBA gives the city the right to add restrictions. They have no definition of sampling. People are purchasing and sampling in a smoke shop. The Police Department and Community Development Department asked us the definition of sampling. To define sampling we would have to put it in our City Code. We could initiate the ordinance and revisit this in one year to see if that percentage is applicable. We would not remove licenses. Peterson questioned if patrons pay for the sample. Bajwa indicated they do. Peterson stated if they pay, then it is a tobacco product. Mohamed described how the product is consumed. He stated his tobacco includes a sales tax. He indicated that sampling is necessary to show people how to do this, as it is not common here. Divy Goel, Target business executive, 1117 Marquette Avenue, Minneapolis, spoke of how this brought him to this community and how he has friends that came all the way from Arkansas to visit this store. He indicated that he stands as a character witness for the owner. Laura Palmer, 1202 40t'' Avenue, stated her support of this good establishment with valuable services and is concerned about their property rights. The 90-10 percent restriction is burdensome. She indicated the Council should be cautious with adding regulations. Donna Schmitt, 4260 Tyler, member of the Planning and Zoning Commission, stated that the Commission moved to adopt the guidelines of the FBA and limit the licenses to five. They did not recommend any Limit by the percentage of sales. The Commission understood that tobacco sales were to be 90 percent of sales as reported to the State. Peterson closed the discussion and stated that Mohamed does not lack for community support. Kelzenberg questioned eliminating the percentage. Peterson stated the recommendation is to limit licenses to five and follow the FBA. Diehm questioned requiring an accounting report and see if they give it to us or suspect the State will define sampling and address it as an over site. Peterson referred to tobacco vs. tires; do we audit them? Diehm indicated that the FBA had loopholes when first enacted and questioned this as a poorly defined rule, but indicated she was not sure if we should be the ones to address this. A smoking lounge would be up to the State to define. Peterson stated. that the FBA is a self governing thing; if you don't want to be in a smoke environment, you don't have go to in there. Kelzenberg stated that he is fine with the ordinance, if the percentages are eliminated. City Council Minutes Monday, September 2$, 2009 Page 8 of 14 Motion by Williams, second by Diehm, to waive the reading of Ordinance No. 1570, there being ample copies available to the public. Upon vote: All ayes. Motion carried. Hoeft stated that the ordinance includes the 90 percent requirement and would need to be modified to remove the provision. Motion by Kelzenberg, second Diehm, to adopt Ordinance No. 1570, being an ordinance amending Qrrlinanre Nr7, 149Q (~'ity C'nrle of ~Q(l~~ arl~rnting the rnrnrn,ncerl ?nning amenrlmentc outlined in Ordinance 1570. Williams questioned why we are limiting this to five licenses. Fehst stated that we Limit the number of liquor stores. As for the regulation of percentages; let the State do the enforcement. Motion to amend by Kelzenberg to remove Section 5.309 Subsection. B regarding the requirement for an audit. Second by Peterson. Upon vote: Kelzenberg, aye; Williams, aye; Diehm, nay; Nawrocki, nay; Peterson, aye. 3ayes - 2 nays. Motion to amend carried. Nawrocki referred to the Ordinance indicating the City Clerk as a male. Hoeft stated that change can be made administratively. Motion to amend by Nawrocki to reinsert from the original Ordinance the limit of 100 sq. ft. and no more than two people sampling at one time. Peterson called for a second. Motion died for lack of a second. Nawrocki stated that he understands the restrictions on smokers and keeping smoke out of places as a good thing. This is discriminatory against others that can not allow people to smoke in their shops. The revision and amendments are losing the good parts of the original ordinance. Peterson stated that it is not discriminatory as they can not serve food in their shop. Upon vote of the original motion as amended: Kelzenberg, aye; Williams, aye; Diehm, aye; Nawrocki, nay; Peterson, aye. 4ayes - 1 nay. Motion carried. B. Bid Considerations -none C, Other Business -none ADMINISTRATIVE REPORTS Report of the City Manager (addressed at a later time) Report of the City Attorney -nothing to report CITIZENS FORUM Mayor Peterson. stepped out of the room. Council President Diehm opened citizen forum. Donna Schmitt stated that Mr. Tim Utz was given letter indicating he was in violation of a parking ordinance. She listed other vehicle types in violation of this ordinance. She stated that Mr. Utz removed any campaign information from the bus, so it is now only a recreational vehicle. You should consider sending a letter of apology and stop this harassment. He was given permission to park his City Council Minutes Monday, September 28, 2009 Page 9 of 14 bus on a private driveway, as the owner was not living there. Peterson stated this was brought about by neighbor complaints and it is a commercial weight. He did remove the signage. Hoeft asked Ms. Schmitt where her vehicle definition came from. She stated her husband. Hoeft stated that an enforcement officer has determined this to be a commercial vehicle and asked her if she has seen this letter. She indicated she had not. He cautioned her to obtain a copy of the letter before commenting to the Council. Fehst stated that Mr. Utz graciously agreed to remove the vehicle from the private driveway. We did receive complaints and we do enforcement based on complaints. We extended him allowance to park on 40th Avenue. Deb Johnson., 4626 Pierce Street, questioned if the 3`d Amendment extension would result in a loss of grant funding. Fehst stated no; the Met Council will be asked for an extension. With the lack of building because of the economy, others are in the same position as we are. Johnson questioned if Buffalo Wild. Wings will build there. Fehst stated no, but there are others interested in the site. City Manager's report Nawrocki referred to his failed motion to reduce the budget levy from 13.6 percent to 6 percent. He listed cities that are holding the line or will have tax decreases. He referred to Williams request for specific reductions. He was specific in reference to proposals for legal services and that we have three City Planners. He requested the City Manager come back with recommendations to accomplish the reduction of 13.6 to 6 percent or less. Fehst stated there are cities that have large increases due to the loss of State Aid. The City Council is determined to be free of state aid. Three percent of the levy has already been approved. This budget will begin the three year goal to be free of the need for State Aid. After that, if there are still State Aid funds, we could have dramatic decreases. Nawrocki stated that we must consider the ability of taxpayers to pay this. The public safety building is placed in the budget, but we went overboard on what we did there. We will need $750,000 a year for 20 years for principal and interest payments on the bonding. Nawrocki. stated that at the K-mart development (Grand Central Lofts) the EDA considered a significant change in the development by allowing the developer to look at increasing the number of units, decreasing the size of the units, and making them rentals. Fehst stated that Dave Kloiber made a presentation for luxury apartments at about $130 per square foot, market rate, with no tax increment or tax credit requested. This would increase the market value of the property. They would match the condo exteriors. Nawrocki stated adding rental units would. be downgrading what we are trying to do in the community. Fehst stated that these units would be luxury units and improve the community. Nawrocki stated that we have received promises from developers before. Nawrocki requested that the next City newsletter include changes to the refuse hauling contract, more full information on the proposed budget and the date of the budget hearing. He questioned the legal notice for public facility maintenance. Fehst stated that is for the cleaning service. Nawrocki questioned when the tree at 47'/2 Avenue would be trimmed. Peterson stated it is on the trimming schedule. Nawrocki repeated his request for an explanation of water testing standards. Nawrocki again requested information on Auto World's funding for park facilities. Nawrocki questioned east and west bound timing reduction of traffic lights along University and Central Avenues. Fehst stated that staff will check with MNDOT to see if changes have been made. Peterson stated that the statue fundraising pig roast was successful, taking in over $5,100. This Saturday, October 3, will be the dedication of our new Public Safety building, from 12:00 p.m. to 5:00 p.m. Remarks will be given at 12:30 p.m. and the raffle will be held at 3:00 p.m. Everyone is welcome to come and tour the building. City Council Minutes Monday, September 28, 2009 Page 10 of 14 Peterson stated "Don't forget our service men and women. Don't take ourselves too seriously and do a random act of kindness. ADJOURNMENT Mayor Peterson adjourned the meeting at 9:35 p.m. ~ ~~----- ^ I~ -~-.- atricia Muscovitz CMC Ci y Clerk ~ RESOLUTION N0.2009-i4S RESOLUTION APPROVING A THIRD AMENDMENT TO AMENDED AND RESTATED CONTRACT FOR PRIVATE REDEVELOPMENT BETWEEN THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY, THE CITY OF COLUMBIA HEIGHTS AND HUSET PARK DEVELOPMENT CORPORATION Section 1. Recitals. 1.01. The Columbia Heights Economic Development Authority ("Authority") has determined a need to exercise the powers of a housing and. redevelopment authority, pursuant to Minnesota Statutes, Sections. 469.090 to 469.108 ("EDA Act"), and is currently administering the Downtown CBD Redevelopment Project ("Redevelopment Project") pursuant to Minnesota Statutes, Sections 469.001 to 469.047 ("HRA Act"). 1.02. The Authority, the City and Huset Park Develapment Corporation (the ``Redeveloper") entered into a into an Amended and Restated Contract for Private Redevelopment dated as of August 1, 2007, as amended by a First Amendment thereto dated 3une l6, 2008 and a Second Amendment thereto dated as of February 9, 2009 (the "Contract"), setting forth the terms and conditions of redevelopment of certain property within the Redevelopment Project, generally located east of University Avenue and south. and west of Huset Park . 1.03. The parties have determined a need to modify the Contract in certain respects, and have caused to be prepared a Third Amendment to Amended and Restated Contract for Private Redevelopment (the "Amended Contract"). 1.04. The Council has reviewed the Amended Contract and finds that the execution thereof and performance of the City's obligations thereunder are in the best interest of the City and its residents. Section 2. Cit~pproval; Further Proceedings. 2.01. The Amended Contract as presented to the Council is hereby in all respects approved, subject to modifications that do not alter the substance of the transaction and that are approved by the Mayor and City Manager, provided that execution of the documents by such officials shall be conclusive evidence of approval. 2.02. The Mayor and City Manager are herebg~ authorized to execute on behalf of the City the Amended Contract and any documents referenced therein requiring execution by the City, and to carry out, on behalf of the City its obligations thereunder. RESOLUTION N0.2009-149 BEING A RESOLUTION ESTABLISHING AMOUNT OF CITY SHARE AND AMOUNT OF SPECIAL ASESSMENTS ON PROJECTS TO BE LEVIED WHEREAS, the City Council of the City of Columbia Heights by motion on the 10th day of August, 2009, ordered a special assessment hearing to levy the cost of improvements and; WHEREAS, the following projects will be specially assessed in October, 2009, and a portion of the costs may be borne by the city, NOW THEREFORE BE TT RESOLVED pursuant to Minnesota Statutes 429.061, and City Code 4.103, that the breakdown is as follows: PROJECT ESTIMATED ASSESSED ESTIMATED CITY PORTION PORTION TOTAL 2009 Street Rehabilitation and A11ey Reconstruction Project 0902 $114,500. $283,300. $397,800. 2009 Sheet Rehabilitation and Alley City Council Minutes Monday, September 28, 2009 Pa e I 1 of 14 Reconstruction Project 0902 General, State Aid, and Utility Funds $180,500. - $180,500. Zone 1C and 3B Street Seal Coat, Project 0901. $ 66,500. $ 55,100. $ 121,600. RESOLUTION 2009-150 RESOLUTION AUTHORIZING SUBMITAL TO THE METROPOLITAN COUNCIL FOR A THIRD EXTENSION FOR DEMONSTRATION GRANT NO. SG006-166 FOR THE 47T" AND CENTRAL PARKING RAMP Recitals Whereas, on December 13, 2006 the City of Columbia Heights was awarded a $974,369 grant from the Metropolitan Council. through the Livable Communities Demonstration Account, and Whereas, these funds were to be used for a portion of the costs to construct a parking ramp as part of a commercial and office development at 47`h and Central, and Whereas, due to economic considerations the subject project has not been constructed, and Whereas, the City received a second extension on March 11,2009 from the Metropolitan Council with a grant reduction to $ 760,008 and a project completion deadline of December 31, 2009, and Whereas, the City views that progress by the developer should ensure a project start date in 2010 with a completion date by 2011, NOW THEREFORE BE IT RESOLVED, the Columbia Heights City Council hereby agrees to the following: 1) The development of the commercial portion of the Grand Central Lofts project is critical to the City's revitalization of Central Ave., bolsters the redevelopment actions in the adjacent Sheffield neighborhood and will serve as a future catalyst to complete the Lofts housing plan. The City strongly encourages the Metropolitan Council to grant a third time extension to allow development to occur in 2010 with a final completion no later than 2011 RESOLUTION 2009-152 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 Fields (Hereinafter "License Holder"). Whereas, license holder is the legal owner of the real property located at 4149 Monroe 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 September 2, 2009 of an public hearing to be held on September 28, 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 June 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 September 2, 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 F9310 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 2009-154 City Council Minutes Monday, September 28, 2009 Page 12 of 14 Resolution of the City Council for 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 Leopoldo Villasenor (Hereinafter "Owner of Record"). Whereas, the owner of record is the legal owner of the real property located at 3957 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 September 14, 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 September 14, 2009 the Fire Department responded to a long grass complaint at the address listed above. Inspectors found. the structure unsecured and vacant/abandoned. The Fire Chief declared the building a nuisance in accordance with City Code and ordered an immediate abatement and that the building be secured. The property is on the City's abandoned. property list. The Fire Chief ordered DuAll Services to responded. to the scene and secure the building with plywood. 2. That on September 14, 2009 DuAll Services responded to the address and secured the building to prevent unauthorized access to the building. 3. That on September 14, 2009 the Fire Department sent statement of cause to all registered owners of the property at the addresses listed in the Anoka County Property Records database.. 4. 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: Approve the immediate abatement of the hazardous situation located at 3957 Polk Street N.E. S. 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(B}. CONCLUSIONS OF COUNCIL 1. That the property located at 39S 7 Polk Street N.E. is in violation of the provisions of the Columbia Heights Ciry 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 3957 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. RESOLUTION 2009-155 Resolution of the City Council for 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 ERA Muske (Hereinafter "Owner of Record"). Whereas, the owner of record is the legal owner of the real property located at 941 4S`h Avenue 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 September 3, 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 July 30, 2009 an inspection was conducted on the property listed above. Inspectors found three violations. A compliance order was sent via regular mail to the owner at the address. 2. That on September 3, 2009 inspectors re-inspected the property listed above. Inspectors noted that three violations remained uncorrected. A compliance order and statement of cause was mailed via regular mail to the owner listed in the property records. 3. That on September 21, 2009 inspectors reinspected the property and found that three violations remained uncorrected. 4. That based upon said records of the Fire Department, the following conditions and violations of City Codes(s) were City Council Minutes Monday, September 28, 2009 Page 13 of 14 found to exist, to wit: Shall repair garage door, shall replace missing storm windows, shall scrape and paint window trim 5. 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?06(A) and 8.206(6). CONCLUSIONS OF COUNCIL 1. That the property located at 941. 4~`h Avenue 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. OILDER OF COUNCIL 1. The property located at 941 45`'' Avenue 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. ORDINANCE NO. 1570 BEING AN ORDINANCE AMENDING ORDINANCE NO. 1490, CITY CODE OF 2005 RELATING TO THE U5E OF SMOKE SHOPS WITHIN THE CITY OF COLUMBIA HEIGHTS Section 1: The City of Columbia Heights does ordain: Chapter 5, Article III, Section 5.302 of the Columbia Heights City Code, is proposed to include the following: § 5.302 DEFINITIONS. Except as may otherwise be provided or clearly implied by context, all terms shall be given their commonly accepted definitions. For the purpose of this article, the following definitions shall apply unless the context clearly indicates or requires a different meaning. SAMPLING, TOBACCO. The lighting, inhalation, or combination thereof of tobacco, tobacco paraphernalia, or tobacco-related products for the purpose of testing a tobacco product prior to the sale of such product. SMOKE SHOP. A retail establishment that has obtained an appropriate license, in which greater that ninety percent (90%) of the business's gross revenue must be from the sale of tobacco, tobacco products or smoking related accessories. Chapter ~, Article III, Section 5.303 of the Columbia Heights City Code, is thereby amended to read as follows: § 5.303 LICENSE. (A} License required. No person shall sell or offer to sell any tobacco, tobacco products, or tobacco related device without first having obtained a Iicense to do so from the city. (B) Srnoke Shop License. No person shall operate a smoke shop without first having obtained a Smoke Shop License to do so from the city. At any given time, there shall be no more than five (5) Smoke Shops, all with appropriate licenses, throughout the city. Currently existing smoke shop establishments should be granted the first preference to renew their smoke shop license if they choose to do so. (C} ,4pplication. An application for a license to sell tobacco, tobacco products, or tobacco related devices shall be made on a form provided by the city. The application shall contain the full name of the applicant, the applicant's residential and business addresses and telephone mm~bers, the name of the business for which the license is sought, and any additional information the city deems necessary. Upon receipt of a completed application, the Clerk shall forward the application to the Police Department for a background and record check prior to formal review by the City Council. If the Clerk shall determine that an application is incomplete, he shall return the application to the applicant with notice of the information necessary to make the application complete. (D) Action. The City Council may either approve or deny the license, or it may delay action for such reasonable period of time as necessary to complete any investigation of the application or the applicant it deems necessary. if the City Council shall approve the license, the Clerk shall issue the license to the applicant. If the City Council denies the license, notice of the denial shall be given to the applicant along with notice of the applicant's right to appeal the City Council's decision. (E) Tema. All licenses issued under this article shall follow the calendar year with an expiration date of December 31 of each year and are not pro-rated. (F) Revocation or szrspension. Any license issued lender this article may be revoked or suspended as provided in § 5.313. (G) Transfers. All licenses issued under this article shall be valid only on the premises for which the license was issued and only for the person to whom the license was issued. Change of location or applicant will be required to be treated as a new applicant (H) Moveable place of business. No license shall be issued to a moveable place of business. Only fixed location businesses shall be eligible to be licensed under this article. (I) Display. All licenses shall be posted and displayed in plain view of the general public on the licensed premise. (J) Renewals. The renewal of a license issued under this section shall be handled in the same manner as the original application. The request for a renewal shall be made at least 30 days but no more than 60 days before the expiration of the current license. (K) Issuance as privilege and raot a right. The issuance of a license issued under this article shall be considered a privilege and not an absolute right of the applicant and shall not entitle the holder to an automatic renewal of the license. City Council Minutes Monday, September 28, 2009 Page 14 of 14 Chapter 9, Article I, Section 9.103 of the Columbia Heights City Code, is thereby amended to include the following: § 9,103 DEFINITIONS. For the purpose of this article, the following definitions shall apply unless the context clearly indicates or requires a different meaning. SAMPLING, TOBACCO. The lighting, inhalation, or combinafron thereof of tobacco, tobacco paraphernalia, or tobacco- related products for the purpose of testing a tobacco product prior to the sale of such product. SMOKE SHOP. A retail establishment that has obtained an appropriate license, in which greater that ninety percent (90%) of the business's gross revenue must be from the sale of tobacco, tobacco products or smoking related. accessories. Chapter 9, Article 1, Section 9.10 % (C')(48) of the Columbia Heights City Code, is thereby amended to read as follows: § 9.10'7 SPECIFIC DEVELOPMENT STANDARDS. (C) Specific development standa~~ds. The following uses are subject to specific development standards: (48} S/77GIZE S17G17S. (a} The smoke shop must have an entrance door opening directly to the outdoors. (b) Greater that ninety percent (90%) of the business's gross revenue must be from the sale of tobacco, tobacco products or smoking related accessories. (c) A tobacco department or section of any individual business establishment with any type of liquor, food or restaurant license shall not be considered a smoke shop. (d} The total nwnber ofCity-issued Smoke Shop Licenses shall. at no time exceed five (5). (e) Any existing smoke shops at the time of the passage of this ordinance shall comply fully with the ordinance by December 31, 2010. Section 2: This ordinance shall be in full force and effect from and after 30 days after its passage.