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HomeMy WebLinkAbout07/26/2010 OFFICIAL PROCEEDINGS CITY OF COLUMBIA HEIGHTS CITY COUNCIL MEETING JULY 26, 2010 The following are the minutes for the regular meeting of the City Council held at 7:00 p.m. on Monday, July 26, 2010 in the City Council Chambers, City Hall, 590 40th Avenue N.E., Columbia Heights, MN. CALL TO ORDER/ROLL CALL/INVOCATION Youth Pastor Brenna Zeimet, 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 Peterson removed items D and I from the Consent agenda. Nawrocki stated that the agenda was on the cable channel on Friday, but cable TV was off over the weekend. Do we know why? Fehst stated that the system is old and when rebooted, it crashes. We recognize that we need new digital equipment. Nawrocki requested to discuss the budget, a report on receiving the first half of our LGA payment, Hennepin and Anoka County reciprocal recycling agreement, expense policy for employees, and liquor store debt service. Nawrocki requested to remove F, G, and H from the Consent A2,enda. PROCLAMATIONS, PRESENTATIONS, RECOGNITION, ANNOUNCEMENTS, GUESTS A. Announcements Peterson stated that August 3 is National Night Out. There are 36 parties scheduled throughout our City. Peterson encouraged everyone to get out and meet their neighbors. Peterson stated that the 8 annual SACA charity softball game will be held on August 4 at Fluset Park. Funds and food donated will benefit SACA. The softball game will be between the Columbia Heights Police and Fire Departments and the Fridley Police and Fire Departments. This event is free to the public. Rick Johnson, SACA, stated this is a good fundraiser for them. The event used to be with the Post Office employees, but will now branch out to other communities that are serviced by SACA. CONSENT AGENDA City Manager Walt Fehst took the Council through the Consent Agenda items. A. Approve minutes of the July 12, 2010 City Council meeting. Motion to approve the minutes of the July 12, 2010 City Council meeting. B. Establish Canvass of the 2010 Primary Election for Thursday, August 12, 2010 at 6 p.m. Motion to establish the Canvass of the 2010 Primary Election results for Thursday, August 12, 2010 beginning at 6:00 p.m. in the City Council Chambers C. Accept minutes of the Columbia Heights Boards and Commissions Motion to accept the minutes of the July 15, 2010 Telecommunications Commission meeting. D. First Reading of Ordinance 1583, Cable Television Franchise Ordinance - removed City Council Minutes Monday, July 26, 2010 Page 2 of 13 E. Approve Transfer of Funds for Safe and Sober, CHHS, Unique Thrift, and Anoka - Hennepin Drug Task Force Overtime from General Fund to Police Dept. Budget Overtime Line #1020 Motion to transfer $1,152.62, the amount of money received from Coon Rapids as reimbursement for overtime worked from our participation on the Safe and Sober program; and $2,073.75, the amount of money received from Unique Thrift as reimbursement for overtime worked; and $323.75, the amount of money received from Independent School District #13 as reimbursement for overtime worked; and $2,000, the amount of money received from Anoka County as partial reimbursement for overtime worked by the CHPD officer in the Anoka - Hennepin Drug Task Force from the General Fund to the 2010 Police Department Budget line 1020, Overtime. F. Adopt Resolution 2010 -60, being a Resolution to approve acquisition of 3846 Tyler Street. removed G. Adopt Resolution 2010 -61, being a Resolution to approve acquisition of 4421 5th Street. removed H. Adopt Resolution 2010 -62, being a Resolution to approve acquisition of 1309 Circle Terrace. removed I. Approve Bid contract for the emergency removal of the "Root" building located at 3930 University Ave. - removed J. Approval of the attached list of rental housing applications. Motion to approve the items listed for rental housing license applications for July 26, 2010 in that they have met the requirements of the Property Maintenance Code. K. Approve Business License Applications Motion to approve the items as listed on the business license agenda for July 26, 2010 as presented. L. Approve payment of the bills Motion to approve payment of the bills out of the proper funds, as listed in the attached check register covering Check Number 135473 through 135669 in the amount of $1,410.400.19. Motion by Nawrocki, second by Kelzenberg, to approve the Consent Agenda items, with the exception of items D, F, G, H and I. Upon vote: All ayes. Motion carried. D. First Reading of Ordinance 1583, Cable Television Franchise Ordinance Steve Guzzetta, Cable Attorney, indicated the process of the negotiating team (Magee, Fehst, Nawrocki, and Guzzetta) working with Comcast to arrive at the proposed Ordinance 1583. We are currently operating with the existing contract, on a month to month basis, while in negotiations. Guzzetta indicated this is an excellent franchise agreement for a city this size. There will be a grant funds to replace current cable equipment. Guzzetta listed highlights of the proposed ordinance. There will be a capital grant of $194,842 for permitted purchases, such as new video equipment and institutional network construction to our liquor stores and public safety center. This should be enough to purchase and upgrade equipment in the control room, the council chambers, and some library equipment. Comcast will provide cabling for program transmission. This includes four channels for our use. One channel City Council Minutes Monday, July 26, 2010 Page 3 of 13 will be loaned to Comcast, but can be regained for public assess if we wish. There has been a lack of demand for public access program use. The peg fee was over $3 per customer for our local studio. There should be a significant savings with this removed. Technical quality should improve significantly with digital programming. Comcast will guarantee the quality. They are waiving the right to collect the unpaid peg fees of $7,840 from the City or subscribers. We negotiated a letter agreement with commitments from Comcast. They will transfer ownership of studio equipment to the city valued at $65,000. The city will transfer the equipment to the schools for a video curriculum and the city can use it for their productions. Comcast has agreed to pay $3,500 per location event to defray city costs of promoting a new channel position or signage. At no cost to the city, Comcast will interconnect with other Comcast systems to share programming. The peg fee to recover the cost will now be $2.57 and should drop to about $.85 per month for subscribers. They must provide a minimum of 200 channels to subscribers. We negotiated for Comcast to provide $69,842 for high speed connection to our liquor stores and public safety building. If constructed, the city would enter a separate agreement on data speed and needs. The cost should be about $2,000 per month or less, with exclusive use. Comcast will continue to provide free modem service to city hall, the library and the gym. Over the life of the franchise, the universal peg tier will be phased out. When Comcast goes to an all digital form it will not be possible to have a universal peg tier. Existing subscribers can continue, but no new subscribers will be allowed. Subscribers would have to pay five percent for basic service. Franchise fees will be five percent, including an audit. This is a five year agreement with a letter of credit. Comcast will provide a drop box for cable bills at the city liquor store on Central Avenue. Competitive equity was addressed. Williams asked if the capital grant was to be paid over the term of the contract. Guzzetta stated it would be paid up front for capital purposes. Nawrocki stated there were over 20 meetings held. He is not proud of what we ended up with, but felt we could not have gotten much better. He stated he was on the original franchise committee comprised of citizens. In the 1990`s Congress took away the ability of cities to require things they want in a franchise agreement. Nawrocki stated that Kathy Donnelly -Cohen is an able contract person, handling negotiations professionally. The capital grant is a misnomer as they give us the money and they charge the cable users, plus receive 4.5 percent interest. This is probably the best we can get, under the circumstances. It is proposed to provide copies of the agreement at ten different locations for public viewing. Nawrocki suggested a copy be available at city hall and the library by tomorrow. Guzzetta stated that the federal cap on the interest Comcast can collect is 11.25 percent. We negotiated this down to 4.5 percent. Diehm thanked those that served on the committee, but indicated disappointed that universal access will not be available to our residents. We need to look at other options to get our information to the public. Bob Odden, 1201 42 `/� Avenue, stated that he attended the Telecommunication meeting and is shocked the public channel is going away. People can't find the studio and it has old equipment. Money received should have been used to upgrade the studio equipment. This reduces the public's option. Some shows are redundant on both channels. Subscribers will pay for the grant monies and savings will be a wash for subscribers. Odden questioned if our liquor stores are profitable. Guzzetta stated the rates will go down through the reduced peg cost. There was little demand for a public access studio and channel. Columbia Heights was the last place in the metro area provided with public access. In other areas this service is transferred to a private service. City Council Minutes Monday, July 26, 2010 Page 4 of 13 Keeping this would have required a significant cost increase. If the city makes the resources available, public access can be available through one of the three channels. They can reclaim the fourth channel, or open the school for these purposes, or use general funds to lease and create a public channel. There is not a significant demand for this service. Nawrocki indicated that Comcast actually kept the studio open longer than anticipated because of our discussions. The studio has pretty good equipment. Originally Comcast wanted to sell the studio equipment, but we negotiated to retain it. Diehm questioned MTC4, which are full time operations and asked if there is a group that we could be part of. Guzzetta stated that the cost would be significant and the closest facilities are in Blaine, Roseville, and quad-cities in Anoka. They are funded by a joint powers consortium with significant peg fees. Fehst stated that we could contract for those services in the future if the council chose to do so. Our equipment was very good and serviceable until recently . Ted Arbeiter, 3754 Xerxes Avenue, Minneapolis, stated this is cutting the public out of the picture and it is content control. There are about 20 hours of programming at this point. There are people making use of this. There are barriers to access the facility and there is no signage. It will be hard to get public access back. Fehst stated that other cities do take a more aggressive public approach and he described the cost. The Council could set up something with Blaine. The cable company wants to be out from under this as no other cities do this. Magee stated we get information from the cable company on monthly basis. Only five programs are produced internally and 80 percent are external. Of the five programs produced, most were produced for the city. We do not feel justified to have a studio for the cost to the subscribers. Kathy Donnelly-Cohen, Director of Government Affairs for Comcast since 1987, indicated the different models around the metro. Some dedicate all of their franchise fees to their studio. Others use some franchise tees and peg grants. In this community all public access costs were provided by the company and the fee was spread over the 4,000 subscribers. We look at the report from the public access group and with only five programs produced the cost was about $2,500 each. Of the 81 programs produced externally, it was found that they bring their tapes to all the metro studios. This community's right-of-way fee is five percent and it is your right to use it as you want. The fact that subscribers will get a $2 decrease in their bill is significant. Public access is not a done deal. It was recommended to combine the school and library. but they will continue with their own channels. It is cable subscribers that support public access. This is a fair deal and done through a good working relationship. Nawrocki stated that we spoke to Minneapolis's Channel 6. We sought reasonable ways to keep public access. We negotiated to only borrow that channel to them and it is still available to us. Guzzetta stated that this is a only a five year franchise, so if there is a swell of support it can be addressed in the next renewal. Upon request, Comcast has to cease use of the channel and return to the city within 2 months. Tina Roinquist, 4244 Oak Crest Drive, Vandnis Heights, suggested viewing the Blaine facilities and others. They do on location shows of concerts in parks, school events, etc. Peterson stated that at first there was excitement about public programs. That has dwindled. We will continue to record city events for channel 16 and are we are not shutting the door. Peterson stated this committee has done a thorough job. Those that have worked on this for two years City Council Minutes Monday, July 26, 2010 Page 5 of 13 have negotiated where both sides have made concessions. He commended those that sat on the committee. We are tryi to save money for our taxpayers. Motion by Kelzenberg, second by Williams, to waive the first reading ofOrdinance 1503, a Cable Television Franchise Ordinance, there being ample copies available to the public. Upon vote: Alt ayes. Motion carried. Motion by Kelzenberg, second by Williams, 10 establish the second reading ofOrdinance 1583" for Monday, August 9, 2010, at approximately 7:00 p.m. in the City of Columbia Heights Council Chambers and to consider the approval and execution ofthe commitment letter afler the second reading of Ordinance 1503' Upon vote: All ayes. Motion carried. F. Adopt Resolution 2010-60. being a Resolution to approve acquisition of 3846 Tyler Street. Scott Clark, Community Development Director, indicated he would speak on items F, G, and D. These properties woutd be secured under the scattered housing prograrn approved by the Council in June of 2009. Clark described the properties and how they fit the program. Clark showed � t �t� properties purchase. This investors from band-aiding �b p�c ur�n o � propc �cnpropn�c for purc asc� �o would keep �uv�s ro ozu e property and renting out a substandard property. Clark stated that the Police Chief has indicated the advantages to purchase some properties in Circle Terrace to open up the area. The current fund balance iu about $lq0,0U0. Diehm read a portion of the police department memo on eliminating dilapidated properties. She referred to the property owner from that area that came before the Council requesting help to control the area as he is trying to keep a ood rental property. Clark stated that staff will continue to look at ways to improve this area. Nawrocki indicated that these properties should be presented to the Council prior to negotiating a deat. Nawrocki questioned paying $47,000 for this property and $39,000 for the property next to it. Clark indicated that we do not know the exact payoff, but it is estimated at $47,000. Clark indicated the reason to expedite this sale. Nawrocki questioned when the TIF ends. Clark stated at the end ofthis year. Nawrocki indicated his opinion on the use ofthese TIF funds. Fehst indicated that the Heritage Heights neighbors are pleased with the removal of blighted houses. Peterson stated that Council directed staff to do this and spoke of the advantages. To re-discuss this every time is ridiculous. We are on a pr ject to make this community a better place. Motion by Kelzenberg, second by Williams, to waive the reading of Resolution 2010-60 there being arnple copies available to the pubtic. Upon vote: All ayes. Motion carned. Motion by Kelzenberg, second by Williams, to adopt Resolution 2010-60" approving the acquisition of property located at 3846 Tyler Street NE; furthermore to authorize the Mayor and City Manager to enter into an agreement for the same. Williams called for the question. Upon vote: Kelzenberg, aye; Williams. aye; Diehm, aye; Nawrocki, abstain; Peterson, aye. 4 ayes, 1 abstention. Motion carried G. Adopt Resolution 2010-61. being a Resolution to approve acquisition of 4421 5th Street. Motion by Williams, second by Kelzenberg, to waive the reading of Resolution 2010-61, there being ample copies available to the public. Upon vote: All ayes. Motion carried. City Council Minutes Monday, July 26, 2010 Page 6 of 13 Motion by Williams. second by Kelzenberg, to adopt Resolution 2010 -61, approving the acquisition of property located at 4421 5th Street NE; furthermore to authorize the Mayor and City Manager to enter into an agreement for the same. Nawrocki questioned the cost to bring this house up to code. Clark stated that it would be in excess of $60,000 to $70,000 and this is only a 700 sq. ft. house. This is considered a "sick house ". Nawrocki asked why we turn the houses over to the EDA. Clark stated that they are the funding entity for this program. Nawrocki indicated that the funds from the sale of theses properties should be turned over to the city's general fund. Williams called for the question. Upon vote: Kelzenberg, aye; Williams, aye; Diehm, aye; Nawrocki, abstain; Peterson, aye. 4 ayes — 1 abstention. Motion carried. H. Adopt Resolution 2010 -62, being a Resolution to approve acquisition of 1309 Circle Terrace. Motion by Diehm, second by Kelzenberg to waive the reading of Resolution 2010 -62, there being ample amount of copies available to the public. Upon vote: All ayes. Motion carried. Motion by Diehm, second by Kelzenberg, to adopt Resolution 2010 -62, approving acquisition of property located at 1309 Circle Terrace; furthermore to authorize the Mayor and City Manager to enter into an agreement for the same. Nawrocki spoke against this, as this property looks better from the outside than the other homes in the area. Replacing this will not change the character of the neighborhood. Upon vote: Kelzenberg, aye; Williams, aye; Diehm, aye: Nawrocki, nay; Peterson, aye. 4 ayes — 1 nay. Motion carried. Fehst indicated the success of the program. We look at the worst of the worst for removals. Funds will be recovered when the market changes. 1. Approve Bid contract for the emergency removal of the "Root" building located at 3930 University Ave. Clark indicated there was a fire in this building in March and Community Development was given the task to demolish this property. The hazardous material had to be surveyed. The PCB content of the ash would have to be separated from the hard material and taken out of state. The alternative to accepting this bid is complicated and would result in additional dollars spent. Clark stated that abatement funds will be used. This is where the city fronts the money and it is charged back to the property. Bill Elrite, Finance Director, indicated that there are funds in the special assessment account (415), which are recouped from the property's tax. Nawrocki requested the fund balance. Staff will provide this information. Diehm stated this is disturbing as this is not a building we own and not a problem we caused, but we are required to pay to have this done. She explained that the costs are reclaimed through the tax rolls. Historically, this has been a problem property. Clark stated there was a grant on this property for a Phase I and lI retnediation plan. The developer was not able to give his 25 percent. We are working with the owners on this. Abatements go against the property and would have to be repaid if the property was sold. There is currently about $60,000 in assessments against the property. The demolition would add another $63,000. Diehm asked if there is more than one City Council Minutes Monday, July 26, 2010 Page 7 of 13 owner involved. Clark stated yes. Diehm gave the history of the assessments and then of the fire. Because of the environmental conditions we are forced to go in and clean up the property and hope to get reimbursed. Peterson stated that this Council has to take care of past mistakes. He referred to the industrial waste that we had to clean up in the Huset area. We are correcting the ills and bad behavior of people of the past. We do take some hits, but need to in order to improve our community. Williams indicated that the Viet bid is very reasonable compared to the other bids. Motion by Williams, second by Kelzenberg, to approve a demolition contract for the building located at 3930 University Avenue to Veit and Company in the amount of $63,449 and further authorize the Mayor and City Manager to enter into an agreement for the same. Nawrocki stated that fund 415 has a fund balance of $1.7 million dollars. Clark stated that there is approximately $200,000 of debt on this property and there are three buildings there. This is for the emergency abatement on one of the buildings. Upon vote: Kelzenberg, aye; Williams, aye; Diehm, aye; Nawrocki, aye; Peterson, aye. All ayes. Motion carried. PUBLIC HEARINGS A. Adopt Resolutions 2010 -56. 675 47th Avenue N.E., and 2010 -57. 841 49th Avenue N.E. being declarations of nuisance and abatement of violations within the City of Columbia Heights. Fire Chief Gary Gorman indicated the nuisance issues on the properties. Diehm indicated staff has worked with the owners since April and May to no result. Motion by Nawrocki, second by Diehm, to close the public hearing and to waive the reading of Resolution Numbers 2010 -56, and 57 there being ample copies available to the public. Upon vote: All ayes. Motion carried. Motion by Nawrocki, second by Diehm, to adopt Resolution Numbers 2010 -56, and 57 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. B. Adopt Resolutions 2010 -58, 4333 Washington Street N.E., and 2010 -59, 4606 -08 4th 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 indicated the failure to submit rental license fees and schedule inspections for both properties. Motion by Nawrocki, second by Williams, to close the public hearing and to waive the reading of Resolution Numbers 2010 -58, and 59 there being ample copies available to the public. Upon vote: All ayes. Motion carried. Motion by Nawrocki, second by Williams, to adopt Resolution Numbers 2010 -58, and 59 being Resolutions approving revocation pursuant to City Code, Chapter 5A, Article IV, Section 5A.408(A) of the rental licenses listed. Upon vote: All ayes. Motion carried. Miscellaneous City Council Minutes Monday, July 26, 2010 Page 8 of 13 Diehm asked the Council to consider moving the citizen forum portion up on the agenda to accommodate residents that wish to speak. Peterson stated that could be considered, but it must be understood that there may not be an immediate answer and there is the option to take the item under advisement. It was put in the current location in consideration of those that take the time to have their item placed on the agenda. We would be fiiiit on a time limit. Diehm indicated that there are also citizens that watch on TV and then come to the meeting to comment. Peterson indicated this should be discussed at a work session meeting. ITEMS FOR CONSIDERATION A. Other Ordinances and Resolutions - none B. Bid Considerations - none C. New Business and Reports - none ADMINISTRATIVE REPORTS Report of the City Manager Fehst listed items for the August 2 work session: three Charter Commission changes, Six Cities Waste Management format change, Huset Park round -about art, payment for expenses, and citizen's forum placement on the agenda. Fehst stated that the budget will be submitted at the second meeting in August. We are under a plan to get off of local government aid. Nawrocki spoke on the LMC Fiscal Futures committee regarding finances in the State of Minnesota. Because of economic issues, we should look at budget decreases. Fehst stated this LMC article shows that we can not depend on the State. There are ways to facilitate a lesser increase this year. We will lose the aid and this is proof positive. Nawrocki referred to cutting back on expenditures and questioned if we received our LGA payment. Elrite stated that we received the amount we were scheduled to receive. Nawrocki asked the specific amount. Diehm indicated that if Councilmember Nawrocki had asked for this information earlier staff could have had it available for this meeting. Nawrocki requested that the recycling agreement between counties be researched. Nawrocki commented on the debt service for the liquor operation. Report of the City Attorney — nothing to report CITIZENS FORUM Deb Johnson, 4626 Pierce Street, questioned what personal interest Councilmember Nawrocki has on the Tyler and 5` Street properties, as he chose to abstain from the vote, yet voted no on the Circle Terrace property. Nawrocki stated that he felt the Circle Terrace building could be rehabbed and abstained on the Tyler property because there was not a definite amount given. Johnson indicated that an abstention is only to be used for conflict of interest. Johnson indicated that there were "plants" in the audience regarding the cable franchise. She stated her pleasure that the Mayor indicated the long process to get to this point. Johnson indicated that it is good for people to come and see the entire Council meeting. They can wait until the end of the meeting to speak. Dwayne Morrell, 4212 Reservoir Boulevard, supported purchase and removal of blighted homes. He indicated that he initially suggested a bond issue of $10 to $20 million be voted on by the public to support this. Morrell questioned if Walgreens is being compensated for the pedestrian bridge intrusion on their property. Fehst stated yes, for construction on the right -of -way. City Council Minutes Monday, July 26, 2010 Page 9 of 13 ADJOURNMENT Peterson stated: Don't forget our service men and women. Patty's son, Kyle, is finaily back from Afghanistan. Don't take ourselves too seriously, and do a random act of kindness. Peterson adjourned the meeting at 9:50 p.m. Patricia Muscovitz CMC City Clerk RESOLUTION NO. 2010-60 RESOLUTION AUTHORIZING EXECUTION OF A PURCHASE AGREEMENT FOR CERTAIN REAL PROPERTY LOCATED AT 3846 TYLER STREET NORTHEAST IN THE CITY AND ASS1GNMENT THEREOF TO THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY BE IT RESOLVED By the City Council (the "Council") of the City of Columbia Heights, Minnesota (the "City") as follows: Section 1. Recitals. 1.01. The Columbia Heights Economic Development Authority (the "Authority") administers the Downtown CBD Redevelopment Project (the "Project") within the City, which was established under Minnesota 3uxutea, Sections 469.001 to 469.047 (the ^'BK/\&ct'). 1.02. The Authority has undenaken a pnoeram to acquire homes in the Project in order to address foreclosure problerns and remediate and prevent the emergence ofblight. 1.03. The City, as a state public body under Section 464.041 of the HRA Act, is authorized to make contributions to the Project. 1.04. In order to acquire certain properties in a timely fashion, the City has determined to assist with such acquisitions by negotiating with sellers and entering into purchase agreements on behalf of the Authority. 1.05. City staff have negotiated o Real Estate Purchase Agreement with Larry Bieman (the ^^8cUcr`) dated aaofJuly 23 ent"), for real property located at 3846 Tyler Stree Northeast and legaily described as follows: Lot 6, Block 4, Waltons Subdivision of Reservoir Hilis (the "Property"). which Purchase A.greement is contingent upon approval by the City Council. 1.86. The City intends to assign its interests in the Purchase Agreement to the Authority, contingent only upon acceptance by the Authority ofsuch assignment. 1.07. The Purchase Agreement has been prepared and submitted and is on file with the City Manager. Section 2. Approval and Assignment. 2.01. The Purchase Agreement for the Property is hereby approved, and the execution of the Purchase Aueement by the City is hereby ratified. Pursuant to the Purchase &grccment, the City will purchase the Property for up to $50.000. City staff and officials are authorized and directed to take all such other actions to complete the purchase of the Property, including without limitation execution of all documents and a2reements related to such transaction. 2.02. Contingent upon approval of the Authority, the City hereby assigns its interests in the Purchase Agreement to the Authority. City staff and officials are authorized and directed to take all such other actions to complete the assignment ofthe City's interests in the Purchase Agreement to the Authority, including without limitation execution of any documents and agreements necessary to effectuate such assignment. RESOLUTION NO. 2010-61 RESOLUTION AUTHORIZING EXECUTION OF A PURCHASE AGREEMENT FOR CERTAIN REAL PROPERTY LOCATED AT 4421 5th STREET NORTHEAST IN THE CITY AND ASSIGNMENT THEREOF TO THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY BE IT RESOLVED By the City Council (the "Council") of the City of Columbia Heights, Minnesota (the "City") as hol lows Section 1. Recitals. 1.01. The Columbia Heights Economic Development Authority (the "Authority") administers the Downtown CBD Redeveloprnent Project (the "Project") within the City, which was established under Minnesota Statutes, Sections 469.001 to 469.O47 (the ^^BRA&ct`). 1.02. The Authority has undertaken a program to acquire homes in the Project in order to address foreclosure problems and rcmcdiutcond prevent the emergence oyblight. City Council Minutes Monday, July 26, 2010 Page 10 of 13 1.03. The City, as a state public body under Section 469.041 of the HRA Act, is authorized to make contributions to the Project. 1.04. In order to acquire certain properties in a timely fashion, the City has determined to assist with such acquisitions by negotiating with sellers and entering into purchase agreements on behalf of the Authority. 1.05. City staff have negotiated a Real Estate Purchase Agreement with RVM Inc/ The Relocation Center (the "Seller ") dated as of July 17, 2010, including all related addenda and disclosures thereto (collectively, the "Purchase Agreement "), for real property located at 4421 5th Street Northeast and legally described as follows: Lot 21, Block 18, Columbia Heights Annex (the "Property"), which Purchase Agreement is contingent upon approval by the City Council. 1.06. The City intends to assign its interests in the Purchase Agreement to the Authority, contingent only upon acceptance by the Authority of such assignment. 1.07. The Purchase Agreement has been prepared and submitted and is on tile with the City Manager. Section 2. Approval and Assignment. 2.01. The Purchase Agreement for the Property is hereby approved, and the execution of the Purchase Agreement by the City is hereby ratified. Pursuant to the Purchase Agreement, the City will purchase the Property for $39,900. City staff and officials are authorized and directed to take all such other actions to complete the purchase of the Property, including without limitation execution of all documents and agreements related to such transaction. 2.02. Contingent upon approval of the Authority, the City hereby assigns its interests in the Purchase Agreement to the Authority. City staff and officials are authorized and directed to take all such other actions to complete the assignment of the City's interests in the Purchase Agreement to the Authority, including without limitation execution of any documents and agreements necessary to effectuate such assignment. RESOLUTION NO. 2010-62 RESOLUTION AUTHORIZING EXECUTION OF A PURCHASE AGREEMENT FOR CERTAIN REAL PROPERTY LOCATED AT 1309 CIRCLE TERRACE BLVD NORTHEAST IN THE CITY AND ASSIGNMENT THEREOF TO THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY BE IT RESOLVED By the City Council (the "Council ") of the City of Columbia Heights, Minnesota (the "City") as follows: Section 1. Recitals. 1.01. The Columbia Heights Economic Development Authority (the "Authority ") administers the Downtown CBD Redevelopment Project (the "Project ") within the City, which was established under Minnesota Statutes, Sections 469.001 to 469.047 (the "HRA Act "). 1.02. The Authority has undertaken a program to acquire homes in the Project in order to address foreclosure problems and remediate and prevent the emergence of blight. 1.03. The City, as a state public body under Section 469.041 of the HRA Act, is authorized to make contributions to the Project. 1.04. In order to acquire certain properties in a timely fashion, the City has determined to assist with such acquisitions by negotiating with sellers and entering into purchase agreements on behalf of the Authority. 1.05. City staff have negotiated a Real Estate Purchase Agreement with Federal National Mortgage Association (the "Seller ") dated as of July 15, 2010, including all related addenda and disclosures thereto (collectively, the "Purchase Agreement "). for real property located at 1309 Circle Terrace Blvd Northeast and legally described as follows: Lot 9 Block 1 Circle Terrace 2" Subdivision (the "Property"), which Purchase Agreement is contingent upon approval by the City Council. 1.06. The City intends to assign its interests in the Purchase Agreement to the Authority, contingent only upon acceptance by the Authority of such assignment. 1.07. The Purchase Agreement has been prepared and submitted and is on file with the City Manager. Section 2. Approval and Assignment. 2.01. The Purchase Agreement for the Property is hereby approved, and the execution of the Purchase Agreement by the City is hereby ratified. Pursuant to the Purchase Agreement, the City will purchase the Property for $89,900. City staff and officials are authorized and directed to take all such other actions to complete the purchase of the Property, including without limitation execution of all documents and agreements related to such transaction. 2.02. Contingent upon approval of the Authority, the City hereby assigns its interests in the Purchase Agreement to the Authority. City staff and officials are authorized and directed to take all such other actions to complete the assignment of the City's interests in the Purchase Agreement to the Authority, including without limitation execution of any documents and agreements necessary to effectuate such assignment. RESOLUTION 2010 -56 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 11, of City Code, of the property owned by Carlos Morales (Hereinafter "Owner of Record "). City Council Minutes Monday, July 26, 2010 Page 11 of 13 Whereas, the owner of record is the legal owner of the real property located at 675 47 Avenue N.E. Columbia Heights, Minnesota. And whereas, pursuant to Columbia Heights Code, Chapter 8, Article 11, 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 May 27, 2010. 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 April 27, 2010 an inspection was conducted on the property listed above. Inspectors found violations. A compliance order was sent via regular mail to the owner at the address. 2. That on May 27, 2010 inspectors reinspected the property listed above. Inspectors noted that 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 June 8, 2010 a extension was requested and granted. 4. That on July 8, 2010 inspectors reinspected the property and found that violations remained uncorrected. 5. That based upon said records of the Fire Department, the following conditions and violations of City Codes(s) were found to exist, to wit: Shall sod/seed/landscape bare areas of yard. 6. 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 675 47 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. ORDER OF COUNCIL I. The property located at 675 47 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. RESOLUTION 2010 -57 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 Michael Plemel (Hereinafter "Owner of Record "). Whereas, the owner of record is the legal owner of the real property located at 841 49 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 June 30, 2010. 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 May 17, 2010 an inspection was conducted on the property listed above. Inspectors found violations. A compliance order was sent via regular mail to the owner at the address. 2. That on June 30, 2010 inspectors reinspected the property listed above. Inspectors noted that 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 July 16, 2010 inspectors reinspected the property and found that violations remained uncorrected. 4. That based upon said records of the Fire Department, the following conditions and violations of City Codes(s) were found to exist, to wit: Shall replace the missing/rotted soffits /fascia on the garage and shall cut down /remove all /any tall grass and /or weeds (SCRUB GROWTH AND DISPOSE OF BRUSH) throughout the property. 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 8.206(A) and 8.206(B). CONCLUSIONS OF COUNCIL 1. That the property located at 841 49 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 City Council Minutes Monday, July 26, 2010 Page 12 of 13 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 841 49` 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. RESOLUTION 2010 -58 Resolution of the City Council for the City of Columbia Heights approving revocation pursuant to City Code, Chapter 5A, Article IV, Section 5A.408(A) of that certain residential rental license held by Dan Krick (Hereinafter "License Holder "). Whereas, license holder is the legal owner of the real property located at 4333 Washington Street N.E. Columbia Heights, Minnesota, Whereas, pursuant to City Code, Chapter 5A, Article IV, Section 5A.408(B), written notice setting forth the causes and reasons for the proposed Council action contained herein was given to the License Holder on July 2, 2010 of an public hearing to be held on July 26, 2010 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 May 15, 2010, 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 July 2, 2010 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 5A, Article 111 5A.306 and 5A.303(A). ORDER OF COUNCIL 1. The rental license belonging to the License Holder described herein and identified by license number F9785 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 45 days from the first day of posting of this Order revoking the license as held by License Holder. RESOLUTION 2010 -59 Resolution of the City Council for the City of Columbia Heights approving revocation pursuant to City Code, Chapter 5A, Article IV, Section 5A.408(A) of that certain residential rental license held by Larry Wakeman (Hereinafter "License Holder "). Whereas, license holder is the legal owner of the real property located at 4606 -08 4 Street N.E. Columbia Heights, Minnesota, Whereas, pursuant to City Code, Chapter 5A, Article IV, Section 5A.408(B), written notice setting forth the causes and reasons for the proposed Council action contained herein was given to the License Holder on July 6, 2010 of an public hearing to be held on July 26, 2010. 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 May 15, 2010, 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 July 2, 2010 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 and failure to schedule an annual rental relicensing 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 5A, Article III 5A.306 and 5A.303(A). City Council Minutes Monday, July 26, 2010 Page 13 of 13 ORDER OF COUNCIL 1. The rental license belonging to the License Holder described herein and identified by license number F9832A 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 45 days from the first day of posting of this Order revoking the license as held by License Holder.