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Home My WebLink About05/07/2012 Work Session IT OF COLUMBIA HEIGHTS Mayor Gary L.Peterson C ouncilm embers Robert A. Williams 590 40th Avenue NE,Columbia Heights,MN 55421-3878 (763)706-3600 TDD(763)706-3692 Bruce haw ncki Visit our website at:www.ci.eolumbia-heightsann.us Tammera Diehm Dolma Schmitt City Manager Wailer R.Fehst ADMINISTRATION NOTICE OF CITY COUNCIL MEETING to be held in the CITY OF COLUMBIA HEIGHTS as follows: Meeting of: COLUMBIA HEIGHTS CITY COUNCIL Date of Meeting: MAY 7, 2012 Time of Meeting: 7:00 P.M. Location of Meeting: CONFERENCE ROOM 1 Purpose of Meeting: WORK SESSION 1. Second hand goods stores 2. Chickens 3. Loan for Jimmy's Pool Hall 4. Reimbursements to Council members - discussion 5. Council Corner- discussion The City of Columbia Heights does not discriminate on the basis of disability in the admission or access to, or treatment or employment in, its services, programs, or activities. Upon request, accommodation will be provided to allow individuals with disabilities to participate in all City of Columbia Heights' services, programs, and activities. Auxiliary aids for handicapped persons are available upon request when the request is made at least 96 hours in advance. Please call the City Clerk at 763-706-3611 to make arrangements. (TDD/706-3692 for deaf or hearing impaired only) MEMORANDUM To: Mayor Peterson, City Council Members From: Scott Clark, Community Development Director Re: May 7, 2012 Work Session Items Date: May 3, 2012 Secondhand Stores Staff would like to discuss the possibility of amending the Zoning Code as it relates to secondhand stores. We have recently been approached by a prospective business owner who would like to open up an "occasional store", in which items would be collected and restored throughout the first part of the month and then sold in a week-long sale. These items would include home decor, furniture, antiques, paintings, etc. The Zoning Code currently does not differentiate between this type of business and a thrift store, and would require this use to locate no closer than 3,000 feet from all existing secondhand stores, pawn shops, currency exchanges and precious metals dealers. Effectively, the proposed business would not be allowed to locate in Columbia Heights because it would be unable to meet this requirement. When looking further into this matter, it was noted that the Zoning Code would also preclude all antique stores and other secondhand stores such as Half Priced Books, Play it Again Sports, Second Swing, Plato's Closet, and Once Upon a Child from locating within 3,000 feet of any other secondhand store, pawn shop, currency exchange, or check cashing business. Staff feels that there is merit in an ordinance change that would allow for these types of secondhand stores while still regulating the larger thrift stores. The Raising of Chickens Staff has received a number of calls asking about City restrictions on the raising of chickens. The Zoning Code and Municipal Code do not specifically address this issue. The City Attorney's interpretation is that chickens are livestock and can be placed in the same category as cows, horses, sheep, pigs, etc. These animals are allowed only in agriculturally zoned properties, and since Columbia Heights does not have any agriculturally zoned property, then they (including chickens)would not be allowed. Staff would like the City Council to address whether we should or shouldn't allow the raising of chickens in residential zones. Either way, Staff feels that it is necessary to amend the existing ordinances to clarify the issue. CITY OF COLUMBIA HEIGHTS To: Mayor and City Council Walt Fehst, City Manager From: Scott Clark, Community Development Director Date: May 1,2012 Re: Jimmy's Pool Hall Loan In January of 2011 a new partnership at Jimmy's Pool Hall approached the City to assist them in paying for Sewer Availability Charges in the amount of$26,760. They had not anticipated this amount when they did $100,000 in improvements in 2010/2011. In turn, the City agreed to a loan of$26,760, paid back in two years, with the provisions as stated in the attached January 24, 2011 Council report. It is important to remember that the City did not provide the loan with cash, but with existing SAC credits that are monetized when new developments occur in the City. At the present time, the loan is current and including the down payment, $16,676 has been paid on the principal. The City has been informed that the new partnership has been dissolved and that all obligations for the business, to date, have been paid. The ownership stated to staff that the payment of obligations have left them with a cash flow problem, coupled with the business going into the slowest part of the year. As such, they are asking for a restructuring of the loan to have no payments starting in May with the loan payment schedule restarting in September(the 2% interest remains on the loan and would be recomputed for the additional loan tend). Staff is recommending approval of the loan restructure, in part, that a good faith effort has been made with 62% of the loan having been repaid. If payments are not restarted in September the City has the option to call the loan through the special assessment process. CITY COUNCIL LETTER Meeting of: January 24, 2011 AGENDA SECTION: ORIGINATING DEPT.: CITY MANAGER NO: Community Development APPROVAL ITEM: Resolution #2011-03-Contract For Sewer BY: BY: Scott Clark Availability Charge Time Payment DATE: January 20, 2011 Agreement—4040 Central Ave. Background Information: The owner of Jimmy's Pool Hall, 4040 Central Ave., has developed a new partnership and business model for the subject site. In 2010 it was determined that the success of this business was based on developing league play, and in order to accomplish this, a wine/beer license was necessary and was issued by the Council in December 2010. This license triggered the need for a restaurant with a seating capacity of 75 seats. This became problematic as this in turn, triggered the need,per the Building Code, that the building be sprinkled. In the end the building improvements, fixtures, etc. totaled almost $100,000, which has been completed. However, this cost did not include the payment for sewer availability charges (SAC), which totaled $26, 760. Part of the reason for this large amount is that both the new restaurant was calculated, and the entire gaming area, as this latter building space had never paid SAC fees. The issue at hand is that the renovation budget never factored in this large of a charge and the owner is seeking some type of remedy from the City. It is critical to note that remedy does not mean forgiveness of the obligation. City staff is recommending that the city front the payment, to the Metropolitan Council by the use of City-wide SAC credits, not a cash payment. An explanation of these credits (which is complicated) and policies for their use once capitalized, was discussed at the March 8, 2010 Council meeting with a responding resolution (both attached). Staff is making this recommendation, in part, due to the fact that the owner has committed and spent the dollars for the building renovation. The proposed remedy is for the owner to pay the obligation within a two- year time period as detailed in the attached Agreement. Effectively there are four parts to this 1) 10% down of the original principal owed 2) A $1,000 per month payment(principal paid over a two-year time period) and 3)A final payment that covers a deferred 2% interest charge. The fourth part is how the payments are secured. The SAC payment is being handled as a"local improvement" under the MSA 429 process, and as such, if non- payment occurs per the Agreement, the Council can specially assess the project. The City Attorney has reviewed the Agreement and remedies. Recommendation: Staff recommends the subject Agreement as written Recommended Motion: Move to waive the reading of Resolution#2011-03 there being ample copies for the public. Move to adopt Resolution#2011-03-"Resolution Authorizing the City to Enter Into A Contract For Sewer Availability Charge Time Payment Agreement-4040 Central Avenue". Attachments: Resolution#2011-03 City Council Action Letter March 8,2010 and Resolution#2010-12 Contract Agreement Dated January 25,2011 Agreement of Assessment and Waiver of irregularity and Appeal COUNCIL ACTION: