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07-10-2017 CCP
CH COLUMBIA HEIGHTS City of Columbia Heights 590 40th Avenue NE, Columbia Heights, MN 55421 -3878 (763) 706 -3600 TDD (763) 706 -3692 Visit our website at: www.columbiaheightsmn.gov Mayor Donna Schmitt Councilmembers Robert A. Williams John Murzyn, Jr. Connie Buesgens Nick Novitsky City Manager Wolter R. Fehst The following is the agenda for the regular meeting of the City Council to be held at 7:00 PM on Monday, July 10, 2017 in the City Council Chambers, City Hall, 590 40th Avenue N.E., Columbia Heights, Minnesota. 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 disabled 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.) CALL TO ORDER 2. ROLL CALL 3. INVOCATION Invocation provided by Dan Thompson, Heights Church 4. PLEDGE OF ALLEGIANCE ADDITIONS /DELETIONS TO MEETING AGENDA (The Council, upon majority vote of its members, may make additions and deletions to the agenda. These may be items brought to the attention of the Council under the Citizen Forum or items submitted after the agenda preparation deadline.) 6. PROCLAMATIONS, PRESENTATIONS, RECOGNITION, ANNOUNCEMENTS, GUESTS pg 4 A. Resolution encouraging the people of the City of Columbia Heights to attend the grand opening of the Minnesota State Capitol. 7. CONSENT AGENDA (These items are considered to be routine by the City Council and will be enacted as part of the Consent Agenda by one motion. Items removed from consent agenda approval will be taken up as the next order of business.) A. Approve Minutes of the City Council MOTION: Move to approve the minutes of the City Council meeting of June 26, 2017 pg 5 MOTION: Move to approve the minutes of the City Council work session of June 26, 2017 pg 19 B. Accept Board and Commission Meeting Minutes MOTION: Move to accept the Library Board meeting minutes from June 7, 2017 pg 20 MOTION: Move to accept the Planning & Zoning Commission meeting minutes from June 6, 2017 pg 22 City of Columbia Heights City Council Agenda July 10, 2017 Page 2 C. Resolution 2017 -74 approving Plans and Specifications and ordering Advertisement for pg 36 Bids for 2017 State Aid Street Rehabilitation, City Project 1705 MOTION: Move to waive the reading of Resolution 2017 -74, there being ample copies available to the public. MOTION: Move to adopt Resolution 2017 -74 approving Plans and Specifications and ordering Advertisement for Bids for 2017 State Aid Street Rehabilitation, City Project 1705. pg 38 D. Resolution 2017 -75 approving Plans and Specifications and ordering Advertisement for Bids for 40th Avenue Storm Sewer Improvements and Street Rehabilitation, City Project 1706 MOTION: Move to waive the reading of Resolution 2017 -75, there being ample copies available to the public. MOTION: Move to adopt Resolution 2017 -75 approving Plans and Specifications and ordering Advertisement for Bids for 401h Avenue Storm Sewer Improvements and Street Rehabilitation, City Project 1706. E. Parkview Villa South Fund 213 Balance Designation pg 40 MOTION: Move to waive the reading of Resolution 2017 -76, there being ample copies available to the public. MOTION: Move to approve Resolution No. 2017 -76, a resolution authorizing change in fund balance designation for Parkview Villa funds. F. Accept proposals and award contract for Circle Terrace Park Building, City Project 1609 pg 42 MOTION: Move to award Circle Terrace Park Building construction, Project 1609, contingent on additional funding from Anoka County, to the firm of Cobra Construction based upon their based upon their low, qualified, responsible bid in the amount of $418,527 and accepting Alternates 1 and 2, for a total cost of $375,839 from Fund 412 - 51609 -5185; and, furthermore, to authorize the Mayor and City Manager to enter into a contract for the same G. Approve Business License Applications pg 46 MOTION: Move to approve the items as listed on the business license agenda for July 10, 2017. H. Payment of Bills MOTION: Move that in accordance with Minnesota Statute 412.271, subd. 8, the City Council has pg 48 received the list of claims paid covering check number 166349 through 166531 in the amount of $410,561.84. MOTION: Move to approve the Consent Agenda items. 8. PUBLIC HEARINGS A. Adopt Resolution for Emergency Abatement, 5001 5th St NE pg 56 MOTION: Move to close the public hearing and to waive the reading of Resolution Number 2017 -73, being ample copies available to the public. MOTION: Adopt Resolution 2017 -73, being declarations of nuisance and emergency abatement of violations within the City Council of the City of Columbia Heights regarding property 5001 5th St N.E. City of Columbia Heights City Council Agenda July 10, 2017 Page 3 B. A Minor Subdivision for the property located at 2112 43rd Ave NE. pg 59 MOTION: Move to waive the reading of Resolution No. 2017 -72, there being ample copies available to the public. MOTION: Move to approve Resolution No. 2017 -72, approving the minor subdivision of the property located at 2112 43rd Avenue NE., subject to certain conditions of approval. C. Economic Development Authority Tax Levy Increase pg 80 MOTION: Move to open the public hearing regarding Resolution 2017 -56, a resolution authorizing a tax levy increase by the City of Columbia Heights for economic development purposes. MOTION: Move to close the public hearing. D. Consideration of the 47th and Grand TIF District pg 85 MOTION: Move to waive the reading of Resolution 2017 -77, there being ample copies available to the public. MOTION: Move to adopt Resolution 2017 -77, a resolution adopting a modification to the Development Program for the Downtown Central Business Redevelopment Project, establishing the 47th and Grand Tax Increment Financing District therein and adopting of a Tax Increment Financing Plan therefor. 9. ITEMS FOR CONSIDERATION A. Other Ordinances and Resolutions a. Accepting Bids and Awarding a Contract for the Abatement and Demolition pg 120 MOTION: Move to waive the reading of Resolution 2017 -78, there being ample copies available to the public. MOTION: Move to approve resolution 2017 -78, being a resolution authorizing execution of a Work Agreement for the abatement and demolition of residential structures by and between Kamish Excavating, Inc B. Bid Considerations C. New Business and Reports 10. ADMINISTRATIVE REPORTS Report of the City Council Report of the City Manager Report of the City Attorney 11. CITIZENS FORUM At this time, citizens have an opportunity to discuss with the Council items not on the regular agenda. Citizens are requested to limit their comments to five minutes. Anyone who would like to speak shall state his /her name and address for the record. 12. ADJOURNMENT Kelli Bourgeo Human Resource Director /Assistant to the City Manager RESOLUTION NO. 2017 -79 RESOLUTION ENCOURAGING THE PEOPLE OF THE CITY OF COLUMBIA HEIGHTS TO ATTEND THE GRAND OPENING OF THE MINNESOTA STATE CAPITOL WHEREAS, the Capitol of the State of Minnesota is having a Grand Opening celebration on August 11, 12, and 13, 2017. WHEREAS, Governor Mark Dayton has asked that the mayor and the people from the city of Columbia Heights, Minnesota come to Saint Paul and celebrate the Grand Opening of the Minnesota State Capitol. WHEREAS, the Grand Opening celebration is following the four year, $310 million dollar restoration project that has returned the Capitol to its former glory and will position the building to be able to meet the needs of the public for another 100 years with improved functionality. WHEREAS, the Capitol was designed and built by Minnesota's native son, Cass Gilbert, and the architectural design elements of Cass Gilbert's work were among the most important aspects of the restoration. WHEREAS, during the Grand Opening there will be concerts, lectures, exclusive access tours, fireworks and much snore. The events will be interesting, educational, and fun and were created to entertain Minnesotans from across the state of Minnesota. WHEREAS, when the Capitol building originally opened in 1905 there was not a celebration, making this the first ever Grand Opening of the Minnesota State Capitol. WHEREAS, the Minnesota State Capitol Building is the People's House. It is important to the State of Minnesota that Minnesotans use their State Capitol in ways that are meaningful to them, and that the Capitol is a place where all people feel at home. WHEREAS, The Grand Opening of the State Capitol Building is an opportunity to invite Minnesotans back to the Capitol and for them to get familiarized with their newly restored space. RESOLVED, the city of Columbia Heights on behalf of the Governor of the State of Minnesota, encourages the people of the city to attend the Grand Opening of the Minnesota State Capitol August 11, 12, and 13, 2017. Passed and Adopted by the Council on this 10th day of July, 2017 CITY OF COLUMBIA HEIGHTS By: Donna. Schmitt, Mayor ATTEST: By: Katie Bruno, City Clerk OFFICIAL PROCEEDINGS CITY OF COLUMBIA HEIGHTS CITY COUNCIL MEETING JUNE 26, 2017 The following are the minutes for the regular meeting of the City Council held at 7:00 PM on Monday June 26, 2017 in the City Council Chambers, City Hall, 590 40th Ave. N.E., Columbia Heights, Minnesota CALL TO ORDER Mayor Schmitt called the meeting to order at 7:10 p.m. 2. ROLL CALL Present: Mayor Schmitt, Councilmember Williams, Councilmember Murzyn, Jr., Councilmember Buesgens and Councilmember Novitsky Also Present: Walt Fehst; City Manager, Jim Hoeft; City Attorney, Joe Kloiber; Finance Director, Kathy Young; Assistant City Engineer, Joe Hogeboom; Community Development Director, Keith Dahl; Economic Development Manager, John Larkin; Assistant Fire Chief, Jackie Zillmer; Assistant Finance Director and Katie Bruno; City Clerk /Council Secretary 3. INVOCATION Invocation provided by Bob Lyndes, Crest View Senior Communities 4. PLEDGE OF ALLEGIANCE 5. ADDITIONS /DELETIONS TO MEETING AGENDA (The Council, upon majority vote of its members, may make additions and deletions to the agenda. These may be items brought to the attention of the Council under the Citizen Forum or items submitted after the agenda preparation deadline.) Motion by Councilmember Murzyn, Jr. seconded by Councilmember Williams to approve the agenda as presented. All Ayes, Motion Carried. 6. PROCLAMATIONS, PRESENTATIONS, RECOGNITION, ANNOUNCEMENTS, GUESTS 1. Introduction of Liquor Operations Manager, Jason Schulz Finance Director Joe Kloiber introduced Jason Schulz. 2. Acceptance of the report from Phil Kern, Goals and Objectives sessions Phil Kern gave an overview of the recent Goals & Objectives sessions held May 31St and June 5t". The Council thanked Mr. Kern for his assistance. Manager Fehst requested the Council consider item 8B as the next order of business. Motion by Councilmember Williams seconded by Councilmember Murzyn, Jr. to move item 88 to the next order of business. All Ayes, Motion Carried. City Council Minutes June 26, 2017 Page 2 of 14 7. CONSENT AGENDA (These items are considered to be routine by the City Council and will be enacted as part of the Consent Agenda by one motion. Items removed from consent agenda approval will be taken up as the next order of business.) Mayor Schmitt requested items B and C be removed for discussion. A. Approve Minutes of the City Council MOTION: Move to approve the minutes of the City Council meeting of June 12, 2017 MOTION: Move to approve the work session minutes of the City Council meeting of June 5, 2017 B. Submittal Consideration of a Grant Application to the Metropolitan Council. *Removed for Discussion C. Participation Consideration in the Anoka County Housing and Redevelopment Authority Levy. * Removed for Discussion D. Fees for Late Payment of Utility Bills and for Water Service Shut - off /Turn -on. MOTION: Move to waive the reading of Resolution 2017 -64, there being ample copies available to the public. MOTION: Move to adopt Resolution 2017 -64, being a resolution establishing fees for late payment of utility bills and for water service shut - off /turn -on. E. Resolution 2017 -67 Declaring the Intent to Bond for 39th Avenue Mill and Overlay, Project 1705 MOTION: Move to waive the reading of Resolution 2017 -67, there being ample copies available to the public. MOTION: Move to adopt Resolution 2017 -67, being a resolution approving the declaration for the official intent of the City of Columbia Heights to bond for the 39th Avenue Mill and Overlay, Central Avenue to Huset Parkway Roundabout, Project 1705. F. Final payment to Peoples Electric Company for Library Electrical Contract, Project No. 1410 MOTION: Move to accept the electrical work for the new Columbia Heights Public Library, Project No. 1410, and authorize final payment of $22,304 to People's Electric Company of St. Paul, Minnesota. G. Adopt Resolution 2017 -68 being a resolution accepting bids and awarding a contract for 2017 utility repairs and installations, Project 1711 MOTION: Move to waive the reading of Resolution 2017 -68, there being ample copies available to the public. MOTION: Move to adopt Resolution 2017 -68 being a resolution accepting bids and awarding the 2017 Utility Repairs and Installations, City Project No. 1711 to Northdale Construction Company, Inc. of Albertville, Minnesota, based upon their low, qualified, responsible bid in the amount of $353,512.10 from Fund 651 - 51711 -4000; and, furthermore, to authorize the Mayor and City Manager to enter into a contract for the same. H. Consideration of approval of attached list of rental housing applications. M City Council Minutes June 26, 2017 Page 3 of 14 MOTION: Move to approve the items listed for rental housing license applications for June 26, 2017, in that they have met the requirements of the Property Maintenance Code I. Approve Business License Applications MOTION: Move to approve the items as listed on the business license agenda for June 26, 2017, J. Payment of Bills MOTION: Move that in accordance with Minnesota Statute 412.271, subd. 8, the City Council has received the list of claims paid covering check number 166179 - 166348 in the amount of $858,381.22. Motion by Councilmember Murzyn, Jr., seconded by Councilmember Williams to approve the Consent Agenda items A, D, E, F, G, H, 1, and J. All Ayes, Motion Carried. The following items were removed for discussion: B. Submittal Consideration of a Grant Application to the Metropolitan Council Mayor Schmitt questioned if this grant is tied to the proposed Dominium project. Economic Development Manager Keith Dahl confirmed that it is. Motion by Councilmember Buesgens, seconded by Councilmember Williams to waive the reading of Resolution 2017 -69, there being ample copies available to the public. All Ayes, Motion Carried. Motion by Councilmember Murzyn, Jr., seconded by Councilmember Williams to adopt Resolution 2017 -69, a resolution identifying the need for the Livable Communities Demonstration Account funding & authorizing submittal of an application for grant funds. All Ayes, Motion Carried. C. Participation Consideration in the Anoka County Housing and Redevelopment Authority Levy Mayor Schmitt stated she is concerned about the 15% fee. Economic Development Manager Keith Dahl reported the 15% is an administrative fee. Dahl stated that the ACHRA may levy an additional property tax in cities or townships that adopt a resolution electing to participate in the economic development activities. The ACHRA levy has provided the City with essential gap financing assistance. Participating cities may elect to withdraw participation every fifth year following adoption of a resolution electing to participate. Previously, the City Council has elected to participate in the ACHRA's economic development activates from 2007 -2017. Mayor Schmitt indicated she is not in favor of an additional increase on top of the recently increased EDA levy. Councilmember Buesgens stated she is in support of continuing the program, because it provides financial assistance for land acquisition, site investigation, remediation and building demolition. Dahl reported that in the past 3 years the city has received more than $700,000. Mayor Schmitt asked what the estimated tax increase would be with both the EDA and ACHRA included. Dahl reported that for a home valued at $200,000, the increase would be $20 annually. Schmitt asked about the increase for just the EDA levy. Dahl reported it would be an approximate $8 -$15 decrease. City Council Minutes June 26, 2017 Page 4 of 14 Motion by Councilmember Williams, seconded by Councilmember Buesgens to waive the reading of Resolution 2017 -70, there being ample copies available to the public. All Ayes, Motion Carried. Motion by Councilmember Williams, seconded by Councilmember Buesgens to approve Resolution No. 2017 -70, a resolution authorizing the approval of participation in the Anoka County Housing and Redevelopment Authority's Economic Development Activates for fiscal years 2018 to 2022. 4 Ayes -1 Nay, Motion Carried. Ayes: Williams, Buesgens, Murzyn, Jr., Novitsky. Nay: Schmitt 8. PUBLIC HEARINGS A. Preliminary Issuance Consideration of Multifamily Housing Revenue Bonds Economic Development Manager Keith Dahl reported the EDA has received a financial application for the City to issue tax - exempt bonds on behalf of Dominium in connection with the proposed acquisition and construction of a multi - family housing development. Dominium has requested that the City finance the Subject Project with the issuance of tax - exempt conduit revenue bonds (in one or more series, in a principal amount not to exceed $45,000,000. Bonds of this type are not an obligation of the City or its taxpayers, rather an obligation of the developer. Only project revenues of the developer, typically rent collected after project completion would be pledged for repayment of the Tax - Exempt Bonds. The City has previously issued Tax - Exempt Bonds for other various developments. The City Council has required that the developer reimburse the City for all the costs associated to issuance of the bonds, as well as pay an issuance fee in the amount of 1% of the principal amount issued for the Tax - Exempt Bonds. In the case of the request by Dominium, the City would realize an issuance fee in the amount of $450,000. Dominium has requested that the City Council consider approval of the Resolution in order for application to be made for the August 2017 allocation of multi- family housing bonds from the State. Tonight also serves as the required public hearing for residents desiring to be heard regarding this matter. Councilmember Williams questioned why the item is being considered before the development has been approved. It was explained the process is similar to the pre - qualification process for a home mortgage. Mayor Schmitt questioned what fund the $450,000 issuance fee will go to. Finance Director Joe Kloiber indicated the money will go to the Special Projects Fund 226. Mayor Schmitt asked if there were comments from the public: Mike Novitsky -5252 5th St NE was not in favor of increased taxes. City Manager Fehst commented that in order to see development in a first ring suburb, developers will require assistance. Councilmember Buesgens reported projections show a substantial increase to the City in taxes when the project is complete. Motion by Councilmember Buesgens, seconded by Councilmember Murzyn, Jr. to waive the reading of Resolution 2017 -71, there being ample copies available to the public. All Ayes, Motion Carried. Motion by Councilmember Buesgens, seconded by Councilmember Murzyn, Jr. to approve Resolution No. 2017 -71, a resolution adopting a housing program with respect to a multi family housing project; granting preliminary approval for the issuance of multi family housing revenue bonds to finance the project under Minnesota Statutes, Chapter 462C, as amended; and authorizing the reimbursement of expenditures made in anticipation of the issuance of such bonds. All Ayes, Motion Carried. 8 City Council Minutes June 26, 2017 Page 5 of 14 B. Consideration of revocation of the license to operate a rental unit within the City of Columbia Heights is requested against the rental property at 4254 2nd Street NE for failure to meet the requirements of the Residential Maintenance Codes. John Larkin, Assistant Fire Chief reported the property owner has failed to file the application to renew their license. Motion by Mayor Schmitt, seconded by Councilmember Williams to close the public hearing and to waive the reading of Resolution Number 2017 -63, being ample copies available to the public. All Ayes, Motion Carried. Motion by Councilmember Williams, seconded by Councilmember Murzyn, Jr. to adopt Resolution Number 2017 -63, being Resolution of the City Council of the City of Columbia Heights approving revocation pursuant to City Code, Chapter 5A, Article IV, Section 5A.408(A) of the rental license listed. All Ayes, Motion Carried. 9. ITEMS FOR CONSIDERATION A. Other Ordinances and Resolutions B. Bid Considerations C. New Business and Reports 10. ADMINISTRATIVE REPORTS Report of the City Council Councilmember Novitsky reported the Jamboree implemented many changes, and the results were very positive. Manger Fehst stated he was very pleased with the event this year. Councilmember Murzyn, Jr. also worked with the Jamboree. The Lion's waffle breakfast served 217 plates. Councilmember Buesgens attended the ambassador coronation on Sunday, and thanked the Lions for organizing a fantastic event. Buesgens attended the All America City reunion and the League of MN Cities Annual Conference in Rochester June 13 -16tH Mayor Schmitt attended the Coronation on Sunday, and thanked the ambassadors for all their help through the year. She was invited to meet with the Dalai Lama on June 24th. Copies of the prayers posted at the Community Prayer Breakfast were compiled into a book and presented to the Dalai Lama as a gift from the City. Motion by Councilmember Buesgens, seconded by Councilmember Novitsky to recess for 2 minutes. All Ayes, Motion Carried. The council recessed at 8:20 PM. The meeting reconvened at 8:23 PM 11. CITIZENS FORUM Degha Shabbeleh -3827 Bakken Blvd. indicated members of the East African community feel the recent council decision regarding the charter school at 3989 Central was based on the fact that it is an East African school. Ms. Shabbeleh also indicated there has been a great deal of resources invested in the poperty thus far, and asked if there is a way the school can obtain approval. City Council Minutes June 26, 2017 Page 6 of 14 City Attorney James Hoeft indicated the decision was made strictly on zoning regulations and safety concerns. Hoeft indicated there can be no action on the item tonight, as it is not on the agenda. Mayor Schmitt indicated she was not aware of the demographics of the school, and the issues of concern were zoning and safety. Councilmember Buesgens agreed with the Mayor, she had no knowledge of the demographics of the students. Councilmember Murzyn, Jr. agreed. He heard the presentations at both the Planning & Zoning Commission meeting and the City Council meeting, the demographics were never mentioned. He voted against the item based on safety concerns. Councilmember Novitsky indicated he was concerned for student safety, and lack of adequate outdoor playground space. Ms. Shabbeleh asked if there are options available to the school. City Attorney Hoeft stated a substantially new application can be submitted for consideration. Abdirahman Abdulle -1305 University Ave; the Director of science and math at Skyline Academy asked the council to reconsider their decision. Mr. Aduele explained they are willing to work with the City. 12. ADJOURNMENT Motion by Councilmember Murzyn, Jr., seconded by Councilmember Buesgens to adjourn. All Ayes, Motion Carried. Meeting adjourned at 8:37 p.m. Respectively Submitted, Katie Bruno, Council Secretary /City Clerk RESOLUTION 2017 -63 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 property rental license held by Stephanie A. Carr (Hereinafter "License Holder "). Whereas, license holder is the legal owner of the real property located at 4254 2nd 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 June 6, 2017 of a public hearing to be held on June 26, 2017. 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: 10 City Council Minutes June 26, 2017 Page 7 of 14 FINDINGS OF FACT 1. That on or about April 30, 2017, inspection office staff sent a letter requesting the owner of the property submit the rental license application for this property. The letter was mailed by regular mail to the owner at the address listed in the property records. 2. That on June 6, 2017, 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 Property Maintenance Code were found to exist, to -wit: a. 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 III 5A.306 and 5A.303(A). ORDER OF COUNCIL The rental license belonging to the License Holder described herein and identified by license number F15400 is hereby revoked; 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 NO. 2017 -64 A RESOLUTION OF THE CITY COUNCIL FOR THE CITY OF COLUMBIA HEIGHTS, MINNESOTA, ESTABLISHING FEES FOR LATE PAYMENT OF UTILITY BILLS AND FOR WATER SERVICE SHUT -OFF /TURN -ON. Whereas, the rates for water, sewer, and refuse services provided and billed by the City of Columbia Heights are established by Resolution 2015 -98; and Whereas late payment of utility bills and other noncompliance by utility customers with regard to City ordinances regulating water, sewer, and refuse, add to the cost of the utility services provided by the City; and Whereas, certain fees must be imposed upon such delinquent or noncompliant customers, in order that these additional costs are not borne by the majority of the City's utility customers, who pay their utility bills on a timely basis and comply with the City ordinances regulating water, sewer, and refuse services; 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: Im City Council Minutes June 26, 2017 Page 8 of 14 ORDER OF COUNCIL IT IS HEREBY RESOLVED, effective August 1, 2017: 1. A late fee of 7% is imposed on any utility charges not paid by the due date stated on the customer bill, including taxes and all fees other than prior late fees. 2. The late fee in item 1 above will be calculated and billed at each quarterly billing due date, and if applicable at the final billing date for terminated accounts, until the delinquent portion is paid in full. 3. A fee of $75 per occurrence is imposed for the shut - off /turn -on of water service, when initiated by the City due to late payment or other customer noncompliance with City ordinances regulating water, sewer, and refuse. 4. A fee of $25 per occurrence is imposed for the shut - off /turn -on of water service, when water service shut - off /turn -on is requested by the customer. BE IT FURTHER RESOLVED that the foregoing does not preclude the City from any other collection or enforcement procedures legally available. RESOLUTION NO. 2017 -67 A resolution of the City Council for the City of Columbia Heights, Minnesota, WHEREAS, the Internal Revenue Service has issued Tres. Reg. 1.140.2 providing that proceeds of tax exempt bond used to reimburse prior expenditures will be not be deemed spent unless certain requirements are met; and, WHEREAS, the City of Columbia Heights (the "City ") expects to incur certain expenditures which may be financed temporarily from sources other than bonds, and reimbursed from the proceeds of a bond; 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.The City reasonably intends to make expenditures for State Aid Street Rehabilitation, Project No. 1705,from Central Avenue to Huset Parkway Roundabout, and reasonably intends to reimburse itself for suchexpenditures from the proceeds of debt to be issued by the City in one or more series in the maxim umprincipal amount of $325,000. 2.This resolution is intended to constitute a declaration of official intent for purposes of Tres. Reg. 1.150- land any successor law, regulating or ruling. RESOLUTION NO. 2017 -68 A resolution of the City Council for the City of Columbia Heights, Minnesota, WHEREAS, pursuant to an advertisement for bids for City Project No. 1711, 2017 Sanitary and Storm Sewer Repairs and Installations, bids were received, opened and tabulated according to law. Now therefore, in accordance with the foregoing, and all ordinances and regulations of the City of Columbia Heights, the City Council of Columbia Heights makes the following: FINDINGS OF FACT he following Base Bid Storm Sewer Alternate 1 Base Bid Plus Base Bid Plus bids were Realignment Storm Sewer Storm Sewer received Realignment Realignment complying with Plus Alternate 1 the 12 advertisement. Bidder Northdale 311,842.98 37,972.13 Construction Dave Perkins 327,241.00 35,700.00 Contracting Geislinger and 388,675.00 47,966.00 Sons, Inc.* City Council Minutes June 26, 2017 Page 9 of 14 3,696.99 349,815.11 353,512.10 (3,665.00) 362,941.00 359,276.00 44,000.00 436,641.00 480,641.00 RESOLUTION NO. 2017 -69 RESOLUTION IDENTIFYING THE NEED FOR LIVABLE COMMUNITIES DEMONSTRATION ACCOUNT FUNDING AND AUTHORIZING AN APPLICATION FOR GRANT FUNDS BE IT RESOLVED BY the City Council (the "Council ") for the City of Columbia Heights, Minnesota (the "City ") as follows: WHEREAS, the City is a participant in the Livable Communities Act's Housing Incentives Program for 2017 as determined by the Metropolitan Council (the "Met Council "), and is therefore eligible to apply for Livable Communities Demonstration Account (the "LCDA ") funds; and WHEREAS, the City has identified a proposed project within the City that meets the LCDA's purposes and criteria and is consistent with and promotes the purposes of the Metropolitan Livable Communities Act and the policies of the Met Council's adopted metropolitan development guide; and WHEREAS, the City has the institutional, managerial and financial capability to ensure adequate project administration; and WHEREAS, the City certifies that it will comply with all applicable laws and regulations as stated in the grant agreement; and WHEREAS, the City agrees to act as legal sponsor for the project contained in the grant application submitted on or before June 29, 2017; and WHEREAS, the City acknowledges LCDA grants are intended to fund projects or project components that can serve as models, examples or prototypes for development or redevelopment projects elsewhere in the region, and therefore represents that the proposed project or key components of the proposed project can be replicated in other metropolitan -area communities; and WHEREAS, only a limited amount of grant funding is available through the Met Council's LCDA during each funding cycle and the Met Council has determined it is appropriate to allocate those scarce grant funds only to eligible projects that would not occur without the availability of Demonstration Account grant funding. NOW, THEREFORE BE IT RESOLVED that after appropriate examination and due consideration, the governing body of the City: 1. Finds that it is in the best interests of the City's development goals and priorities for the proposed 13 City Council Minutes June 26, 2017 Page 10 of 14 project to occur at this particular site and at this particular time; and 2. Finds that the project component(s) for which LCDA funding is sought would not occur solely through private or other public investment within the reasonably foreseeable future and will occur within three years after a grant award only if LCDA funding is made available for this project at this time. Represents that the City has undertaken reasonable and good faith efforts to procure funding for the project component for which LCDA funding is sought but was not able to find or secure from other sources funding that is necessary for project component completion within three years and states that this representation is based on the following reasons and supporting facts: In a continued effort for the City to support the incorporation of quality demonstration design elements that encourage public interaction; create connections to local transit services; and increase pedestrian and cyclist safety, the LCDA development funds requested are a necessary source of funding for the transit oriented mixed -use development to achieve a strong sense of community. 4. Authorizes its City Manager to submit on behalf of the City an application for Met Council LCDA grant funds for the project component(s) identified in the application, and to execute such agreements as may be necessary to implement the project on behalf of the City. RESOLUTION NO. 2017 -70 RESOLUTION AUTHORIZING THE APPROVAL OF PARTICIPATION IN THE ANOKA COUNTY HOUSING AND REDEVELOPMENT AUTHORITY'S ECONOMIC DEVELOPMENT ACTIVITIES FOR THE FISCAL YEARS 2018 to 2022 BE IT RESOLVED BY the City Council (the "Council ") of the City of Columbia Heights, Minnesota (the "City') as follows: WHEREAS, the City is part of Anoka County (the "County "), and such is a rapidly growing and important segment of the Twin Cities Metropolitan Region, made up of rich variety of vital, desirable communities; and WHEREAS, the Council has determined that the residents of the City would realize many benefits from expansion of the County tax base, including but not limited to; the creation of local job opportunities, redevelopment of property throughout the City, as well as maintaining and improving the housing stock, wider sharing of tax burden, and access to enhanced infrastructure, services, and retail and business activities; and WHEREAS, in order to expand the local tax base, the County Board of Commissioners has indicated an interest in fostering a regional approach to economic development in the County; and WHEREAS, in 2007 a statutorily formed citizens exploratory committee recommended to the Board of Commissioners that the County Housing and Redevelopment Authority (the "County HRA ") be granted the powers of an economic development authority; and WHEREAS, on June 12, 2007, the County Board of Commissioners, after fulfilling the statutory requirements, did authorize the County HRA to exercise said powers of an economic development authority; and 14 City Council Minutes June 26, 2017 Page 11 of 14 WHEREAS, MN Stat. 469.1082 requires that a municipality shall, declare its willingness, by resolution, to join the county in its economic development activities; and NOW, THEREFORE BE IT RESOLVED, that the City does hereby declare its support of the County and its countywide economic development objectives and activities; and BE IT FURTHER RESOLVED, that the City does hereby elect to participate in the County HRA economic development activities for the fiscal years 2018 through 2022 RESOLUTION NO. 2017 -71 ADOPTING A HOUSING PROGRAM WITH RESPECT TO A MULTIFAMILY HOUSING PROJECT; GRANTING PRELIMINARY APPROVAL FOR THE ISSUANCE OF MULTIFAMILY HOUSING REVENUE BONDS TO FINANCE THE PROJECT UNDER MINNESOTA STATUTES, CHAPTER 462C, AS AMENDED; AND AUTHORIZING THE REIMBURSEMENT OF EXPENDITURES MADE IN ANTICIPATION OF THE ISSUANCE OF SUCH BONDS BE IT RESOLVED by the City Council of the City of Columbia Heights, Minnesota (the "City "), as follows: Section 1. Recitals. 1.01. The City is a home rule charter city duly organized and existing under the Constitution and laws of the State of Minnesota. 1.02. Pursuant to Minnesota Statutes, Chapter 462C, as amended (the "Housing Act "), the City is authorized to carry out the public purposes described in the Housing Act by providing for the issuance of revenue bonds or other obligations to finance or refinance multifamily housing developments located within the City. As a condition to the issuance of revenue bonds under the Housing Act, the City must adopt a housing program providing the information required by Section 462C.03, subdivision 1a of the Housing Act (the "Housing Program "). A public hearing must be held in accordance with the requirements of Section 147(f) of the Internal Revenue Code of 1986, as amended (the "Code "), and regulations promulgated thereunder (the "Regulations "), and the requirements of the Housing Act. The City Council of the City (the "Council ") must also grant preliminary approval to the issuance of revenue bonds to finance the multifamily housing development referred to in the Housing Program, and authorize the submission of an application to Minnesota Management & Budget for an allocation of bonding authority with respect to the Bonds (as hereinafter defined) to finance the Project (as hereinafter defined). 1.03. Columbia Heights Leased Housing Associates III, LLLP, a Minnesota limited liability limited partnership (the "Borrower "), has proposed that the City, pursuant to the Housing Act, issue its revenue bonds in an aggregate principal amount not to exceed $45,000,000, in one or more series (the "Bonds "), the proceeds of which will be loaned by the City to the Borrower. The Borrower will apply the proceeds of such loan to: (i) the acquisition, construction, and equipping of a multifamily housing facility comprised of up to 190 affordable rental apartments to be located in two four -story buildings, together with related common amenity spaces, including a fitness facility, a club room, and 140 or more underground parking spaces and an additional 130 or more surface parking spaces, to be located at 1069 Grandview Court NE and 4729 Grand 15 City Council Minutes June 26, 2017 Page 12 of 14 Avenue NE in the City (the "Project "); (ii) the funding of one or more reserve funds to secure the timely payment of the Bonds; (iii) the payment of interest on the Bonds during the construction of the Project; and (iv) the payment of the costs of issuing the Bonds. 1.04. Under Section 147(f) of the Code, prior to the issuance of the Bonds a public hearing duly noticed must be held by the Council. Under Section 462C.04, subdivision 2 of the Act, a public hearing must be held on each housing program after one publication of notice in a newspaper circulating generally in the City, at least fifteen (15) days before the hearing. 1.05. Under Section 146 of the Code, the Bonds must receive an allocation of the bonding authority of the State of Minnesota. An application for such an allocation must be made pursuant to the requirements of Minnesota Statutes, Chapter 474A, as amended (the "Allocation Act "). Section 2. Preliminary Findings. Based on representations made by the Borrower to the City to date, the Council hereby makes the following preliminary findings, determinations, and declarations: (a) The Project consists of a housing development designed and intended to be used for rental occupancy. (b) The proceeds of the Bonds will be loaned to the Borrower and the proceeds of the loan will be applied to: (i) the acquisition, construction, and equipping of the Project; (ii) the funding of one or more reserve funds to secure the timely payment of the Bonds; (iii) the payment of interest on the Bonds during the construction of the Project; and (iv) the payment of the costs of issuing the Bonds. The City will enter into a loan agreement (or other revenue agreement) with the Borrower requiring loan repayments from the Borrower in amounts sufficient to repay the loan when due and requiring the Borrower to pay all costs of maintaining and insuring the Project, including taxes thereon. (c) In preliminarily authorizing the issuance of the Bonds and the financing of the acquisition, construction, and equipping of the Project and related costs, the City's purpose is and the effect thereof will be to promote the public welfare of the City and its residents by retaining and improving multifamily housing developments and otherwise furthering the purposes and policies of the Housing Act. (d) The Bonds will be limited obligations of the City payable solely from the revenues pledged to the payment thereof, and will not be a general or moral obligation of the City and will not be secured by or payable from revenues derived from any exercise of the taxing powers of the City. Section 4. Public Hearing. On the date hereof (June 26, 2017), the Council conducted a public hearing on the Housing Program, the Project, and the issuance of the Bonds, notice of which hearing (the "Public Notice ") was published as required by Minnesota Statutes, Section 462C.04, subdivision 2 of the Housing Act, and as required by Section 147(f) of the Code and applicable Regulations promulgated thereunder. The Public Notice provided a general, functional description of the Project, as well as the maximum aggregate face amount of the obligations to be issued for the purposes referenced above, the identity of the initial owner, operator, or manager of the Project, and the location of the Project. The Public Notice was published in the Sun Focus, the official newspaper and a newspaper circulating generally in the City, on June 2, 2017, a date at least fifteen (15) days before the meeting of the Council on June 26, 2017. At the public hearing a reasonable it City Council Minutes June 26, 2017 Page 13 of 14 opportunity was provided for interested individuals to express their views, both orally and in writing, on the Project and the proposed issuance of the Bonds. Section 5. Housing Program. Bond counsel, as described below, prepared and submitted to the City a draft Housing Program to authorize the issuance by the City of the Bonds, in an aggregate principal amount not to exceed $45,000,000, to finance the acquisition, construction, and equipping of the Project by the Borrower. The Housing Program was prepared and submitted to the Metropolitan Council for its review on or before the date of publication of the Public Notice. Section 6. Preliminary Approval. The Council hereby provides preliminary approval to the issuance of the Bonds, in the aggregate principal amount not to exceed $45,000,000, to finance all or a portion of the costs of the Project pursuant to the Housing Program of the City, subject to: (i) review of the Housing Program by the Metropolitan Council; (ii) receipt of an allocation of the bonding authority from the State of Minnesota; (iii) final approval following the preparation of bond documents; and (iv) final determination by the Council that the financing of the Project and the issuance of the Bonds are in the best interests of the City. Section 7. Submission of an Application for an Allocation of Bonding Authority. Under Section 146 of the Code, the Bonds must receive an allocation of the bonding authority of the State of Minnesota. An application for such an allocation must be made pursuant to the requirements of the Allocation Act. The Council hereby authorizes the submission of an application for allocation of bonding authority pursuant to Section 146 of the Code and the Allocation Act. The Mayor of the City, the City Manager, and Kennedy & Graven, Chartered, acting as bond counsel for the City with respect to the Project and the Bonds, are hereby authorized and directed to take all actions, in cooperation with the Borrower, as are necessary to submit an application for an allocation of bonding authority to Minnesota Management & Budget. Section 8. Reimbursement of Costs under the Code. 8.1. The United States Department of the Treasury promulgated by Section 1.150 -2 of the Regulations, which governs the use of the proceeds of tax - exempt bonds, all or a portion of which are to be used to reimburse the City or the Borrower for project expenditures paid prior to the date of issuance of such bonds. Section 1.150 -2 of the Regulations requires that the City adopt a statement of official intent to reimburse an original expenditure not later than sixty (60) days after payment of the original expenditure. Section 1.150 -2 of the Regulations also generally requires that the bonds be issued and the reimbursement allocation made from the proceeds of the bonds occur within eighteen (18) months after the later of: (i) the date the expenditure is paid; or (ii) the date the project is placed in service or abandoned, but in no event more than three (3) years after the date the expenditure is paid. The Regulations generally permit reimbursement of capital expenditures and costs of issuance of the bonds. 8.2. To the extent any portion of the proceeds of the Bonds will be applied to expenditures with respect to the Project, the City reasonably expects to reimburse the Borrower for the expenditures made for costs of the Project from the proceeds of the Bonds after the date of payment of all or a portion of such expenditures. All reimbursed expenditures shall be capital expenditures, a cost of issuance of the Bonds, or other expenditures eligible for reimbursement under Section 1.150- 2(d)(3) of the Regulations and also qualifying expenditures under the Housing Act. 17 City Council Minutes June 26, 2017 Page 14 of 14 Based on representations by the Borrower, other than (i) expenditures to be paid or reimbursed from sources other than the Bonds, (ii) expenditures permitted to be reimbursed under prior regulations pursuant to the transitional provision contained in Section 1.150- 2(j)(2)(i)(B) of the Regulations, (iii) expenditures constituting preliminary expenditures within the meaning of Section 1.150- 2(f)(2) of the Regulations, or (iv) expenditures in a "de minimus" amount (as defined in Section 1.150- 2(f)(1) of the Regulations), no expenditures with respect to the Project to be reimbursed with the proceeds of the Bonds have been made by the Borrower more than sixty (60) days before the date of adoption of this resolution of the City. 8.3. Based on representations by the Borrower, as of the date hereof, there are no funds of the Borrower reserved, allocated on a long term -basis or otherwise set aside (or reasonably expected to be reserved, allocated on a long -term basis or otherwise set aside) to provide permanent financing for the expenditures related to the Project to be financed from proceeds of the Bonds, other than pursuant to the issuance of the Bonds. This resolution, therefore, is determined to be consistent with the budgetary and financial circumstances of the Borrower as they exist or are reasonably foreseeable on the date hereof. Section 9. Costs. The Borrower will pay the administrative fees of the City and pay, or, upon demand, reimburse the City for payment of, any and all costs incurred by the City in connection with the Project and the issuance of the Bonds, whether or not the Bonds are issued. Section 10. Commitment Conditional. The adoption of this resolution does not constitute a guarantee or a firm commitment that the City will issue the Bonds as requested by the Borrower. If, as a result of information made available to or obtained by the City during its review of the Project, it appears that the Project or the issuance of Bonds to finance or refinance the costs thereof is not in the public interest or is inconsistent with the purposes of the Housing Act, the City reserves the right to decline to give final approval to the issuance of the Bonds. The City also retains the right, in its sole discretion, to withdraw from participation and accordingly not issue the Bonds should the Council, at any time prior to the issuance thereof, determine that it is in the best interests of the City not to issue the Bonds or should the parties to the transaction be unable to reach agreement as to the terms and conditions of any of the documents for the transaction. 18 Meeting of: COLUMBIA HEIGHTS CITY COUNCIL Date of Meeting: June 26, 2017 Time of Meeting: 6:00 PM Location of Meeting: Conference Room #1 Purpose of Meeting: SPECIAL WORKSESSION CALL TO ORDER /ROLL CALL - The meeting was called to order at 6:02 PM Present: Mayor Schmitt, Councilmembers Murzyn Jr, Williams, Buesgens and Novitsky Also Present: Walt Fehst; City Manager, Joe Hogeboom; Community Development Director, Keith Dahl; Economic Development Manager, and Katie Bruno; City Clerk Tax Increment Financing Discussion James Lehnhoff from Ehlers explained Tax Increment Financing, as it relates to the proposed Dominium project. Mayor Schmitt questioned the next step. Lehnhoff stated that if council is in agreement to move forward, the next step would be to present to the Planning & Zoning Commission. Lehnhoff indicated nothing will be done without council approval. Councilmember Buesgens expressed support for the project. Councilmember Murzyn, Jr. was happy the developers have listened to the concerns of the community, and worked to make appropriate changes. Councilmember Novitsky agreed, he is pleased with the changes. Councilmember Williams indicated he wants to be attentive to the concerns expressed by the residents in the condominium units adjacent to the proposed project. Mayor Schmitt is pleased the developers have worked to address many of the concerns expressed by the neighborhood. Mayor Schmitt questioned the process if the TIF district is created and the project does not occur. Lehnhoff reported it could be decertified or repurposed within four years. Meeting Adjourned at 7:01PM Respectively Submitted, Katie Bruno, Council Secretary /City Clerk 19 oil. COLUMBIA HEIGHTS PUBLIC LIBRARY 3939 Central Ave NE, Columbia Heights, MN 55421 BOARD OF TRUSTEES: MEETING MINUTES Wednesday, June 7th, 2017 Approved 7/5/2017 The meeting was called to order in the History Room by Chair, Patricia Sowada, at 5:32pm. All members present: Patricia Sowada, Catherine Vesley, Nancy Hoium, Stephen D. Smith, Tricia Conway, and Bobby Williams. Also present: Library Director, Renee Dougherty; Recording Secretary, Nick Olberding; and visitor from the Anoka County Record, Bryan Olson. • The Minutes of the May 3 d, 2017 Board Meeting were approved. • The Bill List dated May 10th, 2017 was reviewed. It was moved, seconded, and passed that the bills be paid. • The Bill List dated May 24th, 2017 was reviewed. It was moved, seconded, and passed that the bills be paid. • The Accounting Sheet as of May was reviewed, and approved. • Questions and discussions from Bills and Accounting: • Books ... who purchases and what influences purchases: Director (adult materials), Adult Librarian (adult materials and all media), and Youth Librarian (youth material) create book orders. Book orders are based on patron recommendations, 3 review journals, and various online resources. • Bookmarks & Letters (on May 24th List): These were ordered by Bri to hand out during school visits in promotion of the library and Summer Reading Program. • Electric: Solar panels are performing well and keeping us under - budget for electrical. Eric Hanson is also actively re- adjusting the environmental controls to maximize the efficiency of the air handlers. • Marco (Line 4000 ... on May 24th List): This item was considered, and discussed. Some of the costs on there are from 2016, but we were not charged until 2017, others have appeared on previous bill lists (but Finance did not pay them until the charges were understood). Now they have been re- submitted the way Finance would like them to be, and they will be paid. • Construction Related Costs: Items like the faulty entry door controls are still covered under warranty, so no additional costs are incurred. Will also likely receive a warranty extension. Some costs have been associated with additional programming of access card readers. • Credit Card Fees (on Accounting Sheet): This has been discussed before... Finance had advised us to budget for this service in case of implementation. There are no current plans to move forward with it. Old Business: N/A Staffing Update: Conditional offer has been made to Cortni O'Brien (applicant from Denver, CO), and she has accepted. Anticipated start date of July 10th. Cortni grew up in Rush City, MN, and attended the College of St. Benedict in St. Joseph. She received a Masters of Library and Information Science from the University of Colorado in Denver. She has been the Communications Manager for the Literacy Project of Eagle County and a Public Relations Librarian in the Eagle Valley Library District. Art Display Policy: Since approval of our policy, we currently have our first exhibition on display. Judy Fowler, of Columbia Academy, is currently displaying works in the Youth Area from her 6, 7, and 8th grade Media Arts students. New Business: Gifts from Friends: The Friends of the Library have recently gifted the library $250 to offset the cost of 20 entertainment (Leo and Kathy Lara) at the Summer Reading Program Kick -off Party (June 14th); plus an additional $500 for books to give away as prizes in the Summer Reading Program. The Friends also came through with purchasing a very nice wheelchair for the library (a mobility solution for disabled patrons, or in case of emergency, was discussed at the previous Board meeting); it is currently being stored in the backroom, and will be available to patrons upon request. The Board is very thankful for the Friend's generous donations to the library. Minnesota Public Library Report: Renee distributed a Key Statistics sheet from the Minnesota Dept. of Education which laid out combined statistics and trends for all the MN Public Libraries for 2016. Interesting point that was brought up, Columbia Heights' patron visits are above the average, but patron loans are below. Renee Dougherty and Catherine Vesley will attend the next City Council session to present a summary of the report. 2018 Budget Update: Finance manager is currently out of the office with an injury, so department heads have a small deadline extension. Increase in personnel wages (due to AFSCME increases), and an increase in maintenance (due to city contracts on IT, landscaping, etc). City contracts for all -city building maintenance are put out for bids every two years. Council Goals and Objectives: City Council had discussed 8 aspirations and short term goals in its previous session. Not all could be remembered off -hand, but they include items like a master plan for parks, city communications, cooperation with schools, sprucing up neighborhoods, and a new city hall. Items from the Floor: CHPL 90th Anniversary: 2018 marks the 90th anniversary of the Columbia Heights Public Library. Will see if a little money can be put in the budget for recognition of this. The board would like to see a celebratory banner hung on the front of the library facing Central, and a cake for the event. Opted not to have a whole year of events planned for the anniversary, because it tends to get overwhelming, but there may be a single event for the milestone... planning will come later. There being no further business, the meeting was adjourned at 6:17pm by Patricia Sowada, and seconded. Respectfully submitted, a Nicholas P. Olberding Recording Secretary, Library Board of Trustees 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. 21 MINUTES OF PLANNING AND ZONING COMMISSION JUNE 6, 2017 7:00 PM The meeting was called to order at 7:00 pm by Chair Szurek. Commission Members present- Novitsky, Schill, Hoium, and Szurek Members Excused: Fiorendino Also present were Elizabeth Holmbeck (Planner), and Shelley Hanson (Secretary) along with Council Liaison, John Murzyn. Motion by Hoium, seconded by Schill, to approve the minutes from the meeting of May 2, 2017. All ayes. MOTION PASSED. PUBLIC HEARINGS CASE NUMBER: 2017 -0601 APPLICANT: Mulata Assoc. LOCATION: 820 401h Avenue REQUEST: Appeal — WITHDRAWN CASE NUMBER: 2017 -0602 APPLICANT: Mark Jedele, Total Export LOCATION: 725 39th Avenue REQUEST: Condition Use Permit At this time, Mark Jedele on behalf of Total Export, Inc. is requesting a Conditional Use Permit to allow for outdoor storage on the property located at 725 39b Ave. NE. Total Export is a custom crate manufacturing and export packing business. They are proposing to store lumber, pallets, and occasionally some equipment outdoors. The applicant has submitted a narrative and a detailed materials list which outlines the types of materials they work with and those that will be stored on site. The applicant has proposed to add additional screening along the adjacent residential properties and has plans to make some improvements to the exterior of the building. ZONING ORDINANCE The property located at 725 39th Avenue NE. is located in the I -1, Light Industrial Zoning District. The properties to the north, south, and east are located in the R -3, Multiple Family Residential District. The properties to the west are located in the I -2, General Industrial Zoning District. The proposed use is a permitted use in the Zoning Ordinance. The proposal for outdoor storage is listed as a conditional use in the Zoning Ordinance. 22 P & Z Minutes Page 2 June 6, 2017 COMPREHENSIVE PLAN The Comprehensive Plan guides this area for Industrial Use. The outside storage of materials in conjunction with the use of the property is consistent with the intent of the Comprehensive Plan. DESIGN GUIDELINES The subject property is not located in the Design Guidelines Overlay District. SITE PLAN The applicant submitted a site plan which indicates where the outdoor storage will be located, and where the fencing will be located. FINDINGS OF FACT Section 9.104 (H) of the Zoning Ordinance outlines nine conditions that must be met in order for the City Council to grant a Conditional Use Permit. They are as follows: (a) The use is one of the conditional uses listed for the zoning district in which the property is located, or is a substantially similar use as determined by the Zoning Administrator. Outdoor storage is specifically listed as a Conditional Use in the I -1, Light Industrial Zoning District. (b) The use is in harmony with the general purpose and intent of the Comprehensive Plan. The property is guided for Industrial use. The outdoor storage of materials in conjunction with the use of the property is consistent with the intent of the Comprehensive Plan. (c) The use will not impose hazards or disturbing influences on neighboring properties. If properly screened from neighboring properties, the proposed use should not impose hazards or disturbing influences on neighboring properties. The applicant will be required to install screening per the City's Screening requirements. The applicant will have to adhere to Specific Development Standards as it relates to outdoor storage. Tlie City has Specific Development Standards which are meant for unique characteristics of certain land uses. The standards are meant to protect the neighboring properties from any hazardous or disturbing influences. (d) The use will not substantially diminish the use of property in the immediate vicinity. The use of neighboring properties would not be diminished in any way with the proposed use of the subject property. The property has historically been used for Industrial types of uses. Previous Owners have stoned materials associated with the property's use outside without screening. The new property) owner will be improving the exterior fagade of the building and adding screening along the adjacent residential boundaries. (e) The use will be designed, constructed, operated and maintained in a manner that is compatible with the appearance of the existing or intended character of the surrounding area. The use will be subject to the Specific Development Standards as outlined in the Zoning Code for outdoor storage. These specific requirements are added as conditions to the proposed Conditional Use Permit, and meant to protect the intended character of the surrounding area. 23 P & Z Minutes Page 3 June 6, 2017 (f) The use and property upon which the use is located are adequately served by essential public facilities and services. This is correct. (g) Adequate measures have been or will be taken to minimize traffic congestion on the public streets and to provide for appropriate on -site circulation of traffic. The on -site circulation of traffic will remain unchanged. A condition has been added which prohibits any truck traffic to occur on Jackson Street. (h) The use will not cause a negative cumulative effect, when considered in conjunction with the cumulative effect of other uses in the immediate vicinity. Based on the fact that the property has been used for industrial uses historically, the use should not cause a negative cumulative effect. It is possible that the proposed use could cause a negative effect to other uses in the immediate vicinity. Staff has added proposed conditions to the permit for the City Council to consider in an effort to minimize these potential negative effects. (i) The use complies with all other applicable regulations for the district in which it is located. This is correct. Providing the applicant complies with the Specific Development Standards, which are added as conditions of approval, the use will comply with the City's applicable regulations. Staff recommends that the Planning Commission recommend approval of the proposed Conditional Use Permit for outdoor storage for the property located at 725 39th Avenue NE. Questions from members: Hoium asked when the screening would be up. Holmbeck said it has to be up within 3 months of approval which is included in condition #5. Szurek asked if the applicant is aware of these conditions. Holmbeck said he was. Hoium asked about requirements for vehicles that are visible from the street. Holmbeck said they must be parked in an orderly fashion, in appropriately sized and striped parking spaces, per the Zoning Ordinance which is condition # 16. There was no further questions for the applicant from the members. Public Hearing Opened. No one was present to speak on this matter. Public Hearing Closed. 24 P & Z Minutes Page 4 June 6, 2017 Motion by Hoium, seconded by Schill, to close the public hearing and waive the reading of Resolution 2017 -52, there being ample copies available to the public. All Ayes. MOTIONPASSED. Motion by Hoium, seconded by Schill, that the Planning and Zoning Commission recommends the City Council approve Resolution No. 201 7-52 for a Conditional Use Permit for outdoor storage for the property located at 725 39th Avenue NE., subject to certain conditions of approval that have been found to be necessary to protect the public interest and ensure compliance with the provisions of the Zoning and Development Ordinance, including: 1. The outdoor storage area shall be accessory to a commercial or industrial use. 2. Outdoor storage within the public right -of -way is prohibited. 3. All outdoor storage areas shall meet the setback requirements for a principal structure in the zoning district in which the use is located. 4. Outdoor storage areas shall be located in rear yards or in the side yard behind the front building line of the principal structure. 5. The storage area shall be fenced and screened from adjacent uses and the public right- of -way. Required screening shall consist of a fence, wall, earth berming and /or vegetation no less than six feet in height and no less than 80% opaque on a year round basis. The fence cannot exceed 7 feet in height. All screening will be installed within 3 months from the date the Conditional Use Permit is approved. 6 All goods, materials and equipment shall be stored on an impervious surface. 7. All goods, materials and equipment shall be stored in an orderly fashion, with access aisles of sufficient width to accommodate emergency vehicles as needed. 8. The height of materials stored, excluding operable vehicles and equipment, shall not exceed the height of the screening provided. 9. Combustible storage cannot be located within 10 feet of lot line. Exception to this is if the storage is reduced to no more than 6 feet in height it can be within 3 feet of lot lines. 10. Outside storage cannot be located under unprotected eaves, canopies, projections, or overhangs of a structure if the structure is sprinkled. 11. No truck traffic associated with the use of the property will be allowed on Jackson Street. The curb cut off of Jackson Street cannot be used for entering or exiting. 12. Any barbed wire adjacent to residential properties must be removed. 13. The building on the subject property encroaches into the City Right of Way. The applicant must have an encroachment agreement written which addresses any work within the City Right of Way. The applicant must work with the Public Works Director /City Engineer to determine the terms of the encroachment agreement. The applicant must provide a recordable document for the City to review within 30 days of the approval of the Conditional Use Permit. The applicant is responsible for recording the encroachment agreement with the Anoka County Recorder's Office. 14. The proposed fencing along the adjacent northern and eastern residential property lines must be 80% opaque year round. Fencing materials must be approved by the Zoning Administrator. 15. All areas on which vehicles are parked must be paved surfaces, per the Zoning Ordinance. 16 Vehicles that are visible from the street or adjacent residential properties must be parked in an orderly fashion, in appropriately sized and striped parking spaces, per the Zoning Ordinance. 17. Trash and /or recycling collection areas shall be enclosed on at least three sides by an opaque screening wall or fence no less than six feet in height. The open side of the enclosure shall not face any public street or the front yard of any adjacent property. 18. All exterior lighting shall be downcast so as not to adversely impact neighboring residential properties. The applicant must submit a detailed lighting plan for review by the Building Official, prior to construction. 25 P & Z Minutes Page 5 June 6, 2017 Roll Call: All Ayes. The following Resolution will go to the City Council at the June 12, 2017 meeting. RESOLUTION NO. 2017-52 A resolution of the City Council for the City of Columbia Heights, Minnesota, approving a Conditional Use Permit for outdoor storage on the property located at 725 39`h Ave. NE. Whereas, a proposal (Case # 2017 -0601) has been submitted by Mark Jedele on behalf of Total Export, Inc. to the City Council requesting a Conditional Use Pen-nit from the City of Columbia Heights at the following site: ADDRESS: 725 39"' Ave. NE LEGAL DESCRIPTION: On file at City Hall. THE APPLICANT SEEKS THE FOLLOWING: A Conditional Use Permit per Code Section 9.104 (H), to allow for outdoor storage on the property located at 725 390' Ave. NE. Whereas, the Planning and Zoning Commission held a public hearing as required by the City Zoning Code on June 6"', 2017; Whereas, the City Council has considered the advice and recommendations of the Planning and Zoning Commission regarding the effect of the proposed Conditional Use Permit upon the health, safety, and welfare of the community and its Comprehensive Plan, as well as any concerns related to compatibility of uses, traffic, property values, light, air, danger of fire, and risk to public safety in the surrounding areas; Now, therefore, be it resolved, 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 snakes the following: FINDINGS OF FACT Section 9.104 (H) of the Zoning Ordinance outlines nine conditions that must be met in order for the City Council to grant a Conditional Use Pen-nit. They are as follows: (a) The use is one of the conditional uses listed for the zoning district in which the property is located, or is a substantially similar use as detennined by the Zoning Administrator. (b) The use is in harmony with the general purpose and intent of the Comprehensive Plan. (c) The use will not impose hazards or disturbing influences on neighboring properties. (d) The use will not substantially diminish the use of property in the immediate vicinity. (e) The use will be designed, constructed, operated and maintained in a manner that is compatible with the appearance of the existing or intended character of the surrounding area. (f) The use and property upon which the use is located are adequately served by essential public facilities and services. (g) Adequate measures have been or will be taken to minimize traffic congestion on the public streets and to provide for appropriate on -site circulation of traffic. (h) The use will not cause a negative cumulative effect, when considered in conjunction with the cumulative effect of other uses is the immediate vicinity. (i) The use complies with all other applicable regulations for the district in which it is located. P & Z Minutes Page 6 June 6, 2017 Further, be it resolved, that the attached plans, maps, and other information shall become part of this Conditional Use Permit and approval; and in granting this Conditional Use Permit the City and the applicant agree that this permit shall become null and void if the project has not been completed within one (1) calendar year after the approval date, subject to petition for renewal of the permit. The Conditional Use Permit is subject to certain conditions of approval that have been found to be necessary to protect the public interest and ensure compliance with the provisions of the Zoning and Development Ordinance, including: CONDITIONS 1. The outdoor storage area shall be accessory to a commercial or industrial use. 2. Outdoor storage within the public right -of -way is prohibited. 3. All outdoor storage areas shall meet the setback requirements for a principal structure in the zoning district in which the use is located. 4. Outdoor storage areas shall be located in rear yards or in the side yard behind the front building line of the principal structure. 5. The storage area shall be fenced and screened from adjacent uses and the public right- of -way. Required screening shall consist of a fence, wall, earth berming and /or vegetation no less than six feet in height and no less than 80% opaque on a year round basis. The fence cannot exceed 7 feet in height. All screening will be installed within 3 months from the date the Conditional Use Permit is approved. 6. All goods, materials and equipment shall be stored on an impervious surface. 7. All goods, materials and equipment shall be stored in an orderly fashion, with access aisles of sufficient width to accommodate emergency vehicles as needed. 8. The height of materials stored, excluding operable vehicles and equipment, shall not exceed the height of the screening provided. 9. Combustible storage cannot be located within 10 feet of lot line. Exception to this is if the storage is reduced to no more than 6 feet in height it can be within 3 feet of lot lines. 10. Outside storage cannot be located under unprotected eaves, canopies, projections, or overhangs of a structure if the structure is sprinkled. 11. No truck traffic associated with the use of the property will be allowed on Jackson Street. The curb cut off of Jackson Street cannot be used for entering or exiting. 12. Any barbed wire adjacent to residential properties must be removed. 13. The building on the subject property encroaches into the City Right of Way. The applicant must have an encroachment agreement written which addresses any work within the City Right of Way. The applicant must work with the Public Works Director /City Engineer to determine the terns of the encroachment agreement. The applicant must provide a recordable document for the City to review within 30 days of the approval of the Conditional Use Permit. The applicant is responsible for recording the encroachment agreement with the Anoka County Recorder's Office. 14. The proposed fencing along the adjacent northern and eastern residential property lines must be 80% opaque year round. Fencing materials must be approved by the Zoning Administrator. 15. All areas on which vehicles are parked must be paved surfaces, per the Zoning Ordinance. 16. Vehicles that are visible from the street or adjacent residential properties must be parked in an orderly fashion, in appropriately sized and striped parking spaces, per the Zoning Ordinance. 17. Trash and/or recycling collection areas shall be enclosed on at least three sides by an opaque screening wall or fence no less than six feet in height. The open side of the enclosure shall not face any public street or the front yard of any adjacent property. 18. All exterior lighting shall be downcast so as not to adversely impact neighboring residential properties. The applicant must submit a detailed lighting plan for review by the Building Official, prior to construction. 27 P & Z Minutes Page 7 June 6, 2017 CASE NUMBER: 2017 -0603 REQUEST: CONDITIONAL USE PERMIT & WAIVER TO ZONING CODE LOCATION: 3989 CENTRAL AVENUE NE APPLICANT: NANCY ALEKSUK, 500 LLC Holmberg explained that at this time, Nancy Aleksuk on behalf of 500, LLC has submitted two land use applications; a Conditional Use Permit request with a Waiver and a Site Plan Review request. Both applications relate to a proposed development located at 3989 Central Avenue NE. (the former office building). The building on the subject property has been mostly vacant for the past 3 years, with the last tenant leaving one year ago in the spring of 2016. The applicant believes it has found an anchor tenant, two K -12 Schools, which will allow the applicant to renovate the building and also lease to the Columbia Heights Adult Education Facility and future retail on the first floor. The applicant has indicated that a coffee shop is interested in leasing space on the first floor. This report specifically details the request for a Conditional Use Permit, and a separate second report will detail the request for Site Plan Review. The Conditional Use Permit request has been made as the applicant is proposing to operate two K -12 Schools in the existing building. K -12 Schools require Conditional Use Permits and are required to meet Specific Development Standards outlined in the Zoning Ordinance. The proposed K -12 School use does not meet one of the Specific Development Standards in the Zoning Ordinance, so the applicant is requesting a waiver to this requirement. ZONING ORDINANCE The property located at 3989 Central Avenue is located in the Mixed Use Zoning District. The properties to the north, south and west are located in the Central Business Zoning District. The properties to the east are located in the R -3, Multiple Family Residential Zoning District. The intent of the Mixed Use Zoning District is to encourage a flexible, high - quality design strategy for development and /or redevelopment of specific areas within the community. In these areas of the City, there must be a mix of uses. The Zoning Ordinance requires that there be at least two of the following uses: Residential, Commercial and Institutional. It further states that all permitted, conditional, and permitted accessory uses identified in our residential and commercial districts, which are consistent with the Comprehensive Plan, shall be treated as potentially allowable uses within the Mixed Use Development Districts. The proposal for a K -12 School is identified in our residential districts, as this is the only area of the City where K -12 Schools are currently permitted. In our residential districts, K -12 Schools require a Conditional Use Permit. For the proposal for the Adult Education Facility, while not specifically defined in our Zoning Ordinance, it is staff's interpretation that this type of use is identified as a commercial use. The proposal for retail would also be identified as a commercial use. By the standards outlined above, it appears that the proposal would meet the Mixed Use District standards by ensuring that there are two of the three required uses. This means that the proposed K -12 School would satisfy the required residential use, and the Adult Education Facility, and future retail would satisfy the commercial use requirement. 28 P & Z Minutes Page 8 June 6, 2017 Staff recommends that a condition be added to the permit that limits the amount of area in the building that the schools can occupy. This is similar to how we have handled other K -12 School Conditional Use Permits in the past. Staff is making this recommendation, to ensure that the building remains a Mixed Use Building as to not compromise the intended commercial character of the area. Staff recommends that approximately half of the building be reserved for commercial use and the first floor be retained for commercial use to ensure compatibility with the character of the surrounding area. The applicant has requested a waiver to a Specific Development Standard of the Zoning Ordinance. This standard requires that the parcel upon which the K -12 School is located shall have a lot area no less than four times the size of the building footprint. The parcel upon which the proposed use is located has historically been used for office and retail uses with parking provided in the adjacent parking ramp and parking lot. This particular building is unique compared to the rest of the commercial parcels throughout the City, as it is six stories tall and there is a small amount of open parcel area that is not covered by a building. Also, when it was originally built, it was not intended to be a K -12 School, and as such, the parcel does not meet this requirement. It is assumed this requirement is meant to provide area for outdoor recreation and parking associated with a K- 12 School. In the attached narrative detailing the applicants requested waiver to this standard, the applicant argues that this requirement is based on an older and no longer universally applicable model of school operations. The applicant states that the proposed K -12 school will be constructing a safe, contained playground area on the first and second level of the current deck on the north side of the building. The applicant argues that the school has determined this area will be more than adequate to meet the needs of the students. COMPREHENSIVE PLAN The Comprehensive Plan guides this area for commercial uses. This property was recently rezoned from Central Business to Mixed -Use. Due to the ongoing Comprehensive Plan revision, currently underway, the City Attorney has advised to amend the map when the update is complete. As such, the property is not designated for Mixed Use in the Comprehensive Plan, rather Commercial Use. While the K -12 School use is not a Commercial Use, the building will still contain commercial users. Additionally, staff is recommending that the Conditional Use Permit require a portion of the building be reserved for Commercial or Institutional Uses. Specifically, staff recommends that approximately half of the building be reserved for Conm7ercial or Institutional Uses, including the first floor. FINDINGS OF FACT (a) The use is one of the conditional uses listed for the zoning district in which the property is located, or is a substantially similar use as determined by the Zoning Administrator. The Zoning Ordinance requires that Mixed Use Developments contain at least two of the following uses: Residential, Commercial and Institutional. It further states that all permitted, conditional, and permitted accessory uses identified in our Residential and Commercial Districts, which are consistent with the Comprehensive Plan shall be treated as potentially allowable uses within the Mixed Use Development Districts. K-12 Schools are specifically listed as a Conditional Use in the City's Residential Zoning Districts. By this standard, a K -12 School would be considered a potentially allowable use. 29 P & Z Minutes Page 9 June 6, 2017 (b) The use is in harmony with the general purpose and intent of the Comprehensive Plan. The property is guided for commercial use. As stated above, staff recommends that a portion of the building should be reserved to ensure a commercial component of the mixed use development property remains. (c) The use will not impose hazards or disturbing influences on neighboring properties. The applicant will have to adhere to Specific Development Standards as it relates to K -12 Schools. The City has Specific Development Standards which are meant for unique characteristics of certain land uses. The standards are meant to protect the neighboring properties from any hazardous or disturbing influences. The applicant has requested a waiver to one of the Specific Development Standards. The City Council has the authority to waive this requirement if they choose to do so. The applicant argues that there is sufficient space available on the outdoor patio area, to allow for a play area to be constructed and utilized by the proposed schools. (d) The use will not substantially diminish the use of property in the immediate vicinity. Staff does not anticipate that the K -12 School operation will substantially diminish the use of the property in the surrounding area. (e) The use will be designed, constructed, operated and maintained in a manner that is compatible with the appearance of the existing or intended character of the surrounding area. The use will be subject to the Specific Development Standards as outlined in the Zoning Code for K -12 Schools. These specific requirements are added as conditions to the proposed Conditional Use Permit, and meant to protect the intended character of the surrounding area. Staff has recommended that the City limit the amount of space that the proposed schools can utilize in the building, to preserve the intended commercial character of the area. (f) The use and property upon which the use is located are adequately served by essential public facilities and services. This is correct. The property is served by two local streets, 401h Avenue and Central Avenue. (g) Adequate measures have been or will be taken to minimize traffic congestion on the public streets and to provide for appropriate on -site circulation of traffic. The on -site circulation of trafc has been detailed in a traffic management plan, which was submitted with the applicant's Site Plan Review application. This plan has been reviewed by staff and MNDOT. Anoka County review is currently pending. At this time staff believes that the operation of the K -12 School will have minimal impact to the surrounding local City streets. The City Engineer and MNDOT have reviewed the traffic management plan. At this time, they have found it to be minimally acceptable as it is unclear how pedestrian traffic will operate on the site. Staff has added a condition that if the school's drop off and pick up routing results in delay on the surrounding local streets or has a negative traffic impact, a new traffic management plan will be required to be submitted for review to address operational deficiencies. 30 P & Z Minutes Page 10 June 6, 2017 (h) The use will not cause a negative cumulative effect, when considered in conjunction with the cumulative effect of other uses is the immediate vicinity. Staff has added proposed conditions to the permit for the City Council to consider in an effort to minimize potential negative effects. (i) The use complies with all other applicable regulations for the district in which it is located. If the applicant complies with the Specific Development Standards, the use would comply with the City's applicable regulations. However, in this case, the application does not meet one of the Specific Development Standards of the City's Zoning Ordinance. The City Council can grant a waiver to this standard. If the waiver is granted it appears that the use complies with all other applicable regulations for the district in which it is located. CONCLUSION While staff believes there is merit to the applicant's proposal, the application does not meet a Specific Development Standard outlined in the City's Zoning Ordinance. These standards are in place to mitigate any potential negative impact on surrounding property, and to provide supplemental regulations to address unique characteristics of land use. The City Council has the authority to waive this standard, as requested by the applicant. Staff believes that while the applicant does not meet this requirement, they have proposed a unique, alternative plan for an outdoor recreation area and adequate parking should be provided in the adjacent parking ramp. By staff's literal interpretation of the City's Zoning Ordinance, the application does not meet applicable regulations, and therefore staff would request that if the City Council approves the Conditional Use Permit with the requested Waiver, that the City Council directs staff to remove this requirement. Staff recommends approval of the proposed Conditional Use Permit for the property located at 3989 Central Avenue NE. subject to certain conditions. Questions by members: Novitsky stated that he works at a school that has an enrollment of 220 kids. He asked how many kids would be attending this school. Holinbeck said the plan is to start with approximately 350 students and they have indicated their intent to expand within the building. Novitsky was concerned with lack of outdoor space for that many students. Hoium wanted clarification regarding the requirement to have different uses and how it is applied to the building. Schill asked what type of difficulties there may be in attracting retail use in a building that has a school as their main tenant. Would there be any restrictions as to what type of retail use is acceptable and what is not. Holmbeck said she is unaware of any restrictions from the State, and there aren't any in our zoning Code. 31 P & Z Minutes Page 11 June 6, 2017 Hoium said the plan indicates that they will use the space (alleyway) between the ramp and the building for the buses. The plan shows there would be room for eight buses. He thinks that is very tight. Szurek stated that the narrative prohibits the whole building being used as a school. She said the plan looks like it is. The 6th floor will be for Adult Education and all other floors would be occupied by the K -12 school, except for a small coffee shop. She said the proposal for the small coffee shop is a weak attempt to satisfy the MXU retail requirement. Szurek also said the "possibility" of a coffee shop doesn't mean that one would actually go in. Holmbeck told her that technically the Adult Education would be a commercial use and the K- 12 school meets the residential use. Hoeft explained why the K -12 school would fall into the residential category. He pointed out that the MXU District has no defined criteria regarding the amount needed for each category, but staff had recommended a condition that only t/2 the building could be used as a K -12 to ensure that there is always room for a retail/commercial use. Szurek then asked if MNDOT or Anoka County had reviewed the plan and what their comments were. She stated that 40th Avenue is scheduled for major work this year and asked how they propose to handle this. Holmbeck responded that MNDOT had no comments about their plan and Anoka County's response is still pending. Szurek then noted that the applicant wanted to remodel part of the first floor for a gym area which technically would be part of the K -12 school area. This means the building would technically be over the 50% threshold. Hoeft said if they violate the conditions approved, then it goes back to the City Council whereby they could amend the CUP or revoke it. Holmbeck told members that she had received a new plan this afternoon which said the whole first floor would be for retail with the exception of an "exercise room" that could be used by occupants of the entire building and would be considered an amenity of the Developers space, not the schools. Therefore, according to the new plan submitted the K -12 would occupy 2/3 of the building. Public Hearing Opened. Dean Dovolis- Architect and Nancy Aleksuk, Swervo Development Co. were present. Aleksuk said she has been in charge of development and leasing of the building. They reviewed the new plan with the members. They explained that they would renovate the lower portion, remove the brick walls that are crumbling along 40th Avenue and construct a two level playground in that patio area and the old bank drive thru area. They would also add a patio space by the entry off Central Avenue and add landscaping around the building. The alleyway would accommodate eight buses and parents would be required to drop off or pick up students on the 2"`r level of the parking ramp. They would then go across the skyway. Michael Margolies is assisting the owners with their plan. He said they have met the criteria of two uses and that the Code does not specify the percentage each must be. The staff report recommends a 50150 split. If the right of expansion or flexibility is removed, it prevents them from going forward with their plans. Staff made this recommendation without consulting the applicant and their needs. They had trouble leasing the building out, and now that they have, the tenant has needs more space than the recommendation allows. He requested the commission approve with language that allows them to use up to 66% of the building for K -12 as needed. He also said they had a traffic study done and the report indicates the plan will work. He noted that High School students use Public Transportation so only the grade school students will use the busing area. 32 P & Z Minutes Page 12 June 6, 2017 Novitsky said the buses and parent vehicles will all be exiting onto Central at once and this will create a problem. He pointed out that stacking will not be allowed on 40th Avenue as this would create a dangerous situation. Margolies told members that the Traffic Management Company said it would work. They did research on who the students are and the demographics of the area. Szurek asked how they would handle the reconstruction of 40th Avenue. Margolies said it would create a hardship for a short time but they would make accommodations. They have reached out to the Methodist Church to see if they could use their parking lot temporarily. Szurek pointed out this will be an inconvenience for the residents along Gould Ave. She also expressed concern that the High School students would be crossing Central Ave when they get off the City buses. She is concerned with student & driver safety especially since 40th Avenue and Central Ave is such a busy intersection. Margolies admits it's not an ideal situation, but it can work. Accommodations for Urban schools and transportation have changed and kids are acclimating accordingly. Location and accessibility are more important than the perfect site. Aleksuk said the school start times are staggered and this will help alleviate traffic issues. This use will probably work better than a business /office use where employees all arrive and leave at once. Szurek asked if parents dropped students off on Gould, 40th Ave, or Central, which violates the conditions, could the CUP be revoked. Holmbeck stated that Condition #5 addresses the pick up and drop off area. Gould Avenue could be added as a restricted street to the condition. Novitsky doesn't feel there is adequate outdoor space. He also questioned where they would eat their lunches. Aleksuk said they would use a room on the 2nd floor and that lunch breaks would also be staggered. Hoium asked if there was a requirement for the size of the play area. Holmbeck said there is not a specific square footage requirement for this in our code, so the only standard we have for schools is that the property must be four times larger than the building footprint. This was probably put in the code to allow for adequate outdoor space. Hoium then asked if they had secured a retail tenant. Aleksuk said yes, but the Adult Education, Charter School and Coffee Shop all want to go in at the same time and are all contingent on one another. The school is the biggest tenant and is the driving force that will allow the whole project to happen. Schill asked what the breakdown of students would be. Aleksuk estimated that 250 would be K -6 and that approximately 100 would be High School age. She was asked what the High School Students would use for free space. She responded that the High School (Career Pathways) is a Vo -tech type school teaching them skills for jobs, and therefore, gym space is not a requirement for them. Novitsky asked what happens if the coffee shop doesn't make it since we have so many in town now. She said they would then try to find another tenant but they still meet the MXU criteria with the school and Adult Education Center. Aleksuk said no matter what percentage you decide on, there is never a guarantee that all the uses will succeed. Holmbeck asked Aleksuk to tell the members about the schools going in. Aleksuk said Skyline Academy is a STEM (Science, Technology and Mathematics) K -6 school and Career Pathways is the Vo -Tech type High School. Szurek asked why representatives of the Charter Schools were not present. She said they would be available for the City Council meeting Monday night. 33 P & Z Minutes Page 13 June 6, 2017 Hoeft told members this is a two part process and one can't go forward without the other. He stated that the request does not meet the Standards established for lot coverage. In order for the CUP approval, you have to waive the Development Standard. If you find it is not appropriate to approve the waiver, then the CUP cannot be approved. They can then appeal it to the City Council. If the Council upholds the denial than the CUP doesn't move forward. He told them if they recommend approving the waiver, then they can decide on the CUP. He said you have to take it on faith that they will follow the conditions that are established, and if they don't, then action can be taken. He told members that there is no magic number for the ratio for the different uses in an MXU zone. His only comment is that he would advise the applicant to include the playground and gym area in their plan as school space and be honest about the percentage used for such. Those spaces wouldn't exist without the school there and the City Council would be leery if they thought they were being deceived in some way. Hoium asked if the building would still be subject to paying property taxes if a school goes into that space. Hoeft told members yes, it is not considered tax exempt property like a Public School is. Hoium said we have one school in town that doesn't meet these standards, and should that fact affect their decision on this request. Hoeft said no, the other school is considered a legal non - conforming use and was in existence before these standards were established. Hoeft said the Commission does have to keep in mind they would be setting precedence and would be undermining the Development Standards if they approve an exception to them. He said the preferable way to address this is to do an amendment to the code rather than making exceptions on a case by case basis. The easy legal solution is to not grant the waiver and to recommend the City Council amend the standards of the code. Hoeft reminded members that the Commission is acting as the Board of Appeals for the waiver request. The Commission can make a recommendation either way and the City Council can always override it. The City Council may choose to modify the City Code rather than granting a waiver. He stated that City Staff and the City Council would like to see the building used, but they must follow proper procedures and policies. Hoeft again said the first step is to decide whether or not to grant the waiver. Then the CUP and Site Plan can be addressed. Hoium didn't think granting a waiver to the Code is appropriate. He thought the City Council should decide whether to approve the waiver or to direct staff to amend the code. Schill asked how many offices were in the building when it was fully occupied. They said that was hard to determine as there were several businesses in there over the years and each one had different needs. Szurek said she didn't feel the proposed plan was honest about how the building would really be used, and how much of the building the K -12 would really take up. Dovolis responded that he adjusted the plan to try and comply with staff's recommended condition that the K -12 be limited to 50% of the building, when in fact they need more space from the very start. He said they didn't get told of that condition until the last minute and they made an attempt to comply to the best of their ability. Aleksuk said if they get the waiver and CUP, construction would start immediately as the Adult Education Center needs a place by July 1St and the K -12 needs their space by the end of August. If the waiver is denied and the issue goes to the City Council, does that mean they have to come back to the P & Z at a later date for the CUP and Site Plan once the waiver is acted on. This would hold up the construction and would kill the project. Hoeft said the City Council can address the waiver, CUP and Site Plan at the Council meeting on June 12th, and that it would not need to come back to the Planning & Zoning Commission. 34 P & Z Minutes Page 14 June 6, 2017 Szurek asked if anyone in the audience wished to speak on this issue. Jim Suek of 850 40a' Avenue said he thought that the Adult Education use of the building would be primarily after hours, so the two uses wouldn't impact each other too much. He questioned if these two Charter schools already exist, why are they moving, and what is their experience and track record. Aleksuk said the Director of the High School (Career Pathways) has 25 years experience in education. They are currently located in south Minneapolis but have lost their leases, and they feel this is a good location with good accessibility. Public Hearing Closed. Motion by Hoium, seconded by Novitsky, to deny the waiver of the Specific Development Standards outlined in the Zoning Ordinance. The Commission requests the City Council consider this request or to direct staff to amend the Ordinance if deemed appropriate. Roll Call: Ayes - Hoium, Novitsky, and Szurek Nays - Schill MOTIONPASSED. Motion by Hoium, seconded by Novitsky, to deny the CUP based on the denial of the waiver request which doesn't meet the Specific Development Standards. The Commission again requests the City Council to act on this matter. Roll Call: Ayes - Hoium, Novitsky, and Szurek Nays - Schill MOTIONPASSED. Motion by Hoium, seconded by Novitsky, to forward the Site Plan approval without a recommendation to the City Council for consideration. All ayes. MOTIONPASSED. CASE NUMBER: 2017 -0603 REQUEST: SITE PLAN REVIEW LOCATION: 3989 CENTRAL AVE APPLICANT: 500 LLC -NANCY ALEKSUK THIS WAS NOT ADDRESSED BY THE COMMISSION DUE TO THE MOTION PREVIOUSLY MADE FORWARDING THIS ITEM TO THE CITY COUNCIL. OTHER BUSINESS Holmbeck told members that there would be a meeting on July5th and asked if anyone would not be able to make it. Hoium said he would not be available. The meeting was adjourned at 8:45 pm. Respectfully submitted, Shelley Hanson Secretary 35 CH COLUMBIA HEIGHTS AGENDA SECTION CONSENT ITEM NO. 7C MEETING DATE JULY 10, 2017 CITY OF COLUMBIA HEIGHTS - COUNCIL LETTER ITEM: RESOLUTION 2017 -74 APPROVING PLANS AND SPECIFICATIONS AND ORDERING ADVERTISEMENT FOR BIDS FOR 2017 STATE AID STREET REHABILITATON, CITY PROJECT 1705 DEPARTMENT: PUBLIC WORKS CITY MANAGER'S APPROVAL�U BY /DATE: KEVIN HANSEN / JULY 5, 2017 BY /DATE: BACKGROUND: The Public Improvement Hearing for State Aid Street Rehabilitation, Project 1705, was held on May 1, 2017. The City Council ordered the improvement project for 39th Avenue from Jefferson Street /Huset Parkway to Central Avenue, including a 6 -foot concrete sidewalk on the south side. ANALYSIS /CONCLUSIONS: The proposed street, utility and sidewalk construction remains essentially unchanged from the work presented at the Public Improvement Hearing. On 39th Avenue minor storm /sanitary structure work and storm /sanitary sewer castings will be replaced as needed. Adjustments to water main surface structures and hydrant replacement(s) will also be done. The proposed funding for this work is as follows: Street and Sidewalk: Assessments $252,210. State Aid $ 74,510. Infrastructure Fund $ 16,570. Utilities: Storm Sewer Construction Fund $42,000 Sanitary Sewer Construction Fund $15,000 Water Construction Fund $17,500 STAFF RECOMMENDATIONS Final plans and specifications for the 2017 State Aid Street Rehabilitation Improvement project are substantially complete. The bid opening is scheduled for Tuesday, August 8, with City Council award on August 14, 2017. RECOMMENDED MOTION(S): Move to waive the reading of Resolution 2017 -74, there being ample copies available to the public. Move to adopt Resolution 2017 -74 approving Plans and Specifications and ordering Advertisement for Bids for 2017 State Aid Street Rehabilitation, City Project 1705. ATTACHMENT(S): Resolution 2017 -74 0 RESOLUTION NO. 2017 -74 A resolution of the City Council for the City of Columbia Heights, Minnesota, WHEREAS, pursuant to a resolution passed by the City Council on May 1, 2017, the City Engineer has prepared plans and specifications for State Aid Street Rehabilitation for the following: • 39th Avenue from Jefferson Street /Huset Parkway to Central Avenue Now therefore, in accordance with the foregoing, and all ordinances and regulations of the City of Columbia Heights, the City Council of Columbia Heights makes the following: FINDINGS OF FACT NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF COLUMBIA HEIGHTS, MINNESOTA 1. Such plans and specifications identified as 2017 State Aid Street Rehabilitation, City Project 1705, are hereby approved. 2. The City Clerk shall prepare and cause to be inserted in the official paper and in a trade journal an advertisement for bids upon making of such improvement under such approved plans and specifications. The advertisement shall be published a minimum of three weeks prior to the bid opening, shall specify the work to be done, shall state that bids will be received by representatives of the City Council of Columbia Heights until 10:00 a.m. on Tuesday August 8, 2017 at which time they will be publicly opened at the place designated, will then be tabulated and will be considered by the City Council on Monday, August 14, 2017, in the Council Chambers. Any bidder whose responsibility is questioned during consideration of the bid will be given an opportunity to address the council on the issue of responsibility. No bids will be considered unless sealed and filed with the clerk and accompanied by a cash deposit, bid bond, or certified check payable to the City of Columbia Heights for 5 percent of the amount of such bid. ORDER OF COUNCIL Passed this 10th day of July, 2017 Offered by: Seconded by: Roll Call: Donna Schmitt, Mayor Attest: Katie Bruno, City Clerk /Council Secreta 37 CH COLUMBIA HEIGHTS AGENDA SECTION CONSENT ITEM NO. 7D MEETING DATE JULY 10, 2017 CITY OF COLUMBIA HEIGHTS - COUNCIL LETTER ITEM: RESOLUTION 2017 -75 APPROVING PLANS AND SPECIFICATIONS AND ORDERING ADVERTISEMENT FOR City Storm Sewer: BIDS FOR 40TH AVENUE STORM SEWER IMPROVEMENTS AND STREET REHABILITATION, CITY PROJECT City State Aid: 1706 DEPARTMENT: PUBLIC WORKS CITY MANAGER'S APPROVAL: BY /DATE: KEVIN HANSEN /JULY 5, 2017 BY /DATE: BACKGROUND: The joint powers agreement with Anoka County for the Storm Sewer Improvements and Street Rehabilitation project on 40th Avenue (CSAH 2) from Central Avenue to Reservoir Boulevard was approved by the City Council on June 12, 2017. The Agreement provides the cost share for the storm sewer and street rehabilitation work and that the City of Columbia Heights will be the lead agency for the design and construction administration on the project. ANALYSIS /CONCLUSIONS: The work extents will be on CSAH 2 or 401h Avenue from 58 feet east of the centerline of TH 65 to Reservoir Boulevard. The existing storm sewer and drainage structures will be replaced on the south side of the roadway along with a new storm sewer system on the north side of the roadway to alleviate localized flooding. The roadway will be fully reconstructed from 58 feet east of the centerline of TH 65 to 650 feet east of the centerline of TH 65, and will be milled and overlaid from 650 feet east of the centerline of TH 65 to Reservoir Boulevard. Other improvements include but are not limited to: reconstruction of pedestrian ramps, curb and gutter repairs, drainage structure replacement, concrete sidewalk replacement and repairs, pavement striping and incidentals. The costs of these improvements have been estimated at $850,000 and will be shared by the County and the City. Project funding is provided as follows: Anoka County: $488,000 City Storm Sewer: $200,000 City State Aid: $167,000 STAFF RECOMMENDATIONS Final plans and specifications for the 2017 State Aid Street Rehabilitation Improvement project are substantially complete. The bid opening is scheduled for Tuesday, August 8, 2017 with City Council award on August 14, 2017. RECOMMENDED MOTION(S): Move to waive the reading of Resolution 2017 -75, there being ample copies available to the public. Move to adopt Resolution 2017 -75 approving Plans and Specifications and ordering Advertisement for Bids for 40th Avenue Storm Sewer Improvements and Street Rehabilitation, City Project 1706. ATTACHMENT(S): Resolution 2017 -75 38 RESOLUTION NO. 2017 -75 A resolution of the City Council for the City of Columbia Heights, Minnesota, WHEREAS, pursuant to a Joint Powers Agreement approved by the City Council on June 12, 2017, the City Engineer has prepared plans and specifications for 40TH Avenue Storm Sewer Improvements and Street Rehabilitation for the following: • 40th Avenue (CSAH 2) from Central Avenue to Reservoir Boulevard Now therefore, in accordance with the foregoing, and all ordinances and regulations of the City of Columbia Heights, the City Council of Columbia Heights makes the following: FINDINGS OF FACT NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF COLUMBIA HEIGHTS, MINNESOTA 1. Such plans and specifications identified as 40TH Avenue Storm Sewer Improvements and Street Rehabilitation, City Project 1706, are hereby approved. 2. The City Clerk shall prepare and cause to be inserted in the official paper and in a trade journal an advertisement for bids upon making of such improvement under such approved plans and specifications. The advertisement shall be published a minimum of three weeks prior to the bid opening, shall specify the work to be done, shall state that bids will be received by representatives of the City Council of Columbia Heights until 10:00 a.m. on Tuesday, August 8, 2017 at which time they will be publicly opened at the place designated, will then be tabulated and will be considered by the City Council on Monday, August 14, 2017 in the Council Chambers. Any bidder whose responsibility is questioned during consideration of the bid will be given an opportunity to address the council on the issue of responsibility. No bids will be considered unless sealed and filed with the clerk and accompanied by a cash deposit, bid bond, or certified check payable to the City of Columbia Heights for 5 percent of the amount of such bid. ORDER OF COUNCIL Passed this 10th day of July, 2017 Offered by: Seconded by: Roll Call: Donna Schmitt, Mayor Attest: Katie Bruno, City Clerk /Council Secreta 39 CH COLUMBIA HEIGHTS AGENDA SECTION CONSENT ITEM ITEM NO. 7E MEETING DATE JULY 10, 2017 CITY OF COLUMBIA HEIGHTS - CITY COUNCIL ITEM: Parkview Villa South Fund 213 Balance Designation DEPARTMENT: Community Development CITY MANAGER'S APPROVAL: BY /DATE: Keith Dahl, June 30, 2017 BY /DATE: BACKGROUND: On December 13, 2010, the City Council (the "Council ") of the City of Columbia Heights (the "City ") adopted Resolution 2010 -138, a resolution which designated certain fund balance classifications and committed certain governmental funds to specific purposes due to the Government Accounting Standards Board (the "GASB ") issuance of a new financial reporting standard for governmental funds. The new financial reporting standard preliminary changed the terminology of certain funds, but in some cases also specified the purpose for which said funds may be used. This inevitably placed internal restrictions on those funds. Pursuant to Resolution 2010 -138, the Parkview Villa South Fund 213 (the "PVV Fund ") was designated for the purposes of Senior Housing operations because at that time the Housing and Redevelopment Authority in and for the City (the "HRA ") owned Parkview Villa, a senior housing facility. Since the HRA has conveyed Parkview Villa to a private operator, and has ceased all senior housing operations, it is no longer necessary to commit the PVV Fund for the purposes of senior housing operations. Thus, in conjunction with the external restrictions on the PVV Fund under the HRA Act, and the several projects and programs the Columbia Heights Economic Development Authority (the "EDA ") desire to see initialed and or completed in 2018, the PVV Fund may be designated for Redevelopment. If the PVV Funds, which amount to $1,025,445 were designated for Redevelopment, the HRA and the EDA may use these funds for economic redevelopment purposes. STAFF RECOMMENDATION: Staff recommends approval of Resolution 2017 -76 as presented authorizing a change in the fund balance designation for Parkview Villa South Fund 213. RECOMMENDED MOTION(S): Motion: Move to waive the reading of Resolution 2017 -76, there being ample copies available to the public. Motion: Move to approve Resolution No. 2017 -76, a resolution authorizing change in fund balance designation for Parkview Villa funds. ATTACHMENTS: 1. Resolution 2017 -76 (1 page) City of Columbia Heights - Council Letter 40 CITY OF COLUMBIA HEIGHTS RESOLUTION NO. 2017-76 RESOLUTION AUTHORIZING CHANGE IN FUND BALANCE DESIGNATION FOR PARKVIEW VILLA FUNDS WHEREAS, the City Council (the "Council ") of the City of Columbia Heights ( "City ") previously adopted its Resolution No. 2010 -138, which designated certain fund balance classifications and committed certain govermnental funds not otherwise subject to external or internal restrictions to specified purposes; and WHEREAS, among the committed funds was the Parkview Villa South Fund 213 (the "PVV Fund "), which was committed by said resolution to senior housing; and WHEREAS, the Housing and Redevelopment Authority in and for Columbia Heights has conveyed the Parkview Villa senior housing facility to a private operator and has ceased all housing operations, and therefore the City finds and determines that it is no longer necessary and desirable to commit the balance of the PVV Fund to senior housing purposes; and WHEREAS, the City is authorized to commit funds to a new purpose by resolution, and has determined that the PVV Fund should be committed to economic redevelopment purposes carried out by the Columbia Heights Economic Development Authority. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Columbia Heights that: 1. The Council hereby amends Resolution No. 2010 -138 to commit all unrestricted fund balance in Parkview Villa South Fund 213 to Redevelopment, effective upon the date of approval of this resolution. 2. The City Manager and Finance Director/Treasurer of the City are authorized to take all actions necessary to effect the commitment of the PVV Fund balance to Redevelopment, pursuant to this resolution. Approved by the City Council of the City of Columbia Heights this 10th day of July, 2017. Mayor ATTEST: City Clerk 502569v1 MNI CL162 -31 41 CH COLUMBIA HEIGHTS AGENDA SECTION CONSENT ITEM NO. 7F MEETING DATE JULY 10, 2017 CITY OF COLUMBIA HEIGHTS - COUNCIL LETTER ITEM: ACCEPT PROPOSALS AND AWARD CONTRACT FOR CIRCLE TERRACE PARK BUILDING, CITY PROJECT 1609 DEPARTMENT: PUBLIC WORKS CITY MANAGER'S APPROVAL:�.j BY /DATE: KEVIN HANSEN /JULY 6, 2017 BY /DATE: BACKGROUND: Plans and specifications were prepared and advertised for bid based on the review comments by the City Council, Park & Recreation Commission, and City staff. The building materials use durable materials such as stone and cement fiber siding and a metal roof and follows the Commission directive of earth tones for color. The building is simple in layout, as intended, for a meeting space with a restroom and small office for a Police Department substation or other staff use. The building also has an attached covered picnic shelter area. ANALYSIS /CONCLUSIONS: Nine bids were received and publicly read aloud at the May 17, 2017 bid opening. The low bid was submitted by Cobra Construction in the amount of $418,527. There were two alternates included in this bidding package. Alternate 1 substituted counter surfacing for laminate and Alternate 2 substituted a 30 -year architectural shingle roof for standing seam metal. The submitted bids are as follows: The low bid was significantly over the Architect's estimate of $285,000. Immediately after the bid opening the architect contacted the bidder s to investigate costs contributing to the high numbers —the results of his discussions with bidders and suppliers are attached. Primarily, building construction bid numbers are up over 20% (compared to the prior year) and the timing of the bid opening contributed to the high numbers. Alternate 2 was a deduct in the amount of $44,688 to replace the metal roof material with architectural shingles. Accepting both alternates from Cobra Construction would result in a low bid of $375,839. Project funding was primarily through a CDBG grant of $236,771. City staff contacted Anoka County to investigate the possibility of additional funding due to the bids received. Anoka County staff has informed us that they are recommending an additional $130,000 of funding that will be considered by the Anoka County Board on July 24th. As our bidding documents only allow a 60 -day window following the bid opening, staff is recommending contract award contingent on the County approval of the additional funding. 42 Base Bid with Bidder Base Bid Alternate 1 Alternate 2 Alternate 1 and 2 Cobra Construction 418,527.00 2,000.00 (44,688.00) 375,839.00 JB Vang 424,300.00 2,000.00 (15,000.00) 411,300.00 Derau Construction 479,200.00 2,500.00 (34,000.00) 447,700.00 TMG Construction 467,500.00 2,150.00 (18,000.00) 451,650.00 Dering Pierson Group 474,585.00 2,700.00 (15,000.00) 462,285.00 Versacon, Inc. 474,000.00 2,359.00 N/A 476,359.00 Ebert Construction 497,300.00 2,100.00 (12,500.00) 486,900.00 Morcon Construction 521,200.00 4,000.00 (15,000.00) 510,200.00 lyawe & Associates 790,000.00 2,500.00 (40,000.00) 752,500.00 The low bid was significantly over the Architect's estimate of $285,000. Immediately after the bid opening the architect contacted the bidder s to investigate costs contributing to the high numbers —the results of his discussions with bidders and suppliers are attached. Primarily, building construction bid numbers are up over 20% (compared to the prior year) and the timing of the bid opening contributed to the high numbers. Alternate 2 was a deduct in the amount of $44,688 to replace the metal roof material with architectural shingles. Accepting both alternates from Cobra Construction would result in a low bid of $375,839. Project funding was primarily through a CDBG grant of $236,771. City staff contacted Anoka County to investigate the possibility of additional funding due to the bids received. Anoka County staff has informed us that they are recommending an additional $130,000 of funding that will be considered by the Anoka County Board on July 24th. As our bidding documents only allow a 60 -day window following the bid opening, staff is recommending contract award contingent on the County approval of the additional funding. 42 City of Columbia Heights - Council Letter STAFF RECOMMENDATIONS Staff recommends contract award contingent on the County approval of the additional funding as stated above. Page 2 RECOMMENDED MOTION(S): Move to award Circle Terrace Park Building construction, Project 1609, contingent on additional funding from Anoka County, to the firm of Cobra Construction based upon their low, qualified, responsible bid in the amount of $418,527 and accepting Alternates 1 and 2, for a total cost of $375,839 from Fund 412 - 51609 -5185; and, furthermore, to authorize the Mayor and City Manager to enter into a contract for the same. ATTACHMENT(S): Bid opening minutes ISG Recommendation Letter 43 CITY OF COLUMBIA HEIGHTS Minutes of Bid Opening on Wednesday, May 17, 2017, 2:00 p.m. Circle Terrace Park Community Room and Shelter City Project 1609 Pursuant to an advertisement for bids for the Circle Terrace Park Community Room and Shelter, City Project 1609, an administrative meeting was held on May 17, 2017 at 2:00 p.m. for the purpose of bid opening. Attending the meeting was: Simon lyawe, lyawe & Associates Dawn Wilkins, Morcon Construction Joe Wagner, ISG, Inc. Terry Stangl, Versacon, Inc. Loren Green, Ebert, Inc. Rhonda Centers, Cobra Construction Nanci L. Virgin, The Heating Guy Kari Canill- O'Brien, Derau Construction Kevin Greeninger, TMG Construction Doug Evans, JB Vang Ryan Beyer, Dering Pierson Group Dan Kolpin, JS Cates Construction Kevin Hansen, City Engineer Sue Schmidtbauer, Public Works Secretary Bids were opened and read aloud as follows: Bidder Base Bid Alternate 1 Alternate 2 Cobra Construction 418,527.00 2,000.00 (44,688.00) JB Vang 424,300.00 2,000.00 (15,000.00) Derau Construction 479,200.00 2,500.00 (34,000.00) TMG Construction 467,500.00 2,150.00 (18,000.00) Dering Pierson Group 474,585.00 2,700.00 (15,000.00) Versacon, Inc. 474,000.00 2,359.00 N/A Ebert Construction 497,300.00 2,100.00 (12,500.00) Morcon Construction 521,200.00 4,000.00 (15,000.00) lyawe & Associates 790,000.00 2,500.00 (40,000.00) Respectfully submitted, Sue Schmidtbauer Public Works Secretary Base Bid with Alternate 1 and 2 375,839.00 411, 300.00 447,700.00 451,650.00 462,285.00 476,359.00 486, 900.00 510,200.00 752,500.00 44 May 25, 2017 Kevin Hansen Director of Public Works /City Engineer City of Columbia Heights 637 38th Avenue NE Columbia Heights, MN 55421 RE: Bid Result Summary for Circle Terrace Park Community Room and Shelter Kevin, The following letter provides a summary of the design and bidding process for the Circle Terrance Park Community Room and Shelter project in Columbia Heights. This includes a summary of the design and cost estimate process, bids received, as well as our recommendation for moving forward. We understand that the project will be predominately funded through a grant from Anoka County and remaining within preferred budget is essential. Summary of Design Process ISG met with City staff to discuss the scope of the project, including anticipated budget and funding. Based on these discussions, ISG prepared a schematic design and the associated Opinion of Probable Cost. The estimate exceeded the City's anticipated budget, and ISG continued to work with City staff to adjust design elements in an effort to reduce overall costs. Based on the revised schematic design the Opinion of Probable Cost totaled $283,710. In addition to ISG's estimators, we also utilized several resources to determine the proposed probable costs including RS Means Cost Data and construction costs from previous projects with a similar scope of work. ISG also reached out to several industry experts for feedback on the anticipated cost based on the proposed design. At that time, the estimate was in -line with the resources and feedback from industry experts. Upon final approval of the revised design and associated probable cost, ISG completed the design process and uploaded bidding documents to QuestCDN. Bidding documents were also provided to select general contractors that had previous experience performing similar types of work who we believed would be a good fit for the project. Summary of Bids Received Nine general contractor bids were received with base bids ranging from $418,527 to $790,000, which exceeded the City's preferred budget of $265,000. Based on the bids received, costs for concrete, masonry, finishes, as well as plumbing and electrical exceeded the opinion of probable cost. We are aware that the industry is at its peak both for this construction season and historically as compared to recent years. Many general contractors have also already contracted their work for the season thus limiting potential bidders. ISG believes that the timing of the bid coupled with the industry peak resulted in increased costs. Recommendation Based on the bid proposals received and further conversations with you in the past few days, we recommend that the City and ISG work with the apparent low bidder to discuss potential options to further explore additional cost - saving measures and possibly adjust minor design elements. Feel welcome to contact me if you have any questions or if there is any additional information we can provided. We look forward to continuing our partnership with the City of Columbia Heights. Sincerely, Jw- Joe Wagner, CD Project Manager + Construction Administrator Architecture Group CH COLUMBIA HEIGHTS AGENDA SECTION CONSENT AGENDA ITEM NO. 7G MEETING DATE JULY 10, 2017 CITY OF COLUMBIA HEIGHTS - COUNCIL LETTER ITEM: LICENSE AGENDA DEPARTMENT: Community Development CITY MANAGER'S APPROVAL: BY /Date: JULY 7, 2017 BY /Date: BACKGROUND /ANALYSIS Attached is the business license agenda for the July 10, 2017 Council meeting. This agenda consists of applications for 2017 Contractor Licenses. At the top of the license agenda you will notice a phrase stating *Signed Waiver Form Accompanied Application. This means that the data privacy form has been submitted as required. If not submitted, certain information cannot be released to the public. RECOMMENDED MOTION: Move to approve the items as listed on the business license agenda for July 10, 2017 as presented. 46 Documentl City of Columbia Heights - Council Letter TO CITY COUNCIL July 10, 2017 *Signed Waiver Form Accompanied Application CONTRACTOR'S LICENSES -2017 BLDG *G.V. Heating 5182 W Broadway, Crystal $60 *Anderson Htg 1628 Co. Hwy 10, Spring Lk Pk $60 *Burnomatic, Mooney... 2925 Garfield Ave S, Mpls $60 *Bill Fignar Plumbing 2844 Johnson St. Mpls $60 rfA Page 2 CO CD W 2 m J O LL O H U CO W I� O N z o /W V r J ` z J O7-� FR W U Q W U) QOO zz� W 2 W OWW z W d W 0 W U z z LL ti O N O r O z H W W J U z O U CO 2 CD � 2 O Q Q CO LU z Oz 2 Z Q J W O LL O U O W z O Q D O cn U U Y U � U C C E a) E O UO U 4] L .f4 � L a) U � O C O a) Cl () W a) _ �> Q c ca � U O � U 0 LL U O U ~ � U 00 "r U) oo ca r LO N O O CV r L r � � U O � � O � � N U) O a) cu E Q O cu O cn -C r ca LO U CD c6 X o 0 m U � � cu o 0 c o CU o M m m O U � o � L U E c a) >+ o -0 E o a co v v U) W * * * a * * x O a * * H 0i -K * a w * * U} x> * * o * a H * * U �i fA <r * * O * * H O a * a Fa oo * * o O o U > * * m I 1-4 14 * * * * N C o O o o * * o LO a• * i >4 o in -K H 0 0 � � H U * * akO * m a * * H lD * * * * * * H H U 71 * * a u �� � u u u4 a 4�4 u4A u, � * 0000= u 0) z o>4 z O * * q m +3 -x zzzz* o m * * U Q0 x * zzzz* I- 0 a�-I * i' \ J C o U * W W W W* H o a) as aaaa4 V ro H * * * * * C o * * W o * * J * * a) .0 q N W c * * 4 J Vi . . . . . . . . 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Move to adopt Resolution Number 2017 -73, being resolution of the City Council of the City of Columbia Heights declaring the property listed a nuisance and approving the emergency abatement of violations from the property pursuant to City Code section 8.206. ATTACHMENTS: 2017 -73 City Council Resolution — Emergency Abatement (Secure /Board Up and Rodent Infestation Treatment with Pest Control Service) on 50015th Street N.E. 0 RESOLUTION 2017 -73 Resolution of the City Council for the City of Columbia Heights declaring the property a nuisance and approving emergency abatement of ordinance violations pursuant to Chapter 8, Article II, of City Code, of the property owned by Margaret Barnett (Hereinafter "Owner of Record "). Whereas, the owner of record is the legal owner of the real property located at 5001 5th Street N.E. Columbia Heights, Minnesota. 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 June 28, 2017 the Fire Department responded to a complaint at the address listed above. Inspectors noted that the structure was damaged, open, and unsecured and rodent infested. 2. That on June 28, 2017 the Fire Chief ordered that Advanced Companies secure the structure. 3. 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: A. Approve the emergency abatement of the hazardous situation located at 50015th Street N.E. CONCLUSIONS OF COUNCIL 1. That the property located at 5001 5th Street N.E. is in violation of the provisions of the Columbia Heights City Code as set forth in the Notice of Abatement. 2. That the emergency abatement of the hazardous situation located at 50015th Street N.E. is hereby approved. 57 ORDER OF COUNCIL 1. The property located at 50015th Street N.E. constitutes a nuisance pursuant to City Code. Passed this day of 2017 Offered by: Second by: Roll Call: Mayor Donna Schmitt Attest: Katie Bruno City Clerk /Council Secretary 58 CH COLUMBIA HEIGHTS AGENDA SECTION PUBLIC HEARING ITEM NO. 8B MEETING DATE JULY 10, 2017 CITY OF COLUMBIA HEIGHTS - COUNCIL LETTER ITEM: A Minor Subdivision for the property located at 2112 43rd Ave. NE. DEPARTMENT: Community Development CITY MANAGER'S APPR0VAL:C-,�o BY /DATE: Elizabeth Holmbeck /July 7, 2017 BY /DATE: BACKGROUND: At this time, Meagan Thornburg (property owner) has requested a Minor Subdivision for the subject property located at 2112 43rd Avenue NE. The applicant wishes to split a portion of the lot, and add the split portion (1,080 square feet) to the abutting property located at 2120 43rd Avenue NE. An application for the same land subdivision was previously submitted by Dave Linsk, owner of the adjacent property located at 2120 43rd Avenue NE. Mr. Linsk made the request in 2002 in order to allow for an addition to his garage and driveway, which otherwise would encroach into the neighboring property. The application was brought before the Planning and Zoning Commission on July 9th, 2002, where it was recommended for approval to the City Council and was subsequently approved by the City Council at the July 22, 2002 meeting by a unanimous vote, and passing of Resolution 2002 -44. The staff report to the Planning and Zoning Commission, letter to the City Council, and previously approved resolution are attached for reference. As a condition set forth by Resolution 2002 -44, the applicant was to file the approved land subdivision with the Anoka County Recorder's Office within one (1) year of the date of the Council action. The applicant did not file the land subdivision with the Anoka County Recorder's Office within the one year (1) timeframe, whereby rendering the previous approval invalid. Ms. Thornburg is in the process of selling the property located at 2112 43rd Avenue NE. and discovered that the previously approved Minor Subdivision had not been recorded with Anoka County, and a portion of her neighbor's driveway and garage are now on her property. In an effort to complete this process, prior to selling her home, Ms. Thornburg is requesting that the Planning and Zoning Commission and City Council review and approve the Minor Subdivision once again, so it can be recorded with Anoka County. A certificate of survey was completed by Kurth Surveying (copy attached) on May 8, 2002 and was submitted with the original application in 2002. No changes have been made to the survey since that time. The proposed subdivision of land meets the City's Zoning Ordinance in terms of lot size and lot width, and meets the intent of the Comprehensive Plan. The proposed Minor Subdivision went before the Planning and Zoning Commission on July 5, 2017, were it was unanimously recommended for approval to the City Council. The minutes from the meeting are attached for reference. STAFF RECOMMENDATION: Staff review finds that the application for a Minor Subdivision meets the requirements of the Zoning Ordinance. Staff recommends approval of the proposed Minor Subdivision for the property located at 2112 43rd Avenue NE., Columbia Heights, MN 55421 subject to certain conditions. 59 Minor Subdivision City of Columbia Heights - Council Letter RECOMMENDED MOTION(S): Motion: Move to wave the reading of Resolution No. 2017 -72, there being ample copies available to the public. Page 2 Motion: To approve the Minor Subdivision of the property located at 2112 43rd Avenue NE., subject to certain conditions of approval that have been found to be necessary to protect the public interest and ensure compliance with the provisions of the Zoning and Development Ordinance, including: The applicant shall be responsible for filing the approved subdivision with the Anoka County Recorder's Office. The approved minor subdivision will become invalid if the subdivision is not filed with the Anoka County recorder's Office within one year of the date of City Council action. ATTACHMENTS: Resolution No. 2017 -72 Planning Report Excerpt of July 5, 2017 Planning and Zoning Commission Meeting Minutes Application Applicant's Narrative Agreement between Property Owners Location Map (Current Condition /Property Line Configuration) Survey (Proposed Split) Dated May 8, 2002 Staff Report July 9, 2002 Council Letter July 22, 2002 Resolution No. 2002 -44 60 RESOLUTION NO. 2017 -72 A resolution of the City Council for the City of Columbia Heights, Minnesota, approving a Minor Subdivision in accordance with City Code Section 9.104 (K), for the property located at 2112 43rd Ave NE. Whereas, a proposal (Case # 2017 -0701) has been submitted by Meagan Thornburg (Zak) to the City Council requesting approval of a Minor Subdivision from the City of Columbia Heights at the following site: ADDRESS: 2112 43rd Ave. NE LEGAL DSCRIPTION: On file at City Hall. THE APPLICANT SEKS THE FOLLOWING: Minor Subdivision approval per City Code Section 9.104 (k). Whereas, the Planning and Zoning Commission held a public hearing as required by the City Zoning Code on July 5, 2017; Whereas, the City Council has considered the advice and recommendations of the Planning and Zoning Commission regarding the effect of the proposed Minor Subdivision upon the health, safety, and welfare of the community and its Comprehensive Plan, as well as any concerns related to compatibility of uses, traffic, property values, light, air, danger of fire, and risk to public safety in the surrounding areas; 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 Section 9.104 (K) of the Zoning Code outlines specific conditions in order for the City Council to approve a minor subdivision. They are as follows: 1. The proposed subdivision of land will not result in more than three lots. 2. The proposed subdivision of land does not involve the vacation of existing easements. 3. All lots to be created by the proposed subdivision conform to lot area and width requirements established for the zoning district in which the property is located. 4. The proposed subdivision does not require the dedication of public rights -of -way for the purpose of gaining access to the property. 5. The property has not previously been divided through the minor subdivision provisions of this article. 6. The proposed subdivision does not hinder the conveyance of land. 7. The proposed subdivision does not hinder the making of assessments or the keeping of records related to assessments. 8. The proposed subdivision meets all of the design standards specified in Section 9.115. 61 City of Columbia Heights - Council Resolution Page 2 Further, be it resolved, that the attached plans, maps, and other information shall become part of this Minor Subdivision approval; and in granting approval the City and the applicant agree that the Minor Subdivision shall become null and void if the Subdivision has not been filed with the Anoka County Recorder's Office within one (1) calendar year after the approval date. CONDITIONS 1. The applicant shall be responsible for filing the approved subdivision with the Anoka County Recorder's Office. The approved Minor Subdivision will become invalid if the subdivision is not filed with the Anoka County recorder's Office within one year of the date of City Council action. ORDER OF COUNCIL Passed this 10th day of July, 2017 Offered by: Seconded by: Roll Call: Donna Schmitt, Mayor Attest: Katie Bruno, City Clerk /Council Secretary 62 0 C,� COLUMBIA HEIGHTS CITY OF COLUMBIA HEIGHTS PLANNING AND ZONING COMMISSION PLANNING REPORT CASE NUMBER: 2017 -0701 DATE: June 27, 2017 TO: Columbia Heights Planning and Zoning Commission APPLICANT: Meagan Thornburg (Zak) LOCATION: 211243 d Ave NE., Columbia Heights, MN 55421 REQUEST: Minor Subdivision PREPARED BY: Elizabeth Holmbeck, City Planner INTRODUCTION At this time, Meagan Thornburg has requested a Minor Subdivision per City Code Section 9.104 (k), for the subject property located at 2112 43rd Avenue NE. The applicant wishes to split a portion of the lot, and add the split portion (1,080 square feet) to the abutting property line located at 2120 43rd Avenue NE. An application for the same was submitted by Dave Linsk, owner of the property located at 212043 rd Avenue NE. and brought before the Planning and Zoning Commission on July 9t"' 2002, where it was recommended for approval to City Council and was subsequently approved by City Council at the July 22, 2002 meeting by a unanimous vote and passing of Resolution 2002 -44. As a condition set forth by Resolution 2002 -44, the applicant was to file said lot split with the Anoka County Recorder within one (1) year of the date of the Council action, or given approval would become invalid. The applicant did not file the lot split with the Anoka County Recorder within the one year (1) timeframe, whereby rendering the previous approval invalid. Ms. Thornburg is in the process of selling the property located at 2112 43rd Avenue NE. and discovered that the lot split had not been recorded with Anoka County. In an effort to complete this process, prior to selling her home, Ms. Thornburg is requesting that the Planning and Zoning Commission and City Council review and approve the lot split again, so that the subdivision can be recorded with Anoka County. A certificate of survey was completed by Kurth Surveying (copy attached) on May 8, 2002 and was submitted with the original application for a lot split in 2002. No changes have been made to the survey since that time. The proposed subdivision of land meets the City's Zoning Ordinance in terms of lot size and lot width. 63 City of Columbia Heights Planning and Zoning Commission July 5, 2017 Planning Report Page 2 FINDINGS OF FACT Section 9.104 (K) of the Zoning Code outlines specific conditions in order for the City Council to approve a minor subdivision. They are as follows: 1. The proposed subdivision of land will not result in more than three lots. The proposed subdivision will result in two conforming lots. 2. The proposed subdivision of land does not involve the vacation of existing easements. No vacation of existing easements will occur as a result of the minor subdivision. 3. All lots to be created by the proposed subdivision conform to lot area and width requirements established for the zoning district in which the property is located. The newly created lots will both conform to the lot width and lot area requirements established for the property for the property's zoning designation. 4. The proposed subdivision does not require the dedication of public rights -of -way for the purpose of gaining access to the property. This is correct. 5. The property has not previously been divided through the minor subdivision provisions of this article. This is correct. The previous subdivision was never recorded with Anoka County. 6. The proposed subdivision does not hinder the conveyance of land. This is correct. 7. The proposed subdivision does not hinder the making of assessments or the keeping of records related to assessments. This is correct. 8. The proposed subdivision meets all of the design standards specified in Section 9.115. This is correct. RECOMMENDATION Staff review finds that the application meets the requirements of the Zoning Ordinance. Staff recommends that the Planning and Zoning Commission recommend approval of the proposed 64 City of Columbia Heights Planning and Zoning Commission July 5, 2017 Planning Report Page 3 minor subdivision for the property located at 2112 43rd Avenue NE., Columbia Heights, MN 55421 subject to certain conditions. Motion: Move to wave the reading of Resolution No. 2017 -72, there being ample copies available to the public. Motion: That the Planning and Zoning Commission recommends that the City Council approve the minor subdivision of the property located at 2112 43rd Avenue NE., subject to certain conditions of approval that have been found to be necessary to protect the public interest and ensure compliance with the provisions of the Zoning and Development Ordinance, including: 1. The applicant shall be responsible for filing the approved subdivision with the Anoka County Recorder's Office. The approved minor subdivision will become invalid if the subdivision is not filed with the Anoka County recorder's Office within one year of the date of City Council action. ATTACHMENTS Resolution No. 2017 -72 Application Applicant's Narrative Agreement between Property Owners Location Map Survey (Proposed Split) Dated May 8, 2002 Staff Report July 9, 2002 Council Letter July 22, 2002 Resolution No. 2002 -44 65 EXCERPT OF DRAFT MINUTES OF PLANNING AND ZONING COMMISSION JULY 5, 2017 The meeting was called to order at 7:00 pm by Chair Szurek. Commission Members present- Novitsky, Schill, and Szurek Members Excused: Hoium, Fiorendino Also present were Elizabeth Holmbeck (Planner), Keith Dahl (Economic Development Manager), and Jodi Griffin (Acting Secretary) along with Council Liaison, John Murzyn. PUBLIC HEARINGS CASE NUMBER: 2017 -0701 APPLICANT: Meagan Thornburg, Owner LOCATION: 211243 rd Avenue REQUEST: Minor Subdivision Holmbeck explained that Meagan Thornburg has requested a Minor Subdivision per City Code Section 9.104 (k), for the subject property located at 2112 43rd Avenue NE. The applicant wishes to split a portion of the lot, and add the split portion (1,080 square feet) to the abutting property line located at 2120 43rd Avenue NE. An application for the same was submitted by Dave Linsk, owner of the property located at 2120 43rd Avenue NE. and brought before the Planning and Zoning Commission on July 9th' 2002, where it was recommended for approval to City Council and was subsequently approved by City Council at the July 22, 2002 meeting by a unanimous vote and passing of Resolution 2002 -44. As a condition set forth by Resolution 2002 -44, the applicant was to file said lot split with the Anoka County Recorder within one (1) year of the date of the Council action, or given approval would become invalid. The applicant did not file the lot split with the Anoka County Recorder within the one year (1) timeframe, whereby rendering the previous approval invalid. Ms. Thornburg is in the process of selling the property located at 2112 43rd Avenue NE. and discovered that the lot split had not been recorded with Anoka County. In an effort to complete this process, prior to selling her home, Ms. Thornburg is requesting that the Planning and Zoning Commission and City Council review and approve the lot split again, so that the subdivision can be recorded with Anoka County. A certificate of survey was completed by Kurth Surveying (copy attached) on May 8, 2002 and was submitted with the original application for a lot split in 2002. No changes have been made to the survey since that time. The proposed subdivision of land meets the City's Zoning Ordinance in terms of lot size and lot width. FINDINGS OF FACT Section 9.104 (K) of the Zoning Code outlines specific conditions in order for the City Council to approve a minor subdivision. They are as follows: The proposed subdivision of land will not result in more than three lots. The proposed subdivision will result in two conforming lots. 2. The proposed subdivision of land does not involve the vacation of existing easements. 66 No vacation of existing easements will occur as a result of the minor subdivision. 3. All lots to be created by the proposed subdivision conform to lot area and width requirements established for the zoning district in which the property is located. The newly created lots will both conform to the lot width and lot area requirements established for the property for the property's zoning designation. 4. The proposed subdivision does not require the dedication of public rights -of -way for the purpose of gaining access to the property. This is correct. 5. The property has not previously been divided through the minor subdivision provisions of this article. This is correct. The previous subdivision was never recorded with Anoka County. 6. The proposed subdivision does not hinder the conveyance of land. This is correct. 7. The proposed subdivision does not hinder the making of assessments or the keeping of records related to assessments. This is correct. 8. The proposed subdivision meets all of the design standards specified in Section 9.115. This is correct. Staff review finds that the application meets the requirements of the Zoning Ordinance. Staff recommends that the Planning and Zoning Commission recommend approval of the proposed minor subdivision for the property located at 2112 43rd Avenue NE., Columbia Heights, MN 55421 subject to certain conditions. Questions from members: Chairperson Szurek asked if Ms. Thornburg would be the one to record the minor subdivision with Anoka County. Ms. Holmbeck stated that was correct since she is the one who applied for the minor subdivision at this time. Chairperson Szurek asked if the garage was there when the original lot split was requested in 2002. Holmbeck stated her understanding was that there was an existing garage on the property located at 2120 43rd Avenue NE in 2002, which was added on to in 2007. The previous owner at 2112 43rd Avenue NE agreed to the subdivision in 2002, and went through the application process. Five years later, the property owner at 2120 43rd Avenue applied for a building permit, and subsequently, the addition was completed without the minor subdivision having been recorded. Holmbeck explained that if you look at an aerial map of the boundaries for these properties on the Anoka County GIS mapping website, you can see that a portion of the existing garage and driveway are over the property line of 2120 43rd Avenue at this time. Once the minor subdivision is approved, and the two new legal descriptions are recorded with the county, the change will be reflected on the GIS map and effectively show that the garage is within their property line; whereas right now, a portion of it is not. Chairperson Szurek stated she does not see a problem in granting the minor subdivision, but questioned whether the property owner at 2120 43rd Avenue NE checked with Anoka County when they applied for the building permit and built the garage addition in 2007, or did they make the assumption it would be on their 67 property. Holmbeck stated she looked through permit history and stated the site plan submitted with the building permit application in 2007 and approved by the City Planner and Building Official at the time showed the garage how it is indicated on that survey. So it was approved as the survey indicated since it met all other setbacks and requirements based on the additional square footage. Szurek questioned why this was not caught in the plan review process. Holmbeck stated that the owner assumed he had that portion of the property, as indicated on the survey that he submitted with the building permit application. Holmbeck stated she was not aware if GIS mapping was available at that time to verify the property lines, and can only assume it was an oversight at the time. Public Hearing Opened. There was no one who asked to speak on this issue. Public Hearing Closed. Motion by Schill ,seconded by Novitsky, to waive the reading of Resolution No. 2017 -72, there being ample copies available to the public. Roll call: Ayes — Schill, Szurek and Novitsky. MOTION PASSED. Motion by Schill, seconded by Novitsky, that the Planning and Zoning Commission recommends the City Council approve the minor subdivision of the property located at 2112 43rd Avenue NE., subject to certain conditions of approval that have been found to be necessary to protect the public interest and ensure compliance with the provisions of the Zoning and Development Ordinance, including: 1. The applicant shall be responsible for filing the approved subdivision with the Anoka County Recorder's Office. The approved minor subdivision will become invalid if the subdivision is not filed with the Anoka County recorder's Office within one year of the date of City Council action. Roll Call: Ayes- Schill, Szurek and Novitsky. MOTION PASSED The Resolution will go to the City Council July 10, 2017 68 CITY OF COLUMBIA HEIGHTS MINOR SUBDIVISION (LOT SPLIT) APPLICATION To be filled out by City., CASE NO.: APPLICABLE ORDINANCE NO.: 9.104(J) PRESENT ZONING: PRESENT LAND USE PLAN DESIGNATION To be filled out by Applicant. DATE RECEIVED: DATE OF LETTER OF COMPLETION: APPROVAL DATE PER STATUTE: REVIEW PERIOD EXTENDED: PROJECT ADDRESS /LOCATION: 2112 43rd Ave NE, Columbia Heights, MN 55421 LEGAL DESCRIPTION OF PROPERTY INVOLVED (attach separate page if necessary): Description Attached PRESENT USE OF PROPERTY: Half of proposed split used for 2112 43rd Ave NE driveway and half of proposed split used for 2120 43rd Ave NF garage PROPOSED USE OF PROPERTY: Half of proposed split used for 2112 43rd Ave NE driveway and half of proposed split used for 2120 43rd Ave NEgarage. DOES THE PROPOSED LOT SPLIT CREATE A BUILDABLE LOT? YES NO REASON FOR REQUEST (please attach a written narrative that describes how the proposed subdivision will be comparable to those lots already existing in the immediate neighborhood. There are some platted residential lots within the City that are different than the current standards. In reviewing requests for approval of lot splits in such areas, the City is particularly interested in determining that the lots to be created will be consistent with the character of the surrounding area.) APPLICANT Meagan Thornburg (Zak) PHONE 763 - 381 -9095 FAX E -MAIL meaganleigh44 @gmail.com PAGER CELL # ADDRESS 2112 43rd Ave NE CITY Columbia Heights STATE Minnesota ZIP 55421 FEE OWNER OF PROPERTY ADDRESS 2112 43rd Ave NE Meagan Thornburg (Zak) PHONE 763 -381 -9095 FAX CITY Columbia Heights STATE Minnesota Page 1 of 2 ZIP 55421 .• CITY OF COLUMBIA HEIGHTS MINOR SUBDIVISION (LOT SPLIT) APPLICATION THIS APPLICATION IS SUBJECT TO ACCEPTANCE BY THE CITY PLANNER AND REVIEW OF APPLICATION AND NECESSARY MATERIALS BEING SUBMITTED. ENGINEERING APPROVAL MAY ALSO BE REQUIRED AND MUST MEET ENGINEERING REQUIREMENTS SET BY THE CITY ENGINEER OR CONTAINED IN THE CITY CODE. ITEMS TO BE GIVEN TO APPLICANT WITH APPLICATION A. Application Checklist B. Schedule of Planning and Zoning Commission Meetings ITEMS TO ACCOMPANY LOT SPLIT APPLICATION A. Application submitted as required in the attached application checklist, showing how the property is to be split, APPLICATION FEES: A. $275 Lot Split TOTAL AMOUNT RECEIVED CITY RECEIPT NUMBER 7 / DATE RECEIVED S Acknowledgement: The undersigned hereby represents upon all of the penalties of law, for the purpose of inducing the City of Columbia Heights to take the action herein requested, that all statements herein are true and that all work herein mentioned will be done in accordance with the Ordinances of the City of Columbia Heights and the State of Minnesota: APPLICANT SIGNATURE PROPERTY OWNER SIGNATURE (If different from Applicant) COMMUNITY DEVELOP Revised: 2005 NT STAFF MEMBER AND �-'/S-/! DATE DATE C-Q(slzo( -I DATE Approved by the Columbia Heights Planning Commission on Approved by the Columbia Heights City Council on Page 2 of 2 70 Meagan Thornburg (Zak) 2112 43" Ave NE Columbia Heights, MN 55421 June 5`�, 2017 Elizabeth Holmbeck & City Council Community Development Department 590 40th Avenue NE Columbia Heights, MN 55421 Dear Elizabeth Holmbeck & City Council, I am submitting an application to the Columbia Heights City Council to have a portion of lot 36- 30- 24 -14- 0003 (2112) split and add the split portion of the lot (1,080 square feet) to lot 36- 30 -24 -14 -0002 (2120). In 2002 David Linsk, owner of 2120 43rd Ave NE, submitted an application to the City of Columbia Heights to have the request made. Dave's original request was approved, however he never finalized recording the split with Anoka County and therefore the split is not currently documented. Once I purchased and moved into the 2112 43`d Ave NE property I discovered that the official recording of the split did not occur. I have been working with Mr. Linsk and officials at the City of Columbia Heights and Anoka County to have the recording finalized. Because more than one year has passed since Mr. Linsk had the application approved I was informed by the City of Columbia Heights that we had to re- submit the application. Attached you will find documents that Mr. Linsk had given me from his 2002 approved application that include the legal descriptions as well as the Certificate of Survey. Because no additional changes are being made to the location of the split I was informed by Joseph Hogeboom that I would be able to use and submit the same Certificate of Survey that Mr. Linsk submitted with his original application. I am also attaching an agreement that was drawn up, and signed, between myself and Mr. Linsk regarding the split to show that Mr. Linsk does have interest in moving forward with having the 1,080 square feet of land from the split added to his land. Once the application is approved by the City Council I will continue working with Molly at the Anoka County office in the Splits and Division Department to finalize the recording with Anoka County. This would include having a deed drawn up, signed by myself and Mr. Linsk, submitted to Anoka County. I currently will be closing on a new home on July 6th and am waiting to put 2112 43rd Ave NE on the market until the lot split is approved and recorded properly with Anoka County. I am hoping that this can be completed as soon as possible. It is my understanding that the City Council doesn't always hold an official meeting in July, but can potentially have a special meeting called to address applications on a time restraint. I am hoping that if the City Council is unable to meet in July that they would consider holding a special session to review this request. I greatly appreciate all of the time and help members from the City of Columbia Heights have given me to help resolve this ongoing matter. Sincerely, Meagan Thornburg (Zak) 71 Minor Subdivision Request 2 U 17 This document is meant to show that both parties affected by the minor subdivision application sent to the City of Columbia Heights is in agreement between Meagan L. Thornburg, of 2112 43rd Ave NE and Dave Linsk, of 2120 43rd Ave NE. Whereas: 1. The legal description for the 2017 application is the same legal description in Dave Linsk's approved application and survey from 2012. 2. Parcel 36- 30 -24 -14 -0003 will be split and 1,080 square feet will be added to parcel 36- 30 -24 -14 -0002. 3. The Dave Linsk, owner of parcel 36- 30 -24 -14 -0002, wishes to have the 1,080 square feet added to his parcel. Meagan L. Thornburg (Zak) 2112 43rd Ave NE Columbia Heights, MN 55421 Signature: Date: Dave Linsk 2120 43rd Ave NE Columbia Heights, MN 55421 Signature: Zlxz tea` -Gl� Date: 6-Z o "2 o/ 7 Yom. CCU Cryi l t , c [I 72 73 4 - }X FOR �A.�r �tI�SK CERTIFICATE OF SURVEY K(RTH PkfJ..QW t1FISL4'fIFVIS sow IN rar gh(T D5C(A1,15 b" d fps ?) 4w2 X,I*ER1'J+ST Hf CrE's (E:••,f, Tn+' r:,.s -wa, at14V a myr.'T CCLUM It_OIN5. Ait y,••• 'SS nrRAFED 8T vE Or JJp.G'In DIMC, SIRMilib+ 0 9T 7,I-En f.4t Y.:' X.'6' M: TWt 1 IY A 4AT Llc fo (NO 1'10 %W1 - n is of Tr 5h7• I�Y' r ='=—�� ovE .5• F-OZ I ALE 'a: FEET o ' t;Mynict'1 Ro dy 1. Kuifh, I. S. An :97,0 Austell „ %Ur lh, L •. f A:e 1511] 5 R.7'M >p% •.' "' +dam. ©- - -. � / <T 1 7,0 - (c 7. \a - . ,66J4M�• � /J 1 � W L, LN1a S2 + a -07 1 + C T7 11-0 4j. 9 � �3,• � YRo4bx:b N � c' Logo " - yc?,>='I'• -loo -• 'r o� I c, i 1 s 7 4' ti E3:IS71>;G LEGAI. DFSCR1F77DN .M211D 83RD A1',E!iVC 77nt Rut e( p( S, @ +. a u'e SuhdiTisxm o7 Walloa f Smy Artrt FourTh AmIC Cm:nn. 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SCA> e IM F =VT o- IRON MONUMENT '02 0 16113 koo, C> 4 , / t Z (L x � 1 zv Q� J4v r� 10V0t V�v, � t~ t' O cr' t� I (� f fk� [4 N <1 s6� I �37 Or r .wx �• i� i o 01W,0 6HALL BE AACHIYOCrObULY .- CW,PAT18LE WItH 7HE PRINCIPAL STRUCTURE INCORPORATING SIMILAR BUILDING MATERIALS AND COLORS it Zt 1 Z = 'Tts'V f�k L L. o k : Igo 1051 75 i Case: 2002 -0704 Page: 1 STAFF REPORT TO THE PLANNING AND ZONING COMMISSION FOR THE JULY 9, 2002 PUBLIC HEARING Case 4: 2002 -0704 GENERAL INFORMATION Owner: Dave Linsk Applicant: same Address: 2120 43`d Avenue NE- Columbia Heights, MN Phone: (763) 788 -9586 Parcel Address: 2120 43`d Avenue NF Zoning: R -1 Single-Family Residential Comprehensive Plan: LDR, Low Density Residential Surrounding Zoning and Land Bees: Zoning North: R -1 South: R -1 East: R -1 West: R -I BACKGROUND. Land Use North: Residential South: Residential East: Residential Rest: Residential ExPlanation - oZftuest: A request for a lot split of the property located at 2120 43`d Avenue NE. Cw•rently 2120 43'd Avenue NE is an abnormally shaped lot measuring 67 feet in the front, 25 feet in the back, and 191 feet in depth. The applicant is proposing to acquire a small portioli Of property pleasuring 1,080 square feet from the neighbor at 2112 43`1 Avenue, and add this portion to his property in order to accommodate a future detached garage addition (see survey). This split would keels both :ots in conformance with current City lot size requirements. Section 9.410(4) of the Columbia Heights Zoning Ordinance requires that an application for a lot split be reviewed by the Nat-Ining and Loving COMMissiou which shall provide a report to the City Council either recommending approval or denial of the proposed lot split. Case Histom There are no previous Planning and Zoning Commission cases on this site. 76 0 Case: 2002 -0704 Page: 2 ANALYSIS Surroundhig, Properti,. The surrounding property in al l four directions is coned R -1, Single- Family Residential, and is used residentially. Technical Review: Section 9.903 of the Columbia Heights Zoning Ordinance regulates lot area, setback, height and lot coverage requirements in the R -1 District, and Section 9.603 regulates accessory structures and lot coverages. Applicable requirements are as follows. Minimum lot size shall be 8,400 square feet for a single family home - the proposed split would provide 2120 43`d Ave with 9,920 square feet, and 2112 43rd Ave with 18,105 square feet, both of which exceed minimum lot size requirements. Minimum lot width shall be 70 feet — The current lot width for 2120 43rd Avenue is 67.18 feet, but with the additional square footage the new lot width will be 74.18 feet, thus meeting the City requirement. Detached accessory structures shall be at least 3 feet away from side and real, property lines - there is currently a detached garage on the property at 2120 43rd Avenue, and with a future proposed addition, the garage setback will be at 4 + feet, thus meeting requirements. Any lot over 6,500 square feet may have a lot coverage of up to 30% - the lot coverages on both 2120 and 2112 43'd Avenue will be well under 30 %, so the proposal meets these requirements. Compliance with City Comprehensive flan The City Comprehensive Plan designates this area for future low density residential developinent. summarv: The proposal is consistent with the City Comprehensive Plan and meets the minimum requirements of the Columbia Heights Zoning Ordinance. CONCLUSION Stuf Recornm mdation. Staff recommends approval of the lot split as it meets the technical standards of the Zoning Ordinance and is consistent with the City Comprehensive Plan. Reconnnended J1Lotion: More to recommend City Council approval of the lot split as it is consistent with City subdivision standards. Attachments: Completed applicaiioa form; t.erlificate oI'Survey; Area map; tZmlu ion: and Notice of Public Hcaring 77 AGENDA SF,CTION: Consent NO: ITEM: Resolution 2002 -44, Lot Split NO: Case 4 2002 -0704, 2120 43`d Ave NE CITY COUNCIL LEFI'ER ORIGINATING DEPT,: C.olnmullity Development BY: Thn Johnson DATE: July 12, 2002 of: July 22, 2002 CJTY MANAGER APPROVAL B Y: Issue Statement: A request for a lot split of the property located at 2120 43'd Avenue Ni. The aplicant is proposing to acquire a sinall portion ofpropell , Illessuring 1,080 square feet from the neighbor at 21 12 43' Avenue, and add this portion to his property in order to accommodate a future detached garage addition. Background: Section 9.410 (4) of the Columbia Heights Zoning Ordinance requires that all application for a lot split be reviewed by the Planning and Zoning Col}unission which shall provide a report to the City Council either recommending approval or denial of the ptuposed lot split, There are no previous Planning and Zoning Commission cases on this site, Analysis: Tile proposed lot split meets the tninilnum requirements of the Toning and Subdivision Ordinances. The proposed split would keep both lots in conformance with City lot size requirements, and will allow for both lots to meet the minimum lot widths required. This split will provide both lots the agility to construct future detached garages and still meet the minimum setback requirements. Recommendation: The Planning and Zoning Contlnission held a Publie Wearing for the request on Jtlty 9, 2002. They voted to recommend City Council approval of the lot split at it is consistent with City zoning and subdivision standards, Recommended Motions: Move to waive t17e reading of Resolution 2002 -44, there being ample copies available to the public. Move to adopt Resolution 2002 -44, a resolution approving a lot split of the property at 2120 43`d Avenue NE, COUNCIL, ACTION; 78 RESOLUTION N0, 2002 -44 SUBDIVISION REQUEST CITY OF COLUMBIA HEIGHTS 590 - 40TH AVENUE N.E. COLUMB A HEIGHTS, MN 55421 I, Dave Linsk, Hereby request a split of PIN 36 30 24 14 0003 Lepally described as: Lot 2, Block 1, Auditors Subdivision of WBIIOn's Sunny Acres Fourth, Anoka County, Minnesota. PIN 36 30 24 i4 0002 Lepally described as: Thal part o' Lot 1, Block 1, Auditor's Subdivision of Welton's Sunny Acres Fourth, Anoka County, Minnesota, which Ilan West of a line drawn irom a point on the North line thereof dlstant Slxtyaeven and Eighteen hundredths (67.18) feet East of the Northwest corner thereof to !hereof distant Twenty -five (25) feet East of the Southwest comer thereof. a point an the South line THE DESCRIPTIONS HENCEFORTH TO BE: That part of Lot 1, Block 1, Auditor's Subdivision of Waiton's Sunny Acres Fouth, Anoka County, Minnesota, which lies West of a I;ne drawn from a point on the North line thereof distant Sixty-seven and Eighteen hundredths (67.16) feet Feet of the Northwest corner thereof to a point on the South tine thereof distant Twenty-five (25) feat East of the Southwest comer thereof. TOGETHER WiTH; That part of Lot 2, Block 1, Auditor's Subdivision of Walton's Sunny Acres Fourth, Anoka County, Minnesota, described as follows:: Beginning at the Northeast corner Of said Lot 2, thence Southerly on the East litre a distance 01`04.00 feet; Ihonce Westerly and parallel with the North line a distance of 18.00 feet; thence Northeasterly to a point on the North line, distant 7.00 feet wasledy of the Northeast comer, thence Easterly to the point of beginning. Lot 2, Block 1, Auditor's Subdivislon of Walton's Sunny Ames Fourth, Anoka County, Minnesota, Except the following; That part of Lot 2, Block 1, Auditor's Subdivision of Walton's Sunny Acres Fourth, Anoka County, Minnesota, described as follows: Beginning at the Noriv east corner of said Lot 2, thence Southerly on the East line a distance of 94.00 feet; thence Westerly and parallel with the North line a distance of 16.00 feet; thence Northeasterly to a polnl on the North line, distant 7.00 feet westerly of the Northeast corner; thence Easterly to the point of beginning. Be It further resolved that spacial assessments of record In the office of the City of Columbia Heights as of this day, against the above described property, are paid. Any pending or future assessments will be levied according to the new split as approved this day. Any lot split given approval shell become Invalid it the resolution, motion or other Council action approving the said tot split Is not filed with the County Recorder within one (t) year of the date of the Council action. PLANNING 8 ZONING DEPARTMENT ACTION. This 9th dayof July ,2002 Offered by: Yeh 1 e Secondedby: Schmitt Roll Calk A l l ayes. bning Office CITY COUNCIL ACTION. This 22r,&Yct July Offered by. NaWrcckI Seconded by: wy c k e r f Roll Call: Na rock!, Secretary to the C ncd fX e� Signature ofr fA /ner, Notarized �� Owner's Address Telephone No, SUBSCRIBED AND SWORN 0 BEFORE ME thisp � dayyoof— 2002 Notary Public 2002. tmwrx- ?KG�' urr x t M•CW't>�MIifF Szurak, 1• I l llea:5, Py, f, r'et son--Ai? Ayes Gary aters n, ayor FEE $1 50.00 DATE PAID 6 -12 -02 RECEIPT No.: 43545 79 CH COLUMBIA HEIGHTS AGENDA SECTION PUBLIC HEARING ITEM NO. 8C MEETING DATE JULY 10, 2017 CITY OF COLUMBIA HEIGHTS - CITY COUNCIL ITEM: Economic Development Authority Tax Levy Increase DEPARTMENT: Community Development CITY MANAGER'S APPROVAL: BY /DATE: Keith M. Dahl, June 30, 2017 BY /DATE: BACKGROUND: On June 5, 2017, the Columbia Heights Economic Development Authority (the "EDA ") approved Resolution 2017 -14, an EDA resolution requesting a tax levy increase by the City of Columbia Heights (the "City ") for economic development purposes. Under State Statute Section 469.107, the City Council is authorized to levy a tax for the benefit of the EDA for economic development activities, in an amount no to exceed 0.01813 percent of the City's estimated market land value. On June 12, 2017, City Council approved Resolution 2017 -56, a resolution authorizing the increase of the EDA tax levy to $220,100 for taxes payable in 2018. This increase would amount to an EDA tax levy increase of $136,100 from the taxes received in 2017. Furthermore, Resolution 2017 -56 is subject to its publication along with a notice of public hearing for two successive weeks in the official newspaper of the City, and the holding of a public hearing for residents to present their views regarding this matter. Thus, Resolution 2017 -56 along with a notice of public hearing was published in the June 23, 2017 and June 30, 2017 edition of the Sun Focus, and a public hearing was scheduled for July 10, 2017. After the public hearing tonight, State Statute requires a 30 -day reverse referendum period. The reverse referendum period would conclude on August 9, 2017. If the City receives a valid petition during this period, Resolution 2017 -56 will not take effect and an election may be held to determine if the EDA tax levy will increase. A valid petition would need to be signed by voters equal to five percent (5 %) of the votes cast in the last general election of the City and accompanied with a notice of public hearing. RECOMMENDED MOTION(S): Motion: Move to open the public hearing regarding Resolution 2017 -56, a resolution authorizing a tax levy increase by the City of Columbia Heights for economic development purposes. Motion: Move to close the public hearing. ATTACHMENTS: 1. Resolution 2017 -56 (3 Pages) 2. EDA Resolution 2017 -14 ( 1 Page) CC Letter 80 CITY OF COLUMBIA HEIGHTS, MINNESOTA RESOLUTION NO. 2017-56 RESOLUTION AUTHORIZING A TAX LEVY INCREASE BY THE CITY FOR ECONOMIC DEVELOPMENT PURPOSES. BE IT RESOLVED, By the City Council ( "Council ") of the City of Columbia Heights (the "City ") as follows: WHEREAS, the City established the Columbia Heights Economic Development Authority (the "Authority ") by an enabling resolution adopted on January 8, 1996, pursuant to Minnesota Statutes 469.090 to 469.1081 (the "EDA Act "); and WHEREAS, the Council has given to the Authority the responsibility for all economic development and redevelopment projects and programs; and WHEREAS, under Section 469.107 of the EDA Act, the City is authorized to levy a tax for the benefit of the Authority, in an amount not to exceed 0.01813 percent of the City's estimated market value (the "EDA Levy "); and WHEREAS, the City currently levies an EDA Levy of 0.01813 percent of the City's estimated market value, or $84,000, as authorized by the EDA Act; and WHEREAS, the City is authorized to increase its EDA Levy beyond the statutory cap as provided in Section 469.107, subd. 2 of the EDA Act, upon the request of the Authority; and WHEREAS, the Authority has requested that the City increase its EDA Levy to $220,100 for taxes payable in 2018, in order to better serve the Authority's economic development activities within the City, representing an increase of $136,100. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Columbia Heights, as follows: 1. The request by the Authority for an increase in the City's EDA Levy in the amount of $136,100 for taxes payable in 2018, for a total EDA Levy of $220,100, is hereby approved, subject to publication of this Resolution along with a notice of public hearing on this Resolution in substantially the form attached as Exhibit A (the "Notice ") for two successive weeks in the official newspaper of the City, and the holding of a public hearing on the proposed increase between two and four weeks after first publication of this Resolution and the Notice. 2. This resolution will not take effect if a petition requesting a referendum on this Resolution, signed by voters equaling five percent of the votes cast in the City in the last general election, is filed with the City Clerk within 30 days of publication of this Resolution. 3. City staff is authorized and directed to publish this Resolution, along with the Notice, in the official newspaper of the City as soon as practicable. 501094v] MNI CL205 -3 81 Passed this 12th day of June, 2017. Offered by: Williams Seconded by: Novitsky Roll Call: 4 Ayes - 1 Nay, Motion Carried Ayes: Williams, Novitsky, Murzyn, Jr., Buesgens Nay: Schmitt Donna Schmitt, Mayor Attest: �6 Gatt btu"�� Katie Bruno, City Clerk /Council Secretary 501094vI MINI CL205 -3 82 EXHIBIT A NOTICE OF PUBLIC HEARING COLUMBIA HEIGHTS, MINNESOTA ANOKA COUNTY STATE OF MINNESOTA NOTICE IS HEREBY GIVEN that the City Council of the City of Columbia Heights, Minnesota (the "City "), will hold a public hearing on July 10, 2017, at or after 7:00 p.m. at the City Council Chambers in City Hall, 590 40"' Avenue NE, Columbia Heights, Minnesota, relating to a proposed increase in the City's tax levy for economic development purposes under Minnesota Statutes, Section 469.107, subdivision 2 (the "EDA Levy Increase "). The proposed amount of the EDA Levy Increase is $136,100 for taxes payable in 2018, for a total EDA Levy of $220,100. The purpose of the EDA Levy Increase is to provide funds for additional economic development activities of the City's Economic Development Authority. If a petition requesting a vote on the EDA Levy Increase, signed by voters equal to five percent (5 %) of the votes cast in the City in the last general election, is fled with the City Clerk within 30 days after the first publication of the resolution accompanying this Notice (i.e., by June _, 2017), the City may approve the EDA Levy Increase only after obtaining approval of a majority of voters voting on the question at an election. All interested persons may appear at the hearing and present their views orally or prior to the meeting in writing. BY ORDER OF THE CITY COUNCIL OF THE CITY OF COLUMBIA HEIGHTS, MINNESOTA Dated: _[date of publication] /s/ Walter Fehst City Manager 501094v MNI CL205 -3 83 RESOLUTION NO. 2017 -14 A RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY, REQUESTING A TAX LEVY INCREASE BY THE CITY OF COLUMBIA HEIGHTS FOR ECONOMIC DEVELOPMENT PURPOSES. BE IT RESOLVED, By the Columbia Heights Economic Development Authority (the "EDA ") as follows: WHEREAS, the City of Columbia Heights (the "City ") established the Columbia Heights Economic Development Authority by an enabling resolution adopted on January 8, 1996, pursuant to Minnesota Statutes 469.090 to 469.1081 (the "EDA Act "); and WHEREAS, the City Council of the City has given to the EDA the responsibility for all development and redevelopment projects and programs; and WHEREAS, under Section 469.107 of the EDA Act, the City is authorized to levy a tax for the benefit of the Authority, in an amount not to exceed 0.01813 percent of the City's estimated market value (the "EDA Levy "); and WHEREAS, the City currently levies an EDA Levy that is less of the 0.01813 percent of the City's estimated market value as authorized by the EDA Act; and WHEREAS, the City is authorized to increase its EDA Levy to the statutory cap as provided in Section 469.107, subd. 2 of the EDA Act, upon the request of the EDA; and WHEREAS, the EDA desires that the City increase its EDA Levy to $220,100 for taxes payable in 2018, in order to better serve the EDA's economic development activities within the City. NOW, THEREFORE BE IT RESOLVED, by the Board of Commissioners of the Columbia Heights Economic Development Authority, that the EDA request the City's approval of an increase of its EDA Levy to the amount of $220,100 for taxes payable in 2018, after a duly noticed public hearing as provided in the EDA Act; and BE IT FURTHER RESOLVED, that the Executive Director is instructed to transmit a copy of this resolution to the City Manager, Finance Director, anclCity Clerk of the City of Columbia Heights, Minnesota, ORDER OF ECONOMIC DEVELOPMENT AUTHORITY Passed this 5th day of June Offered by: Seconded by: Roll Call: Buesgens Williams All ayes Attest: Assistant Secretary 2017 Presid nt Resolution 2017 -14 84 CH COLUMBIA HEIGHTS AGENDA SECTION PUBLIC HEARING ITEM NO. 8D MEETING DATE JULY 10, 2017 CITY OF COLUMBIA HEIGHTS - CITY COUNCIL ITEM: Consideration of the 47th and Grand TIF District DEPARTMENT: Community Development CITY MANAGER'S APPROVAL:_1J BY /DATE: Keith M Dahl, July 3, 2017 BY /DATE: , 1-1) BACKGROUND: On May 22, 2017, the City of Columbia Heights (the "City ") City Council called for a public hearing in regards to the consideration of the modification to the Downtown Central Business District (the "CBD ") Revitalization Plan for the Downton CBD Redevelopment Project and the establishment of the 47th and Grand Tax Increment Financing District (collectively referred as the "TIF Plan "). In the City, the Columbia Heights Economic Development Authority (the "EDA ") is the authority authorized to exercise TIF powers; however, the EDA may not exercise said TIF powers without prior approval of the City Council. Thus, if the TIF Plan is approved, the City Council would effectively authorize the EDA to provide public financial assistance to Dominium for the development of the proposed affordable multi - family, workforce housing project (the "Proposed Development ") on the corner of 47th and Grand Avenue located at 1069 Grandview Court NE and 4729 Grand Avenue NE, Columbia Heights (the "Subject Property "). Please note: the TIF Plan is merely a planning document that reflects the full length of the proposed TIF district; it in no way constitutes the term length or dollar amount of the proposed TIF district. The term length and dollar amount would be part of a separate document, the Contract for Private Redevelopment (the "Agreement "). The Agreement would be between the developer and the authority authorized to exercise TIF powers, which in this case would be Dominium and the EDA. Dominium has requested TIF assistance to offset qualified costs related to the Proposed Development. The Proposed Development would consist of an estimated 173 units, all of which would be affordable to households with incomes at or below sixty percent (60 %) of the area median income (the "AMI "). The AMI is the midpoint of a region's income distribution; half of the households in a region earn more and half earn less. The US Department of Housing and Urban Development calculates these different levels of AMI for regions across the country by household size. In 2017, the Twin Cities 60% AMI has been defined as follows: Household Size Income Threshold 1 Person $ 37,980 2 People $ 43,440 4 People $ 54,240 The Subject Property is comprised of 4.93 acres of vacant, undeveloped land zoned as Transit Oriented Mixed - Use Development. The City has identified three mixed -use districts in an effort to differentiate the three types of development: Transit Oriented Development, Community Center Development, and Transitional Development. Transit Oriented Mixed -Use Development is defined as an area within the City that promotes interaction between medium to high density housing; transit facilities; and neighborhood services, such as restaurants, retail and office space. The main focus of this district is to accommodate affordable housing for the workforce of the community, but also to ensure a pedestrian friendly environment that increases non - motorized modes of transportation. City of Columbia Heights - CC Letter 85 City of Columbia Heights - Council Letter Page 2 On July 5, 2017, the Planning and Zoning Commission in and for the City (the P &Z) met and reviewed the proposed TIF Plan to determine if it conformed to the general plans for the development and redevelopment of the City. The P &Z unanimously determined that the proposed TIF Plan aligned with numerous goals and policies adopted by the City in the Comprehensive Plan, many of which conform to the development requirements of the Transit Oriented Mixed -Use Development District. Originally, Dominium requested TIF assistance in the amount of $2.977 million over the course of 20 years. Neither City staff nor Ehlers, the financial consultant of the City, determined that a 20 year TIF district period would be necessary for the Proposed Development to become financially feasible or in the best interest of the City. Based on the analyses conducted, City staff, Ehlers and Dominium are in consensus that TIF assistance in the amount of $1,817,707 over 12 years accounting for a 4% inflation rate would be substantially sufficient for the Proposed Development to proceed. TIF is a public financial assistance method used to offset qualified cost of development by using a portion of the future tax revenue generated from the development within the TIF district. When a TIF district is created, the current value of all the taxable property within the TIF district is frozen at the current base value. Over the life span of the TIF district, the County, City and School District still collect property taxes from the frozen base value, but as the development increases the taxable property value within the TIF district, the increased amount above the frozen base value is the tax increment. And, the tax increment is what reimburses the developer for the qualified costs of development; similar to a rebate program. In conjunction with TIF assistance, City staff directed Dominium to apply for the Livable Communities Demonstration Account (the "LCDA ") development grant program through the Metropolitan Council. The LCDA development grant program is a funding source intended to support development projects that incorporate affordable, workforce housing and demonstrate an efficient and cost - effective use of land and infrastructure. A grant application was submitted on June 29, 2017 requesting $750,000 from the LCDA development grant program for the Proposed Development. Since LCDA grant funding will not be awarded until December, a look back provision would be incorporated to the Agreement between Dominium and the EDA. If the Proposed Development is awarded LCDA development grant funding, the EDA will be able to reevaluate the amount of TIF assistance necessary for financial feasibility. STAFF RECOMMENDATION: Staff recommends adopting Resolution 2017 -77, a resolution adopting a modification to the Development Program for the Downtown Central Business Redevelopment Project, establishing the 47th and Grand Tax Increment Financing District therein and adopting of a Tax Increment Financing Plan therefor. RECOMMENDED MOTION(S): Motion: Move to waive the reading of Resolution 2017 -77, there being ample copies available to the public. Motion: Move to adopt Resolution 2017 -77, a resolution adopting a modification to the Development Program for the Downtown Central Business Redevelopment Project, establishing the 47th and Grand Tax Increment Financing District therein and adopting of a Tax Increment Financing Plan therefor. ATTACHMENTS: 1. Resolution 2017 -77 (4 Pages) 2. 47th and Grand TIF Plan (29 Pages) 86 CITY OF COLUMBIA HEIGHTS ANOKA COUNTY STATE OF MINNESOTA Council member introduced the following resolution and moved its adoption: RESOLUTION NO. 2017-77 RESOLUTION ADOPTING A MODIFICATION TO THE DEVELOPMENT PROGRAM FOR THE DOWNTOWN CENTRAL BUSINESS REDEVELOPMENT PROJECT, ESTABLISHING THE 47TH AND GRAND TAX INCREMENT FINANCING DISTRICT THEREIN AND ADOPTING A TAX INCREMENT FINANCING PLAN THEREFOR. 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 Board of Commissioners of the Columbia Heights Economic Development Authority (the "EDA ") has heretofore established the Downtown Central Business Redevelopment Project (the "Project ") and adopted a Development Program therefor. It has been proposed that the City adopt a Modification to the Development Program (the "Development Program Modification ") for the Project, establish the 47th and Grand Tax Increment Financing District (the "District ") therein and adopt a Tax Increment Financing Plan (the "TIF Plan ") therefor (the Development Program Modification and the TIF Plan are referred to collectively herein as the "Program and Plan "); all pursuant to and in conformity with applicable law, including Minnesota Statutes, Sections 469.090 to 469.1081 and Sections 469.174 to 469.1794, all inclusive, as amended, (the "Act ") all as reflected in the Program and Plan, and presented for the Council's consideration. 1.02. The EDA and City have investigated the facts relating to the Program and Plan and have caused the Program and Plan to be prepared. 1.03. The EDA and City have performed all actions required by law to be performed prior to the establishment of the District and the adoption and approval of the proposed Program and Plan, including, but not limited to, notification of Anoka County and Independent School District No. 13 having taxing jurisdiction over the property to be included in the District, a review of and written comment on the Program and Plan by the City Planning Commission, approval of the Program and Plan by the EDA on July 10, 2017, and the holding of a public hearing upon published notice as required by law. 1.04. Certain written reports (the "Reports ") relating to the Program and Plan and to the activities contemplated therein have heretofore been prepared by staff and consultants and submitted to the Council and /or made a part of the City files and proceedings on the Program and Plan. The Reports include data, information and /or substantiation constituting or relating to the basis for the other findings and detenninations made in this resolution. The Council hereby confinns, ratifies and adopts the Reports, which are hereby incorporated into and made as fully a part of this resolution to the same extent as if set forth in full herein. 87 1.05. The City is not modifying the boundaries of the Project, but is modifying the Development Program therefor. Section 2. Findings for the Adoption and Approval of the Development Prograin Modification 2.01. The Council approves the Development Program Modification, and specifically finds that: (a) the land within the Project would not be available for redevelopment without the financial aid to be sought under this Development Program Modification; (b) the Development Program Modification will afford maximum opportunity, consistent with the needs of the City as a whole, for the development of the Project by private enterprise; and (c) that the Development Program Modification conforms to the general plan for the development of the City as a whole. Section 3. Findings for the Establishment of the 47th and Grand Tax Increment Financing District 3.01. The Council hereby finds that the District is in the public interest and is a "housing district" under Section 469.174, Subd. 11 of the Act. 3.02. The Council further finds that the proposed development would not occur solely through private investment within the reasonably foreseeable future, that the Program and Plan conforin to the general plan for the development or redevelopment of the City as a whole, and that the Program and Plan will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development or redevelopment of the District by private enterprise. 3.03. The Council further finds, declares and determines that the City made the above findings stated in this Section and has set forth the reasons and supporting facts for each determination in writing, attached hereto as Exhibit A. Section 4. Public Puraose. 4.01. The adoption of the Program and Plan conforms in all respects to the requirements of the Act and will help fulfill a need to develop an area of the City which is already built up, to provide housing opportunities, to improve the tax base and to improve the general economy of the State and thereby serves a public purpose. For the reasons described in Exhibit A, the City believes these benefits directly derive from the tax increment assistance provided under the TIF Plan. A private developer will receive only the assistance needed to make this development financially feasible. As such, any private benefits received by a developer are incidental and do not outweigh the primary public benefits. Section 5. Approval and Adoption of the Program and Plan. 5.01. The Program and Plan, as presented to the Council on this date, including without limitation the findings and statements of objectives contained therein, are hereby approved, ratified, established, and adopted and shall be placed on file in the office of the Columbia Heights Community Development Director. 5.02. The staff of the City, the City's advisors and legal counsel are authorized and directed to proceed with the implementation of the Program and Plan and to negotiate, draft, prepare and present to this Council for its consideration all further plans, resolutions, documents and contracts necessary for this purpose. 5.03 The Auditor of Anoka County (the "County Auditor ") is requested to certify the original net tax capacity of the District, as described in the Program and Plan, and to certify in each year thereafter 88 the amount by which the original net tax capacity has increased or decreased; and the EDA is authorized and directed to forthwith transmit this request to the County Auditor in such form and content as the County Auditor may specify, together with a list of all properties within the District, for which building permits have been issued during the 18 months immediately preceding the adoption of this resolution. 5.04. The Columbia Heights Community Development Director is further authorized and directed to file a copy of the Program and Plan with the Commissioner of the Minnesota Department of Revenue and the Office of the State Auditor pursuant to Section 469.175, Subd. 4a of the TIF Act. The motion for the adoption of the foregoing resolution was duly seconded by Council member , and upon a vote being taken thereon, the following voted in favor thereof: and the following voted against the same: Dated: July 10, 2017 Mayor (Seal) ATTEST: City Clerk 89 EXHIBIT A RESOLUTION NO. 2017 -PZ05 The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan (the "TIF Plan ") for the 47th and Grand Tax Increment Financing District (the TIF District "), as required pursuant to Minnesota Statutes, Section 469.175, Subdivision 3, are as follows: Finding that the TIFDistrict is a housing district as defined in M.S., Section 469.174, Subd. 11. The TIF District consists of three parcels. The development will consist of 173 units of affordable rental housing, all or a portion of which will receive tax increment assistance and will meet income restrictions described in M.S., Section 469.1761. 100 percent of the units/homes receiving assistance will have incomes at or below 60 percent of statewide median income. Appendix E of the TIF Plan contains background for the above finding. 2. Finding that the proposed development, in the opinion of the City Council, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future. The proposed development, in the opinion of the City, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future: This finding is supported by the fact that the development proposed in this plan is a housing district that meets the City's objectives for development and redevelopment, but that due to the high cost of building new affordable housing in the City, the cost of financing the proposed public improvements, and the insufficiency of rents in an affordable housing development to provide a sufficient financial return, the project is feasible only through assistance, in part, from tax increment financing. The developer was asked for and provided a letter and a proforma as justification that the developer would not have gone forward without tax increment assistance. 3. Finding that the TIFPIan for the TIFDistrict conforms to the general plan for the development or redevelopment of the municipality as a whole. The Planning Commission reviewed the TIF Plan and found that the TIF Plan conforms to the general development plan of the City. 4. Finding that the TIFPIan for the TIFDistrict will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development or redevelopment of the Downtown Central Business Redevelopment Project by private enterprise. Through the implementation of the TIF Plan, the EDA or City will provide an impetus for affordable residential development, which is desirable or necessary for increased population and an increased need for life -cycle rental housing within the City. 90 As of July 3, 2017 Draft for Public Hearing Modification to the Redevelopment Plan for the Downtown Central Business Redevelopment Project and the Tax Increment Financing Plan for the establishment of the 47th and Grand Tax Increment Financing District (a housing district) within the Downtown Central Business Redevelopment Project City of Columbia Heights Columbia Heights Economic Development Authority Anoka County State of Minnesota Public Hearing: July 10, 2017 Adopted: QJ FREERS Prepared by: EHLERS & ASSOCIATES, INC. 3060 Centre Pointe Drive, Roseville, Minnesota 55113 -1105 651 - 697 -8500 fax: 651 - 697 -8555 www.ehlers- inc.com 91 Table of Contents (for reference purposes only) Section 1 - Modification to the Redevelopment Plan for the Downtown Central Business Redevelopment Project ...................... 1 -1 Foreword 1 -1 Section 2 - Tax Increment Financing Plan for the 47th and Grand Tax Increment Financing District ......................... 2 -1 Subsection 2 -1. Foreword ................ ............................... 2 -1 Subsection 2 -2. Statutory Authority ......... ............................... 2 -1 Subsection 2 -3. Statement of Objectives .... ............................... 2 -1 Subsection 2 -4. Development Program Overview ............................ 2 -1 Subsection 2 -5. Description of Property in the District and Property To Be Acquired . 2 -2 Subsection 2 -6. Classification of the District .. ............................... 2 -2 Subsection 2 -7. Duration and First Year of Tax Increment of the District ........... 2 -3 Subsection 2 -8. Original Tax Capacity, Tax Rate and Estimated Captured Net Tax Capacity Value /Increment and Notification of Prior Planned Improvements ................ 2 -4 Subsection 2 -9. Sources of Revenue /Bonds to be Issued ...................... 2 -5 Subsection 2 -10. Uses of Funds ............ ............................... 2 -5 Subsection 2 -11. Fiscal Disparities Election ... ............................... 2 -6 Subsection 2 -12. Business Subsidies ........ ............................... 2 -7 Subsection 2 -13. County Road Costs ........ ............................... 2 -8 Subsection 2 -14. Estimated Impact on Other Taxing Jurisdictions ................. 2 -8 Subsection 2 -15. Supporting Documentation . ............................... 2 -10 Subsection 2 -16. Definition of Tax Increment Revenues ....................... 2 -10 Subsection 2 -17. Modifications to the District . ............................... 2 -10 Subsection 2 -18. Administrative Expenses ... ............................... 2 -11 Subsection 2 -19. Requirement of Qualified Activity ........................... 2 -12 Subsection 2 -20. Use of Tax Increment ..... ............................... 2 -12 Subsection 2 -21. Excess Increments ....... ............................... 2 -13 Subsection 2 -22. Requirements for Agreements with the Developer .............. 2 -14 Subsection 2 -23. Assessment Agreements .. ............................... 2 -14 Subsection 2 -24. Administration of the District ............................... 2 -14 Subsection 2 -25. Annual Disclosure Requirements ........................... 2 -14 Subsection 2 -26. Reasonable Expectations .. ............................... 2 -14 Subsection 2 -27. Limitations on the Use of Tax Increment ...................... 2 -15 Subsection 2 -28. Summary ............... ............................... 2 -15 Appendix A Project Description ....................... ............................... A -1 Appendix B Map of the Downtown Central Business Redevelopment Project and the District ...... B -1 Appendix C Description of Property to be Included in the District ............................ C -1 Appendix D Estimated Cash Flow for the District ......... ............................... D -1 92 Appendix E Housing Qualifications for the District ......... ............................... E -1 Appendix F Findings for the District .................... ............................... F -1 93 Section 1 - Modification to the Redevelopment Plan for the Downtown Central Business Redevelopment Project Foreword The following text represents a Modification to the Redevelopment Plan for the Downtown Central Business Redevelopment Project. This modification represents a continuation of the goals and objectives set forth in the Redevelopment Plan for the Downtown Central Business Redevelopment Project. Generally, the substantive changes include the establishment of the 47th and Grand Tax Increment Financing District. For further information, a review of the Redevelopment Plan for the Downtown Central Business Redevelopment Project is recommended. It is available from the Community Development Director at the Columbia Heights Economic Development Authority. Other relevant information is contained in the Tax Increment Financing Plans for the Tax Increment Financing Districts located within the Downtown Central Business Redevelopment Project. Columbia Heights Modification to the Redevelopment Plan for the Downtown Central Business Redevelopment Project 1 -1 94 Section 2 - Tax Increment Financing Plan for the 47th and Grand Tax Increment Financing District Subsection 2 -1. Foreword The Columbia Heights Economic Development Authority (the "EDA "), the City of Columbia Heights (the "City "), staff and consultants have prepared the following information to expedite the establishment of the 47th and Grand Tax Increment Financing District (the "District "), a housing tax increment financing district, located in the Downtown Central Business Redevelopment Project. Subsection 2 -2. Statutory Authority Within the City, there exist areas where public involvement is necessary to cause development or redevelopment to occur. To this end, the EDA and City have certain statutory powers pursuant to Minnesota Statutes ( "M.S.'), Sections 469.090 to 469.1082, inclusive, as amended, and M.S., Sections 469.174 to 469.1794, inclusive, as amended (the "Tax Increment Financing Act" or "TIF Act "), to assist in financing public costs related to this project. This section contains the Tax Increment Financing Plan (the "TIF Plan") for the District. Other relevant information is contained in the Modification to the Development Program for the Downtown Central Business Redevelopment Project (the "Modification "). Subsection 2 -3. Statement of Objectives The District currently consists of three parcels of land and adjacent and internal rights -of -way. The District is being created to facilitate the construction of approximately 173 affordable apartment units in the City. Please see Appendix A for further District information. Neither the EDA nor the City have entered into an agreement but anticipate entering into an agreement with Columbia Heights Leased Housing Associates III, LLLP. Development is anticipated to begin in mid -2018 and be completed by the end of 2019. This TIF Plan is expected to achieve many of the objectives outlined in the Development Program for the Downtown Central Business Redevelopment Project. The activities contemplated in the Modification and the TIF Plan do not preclude the undertaking of other qualified development or redevelopment activities. These activities are anticipated to occur over the life of the Downtown Central Business Redevelopment Project and the District. Subsection 2-4. Development Program Overview 1. Property to be Acquired - Selected property located within the District may be acquired by the EDA or City and is further described in this TIF Plan. 2. Relocation - Relocation services, to the extent required by law, are available pursuant to M.S., Chapter 117 and other relevant state and federal laws. 3. Upon approval of a developer's plan relating to the project and completion of the necessary legal requirements, the EDA or City may sell to a developer selected properties that it may acquire within the District or may lease land or facilities to a developer. 4. The EDA or City may perform or provide for some or all necessary acquisition, construction, relocation, demolition, and required utilities and public street work within the District. Columbia Heights Economic Development Authority Tax Increment Financing Plan for the 47th and Grand Tax Increment Financing District 2 -1 95 Subsection 2 -6. Description of Property in the District and Property To Be Acquired The District encompasses all property and adjacent rights -of -way and abutting roadways identified in Appendix C of this TIF Plan. Please also see the map in Appendix B for further information on the location of the District. The EDA or City may acquire any parcel within the District including interior and adjacent street rights of way. Any properties identified for acquisition will be acquired by the EDA or City only in order to accomplish one or more of the following: storm sewer improvements; provide land for needed public streets, utilities and facilities; carry out land acquisition, site improvements, clearance and /or development to accomplish the uses and objectives set forth in this plan. The EDA or City may acquire property by gift, dedication, condemnation or direct purchase from willing sellers in order to achieve the objectives of this TIF Plan. Such acquisitions will be undertaken only when there is assurance of funding to finance the acquisition and related costs. Subsection 2 -6. Classification of the District The EDA and City, in determining the need to create a tax increment financing district in accordance with Sections 469.174 to 469.1794, of the TIF Act as amended, inclusive, find that the District, to be established, is a housing district pursuant to Section 469.174, Subd. I1 and M.S., Section 469.1761 of the TIF Act as defined below: M. S., Section 469.174, Subd. 11: "Housing district" means a type of tax increment financing district which consists of a project, or a portion of a project, intended for occupancy, in part, by persons or families of low and moderate income, as defined in chapter 462A, Title II of the National Housing Act of 1934, the National Housing Act of 1959, the United States Housing Act of 1937, as amended, Title V of the Housing Act of 1949, as amended, any other similar present or future federal, state, or municipal legislation, or the regulations promulgated under any of those acts, and that satisfies the requirements of MS., Section 469.1761. Housing project means a project, or portion of a project, that meets all the qualifications of a housing district under this subdivision, whether or not actually established as a housing district. M.S., Section 469.1761: Subd. 1. Requirement imposed. (a) In order for a tax increment financing district to qualify as a housing district: (1) the income limitations provided in this section must be satisfied; and (2) no more than 20 percent of the square, footage of buildings that receive assistance fr om tax increments may consist of commercial, retail, or other nonresidential uses. (b) The requirements imposed by this section apply to property receiving assistance financed with tax increments, including interest reduction, land transfers at less than the authority's cost of acquisition, utility service or connections, roads, parking facilities, or other subsidies. The provisions of this section do not apply to districts located within a targeted area as defined in Section 462C.02 Subd 9, clause (e). Columbia Heights Economic Development Authority Tax Increment Financing Plan for the 47th and Grand Tax Increment Financing District 2 -2 96 (c) For purposes of the requirements ofparagraph (a), the authority may elect to treat an addition to an existing structure as a separate building if.• (1) construction of the addition begins more than three years after construction of the existing structure was completed; and (2) for an addition that does not meet the requirements ofparagraph (a), clause (2), if it is treated as a separate building, the addition was not contemplated by the tax increment financing plan which includes the existing structure. Subd. 2. Owner occupied housing. For owner occupied residential property, 95 percent of the housing units must be initially purchased and occupied by individuals whose family income is less than or equal to the income requirements for qualified mortgage bond projects under section 1430 of the Internal Revenue Code. Subd. 3. Rental property. For residential rental property, the property must satisfy the income requirements for a qualified residential rental project as defined in section 142(d) of the Internal Revenue Code. The requirements of this subdivision apply for the duration of the tax increment financing district. Subd. 4. Noncompliance; enforcement. Failure to comply with the requirements of this section is subject to M.S., Section 469.1771. In meeting the statutory criteria the EDA and City rely on the following facts and findings: • The District consists of three parcels. • The development will consist of 173 units of affordable rental housing • 100% of the units will be occupied by person with incomes less than 60% of median income Pursuant to Section 469.176, Subd. 7 of the TIF Act, the District does not contain any parcel or part of a parcel that qualified under the provisions of M.S., Sections 273.111, 273.112, or 273.114 or Chapter 473H for taxes payable in any of the five calendar years before the filing of the request for certification of the District. Subsection 2 -7. Duration and First Year of Tax Increment of the District Pursuant to Section 469.175, Subd. 1, and Section 469.176, Subd. 1 of the TIF Act, the duration and first year of tax increment of the District must be indicated within the TIF Plan. Pursuant to Section 469.176, Subd. lb of the TIF Act, the duration of the District will be 25 years after receipt of the first increment by the EDA or City (a total of 26 years of tax increment). The EDA or City elects to receive the first tax increment in 2020, which is no later than four years following the year of approval of the District. Thus, it is estimated that the District, including any modifications of the TIF Plan for subsequent phases or other changes, would terminate after 2045, or when the TIF Plan is satisfied. The EDA or City reserves the right to decertify the District prior to the legally required date, including without limitation pursuant to Section 469.176, Subd. 1(b) of the TIF Act. Columbia Heights Economic Development Authority Tax Increment Financing Plan for the 47th and Grand Tax Increment Financing District 2 -3 97 Subsection 2 -8. Original Tax Capacity, Tax Rate and Estimated Captured Net Tax Capacity Value /Increment and Notification of Prior Planned Improvements Pursuant to Section 469.174, Subd. 7 and Section 469.177, Subd. 1 of the TIF Act, the Original Net Tax Capacity (ONTC) as certified for the District will be based on the market values placed on the property by the assessor in 2017 for taxes payable 2018. Pursuant to Section 469.177, Subds. 1 and 2 of the TIF Act, the County Auditor shall certify in each year (beginning in the payment year 2020) the amount by which the original value has increased or decreased as a result of: 1. Change in tax exempt status of property; 2. Reduction or enlargement of the geographic boundaries of the district; 3. Change due to adjustments, negotiated or court- ordered abatements; 4. Change in the use of the property and classification; 5. Change in state law governing class rates; or 6. Change in previously issued building permits. In any year in which the current Net Tax Capacity (NTC) value of the District declines below the ONTC, no value will be captured and no tax increment will be payable to the EDA or City. The original local tax rate for the District will be the local tax rate for taxes payable 2018, assuming the request for certification is made before June 30, 2018. The ONTC and the Original Local Tax Rate for the District appear in the table below. Pursuant to Section 469.174 Subd. 4 and Section 469.177, Subd. 1, 2, and 4 of the TIF Act, the estimated Captured Net Tax Capacity (CTC) of the District, within the Downtown Central Business Redevelopment Project, upon completion ofthe projects within the District, will annually approximate tax increment revenues as shown in the table below. The EDA and City request 100 percent of the available increase in tax capacity for repayment of its obligations and current expenditures, beginning in the tax year payable 2020. The Project Tax Capacity (PTC) listed is an estimate of values when the projects within the District are completed. Project Estimated Tax Capacity upon Completion (PTC) $307,714 Original Estimated Net Tax Capacity (ONTC) $7,135 Estimated Captured Tax Capacity (CTC) $300,579 Original Local Tax Rate 1.39289 Pay 2017 Estimated Annual Tax Increment (CTC x Local Tax Rate) $418,673 Percent Retained by the EDA 100% Tax capacity includes a 3% inflation factor for the duration of the District. The tax cappacity included in this chart is the estimated tax capacity of the District in year 25. The tax capacity of the District in year one is estimated to be $75,688. Pursuant to Section 469.177, Subd. 4 of the TIF Act, the EDA shall, after a due and diligent search, accompany its request for certification to the County Auditor or its notice of the District enlargement pursuant to Section 469.175, Subd. 4 of the TIF Act, with a listing of all properties within the District or area of Columbia Heights Economic Development Authority Tax Increment Financing Plan for the 47th and Grand Tax Increment Financing District 2 -4 98 enlargement for which building permits have been issued during the eighteen (18) months immediately preceding approval of the TIF Plan by the municipality pursuant to Section 469.175, Subd. 3 of the TIF Act. The County Auditor shall increase the original net tax capacity of the District by the net tax capacity of improvements for which a building permit was issued. The City is reviewing the area to be included in the District to determine if any building permits have been issued during the 18 months immediately preceding approval of the TIF Plan by the City. Subsection 2 -9. Sources of Revenue /Bonds to be Issued The costs outlined in the Uses of Funds will be financed primarily through the annual collection of tax increments. The EDA or City reserves the right to incur bonds or other indebtedness as a result of the TIF Plan. As presently proposed, the projects within the District will be financed by a pay -as- you -go note and interfund loan. Any refunding amounts will be deemed a budgeted cost without a formal TIF Plan Modification. This provision does not obligate the EDA or City to incur debt. The EDA or City will issue bonds or incur other debt only upon the determination that such action is in the best interest of the City. The total estimated tax increment revenues for the District are shown in the table below: SOURCES OF FUNDS TOTAL Tax Increment $7,507,304 Interest $750,730 TOTAL $8,258,034 The EDA or City may issue bonds (as defined in the TIF Act) secured in whole or in part with tax increments from the District in a maximum principal amount of $5,294,179. Such bonds may be in the form of pay -as- you-go notes, revenue bonds or notes, general obligation bonds, or interfund loans. This estimate of total bonded indebtedness is a cumulative statement of authority under this TIF Plan as of the date of approval. Subsection 2 -10. Uses of Funds Currently under consideration for the District is a proposal to facilitate the construction of approximately 173 affordable apartment units in the City. The EDA and City have determined that it will be necessary to provide assistance to the project for certain District costs, as described. The EDA has studied the feasibility of the development or redevelopment of property in and around the District. To facilitate the establishment and development or redevelopment of the District, this TIF Plan authorizes the use of tax increment financing to pay for the cost of certain eligible expenses. The estimate of public costs and uses of funds associated with the District is outlined in the table on the following page. Columbia Heights Economic Development Authority Tax Increment Financing Plan for the 47th and Grand Tax Increment Financing District 2 -5 99 USES OF TAX INCREMENT FUNDS TOTAL Land /Building Acquisition $1,200,000 Site Improvements/Preparation $500,000 Utilities $300,000 Affordable Housing $2,250,000 Other Qualifying Improvements $293,449 Administrative Costs (up to 10% $750,730 PROJECT COST TOTAL $5,294,179 Interest $2,963,855 PROJECT AND INTEREST COSTS TOTAL $8,258,034 The total project cost, including financing costs (interest) listed in the table above does not exceed the total projected tax increments for the District as shown in Subsection 2 -9. Estimated costs associated with the District are subject to change among categories without a modification to this TIF Plan. The cost of all activities to be considered for tax increment financing will not exceed, without formal modification, the budget above pursuant to the applicable statutory requirements. The EDA may expend funds for qualified housing activities outside of the District boundaries. Subsection 2 -11. Fiscal Disparities Election Pursuant to Section 469.177, Subd. 3 of the TIF Act, the City may elect one of two methods to calculate fiscal disparities. If the calculations pursuant to Section 469.177, Subd. 3, clause b of the TIF Act, (inside the District) are followed, the following method of computation shall apply: (1) The original net tax capacity shall be determined before the application of the fiscal disparity provisions of Chapter 276A or 473F. The current net tax capacity shall exclude any fiscal disparity commercial- industrial net tax capacity increase between the original year and the current year multiplied by the fiscal disparity ratio determined pursuant to M.S., Section 276A.06, subdivision 7 or M.S., Section 473F.08, subdivision 6 Where the original net tax capacity is equal to or greater than the current net tax capacity, there is no captured tax capacity and no tax increment determination. Where the original tax capacity is less than the current tax capacity, the difference between the original net tax capacity and the current net tax capacity is the captured net tax capacity. This amount less any portion thereof which the authority has designated, in its tax increment financing plan, to share with the local taxing districts is the retained captured net tax capacity of the authority. (2) The county auditor shall exclude the retained captured net tax capacity ofthe authority.from the net tax capacity of the local taxing districts in determining local taxing district tax rates. The local tax rates so determined are to be extended against the retained captured net tax capacity of the authority as well as the net tax capacity of the local taxing districts. The tax generated by the extension of the less of (A) the local taxing district tax rates or (B) the original local tax rate to the retained captured net tax capacity of the authority is the tax increment of the authority. Columbia Heights Economic Development Authority Tax Increment Financing Plan for the 47th and Grand Tax Increment Financing District 2 -6 100 The City will choose to calculate fiscal disparities by clause b. It is not anticipated that the District will contain commercial/industrial property. As a result, there should be no impact due to the fiscal disparities provision on the District. According to Section 469.177, Subd. 3 of the TIF Act: (c) The method of computation of tax increment applied to a district pursuant to paragraph (a) or (b) shall remain the same for the duration of the district, except that the governing body may elect to change its election from the method of computation in paragraph (a) to the method in paragraph (b). Subsection 2 -12. Business Subsidies The EDA and City will comply with Sections 116J.993 to 116J.995, as amended (the "Business Subsidy Act ") to the extent required. Pursuant to Section 116J.993, Subd. 3 ofthe Business Subsidy Act, the following forms of financial assistance are not considered a business subsidy: (1) A business subsidy of less than $150,000; (2) Assistance that is generally available to all businesses or to a general class of similar businesses, such as a line of business, size, location, or similar general criteria; (3) Public improvements to buildings or lands owned by the state or local government that serve a public purpose and do not principally benefit a single business or defined group of businesses at the time the improvements are made; (4) Redevelopment property polluted by contaminants as defined in M.S., Section 116J.552, Subd. 3; (5) Assistance provided for the sole purpose of renovating old or decaying building stock or bringing it up to code and assistance provided for designated historic preservation districts, provided that the assistance is equal to or less than 50% of the total cost; (6) Assistance to provide job readiness and training services if the sole purpose of the assistance is to provide those services; (7) Assistance for housing; (8) Assistance for pollution control or abatement, including assistance for a tax increment financing hazardous substance subdistrict as defined under M.S., Section 469.174, Subd. 23; (9) Assistance for energy conservation; (10) Tax reductions resulting from conformity with federal tax law; (11) Workers' compensation and unemployment compensation; (12) Benefits derived from regulation; (13) Indirect benefits derived from assistance to educational institutions; (14) Funds from bonds allocated under chapter 474A, bonds issued to refund outstanding bonds, and bonds issued for the benefit of an organization described in section 501 © (3) of the Internal Revenue Code of 1986, as amended through December 31, 1999; (15) Assistance for a collaboration between a Minnesota higher education institution and a business; (16) Assistance for a tax increment financing soils condition district as defined under M.S., Section 469.174, Subd. 19; (17) Redevelopment when the recipient's investment in the purchase of the site and in site preparation is 70 percent or more of the assessor's current year's estimated market value; (18) General changes in tax increment financing law and other general tax law changes of a principally technical nature; (19) Federal assistance until the assistance has been repaid to, and reinvested by, the state or local government agency; Columbia Heights Economic Development Authority Tax Increment Financing Plan for the 47th and Grand Tax Increment Financing District 2 -7 101 (20) Funds from dock and wharf bonds issued by a seaway port authority; (21) Business loans and loan guarantees of $150,000 or less; (22) Federal loan funds provided through the United States Department of Commerce, Economic Development Administration; and (23) Property tax abatements granted under M.S., Section 469.1813 to property that is subject to valuation under Minnesota Rules, chapter 8100. The EDA expects that this development will qualify for an exemption under Section 116J.993, Subd. 3(7) of the Business Subsidy Act. Subsection 2 -13. County Road Costs Pursuant to Section 469.175, Subd. ]a of the TIF Act, the county board may require the EDA or City to pay for all or part of the cost of county road improvements if the proposed development to be assisted by tax increment will, in the judgment of the county, substantially increase the use of county roads requiring construction of road improvements or other road costs and ifthe road improvements are not scheduled within the next five years under a capital improvement plan or within five years under another county plan. If the county elects to use increments to improve county roads, it must notify the EDA or City within forty- five days of receipt of this TIF Plan. In the opinion of the EDA and City and consultants, the proposed development outlined in this TIF Plan will have little or no impact upon county roads, therefore the TIF Plan was not forwarded to the county 45 days prior to the public hearing. The EDA and City are aware that the county could claim that tax increment should be used for county roads, even after the public hearing. Subsection 2 -14. Estimated Impact on Other Taxing Jurisdictions The estimated impact on other taxing jurisdictions assumes that the redevelopment contemplated by the TIF Plan would occur without the creation of the District. However, the EDA or City has determined that such development or redevelopment would not occur "but for" tax increment financing and that, therefore, the fiscal impact on other taxing jurisdictions is $0. The estimated fiscal impact of the District would be as follows if the "but for" test was not met: IMPACT ON TAX BASE 2016/Pay 2017 Estimated Captured Total Net Tax Capacity (CTC) Percent of CTC Tax Capacity Upon Completion to Enti1y Total Anoka County 284,122,842 300,579 0.1058% City of Columbia Heights 10,870,671 300,579 2.7650% Columbia Heights ISD No. 13 15,692,007 300,579 1.9155% Columbia Heights Economic Development Authority Tax Increment Financing Plan for the 47th and Grand Tax Increment Financing District 2 -8 102 IMPACT ON TAX RATES The estimates listed above display the captured tax capacity when all construction is completed. The tax rate used for calculations is the actual Pay 2017 rate. The total net capacity for the entities listed above are based on actual Pay 2017 figures. The District will be certified under the actual Pay 2018 rates, which were unavailable at the time this TIF Plan was prepared. Pursuant to Section 469.175 Subd. 2(b) of the TIF Act: (1) Estimate of total tax increment. It is estimated that the total amount of tax increment that will be generated over the life of the District is $7,507,304; (2) Probable impact of the District on city provided services and ability to issue debt. A minor impact of the District on police protection is expected. The City Police Department does track all calls for service including property-type calls and crimes. With any addition of new residents or businesses, police calls for service will be increased. The new development will add to a small increase in traffic and minor additional demands to the call load. The City does not expect that the proposed development, in and of itself, will necessitate new capital investment. The probable impact ofthe District on fire protection is not expected to be significant. Typically new buildings generate few calls, if any, and are of superior construction. The impact of the District on public infrastructure is expected to be minimal. The development is not expected to significantly impact any traffic movements in the area. The current infrastructure for sanitary sewer, storm sewer and water will be able to handle the additional volume generated from the proposed development. Based on the development plans, there are no additional costs associated with street maintenance, sweeping, plowing, lighting and sidewalks. The development in the District is expected to contribute an estimated $200 per connection in sanitary sewer (SAC) and $400 per connection in water (WAC) connection fees. The probable impact of any District general obligation tax increment bonds on the ability to issue debt for general fund purposes is expected to be minimal. It is not anticipated that there will be any general obligation debt issued in relation to this project, therefore there will be no impact on the City's ability to issue future debt or on the City's debt limit. (3) Estimated amount of tax increment attributable to school district levies. It is estimated that the amount of tax increments over the life of the District that would be attributable to school district levies, assuming the school district's share of the total local tax rate for all taxing jurisdictions remained the same, is $1,489,449; Columbia Heights Economic Development Authority Tax Increment Financing Plan for the 47th and Grand Tax Increment Financing District 2 -9 103 Pay 2017 Percent Potential Extension Rates of Total CTC Taxes Anoka County 0.346330 24.86% 300,579 104,100 City of Columbia Heights 0.685460 49.21% 300,579 206,035 Columbia Heights ISD No. 13 0.276330 19.84% 300,579 83,059 Other 0.084770 6.09% 300,579 25,480 Total 1.392890 100.00% 418,673 The estimates listed above display the captured tax capacity when all construction is completed. The tax rate used for calculations is the actual Pay 2017 rate. The total net capacity for the entities listed above are based on actual Pay 2017 figures. The District will be certified under the actual Pay 2018 rates, which were unavailable at the time this TIF Plan was prepared. Pursuant to Section 469.175 Subd. 2(b) of the TIF Act: (1) Estimate of total tax increment. It is estimated that the total amount of tax increment that will be generated over the life of the District is $7,507,304; (2) Probable impact of the District on city provided services and ability to issue debt. A minor impact of the District on police protection is expected. The City Police Department does track all calls for service including property-type calls and crimes. With any addition of new residents or businesses, police calls for service will be increased. The new development will add to a small increase in traffic and minor additional demands to the call load. The City does not expect that the proposed development, in and of itself, will necessitate new capital investment. The probable impact ofthe District on fire protection is not expected to be significant. Typically new buildings generate few calls, if any, and are of superior construction. The impact of the District on public infrastructure is expected to be minimal. The development is not expected to significantly impact any traffic movements in the area. The current infrastructure for sanitary sewer, storm sewer and water will be able to handle the additional volume generated from the proposed development. Based on the development plans, there are no additional costs associated with street maintenance, sweeping, plowing, lighting and sidewalks. The development in the District is expected to contribute an estimated $200 per connection in sanitary sewer (SAC) and $400 per connection in water (WAC) connection fees. The probable impact of any District general obligation tax increment bonds on the ability to issue debt for general fund purposes is expected to be minimal. It is not anticipated that there will be any general obligation debt issued in relation to this project, therefore there will be no impact on the City's ability to issue future debt or on the City's debt limit. (3) Estimated amount of tax increment attributable to school district levies. It is estimated that the amount of tax increments over the life of the District that would be attributable to school district levies, assuming the school district's share of the total local tax rate for all taxing jurisdictions remained the same, is $1,489,449; Columbia Heights Economic Development Authority Tax Increment Financing Plan for the 47th and Grand Tax Increment Financing District 2 -9 103 (4) Estimated amount of tax increment attributable to county levies It is estimated that the amount of tax increments over the life of the District that would be attributable to county levies, assuming the county's share ofthe total local tax rate for all taxing jurisdictions remained the same, is $1,866,316; (5) Additional information requested by the county or school district The City is not aware of any standard questions in a county or school district written policy regarding tax increment districts and impact on county or school district services. The county or school district must request additional information pursuant to M.S. Section 469.175 Subd. 2(b) within 15 days after receipt of the tax increment financing plan. No requests for additional information from the county or school district regarding the proposed development for the District have been received. Subsection 2 -16. Supporting Documentation Pursuant to Section 469.175, Subd. I (a), clause 7 of the TIF Act, this TIF Plan must contain identification and description of studies and analyses used to make the findings are required in the resolution approving the District. Following is a list of reports and studies on file at the City that support the EDA and City's findings: • City of Columbia Heights 2030 Comprehensive Plan • Sheffield Neighborhood Redevelopment Plan • Metropolitan Council Housing Policy Plan, Allocation of Affordable Housing Need Subsection 2 -16. Definition of Tax Increment Revenues Pursuant to Section 469.174, Subd. 25 of the TIF Act, tax increment revenues derived from a tax increment financing district include all of the following potential revenue sources: 1. Taxes paid by the captured net tax capacity, but excluding any excess taxes, as computed under Section 469.177 of the TIF Act; 2. The proceeds from the sale or lease of property, tangible or intangible, to the extent the property was purchased by the authority with tax increments; 3. Principal and interest received on loans or other advances made by the authority with tax increments; 4. Interest or other investment earnings on or from tax increments; 5. Repayments or return of tax increments made to the Authority under agreements for districts for which the request for certification was made after August 1, 1993; and 6. The market value homestead credit paid to the Authority under M.S., Section 273.1384. Subsection 2 -17. Modifications to the District. In accordance with Section 469.175, Subd. 4 of the TIF Act, any: 1. Reduction or enlargement of the geographic area of the District, if the reduction does not meet the requirements of Section 469.175, Subd. 4(e) of the TIF Act; 2. Increase in amount of bonded indebtedness to be incurred; 3. A determination to capitalize interest on debt if that determination was not a part of the original TIF Plan; 4. Increase in the portion of the captured net tax capacity to be retained by the EDA or City; 5. Increase in the estimate ofthe cost ofthe District, including administrative expenses, that will be paid or financed with tax increment from the District; or Columbia Heights Economic Development Authority Tax Increment Financing Plan for the 47th and Grand Tax Increment Financing District 2 -10 104 6. Designation of additional property to be acquired by the EDA or City, shall be approved upon the notice and after the discussion, public hearing and findings required for approval of the original TIF Plan. Pursuant to Section 469.175 Subd. 4(1) of the TIF Act, the geographic area of the District may be reduced, but shall not be enlarged after five years following the date of certification of the original net tax capacity by the county auditor. If a housing district is enlarged, the reasons and supporting facts for the determination that the addition to the district meets the criteria of Section 469.174, Subd. 11 of the TIF Act must be documented. The requirements of this paragraph do not apply if (1) the only modification is elimination of parcel(s) from the District and (2) (A) the current net tax capacity ofthe parcel(s) eliminated from the District equals or exceeds the net tax capacity of those parcel(s) in the District's original net tax capacity or (B) the EDA agrees that, notwithstanding Section 469.177, Subd. 1 of the TIF Act, the original net tax capacity will be reduced by no more than the current net tax capacity of the parcel(s) eliminated from the District. The EDA or City must notify the County Auditor of any modification to the District. Modifications to the District in the form of a budget modification or an expansion of the boundaries will be recorded in the TIF Plan. Subsection 2 -18. Administrative Expenses In accordance with Section 469.174, Subd. 14 ofthe TIF Act, administrative expenses means all expenditures of the EDA or City, other than: 1. Amounts paid for the purchase of land; 2. Amounts paid to contractors or others providing materials and services, including architectural and engineering services, directly connected with the physical development of the real property in the District; 3. Relocation benefits paid to or services provided for persons residing or businesses located in the District; 4. Amounts used to pay principal or interest on, fund a reserve for, or sell at a discount bonds issued pursuant to Section 469.178 of the TIF Act; or 5. Amounts used to pay other financial obligations to the extent those obligations were used to finance costs described in clauses (1) to (3). For districts for which the request for certification were made before August 1, 1979, or after June 30, 1982, and before August 1, 2001, administrative expenses also include amounts paid for services provided by bond counsel, fiscal consultants, and planning or economic development consultants. Pursuant to Section 469.176, Subd. 3 of the TIF Act, tax increment may be used to pay any authorized and documented administrative expenses for the District up to but not to exceed 10 percent of the total estimated tax increment expenditures authorized by the TIF Plan or the total tax increments, as defined by Section 469.174, Subd. 25, clause (1) of the TIF Act, from the District, whichever is less. For districts for which certification was requested after July 31, 2001, no tax increment may be used to pay any administrative expenses for District costs which exceed ten percent of total estimated tax increment expenditures authorized by the TIF Plan or the total tax increments, as defined in Section 469.174, Subd. 25, clause (1) of the TIF Act, from the District, whichever is less. Pursuant to Section 469.176, Subd. 4h of the TIF Act, tax increments may be used to pay for the County's actual administrative expenses incurred in connection with the District and are not subject to the percentage Columbia Heights Economic Development Authority Tax Increment Financing Plan for the 47th and Grand Tax Increment Financing District 2 -11 105 limits of Section 469.176, Subd. 3 of the TIF Act. The county may require payment of those expenses by February 15 of the year following the year the expenses were incurred. Pursuant to Section 469. 177, Subd. 11 of the TIF Act, the County Treasurer shall deduct an amount (currently .36 percent) of any increment distributed to the EDA or City and the County Treasurer shall pay the amount deducted to the State Commissioner of Management and Budget for deposit in the state general fund to be appropriated to the State Auditor for the cost of financial reporting of tax increment financing information and the cost of examining and auditing authorities' use of tax increment financing. This amount may be adjusted annually by the Commissioner of Revenue. Subsection 2 -19. Requirement of Qualified Activity The tax increment pledged to the payment of bonds and interest thereon may be discharged and the District may be terminated if sufficient funds have been irrevocably deposited in the debt service fund or other escrow account held in trust for all outstanding bonds to provide for the payment of the bonds at maturity or redemption date. Pursuant to Section 469.176, Subd. 6 of the TIF Act: if, after four years from the date of certification of the original net tax capacity of the tax incrementfinancing districtpursuant to M.S., Section 469.177, no demolition, rehabilitation or renovation of property or other site preparation, including qualified improvement of a street adjacent to a parcel but not installation of utility service including sewer or water systems, has been commenced on a parcel located within a tax incrementfinancing district by the authority or by the owner of the parcel in accordance with the tax incrementfinancing plan, no additional tax increment may be taken from that parcel, and the original net tax capacity of that parcel shall be excluded from the original net tax capacity of the tax increment financing district. If the authority or the owner of the parcel subsequently commences demolition, rehabilitation or renovation or other sitepreparation on thatparcel including qualified improvement of a street adjacent to that parcel, in accordance with the tax incrementfinancingplan, the authority shall certify to the county auditor that the activity has commenced and the county auditor shall certify the net tax capacity thereof as most recently certified by the commissioner of revenue and add it to the original net tax capacity ofthe tax incrementfinancing district. The county auditor must enforce the provisions ofthis subdivision. The authority must submit to the county auditor evidence that the required activity has taken place for each parcel in the district. The evidence for a parcel must be submitted by February I of the fifth yearfollowing the year in which the parcel was certified as included in the district. For purposes of this subdivision, qualified improvements of a street are limited to (1) construction or opening of a new street, (2) relocation of a street, and (3) substantial reconstruction or rebuilding of an existing street. The EDA or City or a property owner must improve parcels within the District by approximately July 2021 and report such actions to the County Auditor. Subsection 2 -20. Use of Tax Increment The EDA or City hereby determines that it will use 100 percent of the captured net tax capacity of taxable property located in the District for the following purposes: 1. To pay the principal of and interest on bonds issued to finance a project; Columbia Heights Economic Development Authority Tax Increment Financing Plan for the 47th and Grand Tax Increment Financing District 2.12 106 2. To finance, or otherwise pay the cost of redevelopment of the Downtown Central Business Redevelopment Project pursuant to Sections 469.090 to 469.1082 of the TIF Act; 3. To pay for project costs as identified in the budget set forth in the TIF Plan; 4. To finance, or otherwise pay for other purposes as provided in Section 469.176, Subd. 4 of the TIF Act; 5. To pay principal and interest on any loans, advances or other payments made to or on behalf of the EDA or City or for the benefit of the Downtown Central Business Redevelopment Project by a developer; 6. To finance or otherwise pay premiums and other costs for insurance or other security guaranteeing the payment when due of principal of and interest on bonds pursuant to the TIF Plan or pursuant to M.S., Chapter 4620. M.S., Sections 469.152 through 469.165, and /or Sections 469.178 of the TIF Act; and 7. To accumulate or maintain a reserve securing the payment when due of the principal and interest on the tax increment bonds or bonds issued pursuant to M.S., Chapter 462C, M.S., Sections 469.152 through 469.165, and /or Sections 469.178 of the TIF Act. Revenues derived from tax increment from a housing district must be used solely to finance the cost of housing projects as defined in Sections 469.174, Subd. 11 and 469.1761 of the TIF Act. The cost of public improvements directly related to the housing projects and the allocated administrative expenses of the EDA or City may be included in the cost of a housing project. These revenues shall not be used to circumvent any levy limitations applicable to the City nor for other purposes prohibited by Section 469.176, Subd. 4 of the TIF Act. Tax increments generated in the District will be paid by Anoka County to the EDA for the Tax Increment Fund of said District. The EDA or City will pay to the developer(s) annually an amount not to exceed an amount as specified in a developer's agreement to reimburse the costs of land acquisition, public improvements, demolition and relocation, site preparation, and administration. Remaining increment funds will be used for EDA or City administration (up to 10 percent) and for the costs of public improvement activities outside the District. Subsection 2 -21. Excess Increments Excess increments, as defined in Section 469.176, Subd. 2 of the TIF Act, shall be used only to do one or more of the following: 1. Prepay any outstanding bonds; 2. Discharge the pledge of tax increment for any outstanding bonds; 3. Pay into an escrow account dedicated to the payment of any outstanding bonds; or 4. Return the excess to the County Auditor for redistribution to the respective taxing jurisdictions in proportion to their local tax rates. The EDA or City must spend or return the excess increments under paragraph (c) within nine months after the end of the year. In addition, the EDA or City may, subject to the limitations set forth herein, choose to modify the TIF Plan in order to finance additional public costs in the Downtown Central Business Redevelopment Project or the District. Columbia Heights Economic Development Authority Tax Increment Financing Plan for the 47th and Grand Tax Increment Financing District 2 -13 107 Subsection 2 -22. Requirements for Agreements with the Developer The EDA or City will review any proposal for private development to determine its conformance with the Development Program and with applicable municipal ordinances and codes. To facilitate this effort, the following documents may be requested for review and approval: site plan, construction, mechanical, and electrical system drawings, landscaping plan, grading and storm drainage plan, signage system plan, and any other drawings or narrative deemed necessary by the EDA or City to demonstrate the conformance of the development with City plans and ordinances. The EDA or City may also use the Agreements to address other issues related to the development. Pursuant to Section 469.176, Subd. 5 of the TIF Act, no more than 10 percent, by acreage, of the property to be acquired in the District as set forth in the TIF Plan shall at any time be owned by the EDA or City as a result of acquisition with the proceeds of bonds issued pursuant to Section 469.178 of the TIF Act to which tax increments from property acquired is pledged, unless prior to acquisition in excess of 10 percent of the acreage, the EDA or City concluded an agreement for the development of the property acquired and which provides recourse for the EDA or City should the development not be completed. Subsection 2 -23. Assessment Agreements Pursuant to Section 469.177, Subd. 8 of the TIF Act, the EDA or City may enter into a written assessment agreement in recordable form with the developer of property within the District which establishes a minimum market value of the land and completed improvements for the duration of the District. The assessment agreement shall be presented to the County Assessor who shall review the plans and specifications for the improvements to be constructed, review the market value previously assigned to the land upon which the improvements are to be constructed and, so long as the minimum market value contained in the assessment agreement appears, in the judgment of the assessor, to be a reasonable estimate, the County Assessor shall also certify the minimum market value agreement. Subsection 2 -24. Administration of the District Administration of the District will be handled by the Community Development Director Subsection 2 -26. Annual Disclosure Requirements Pursuant to Section 469.175, Subds. 5, 6, and 6b of the TIF Act the EDA or City must undertake financial reporting for all tax increment financing districts to the Office ofthe State Auditor, County Board and County Auditor on or before August 1 of each year. Section 469.175, Subd. 5 of the TIF Act also provides that an annual statement shall be published in a newspaper of general circulation in the City on or before August 15. If the City fails to make a disclosure or submit a report containing the information required by Section 469.175 Subd. 5 and Subd. 6 of the TIF Act, the Office of the State Auditor will direct the County Auditor to withhold the distribution of tax increment from the District. Subsection 2 -26. Reasonable Expectations As required by the TIF Act, in establishing the District, the determination has been made that the anticipated development would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future. In making said determination, reliance has been placed upon written representation made by the developer to such effects and upon EDA and City staff awareness ofthe feasibility of developing the project site(s) within the District. See Appendix F for further detail. Columbia Heights Economic Development Authority Tax Increment Financing Plan for the 47th and Grand Tax Increment Financing District 2 -14 108 Subsection 2 -27. Limitations on the Use of Tax Increment 1. General Limitations. All revenue derived from tax increment shall be used in accordance with the TIF Plan. The revenues shall be used to finance, or otherwise pay the cost of redevelopment of the Downtown Central Business Redevelopment Project pursuant to Sections 469.090 to 469.1082 ofthe TIF Act. Tax increments may not be used to circumvent existing levy limit law. No tax increment may be used for the acquisition, construction, renovation, operation, or maintenance of a building to be used primarily and regularly for conducting the business of a municipality, county, school district, or any other local unit of government or the state or federal government. This provision does not prohibit the use of revenues derived from tax increments for the construction or renovation of a parking structure. Housing District Exceotions to Restriction on Pooling; Five Year Limit. Pursuant to Section 469.1763, of the TIF Act (1) At least 80% of the tax increment derived from the District must be expended on Public Costs incurred within said district, and up to 20% of said tax increments may be spent on public costs incurred outside of the District but within the Downtown Central Business Redevelopment Project; provided that in the case of a housing district, a housing project, as defined in Section 469.174, Subd. 11 of the TIF Act, is deemed to be an activity in the District, even if the expenditure occurred after five years. Subsection 2 -28. Summary The Columbia Heights Economic Development Authority is establishing the District to provide an impetus for affordable residential development and provide safe and decent life cycle housing in the City. The TIF Plan for the District was prepared by Ehlers & Associates, Inc., 3060 Centre Pointe Drive, Roseville, Minnesota 55113 -1105, telephone (651) 697 -8500. Columbia Heights Economic Development Authority Tax Increment Financing Plan for the 47th and Grand Tax Increment Financing District 2 -15 109 Appendix A Project Description Columbia Heights Leased Housing Associates I1I, LLLP intends to redevelop the parcels in the District into an affordable apartment project with an estimated total of 173 apartment units. All 173 apartments units (100 %) are anticipated to be affordable to households with incomes at or below 60% of area median income. The EDA or City intends to issue a PAYGO TIF Note to offset qualified costs related to the development of the site. Appendix A -1 110 Appendix B Map of the Downtown Central Business Redevelopment Project and the District Appendix B_1 111 47th and Grand Tax Increment Financing District Downtown Central Business District Redevelopment Project City of Columbia Heights Anoka County, Minnesota Legend . Downtown Central Business District Redevelopment Project 47th and Grand Tax Increment Financing District The boundaries of the Central Business District Redevelopmellt Project arc coterminous with the corporate limits of the City of Columbia Heights. 112 i i• r � _ I - I - _ � - ' I r 7 — �..7 _ 1 -- y - _ ._ ! p Legend . Downtown Central Business District Redevelopment Project 47th and Grand Tax Increment Financing District The boundaries of the Central Business District Redevelopmellt Project arc coterminous with the corporate limits of the City of Columbia Heights. 112 Appendix C Description of Property to be Included in the District The District encompasses all property and adjacent rights -of -way and abutting roadways identified by the parcels listed below. Parcel Numbers Address Owner 25- 30 -24 -32 -0064* 4729 Grand Ave NE New Heights Development 25- 30 -24 -32 -0065* 1069 Grandview Way NE New Heights Development 25- 30 -24 -32 -0072* Unassigned New Heights Development These parcels are currently in the K -Mart/Central Avenue Tax Increment Financing District (County Identifier T4) and will be removed prior to certification of the District. Because the total current net tax capacity of the parcels ($11,956) to be eliminated from the K -mart /Central Avenue Tax Increment Financing District equals or exceeds the net tax capacity of the parcels in the original net tax capacity ($10,647), no public hearing is required to remove the parcels pursuant to Section 469.175, Subd. 4, clause (e)(2)(A) of the TIF Act. Appendix C -1 113 Appendix D Estimated Cash Flow for the District Appendix D -1 114 A a a E 3 y Q d 3 ¢7 O N N m A R r 0 o a o e o o v e e e e O O O O h N O N O m 0 O Ltl O O O d !. ui d � 0 U 0 T d U d o 0 m E_ R d �NN U'V C _ SO N d &Z5 C5 X d E R 3 3 U N a K a w m m W U y of W U d W U II O z UUU o d R t0 T N N= a d EE E m-RO o p d d E E! `o c E W U U K Q Z T Q N N N N N N N N N lU N N N N a a aaaa rn m o o mom0m�n Ao e o� o N Q NO N O m L O O m m 0 0 N N N N N D d m 0 N N O V o a w T y E o o m m m _ a C O>O MM V N � � V O C U) z Z N E R '- C E N d m -a E R d C p ` o II � C W mni = i a Q d = r m a p � O E II R X d R �' � Q E d uj U - Ud CD c v r O Q w tq OL d N R O Nd N � U • S 'N C 7V d r t t L N _ N N .F d• N X N 1>- W W N U. 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Q W W W m N N W W tV N at m W W W 1n to to r n m m M M m W Q Q N N N N N N LL� to m W Q Q �- O O O O M QQ 00000000 M Mr�NN��NNCN]�M M���Q� to ^ W r r ar--^ pmp W m Ori O O O W M h W r m N r ^ N N m O m W m m r O r m r n W M Q a� W n m to V W O n W M O W h O r M O n v W r W M O m W m M m W m O N W W m O O N N M Q Q W W r m m m O N M A N n W O N N N N N N N N N N N N N N M M M M M M M M M Q Q e e e e e e 0 o e e e e e o e e e e e e e e e e 0 m m m m m m m m m m m M m m m m m m m m m m m m m m m W W m W W Co W m W W W m W W m W m m m m m W W m m m N N N N N N N N N N N N N N N N N N N N N N N N N N m ni of of of m of m 0 m M m M m ni tri M m to ni to m ni M M of M V r M r M S2 S2 M r M r �2 M V V M r r M M ^ r M M r V M r M M r r M M V r M M O N m r m O N n M to Q O to Q M W m N W r to n m N Q W W n M to M N r O O m W M O r W r O W W n N N r Q N N M W O W M M Q W W n r O W M N a M 10 m W Q m M W M W M m Q O W N W m W N M O W W Q N O W N N W W W m m O O N N N N M Q N N 2 N N W n m m O N N N N M In to 1!1 to t[1 to In N to to to � N to In N N to N Ln H !n 4j In In N M M M M M C C C C C C C C r v C C C C C C .r... C C v C C v C C W W W Q N Q W r m r W m h M M N m W M O O M O O to W W M m N a M Q n n to Q W W N at m m N n W O r r W h G W O Ln O W n M IP M N W W N O r W M O m m M r O e e e e e e e e e e e e e e e e e e e e e e e e e e O o 0 0 o O o 0 0 0 0 0 o O O O o o O o 0 0 o O O o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 � m h r E 2 m E U Z 0 v d N d EL` m 0 N d Z � O c E m m ro Iu a` m - O b W d n a` Appendix E Housing Qualifications for the District INCOME RESTRICTIONS - ADJUSTED FOR FAMILY SIZE (HOUSI.NG DISTRICT) - ANOKA COUNTY ANOKA COUNTY MEDIAN INCOME: $90,400 No. of Persons 50% of Median Income 60% of Median Income 1- person $31,650 $37,980 2- person $36,200 $43,440 3- person $40,700 $48,840 4_ person $45,200 $54,240 Source: Department of Housing and Urban Development and Minnesota Housing Finance Agency The two options for income limits on a standard housing district are 20% of the units at 50% of median income or 40% of the units at 60% of median income. There are no rent restrictions for a housing district. ** *PLEASE NOTE: THESE NUMBERS ARE ADJUSTED ANNUALLY. ALL INCOME FIGURES REPORTED ON THIS PAGE ARE FOR 2017. Appendix E -1 118 Appendix F Findings for the District The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan (the "TIF Plan") for the 47th and Grand Tax Increment Financing District (the TIF District "), as required pursuant to Minnesota Statutes, Section 469.175, Subdivision 3, are as follows: Finding that the TIF District is a housing district as defined in M.S., Section 469.174, Subd. 11. The TIF District consists of three parcels. The development will consist of 173 units of affordable rental housing, all or a portion of which will receive tax increment assistance and will meet income restrictions described in M.S., Section 469.1761. 100 percent of the units/homes receiving assistance will have incomes at or below 60 percent of statewide median income. Appendix E of the TIF Plan contains background for the above finding. 2. Finding that the proposed development, in the opinion of the City Council, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future. The proposed development, in the opinion of the City, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future: This finding is supported by the fact that the development proposed in this plan is a housing district that meets the City's objectives for development and redevelopment, but that due to the high cost of building new affordable housing in the City, the cost of financing the proposed public improvements, and the insufficiency of rents in an affordable housing development to provide a sufficient financial return, the project is feasible only through assistance, in part, from tax increment financing. The developer was asked for and provided a letter and a proforma as justification that the developer would not have gone forward without tax increment assistance. 3. Finding that the TIF Plan for the TIFDistrict conforms to the general plan for the development or redevelopment of the municipality as a whole. The Planning Commission reviewed the TIF Plan and found that the TIF Plan conforms to the general development plan of the City. 4. Finding that the TIF PIan for the TIF District will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development or redevelopment of the Downtown Central Business Redevelopment Project by private enterprise. Through the implementation of the TIF Plan, the EDA or City will provide an impetus for affordable residential development, which is desirable or necessary for increased population and an increased need for life -cycle rental housing within the City. Appendix F -1 119 CH COLUMBIA HEIGHTS AGENDA SECTION BUSINESS ITEM ITEM NO. 9Aa MEETING DATE JULY 10, 2017 CITY OF COLUMBIA HEIGHTS - CITY COUNCIL ITEM: Accepting Bids and Awarding a Contract for the Abatement and Demolition DEPARTMENT: Community Development CITY MANAGER'S APPROVAL.,] BY /DATE: Keith M Dahl, July 5, 2017 BY /DATE: BACKGROUND: The City of Columbia Heights (the "City') owns the properties located at 4201 Jefferson Street NE and 4641 -43 Polk Street NE (the "Subject Property "). And, since the structures on the Subject Property are dilapidated beyond repair, the City has determined that demolition of the structures is necessary for the safety of the public. Thus, staff authorized a pre - demolition survey to be conducted on the property to identify all suspect materials considered hazardous before demolition and to verify the extent of remediation, if any. The pre - demolition survey confirmed contamination levels of asbestos, lead and other various hazardous materials in the structures. Since contamination was verified to be present in the structures, abatement is required to occur prior to the commencement of any demolition activities. Therefore, a Minnesota licensed abatement contractor will be required by state law for the removal and the proper disposal of all hazardous materials. Staff prepared a Request for Quotes (the "RFQ') for the abatement of hazardous materials and demolition of the residential structures located on the Subject Property. RFQs containing scope of work and specifications were sent out to ten (10) qualified demolition contractors, as well as abatement contractors. Only two (2) demolition contractors submitted bids for the abatement and demolition of the Subject Property. The quotes are as follows: Demolition Contractors Kamish Excavating, Inc. Kevitt Excavating LLC Demolition Quote $ 34,836.00 $ 79,446.44 Abatement Quote $ 13,613.00 N/A (Included in Demolition Quote) Total Quote $ 48,449.00 $ 79,446.44 Staff has reviewed both quotes submitted against the services requested in the RFQ and has concluded that the low qualified bid from Kamish Excavating, Inc. in the amount of $48,449.00 is a comprehensive bid for the services requested. If approved, the abatement of the hazardous materials and demolition would commence after the contract has been executed by both parties, the Minnesota Department of Health receives a 5 -day notification, and the Minnesota Pollution Control Agency receives a 10 -day mandatory notification. Staff anticipates that the demolition of the structures on the Subject Property will commence on or before August 1, 2017 and will be concluded before September 1, 2017. Once demolition is complete, the Subject Property will be incorporated into the Single Family Home Lot Sales Program administered by the Columbia Heights Economic Development Authority. The program was established to stabilize and increase property values throughout neighborhoods within the City, and to increase Single - Family home ownership. City of Columbia Heights - City Council Letter 120 City of Columbia Heights - Council Letter STAFF RECOMMENDATION: Staff recommends the approval of Resolution 2017 -78, a resolution authorizing execution of a Work Agreement for the abatement of asbestos, lead and hazardous materials and building demolition for the properties located at 4201 Jefferson Street NE and 4641 -43 Polk Street NE. Page 2 RECOMMENDED MOTION(S): Motion: Move to waive the reading of Resolution 2017 -78, there being ample copies available to the public. Motion: Move to approve resolution 2017 -78, being a resolution authorizing execution of a Work Agreement for the abatement and demolition of residential structures by and between Kamish Excavating, Inc. ATTACHMENTS: 1. Resolution 2017 -78 2. Work Agreement (7 Pages) 121 RESOLUTION NO. 2017 -78 RESOLUTION AUTHORIZING EXECUTION OF A WORK AGREEMENT FOR THE ABATEMENT AND DEMOLITION OF RESIDENTIAL STRUCTURES BY AND BETWEEN KAMISH EXCAVATING, INC. BE IT RESOLVED BY the City Council for the City of Columbia Heights, Minnesota (the "City ") as follows: WHEREAS, the City is the current owner of certain real property located at 4201 Jefferson Street NE and 4641- 43 Polk Street NE, Columbia Heights, Anoka County, Minnesota (the "Subject Property "), and legally described as follows respectively: Lot 16, Block 32, Columbia Heights Annex to Minneapolis, Anoka County, Minnesota, according to the recorded plat thereof; and That Part of Lot 23 lying north of the south 20 feet of said Lot 23, and Lot 24, in Block 1, Sheffield's Second Subdivision, Anoka County, Minnesota according to the recorded plat thereof, and situated in Anoka County, Minnesota. WHEREAS, the City intends to demolish the structures located on the Subject Property, which was classified to be hazardous and substandard pursuant to Minnesota Statues Sections 463.15 to 463.26; and WHEREAS, the City has determined that the removal of the structures on the Subject Property as described in this resolution is of the best interest of the City and its residents; and WHEREAS, pursuant to Minnesota State Statue Section 471.345 Uniform Municipal Contracting Law, the City solicited sealed bids to numerous contractors for quotes related to the abatement and demolition of the structures on the Subject Property as detailed in the Scope of Work and Specifications (the "Services "); and WHEREAS, Kamish Excavating, Inc. submitted the lowest responsible bid for the specific Services requested by the City. NOW, THEREFORE BE IT RESOLVED by the City Council that the Work Agreement is awarded to Kamish Excavating, Inc. in the amount of, not to exceed, $48,449.00. BE IT FURTHER RESOLVED that the Mayor and City Manager are hereby authorized and directed to execute said Work Agreement, and take such action as deemed necessary and appropriate to carry out the purpose of the foregoing resolution. ORDER OF CITY COUNCIL Passed this day of 12017 Offered by: Seconded by: Roll Call: Donna Schmitt, Mayor Attest: Katie Bruno, Council Secretary /City Clerk Resolution 2017 -78 122 Contract # CITY OF COLUMBIA HEIGHTS WORK AGREEMENT This Agreement is made this 10th day of July, 2017 by and between the City of Columbia Heights ( "the City") and Kamish Excavating, Inc._(the "Contractor ") for abatement of asbestos, lead and hazardous materials, and building demolition of two (2) residential properties located at 4201 Jefferson Street NE and 4641 -43 Polk Street NE, Columbia Heights, Minnesota as detailed in the Request For Quotes (the "RFQ "). WITNESSETH: WHEREAS, the City desires to have performed or constructed the services or facilities described in the Contract Documents (the "Work "); WHEREAS, Contractor represents that it has the necessary personnel, experience, competence, and legal right to perform the Work; WHEREAS, the City has adopted a motion authorizing City staff to enter into a contract for the completion of the Work specified herein. NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: 1. WORK TO BE COMPLETED ... The Work shall be performed in strict accordance with the Contract Documents. The Contractor shall carefully review all of the Contract Documents before performing the Work and shall promptly call to the attention of the City any discrepancy or inconsistency which may exist between any two or more documents or between any parts of the same document. The City shall have discretion as to how to address any such discrepancy or inconsistency and shall modify, interpret, or adjust the Contract Documents accordingly as the case may be. Seeding of the site per specifications outlined in "Standard Specifications for Removals, Excavations, and Restorations" is required by October 15, 2017, a 10% retainer will be held until proper seeding is completed. If the specifications are not met by April 15, 2018 or grass is not established in a timely manner the City will use the 10 % retainer to seed the lot. 2. CONTRACT DOCUMENTS ... The Contract Documents shall consist of this Work Agreement and the Scope of Work & Specifications prepared by the City, and signed by you, in connection with the Work (where specified), the Standard and Specifications for Removals, Excavation, and Restoration, all Amendment Request Certificates approved by the City, all Change Orders issued by the City, the Notice to Proceed, the Completion Certificate, and written interpretations of the Contract Documents issued by the City. The Contract Documents shall, insofar as is possible, be interpreted to be consistent with one another. Any inconsistencies shall be addressed pursuant of section 1 of this Agreement. 3. PERMITS AND REGULATIONS ... Prior to commencing the Work, the Contractor shall secure all necessary building permits and licenses as may be required, and before and during the progress of the Work, give all notices and comply with all the laws, ordinances, gales, and regulations of every kind and nature now or hereafter in effect that are promulgated by any federal, state, county, or other governmental authority, relating to the perfonnance of the Work. If the Contractor's performance is contrary to any such law, ordinance, rule, or regulation, it shall bear all costs arising there from. Contractor specifically agrees to abide by and observe all standards and regulations of the Occupational Safety and Health Administration, which are applicable to the Work. 4. PROSECUTION OF THE WORK ... The Contractor shall at all times prosecute the Work diligently so as to insure its completion in full accordance with the Contract Documents and shall at all times furnish sufficient numbers and amounts of properly skilled Workers, acceptable materials and equipment, adequate services, construction tools, and equipment. The Work shall be performed in a good and Workmanlike manner. Contractor shall keep the Work site clean and orderly during the course of the Work and remove all debris at the completion of the Work. If the Contractor is negligent in these areas, the City reserves the right to perform this work with its own 123 forces at overtime rates. The costs of such work shall be charged to the Contractor. The Contractor will adequately protect the Work from damage, will protect the property from injury or loss, and will take all necessary precautions during the progress of the Work to protect all persons and the property of others from injury or damage. The Contractor will assume full responsibility for all its tools and equipment and all materials to be used in connection with the Work. Materials and equipment that have been removed and replaced, as part of the Work shall belong to the Contractor unless agreed otherwise. 5. COMMENCEMENT AND COMPLETION OF WORK; LIQUIDATED DAMAGES ... The Work must not start until after July 10, 2017 and all contracts have been signed and must be satisfactorily completed in the opinion of the City by September 15, 2017. If the Contractor is unable to commence the Work by the specified date, it must promptly notify the City. In the event the Work is not completed by the specified date, the Contractor and its sureties shall be assessed liquidated damages of one percent (1 %) of the total Contract Price or fifty dollars ($50.00), whichever is greater, per day for each calendar day of delay excluding Saturday, Sunday, and legal holidays. This sum shall be deducted from the Contract Price at the time of payment. This provision for liquidated damages represents the best estimate by the City and the Contractor of loss suffered by the City due to failure to complete the Work on time, and shall not be, or is deemed to be, a penalty or forfeiture. This provision for liquidated damages is in addition to any and all other rights and remedies to which the City may be entitled at law or in equity in connection with this Agreement. 6. EXCUSABLE DELAYS ... The following circumstances, and only these circumstances, will, at the City's discretion, be considered legitimate cause for a change in the commencement and /or completion dates specified in paragraph 5 of this Agreement: a. Material delay -- material delays that are beyond the control of the Contractor, which can be shown to have directly caused the overall late completion. b. Adverse weather conditions -- weather conditions that directly affect the scheduling of exterior work over a significant portion of the term of this Agreement. C. Strikes -- Contractors who face union work stoppage in the case where they have to rely on such a work force in order to complete the Work. d. Amendments -- significant amendments in the original scope of work, which can be reasonably shown to require an extension of the time, allowed for completion. e. Emergencies -- accidents, death or illness in the immediate family of the Contractor, which necessitates a significant leave of absence from the job. f. Proven lack of cooperation from persons in possession of the property resulting in significant delays. g. Proven lack of cooperation from the Contractor's agents resulting in significant delays. 7. AMENDMENT REQUEST CERTIFICATE ... Changes in the scope, specifications, or cost of the Work that are proposed by the Contractor subsequent to the execution of this Agreement shall be considered Amendments. No such Amendments shall be made without prior NN ritten approval by the City. Any Amendment proposed by the Contractor shall be submitted via an Amendment Request Certificate. The Amendment Request Certificate must: (a) be signed and dated by the Contractor; (b) specify how the Work is to be amended and the cost for such Amendments; and (c) specify the reason for any cost increase. / decrease resulting from the Amendment(s). The City will approve or disapprove the Amendment Request Certificate after appropriate review and property inspection. If approved, a copy of the signed Amendment Request Certificate will be forwarded to the Contractor. Upon receipt by the Contractor of the approved Amendment Request Certificate, the approved Amendment(s) may be implemented. All Amendments made before receipt of an approved Amendment Request Certificate will not be compensable by the City. No such Amendment Request Certificate shall be deemed to constitute a waiver of any remaining covenant, agreement, term, or condition contained in the Contract Documents. 124 8. CHANGE ORDER ... The City shall have the right, within the general scope of the Work and without notice to any surety or sureties of the Contractor, to make changes in the Work, either by altering the nature of the same or by adding to or deducting from it. All changes shall, except in the case of emergencies endangering the safety of persons or property be made by written Change Order. The Contractor shall promptly comply with any and all written Change Orders. No such Change Order shall be deemed to invalidate the remaining terms and conditions contained in the Contract Documents. 9. GENERAL GUARANTY ... The Contractor hereby guarantees to the City that all of the Work shall be done in competent, workman -like manner and that such Work shall be and remain free of defects in workmanship and materials for a period of one (1) year from the date that the City executes the Completion Certificate pursuant to section 17 of this Agreement. The Contractor warrants that all materials and equipment furnished in connection with the Work will be new, unless otherwise specified, and be of good quality and free from faults and defects. The Contractor shall assign to the City (if assignable) or enforce for the benefit of the City (if not assignable) any guarantees provided by manufacturers or sellers of machinery materials or equipment that are to be incorporated into the Work. The City's acceptance of the Work shall not be deemed to be a waiver of any of the City's rights under this section. 10. WAIVER OF LIABILITY ... It is agreed that the Work is undertaken at the sole risk of the Contractor. The Contractor does expressly forever release the City from any claims, demands, injuries, damage actions, or causes of action whatsoever, arising out of or connected with the Work. 11. INDEMNIFICATION ... Any and all claims that arise or may arise as a consequence of any act or omission on the part of the Contractor, its agents, servants, or employees while engaged in the performance of the Work shall in no way be the obligation or responsibility of the City. The Contractor shall indemnify, hold harmless, and defend the City, council members, officers, employees, successors, and assigns against any and all liability, loss, cost, damages, expenses, claims, or actions, including attorney's fees which the City, council members, officers, or employees may hereinafter incur or be required to pay on account of injury to or death of any person or persons or damage to any property arising out of or by reason of any act or omission of the Contractor, its agents, servants, or employees in the execution, performance, or failure to adequately perform its obligations under this Agreement, whatever the cause of such injuries or damage. 12. INSURANCE ... The Contractor agrees that in order to protect itself, the City under the indemnity provisions set forth in section 11 of this Agreement, it will at all times during the term of this Agreement, maintain, at a minimum, the following insurance policies: a. Workers Compensation Insurance. The Contractor shall maintain worker's compensation insurance in compliance with all applicable statutes including Chapter 176 of the Minnesota Statutes. Such policy shall include Employer's Liability Coverage and at least such amount(s) as are customarily provided in worker's compensation policies issued in Minnesota. Contractor further agrees to require all subcontractors and independent contractors to maintain worker's compensation insurance in compliance with all applicable statutes and to monitor the compliance of such subcontractors and independent contractors with the applicable statutes. b. Commercial General Liability Insurance. The Contractor shall maintain Occurrence Based Commercial General Liability Insurance ( "CGL "), providing coverage on an "occurrence ", rather than on a "claims made" basis, which policy shall include coverage for the Completed Operations Hazard, and which shall also include a Broad Form General Liability Endorsement, ISO number GL 0404, or an equivalent form (or forms), so long as such an equivalent form (or forms) affords coverage which is in all material respects at least as broad. Any equivalent form (or forms) of coverage, shall be approved by the EDA. The Contractor agrees to maintain total liability policy limits of at least One Million Dollars ($1,000,000), applying to liability for Bodily Injury, Personal Injury, and Property Damage, which total limits may be satisfied by the limits afforded under its Occurrence Based CGL policy as specified above, or by such policy in combination with the limits afforded by an Umbrella Liability Policy (or policies) provided, however, that the coverage afforded under any such 125 Umbrella Liability Policy shall be at least as broad as that afforded by the underlying occurrence based CGL Policy as specified above. C. Automobile Liability Insurance. The Contractor shall maintain automobile liability insurance covering liability for Bodily Injury and Property Damage arising out of the ownership, use, maintenance, or operation of all owned, non - owned, and hired automobiles and other motor vehicles. Such policy shall provide total liability limits for combined Bodily Injury and /or Property Damage in the amount of at least One Million Dollars ($1,000,000) per accident, which total limits may be satisfied by the limits afforded under such policy, or by such policy in combination with the limits afforded by an Umbrella Liability Policy (or policies) provided, however, that the coverage afforded under any such Umbrella Liability Policy shall be at least as broad as that afforded by the underlying automobile liability insurance policy. The City shall be named as "additional insured" parties with respect to the insurance policies specified in (b) and (c) above. The Contractor shall not commence work until a Certificate of Insurance evidencing all of the insurance policies required above is approved and a written Notice to Proceed is issued by an authorized, representative of the City. The City shall, at any time during the term of this agreement, have the right to require that the Contractor secure any additional insurance, or additional feature to existing insurance, as the City may reasonably require for the protection of its interests or those of the public. It is expressly understood that the City does not in any way represent that the minimum insurance coverage set forth in this section is sufficient or adequate to protect the interest or liabilities of the Contractor. 13. LIEN WAIVER ... Neither the Contractor nor any subcontractor or other person or entity furnishing labor, equipment, or materials in connection with the Work shall file any mechanic's lien against the City's buildings, structures or land or any part thereof. The Contractor shall protect, defend, indemnify, and hold harmless the City from any and all claims, demands, or actions of whatever nature arising out of work, labor, equipment, or materials furnished by the Contractor or its subcontractors in connection with the Work. Payment of the Contract Price shall not be due until the Contractor has delivered to the City lien waivers acceptable to the City, which release the City from all liens that may arise in connection with the Work. The Contractor shall list below the names of all suppliers and /or subcontractors that will provide materials, services, or labor in connection with the Work. The Contractor will notify the City of any changes in this list prior to the commencement of the Work. Red Pine Industries 14. CONTRACT PRICE ... The Contractor agrees to furnish all work, labor, materials, and equipment necessary to complete the Work as set forth in the Contract Documents for the sum of $48,449.00 (the "Contract Price "), to be paid by the City in accordance with the terns and conditions of this Agreement and the Scope of Work and Specifications. The Contract Price shall constitute the sole compensation payable to the Contractor for its performance of the Work or anything done in connection therewith including expenditures by the Contractor for all taxes, permits, licenses, and bonds required to perforn the Work. The Contractor shall indemnify and save the City harmless from and against any liability for any such taxes, fees, premiums, contributions, etc. that the Contractor incurs in connection with the Work. 15. EXAMINATION OF WORK SITE ... Contractor agrees that the Contract Price specified in section 14 of this Agreement is based upon Contractors examination of the work site and that it will make no claim for additional compensation or the extension of time for performance if the conditions encountered differ from those anticipated by such examination, unless such a claim is based upon conditions at the work site, or omissions, ambiguities, or conflicts in the Contract Documents, which Contractor can show could not have been discovered in the exercise of reasonable care prior to the submission of the Contract Price. 126 16. PAYMENT OF CONTRACT PRICE ... The Contractor agrees to provide the City with the following documentation as a condition to receiving payment of the Contract Price: (a) an itemized bill for the completed Work; (b) all lien waivers as required by section 14 of this Agreement (c) and receipts from demolition disposal and asbestos disposal. The City may withhold payment of the Contract Price to the Contractor to such extent as may be necessary to protect the City from loss on account of (a) defective work not remedied; (b) claims or actions filed or evidence reasonably indicating the probable filing of the same against the City with respect to the Work performed; (c) the failure of the Contractor to make payments properly to subcontractors and/or suppliers for equipment, material, or labor, or to provide evidence that such payments have been made; (d) any cost for which the Contractor is liable under the Contract Documents; or (e) a breach by Contractor of any term, condition, or provision contained in the Contract Documents. 17. EQUAL EMPLOYMENT OPPORTUNITY ... The Contractor shall not discriminate against any employee or applicant for employment on the basis of age, race, color, religion, sex, or national origin. The Contractor shall comply with all applicable laws, Executive Orders, and regulations concerning non - discrimination in employment, including the Equal Opportunity Clause of Section 202, Executive Order 11246, as amended, which is hereby incorporated by reference. 18. INDEPENDENT CONTRACTOR STATUS ... Contractor is and shall remain an independent contractor in the performance of the Work, maintaining complete control of its workers and operations. Neither Contractor nor anyone employed or engaged by Contractor shall become an agent, representative, servant, or employee of the City in the performance of the Work or any part thereof. 19. CONTRACT REPRESENTATIVES ; ADDRESSES ... The City's representative with respect to this Agreement shall be Keith Dahl, Economic Development Manager, for the City. The Contractor's representative with respect to this Agreement shall be Brad Ensrude. All notices, requests, and instructions, or other communications given or received by either party under the terms of this Agreement shall, unless otherwise specifically provided herein, be made in writing signed by the designated representative of the party making such communication and be delivered or addressed to the designated representative of the other party at the following address: CITY ADDRESS: City of Columbia Heights Attn: Keith Dahl 590 40`h Avenue Northeast Columbia Heights, MN 55421 CONTRACTOR ADDRESS: Kamish Excavating, LLC Attn: Brad Ensrude 1301 South Concord Street South St. Paul, MN 55075 20. SUBCONTRACTORS ... Contractor agrees to bind every subcontractor by the terns, conditions, and provisions set forth in the Contract Documents that are applicable to the subcontractor's work, unless otherwise specifically agreed otherwise in writing by the City. 21. ASSIGNMENT ... This Agreement shall be binding upon and in order to the benefit of the Contractor, its legal representatives, heirs, successors, and assigns. No assignment or attempted assignment of this Agreement or any rights hereunder shall be effective unless the written consent of the City is first obtained. No such assignment, even if consented to by the City, shall relieve the Contractor from liability under this Agreement for the performance and completion of the Work in accordance with the Contract Documents. 22. ENTIRE AGREEMENT ... The Contract Documents contain all the terms, conditions, and provisions pertaining to the Work to be completed by the Contractor, there being no other understandings, agreements, or warranties, express or implied. All prior negotiations and dealings regarding the subject matter of the Contract Documents are superseded by and merged into the Contract Documents. IPAN 23. APPLICABLE LAW ... This Agreement shall be construed in accordance with and governed by the laws of the state of Minnesota. 24. AMENDMENT ... This Agreement may be modified or amended only with the written approval of the City and the Contractor. 25. CONSTRUCTION ... In the event that any one or more of the provisions of this Agreement, or any application thereof, shall be found to be invalid, illegal, or otherwise unenforceable, the validity, legality, and enforceability of the remaining provisions or any application thereof shall not in any way be affected or impaired thereby. 26. AUTHORITY ... Each of the undersigned parties warrants that it has the full authority to execute this Agreement, and each individual signing this Agreement on behalf of a corporation hereby warrants that he or she has full authority to sign on behalf of the corporation and that he or she represents and binds such corporation thereby. 27. WAIVER ... No failure by the City to insist upon the strict performance of any covenant, duty, agreement, or condition contained in this Agreement or to exercise any right or remedy consequent upon a breach thereof shall constitute a waiver of any such breach or any other covenant, agreement, term, or condition, nor does it imply that such covenant, agreement, term, or condition may be waived again. 28. NOTICE TO PROCEED... The Contractor shall not proceed with work until the City issues a notice to proceed which evidences the securing of necessary permits, insurances and any other requirements of the contract documents. 29. COMPLETION CERTIFICATE... The Contractor shall receive a completion certificate upon satisfactorily completing the work outlined in the contract documents. IN WITNESS WHEREOF, the parties have set their hands this 10th day of July 2017, CITY OF COLUMBIA HEIGHTS It's Mayor - Donna Schmitt It's City Manager - Walter R. Fehst CONTRACTOR Its: 128