HomeMy WebLinkAbout11-13-2017OFFICIAL PROCEEDINGS
CITY OF COLUMBIA HEIGHTS
CITY COUNCIL MEETING
NOVEMBER 13, 2017
The following are the minutes for the regular meeting of the City Council held at 7:00 PM on Monday
November 13, 2017 in the City Council Chambers, City Hall, 590 40th Ave. N.E., Columbia Heights, Minnesota
1. CALL TO ORDER /ROLL CALL
Mayor Schmitt called the meeting to order at 7:03 p.m.
Present: Mayor Schmitt, Councilmember Williams, Councilmember Buesgens, Councilmember Murzyn, Jr.
and Councilmember Novitsky
Also Present: Walt Fehst; City Manager, Jim Hoeft; City Attorney, Kevin Hansen; Public Works Director, Gary
Gorman; Fire Chief, Keith Dahl; Economic Development Manager, Elizabeth Holmbeck; City Planner and Katie
Bruno; City Clerk /Council Secretary
2. INVOCATION
Invocation provided by Rachel James, First Lutheran
3. PLEDGE OF ALLEGIANCE
4. MISSION STATEMENT, Read by Mayor Schmitt.
Our mission is to provide the highest quality public services. Services will be provided in a fair, respectful and
professional manner that effectively address changing citizen and community needs in a fiscally - responsible
and customer friendly manner.
S. APPROVAL OF AGENDA
Mayor Schmitt announced item 8A will be removed; the landlord has canceled the appeal.
Motion by Councilmember Buesgens, seconded by Councilmember Murzyn, Jr. to approve the agenda as
amended. All Ayes, Motion Carried.
6. PROCLAMATIONS, PRESENTATIONS, RECOGNITION, ANNOUNCEMENTS, GUESTS
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 October 23, 2017
B. Accept Board & Commission Meeting Minutes
MOTION: Move to accept the Planning & Zoning minutes from the October 3, 2017 meeting
MOTION: Move to accept the Library Board minutes from the October 4, 2017 meeting
MOTION: Move to accept the EDA minutes from the October 9, 2017 meeting
MOTION: Move to accept the Traffic commission minutes from the February 6, 2017 meeting
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MOTION: Move to accept the Charter Commission minutes from the July 20, 2017 meeting
MOTION: Move to accept the Park & Recreation Commission minutes from the July 26, 2017 meeting
C. Consideration of a resolution canceling the City Of Columbia Heights regular City Council
Meeting scheduled for Monday December 25, 2017
MOTION: Move to waive the reading of Resolution No. 2017 -117, there being ample copies available to
the public.
MOTION: Move to adopt Resolution 2017 -117, being a Resolution canceling the City Council meeting
scheduled for December 25, 2017
D. Approve membership renewal for one year with the League of MN Cities
MOTION: Move to approve membership renewal for one year with League of MN Cities for $16,980.
E. Resolution 2017 -115 amending Resolution 2016 -99, to transfer funding authority for
certain comprehensive plan activities from Fund 226 Special Projects to Fund 420 Redevelopment.
MOTION: Move to waive the reading of Resolution 2017 -115, there being ample copies available to
the public.
MOTION: Move to adopt resolution 2017 -115 amending resolution 2016 -99, to transfer funding
authority for certain comprehensive plan activities from Fund 226 Special Projects to Fund 420
Redevelopment.
F. Final payment to Park Construction Company for 2015 Street Rehabilitation — Zone 1
and State Aid Street Overlay, Projects 1502 and 1505
MOTION: Move to accept the work for 2015 Street Rehabilitation Zone 1 and 2015 State Aid Street
Overlay, City Project Numbers 1502 and 1505, and authorize final payment of $8,738.65 to Park
Construction Company of Minneapolis, Minnesota.
G. Final payment to St. Paul Utilities, Inc. For water and sanitary services for Library
building, Project No. 1410
MOTION: Move to accept the utility work for the new Columbia Heights Public Library, Project No.
1410, and authorize final payment of $6,239.00 to St. Paul Utilities, Inc. of Little Canada, Minnesota.
H. Approve the Sale of 1985 Ford Fire Pumper to Atwater Fire Department
MOTION: Move to approve the sale of the 1985 Ford fire pumper, as is, to the Atwater Fire
Department for the sum of $7000.00.
I. Approval Consideration for the Issuance of Multifamily Housing Revenue Bonds
MOTION: Move to waive the reading of Resolution 2017 -119, there being ample copies available to
the public.
MOTION: Move to approve Resolution No. 2017 -119, a resolution providing final authorization for the
issuance of revenue bonds or other obligations under Minnesota Statutes, Chapter 462C, as amended,
to finance the costs of a multifamily housing development; approving the forms of and authorizing
the execution and delivery of the obligations and related documents; providing for the security,
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rights, and remedies with respect to the obligations; and taking certain other actions.
J. Approve Business License Applications
MOTION: Move to approve the items as listed on the business license agenda for November 13, 2017.
K. 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 167928 through 168186 in the amount of
$1,249,649,09.
Motion by Councilmember Buesgens, seconded by Councilmember Novitsky to approve the Consent
Agenda items as presented. All Ayes, Motion carried.
8. PUBLIC HEARINGS
A. Repeat Service call Service Fee Appeal; 940 39th Ave NE. *REMOVED
B. Adopt Resolution For Emergency Abatement, 4329 Main St NE
Fire Chief Gary Gorman indicated a family member of the owner continues to access the property
unlawfully. Staff repeatedly secures the property. Because of this ongoing issue, Gorman requested an
on -going abatement approval be granted. Councilmember Buesgens asked if there is a better way to
secure the property. Gorman indicated there are, although it would be very costly.
City Attorney Jim Hoeft clarified that an ongoing approval can be granted, if the type of abatement does
not change. Going forward the Fire Department will continue to secure the property under their existing
authority.
Mayor Schmitt suggested flyers be distributed, and encouraged neighbors to alert the Police Department
of suspicious activity at the property.
Motion by Councilmember Buesgens, seconded by Councilmember Williams to close the public hearing
and to waive the reading of Resolutions 2017 -118 and 2017 -120, there being ample copies available to
the public. All Ayes, Motion carried.
Motion by Councilmember Buesgens, seconded by Councilmember Williams to adopt Resolution
Number 2017 -118, being resolution of the City Council of the City of Columbia Heights declaring the
property at 4329 Main St NE a nuisance and approving the emergency abatement of violations from
the property pursuant to City Code section 8.206. All Ayes, Motion carried.
Motion by Councilmember Buesgens, seconded by Councilmember Williams to adopt Resolution
Number 2017 -120, being resolution of the City Council of the City of Columbia Heights declaring the
property at 4329 Main St NE a nuisance and approving the emergency abatement of violations from
the property pursuant to City Code section 8.206. All Ayes, Motion carried.
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C. Resolution No. 2017 -116, a Conditional Use Permit for assembly, manufacturing and /or processing
on the property located at 230137 th PL. NE.
City Planner Elizabeth Holmbeck reported Akaku's Brew has requested a Conditional Use Permit to allow
for processing of Daadhii, a traditional Honey Wine. The applicant is proposing to lease the westernmost
vacant tenant space of the strip center. Assembly, manufacturing and /or processing require a
Conditional Use Permit in the General Business Zoning District. Akaku's Brew has been produced locally
for over 20 years. While the wine has currently been made in small batches at the applicant's home, they
wish to expand their production and would like to start a small processing facility. On November 8th,
2017 the Columbia Heights Planning and Zoning Commission held a public hearing to consider a
recommendation on the application. At the meeting there were no members of the public present with
any questions or concerns about the application. The Planning and Zoning Commission voted
unanimously to approve the Conditional Use Permit.
Motion by Councilmember Buesgens, seconded by Councilmember Williams to waive the reading of
Resolution No. 2017 -116, there being ample copies available to the public. All Ayes, Motion carried.
Motion by Councilmember Buesgens, seconded by Councilmember Williams to approve Resolution No.
2017 -116, being a resolution approving a Conditional Use Permit subject to certain conditions of approval.
All Ayes, Motion carried.
9. ITEMS FOR CONSIDERATION
A. Other Ordinances and Resolutions
a. HVAC Maintenance Proposals
Public Works Director, Kevin Hansen reported our current HVAC contract comes due December 31, 2017.
An RFP was prepared to include preventive maintenance services on all City buildings and to provide rates
for emergency service on a time and materials basis. Five RFP's were sent out, our current contractor;
Horwitz NSI and Yale Mechanical were considered. The proposal from Horwitz NSI dropped about $9,000
from the 2017 rates.
Mayor Schmitt questioned if the new buildings influenced the drop in price. Hansen indicated that while the
building and equipment are new at the library; the facility requires a higher level of service.
Councilmember Williams asked if the lighting problem at the library has been resolved. Hansen indicated
the drivers in the LED pendant are failing, and the manufacturer will be installing new drivers.
Motion by Councilmember Buesgens, seconded by Councilmember Williams to accept the bid for HVAC
Preventive Maintenance Services from Horwitz for City facilities, based upon their low, qualified, responsible
bid and, furthermore, to authorize the Mayor and City Manager to enter into a 3 -year contract for the same.
All Ayes, Motion carried.
b. Solar Gardens
Public Works Director, Kevin Hansen reported solar energy in the city was discussed in 2015. Solar power is
now on four city buildings. Hansen explained a consortium of government entities that included 31 cities formed
to evaluate community solar gardens in the metro area. In July of 2015 the consortium formed a lottery for solar
garden subscriptions led by the Metropolitan Council, Hennepin County, Ramsey County, and the City of
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Minneapolis. The City of Columbia Heights was awarded (4) 200kW subscriptions with two different developers,
400kw with US Solar and 400kw with Geronimo Energy. Both subscriptions were for 25 years with no renewal and
require a Letter of Intent. New Energy Equity offered the city a solar garden subscription with a flat rate
subscription of $0.113, with no escalator. This means that we would pay the same monthly rate throughout the 25
year contract to the developer. Depending on Xcel Energy rate increases, the City could save $600,000 to $900,000
over the 25 year period. This subscription offers a higher rate of savings to the City over time.
Mayor Schmitt asked where the gardens are located. Greg Ackerson, representing Apex Engineering Solutions
indicated the gardens are in Lindstrom, North Branch and Scandia. Councilmember Buesgens questioned the
highest percentage of our use for solar in the future. Ackerson indicated about 70 -80% of the total municipal
electric consumption will be from solar panels.
Mayor Schmitt questioned what happens if the company defaults. Hansen indicated there no cost to enter
into the agreement, and we would return to paying Xcel Energy.
Motion by Councilmember Buesgens, seconded by Councilmember Williams to sign a Letter of Intent for
entering into a 25 year contract with New Energy Equity of Annapolis, MD far a flat rate subscription and
authorize the Mayor and City Manager to enter into an agreement for the same. All Ayes, Motion carried.
B. Bid Considerations
C. New Business and Reports
10. CITY COUNCIL AND ADMINISTRATIVE REPORTS
Councilmember Buesgens attended the Charter Commission meeting, the Park & Recreation Commission
meeting, cleaned up the Lions Park garden, assisted with the HeightsNext Haunted House, attended the Police
Department luncheon, and the MWMO meeting.
Councilmember Williams reported the library will be celebrating 90 years. Williams commented on the recent
failed School Board Referendum, stating he sees a need in the district.
Councilmember Murzyn, Jr. attended the Planning & Zoning Commission meeting. Murzyn shared that retired
paid on call Firefighter Bob Davidson has passed away.
Councilmember Novitsky attended the Harvest Fest, the Police Department luncheon and the Traffic
Commission meeting.
Mayor Schmitt hosted a bag lunch for the local faith community leaders, City Manager Fehst also attended.
Schmitt suggested community members look for ways to help the school district, noting that although the
referendum did not pass, the district needs to go on.
The Mayor announced Lenny Austin accepted to position of Police Chief, and he was officially sworn in earlier
in the day. A formal swearing in will take place at a later date. Condolences were extended to the family of
Columbia Heights resident Nick Dickson, who recently passed away. Schmitt announced applications are
being accepted for a new Art Committee at the Library through December 5th. Councilmember Williams
suggested the city support the committee.
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City Manager Walt Fehst announced the Taste of Columbia Heights is Friday, November 17th at 6:00 PM.
Manager Fehst announced Coffee with a Cop will take place on November 14th at the library, noting there is
currently an interesting photograph display at the library.
City Attorney Jim Hoeft commented that Lenny Austin is an excellent choice for Police Chief.
11. CITIZENS FORUM
Malcom Watson -1717 49th Ave NE stated it is important to support all levels of government leaders, and
thanked the council for their service.
Rachel James -4448 Tyler St NE invited community participation in our schools through "Big Brothers/
Big Sisters" and "Sheridan Story ". The next "Stories from Our Neighbors" will be on November 14th at First
Lutheran Church.
Arfasse Armada -A resident of Northeast Minneapolis indicated she could assist the School District with future
referendum efforts.
12. ADJOURNMENT
Motion by Councilmember Buesgens, seconded by Councilmember Murzyn, Jr. to adjourn. All Ayes, Motion
carried; Motion Carried.
Meeting adjourned at 8:12 p.m.
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Respectively Submitted,
Katie Bruno, Council Secretary /City Clerk
RESOLUTION NO. 2017 -115
A resolution of the City Council for the City of Columbia Heights, Minnesota, amending resolution 2016 -99, to
transfer funding authority for certain comprehensive plan activities from Fund 226 Special Projects to Fund
420 Redevelopment.
Whereas, the City Council for the City of Columbia Heights adopted resolution 2016 -99 to appropriate
$100,000 within Fund 226 Special Projects to fund certain comprehensive plan activities; and
Whereas, the City has subsequently determined that segregating the accounting of this activity from the other
activities within Fund 226 Special Projects would clarify and improve the City's financial reporting;
Now, therefore, in accordance with all ordinances and regulations of the City of Columbia Heights, the City
Council of the City of Columbia Heights makes the following:
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ORDER OF COUNCIL
IT IS HEREBY RESOLVED, that the City of Columbia Heights amends resolution 2016 -99, to transfer $100,000 of
budget authority and fund balance for certain comprehensive plan activities from Fund 226 Special Projects to
Fund 420 Redevelopment.
RESOLUTION NO. 2017 -116
A resolution of the City Council for the City of Columbia Heights, Minnesota, approving a Conditional Use
Permit for assembly, manufacturing, and /or processing on the property located at 2301 27th PI. Ne., Columbia
Heights, MN 55421.
Whereas, a proposal (Case # 2017 -1101) has been submitted by Gammada Urgessa on behalf of Akaku's Brew
to the City Council requesting a Conditional Use Permit from the City of Columbia Heights at the following site:
ADDRESS: (PIN 36- 30- 24 -44- 0012), known as 2301 27th PI. Ne., Columbia Heights, MN 55421.
LEGAL DESCRIPTION: On file at City Hall.
THE APPLICANT SEEKS THE FOLLOWING: A Conditional Use Permit per Code Section 9.110 (E) (3) (1), to allow
for assembly, manufacturing, and /or processing on the property located at 2301 27th PI. Ne., Columbia
Heights, MN 55421.
Whereas, the Planning and Zoning Commission held a public hearing as required by the City Zoning Code on
November 8th, 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 makes 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 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.
(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.
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(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.
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. All required state, county and local codes shall be met and in full compliance.
2. The applicant must obtain necessary approvals from the Metropolitan Council (Sewer Accessibility
Charge), the State of Minnesota Department of Agriculture and /or Minnesota Department of Health and /or
Anoka County Health Department. The applicant will submit a copy of all necessary permits and allowances,
prior to operation on the subject property.
3. All storage of waste material shall be located and screened in a manner consistent with the Zoning
Ordinance. The applicant will submit a plan to the City Planner which shows how the trash receptacles will be
screened.
4. The interior finish work is to be completed with review by the City's Building Official and if required,
permits must be submitted to the Building Inspections Department.
5. If the tenant ever wishes to expand within the building, plans must be submitted to the Building Official
for review and compliance with Building and Fire Code. Currently the applicant is proposing to occupy 1,500
sq. ft. of space in the building (commercial strip center). Occupying over 2,000 sq. ft. of space within the
building would require a fire suppression system to be installed in the entire building.
6. All signage is issued administratively. Any signage for the business must be submitted to the Community
Development Department to be reviewed and approved by the City Planner.
7. All production operations shall be within a completely enclosed structure (within the tenant space as
outlined on the attached site plan).
8. By- products and waste from the production of the wine shall be properly disposed in an enclosed
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container.
9. 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 (6) feet in height. The open side of the enclosure shall not face any public street
or the front yard of any adjacent property.
10. No retail sales or sampling of any alcoholic beverage shall take place on the premise (tenant space).
11. Deliveries shall be limited to occur between the hours of 8:00 AM -8:00 PM, Monday- Saturday, and 10:00
AM -6:00 PM on Sunday.
12. If the nature of the assembly, manufacturing, and /or processing use changes (currently wine production),
the property owner shall apply to have the Conditional Use Permit amended.
RESOLUTION NO. 2017 -117
A RESOLUTION CANCELING THE CITY OF COLUMBIA HEIGHTS REGULAR CITY COUNCIL MEETING
SCHEDULED FOR MONDAY DECEMBER 25, 2017
WHEREAS: The City of Columbia Heights has historically cancelled the second meeting in December; and
WHEREAS: The City Council has agreed to cancel the regular Council meeting scheduled for Monday,
December 25, 2017
NOW, THEREFORE, BE IT RESOLVED, that all interested parties be advised of this change.
RESOLUTION 2017 -118
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 Bart Mady (Hereinafter "Owner of Record ").
Whereas, the owner of record is the legal owner of the real property located at 4329 Main 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 October 27, 2017 the City of Columbia Heights responded to a complaint at the address listed
above. Inspection determined that the structure was damaged, open, and unsecured.
2. That on October 27, 2017 the Fire Chief had his designee order 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 4329 Main Street N.E.
CONCLUSIONS OF COUNCIL
1. That the property located at 4329 Main Street N.E. is in violation of the provisions of the Columbia
Heights City Code as set forth in the Notice of Abatement.
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2. That the emergency abatement of the hazardous situation located at 4329 Main Street N.E. is hereby
approved.
ORDER OF COUNCIL
1. The property located at 4329 Main Street N.E. constitutes a nuisance pursuant to City Code.
CITY OF COLUMBIA HEIGHTS, MINNESOTA
RESOLUTION NO. 2017 -119
PROVIDING FINAL AUTHORIZATION FOR THE ISSUANCE OF REVENUE BONDS OR OTHER OBLIGATIONS UNDER
MINNESOTA STATUTES, CHAPTER 462C, AS AMENDED, TO FINANCE THE COSTS OF A MULTIFAMILY HOUSING
DEVELOPMENT; APPROVING THE FORMS OF AND AUTHORIZING THE EXECUTION AND DELIVERY OF THE
OBLIGATIONS AND RELATED DOCUMENTS; PROVIDING FOR THE SECURITY, RIGHTS, AND REMEDIES WITH
RESPECT TO THE OBLIGATIONS; AND TAKING CERTAIN OTHER ACTIONS
BE IT RESOLVED by the City Council (the "Council ") of the City of Columbia Heights, Minnesota (the "City" or
the "Issuer "), as follows:
Section 1. Recitals.
1.01. The City is a home rule charter city duly organized and existing under its Charter and the Constitution
and laws of the State of Minnesota.
1.02. Pursuant to Minnesota Statutes, Chapter 462C, as amended (the "Housing Act "), the Issuer 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 or other obligations under the Housing Act, the
Issuer must prepare and adopt a housing program providing the information required by Section 462C.03,
subdivision 1a of the Housing Act after a public hearing.
1.03. The 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 the regulations promulgated thereunder (the
"Regulations "), and the requirements of the Housing Act. Section 147(f) of the Code requires a public hearing
duly noticed to be held by the Council on the proposed issuance of revenue bonds or other obligations and the
location and nature of the proposed facility to be financed. Section 462C.04, subdivision 2 of the Housing Act
requires a public hearing to be held on the housing program after one publication of notice in a newspaper
circulating generally in the City, at least fifteen (15) days before the hearing. Section 462C.04, subdivision 2 of
the Housing Act further requires that on or before the day on which the notice of public hearing is published,
the Issuer submit a housing program to the Metropolitan Council for its review and comment as to whether
such housing program furthers local and regional housing policies.
1.04. The Council may grant approval to the issuance of revenue bonds or other obligations to finance the
multifamily housing development referred to in a housing program, and may authorize the submission of an
application to the State of Minnesota Department of Management and Budget ( "MMB ") for an allocation of
bonding authority with respect to such revenue bonds or other obligations to finance the Project (as
hereinafter defined) in accordance with the requirements of Section 146 of the Code and Minnesota Statutes,
Chapter 474A, as amended (the "Allocation Act ").
1.05. On June 26, 2017, following a duly noticed public hearing, the Council adopted Resolution No. 2017-
71 (the "Preliminary Resolution ") under the terms of which the Council, among other things: (i) granted
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preliminary approval to the issuance of multifamily housing revenue bonds or other obligations (the
"Obligations "), in the aggregate principal amount not to exceed $45,000,000, under the terms of the Housing
Act for the benefit of Columbia Heights Leased Housing Associates III, LLLP, a Minnesota limited liability
limited partnership (the "Borrower ") to finance 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 Avenue NE in the City (the "Project "); (ii) adopted a housing program
providing the information required by Section 462C.03, subdivision 1a of the Housing Act (the "Housing
Program ") with respect to the Project; (iii) authorized the submission of an application for an allocation of
bonding authority of the State of Minnesota pursuant to Section 146 of the Code and in accordance with the
requirements of the Allocation Act; and (iv) stated the official intent of the Issuer to reimburse the Borrower
for expenditures made for costs of the Project from the proceeds of tax - exempt bonds or other obligations
under Section 1.150 -2 of the Regulations.
1.06. The Project is now proposed to include 148 units, with 134 underground parking spaces and an
additional 88 surface parking spaces.
1.07. The Preliminary Resolution constitutes a reimbursement resolution and an official intent of the Issuer
to reimburse expenditures with respect to the Project from the proceeds of tax - exempt revenue obligations in
accordance with the provisions of Section 1.150 -2 of the Regulations.
1.08. In accordance with the requirements of Section 462C.04, subdivision 2 of the Housing Act, the
Housing Program was submitted to the Metropolitan Council for its review and comments. The City received a
letter from the Metropolitan Council providing its comments to the Housing Program and the Project.
1.09. In accordance with the authority granted under the Preliminary Resolution, the Issuer, in cooperation
with the Borrower, submitted an application for an allocation of bonding authority to MMB. The Issuer
received Certificate of Allocation No. 315, dated August 4, 2017 (the "Allocation Certificate "), from MMB
allocating bonding authority to the Issuer in the amount of $20,060,719.
1.10. The Borrower has requested that the Issuer issue the Obligations, in the aggregate principal amount
not to exceed $20,060,719 (representing the amount of bonding authority allocated to the Issuer pursuant to
the Allocation Certificate), to be designated as: (i) Multifamily Housing Revenue Funding Note (Grand Central
Flats Project), Series 2017A (the "Series A Funding Note "); and (ii) Taxable Multifamily Housing Revenue
Funding Note (Grand Central Flats Project), Series 2017B (the "Series B Funding Note" and together with the
Series A Funding Note, the "Funding Notes ").
1.11. With respect to the Funding Notes, there have been presented before the Council (i) a form of
Funding Loan Agreement (the "Funding Loan Agreement ") proposed to be entered into by and among
Citibank, N.A., a national banking association, or another financial institution selected by the Borrower (the
"Funding Lender "), the City, and U.S. Bank National Association, a national banking association, or another
financial institution selected by the Borrower (the "Fiscal Agent "), pursuant to which the Funding Notes are
proposed to be issued; (ii) a form of Borrower Loan Agreement proposed to be entered into by and between
the City and the Borrower, pursuant to which the City will loan the proceeds of the Funding Notes to the
Borrower; and (iii) a form of Regulatory Agreement (the "Regulatory Agreement ") proposed to be entered into
between the City, the Fiscal Agent, and the Borrower, pursuant to which certain rental and occupancy
restrictions will be imposed on the Project.
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Section 2. Findings, Determinations, and Declarations. Based on representations made by the Borrower to
the Issuer to date, the Council hereby makes the following findings, determinations, and declarations:
2.01. The Project constitutes a "qualified residential rental project" within the meaning of Section 142(d)
of the Code, and a "multifamily housing development" authorized by the Housing Act, and furthers the
purposes of the Housing Act. The purpose of the Project is, and the effect thereof will be, to promote the
public welfare by the acquisition and construction of a facility for use as a multifamily housing development
designed primarily for occupancy by persons of low and moderate income.
2.02. The Issuer hereby authorizes the Borrower, in accordance with the provisions of the Housing Act and
subject to the terms and conditions imposed by the Funding Lender (as hereinafter defined), to provide for the
development of the Project and the payment of the costs of the Project by such means as shall be available to
the Borrower and in the manner determined by the Borrower.
Section 3. Ratification of Submission of Housing Program. The Housing Program adopted pursuant to the
Preliminary Resolution and submission thereof to the Metropolitan Council for its review and comment is
hereby ratified, confirmed, and approved. The City Manager is hereby authorized to do all other things and
take all other actions as may be necessary or appropriate to carry out the Housing Program in accordance with
the Housing Act and any other applicable laws and regulations. Pursuant to the Housing Program, one
hundred percent (100 %) of the housing units within the Project will be held for occupancy by families or
individuals with gross income not in excess of sixty percent (60 %) of median family income, adjusted for family
size.
Section 4. Ratification of Submission of Application for Allocation of Bonding Authority. The submission of an
application for an allocation of bonding authority pursuant to Section 146 of the Code and the Allocation Act is
hereby ratified, confirmed, and approved.
Section 5. Authorization to Issue the Funding Notes; Approving the Forms of and Authorizing the Execution
and Delivery of the Funding Notes and Related Documents; Providing for the Security Rights, and Remedies
with Respect to the Funding Notes.
5.01There is hereby authorized the issuance, sale, and delivery of the Funding Notes, in the aggregate
principal amount not to exceed $20,060,719, for the following purposes: (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
Funding Notes; (iii) the payment of interest on the Funding Notes during the construction of the Project; and
(iv) the payment of the costs of issuance with respect to the Funding Notes. The Funding Notes shall bear
interest at the rate or rates, shall be designated, shall be numbered, shall be dated, shall mature, shall be in
the aggregate principal amount, shall be subject to redemption prior to maturity, shall be in such forms, and
shall have such other terms, details, and provisions as are prescribed in the Funding Loan Agreement,
substantially in the form now on file with the Issuer, with necessary and appropriate variations, omissions, and
insertions (including changes to the titles of the Funding Notes as deemed appropriate, and changes to the
aggregate principal amounts of the Funding Notes, the stated maturities of the Funding Notes, the interest
rates on the Funding Notes and the terms of redemption of the Funding Notes) as the Mayor and the City
Manager (together the "City Officials "), in their discretion, shall determine. The execution of the Funding
Notes with the manual or facsimile signatures of the City Officials and the delivery of the Funding Notes by the
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Issuer shall be conclusive evidence of such determination. All of the provisions of the Funding Notes, when
executed as authorized herein, shall be deemed to be a part of this resolution as fully and to the same extent
as if incorporated verbatim herein and shall be in full force and effect from the date of execution and delivery
thereof.
5.02The Issuer hereby authorizes the Series A Funding Note to be issued as a "tax - exempt bond," the interest
on which is not includable in gross income for federal and State of Minnesota income tax purposes. The
Funding Notes shall be a special, limited obligation of the Issuer payable solely from the revenues provided by
the Borrower pursuant to the terms of the Borrower Loan Agreement and from the revenues and security
pledged, assigned, and granted pursuant to the security documents provided by the Borrower. The Funding
Notes shall not be payable from, nor charged upon any funds other than the revenue pledged to their
payment, nor shall the City be subject to any liability thereon, except as otherwise provided in this paragraph.
No owner of the Funding Notes shall ever have the right to compel any exercise by the City of any of its taxing
powers to pay the Funding Notes or the interest or premium thereon, or to enforce payment thereof against
any property of the City except the interests of the City in the Borrower Loan Agreement and the revenues
and assets thereunder, which will be assigned to the Funding Lender. The Funding Notes shall recite that the
Funding Notes are issued pursuant to the Housing Act, and that the Funding Notes, including interest and
premium, if any, thereon, is payable solely from the revenues and assets pledged to the payment thereof, and
the Funding Notes shall not constitute a debt of the City within the meaning of any constitutional or statutory
limitations.
5.03The Funding Notes shall be sold to the Funding Lender under the terms and conditions of the Funding
Loan Agreement. The Funding Loan Agreement is hereby approved and the City Officials are hereby
authorized to execute and deliver the Funding Loan Agreement on behalf of the City. All of the provisions of
the Funding Loan Agreement, when executed and delivered as authorized herein, shall be deemed to be a part
of this resolution as fully and to the same extent as if incorporated verbatim herein and shall be in full force
and effect from the date of execution and delivery thereof. The Funding Loan Agreement shall be
substantially in the form now on file with the City with such necessary and appropriate variations, omissions,
and insertions as do not materially change the substance thereof, as the City Officials, in their discretion, shall
determine, and the execution and delivery thereof by the City Officials shall be conclusive evidence of such
determination.
5.04The proceeds derived from the sale of the Funding Notes shall be loaned by the Issuer to the Borrower in
accordance with the terms and conditions of the Borrower Loan Agreement. The Borrower Loan Agreement is
hereby approved and the City Officials are hereby authorized to execute and deliver the Borrower Loan
Agreement on behalf of the City. All of the provisions of the Borrower Loan Agreement, when executed and
delivered as authorized herein, shall be deemed to be a part of this resolution as fully and to the same extent
as if incorporated verbatim herein and shall be in full force and effect from the date of execution and delivery
thereof. The Borrower Loan Agreement shall be substantially in the form now on file with the City with such
necessary and appropriate variations, omissions, and insertions as do not materially change the substance
thereof, as the City Officials, in their discretion, shall determine, and the execution and delivery thereof by the
City Officials shall be conclusive evidence of such determination. The proceeds of the loan to be made under
the terms of the Borrower Loan Agreement are hereby authorized to be applied to the payment of a portion
of the costs of the acquisition, construction, and equipping of the Project and related costs.
5.05The obligations of the Borrower under the Borrower Loan Agreement shall be secured by such mortgages,
assignments of mortgages, security agreements, assignments of rents, guarantees, and other security
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instruments and documents as the Borrower and the Funding Lender shall agree (the "Security Documents ").
The Issuer hereby authorizes and approves the execution and delivery of the Security Documents by the
Borrower to the Funding Lender.
5.06To ensure compliance with certain rental and occupancy restrictions imposed by the Housing Act and
Section 142(d) of the Code, and to ensure compliance with certain restrictions imposed by the Issuer, the City
Officials are also hereby authorized and directed to execute and deliver the Regulatory Agreement. All of the
provisions of the Regulatory Agreement, when executed and delivered as authorized herein, shall be deemed
to be a part of this resolution as fully and to the same extent as if incorporated verbatim herein and shall be in
full force and effect from the date of execution and delivery thereof. The Regulatory Agreement shall be
substantially in the form on file with the Issuer which is hereby approved, with such omissions and insertions
as do not materially change the substance thereof, or as the City Officials, in their discretion, shall determine,
and the execution thereof by the City Officials shall be conclusive evidence of such determination.
5.07The Council authorizes the execution and delivery of the following closing documents relating to the
Funding Notes (collectively, the "Closing Documents "): (i) one or more certificates of the Issuer; (ii) an
Information Return for Tax- Exempt Private Activity Bond Issues, Form 8038; (iii) an endorsement to a tax
certificate of the Borrower relating to arbitrage, rebate, and other tax matters; and (iv) similar documents. All
of the provisions of the Funding Notes, the Funding Loan Agreement, the Borrower Loan Agreement, and the
Regulatory Agreement (collectively, the "Note Financing Documents "), and the Closing Documents, when
executed and delivered as authorized herein, shall be deemed to be a part of this resolution as fully and to the
same extent as if incorporated verbatim herein and shall be in full force and effect from the date of execution
and delivery thereof.
5.08The Issuer hereby authorizes Kennedy & Graven, Chartered, bond counsel to the Issuer ( "Bond Counsel "),
to prepare, execute, and deliver its approving legal opinions with respect to the Funding Notes and related
matters.
5.09 Simultaneously with the execution and delivery of the Note Financing Documents and the Closing
Documents (collectively, the "Issuer Documents "), there shall be delivered to the Issuer the following: (i) an
opinion of counsel to the Borrower as to such matters as shall be required by the Issuer and Bond Counsel; (ii)
one or more opinions of Bond Counsel as may be required by the Issuer, the Funding Lender, counsel to the
Funding Lender, the Borrower, and counsel to the Borrower; and (iii) such other opinions, instruments, and
documents as the Issuer may require as a condition to the issuance of the Funding Notes and the other actions
of the Issuer authorized by this resolution.
Section 6. Additional Findings and Certifications.
6.01The authority to approve, execute, and deliver future amendments to the Note Financing Documents or
other documents executed and delivered by the Issuer in connection with the issuance of the Funding Notes is
hereby delegated to the City Officials and such other officials of the Issuer who execute and deliver the
Funding Notes and related documents whose signature shall appear on the Issuer Documents (the "Issuer
Officials "), subject to the following conditions: (i) such amendments do not materially adversely affect the
interests of the Issuer; (ii) such amendments do not contravene or violate any policy of the Issuer; and (iii)
such amendments are acceptable in form and substance to Bond Counsel. The authorization hereby given
shall be further construed as authorization for the execution and delivery of such certificates and related items
as may be required to demonstrate compliance with the agreements being amended and the terms of this
resolution. The execution of any instrument by the Issuer Officials shall be conclusive evidence of the
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approval of such instruments in accordance with the terms hereof.
6.02 In case an Issuer Official shall cease to be such officer before the delivery of the Issuer Documents, such
signature shall nevertheless be valid and sufficient for all purposes, the same as if such signatory had
remained in office until delivery. In the event of the absence or disability of any Issuer Official, such officers of
the Issuer as, may act on the behalf of such Issuer Official shall, without further act or authorization of the
Issuer, execute and deliver the Issuer Documents.
6.03 The Issuer will not participate in the preparation of any disclosure document relating to the offer and sale
of the Funding Notes (the "Disclosure Documents "), and will make no independent investigation with respect
to the information contained in any Disclosure Documents and the Issuer assumes no responsibility for the
sufficiency, accuracy, or completeness of such information, except for any information contained therein
describing the Issuer, or litigation with respect to the Issuer. The Issuer hereby consents to the distribution of
the Disclosure Documents. The Issuer hereby approves the execution and delivery by the Borrower (and any
guarantor of the obligations of the Borrower) of any continuing disclosure agreement prepared and delivered
for the benefit of the Funding Lender or any successors or assigns.
Section 7. Costs. The Borrower shall pay to the City any and all reasonable costs incurred by the City in
connection with the Obligations or the financing of the Project, whether or not the financing of the Project is
carried to completion, and whether or not the Obligations or operative instruments are executed and
delivered. The Borrower shall also pay to the City the administrative fee of the City, as set forth in the
Borrower Loan Agreement.
Section 8. Bond Counsel Is Empowered to Take All Necessary Actions. The Issuer Officials, Bond Counsel,
other attorneys, engineers, and other agents or employees of the City are hereby authorized to take all acts
and things required of them by or in connection with this resolution, the aforementioned documents, and the
Funding Notes, for the full, punctual, and complete performance of all the terms, covenants, and agreements
contained in the Funding Notes, the aforementioned documents, and this resolution.
Section 10. Effective Date. This resolution shall be in full force and effect from and after its passage.
RESOLUTION 2017 -120
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 Bart Mady (Hereinafter "Owner of Record ").
Whereas, the owner of record is the legal owner of the real property located at 4329 Main 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 November 8, 2017 the City of Columbia Heights responded to a complaint at the address listed
above. Inspection determined that the structure was damaged, open, and unsecured.
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2. That on November 8, 2017 the Fire Chief had his designee order 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 4329 Main Street N.E.
CONCLUSIONS OF COUNCIL
1. That the property located at 4329 Main 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 4329 Main Street N.E. is hereby
approved.
ORDER OF COUNCIL
1. The property located at 4329 Main Street N.E. constitutes a nuisance pursuant to City Code.