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03-26-2018 CCP
Columbia Heights All - America City If 11, 2016 1. CALL TO ORDER /ROLL CALL 2. INVOCATION COLUMBIA HEIGHTS www.columbiaheightsmn.gov AGENDA CITY COUNCIL MEETING CITY HALL - COUNCIL CHAMBERS 590 401h AVE NE MONDAY, March 26, 2018 7:00 PM Invocation provided by Linda McCollough, Community United Methodist Church 3. PLEDGE OF ALLEGIANCE 4. MISSION STATEMENT Mayor Donna Schmitt Counciimembers Robert A. Williams John Murzyn, Jr. Connie Buesgens Nick Novitsky City Manager Walter R. Fehst 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 manner. 5. APPROVAL OF 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 A. Officer Terry Nightingale proclamation pg 4 B. Legislative Update from Senator Carolyn Laine and Representative Mary Kunesh - Podein 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 pg 5 MOTION: Move to approve the minutes of the City Council meeting of March 12, 2018 MOTION: Move to approve the minutes of the City Council Special Work Session of March 12, 2018 B. Accept Board and Commission Meeting Minutes pg 10 MOTION: Move to accept the Library Board minutes from February 7, 2018 C. Consideration of Appointments to various Advisory Commissions pg 12 MOTION: Move to appoint volunteers to serve on various commissions as recommended. City of Columbia Heights Citv Council Aeenda March 26, 2018 Page 2 D. Consideration of a Resolution approving Subordination Agreement related to loans pg 14 made by the City to finance Columbia Court Town Homes. MOTION: Move to waive the reading of Resolution 2018 -14, there being ample copies available to the public. MOTION: Move to approve Resolution 2018 -14, a resolution approving the subordination agreement related to loans made by the City of Columbia Heights to finance the Columbia Court Townhomes. E. Consideration of a Resolution authorizing an amendment to the Fiscal Year 2018 pg 37 Planning & Inspections Fund Budget. MOTION: Move to waive the reading of Resolution 2018 -15, there being ample copies available to the public. MOTION: Move to approve Resolution 2018 -15, a resolution of the City Council for the City of Columbia Heights, Minnesota, authorizing an amendment F. Keyes Park Bid Award: Add Alternate #1 pg 41 MOTION: Accept the bid for Add Alternate #1, McCleod Avenue sidewalk, in the amount of $38,011 for a revised contract award of Keyes Park Improvement Project, City Project No. 1610, to Odesa II LLC of Sauk Rapids, Minnesota in the amount of $490,821.50 with funds for Add Alternate #1 to be appropriated from Fund 430 - 51610; and, furthermore, to authorize the Mayor and City Manager to enter into a contract for the same. G. Consideration of approval of attached list of rental housing applications. pg 42 MOTION: Move to approve the items listed for rental housing license applications for March 26, 2018, in that they have met the requirements of the Property Maintenance Code. H. Approve Business License Applications pg 48 MOTION: Move to approve the items as listed on the business license agenda for March 26, 2018, I. Review of Bills pg 50 MOTION: Move that in accordance with Minnesota Statute 412.271, subd. 8 the City Council has reviewed the enclosed list of claims paid by check and by electronic funds transfer in the amount of $828,279.76. MOTION: Move to approve the Consent Agenda items. 8. PUBLIC HEARINGS pg 62 A. Public Hearing to Consider Revocation of Rental Licenses for 4625 and 4633 Tyler Street NE. MOTION: Motion to table the public hearing to consider the revocation of rental licenses at 4625 and 4633 Tyler Street NE until the City Council meeting of June 11, 2018. 9. ITEMS FOR CONSIDERATION A. Other Ordinances and Resolutions B. Bid Considerations City of Columbia Heights City Council Agenda C. New Business and Reports 10. CITY COUNCIL AND ADMINISTRATIVE REPORTS Report of the City Council Report of the City Manager Report of the City Attorney 11. COMMUNITY FORUM March 26, 2018 Page 3 At this time, individuals may address the City Council about any item not included on the regular agenda. Speakers are requested to come to the podium, sign their name and address on the form for the Council Secretary's record, and limit their comments to five minutes. Individuals are asked to state their name for the record. The City Council will listen to the brief remarks, ask clarifying questions, and if needed, request staff to follow up or direct the matter to be added to an upcoming agenda. Generally, the City Council will not take official action on items raised at the Community Forum at the meeting in which they are raised. 12. ADJOURNMENT Walt Fehst, City Manager Auxiliary aids or other accommodations for disabled persons are available upon request when the request is made at least 48 hours in advance. Please contact the City Clerk at 763 - 706 -3611 or kbrunoPcolumbjph-eight5mn.Rov to make arrangements. PROCLAIMING TUESDAY, MARCH 27, 2018 AS "OFFICER TERRY NIGHTINGALE APPRECIATION DAY" WHEREAS, Officer Terry Nightingale has demonstrated outstanding service, exemplary job performance, and has gone above and beyond in his 33 year career as a Columbia Heights Police Officer. WHEREAS, Officer Nightingale has played a significant role during his career in his many assignments to include Patrol Officer, Field Training Officer, Community Oriented Policing Officer, Investigator, and Community Policing Coordinator. WHEREAS, Officer Nightingale has made significant contribution in the area of community policing which has made a lasting impact in the community and the Columbia Heights Police Department. WHEREAS, Officer Nightingale has established long lasting partnerships with the community he has honorably served for 33 years. WHEREAS, Officer Nightingale has always demonstrated a positive attitude in his service to the citizens of Columbia Heights, and has continuously demonstrated the CHPD Community Policing philosophy through his words and actions as a Columbia Heights Police Officer. WHEREAS, the Columbia Heights City Council wishes to honor Officer Nightingale for his Commitment, Helpfulness, Professionalism, and Dedication to the Columbia Heights community, NOW THEREFORE BE IT RESOLVED, that I, Donna Schmitt, MAYOR, on behalf of the City Council of the City of Columbia Heights and all the citizens of this community, do hereby proclaim Tuesday, March 27, 2018 as: OFFICER TERRY NIGHTINGALE APPRECIATION DAY Mayor Donna Schmitt OFFICIAL PROCEEDINGS CITY OF COLUMBIA HEIGHTS CITY COUNCIL MEETING MARCH 12, 2018 The following are the minutes for the regular meeting of the City Council held at 7:00 PM on Monday March 12, 2018 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 7:06 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 and Katie Bruno; City Clerk /Council Secretary 2. INVOCATION Invocation provided by Linda McCollough, Community United Methodist Church 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 the following two changes to the Agenda: • Addition of 6B. Proclamation for Tibet Day Removal of Item 71-1: Consideration of Appointments to various Advisory Commissions. Motion by Councilmember Novitsky, seconded by Councilmember Murzyn, Jr. to approve the agenda as amended. All Ayes, Motion Carried. 6. PROCLAMATIONS, PRESENTATIONS, RECOGNITION, ANNOUNCEMENTS, GUESTS A. SACA & Columbia Heights Police Department Food Drive Announcement Sergeant Justin Pletcher reported the Columbia Heights Police Department, along with SACA will be participating in a Food Drive and the Family Dollar store located at 4037 Central Ave on Friday March 301h from 10:00 -4:00. B. Proclamation for Tibet Day Mayor Schmitt read the Proclamation in its entirety. 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.) City Council Minutes March 12, 2018 Page 2 of 4 A. Approve Minutes of the City Council MOTION: Move to approve the minutes of the City Council meeting of February 26, 2018 MOTION: Move to approve the minutes of the City Council work session of February 12, 2018 MOTION: Move to approve the minutes of the City Council work session of March 5, 2018 MOTION: Move to approve the minutes of the Special City Council work session of March 5, 2018 B. Accept Board and Commission Meeting Minutes MOTION: Move to accept the Park & Recreation commission minutes from December 13, 2017 C. Change Order No. 2 for the 2017 Sanitary Sewer Lining Program, Project 1704 MOTION: Move to approve contract Change Order No. 2 to Hydro -Klean LLC for the 2017 Sanitary Sewer Lining, Project 1704 in the amount of $43,312.00 with funds to be appropriated from Fund 652- 51704 -5185. D. Resolution adopting the Solid Waste Operations Policy MOTION: Move to waive the reading of Resolution No. 2018 -13, there being ample copies available to the public. MOTION: Move to approve and adopt Resolution No. 2018 -13, being a resolution adopting the Solid Waste Operations Policy for the City of Columbia Heights. E. Authorize the purchase of replacement radios for the Fire Department MOTION: Move to authorize the purchase of radios and accessories in the amount of $81,248.00 from Motorola Solutions per State Contract #119587 and additional accessories from Ancom Communications in the amount of $1225.00. MOTION: Move to authorize the Fire Chief to expend up to $2500.00 for the installation of the radios. F. Approval of Off -Site Gambling Application for Columbia Heights Athletic Boosters to conduct charitable gambling activities at Murzyn Hall, 530 Mill St NE, on June 24, 2018 MOTION: Move to approve the Off -Site Gambling Application for the Columbia Heights Athletic Boosters to conduct a bingo event at Murzyn Hall, 530 Mill Street NE, on June 24, 2018, and to direct the City Manager to sign the Off -Site Gambling Permit Application verifying the City's approval. G. Approve Business License Applications MOTION: Move to approve the items as listed on the business license agenda for March 12, 2018. H. Consideration of Appointments to various Advisory Commissions *Removed I. Review of Bills MOTION: Move that in accordance with Minnesota Statute 412.271, subd. 8 the City Council has reviewed the enclosed list of claims paid by check and by electronic funds transfer in the amount of $739,293.93. Motion by Councilmember Buesgens, seconded by Councilmember Williams to approve the Consent Agenda items as amended. All Ayes, Motion carried. S. PUBLIC HEARINGS City Council Minutes March 12, 2018 Page 3 of 4 9. ITEMS FOR CONSIDERATION A. Other Ordinances and Resolutions B. Bid Considerations a. Accept Bids and Award a Contract for the Keyes Park Improvements, Project No. 1610 Kevin Hansen, Public Works Director reported the City Council accepted the Master Plan for Keyes Park and authorized the preparation of plans. Plans and specifications were advertised for bids in August, LU11. Two bids were received; both came in above the engineer's estimate. Plans and specifications were modified and again, advertised for bids. Nine bids were received ranging from $409,575 to $646,562. Based upon the low bid from Odesa II, LLC staff is recommending contract award of the base bid with following alternates; Bleachers (2) $3,000 Players Benches (4) $3,200 Park Benches (3) $3,300 Trash / Recycling Receptacles $3,600 Bicycle Rack (1) $500 Parking Lot on 45th Avenue $29,635 As an item that had been talked about during the public meetings, the Council may wish to consider adding alternate 1 which provides a sidewalk along 45th Avenue from the park and then along the back of the curb down to 44th Avenue. Hansen indicated a short-term option to the sidewalk could be striping a non - parking lane along the shoulder of the road until funding is available. Mayor Schmitt commented that walkability is important in Columbia Heights, and indicated she would like to see a sidewalk connecting 44th Ave to the park. Hansen stated if Council chooses to add a sidewalk, he could bring that to a future meeting along with funding options. Mayor Schmitt questioned if there are grants available through Blue Cross or Allina. Councilmember Buesgens asked how the proposed pricing compares the city's miscellaneous concrete pricing. Hansen stated the proposed pricing is very good, comparable to what the city would pay. Motion by Councilmember Buesgens, seconded by Councilmember Williams to accept bids and award the Keyes Park Improvement Project, City Project No. 1610, including Alternates 3 -7 and 10 to Odesa II LLC of Sauk Rapids, Minnesota based upon their low, qualified, responsible bid in the amount of $452,810.50 with funds to be appropriated from Fund 412 -51610 and Fund 652 - 51610; and, furthermore, to authorize the Mayor and City Manager to enter into a contract for the same. All Ayes, Motion Carried C. New Business and Reports 10. CITY COUNCIL AND ADMINISTRATIVE REPORTS Councilmember Buesgens attended the Heights Event Center Grand Opening, the Performing Art Showcase and Dinner at the High School, the HeightsNEXT adopt a drain pilot program meeting, and the St Louis Park Environmental Sustainability Commission meeting. Residents were encouraged to participate in the organic recycling program. Councilmember Murzyn, Jr. attended the Columbia Heights Royalty Waffle Breakfast, and reported there was a great turnout. City Council Minutes March 12, 2018 Page 4 of 4 Councilmember Novitsky read to children at Community Grounds, as part of the birthday celebration for Dr. Seuss. Mayor Schmitt also read to children at Community Grounds. The Legends of Columbia Heights Ribbon Cutting /Grand Opening will be on March 21St at 3:00 PM. The Youth Art Month reception will be on March 22nd at Community Grounds at 6:30 PM. An Annual St Patrick's Day celebration will take place at the American Legion on Saturday March 17th from 11 -2. City. Manager Walt Fehst announced Bridgeview will hold their annual Chili cook -off on March 22nd from 5:00 8:00 PM. Manager Fehst announced Officer Terry Nightingale will be retiring the end of the month after 33 years of dedicated service. Council will recognize Officer Nightingale at the March 26th City Council meeting, a reception will take place on March 27tH 11. CITIZENS FORUM 12. ADJOURNMENT Motion by Councilmember Murzyn, Jr., seconded by Councilmember Novitsky to adjourn. All Ayes, Motion carried, Motion Carried. Meeting adjourned at 7:48 p.m. Respectively Submitted, Katie Bruno, Council Secretary /City Clerk RESOLUTION 2018 -13 A resolution of the City Council for the City of Columbia Heights, Minnesota, WHEREAS, a Solid Waste Operations Policy has been developed and recommended by City staff; and WHEREAS, adoption of said policy has been determined to be in the best interest of the City of Columbia Heights, WHEREAS, the Solid Waste Operations Policy establishes goals, policy plans, and City procedures for garbage, single -sort recycling, recycling center, problem materials, reuse, yard waste and organics recycling operations in the City of Columbia Heights. 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 Council hereby approves and adopts a Solid Waste Operations Policy for the City of Columbia Heights Meeting of: COLUMBIA HEIGHTS CITY COUNCIL Date of Meeting: March 12, 2018 Time of Meeting: 6:00 PM Location of Meeting: Conference Room #1 Purpose of Meeting: Interview of Candidates for Vacancy on City Commissions CALL TO ORDER /ROLL CALL - The meeting was called to order at 6:00 PM Present: Mayor Schmitt, Councilmembers Williams, Novitsky, Buesgens and Murzyn Jr. (arrived at 6:11 PM) The following questions were asked of each of the candidates: 1. What Boards or Commissions would you choose to participate on? 2. Why do you want to be on a Board or Commission? 3. What skills, expertise, training, or interest do you possess that would be beneficial to our Community? 4. Conflict Of Interest, which is defined as: Do you own any real property or business located in Columbia Heights in which you have a legal or equitable interest and could be construed as a conflict of interest? The following three Candidates were interviewed: Eric Penniston Eric Sahnow Kevin Bumgardner The council discussed the applicants, and agreed to make the official appointments at the March 26th City Council meeting. Meeting Adjourned at 6:53 PM Respectively Submitted, Katie Bruno, Council Secretary /City Clerk 9 COLUMBIA HEIGHTS PUBLIC LIBRARY Approved 3939 Central Ave NE, Columbia Heights, MN 55421 3/21/2018 BOARD OF TRUSTEES: MEETING MINUTES Wednesday, February 7th, 2018 The meeting was called to order in the History Room by Chair, Patricia Sowada, at 5:30pm. Members present: Patricia Sowada, Catherine Vesley, Stephen Smith, Tricia Conway; as well as Library Director, Renee Dougherty; Recording Secretary, Nick Olberding. Not present: Nancy Hoium, and Robert "Bobby" Williams. • The Minutes of the January 10th, 2018 Board Meeting were approved. • Bill List dated January 17th, 2018 was reviewed. It was moved, seconded, and passed that the bills be paid. • Bill List dated January 31St, 2018 was reviewed. It was moved, seconded, and passed that the bills be paid. • Year -end Accounting Sheet was not yet available for review. • Questions and discussions based on Bills and Accounting: • Gas Mileage: Joked about "Where is everyone going "? Mainly trips to City Hall, off -site meetings /training at various ACL sites, Community Outreach Events, and Homebound Patron book deliveries. • Petty Cash: Finance requires us to balance the petty cash at the end of the year. We were short $0.69 this year. • Budget: Tax revenue not yet applied to budget, so final numbers are not yet available. • Pylon Sign: On the agenda for the February 121h City Council Meeting. • Will be reviewing installation bids by contractors, one of which is priced at $19,000. • Sign will be located safely back from Central Avenue in the tree planting bed between CHPL and Columbia Heights Rental. o Catherine will attend the Council meeting; in case a Library voice is needed. Old Business: Applications for the Public Library Art Committee: After extending the submission period another month, still three applications ... Lindsay Edwards, Denelle Bing, and Walter Horishnyk. o The Board would like to reach out to current applicants to invite them to an informal round -table (tentatively scheduled for 6pm on March 21St in the History Room) to openly discuss the committee expectations, goals, and possible tasks related to the CHPL 90th Anniversary. Meeting will include a tour of the available exhibit space in the library, and introductions from the applicants. Refreshments will be provided. • To abide by Open Meeting rules Catherine and Renee will compile an agenda to release to the Public. • Kathy Super (Friends of the Library President) will represent the Friends on the Committee. • Committee membership will be decided in April. New Business: • CHPL 901h Anniversary Planning: Official date is December 3, 2018. o Suggested Theme: Red Wagons (in honor of the library's creation) ■ Themed cake, cookies, ornaments, crafts, and parade float o Events: ■ Jamboree Parade: Friday, June 22nd Truck/Trailer provided by either Bobby Williams or Jane Polley (depending on size) Decorated to look like a red wagon (with oversized books and a giant "90 ") 10 • Floaters dressed as storybook characters, and maybe a small loud orchestra • Walkers alongside passing out bookmarks displaying the schedule of anniversary events • Photo Contest: Suggested by Margo Ashmore from the Northeaster Newspaper It Request to have best submissions printed as postcards, etc. • Historical Presentation: possible contributors ... M. Rebecca Loader, Barb Miller, Dave Larson, Bruce Nawrocki, Gail Olson, and the Anoka County Historical Society ■ Memorabilia and historical photos on display in the Community Room ■ Open House: Saturday, December 1" o Miscellaneous: Additional thoughts and possibilities to explore. ■ Book Display relevant to the year 1928. ■ Anniversary Banner on front of building. ■ Book Tree for the holiday season, with handmade ornaments (from a Craft Activity). ■ Painting of the new library by Catherine Vesley ■ Commissioning a sequel to Bootstrap Town with the help of the Foundation o Set some planning deadlines at the March Board Meeting ■ items from the Floor: N/A There being no further business, the meeting was adjourned at 6:22pm by Patricia Sowada, and seconded. Respectfully submitted, 4 Nicholas P. Olberding Recording Secretary, Library Board of Trustees *Mission Statement* To serve a diverse community's needs for access to resources, information, and technology in a welcoming environment. 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. 11 COLUMBIA HEIGHTS AGENDA SECTION CONSENT ITEM NO. 7C MEETING DATE MARCH 26, 2018 CITY OF COLUMBIA HEIGHTS - COUNCIL LETTER ITEM: Consideration of Appointments to Advisory Commissions 5 years DEPARTMENT: Administration CITY MANAGER'S APPROVAL: 2 years BY /DATE: Katie Bruno / December 27, 2017 J 5 years CITY STRATEGY: #8: Engaged, Multi- Generational Population 4 -1 -2020 Additional Strategy? #5: Diverse, Welcoming "Small- Town" Feel SHORT TERM GOAL (IF APPLICABLE): #7 Develop and Implement Strategies to Support Volunteerism Within the Community Additional Goal? N/A BACKGROUND: The City has eight commissioners on various commissions with terms expiring in April 2018. All eight commissioners have expressed interest in continuing to serve. In addition the City Council adopted Ordinance 1645 on February 12, 2018. This ordinance changes some of the operational bylaws of the Planning & Zoning commission; including increasing Commission membership from five to seven members, and formally changing the name of the commission to the Planning Commission. The City advertised for the openings, and received applications from seven residents. Interviews were held at Special Work Sessions on March 5tH and March 12tH RECOMMENDATION: It is recommended that the council make the following appointments. Reappointment of Commissioners with expiring terms: Traffic Commission Term Expires Term Length Ed Carlson 4 -1 -2022 4 years Library Board Tricia Conway 4 -1 -2021 3 years Catherine Vesley 4 -1 -2021 3 years Park & Recreation Commission Sean Clerkin 4 -1 -2023 5 years David Payne 4 -1 -2020 2 years Ann Carder 4 -1 -2023 5 years Kevin McDonald 4 -1 -2020 2 years 12 City of Columbia Heights - Council Letter Planning Commission Rob Fiorendino 4 -1 -2022 New Appointment of Commissioners: Planning Commission Term Expires Thomas Kaiser 4 -1 -2022 Eric Sahnow 4 -1 -2022 Traffic Commission Term Expires Joe Schluender 4 -1 -2019 4 years Term Length 4 years 4 years Term Length (completion of vacated 4 year term) RECOMMENDED MOTION(S): MOTION: Move to appoint volunteers to serve on various commissions as recommended. 13 Page 2 CH COLUMBIA HEIGHTS FAENDA SECTION CONSENT ITEM NO. 7D MEETING DATE MARCH 26, 2018 CITY OF COLUMBIA HEIGHTS - COUNCIL LETTER ITEM: Approval Consideration of a Subordination Agreement for the Columbia Court Townhomes DEPARTMENT: Community Development CITY MANAGER'S APPROVAL: BY /DATE: Keith Dahl, March 21, 2018 BY /DATE: CITY STRATEGY: #3: Affordability Additional Strategy? #6: Excellent Housing/Neighborhoods SHORT TERM GOAL (IF APPLICABLE): N/A Additional Goal? N/A BACKGROUND: In 2001, the City of Columbia Heights (the "City ") and the Columbia Heights Economic Development Authority (the "EDA ") entered into a Development Agreement with Columbia Heights Transition Block LLC (the "Developer ") for the construction of the Columbia Court Townhomes located at 853 41st Avenue NE, Columbia Heights, MN (the "Project "). In accordance with the Development Agreement, the Developer applied, and subsequently obtained additional financing for the Project through the Metropolitan Council's Livable Communities Act (the "LCA ") Fund in the amount of $100,000 and the U.S Department of Housing and Urban Development's Community Development Block Grant (the "CDBG ") Program in the amount of $231,000. Both of the above referenced financing sources were setup for the City to act as the fiscal agent. Therefore, the City received the funds for the additional financing as a grant from the respective governmental agency, and provided them to the Developer in the form of a loan as detailed in the LCA Loan Agreement and CDBG Loan Agreement, dated March 23, 2001 (Collectively referred to as the "Loan Agreements "). Furthermore, it should be noted that the LCA and CDBG loans were previously approved on a subordinate basis to the original mortgage issued for the Project. Currently, the Developer is in the process of refinancing the original mortgage used to finance the Project. Therefore, on February 1, 2018, the Developer requested that the City consider the re- subordination of the LCA and CDBG loan as previously approved in 2001. Attached for review and consideration is the Subordination Agreement of the LCA and CDBG loans for the Developer to obtain a refinanced mortgage through NorthMarq Capital, LLC. If approved, the Subordination Agreement does not change or alter the Loan Agreements in any way. Thus, the City may still expect full repayment of the LCA and CEBG loans on the maturity date of April 1, 2031. Sofia Lykke with Kennedy & Graven and a representative for the Developer will be present to address any questions or concerns City Council members have in regards to the Loan Agreements, Subordination Agreement, or the refinanced mortgage itself. STAFF RECOMMENDATION: Staff recommends approval of Resolution 2018 -14 as presented. 14 City of Columbia Heights - Council Letter Page 2 RECOMMENDED MOTION(S): Motion: Move to waive the reading of Resolution 2018 -14, there being ample copies available to the public. Motion: Move to approve Resolution 2018 -14, a resolution approving the subordination agreement related to loans made by the City of Columbia Heights to finance the Columbia Court Townhomes. ATTACHMENTS: 1. Resolution 2018 -14 (2 Pages) 2. Subordination Agreement (19 Pages) 15 CITY OF COLUMBIA HEIGHTS, MINNESOTA RESOLUTION NO. 2018-14 RESOLUTION APPROVING SUBORDINATION AGREEMENT RELATED TO LOANS MADE BY THE CITY TO FINANCE COLUMBIA COURT TOWN HOMES WHEREAS, Columbia Heights Transition Block LLC, a Minnesota limited liability company (the "Developer "), the Columbia Heights Economic Development Authority (the "Authority "), and the City of Columbia Heights, Minnesota (the "City ") are parties to a Preliminary Development Agreement, dated October 19, 2000 (the "Original Contract "); and WHEREAS, the Original Contract contemplated that the Developer would transfer fee ownership of a parcel of land in the City (the "Land ") to Columbia Heights Housing Limited Partnership I, a Minnesota limited partnership (the "Borrower "), and that the Borrower would enter into a Definitive Development Agreement (as defined in the Original Contract) for the development and construction of a 22- unit affordable rental complex (the "Project ") on the Land; and WHEREAS, the Developer and the Authority entered into that certain Contract for Private Development, dated March 23, 2001 (the "Contract "), which Contract is the Definitive Development Agreement contemplated by the Original Contract, pursuant to which the Developer agreed to develop and construct the Project on the Land and the Authority agreed to provide public assistance to the Developer in connection with the Project; and WHEREAS, the Developer conveyed the Land to the Borrower, and thereafter the Borrower developed and constructed the Project; and WHEREAS, in accordance with the Contract, the Developer obtained additional financing, including a mortgage and other forms of financing, sufficient to complete the construction of the Project and certain financing documents were delivered to the Developer, including but not limited to the LCA Loan Agreement and the CDBG Loan Agreement (each as hereafter defined); and WHEREAS, pursuant to a grant agreement between the Metropolitan Council and the City, the City received from the Metropolitan Council certain grant funds created under Minnesota Statutes, Section 473.251, as amended (the "Metropolitan Livable Communities Fund "), intended in part to facilitate development of the Project; and WHEREAS, from the grant funds provided by the Metropolitan Council, the City provided a loan of $100,000 (the "LCA Loan ") to the Borrower pursuant to a Loan Agreement (Livable Community Act Funds), dated March 23, 2001 (the "LCA Loan Agreement"), between the Borrower and the City, in order to provide additional financing for the Project; and WHEREAS, to evidence the LCA Loan, the Borrower issued its promissory note to the City, dated March 23, 2001 (the "LCA Note "); and WHEREAS, from the grant funds provided by the United States Department of Housing and Urban Development Community Block Grant Program, the City provided a loan of $231,000 (the "CDB Loan") to the Borrower pursuant to a Loan Agreement (Community Development Block Grant Funds), dated March 23, 2001 (the "CDB Loan Agreement "), between the Borrower and the City, in order to provide additional 517718v1 SEL CL205 -3 1 16 financing for the Project; and WHEREAS, to evidence the CDB Loan, the Borrower issued its promissory note to the City, dated March 23, 2001 (the "CDB Note "); and WHEREAS, the Borrower is in the process of refinancing the debt incurred to finance the construction of the Project whereby the Federal Home Loan Mortgage Corporation, a shareholder -owned government sponsored enterprise ( "Freddie Mac ") has committed, subject to certain conditions, to facilitate the financing of the Project by purchasing a loan made by NorthMarq Capital, LLC (the "Lender ") to the Borrower in the approximate amount of $1,825,000 to refinance the Project; and WHEREAS, in conjunction with the refinancing of its debt related to the Project, the Borrower has requested that the interests of the City in the LCA Loan Agreement and LCA Note and the CDB Loan Agreement and CDB Note be subordinated to the Lender's interests with respect to the refinancing debt; and WHEREAS, there has been presented before the City Council a form of Subordination Agreement — Governmental Entity (the "Subordination Agreement "), between the Lender and the City; and WHEREAS, the City Council has reviewed the Subordination Agreement and finds that the execution of the same are in the best interest of the City and of its residents. NOW, THEREFORE, be it resolved by the City Council of the City of Columbia Heights as follows: 1. The Subordination Agreement, as presented to the City, is hereby approved in all respects for execution by the City, subject to modifications that do not alter the substance of the transaction and that are approved by the Mayor and City Manager of the City, provided that execution of such documents by such officials shall be conclusive evidence of their approval. 2. The Mayor and City Manager of the City are hereby authorized to execute and deliver any and all documents deemed necessary to carry out the intentions of this resolution. This resolution shall take effect and be in full force from and after its approval. Approved by the City Council of the City of Columbia Heights, Minnesota, this 26th day of March, 2018. Mayor Attest: City Clerk 517718A SEL CL205 -3 2 17 Freddie Mac Loan Number: Property Name: SUBORDINATION AGREEMENT GOVERNMENTAL ENTITY (Revised 1 -29 -2018) THIS SUBORDINATION AGREEMENT ( "Agreement ") is entered into this day of April, 2018, by and between (i) NorthMarq Capital, LLC a limited liability company organized and existing under the laws of the [State] [Commonwealth] of _ ( "Senior Mortgagee ") and (ii) City of Columbia Heights, Minnesota, a home rule city, municipal corporation, and political subdivision duly organized and existing under its Charter and the Constitution and laws of the State of Minnesota ( "Subordinate Mortgagee "). RECITALS A. Columbia Heights Housing Limited Partnership I, a Minnesota limited partnership ( "Borrower ") is the owner of certain land located in Anoka County, Minnesota, described in Exhibit A ( "Land "). The Land is improved with a multifamily rental housing project ( "Improvements "). B. Senior Mortgagee has made or is making a loan to Borrower in the original principal amount of $ 1,825,000 ( "Senior Loan ") upon the terms and conditions of a Multifamily Loan and Security Agreement dated as of April , 2018 between Senior Mortgagee and Borrower ( "Senior Loan Agreement ") in connection with the Mortgaged Property. The Senior Loan is secured by a Multifamily Mortgage, Assignment of Rents, Security Agreement and Fixture Financing Statement — Minnesota dated as of April _, 2018 ( "Senior Mortgage ") encumbering the Land, the Improvements and related personal and other property described and defined in the Senior Mortgage as the "Mortgaged Property." C. Pursuant to a Loan Agreement (Livable Community Act Funds), dated March 23, 2001, between Subordinate Mortgagee and Borrower, and a Loan Agreement (Community Development Block Grant Funds), dated March 23, 2001, between Subordinate Mortgagee and Borrower (collectively, the "Subordinate Loan Agreement "), Subordinate Mortgagee has made or is making loans to Borrower in the original principal amount of $100,000 and $231,000, respectively (collectively, the "Subordinate Loan "). D. The Senior Mortgage will be recorded in the office of Anoka County Property Records and Taxation ( "Recording Office ") at County Government Center, 2100 3rd Ave., Anoka, Minnesota 55303. Subordination Agreement — Governmental Entity 517717v1 SEL CL205 -3 18 E. The execution and delivery of this Agreement is a condition of Senior Mortgagee's making of the Senior Loan. AGREEMENT NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of which are acknowledged, the parties agree as follows: 1. Definitions. The following terms, when used in this Agreement (including, as appropriate, when used in the above recitals), will have the following meanings. (a) The terms "Condemnation," "Imposition Deposits," "Impositions," "Leases," "Rents" and "Restoration," as well as any term used in this Agreement and not otherwise defined in this Agreement, will have the meanings given to those terms in the Senior Loan Agreement. (b) "Bankruptcy Proceeding" means any bankruptcy, reorganization, insolvency, composition, restructuring, dissolution, liquidation, receivership, assignment for the benefit of creditors, or custodianship action or proceeding under any federal or state law with respect to Borrower, any guarantor of any of the Senior Indebtedness, any of their respective properties, or any of their respective partners, members, officers, directors, or shareholders. (c) "Borrower" means all persons or entities identified as "Borrower" in the first Recital of this Agreement, together with their successors and assigns, and any other person or entity who acquires title to the Mortgaged Property after the date of this Agreement; provided that the term "Borrower" will not include Senior Mortgagee if Senior Mortgagee acquires title to the Mortgaged Property. (d) "Casualty" means the occurrence of damage to or loss of all or any portion of the Mortgaged Property by fire or other casualty. (e) "Enforcement Action" means any of the following actions taken by or at the direction of Subordinate Mortgagee: the acceleration of all or any part of the Subordinate Indebtedness, the advertising of or commencement of any foreclosure or trustee's sale proceedings, the exercise of any power of sale, the acceptance of a deed or assignment in lieu of foreclosure or sale, the collecting of Rents, the obtaining of or seeking of the appointment of a receiver, the seeking of default interest, the taking of possession or control of any of the Mortgaged Property, the commencement of any suit or other legal, administrative, or arbitration proceeding based upon the Subordinate Note or any other of the Subordinate Loan Documents, the exercising of any banker's lien or rights of set -off or recoupment, or the exercise of any other remedial action against Borrower, any other party liable for any of the Subordinate Indebtedness or obligated under any of the Subordinate Loan Documents, or the Mortgaged Property. Subordination Agreement — Governmental Entity Page 2 517717v1 SEL CL205 -3 19 (f) "Enforcement Action Notice" means a written notice from Subordinate Mortgagee to Senior Mortgagee, given following one or more Subordinate Mortgage Default(s) and the expiration of any notice or cure periods provided for such Subordinate Mortgage Default(s) in the Subordinate Loan Documents, setting forth in reasonable detail the Subordinate Mortgage Default(s) and the Enforcement Actions proposed to be taken by Subordinate Mortgagee. (g) "Loss Proceeds" means all monies received or to be received under any insurance policy, from any condemning authority, or from any other source, as a result of any Condemnation or Casualty. (h) "Notice" is defined in Section 7(e). (i) [Reserved] (j) "Senior Indebtedness" means the "Indebtedness" as defined in the Senior Loan Agreement. (k) "Senior Loan Documents" means the "Loan Documents" as defined in the Senior Loan Agreement. (1) "Senior Mortgage Default" means any act, failure to act, event, condition, or occurrence which constitutes, or which with the giving of Notice or the passage of time, or both, would constitute, an "Event of Default" as defined in the Senior Loan Agreement. (m) "Senior Mortgagee" means the "Lender" as defined in the Senior Mortgage. When any other person or entity becomes the legal holder of the Senior Note, such other person or entity will automatically become Senior Mortgagee. (n) "Senior Note" means the promissory note or other evidence of the Senior Indebtedness referred to in the Senior Loan Agreement and any replacement of the Senior Note. (o) "Subordinate Indebtedness" means all sums evidenced or secured or guaranteed by, or otherwise due and payable to Subordinate Mortgagee pursuant to, the Subordinate Loan Documents. (p) "Subordinate Loan Documents" means the Subordinate Note, the Subordinate Loan Agreement, and all other documents at any time evidencing, securing, guaranteeing, or otherwise delivered in connection with the Subordinate Indebtedness, as the same may be amended. (q) "Subordinate Mortgage Default" means any act, failure to act, event, condition, or occurrence which allows (but for any contrary provision of this Agreement), or which with the giving of Notice or the passage of time, or both, would allow (but Subordination Agreement —Governmental Entity Page 3 517717v1 SELCL205 -3 20 for any contrary provision of this Agreement), Subordinate Mortgagee to take an Enforcement Action. (r) "Subordinate Mortgagee" means the person or entity named as such in the first paragraph of this Agreement and any other person or entity who becomes the legal holder of the Subordinate Note after the date of this Agreement. (s) "Subordinate Note" means, collectively, the promissory notes or other evidence of the Subordinate Indebtedness, including in particular, the Promissory Note, in the amount of $231,000, dated March 23, 2001, and the Promissory Note, in the amount of $100,000, from the Borrower to the Subordinate Mortgagee, each of which evidence the Subordinate Loan. [PROVISION FOR SOFT DEBT] (t) "Surplus Cash" means, with respect to any period, any revenues of Borrower remaining after paying, or setting aside funds for paying, all of the following: (i) All sums due or currently required to be paid under the Senior Loan Documents, including any Imposition Deposits. (ii) All deposits to any replacement reserve, completion/repair reserve or other reserve or escrow required by the Senior Loan Documents that are due or currently payable. (iii) All reasonable operating expenses of the Mortgaged Property, including real estate taxes, insurance premiums, utilities, building maintenance, painting and repairs, management fees, payroll, administrative expenses, legal expenses and audit expenses (excluding any developer fees payable with respect to the Mortgaged Property). 2. Subordination of Subordinate Indebtedness. (a) The Subordinate Indebtedness is and will at all times continue to be subject and subordinate in right of payment to the prior payment in full of the Senior Indebtedness. (b) Until the occurrence of a Senior Mortgage Default, Subordinate Mortgagee will be entitled to retain for its own account all payments made on account of the principal of and interest on the Subordinate Indebtedness in accordance with the requirements of the Subordinate Loan Documents; provided no such payment is made more than 10 days in advance of its due date [PROVISION FOR SOFT DEBT: and provided further that no such payment exceeds 75% of then available Surplus Cash]. However, immediately upon Subordinate Mortgagee's receipt of Notice or actual knowledge of a Senior Mortgage Default, Subordinate Mortgagee will not accept any payments on account of the Subordinate Indebtedness, and the Subordination Agreement — Governmental Entity Page 4 517717v1 SEL CL205 -3 21 provisions of Section 2(c) of this Agreement will apply. Subordinate Mortgagee acknowledges that a Subordinate Mortgage Default constitutes a Senior Mortgage Default. Accordingly, upon the occurrence of a Subordinate Mortgage Default, Subordinate Mortgagee will be deemed to have actual knowledge of a Senior Mortgage ' Default. (c) If (i) Subordinate Mortgagee receives any payment, property, or asset of any kind or in any form on account of the Subordinate Indebtedness (including any proceeds from any Enforcement Action) after a Senior Mortgage Default of which Subordinate Mortgagee has actual knowledge (or is deemed to have actual knowledge as provided in 2(b) above) or has been given Notice, or (ii) Subordinate Mortgagee receives, voluntarily or involuntarily, by operation of law or otherwise, any payment, property, or asset in or in connection with any Bankruptcy Proceeding, such payment, property, or asset will be received and held in trust for Senior Mortgagee. Subordinate Mortgagee will promptly remit, in kind and properly endorsed as necessary, all such payments, properties, and assets to Senior Mortgagee. Senior Mortgagee will apply any payment, asset, or property so received from Subordinate Mortgagee to the Senior Indebtedness in such order, amount (with respect to any asset or property other than immediately available funds), and manner as Senior Mortgagee determines in its sole and absolute discretion. (d) Without limiting the complete subordination of the Subordinate Indebtedness to the payment in full of the Senior Indebtedness, in any Bankruptcy Proceeding, upon any payment or distribution (whether in cash, property, securities, or otherwise) to creditors (i) the Senior Indebtedness will first be paid in full in cash before Subordinate Mortgagee will be entitled to receive any payment or other distribution on account of or in respect of the Subordinate Indebtedness, and (ii) until all of the Senior Indebtedness is paid in full in cash, any payment or distribution to which Subordinate Mortgagee would be entitled but for this Agreement (whether in cash, property, or other assets) will be made to Senior Mortgagee. (e) The subordination of the Subordinate Indebtedness will continue if any payment under the Senior Loan Documents (whether by or on behalf of Borrower, as proceeds of security or enforcement of any right of set -off or otherwise) is for any reason repaid or returned to Borrower or its insolvent estate, or avoided, set aside or required to be paid to Borrower, a trustee, receiver or other similar party under any bankruptcy, insolvency, receivership or similar law. In such event, any or all of the Senior Indebtedness originally intended to be satisfied will be deemed to be reinstated and outstanding to the extent of any repayment, return, or other action, as if such payment on account of the Senior Indebtedness had not been made. [PROVISION FOR SOFT DEBT] Subordination Agreement — Governmental Entity Page 5 517717v1 SEL CL205 -3 22 (f) In addition to the limitations set forth above, Subordinate Mortgagee agrees that the Subordinate Indebtedness will be payable solely from not more than 75% of Surplus Cash while the Senior Indebtedness remains outstanding. 3. Subordination of Subordinate Loan Documents. (a) Each of the Subordinate Loan Documents is, and will at all times remain, subject and subordinate in all respects to the liens, terms, covenants, conditions, operations, and effects of each of the Senior Loan Documents. (b) The subordination of the Subordinate Loan Documents and of the Subordinate Indebtedness will apply and continue notwithstanding (i) the actual date and time of execution, delivery, recording, filing or perfection of each of the Senior Loan Documents and of each of the Subordinate Loan Documents, and (ii) the availability of any collateral to Senior Mortgagee, including the availability of any collateral other than the Mortgaged Property. (c) By reason of, and without in any way limiting, the full subordination of the Subordinate Indebtedness and the Subordinate Loan Documents provided for in this Agreement, all rights and claims of Subordinate Mortgagee under the Subordinate Loan Documents in or to all or any portion of the Mortgaged Property are expressly subject and subordinate in all respects to the rights and claims of Senior Mortgagee under the Senior Loan Documents in or to the Mortgaged Property. (d) If Subordinate Mortgagee, by indemnification, subrogation or otherwise, acquires any lien, estate, right or other interest in any of the Mortgaged Property, then that lien, estate, right or other interest will be fully subject and subordinate to the receipt by Senior Mortgagee of payment in full of the Senior Indebtedness, and to the Senior Loan Documents, to the same extent as the Subordinate Indebtedness and the Subordinate Loan Documents are subordinate pursuant to this Agreement. 4. Additional Representations and Covenants. (a) Subordinate Mortgagee represents and warrants that each of the following is true: (i) Subordinate Mortgagee is now the owner and holder of the Subordinate Loan Documents. (ii) The Subordinate Loan Documents are now in full force and effect. (iii) The Subordinate Loan Documents have not been modified or amended. (iv) No Subordinate Mortgage Default has occurred. Subordination Agreement — Governmental Entity Page 6 517717v1 SEL CL205 -3 23 (v) The current unpaid principal balance of the Subordinate Indebtedness is $331,000. (vi) No scheduled monthly payments under the Subordinate Note have been or will be prepaid. (vii) None of the rights of Subordinate Mortgagee under any of the Subordinate Loan Documents are subject to the rights of any third parties, by way of subrogation, indemnification or otherwise. (b) Without the prior written consent of Senior Mortgagee in each instance, Subordinate Mortgagee will not do any of the following: (i) Amend, modify, waive, extend, renew, or replace any provision of any of the Subordinate Loan Documents. (ii) Pledge, assign, transfer, convey, or sell any interest in the Subordinate Indebtedness or any of the Subordinate Loan Documents. (iii) Accept any payment on account of the Subordinate Indebtedness other than a regularly scheduled payment of interest or principal and interest made not earlier than 10 days prior to its due date, or as expressly authorized in Section 4(i) below [IF SOFT DEBT: and not in excess of 75% of then available Surplus Cash]. (iv) Take any action which has the effect of increasing the Subordinate Indebtedness. (v) Appear in, defend or bring any action to protect Subordinate Mortgagee's interest in the Mortgaged Property. (vi) Take any action concerning environmental matters affecting the Mortgaged Property. (c) Subordinate Mortgagee will deliver to Senior Mortgagee a copy of each Notice received or delivered by Subordinate Mortgagee pursuant to the Subordinate Loan Documents or in connection with the Subordinate Indebtedness, simultaneously with Subordinate Mortgagee's delivery or receipt of such Notice. Senior Mortgagee will deliver to Subordinate Mortgagee in the manner required in Section 5(b) a copy of each Notice of a Senior Mortgage Default delivered to Borrower by Senior Mortgagee. Neither giving nor failing to give a Notice to Senior Mortgagee or Subordinate Mortgagee pursuant to this Section 4(c) will affect the validity of any Notice given by Senior Mortgagee or Subordinate Mortgagee to Borrower, as between Borrower and such of Senior Mortgagee or Subordinate Mortgagee as provided the Notice to Borrower. Subordination Agreement — Governmental Entity Page 7 517717v1 SELCL205 -3 24 (d) Without the prior written consent of Senior Mortgagee in each instance, Subordinate Mortgagee will not commence, or join with any other creditor in commencing, any Bankruptcy Proceeding. In the event of a Bankruptcy Proceeding, Subordinate Mortgagee will not vote affirmatively in favor of any plan of reorganization or liquidation unless Senior Mortgagee has also voted affirmatively in favor of such plan. In the event of any Bankruptcy Proceeding, Subordinate Mortgagee will not contest the continued accrual of interest on the Senior Indebtedness, in accordance with and at the rates specified in the Senior Loan Documents, both for periods before and for periods after the commencement of such Bankruptcy Proceedings. (e) Whenever the Subordinate Loan Documents give Subordinate Mortgagee approval or consent rights with respect to any matter, and a right of approval or consent with regard to the same or substantially the same matter is also granted to Senior Mortgagee pursuant to the Senior Loan Documents or otherwise, Senior Mortgagee's approval or consent or failure to approve or consent, as the case may be, will be binding on Subordinate Mortgagee. None of the other provisions of this Section 4 are intended to be in any way in limitation of the provisions of this Section 4(e). (f) All requirements pertaining to insurance under the Subordinate Loan Documents (including requirements relating to amounts and types of coverages, deductibles and special endorsements) will be deemed satisfied if Borrower complies with the insurance requirements under the Senior Loan Documents and of Senior Mortgagee. All original policies of insurance required pursuant to the Senior Loan Documents will be held by Senior Mortgagee. Nothing in this Section 4(f) will preclude Subordinate Mortgagee from requiring that it be named as a mortgagee and loss payee, as its interest may appear, under all policies of property damage insurance maintained by Borrower with respect to the Mortgaged Property, provided such action does not affect the priority of payment of Loss Proceeds, or that Subordinate Mortgagee be named as an additional insured under all policies of liability insurance maintained by Borrower with respect to the Mortgaged Property. (g) In the event of a Condemnation or a Casualty, all of the following provisions will apply: (i) The rights of Subordinate Mortgagee (under the Subordinate Loan Documents or otherwise) to participate in any proceeding or action relating to a Condemnation or a Casualty, or to participate or join in any settlement of, or to adjust, any claims resulting from a Condemnation or a Casualty, will be and remain subordinate in all respects to Senior Mortgagee's rights under the Senior Loan Documents with respect thereto, and Subordinate Mortgagee will be bound by any settlement or adjustment of a claim resulting from a Condemnation or a Casualty made by Senior Mortgagee. Subordination Agreement — Governmental Entity 517717v1 SEL CL205 -3 Page S 25 (ii) All Loss Proceeds will be applied either to payment of the costs and expenses of Restoration or to payment on account of the Senior Indebtedness, as and in the manner determined by Senior Mortgagee in its sole discretion. (iii) If Senior Mortgagee applies or releases Loss Proceeds for the purposes of Restoration of the Mortgaged Property, then Subordinate Mortgagee will release for such purpose all of its right, title and interest, if any, in and to such Loss Proceeds. If Senior Mortgagee holds Loss Proceeds, or monitors the disbursement thereof, Subordinate Mortgagee will not do so. Nothing contained in this Agreement will be deemed to require Senior Mortgagee to act for or on behalf of Subordinate Mortgagee in connection with any Restoration or to hold or monitor any Loss Proceeds in trust for or otherwise on behalf of Subordinate Mortgagee, and all or any Loss Proceeds may be commingled with any funds of Senior Mortgagee. (iv) If Senior Mortgagee elects to apply Loss Proceeds to payment on account of the Senior Indebtedness, and if the application of such Loss Proceeds results in the payment in full of the entire Senior Indebtedness, any remaining Loss Proceeds held by Senior Mortgagee will be paid to Subordinate Mortgagee unless another party has asserted a claim to the remaining Loss Proceeds. (h) Subordinate Mortgagee will enter into attornment and non - disturbance agreements with all tenants under commercial or retail Leases, if any, to whom Senior Mortgagee has granted attornment and non - disturbance, on the same terms and conditions given by Senior Mortgagee. (i) Except as provided in this Section 4(i), and regardless of any contrary provision in the Subordinate Loan Documents, Subordinate Mortgagee will not collect payments for the purpose of escrowing for any cost or expense related to the Mortgaged Property or for any portion of the Subordinate Indebtedness. However, if Senior Mortgagee is not collecting escrow payments for one or more Impositions, Subordinate Mortgagee may collect escrow payments for such Impositions; provided that all payments so collected by Subordinate Mortgagee will be held in trust by Subordinate Mortgagee to be applied only to the payment of such Impositions. (j) Within 10 days after request by Senior Mortgagee, Subordinate Mortgagee will furnish Senior Mortgagee with a statement, duly acknowledged and certified setting forth the then - current amount and terms of the Subordinate Indebtedness, confirming that there exists no default under the Subordinate Loan Documents (or describing any default that does exist), and certifying to such other information with respect to the Subordinate Indebtedness as Senior Mortgagee may request. Subordination Agreement — Governmental Entity 517717v1 SEL CL205 -3 Page 9 26 (k) Senior Mortgagee may amend, waive, postpone, extend, renew, replace, reduce or otherwise modify any provisions of the Senior Loan Documents without the necessity of obtaining the consent of or providing Notice to Subordinate Mortgagee, and without affecting any of the provisions of this Agreement. Notwithstanding the foregoing, Senior Mortgagee may not modify any provision of the Senior Loan Documents that increases the Senior Indebtedness, except for increases in the Senior Indebtedness that result from advances made by Senior Mortgagee to protect the security or lien priority of Senior Mortgagee under the Senior Loan Documents or to cure defaults under the Subordinate Loan Documents. 5. Default Under Loan Documents. (a) For a period of 90 days following delivery to Senior Mortgagee of an Enforcement Action Notice, Senior Mortgagee will have the right, but not the obligation, to cure any Subordinate Mortgage Default, provided that if such Subordinate Mortgage Default is a non - monetary default and is not capable of being cured within such 90 -day period and Senior Mortgagee has commenced and is diligently pursuing such cure to completion, Senior Mortgagee will have such additional period of time as may be required to cure such Subordinate Mortgage Default or until such time, if ever, as Senior Mortgagee (i) discontinues its pursuit of any cure and /or (ii) delivers to Subordinate Mortgagee Senior Mortgagee's written consent to the Enforcement Action described in the Enforcement Action Notice. Senior Mortgagee will not be subrogated to the rights of Subordinate Mortgagee under the Subordinate Loan Documents by reason of Senior Mortgagee having cured any Subordinate Mortgage Default. However, Subordinate Mortgagee acknowledges that all amounts advanced or expended by Senior Mortgagee in accordance with the Senior Loan Documents or to cure a Subordinate Mortgage Default will be added to and become a part of the Senior Indebtedness and will be secured by the lien of the Senior Mortgage. (b) Senior Mortgagee will deliver to Subordinate Mortgagee a copy of any Notice sent by Senior Mortgagee to Borrower of a Senior Mortgage Default within 5 Business Days of sending such Notice to Borrower. Failure of Senior Mortgagee to send Notice to Subordinate Mortgagee will not prevent the exercise of Senior Mortgagee's rights and remedies under the Senior Loan Documents. Subordinate Mortgagee will have the right, but not the obligation, to cure any monetary Senior Mortgage Default within 30 days following the date of such Notice; provided, however, that Senior Mortgagee will be entitled during such 30 -day period to continue to pursue its remedies under the Senior Loan Documents. Subordinate Mortgagee may, within 90 days after the date of the Notice, cure a non - monetary Senior Mortgage Default if during such 90 -day period, Subordinate Mortgagee keeps current all payments required by the Senior Loan Documents. If such a non - monetary Senior Mortgage Default creates an unacceptable level of risk relative to the Mortgaged Property, or Senior Mortgagee's secured position relative to the Mortgaged Property, as determined by Senior Mortgagee in its sole discretion, then Subordination Agreement — Governmental Entity 517717v1 SELCL205 -3 Page 10 27 during such 90 -day period Senior Mortgagee may exercise all available rights and remedies to protect and preserve the Mortgaged Property and the Rents, revenues and other proceeds from the Mortgaged Property. Subordinate Mortgagee will not be subrogated to the rights of Senior Mortgagee under the Senior Loan Documents by reason of Subordinate Mortgagee having cured any Senior Mortgage Default. However, Senior Mortgagee acknowledges that all amounts paid by Subordinate Mortgagee to Senior Mortgagee to cure a Senior Mortgage Default will be deemed to have been advanced by Subordinate Mortgagee. Notwithstanding anything in this Section 5(b) to the contrary, Subordinate Mortgagee's right to cure any Senior Mortgage Default will terminate immediately upon the occurrence of any Bankruptcy Proceeding. (c) In the event of a Subordinate Mortgage Default, Subordinate Mortgagee will not commence any Enforcement Action until 90 days after Subordinate Mortgagee has delivered to Senior Mortgagee an Enforcement Action Notice with respect to such Enforcement Action, provided that during such 90 -day period or such longer period as provided in Section 5(a), Subordinate Mortgagee will be entitled to seek specific performance to enforce covenants and agreements of Borrower relating to income, rent, or affordability restrictions, if any, subject to Senior Mortgagee's right to cure a Subordinate Mortgage Default set forth in Section 5(a). Subordinate Mortgagee may not commence any other Enforcement Action, including any foreclosure action under the Subordinate Loan Documents, until the earlier of (i) the expiration of such 90 -day period or such longer period as provided in Section 5(a), or (ii) the delivery by Senior Mortgagee to Subordinate Mortgagee of Senior Mortgagee's written consent to such Enforcement Action by Subordinate Mortgagee. Subordinate Mortgagee acknowledges that Senior Mortgagee may grant or refuse consent to Subordinate Mortgagee's Enforcement Action in Senior Mortgagee's sole and absolute discretion. At the expiration of such 90 -day period or such longer period as provided in Section 5(a) and, subject to Senior Mortgagee's right to cure set forth in Section 5(a), Subordinate Mortgagee may commence any Enforcement Action. Any Enforcement Action on the part of Subordinate Mortgagee will be subject to the provisions of this Agreement. Subordinate Mortgagee acknowledges that the provisions of this Section 5(c) are fair and reasonable under the circumstances, that Subordinate Mortgagee has received a substantial benefit from Senior Mortgagee having granted its consent to the Subordinate Mortgage, and that Senior Mortgagee would not have granted such consent without the inclusion of these provisions in this Agreement. (d) Senior Mortgagee may pursue all rights and remedies available to it under the Senior Loan Documents, at law, or in equity, regardless of any Enforcement Action Notice or Enforcement Action by Subordinate Mortgagee. No action or failure to act on the part of Senior Mortgagee in the event of a Subordinate Mortgage Default or commencement of an Enforcement Action will constitute a waiver on the part of Senior Mortgagee of any provision of the Senior Loan Documents or this Agreement. Subordination Agreement — Governmental Entity 517717v1 SEL CL205 -3 Page 11 28 (e) If the Enforcement Action taken by Subordinate Mortgagee is the appointment of a receiver for any of the Mortgaged Property, all of the Rents, issues, profits and proceeds collected by the receiver will be paid and applied by the receiver solely to and for the benefit of Senior Mortgagee until the Senior Indebtedness will have been paid in full. (f) Subordinate Mortgagee consents to and authorizes the release by Senior Mortgagee of all or any portion of the Mortgaged Property from the lien, operation, and effect of the Senior Loan Documents. Subordinate Mortgagee waives to the fullest extent permitted by law, all equitable or other rights it may have (i) in connection with the release of all or any portion of the Mortgaged Property, (ii) to require the separate sale of any portion of the Mortgaged Property, (iii) to require Senior Mortgagee to exhaust its remedies against all or any portion of the Mortgaged Property or any combination of portions of the Mortgaged Property or any other collateral for the Senior Indebtedness, or (iv) to require Senior Mortgagee to proceed against Borrower, any other party that may be liable for any of the Senior Indebtedness (including any general partner of Borrower if Borrower is a partnership), all or any portion of the Mortgaged Property or combination of portions of the Mortgaged Property or any other collateral, before proceeding against all or such portions or combination of portions of the Mortgaged Property as Senior Mortgagee determines. Subordinate Mortgagee consents to and authorizes, at the option of Senior Mortgagee, the sale, either separately or together, of all or any portion of the Mortgaged Property. Subordinate Mortgagee acknowledges that without Notice to Subordinate Mortgagee and without affecting any of the provisions of this Agreement, Senior Mortgagee may (i) extend the time for or waive any payment or performance under the Senior Loan Documents; (ii) modify or amend in any respect any provision of the Senior Loan Documents; and (iii) modify, exchange, surrender, release, and otherwise deal with any additional collateral for the Senior Indebtedness. (g) If any party other than Borrower (including Senior Mortgagee) acquires title to any of the Mortgaged Property pursuant to a foreclosure of, or trustee's sale or other exercise of any power of sale under, the Senior Mortgage conducted in accordance with applicable law, the lien, operation, and effect of the Subordinate Loan Documents automatically will terminate with respect to such Mortgaged Property. 6. Refinancing. Subordinate Mortgagee agrees that its agreement to subordinate hereunder will extend to any new mortgage debt which is for the purpose of refinancing all or any part of the Senior Indebtedness (including reasonable and necessary costs associated with the closing and/or the refinancing, and any reasonable increase in proceeds for rehabilitation in the context of a preservation transaction). All terms and covenants of this Agreement will inure to the benefit of any holder of any such refinanced debt, and all Subordination Agreement — Governmental Entity 517717v1 SEL CL205 -3 Page 12 29 references to the Senior Loan Documents and Senior Mortgagee will mean, respectively, the refinance loan documents and the holder of such refinanced debt. 7. Miscellaneous Provisions. (a) This Agreement represents the entire understanding and agreement between the parties with regard to the matters addressed herein, and will supersede and cancel any prior agreements with regard to such matters. (b) If there is any conflict or inconsistency between the terms of the Subordinate Loan Documents and the terms of this Agreement, then the terms of this Agreement will control. (c) This Agreement will be binding upon and will inure to the benefit of the respective legal successors and permitted assigns of the parties to this Agreement. No other party will be entitled to any benefits under this Agreement, whether as a third -party beneficiary or otherwise. (d) If any one or more of the provisions contained in this Agreement, or any application of any such provisions, is invalid, illegal, or unenforceable in any respect, the validity, legality, enforceability, and application of the remaining provisions contained in this Agreement will not in any way be affected or impaired. (e) Each notice, request, demand, consent, approval or other communication (collectively, "Notices," and singly, a "Notice ") which is required or permitted to be given pursuant to this Agreement will be in writing and will be deemed to have been duly and sufficiently given if (i) personally delivered with proof of delivery (any Notice so delivered will be deemed to have been received at the time so delivered), or (ii) sent by a national overnight courier service (such as FedEx) designating earliest available delivery (any Notice so delivered will be deemed to have been received on the next Business Day following receipt by the courier), or (iii) sent by United States registered or certified mail, return receipt requested, postage prepaid, at a post office regularly maintained by the United States Postal Service (any Notice so sent will be deemed to have been received on the date of delivery as confirmed by the return receipt), addressed to the respective parties as follows: Notices intended for Senior Mortgagee will be addressed to: [Name] [Address] Attention: Facsimile: Telephone: Subordination Agreement — Governmental Entity 517717v1 SEL CL205 -3 Page 13 30 Notices intended for Subordinate Mortgagee will be addressed to: City of Columbia Heights 590 — 40th Avenue NE Columbia Heights, Minnesota 55421 Attention: Economic Development Manager Facsimile: (763) 706 -3601 Telephone: (763) 706 -3600 Any party, by Notice given pursuant to this Section, may change the person or persons and /or address or addresses, or designate an additional person or persons or an additional address or addresses, for its Notices, but Notice of a change of address will only be effective upon receipt. Neither party will refuse or reject delivery of any Notice given in accordance with this Section. (f) Upon Notice from Senior Mortgagee, Subordinate Mortgagee will execute and deliver such additional instruments and documents, and will take such actions, as are required by Senior Mortgagee in order to further evidence or implement the provisions and intent of this Agreement. (g) This Agreement will be governed by the laws of the State in which the Land is located. (h) Each person executing this Agreement on behalf of a party hereto represents and warrants that such person is duly and validly authorized to do so on behalf of such party with full right and authority to execute this Agreement and to bind such party with respect to all of its obligations under this Agreement. (i) No failure or delay on the part of any party to this Agreement in exercising any right, power, or remedy under this Agreement will operate as a waiver of such right, power, or remedy, nor will any single or partial exercise of any such right, power or remedy preclude any other or further exercise of such right, power, or remedy or the exercise of any other right, power or remedy under this Agreement. (j) Each parry to this Agreement acknowledges that if any party fails to comply with its obligations under this Agreement, the other parties will have all rights available at law and in equity, including the right to obtain specific performance of the obligations of such defaulting party and injunctive relief. (k) This Agreement may be assigned at any time by Senior Mortgagee to any subsequent holder of the Senior Note. (1) This Agreement may be amended, changed, modified, altered or terminated only by a written instrument signed by the parties to this Agreement or their successors or assigns. Subordination Agreement — Governmental Entity Page 14 517717v1 SEL CL205 -3 31 (m) This Agreement may be executed in two or more counterparts, each of which will be deemed an original but all of which together will constitute one and the same instrument. (n) The term of this Agreement will commence on the date of this Agreement and will continue until the earliest to occur of the following events: (i) the payment of all of the Senior Indebtedness; provided that this Agreement will be reinstated in the event any payment on account of the Senior Indebtedness is avoided, set aside, rescinded or repaid by Senior Mortgagee as described in Section 2(e) of this Agreement, (ii) the payment of all of the Subordinate Indebtedness other than by reason of payments which Subordinate Mortgagee is obligated to remit to Senior Mortgagee pursuant to this Agreement, (iii) the acquisition by Senior Mortgagee or by a third party purchaser of title to the Mortgaged Property pursuant to a foreclosure of, deed in lieu of foreclosure, or trustee's sale or other exercise of a power of sale or similar disposition under the Senior Mortgage; or (iv) with the prior written consent of Senior Mortgagee, without limiting the provisions of Section 5(d), the acquisition by Subordinate Mortgagee of title to the Mortgaged Property subject to the Senior Mortgage pursuant to a foreclosure, or a deed in lieu of foreclosure, of (or the exercise of a power of sale under) the Subordinate Mortgage. (o) This Agreement does not constitute an approval by Senior Mortgagee of the terms of the Subordinate Loan Documents. (p) Nothing in this Agreement or in any of the Senior Loan Documents or Subordinate Loan Documents will be deemed to constitute Senior Mortgagee as a joint venturer or partner of Subordinate Mortgagee. (q) Nothing in this Agreement is intended, nor will it be construed, to in any way limit the exercise by Subordinate Mortgagee of its governmental powers (including police, regulatory and taxing powers) with respect to Borrower or the Mortgaged Property to the same extent as if it were not a party to this Agreement or the transactions contemplated by this Agreement. [SIGNATURE AND ACKNOWLEDGMENT PAGES FOLLOW] Subordination Agreement — Governmental Entity Page 15 517717v1 SEL CL205 -3 32 IN WITNESS WHEREOF, the parties have duly executed this Agreement as of the day and year first above written. SENIOR MORTGAGEE: NORTHMARQ CAPITAL, LLC By: _ Name: Title: STATE OF ) COUNTY OF ) The foregoing instrument was acknowledged before me this day of 2018, by a _ of NorthMarq Capital LLC, a _ limited liability company, on behalf of the [limited liability company] . (SEAL) Notary Public Subordination Agreement — Governmental Entity 517717v1 SEL CL205 -3 Page 16 33 SUBORDINATE MORTGAGEE: CITY OF COLUMBIA HEIGHTS, MINNESOTA By: _ Name Title: By: _ Name Title: STATE OF MINNESOTA ) ss. COUNTY OF ANOKA ) Donna Schmitt Mayor Walter R. Fehst City Manager The foregoing instrument was acknowledged before me this day of , 2018, by Donna Schmitt, the Mayor of the City of Columbia Heights, Minnesota, on behalf of the City. (SEAL) Notary Public STATE OF MINNESOTA ) ss, COUNTY OF ANOKA ) The foregoing instrument was acknowledged before me this day of 2018, by Walter R. Fehst, the City Manager of the City of Columbia Heights, Minnesota, on behalf of the City. (SEAL) Notary Public Subordination Agreement — Governmental Entity 517717v1 SEL CL205 -3 Page 17 34 CONSENT OF BORROWER Borrower acknowledges receipt of a copy of this Subordination Agreement, dated April _, 20118, by and between NorthMarq Capital, LLC and City of Columbia Heights, Minnesota and consents to the agreement of the parties set forth in this Agreement. COLUMBIA HEIGHTS HOUSING LIMITED PARTNERSHIP I, a Minnesota limited liability limited partnership By: [COLUMBIA HEIGHTS TOWNHOMES LLC, a Minnesota limited liability company, its [general partner] By: _ Name: Title: STATE OF MINNESOTA ) ss COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 2018, by the of [Columbia Heights Townhomes LLC], a Minnesota limited liability company, the [general partner] of Columbia Heights Housing Limited Partnership I, a Minnesota limited partnership, on behalf of said limited partnership. Notary Public Subordination Agreement — Governmental Entity 517717v1 SEL CL205 -3 Page 18 35 EXHIBIT A LEGAL DESCRIPTION Lot 1, Block 2 and Outlot B, Northwestern 2nd Addition, Anoka County, Minnesota Subordination Agreement — Governmental Entity 517717v1 SEL CL205 -3 Page 19 36 M AGENDA SECTION CONSENT ITEM COLUMBIA ITEM NO. 7E -{ HEIGHTS MEETING DATE MARCH 26, 2018 CITY OF COLUMBIA HEIGHTS - COUNCIL LETTER ITEM: Amendment Consideration of the Fiscal Year 2018 Planning & Inspections Fund Budget DEPARTMENT: Community Development CITY MANAGER'S PPROVAL: BY /DATE: Joe Hogeboom, March 21, 2018 BY /DATE: , CITY STRATEGY: #6: Excellent Housing /Neighborhoods Additional Strategy? #2: Economic Strength SHORT TERM GOAL (IF APPLICABLE): N/A Additional Goal? N/A BACKGROUND: On December 11, 2017, the City Council (the "Council ") for the City of Columbia Heights (the "City ") approved Resolution No. 2017 -130, a resolution which adopted a budget for the fiscal year 2018, set the City levy, approved the HRA levy, and approved a tax rate increase. Thus, the City Council effectively adopted the fiscal year 2018 budget for the Community Development Department, specifically the Planning & Inspections, Economic Development Authority Administration, and Special Project Fund budgets. The Community Development Department currently projects that the permit and licensing activity for 2018 will exceed the initial projections made in mid -2017 for the 2018 Planning & Inspections Fund budget. The initial projections for 2018 were estimated to be $320,000, however after the approval of the Grand Central Flats development in December of 2017, the Community Development Department now projects the permit and license activity to reach $375,000 by the end of the year. Therefore, the Community Development Department will realize additional expenditures that were not originally accounted for in the Planning & Inspection Fund budget for 2018. To compensate for additional inspections and permitting work necessitated by the large construction project this summer, the Community Development Department proposes to reintroduce the position of Building Inspections Intern for the summer and fall months of 2018. Additionally, with the increase in number of overall community development projects, as well as the increase in the level of intensity involved in these projects, the Community Development Department proposes to add the staff position of "Community Development Manager ". This position would serve a management role in the department, and oversee complex development - related projects. This action is in line with cities of a similar size throughout the Metro Area. The plan is to promote this position from within, and not add an additional staff person to the department's roster. A copy of the proposed Community Development Department Organizational Chart is attached. The resolution for consideration by the City Council amends the Fiscal Year 2018 Planning & Inspection Fund budget to adequately reflect the additional activity (revenues and expenditures) incurred by the Community Development Department, as well as to reflect proposed staff - related expenditures. Additionally, the resolution formally adopts the new Community Development Department Organizational Chart. 37 City of Columbia Heights - Council Letter Page 2 STAFF RECOMMENDATION: Staff recommends approval of Resolution 2018 -15, amending the Fiscal Year 2018 Planning and Inspections Fund Budget and approving the Community Development Department Organizational Chart. RECOMMENDED MOTION(S): Motion: Move to waive the reading of Resolution 2018 -15, there being ample copies available to the public. Motion: Move to approve Resolution 2018 -15, a resolution authorizing an amendment to the Fiscal Year 2018 Planning & Inspections Fund budget and approving the Community Development Organizational Chart. ATTACHMENTS: 1. Resolution 2018 -15 (1 Page) 2. Community Development Department Organizational Chart (1 page) 38 RESOLUTION NO. 2018-IS A RESOLUTION AUTHORIZING AN AMENDMENT TO THE FISCAL YEAR 2018 PLANNING & INSPECTIONS FUND BUDGET. BE IT RESOLVED, by the City Council (the "Council ") for the City of Columbia Heights (the "City ") as follows: WHEREAS, the City Council approved Resolution 2017 -130, a resolution which subsequently adopted the initial Fiscal Year 2018 Planning & Inspections Fund budget; and WHEREAS, certain revenues and expenditures of the Planning & Inspections Fund budget will exceed the amount initially adopted; and WHEREAS, it is necessary to increase the Planning & Inspections Fund budget to reflect the additional activity not originally anticipated for prior to the approval of Resolution 2017 -130; and WHEREAS, the Community Development Organizational Chart reflects changing needs for development services in the City. 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: ORDER OF COUNCIL IT IS HEREBY RESOLVED, that the Fiscal Year 2018 Planning & Inspections Fund budget 201.42400 is amended to increase both revenues and expenditures in the amount of $40,000.00, and the Community Development Organizational Chart is hereby adopted. Passed this 26th day of March, 2018 Offered by: Seconded by: Roll Call: Donna Schmitt, Mayor Attest: Katie Bruno, City Clerk /Council Secretary 39 0 C 0l V ho a O O 4J = m W -0 r_ N a c E C. ao c 0 � c o p c a x �� CJ N� O d }, L CL c E W i N o C O C 0 E m O Do i o a L C. O MEOW ICI f ► O Y�� N ; V� a p) © m A o U O C C. J A Cr0 G � CC C (� V O U f0 .v 00 C m �,� COLUMBIA HEIGHTS AGENDA SECTION CONSENT ITEM NO. 7F MEETING DATE MARCH 26, 2018 CITY OF COLUMBIA HEIGHTS - COUNCIL LETTER ITEM: Keyes Park Bid Award: Add Alternate #1 DEPARTMENT: Public Works CITY MANAGER'S APPROVAL: BY /DATE: Kevin Hansen /March 21, 2018 BY /DATE: j G f CITY STRATEGY: #4: Opportunities for Play and Learning Additional Strategy? #6: Excellent Housing /Neighborhoods SHORT TERM GOAL (IF APPLICABLE): choose an item, Additional Goal? Cnocse an - *em. BACKGROUND: At their March 12, 2018 meeting the City Council accepted the bids and awarded a contract for Keyes Park. The contract award included the base bid, and Add Alternates 3 -7, and 10 for a contract award in the amount of $452,810.50. STAFF RECOMMENDATION: There was significant discussion regarding Add Alternate #1, which was the sidewalk along 45th Avenue adjacent to the park and then along McCleod Street down to 44th Avenue. This was an item that had been talked about during the public meetings and plan development. The Council referred this item back to staff to consider adding Alternate 1 with a funding source. The project is using available Park Development Funds (Fund 412) along with Storm Water Construction Funds (Fund 653) totaling $452,810. After review with the City Manager and Finance Director, staff is recommending the appropriation for Add Alternate #1 from the Infrastructure Fund (Fund 430). This recommendation considered the following: 1. The Infrastructure Fund was established in the late 1990's as the primary means to subsidize the City's annual Street Rehabilitation Program. Staff provides 20 -year projections for our street rehabilitation needs and updates the plan every five years. It should be stressed that this fund supports our street program only; our projections do not include alleys or sidewalks. 2. New sidewalks in Columbia Heights are typically assessed either with our street program or individually as stand -alone projects. 3. In the case of McLeod Street, the segment on the east side from 44th to 45th Avenue is considered to not be assessable due to the slope and grade change to the abutting property. 4. The Infrastructure Fund is not fully funding the needs (current and future) of our street program, and the projections have, to date, not included alleys. Therefore, staff does not recommend Fund 430 as an ongoing funding source for sidewalks in the City. 5. Based on City policy, the walk parallel to 45th Avenue and adjacent to the park should be paid for from the Park(s) Fund. RECOMMENDED MOTION(S): Move to accept the bid for Add Alternate 1, McLeod Street sidewalk, in the amount of $38,011 for a revised contract award of Keyes Park Improvement Project, City Project No. 1610, to Odesa II LLC of Sauk Rapids, Minnesota in the amount of $490,821.50 appropriating funds for Add Alternate 1 from Fund 430 -51610 and Parks 101 - 45200; and, furthermore, to authorize the Mayor and City Manager to enter into a contract for the same. 41 CH, COLUMBIA HEIGHTS AGENDA SECTION CONSENT ITEM NO. 7G MEETING DATE MARCH 26, 2018 CITY OF COLUMBIA HEIGHTS - COUNCIL LETTER ITEM: Rental Housing Licenses DEPARTMENT: Fire CITY MANAGER'S APP ROVAL: BY /DATE: Gary Gorman BY /DATE: CITY STRATEGY: #6: Excellent Housing/Neighborhoods Additional Strategy? N/A SHORT TERM GOAL (IF APPLICABLE): N/A Additional Goal? N/A STAFF RECOMMENDATION: Approval of attached list of rental housing applications RECOMMENDED MOTION(S): Move to approve the items listed for rental housing license applications for March 26, 2018, in that they have met the requirements of the Property Maintenance Code. ATTACHMENTS: Licenses to Approve (TIFF) 42 2018 Print Rental Licenses to COLUMBIA HEIGHTS approve by CC P I RE DEPARTMENT 825 41st Avenue NE o Columbia Heights, MN 55421 n Inspections 763 -706 -8156 a Fax 763 - 706 -8151 & fireinspections @ci.columbia - heights.mn.us 10024 4131 JEFFERSON ST NE MSRI Assets F16951F 8300 N Mopac Expressway #200 $ 175.00 Austin, TX 78759 10068 4546 5TH ST NE Huss, Michael F16977 121 20th Avenue SW $ 175.00 New Brighton, MN 55112 10104 325 SUMMITST NE Gondek, Michael F16974 334 40th Avenue N.E. $ 175.00 Columbia Heights, MN 55421 10120 4348 MCLEOD ST NE Pre 4, LLC F16937 7308 Aspen Ln N #141 $ 175.00 Brooklyn Park, MN 55428 10131 1349 CIRCLE TERRACE BLVD NE Harpreet, Kathuria F16960A 28205 Nield Court $ 175.00 Santa Clarita, CA 91350 10137 3701 RESERVOIR BLVD NE Salem, Fadia F16935 1036 34TH AVE NE $ 175.00 MINNEAPOLIS, MN 55418 10142 1070 G RAN DVIEW CT NE Manthey, Erin F16912A 1395 Commerce Drive $ 175.00 Mendota Heights, MN 55120 10150 1420 PARKVIEW LN NE Kienzle, Kris F16863A 3450 Lexington Ave. N. #100 $ 175.00 Shoreview, MN 55126 10154 4253 VAN BUREN ST NE Ortega, Eugenio F16855 4234 Reservoir Blvd. NE $ 233.00 Columbia Heights, MN 55421 10177 3838 VAN BUREN ST NE Jabeen, Kehkashan F16857 4663 Monroe St. NE $ 218.50 Hilltop, MN 55421 10178 3839 VAN BUREN ST NE Kucera, Gavin F16967 1654 29th Avenue NW $ 175.00 New Brighton, MN 55112 10181 4121 MAIN ST NE Trebtoske, Douglas F16803A 1817 Walden Lane SW $ 175.00 Rochester, MN 55902 43 03/19/2018 12:01 Page 1 2018 Print Rental Licenses to COLUMBIA HEIGHTS approve by CC FIRE D E P A R T M E K T 825 41st Avenue NE G Columbia Heights, MN 55421 @ Inspections 763- 706 -8156 G Fax 763 - 706 -8151 e fireinspections @ci.columbia - heights.mn.us 10188 55149TH AVE NE Luebke, Christopher F16804A 1360 Pierce Terrace NE $ 175.00 Columbia Heights, MN 55421 10189 1070 GRANDVIEW CT NE Osborne, David F16882A 1070 Grandview Ct #320 $ 175.00 Columbia Heights, MN 55421 10195 -213 1011 41ST AVE NE Marget, Diane F16931 11674 Lakeview Court $ 175.00 Champlin, MN 55316 10196 685 46 1/2 AVE NE Nur, Mohamed F16868A 2003 10th Ave S #2 $ 175.00 Minneapolis, MN 55404 10202 1010 43 1/2 AVE NE Hadi, Shabana F16870A 5485 Lake Avenue $ 175.00 Shoreview, MN 55126 10210 2227 FOREST DR NE Olson, Karen F16898 977 Summit Ave #A $ 175.00 St. Paul, MN 55105 10211 4133 POLK ST NE Brewer, Ronald F16875A 3570 Lexington Ave. N. #202 $ 175.00 Shoreview, MN 55126 10212 4246 JACKSON ST NE Invitation Homes F16880A 1210 Northland Drive #180 $ 175.00 Mendota Heights, MN 55120 10219 1717 INNSBRUCK PKWY NE Jacobus, Dan F16897 2060 Chatsworth Ct. $ 175.00 Roseville, MN 55113 10232 4941 MONROE ST NE Kor, Emily F16860 1743 Selby Ave. #2 $ 189.50 St. Paul, MN 55104 10237 4105 MADISON ST NE Que, Ying Z. F16922 2600 26th Ave S #100 $ 175.00 Minneapolis, MN 55406 10240 3914 TYLER ST NE Strom, John F16910 12962 73rd Place N $ 175.00 Maple Grove, MN 55369 44 03/19/2018 12:01 Page 2 2018 Print Rental Licenses to COLUMBIA HEIGHTS approve by CC y FIRE D E F A R T M E N T 825 41st Avenue NE e Columbia Heights, MN 55421 e Inspections 763- 706 -8156 s Fax 763 -706 -8151 a fireinspections @ci.columbia- heights.mn.us 10242 1070 GRANDVIEW CT NE Kurzawa, Kurt F16889A 7128 Lyndale Ave. S. $ 175.00 Richfield, MN 55423 10247 4948 4TH ST NE IH2 Property Illinois, LP F16880 1210 Northland Drive #180 $ 175.00 Mendota Heights, MN 55120 10263 5240 7TH ST NE Ramos, Alma F16879A 5240 7th St NE $ 175.00 Columbia Heights, MN 55421 10266 4323 WASHINGTON ST NE MNSF Minneapolis 2 LLC F16810A 4701 Hedgemore Dr #500 $ 189.50 Charlotte, NC 28209 10271 3915 3RD ST NE Weinkauf, Todd F16965 3915 3RD STREET NE $ 175.00 Columbia Heights, MN 55421 10281 2114 HIGHLAND PL NE Koos, Daniel F16962 3738 S. Yorktown Way $ 175.00 Boise, ID 83706 10286 -210 1011 41ST AVE NE Dolma, Sangye F16856 1119 44 1/2 Ave NE $ 175.00 Columbia Heights, MN 55421 10289 1070 GRANDVIEW CT NE Lox Properties F16980 1395 Commerce Drive $ 175.00 Mendota Heights, MN 55120 10300 1070 GRANDVIEW CT NE Ruzicka, Jon F16808 1155 Ford Road #202 $ 175.00 St Louis Park, MN 55426 10305 3713 TYLER ST NE Parks, Brian F16955 8620 Annapolis Lane N. $ 175.00 Maple Grove, MN 55369 10312 1070 GRANDVIEW CT NE Manthey, Erin F16866 1395 Commerce Dr $ 175.00 Mendota Heights, MN 55120 10331 4059 JEFFERSON ST NE Ahmed, Adam F16970 6546 Willow Lane N. $ 175.00 Brooklyn Center, MN 55430 03/19/2018 12:01 Page 3 201.9 Print Rental Licenses to approve by CC COLUMBIA HEIGHTS F I RE 0 E P A R T M E N T — 825 41st Avenue NE h Columbia Heights, MN 55421 e Inspections 763_706 -8156 - Fax 763 - 706 -8151 c fireinspections @ci.columbia= heights.mn us— 10423 4530 STINSON BLVD NE I1-12 Property Illinois, LP F16879E 1210 Northland Drive #180 $ 175.00 Mendota Heights, MN 55120 10427 1409 PARKVIEW LN NE Moosai, Shiva P F16907 6141 Gettysburg Ave N $ 175.00 New Hope, MN 55428 10429 4941 4TH ST NE IH2 Property Illinois, LP F168790 1210 Northland Drive #180 $ 175.00 Mendota Heights, MN 55120 10435 3940 3RD ST NE IH2 Property Illinois, LP F16879D 1210 Northland Drive #180 $ 175.00 Mendota Heights, MN 55120 12026 3731 PIERCE ST NE Rivera, Francisco F16864A 3733 Pierce St NE $ 175.00 Columbia Heights, MN 55421 15000 2308 MAIDEN LN NE Pesantez, Fausto F16915 5030 S. KILPATRICK $ 55.00 CHICAGO, IL 60632 15033 4035 CLEVELAND ST NE Vann, Mary F16918 1101 McKusick Rd Lane N $ 175.00 Stillwater, MN 55082 15042 97144 1/2 AVE NE Aucaquizhpi, Patricio F16862 526 Med Oak Drive $ 55.00 Mounds View, MN 55112 15061 4118 MONROE ST NE Bauer, Robert F16966 1222 5th St NE $ 55.00 Minneapolis, MN 55413 15083 4615 CHATHAM RD NE Damerow, Allen F16654 619 Driftwood Ct. $ 55.00 New Brighton, MN 55112 15084 3835 JACKSON ST NE Bundlie, Eric F16894 1628 Ashbury Place $ 55.00 Eagan, MN 55122 20027 4518 TAYLOR ST NE Care First Rental Property LLC F16906 1170 159th Ave NW $ 175.00 Andover, MN 55304 03/19/2018 12:01 Page 4 2018 Print Rental Licenses to COLUMBIA HEIGHTS approve by CC FIRE 0 E F A R T M E N T 825 41st Avenue NE & Columbia Heights, MN 55421 , Inspections 763 - 706 -8156 v- Fax 763 - 706 -8151 o fireinspections @ci.columbia- heights.mn.us 20047 3961 RESERVOIR BLVD NE Wegman, James F16954 191140th Avenue $ 175.00 Columbia Heights, MN 55421 20124 1007 50TH AVE NE Olson, Dean F16893 1775 15th Avenue N.W. $ 175.00 New Brighton, MN 55112 20170 4662 TAYLOR ST NE Salchow, Cheryl F16812 4662 Taylor Street NE $ 175.00 Columbia Heights, MN 55421 20295 4612 POLK ST NE Aucaquizhpi, Lisa F16984 4612 POLK ST NE $ 175.00 Columbia Heights, MN 55421 30004 543 40TH AVE NE Kiros Tesfaye /ART Properties Management F16811 543 40th Avenue #5 $ 263.00 Columbia Heights, MN 55421 30067 3709 JACKSON ST NE Mikre, Samuel F16895 55 Heller Way $ 412.00 Montclair, NJ 07043 30072 3915 LOOKOUT PL NE Dang, Danny F16913 P.O. Box 10565 $ 286.00 White Bear Lake, MN 55110 Total # of Licenses: 55 47 03/19/2018 12:01 Page 5 CH COLUMBIA HEIGHTS AGENDA SECTION CONSENT AGENDA ITEM NO. 7H MEETING DATE MARCH 26, 2018 CITY OF COLUMBIA HEIGHTS - COUNCIL LETTER ITEM: LICENSE AGENDA DEPARTMENT: COMMUNITY DEVELOPMENT CITY MANAGER'S APPROVAL: BY /DATE: March 21, 2018 BY /DATE: CITY STRATEGY: #1; Safe Community Additional Strategy? Choose an. -`em. SHORT TERM GOAL (IF APPLICABLE): Choose an Additional Goal? Choose an tem- BACKGROUND: BACKGROUND /ANALYSTS Attached is the business license agenda for the March 26, 2018 Council meeting. This agenda consists of applications for 2018 Contractor Licenses, and a license for an Ice Cream Truck. 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 March 26, 2018 as presented. ATTACHMENTS: 48 City of Columbia Heights - Council Letter TO CITY COUNCIL March 26, 2018 *Signed Waiver Form Accompanied Application CONTRACTOR'S LICENSES -2018 BLDG *Dusty's Drain dba North Anoka P1 *Vasseur Design *Jerry's Plumbing Inc *Sunderland Plumbing Inc *Global Mechanical LLC Waypoint Development LLC *Kramer Mechanical 22590 RumRiver Blvd, St Francis 4337 Welcome Ave N, Crystal 4087 146th Ln NW, Andover 300982 nd Ln NE, Blaine 17830 Concord Ct NW, Elk River 238 Peninsula Rd, Medicine Lk 7860 Fawn Lake Dr NE, Stacy ICE CREAM TRUCK LICENSE *Nafie Ice Cream 1000 Lynde Dr, Fridley $80 $80 $80 $80 $80 $80 $80 $50 49 Page 2 z _O V W N Q 0 z W a W Q 00 zz z L W W W W- H z w a W 0 LU U z z LL- co r O N CD N L U m 2 LL O z H W W J_ U z Z) O U O cn w z z_ 2 U- 0 w cn H IM O z ¢ U- 0 H z D 0 H C� W m 2 D J O U- 0 U 0 0 ■ (C] CA ti CV co NiO O 4- c 7 O E ca a� L _c L cn c ca cn -v c U O U N m 0 Ln -o c m U N L U 00 L O N IZ to O E z N cu W kn = V V 45 z L O o M 4-- z _O V W N Q 0 z W a W Q 00 zz z L W W W W- H z w a W 0 LU U z z LL- co r O N CD N L U m 2 LL O z H W W J_ U z Z) O U O cn w z z_ 2 U- 0 w cn H IM O z ¢ U- 0 H z D 0 H C� W m 2 D J O U- 0 U 0 0 ■ (C] CA ti CV co NiO O 4- c 7 O E ca a� L _c L cn c ca cn -v c U O U N m 0 Ln LO x4 0 a # # P4 Ha * x� # w 0 U FC U # H # # Fq rp }." 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AGENDA SECTION PUBLIC HEARINGS l��� ITEM NO. 8A l.� HEIGHTS MEETING DATE MARCH 26, 2018 CITY OF COLUMBIA HEIGHTS - COUNCIL LETTER ITEM: Public Hearing to Consider Revocation of Rental Licenses for 4625 and 4633 Tyler Street NE DEPARTMENT: Police Department CITY MANAGER'S APPRQVAL:/ ,fir./. BY /DATE: Chief Austin /03 -22 -2018 BY /DATE: 3 4;?-311,ell" CITY STRATEGY: #1; Safe Community Additional Strategy? #2: Economic Strength SHORT TERM GOAL (IF APPLICABLE): Choose an item. Additional Goal? Choose an item. BACKGROUND: The Police Department had requested a public hearing be held at this Council meeting to considerthe revocation of the rental licenses at 4625 and 4633 Tyler Street NE due to issues at those locations. The owner of those properties, Bradley Schumacher, was notified, and each unit in those buildings were posted with notices to make the tenants aware. STAFF RECOMMENDATION: The property owner at 4625 and 4633 Tyler Street NE, Mr. Schumacher, has moved forward to comply with some of the violations that have occurred on those properties which were leading to the recommendation to revoke the rental license. The property owner has also made plans to contract with a professional property management company to reduce the number of calls for service to avoid future violations of the Property Maintenance Code. The Police Department has been advised that the owner has plans to sell the properties and would like to keep the current licensing intact in order to facilitate any potential sale. The owner has been advised that the Police Department will recommend to table to revocation hearing until the first Council meeting in June. During that time, the CHPD will monitor police calls for service on those properties to determine if they are within reasonable limits compared to other rental properties of similar size in the city. If issues arise between now and then that the Police Department feels require the revocation hearing to be expedited, we will be in contact with the Council and a new revocation hearing date will be scheduled. The Police Department's recommendation is to continue this hearing until the first Council meeting in June. RECOMMENDED MOTION(S): Motion to table the public hearing to consider the revocation of rental licenses at 4625 and 4633 Tyler Street NE until the City Council meeting of June 11, 2018. ATTACHMENTS: none 62