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HomeMy WebLinkAbout06-14-2021 City Council Meeting Minutes CITY COUNCIL MEETING Mayor Amáda Márquez Simula Councilmembers John Murzyn, Jr. Connie Buesgens Nick Novitsky Kt Jacobs City Manager Kelli Bourgeois City Hall—Council Chambers, 590 40th Ave NE Monday, June 14, 2021 7:00 PM MINUTES The following are the minutes for the Meeting of the City Council held at 7:00 pm on Monday, June 14, 2021 in the City Council Chambers, City Hall, 590 40th Avenue NE, Columbia Heights, Minnesota. CALL TO ORDER/ROLL CALL Mayor Márquez Simula called the meeting to order at 7:00 pm. Present: Mayor Márquez Simula; Councilmember Buesgens; Councilmember Jacobs; Councilmember Murzyn, Jr.; Councilmember Novitsky Also Present: Sarah Arneson; Kelli Bourgeois, City Manager; Kyle Brasser; Aaron Chirpich, Community Development Director; John Haluska; Kevin Hansen, Public Works Director; Earle Harrison; Jim Hoeft, City Attorney; Benjamin Johansen; Steve Johnson; Nancy Kendall; Lorien Mueller; Jacob Rojer; Dave Rudolph; Ben Sandell, Communications Coordinator; Monika Schachern; Nicole Tingley, City Clerk CALL TO ORDER/ROLL CALL PLEDGE OF ALLEGIANCE MISSION STATEMENT Our mission is to provide the highest quality public services. Services will be provided in a fair, respectful and professional manner that effectively addresses changing citizen and community needs in a fiscally- responsible and customer-friendly manner. APPROVAL OF AGENDA Motion by Councilmember Murzyn, Jr., seconded by Councilmember Novitsky, to approve the Agenda as presented. All Ayes, Motion Carried 5-0. PROCLAMATIONS, PRESENTATIONS, RECOGNITION, ANNOUNCEMENTS, GUESTS A. School Board Liaison Update Lorien Mueller reported that academic year ended and many students over the year participated in nationals for History Day, received accolades for sport competitions and through Spotlight for theater performances. Graduation was celebrated last week for the Class of 2021, who received over $300,000 in annual scholarships, and community members and local businesses sponsored the students’ barbecue event. City of Columbia Heights MINUTES June 14, 2021 City Council Meeting Page 2 Ms. Mueller thanked the City for its COVID-19 Vaccine Clinic partnership with the Public Schools and Anoka County, where City responders administered over 450 injections, and thanked all who supported the technology levy in 2014, as it set up the success for distance learning that was necessary over the past year. Learning models are being analyzed for the fall and more information will be forthcoming, and online learning may be preferable for some 11th and 12th grade students. Summer school and summer encore activities are in process. She advised a word of caution that there will be increased traffic with the upcoming Summer Academy’s three-week program (June 14 to July 1) at the High School and Highland Elementary School. CONSENT AGENDA Motion by Councilmember Jacobs, seconded by Councilmember Buesgens, to approve the Consent Agenda as presented. All Ayes, Motion Carried 5-0. 1. Approve May 24, 2021 City Council Meeting Minutes MOTION: Move to approve the minutes of the City Council Meeting of May 24, 2021 2. Accept May 3, 2021 Traffic Commission Minutes MOTION: Move to accept the Traffic Commission minutes of May 3, 2021 3. Accept May 5, 2021 Library Board Minutes MOTION: Move to accept the Library Board Minutes of May 5, 2021 4. Change Traffic Commission Meeting Day and Time MOTION: Move to change the Traffic Commission meeting day to the third Tuesday of the month and the meeting time to 6:00 pm. 5. Approve Three-Year Agreement with Lexipol for Policy Management and Training MOTION: Move to authorize the City Manager and Police Chief to enter into a three-year agreement with Lexipol for policy management services to include daily training bulletins and one-time implementation services in the amount of $67,995, to be paid from the Police Department’s 2021 budget. 6. Adopt Resolution No. 2021-51 Amending the City of Columbia Heights Fee Schedule to Add a Dangerous Dog Registration Fee MOTION: Move to waive the reading of Resolution No. 2021-51, there being ample copies available to the public. MOTION: Move to adopt Resolution No. 2021-51, being a resolution amending Resolution 2020-112, approving the City of Columbia Heights Fee Schedule to Add a Dangerous Dog Registration Fee. 7. Second Reading of Ordinance No. 1668, Cable Television Franchise Ordinance Amendment MOTION: Move to waive the reading of Ordinance No. 1668, there being ample copies available to the public. City of Columbia Heights MINUTES June 14, 2021 City Council Meeting Page 3 MOTION: Move to approve Ordinance No. 1668, Cable Television Franchise Ordinance Amendment and direct staff to send a summary of the ordinance as presented, for publication in the legal newspaper. 8. License Agenda MOTION: Move to approve the items as listed on the business license agenda for June 14, 2021 as presented. 9. Review of Bills MOTION: Move that in accordance with Minnesota Statute 412.271, subd. 8 the City Council has reviewed the enclosed list of clams paid by check and by electronic funds transfer in the amount of $1,349,668.82. PUBLIC HEARINGS 10. Second Reading of Ordinance No. 1666, an Ordinance Pertaining to the Rezoning of Certain Property Located at 825 41st Avenue NE, from Multiple-Family Residential Director to PUD, Planned Unit Development District No. 2021-01 Director Chirpich explained the process and provided an overview of the proposed project, in which Reuter Walton Development has applied for a Preliminary Plat, Planned Unit Development, and Easement Vacations for the vacant northern portion of the property located at 825 41st Avenue NE. The applicant is proposing to subdivide the existing lot into three separate parcels. One parcel will include the existing Public Safety Center. One of the newly created parcels will include a 4-story, 62-unit affordable housing community with amenities and underground parking. The remainder Lot 3 is intended for the potential future relocation of the SACA Food Shelf. In order to accommodate the proposed development and the increased density at this site, the applicant is proposing to rezone the property to a Planned Unit Development (PUD). The PUD zoning will allow flexibility with the City’s strict zoning requirements, while also requiring a high standard of building quality and site design. When a property is rezoned to PUD, specific development standards are created for the site. These standards are secured by an ordinance that amends the City’s zoning code to create a new PUD zoning district. The standards created by the ordinance only apply to the subject property. The City’s zoning map is also amended to include the new PUD District. On May 10, 2021, the City Council recommended approval of the attached PUD district ordinance by a 3-2 vote on first consideration and set the second reading for May 24, 2021. At the May 24 meeting, the Council voted to open and continue the public hearing for the second reading to June 14, 2021, to allow time for the applicant to more fully develop plans and address neighborhood concerns. Since the May 24 meeting, the applicant has completed the following additional work to refine their project plans: City of Columbia Heights MINUTES June 14, 2021 City Council Meeting Page 4 • Completed a traffic study to analyze the traffic impacts of the development on the surrounding neighborhood. The findings of this study will be presented to the Council on June 14 by the engineering firm that completed the study. • Completed a shadow study to analyze the shadows cast by the building onto adjacent properties. • Removed the underground parking access from Jackson Street and redirected all site traffic to the entrance on 42nd Avenue. Director Chirpich said he spoke with the City Engineer regarding the dog run, who reported that the green space would be needed for a small expansion of a surface stormwater pond because of the volume that has to be contained on the site. Another space for the dog run is being analyzed. Jacob Rojer, Kimley-Horn, reported that he worked with the City to complete the traffic impact study. Data was collected from two intersections on May 25 at Jackson Street & 42nd Avenue and 42nd Avenue & Central Avenue, which would have the largest impact from the proposed development. According to the Trip Generation manual, the development would be classified as midrise multifamily housing and, with it being workforce housing and close proximity to transit along Central Avenue, there would be a 10% reduction of trips and result in a total of 300 new daily trips in the surrounding area with 19 of them occurring 7:30-8:30 am and 24 additional trips 4:30-5:30 pm. The Trip Generation data was then distributed to the site accesses, and it was determined there would be no significant traffic added to one specific point because it is spread out among them (5-10 trips each in each peak hour). These volumes were then applied to the existing counts collected on May 25 and compared to the counts in the area collected a few years ago to adjust for a COVID-19 factor, with current traffic volumes being reduced because of that versus “typical” conditions. Once volumes were added onto the street network, the operational impacts at the intersections were analyzed with and without the development and no significant additional delays were noted. The only mitigation recommendation would be installation of a side street stop control at 42nd Avenue & Jackson Street. As reiterated farther below, Director Chirpich reported that the following conditions have been added to reflect changes made to the plans, though they cannot be mandated at this juncture in the process: • Developer will amend their site plan so that the access to the underground parking garage is from 42nd Avenue NE rather than Jackson Street NE. • Developer will request that the City’s Traffic Commission consider the installation of two stop signs at the intersection of Jackson Street NE, and 42nd Avenue NE to control the northbound and southbound traffic on Jackson Street. If approved, the signs will be installed by the developer. City of Columbia Heights MINUTES June 14, 2021 City Council Meeting Page 5 Some conditions which get memorialized within the PUD district plan would be that a development contract is necessary that governs the public site improvements, such as stormwater improvements; the site utility plans are subject to the final review and approval of the City Engineer; all utility and stormwater features serving the development will be privately owned and maintained and meet the City’s specifications for materials and installation and the management and maintenance of that system would be governed by an agreement between the City and the developer (which says that if the stormwater infrastructure is not maintained, the City can do what is necessary and charge back to the developer). Director Chirpich explained that the final plat approval would go before the Council at a later date, but the preliminary plat proposes to subdivide the plat into three parcels (City’s Public Safety, affordable housing, and future potential relocated SACA). Intermixed with the platting and easement issues there are some easements that need to be vacated and reoriented, as well as some easements that are in the process of being amended. Staff recommends approval of Ordinance No. 1666, on second consideration. Mayor Márquez Simula opened the public hearing. Earle Harrison reported that he and his wife ran their business in Columbia Heights from 2009 until 2017, are both professionals and have been residents for about ten years, and he performs a one-band act at Mueller’s. He is an account manager for an adaptive technology company that manufactures blindness and low vision technology, and his wife is a trainer who works with a national deaf blind equipment distribution project funded by the Federal Communications program. They are both very busy and love to hang out in their backyard, which so far has been very peaceful, but he says it looks like that is about to change with the two proposed developments and make it nearly impossible to travel outside of their home because there will be large equipment at both ends of the block at 42nd Avenue and Jackson Street. Their home is located at the south end of what used to be the Rainbow facility, and they had been excited when Hy-Vee was going to come into that vacated grocery store. With the proposed 400-500 unit building across the street from them and another one at the end of the block on 42nd Avenue, he and his wife are concerned because they have had the problem of huge amounts of sewage in their basement. He understands that the developer will share in the expense of the sewer system upgrade, but he said he cannot help but think the addition of 500-plus apartments (1,500 to 2,000 people) that the infrastructure in a two-block radius would be pretty hard pressed to support that population. Mr. Harrison is impressed with the respectfulness of City representatives and the public regarding the development, but he and his wife are still concerned about the traffic impact and may leave them with an ultimate choice to leave Columbia Heights – and they have been outbid on the fourth house that they have recently looked at. He said the public became aware of the proposed development after 18 months that the City had been working with the developer on the plan. City of Columbia Heights MINUTES June 14, 2021 City Council Meeting Page 6 Dave Rudolph, SACA Food Shelf and Thrift Store co-director, said he wished to talk about three things (how critical the development is to SACA’s future, how important SACA is to the community, and how the new building will allow SACA to better serve the community). SACA has been in the City since 1976 and needs to grow in order to serve the community better because their current space is maxed out. Some underwriting processes have begun for a loan, and a TEBQ tax increment bank-qualified loan is being sought if State and Federal funding falls through; some pro bono work is being done with BDH Architects to design the building; and SACA is working with FFEN for interior design assistance. SACA is 98% volunteer driven and last year gave out about 805,000 pounds of food and helped over 44,500 people, of which 15,900 were seniors, and “is done in manner that leaves them dignified and respected.” They have a program called “SACA Delivers,” which are monthly deliveries to 130-150 seniors and people with differing abilities that helps them stay in their homes and helps them pay their rent and take their medications, because sometimes there is a choice between taking medications or having food to eat. The Thrift Store allows people to buy much-needed clothing and household items and are of good quality and provides people a pathway to self-sufficiency and stability. To better serve the community, the proposed location would be much closer to a bus line and the proposed facility would be set up like a small grocery store. Lastly, SACA would be able to assist job searching with a computer lab. Benjamin Johansen said he was shocked in that the only aspect of the traffic study was due to give criteria to the delays of those in vehicles, not the safety of the residents and people walking around on the streets or sidewalks. He said the number one complaint for neighboring residents of the proposed development is the inconvenience of residents, though he wished to thank the developers and staff in conducting the traffic study because it had been something they had been asking for. Regarding the exit and entry on 41st Avenue by the townhomes, where there are a lot of young immigrant families, it is a very steep hill, and often does not leave walkers to react to oncoming traffic. He highly recommended that City staff adds value to the community by putting safety first. If the TIF gets approved for this high-density development, he said it would be about 25 years before residents see any benefits – and asked what the project is without SACA, as it is important and gives the City something that unifies the community (where 50% of kindergarten through 12th grade students on reduced or free lunches). Mr. Johansen highly recommended that the Council, as private citizens, and all Columbia Heights residents continue to petition to House representatives that they pass funding bills. Without SACA, in Chapter 3 of the 2040 Comprehensive Plan, he only counted two goals that this high- density project fulfills and, with SACA, six goals. He said there is much more value to the City immediately with SACA involved and residents want SACA to be included, and he highly recommend that developers assist in any kind of additional agreements or work with the City (in order to make that happen) -- residents want to see value today, not just in 25 years. John Haluska said his family has lived in the City since 1947 in the affected neighborhood and would be speaking on their behalf and that of his sister, who lives at 4220 Jackson Street. He said the character of the community is important to them, along with its history City of Columbia Heights MINUTES June 14, 2021 City Council Meeting Page 7 and promises that have been made by the City have the property was taken over at 42nd Avenue and Jackson Street and running to the southeast of that corner. Water has been a continuing issue and realizes that Director Chirpich has done about as much as he can do in the context of the development plan to try to mitigate that issue and it remains a major concern, having had to sweep sewage out of his mother’s basement at least a couple times. He said it has to be part of the equation, realizes it is expensive to mitigate and will require a TIF, which is one of the critical issues, and asked why should the citizens of Columbia Heights and the people in the neighborhood have to pick up tax bills for the services the City and School Board, etc., are going to provide to the people living in the development for 20-25 years and delay the money that should go into the City coffers. He said, at the community meeting that was held earlier, the idea that this is an affordable housing development was promoted, though the developer will not commit -- and City Planning cannot commit -- as to what percentage of that development would be devoted to affordable housing. The relevant statute requires 20% (13 units) of an affordable housing designation and the rest can be market rate; at the community meeting, the developer quoted 100% affordable housing, and Mr. Haluska asked that be put in writing. Then he said he had asked Director Chirpich to put that in the City’s contract with the developer, but he declined and said the verbiage would be what is legally required; so, Mr. Haluska asked how the development can be touted as an affordable housing development if only 13 maximum units of 600 are devoted and said the public is being deceived. He wanted to make it clear that all of the residents in the neighborhood that he is aware of are in favor of affordable housing, but they do not like the way the building is situated. With regard to the shadow study discussed earlier, it shows sunlight in the summer but shadowing in the winter, which blocked out light that residents are used to. He said SACA is a wonderful organization, but it does not have to be conflated with this particular housing development and is a distraction; rather, give SACA a good share of the property for them to develop. According to Minnesota Statute 462.352 subdivision 2, this should require a 2/3 (four out of the five Councilmembers) and is important that it be looked into and considered. It is easily remedied because the statute is triggered by a change to the Comprehensive Plan; and if the Comprehensive Plan is changed to allow a commercial development, then it triggers the obligation for a 2/3 vote. Mr. Haluska said he would be taking the issue up with the State should the vote pass without such a vote. Lastly, he asked that the Council reconsider the project for the sake of the neighborhood and expense to the community going forward to mitigate all the other issues and also to combine the consideration of this development with the proposed development at 4300, because they work together. Steve Johnson said he has been in the City eight years, finds it a special place, lives in affordable housing and is a volunteer and utilizes SACA. Without affordable housing, he said a lot of people have to live under bridges or in tents and if the City could construct a six-story luxury apartment on 42nd and Central Avenue, a 62-unit affordable housing unit can also be constructed on 42nd. Monika Schachern said she thinks moving underground parking entrance and exit away from Jackson is a move in the right direction. Her biggest concern that had not been City of Columbia Heights MINUTES June 14, 2021 City Council Meeting Page 8 brought up this evening was parking, noting that there is no parking allowed on the streets between November and April, and there are typically about 5-12 cars using the current empty lot as unofficial parking spaces. In addition, she said the Fire Department uses that lot for training, so she wonders where they would be doing that should the development be approved, and also the City uses that for snow removal. Lastly, she believes the lot should be used for SACA (as the development does not appear to be affordable housing with rent being $900 for a single-bedroom unit) and would allow SACA to move to a bigger space with more available parking. Sarah Arneson said she echoes the issues raised by previous speakers and is concerned that the traffic study was not done in a wholistic manner with the understanding and recognition of the development that is already underway at 40th and Central as well as the upcoming development at the old Rainbow Foods location. She understands some observational data pulling was done, looking at the type of traffic, but is concerned about the lack of the pedestrian factor, which is a huge safety concern. 30% of the citizen base is under 18 years of age, so they would likely benefit being close to Central Avenue, but there is no good way for them to be able to cross Central and head north if need be. SACA was also not factored into the traffic mix, so Ms. Arneson’s fear is there will be a lot of safety issues and concerns. Living where she does, she has difficulty crossing Central as a pedestrian walking her dog, let alone hundreds of people are added to a very strip of Central. The City is small, being four square miles, and it needs to be well-planned considering all the opportunities within its borders and really make sure it is following established ordinances. Ms. Arneson said the traffic study counted cars, not people, and did not count Central or buses or what traffic is like in the winter, which will open up a lot of other issues. She also questions the development being designated as affordable housing, as an individual (in order to quality) would have to make at the most $32,000 annually and, if approved, 33% of his or her income would go toward the rent – and would it be perpetuating a cycle of poverty, as there would be limited available income to invest and grow. Lastly, she asked whether the small-town appeal of the City would continue after the proposed development was completed. Nancy Kendall said she lives about three blocks from the proposed project. Her goal when moving in 36 years ago was to find a single-family home and wondered why the City does not promote more similar constructions, rather than large multi-level buildings. She asked where kids who live in the proposed development would play. Director Hansen was asked to briefly comment on questions raised by speakers related to the sewer study and provide clarity on how it relates to the bigger project. He reported there is a trunk line that runs along 43rd and connects to 44th Avenue; it discharges west of University Avenue, which is a long line that crosses the entire west half of the City, and Jackson and all of the north-south streets drain into that. City of Columbia Heights MINUTES June 14, 2021 City Council Meeting Page 9 That was looked at from a couple perspectives: existing conditions, with the proposed development, and with a future development being considered. With existing conditions, it is known that existing sewer flow has capacity but the issue is during peaking events, which originate from significant rainfall. Looking at the 62-unit addition, the existing sewer also has capacity for normal flow, but it really does not change much with the peaking issues that are seen now and will likely occur during those rainfall events. The upcoming proposed 550-unit project presents different issues just in terms of overall capacity. Now, alternatives are being analyzed to address capacity issues, in terms of increasing diameter pipe and/or rerouting some of the flow. The intent is to go through those and come up with the most cost-effective recommendation to the Council at likely the July work session. Director Chirpich said there is a corollary between vehicle volumes and times of travel, congestion, and overall pedestrian safety. Mr. Rojer explained that pedestrian counts were collected with the turning movement counts on a typical weekday, in May, when there was only one pedestrian during the morning peak hour at one of the intersections and five pedestrians during the afternoon peak hour. So, there were pedestrians but not a significant amount in the completed analysis. Director Chirpich said there is a COVID overlay for vehicle movements and asked whether there was any type of COVID-related quotient for pedestrian numbers that would be available or studied, as it was anticipated for the vehicle analysis. Mr. Rojer said that was not adjusted, as there is not enough robust data available related to that for pedestrian counts. Regarding TIF, Director Chirpich said it is separate from land use approvals, though they are interrelated and this project is anticipating making an application to the City for TIF assistance. From a land-use perspective, TIF does not come into the evening’s conversation at this time. Related to some assumptions cited by speakers earlier, there has been no designation of this TIF district and it has not been determined that it is 25 years and the tax burden would be placed on City residents. TIF does not equate to an increase in property taxes for residents; the assumption that it withholds tax revenue from other tax jurisdictions is true, which is a policy decision that the City has to weigh when looking at whether the development is valued and the City is willing to make that investment in the future. Without tax increment financing, from staff’s position, the necessary utility updates for stormwater and the like would not take place unless they were funded solely out General Fund revenue, and that would be a taxpayer burden. Also, SACA is a tax exempt facility, so their portion of this property will not pay property taxes; and this is an opportunity to balance that out with a mixed use project concept. Regarding some of the land being used for training and snow removal, etc., those uses do not qualify the Comprehensive Plan’s highest best use of the property. It is guided for transit-oriented mixed-use development, which is what the Comprehensive Plan wants to see on the site, and another place will have to be sought for training and snow removal. As stated at the onset of his report, Director Chirpich said a 4/5 vote is required, which is a City code provision. City of Columbia Heights MINUTES June 14, 2021 City Council Meeting Page 10 So, State statute related to Comprehensive Plan, in staff’s opinion, does not apply to this case. A change is not being suggested to the Comprehensive Plan; this project is specifically in alignment with the goals of the Comprehensive Plan for transient-oriented development, which is this site, a quarter of a mile within Central Avenue and is a mix of retail, office, and higher-density residential. No amendment is needed to the Comprehensive Plan to trigger a 4/5 vote for that amendment, and no amendment is being contemplated. City code does require a 4/5 vote for rezoning of any type. Regarding City townhomes and single-family homes versus apartments, Director Chirpich said the site has been guided for high-density residential for quite a while, which is its underlying zoning designation and is a choice borne out of decisions made by the City Council regarding policy for land use and certainly correlates with the Comprehensive Plan. Other construction options were considered over the past five years in an historical context, when in 2018 an analysis was done of townhomes, single-family homes and multi-family and it was confirmed by the City Council that they wanted to stay with the multi-family designation. One of the layers was a tax basis analysis for the highest and best use, something that would increase the tax base and lower the burden citywide. Regarding apartments not being community based, he said that is a subjective matter. From a comprehensive planning perspective, apartments are an integral part of the community the City is trying to build and is ingrained into the land use patterns of the city center, being one block off Central Avenue in a high-density commercial downtown area, something the Comprehensive Plan is calling for, inviting new residents in the development to be vibrant contributing members of the City. Regarding the parking issue, Director Chirpich said changing the Jackson Street entrance maneuver to internal to the site is “set in stone,” vetted by all City departments, and memorialized in the conditions of approval for the site plan. Parking in general is compliant by the numbers, which is 108 stalls between underground and surface parking. The five to 12 spaces that the resident views on the lot intermittently are actually spaces that are designated to the townhome development through an easement, and the City is in the process of moving the easement as part of this project, negotiating an amendment to just relocate those 11 stalls to a City outlot that is closer to the townhome development, which is right next to a stormwater pond. Parking is accounted for and code compliant, and there are options in the site area to shuffle it better for the townhomes being closer, which is a good maneuver from a safety standpoint. Regarding on-street parking, it may be worthwhile that the Traffic Commission consider designating one side of Jackson as no parking, to eliminate possible congestion. Kyle Brasser, Reuter Walton Development, was asked to speak to the Council about affordability and other questions they may have. Regarding earlier comment that the developer would not commit to the project being 100% affordable; that is not true. He said there was further discussion that potentially the City would somehow not be mandating that or requiring that. City of Columbia Heights MINUTES June 14, 2021 City Council Meeting Page 11 The way these projects are financed are using a federal tool called the “low income housing tax credit,” a federal tax credit that raises equity for the development. Regardless of what the City requires, in order for the developer to finance the development, the federal government will place a land use restriction on the project when closed. It will be in place for a minimum of 30 years, potentially longer, and will be overseen by federal compliance. If the Council would like to place a condition of approval that says this will be 100% affordable, the developer has no objection to that because that is what will be in place already. Councilmember Buesgens asked that Mr. Brasser explain to residents the different levels of affordable housing, with this project being 60% AMI (Area Media Income) . Referring to a resident stating earlier about the maximum earning needed to qualify for this development, Mr. Brasser said he would classify the project more as a workforce affordable community, so the maximum allowable income would be about $60,000 annually, about 60% of the AMI and not as deep of an affordability as the 30% that was cited earlier. Director Chirpich had one additional comment about why include SACA and not the apartments. He stated that it would actually be a trigger for a Comprehensive Plan amendment because it would deviate from the specific guidance for transient-oriented development, which calls for the integration and the whole nexus of this proposal, to find a way to integrate them. Zoning for commercial on that site would be uphill battle from many perspectives, most definitely not streamlined, and require a 4/5 vote because it would be a rezoning. Outside of that, he said the proposal fails to pass and SACA does not have a home in this project, Reuter Walton is under contract to purchase the site from the City and has another year to resubmit for a straight R4 proposal that is both consistent with the Comprehensive Plan and standard zoning for R4. It is complicated but the interrelation was borne out of a specific goal set within the Comprehensive Plan. SACA does not stand on its own on a stronger footing than the apartments do, and it would be difficult for City staff to find a way to craft a proposal for a SACA-only project. Ms. Schachern then asked if there was a possibility to decrease the size of the apartment complex, as an example from 62 units to 42, and also accommodate SACA. Director Chirpich said, at this juncture, this evening’s approval cannot accommodate that request. She also asked about the timeline for opening the facility. Director Chirpich said if the ordinance is approved this evening, then the entitlements and land use approvals are in place so that the developer may finalize the rest of their funding and move forward. Then, SACA has a different timeline than Reuter Walton and is waiting for the evening’s decision so they can fully move forward on the design on their plans; they would then come back through all of the same process Reuter Walton went through for their component of the project. Reuter Walton would like to begin construction this year and SACA would as well, but there are a lot of variables as to how that might fall. Mr. Brasser confirmed that construction would start at the earliest at the end of 2021, which is an approximate 14-month construction period and would be finished at the beginning of 2023 on the current projected schedule. City of Columbia Heights MINUTES June 14, 2021 City Council Meeting Page 12 Motion by Councilmember Buesgens, seconded by Councilmember Novitsky, to close the public hearing and waive the reading of Ordinance No. 1666, there being ample copies available to the public. All Ayes, Motion Carried 5-0. Motion by Councilmember Buesgens, seconded by Councilmember Jacobs, to approve Ordinance No. 1666, being an ordinance pertaining to the rezoning of certain property located at 825 41st Avenue NE from Multiple-Family Residential District to PUD, Planned Unit Development District No. 2021-01, for May 24, 2021, and direct staff to send a summary of the ordinance as presented, for publication in the legal newspaper. All Ayes, Motion Carried 5-0. 11. Approval of Planned Unit Development District Plan for Reuter Walton Development Motion by Councilmember Jacobs, seconded by Councilmember Buesgens, to close the public hearing and waive the reading of Resolution No. 2021-47, there being ample copies available to the public. All Ayes, Motion Carried 5-0. Motion by Councilmember Jacobs, seconded by Councilmember Novitsky, to approve Resolution No. 2021-47, a resolution of the City Council for the City of Columbia Heights, Minnesota, approving PUD, Planned Unit Development District Plan, for a portion of property located at 825 41st Avenue NE in the City of Columbia Heights, Minnesota, subject to the conditions stated in the resolution. All Ayes, Motion Carried 5-0. 12. Resolution No. 2021-44, Resolution No. 2021-45, and Resolution No. 2021-46, Resolutions Approving Easement Vacations and Preliminary Plat for Property Located at 825 41st Avenue NE Motion by Councilmember Novitsky, seconded by Councilmember Jacobs, to close the public hearing for Resolution Nos. 2021-44, 2021-45, and 2021-46, there being ample copies available to the public. All Ayes, Motion Carried 5-0. Motion by Councilmember Novitsky, seconded by Councilmember Murzyn, Jr., to waive the reading of Resolution No. 2021-44, Preliminary Plat Approval, there being ample copies available to the public. All Ayes, Motion Carried 5-0. Motion by Councilmember Novitsky, seconded by Councilmember Jacobs, to approve Resolution No. 2021-44, approving the Preliminary Plat for a Planned Unit Development District located in the City of Columbia Heights, Minnesota, subject to the conditions stated in the resolution. All Ayes, Motion Carried 5-0. Motion by Councilmember Novitsky, seconded by Councilmember Buesgens, to waive the reading of Resolution No. 2021-45, Easement Vacation, there being ample copies available to the public. All Ayes, Motion Carried 5-0. City of Columbia Heights MINUTES June 14, 2021 City Council Meeting Page 13 Motion by Councilmember Buesgens, seconded by Councilmember Novitsky, to approve Resolution No. 2021-45, approving an easement vacation for property located in the City of Columbia Heights, Minnesota, subject to the conditions stated in the resolution. All Ayes, Motion Carried 5-0. Motion by Councilmember Buesgens, seconded by Councilmember Novitsky, to waive the reading of Resolution No. 2021-46, Easement Vacation, there being ample copies available to the public. All Ayes, Motion Carried 5-0. Motion by Councilmember Buesgens, seconded by Councilmember Jacobs, to approve Resolution No. 2021-46, approving an easement vacation for property located in the City of Columbia Heights, Minnesota, subject to the conditions stated in the resolution. All Ayes, Motion Carried 5-0. 13. Establishment of the Alatus TIF District at 4300 Central Avenue NE Director Chirpich said the establishment of a TIF district at 4300 Central Avenue NE is identical to the approvals just heard by the EDA last week as far as establishing this TIF district. What will not be addressed will be the decertification of the underlying Hy-Vee district, as the City Council does not have to do that as that power lies with the EDA. To support the proposal for 4300 Central Avenue NE, he reported Alatus LLC, has requested public financial assistance in the form of tax increment financing for the redevelopment of the property located at 4300 Central Avenue NE. There are several details still being discussed and reviewed between staff, Ehlers and Alatus to verify the full extent of assistance needed. The possible uses for which TIF assistance is being considered include; land/building acquisition, public improvements, utilities, and demolition. Within the city of Columbia Heights, the Economic Development Authority is authorized to exercise TIF powers; however, the EDA may not exercise said TIF powers without prior approval of the City Council. Previously, the EDA and the Council established a redevelopment project designated as the Downtown Central Business District Revitalization Plan. The revitalization plan has encouraged development and redevelopment along Central Avenue; however, modifications to the plan must be made to encompass the potential development being proposed by Alatus. The TIF Plan being reviewed tonight is merely a planning document that reflects the maximum potential of the proposed TIF district. The plan in no way constitutes the terms, length, or dollar amount of the proposed TIF district. The term, length, and dollar amount will be part of a separate document, called the Contract for Private Redevelopment. The structure of the proposed TIF district and the general outline of the project being contemplated by Alatus are detailed in the TIF Plan. The project concept includes the development of 400 to 600 apartments, open space/parkland, single-family homes, and up to 80,000 square feet of commercial/retail space. City of Columbia Heights MINUTES June 14, 2021 City Council Meeting Page 14 The maximum duration of the TIF District is 26 years, and the estimated annual tax increment is $1,928,397. Ehlers has completed the TIF Plan on behalf of the city. TIF is a public financial assistance method used to offset qualified cost of development by using a portion of the future tax revenue generated from the development within the TIF district. When a TIF district is created, the current value of all the taxable property within the TIF district is frozen at the current base value. Over the life span of the TIF district, the County, City and School District still collect property taxes from the frozen base value; but as the development increases the taxable property value within the TIF district, the increased amount above the frozen base value is the tax increment -- and this tax increment is what reimburses the developer for the qualified costs of development. Mayor Márquez Simula opened the public hearing. Mr. Johansen said, according to Minnesota Statute 469.175, there is a timeline to which the TIF plan has to be presented to the County, School Board and City Council prior to the public hearing and has to be published in the newspaper or some kind of media for citizens to review. He said he is unaware there having been something mass produced as a notification for the City, so that would be a violation of that statute. Director Chirpich said that statute has been met, as the notice was published in the paper for the public hearing and the tax jurisdictions directly notified, those being the County and School District. He said staff gave a presentation to the County Board a few weeks ago; and once they received the notice, they offered the City staff to update them on this proposal. The School District did not request a similar audience, but both bodies were notified and the City has an affidavit that the Life Newspaper publication was done. Mr. Johansen asked for the specific date when it was published, and Director Chirpich said he would email the affidavit to him. Mr. Johansen then added that there is a ten-day minimum notice to the public and a maximum of 30-day notice. Mr. Haluska said it was stated at a previous meeting that all Columbia Heights is a TIF project and asked why the proposed project has to be designated as a TIF district and not the 42nd and Jackson development. Director Chirpich said it will have to be done for 42nd and Jackson but the City has not gotten to that point, so the same process will be in place. Mr. Haluska asked what the estimated value of the project will be when completed, and Director Chirpich quoted $140 to $150 million. Mr. Haluska is the single-family houses are attached or detached or condos, and Director Chirpich the project is in its preliminary stage as a single-family detached owner-occupied subdivision of approximately 26 homes. He said many things could change and cautioned everyone that it is being proposed on a stormwater pond and there will be a lot of engineering vetting to make that piece possible. Mr. Haluska asked when the first step in the Jackson Street process will occur. Director Chirpich stated that, with the successful land use approvals this evening, Reuter Walton will move into that process immediately and they have made a formal application to the City and made their deposit to initiate the process. City of Columbia Heights MINUTES June 14, 2021 City Council Meeting Page 15 The project’s public finance consultant, Ehlers, is currently working on it, though they do not have anything yet to present; it will likely be first reviewed at the EDA and Council meetings in July. Mr. Haluska thanked City staff for the community meeting earlier. Motion by Councilmember Jacobs, seconded by Councilmember Novitsky, to close the public hearing and waive the reading of Resolution No. 2021-52, there being ample copies available to the public. All Ayes, Motion Carried 5-0. Motion by Councilmember Jacobs, seconded by Councilmember Murzyn, Jr., to adopt Resolution No. 2021-52, a resolution adopting a modification to the downtown CBD revitalization plan for the downtown central business redevelopment project, establishing the Alatus TIF district therein, and adopting a tax increment financing plan therefor. All Ayes, Motion Carried 5-0. ITEMS FOR CONSIDERATION Ordinances and Resolutions 14. Second Reading of Ordinance No. 1667, an Ordinance Amending Chapter 5.3 of the Columbia Heights City Code to Update the Legal Age Required to Purchase Tobacco and Prohibit Smoking and Sampling Indoors Director Chirpich explained that, in summary, Ordinance No. 1667 seeks to two things: 1) to update the legal age to require tobacco within the City, which would be consistent with State law that changed it to 21 in 2020, and 2) prohibit smoking and sampling indoors for all public spaces within the City. As background, in late 2020, the Columbia Heights Police Department completed compliance checks on licensed tobacco sales establishments in the City. These compliance checks resulted in two citations for tobacco sales to minors. The report of those violations prompted a broader conversation by City Council members and staff regarding tobacco sales and consumption regulation within the City, specifically the regulation of indoor smoking and sampling. At the January 4, 2021, Council work session, staff presented the City Council with an overview of State laws that regulate indoor smoking and provided a summary analysis of indoor smoking regulations found in 23 nearby cities. Smoking and sampling of tobacco products are covered under MN State Statutes §144.412 through §144.417. Collectively, these Statutes are known as the Clean Air Act. Minnesota State law expressly prohibits the smoking of tobacco or electronic devices containing nicotine within public spaces or places of employment but does not prohibit sampling. However, State Statute does allow for cities to establish stricter regulations which are shown in the research conducted by staff. Of the cities surveyed, 20 have restated the Clean Air Act ban on indoor smoking and 15 cities further establish direct prohibitions on sampling. Following deliberation at the January 4, 2021, Council work session, the Council directed staff to present ordinance amendments to City Code to clearly prohibit indoor smoking and sampling within the City. City of Columbia Heights MINUTES June 14, 2021 City Council Meeting Page 16 During staff’s research on the City’s regulation of tobacco, staff found that the minimum age to purchase tobacco is currently listed at 18 within City Code. In 2020, the State of Minnesota increased the minimum age to purchase tobacco from 18 to 21. Therefore, the City needs to amend the Columbia Heights City Code to reflect the recent changes in State law and bring the City into compliance. On May 24, 2021, the City Council held a public hearing to review Ordinance 1667 which includes the proposed amendments related to tobacco regulations discussed above. The Council unanimously recommended approval of Ordinance 1667 on first consideration and set the second reading of the ordinance for June 14, 2021. Since that public hearing, staff has received nine unsolicited letters from various public health agencies and interest groups who support the proposed ordinance amendments. They also went on to suggest additional ordinance updates that the City may consider, which are not included in the evening’s proposed ordinance, relating to purchase use and possession penalties, asking the City to consider stop penalizing youth for purchasing and using tobacco because it is seen more as a responsibility of retailers. Staff could put forth as ordinance amendment for Council review at a later date. Again, in summary, as directed by the Council, Ordinance No. 1667 seeks to make the following amendments to the Columbia Heights City Code relating to tobacco regulations: • Set the legal minimum age to purchase tobacco within the City at 21 • Prohibit indoor smoking and sampling The proposed ordinance stipulates that the sampling prohibition will take effect on January 1, 2022 Staff recommends approval of Ordinance No. 1667, on second consideration. Motion by Councilmember Novitsky, seconded by Councilmember Murzyn, Jr., to waive the reading of Ordinance No. 1667, there being ample copies available to the public. All Ayes, Motion Carried 5-0. Motion by Councilmember Novitsky, seconded by Councilmember Murzyn, Jr., to approve Ordinance No. 1667, being an ordinance amending Chapter 5.3 of the Columbia Heights City Code to update the legal age to purchase tobacco, prohibit smoking and sampling indoors, and direct staff to send a summary of the ordinance as presented, for publication in the legal newspaper. All Ayes, Motion Carried 5-0. CITY COUNCIL AND ADMINISTRATIVE REPORTS Report of the City Council Councilmember Buesgens has continued to volunteer at the Blooming Sunshine Garden at Lomiaki Park, which is open to the public on Tuesday evenings from 5:30 pm on to help, if interested. City of Columbia Heights MINUTES June 14, 2021 City Council Meeting Page 17 She continues to work with the Beautification Committee, taking care of the flowerpots at Murzyn Hall and City Hall, which has been a lot of watering the last three weeks. Attended the “Music in the Park,” which featured the Tkach Band,” and there was a good turnout and a lot of fun; she believed July 7 would be the next scheduled event, which can be confirmed on the City website, and noted that it is free. Attended the Northpark Elementary School’s graduation and said it was great to see all the families and kids celebrating the end of the school year. She attended the June 8 School Board meeting and a Council training session and the neighborhood meeting for the proposed project that was voted on this evening for the affordable housing. Councilmember Jacobs attended the “Music in the Park” and agreed with everything Councilmember said about it, perfect to see everyone there and able to attend without masking. She attended the Met Council annual meeting, the 42nd Avenue community meeting this past week, the East African community meeting. Helped nine residents with reach-outs and did go over to a property that was cited in an email to her about it this past week. Attended “Racism as an Injustice” in the LGBTQ community and an additional one for the Native American community. Lastly, she is painting at Huset Park at the Jefferson building at 9:00 am on Wednesday and said painters are being sought – adding that no drawing would be involved. Councilmember Novitsky congratulated this year’s graduates and thanked everyone for the community output given for their party afterwards. There were garage sales this weekend and said residents did a good job, and said the City did a good job providing addresses for their sale sites. Planning continues for the upcoming Jamboree, with the parade on Friday, fireworks on Saturday, and waffle breakfast on Sunday; and the Lions is seeking help with admissions gate. Councilmember Murzyn, Jr. that there will be a car show in the back lot behind Murzyn Hall on the Saturday evening of the Jamboree, with registration open at 3:00 pm and the event will be 4:00-8:00 pm. He then wishes all the fathers a “Happy Father’s Day,” and the VFW will be having a breakfast on June 20 from 9:00 am to 1:00 pm. Mayor Márquez Simula also attended the “Music in the Park,” which she said was fantastic, there was a food truck, the Lions were selling beverages as a fundraiser, and three high school students did a great job singing. She reported that she, Councilmembers Jacobs and Novitsky, and City staff toured the Circle Terrace building to look at adding programming for the community, which has opened a lot of good conversation about what can be done in community outreach. She volunteered at the Northpark Elementary School, which had a project on planning “I Promise Garden” for native plants, part of the Mayor’s Monarch Pledge, and said Councilmember Buesgens helped with that as well. She attended a Columbia Heights Business Council meeting in the Chambers, which was the first one back in person. About a dozen people attended an outdoor Zumba class on Saturday morning, which was the first partnership between the Public School District and the Recreation Department. Tuesday night Blooming Hearts Garden at the High School has a tour, as part of the Monarch Pledge; and on Wednesday night the MWMO has a pollinator class, as part of the Pledge as well, and that information is on the City website under “Monarchs.” Report of the City Manager Manager Bourgeois reported there was good attendance at the first “Music in the Park,” with over 200 City of Columbia Heights MINUTES June 14, 2021 City Council Meeting Page 18 in attendance; the band “Wander North” will be performing at the July 7 event from 6:30-8:00 pm. There were over 80 participating garage sales last weekend, and she thanked everyone who participated, either by hosting or attending and purchasing from those folks. The “Arden Info Fair,” previously known as the “Community Picnic,” will be held on Thursday, June 24, from 5:00-7:30 pm and a portion of Mill Street will be closed off for the event; and there will be booths along the street as well as near the splash pad. At 6:00 pm that evening, the Somali dance troupe will be performing. Reservations are being taken for booth signups or art/craft vendors until June 17. Report of the City Attorney Attorney Hoeft had no update. COMMUNITY FORUM There were not any speakers. ADJOURNMENT Motion by Councilmember Murzyn, Jr., seconded by Councilmember Jacobs, to adjourn. All Ayes, Motion Carried 5-0. Meeting adjourned at 9:06 pm. Respectfully Submitted, ______________________________________ Nicole Tingley, City Clerk/Council Secretary