HomeMy WebLinkAbout2022-035CITY OF COLUMBIA HEIGHTS, MINNESOTA
RESOLUTION NO.2022-35
PROVIDING FINAL AUTHORIZATION FOR THE ISSUANCE, SALE, AND
DELIVERY OF MULITIFAMILY HOUSING REVENUE BONDS OR OTHER
OBLIGATIONS TO FINANCE THE COSTS OF A MULTIFAMILY HOUSING
DEVELOPMENT; APPROVING THE FORMS OF AND AUTHORIZING THE
EXECUTION AND DELIVERY OF THE OBLIGATIONS AND RELATED
DOCUMENTS; APPROVING A HOUSING PROGRAM UNDER MINNESOTA
STATUTES, CHAPTER 462C, AS AMENDED; PROVIDING FOR THE
SECURITY, RIGHTS, AND REMEDIES WITH RESPECT TO THE
OBLIGATIONS; AND TAKING CERTAIN OTHER ACTIONS
BE IT RESOLVED by the City Council (the "Council") of the City of Columbia Heights,
Minnesota (the "City" or "Issuer"), as follows:
Section 1. Recitals.
1.01. The City is a home rule charter city duly organized and existing under its Charter and the
Constitution and laws of the State of Minnesota.
1.02. Pursuant to Minnesota Statutes, Chapter 462C, as amended (the "Act"), the City is
authorized to carry out the public purposes described in the Act by providing for the issuance of revenue
bonds or other obligations to finance or refinance multifamily housing developments located within the
City.
1.03. Section 147(f) of the Internal Revenue Code of 1986, as amended (the "Code"), and
regulations promulgated thereunder, require that prior to the issuance of the Obligations, the Council
approve the Obligations after conducting a public hearing thereon preceded by publication of a notice of
public hearing in the form and method required by Section 147(f) of the Code and applicable regulations,
which includes publication in a newspaper of general circulation at least seven (7) days prior to the public
hearing date. Section 462C.04 of the Act requires that, as a condition to the issuance of the Obligations, a
public hearing must be held on a housing program providing the information required by Section 462C.03,
subdivision 1 a of the Act after one publication of notice in a newspaper circulating generally in the City at
least fifteen (15) days before the hearing.
1.04. On June 22, 2021, the Council adopted Resolution No. 2021-53 (the "Preliminary
Resolution") under the terms of which the Council (i) granted preliminary approval to the issuance of
multifamily housing revenue bonds or other obligations (the "Obligations"), in the aggregate principal
amount not to exceed $11,000,000, under the terms of the Act for the benefit of 825 41st Ave Limited
Partnership, or its affiliates or assigns (now formally created as entity known as 42 Central Limited
Partnership, a Minnesota limited partnership) (the "Borrower"), to finance the acquisition, construction and
equipping of an approximately 62-unit workforce multifamily rental housing development and facilities
functionally related and subordinate thereto, comprised of one four-story apartment building including one,
two, and three -bedroom units, with both surface lot and below -ground parking, and other amenities,
including multiple gathering spaces and an outdoor playground, to be located at 825 41 st Avenue City
(now to be located at 800 42nd Avenue NE in the City as a result of replatting) (the Project"); (ii)
authorized the submission of an application for an allocation of bonding authority of the State of Minnesota
pursuant to Section 146 of the Code and in accordance with the requirements of the Allocation Act; (iii)
authorized the preparation of a housing program (the "Housing Program") to be submitted to the
Metropolitan Council for its review and comment; and (iv) stated the official intent of the City to reimburse
the Borrower for expenditures made for costs of the Project from the proceeds of tax-exempt bonds or other
obligations under Section 1.150-2 of the Treasury Regulations.
1.05. The Preliminary Resolution constitutes a reimbursement resolution and an official intent
of the Issuer to reimburse expenditures with respect to the Project from the proceeds of tax-exempt revenue
obligations in accordance with the provisions of Section 1.150-2 of the Regulations.
1.06. In accordance with the requirements of the Act and the Code, a notice of public hearing in
the form required by the Act and Section 147(f) of the Code was published in The Life, the official
newspaper of the City and a newspaper of general circulation in the City, at least fifteen (15) days before
the public hearing.
1.07. In accordance with the requirements of Section 462C.04 of the Act, the Housing Program
was submitted to Metropolitan Council for its review and comment on or before the date of publication of
the notice of public hearing.
1.08 In accordance with the authority granted under the Preliminary Resolution, the City, in
cooperation with the Borrower, submitted an application for an allocation of bonding authority to MMB.
The City received Certificate of Allocation No. 422, dated January 11, 2022 (the "Allocation Certificate"),
from MMB allocating bonding authority to the City in the amount of $9,866,800.
1.09. On the date hereof the Council held a public hearing at which a reasonable opportunity was
provided for interested individuals to express their views, both orally and in writing, with respect to the
Project, the Housing Program and the proposed issuance of the Obligations in accordance with the
requirements of Section 462C.04, subdivision 2 of the Act and Section 147(f) of the Code.
1.10. The obligations shall not constitute a debt of the City within the meaning of any state
constitutional provision or statutory limitation, the Obligations shall not constitute or give rise to a charge
against the general credit or taxing powers of the City, the Obligations shall not constitute or give rise to a
pecuniary liability of the City, and the Obligations shall be payable solely out of any funds and properties
expressly pledged as security therefor.
Section 2. Findings. Determinations. and Declarations. Based on representations made by the
Borrower to the Issuer to date, the Council hereby makes the following findings, determinations, and
declarations:
2.01. The Project constitutes a "qualified residential rental project" within the meaning of
Section 142(d) of the Code, and a "multifamily housing development" authorized by the Act, and furthers
the purposes of the Act. The purpose of the Project is, and the effect thereof will be, to promote the public
welfare by the acquisition and construction of a facility for use as a multifamily housing development
designed primarily for occupancy by persons of low and moderate income.
2.02. The Issuer hereby authorizes the Borrower, in accordance with the provisions of the Act to
provide for the development of the Project and the payment of the costs of the Project by such means as
shall be available to the Borrower and in the manner determined by the Borrower.
Section 3. Adoption of Housing Program. The Housing Program prepared pursuant to the
Preliminary Resolution and submission thereof to the Metropolitan Council for its review and comment is
hereby ratified, confirmed, and approved in all respects. The City Manager is hereby authorized to do all
2
other things and take all other actions as may be necessary or appropriate to carry out the Housing Program
in accordance with the Act and any other applicable laws and regulations. Pursuant to the Housing Program,
either (i) forty percent (40%) of the housing units in the Project will be held for occupancy by families or
individuals with adjusted gross income not in excess of sixty percent (60%) of median family income,
adjusted for family size; or (ii) twenty percent (20%) of the housing units will be held for occupancy by
families or individuals with adjusted gross income not in excess of fifty percent (50%) of median family
income, adjusted for family size.
Section 4. Authorization to Issue the Obligations, Approving the Forms of and Authorizing
the Execution and Del iveEy of the Obligations and Related Documents-, Providing for the Securi1y Rights,
and Remedies with Respect to the Bonds.
4.01. For the purpose of financing all or a portion of the costs of the acquisition, construction,
and equipping of the Project and related costs, the issuance of the Obligations in accordance with the terms
and conditions of the Act, the Housing Program, and this resolution, in an aggregate principal amount not
to exceed $11,000,000, is hereby approved.
4.02. The Obligations may be issued in any number of series, as determined in the discretion of
the Mayor and the City Manager of the City (together, the "City Officials").
4.03. The Obligations, substantially in the form set forth in an Indenture of Trust (the
"Indenture") between the City and U.S. Bank Trust Company, National Association, a national banking
association (the "Trustee"), now on file with the City, are hereby approved with the amendments referenced
herein.
4.04. The Indenture is hereby approved, and the City Officials are hereby authorized to execute
and deliver the Indenture on behalf of the City. All of the provisions of the Indenture, when executed and
delivered as authorized herein, shall be deemed to be a part of this resolution as fully and to the same extent
as if incorporated verbatim herein and shall be in full force and effect from the date of execution and
delivery thereof. The Indenture shall be substantially in the form now on file with the City with such
necessary and appropriate variations, omissions, and insertions as do not materially change the substance
thereof, as the City Officials in their discretion, shall determine, and the execution and delivery thereof by
the City Officials shall be conclusive evidence of such determination.
4.05. The proceeds derived from the sale of the Obligations are to be loaned by the City to the
Borrower under the terms of a Loan Agreement (the "Loan Agreement") between the City and the
Borrower. The Loan Agreement is hereby approved, and the City Officials are hereby authorized to execute
and deliver the Loan Agreement on behalf of the City. All of the provisions of the Loan Agreement, when
executed and delivered as authorized herein, shall be deemed to be a part of this resolution as fully and to
the same extent as if incorporated verbatim herein and shall be in full force and effect from the date of
execution and delivery thereof. The Loan Agreement shall be substantially in the form now on file with the
City with such necessary and appropriate variations, omissions, and insertions as do not materially change
the substance thereof, as the City Officials, in their discretion, shall determine, and the execution and
delivery thereof by the City Officials shall be conclusive evidence of such determination. The proceeds of
the loan to be made under the terms of the Loan Agreement (the "Loan") are hereby authorized to be applied
to the payment of a portion of the costs of the acquisition, construction, and equipping of the Project and
related costs, the financing of capitalized interest during construction of the Project, the funding of any
required reserves, and the payment of costs of issuance.
4.06. The Borrower's repayment obligations under the Loan Agreement will be evidenced by a
Promissory Note delivered by the Borrower to the City (the "Note"), which will be assigned by the City to
the Trustee pursuant to an assignment thereof (the "Note Assignment").
4.07. To ensure continuing compliance with certain rental and occupancy restrictions imposed
by the Act, Minnesota Statutes, Chapter 474A, as amended (the "Allocation Act"), and Section 142(d) of
the Code, and to ensure continuing compliance with certain restrictions imposed by the City, the City
Officials are hereby authorized and directed to execute and deliver a Regulatory Agreement (the
"Regulatory Agreement") between the City, the Borrower, and the Trustee. The Regulatory Agreement
shall be substantially in the form now on file with the City, which is hereby approved, with such omissions
and insertions as do not materially change the substance thereof, as the City Officials, in their discretion,
shall determine, and the execution thereof by the City Officials shall be conclusive evidence of such
determination. All of the provisions of the Regulatory Agreement, when executed and delivered as
authorized herein, shall be deemed to be a part of this resolution as fully and to the same extent as if
incorporated verbatim herein and shall be in full force and effect from the date of execution and delivery
thereof.
4.08. The City acknowledges, finds, determines, and declares that the issuance of the Obligations
is authorized by the Act and is consistent with the purposes of the Act and that the issuance of the
Obligations, and the other actions of the City under this resolution and the Loan Agreement constitute a
public purpose and are in the interests of the City. In authorizing the issuance of the Obligations for the
financing of the Project and related costs, the City's purpose is, and the effect thereof will be, to promote
the public welfare of the City and its residents by providing multifamily housing developments for low and
moderate -income residents of the City and otherwise furthering the purposes and policies of the Act.
4.09. The City hereby authorizes the Obligations to be issued as "taxable bonds" or as "tax-
exempt bonds" the interest on which is not includable in gross income for federal income tax purposes and
net taxable income of individuals, trusts, and estates for State of Minnesota income tax purposes.
4.11. All of the provisions of the Obligations, when executed as authorized herein, shall be
deemed to be a part of this resolution as fully and to the same extent as if incorporated verbatim herein and
shall be in full force and effect from the date of execution and delivery thereof. The Obligations shall bear
interest at the rates, shall be designated, shall be numbered, shall be dated, shall mature, shall be issued in
the aggregate principal amount, shall be subject to redemption prior to maturity, shall be in such form, and
shall have such other terms, details, and provisions as are prescribed in the Indenture, in the form now on
file with the City, which form is hereby approved, with such necessary and appropriate variations,
omissions, and insertions (including changes to the aggregate principal amount of the Obligations, the stated
maturities of the Obligations, the interest rates on the Obligations, and the terms of redemption of the
Obligations) as the City Officials, in their discretion, shall determine. The execution of the Obligations with
the manual or facsimile signature of the City Officials and the delivery of the Obligations by the City shall
be conclusive evidence of such determination.
4.12. The Obligations shall not constitute general or moral obligations of the City but shall be
special, limited obligations of the City payable solely from the revenues provided by the Borrower under
the terms of the Loan Agreement and from the revenues and security pledged, assigned, and granted under
the terms of this resolution, the Obligations, the Loan Agreement, and any other security documents
provided by the Borrower or any other party to secure the timely payment of the principal of, premium, if
any, and interest on the Obligations. As provided in the Loan Agreement, the Obligations shall not be
payable from or charged upon any funds other than the revenue pledged to their payment, nor shall the City
be subject to any liability thereon, except as otherwise provided in this paragraph. No holder of the
Obligations shall ever have the right to compel any exercise by the City of any taxing powers of the City to
4
pay the Obligations or the interest or premium thereon, or to enforce payment thereof against any property
of the City except the interests of the City in the Loan Agreement and the revenues and assets thereunder,
which will be assigned to the Trustee under the terms of the Indenture.
4.13. The City acknowledges and hereby approves any one or more security documents,
including but not limited to the Note. All such security documents, if any are delivered, shall be substantially
in the forms authorized and approved by the Borrower.
4.14. The Obligations, when executed and delivered, shall contain a recital that they are issued
in accordance with the Act, and such recital shall be conclusive evidence of the validity of the Obligations
and the regularity of the issuance thereof, and that all acts, conditions, and things required by the laws of
the State of Minnesota relating to the adoption of this resolution, to the issuance of the Obligations, and to
the execution of the aforementioned documents to happen, exist, and be performed precedent to the
execution of the aforementioned documents have happened, exist, and have been performed as so required
by law. The Obligations shall also recite that the Obligations, including interest and premium, if any,
thereon, are payable solely from the revenues and assets pledged to the payment thereof, and the Obligations
shall not constitute a debt of the City within the meaning of any constitutional or statutory limitations.
4.15 The City Officials are hereby designated as the representatives of the City with respect to
the issuance of the Obligations and the transactions related thereto. The City Manager is authorized, upon
request, to furnish certified copies of all proceedings and records of the City relating to the Obligations, and
such other affidavits and certificates as may be required to show the facts relating to the Obligations as such
facts appear from the books and records in the custody and control of the City; and all such certified copies,
certificates, and affidavits, including any heretofore furnished, shall constitute representations of the City
as to the truth of all statements contained therein. The City Officials are hereby further authorized to execute
and deliver, on behalf of the City, all other certificates, instruments, and other written documents that may
be requested by Kennedy & Graven, Chartered, as bond counsel to the City ("Bond Counsel"), the Trustee,
the Borrower, or other persons or entities in conjunction with the issuance of the Obligations and the
expenditure of the proceeds of the Obligations. Without imposing any limitations on the scope of the
preceding sentence, the City Officials are specifically authorized to execute and deliver such other
documents and certificates as are necessary or appropriate in connection with the issuance, sale, and
delivery of the Obligations, including a Bond Purchase Agreement between the City, the Borrower, and
Colliers Securities LLC, as original purchaser of one or more series of the Obligations (the "Underwriter"),
an assignment of Note, if necessary, one or more general certificates of the City, an Information Return for
Tax -Exempt Private Activity Bond Issues, Form 8038, with respect to the Obligations, an endorsement to
any tax certificates as to arbitrage, rebate, and other federal tax matters executed and delivered in connection
with the issuance of the Obligations, appropriate amendments to the Housing Program, and all other
documents and certificates as the City Officials shall deem to be necessary or appropriate in connection
with the issuance, sale, and delivery of the Obligations (the "Financing Documents"). The City Officials
are hereby further authorized and directed to execute and deliver all other instruments and documents
necessary to accomplish the purposes for which the Obligations are to be issued.
Section 5. Additional Findings and Certifications.
5.01 The City will not participate in the preparation or distribution of any official statements or
other disclosure documents relating to the offer and sale of the Obligations (the "Disclosure Documents"),
except only for certain information relating specifically to the City as approved by the City Officials, and
will make no independent investigation with respect to the information contained in the Disclosure
Documents, including the appendices thereto, and the City assumes no responsibility for the sufficiency,
accuracy, or completeness of such information. Subject to the foregoing, the City hereby consents to the
distribution and the use by the Underwriter of the Disclosure Documents in connection with the offer and
sale of series of the Obligations to be offered and sold pursuant to such Disclosure Documents. The
Disclosure Documents are the sole materials consented to by the City for use in connection with the offer
and sale of the Obligations.
5.02 The authority to approve, execute and deliver future amendments to the Financing
Documents and consents required under the Financing Documents is hereby delegated to the City Officials,
subject to the following conditions: (a) such amendments or consents do not materially adversely affect
the interests of the City; (b) such amendments or consents do not contravene or violate any policy of the
City, (c) such amendments or consents do not require the consent of the holder or such consent has been
obtained; and (d) such amendments or consents are acceptable in form and substance to Bond Counsel and
the City attorney. The authorization hereby given shall be further construed as authorization for the
execution and delivery of such certificates and related items as may be required to demonstrate compliance
with the agreements being amended and the terms of this resolution. The execution of any instrument by
the City Manager shall be conclusive evidence of the approval of such instruments in accordance with the
terms hereof. In the absence of the City Manager, any instrument authorized by this paragraph to be
executed and delivered may be executed by the officer of the City authorized to act in his or her place and
stead. The City Manager may impose any terms or conditions on the execution and delivery of any such
amendment or supplement as the City Manager deems appropriate.
5.03 No covenant, stipulation, obligation, or agreement herein contained or contained in the
aforementioned documents shall be deemed to be a covenant, stipulation, obligation, or agreement of any
member of the Council of the City, or any officer, agent, or employee of the City in that person's individual
capacity, and neither the Council of the City nor any officer, agent, or employee executing the Obligations
or any such documents shall be personally liable on the Obligations or such documents or be subject to any
personal liability or accountability by reason of the issuance of the Obligations or the execution and delivery
of such documents. No provision, covenant, or agreement contained in the aforementioned documents, the
Obligations, or in any other document relating to the Obligations, and no obligation therein or herein
imposed upon the City or the breach thereof, shall constitute or give rise to a general or moral obligation of
the City or any pecuniary liability of the City or any charge upon its general credit or taxing powers. In
making the agreements, provisions, covenants, and representations set forth in such documents, the City
has not obligated itself to pay or remit any funds or revenues, other than funds and revenues derived from
the Loan Agreement, which are to be applied to the payment of the Obligations, as provided therein.
5.04 Except as herein otherwise expressly provided, nothing in this resolution or in the
aforementioned documents expressed or implied, is intended or shall be construed to confer upon any
person or firm or corporation, other than the City, and any holders of the Obligations issued under the
provisions of this resolution, any right, remedy or claim, legal or equitable, under and by reason of this
resolution or any provisions hereof, this resolution, the aforementioned documents, and all of their
provisions being intended to be and being for the sole and exclusive benefit of the City, the Borrower, the
Underwriter, and any beneficial owners from time to time of the Obligations issued under the provisions of
this resolution.
5.05 In case any one or more of the provisions of this resolution, other than the provisions
limiting the liability of the City, or of the aforementioned documents, or of the Obligations issued hereunder
shall for any reason be held to be illegal or invalid, such illegality or invalidity shall not affect any other
provision of this resolution, or of the aforementioned documents, or of the Obligations, but this resolution,
the aforementioned documents, and the Obligations shall be construed and endorsed as if such illegal or
invalid provisions had not been contained therein.
5.06 In anticipation of the issuance of the Obligations to finance all or a portion of the Project,
and in order that completion of the Project will not be unduly delayed when approved, the Borrower is
hereby authorized to make such expenditures and advances toward payment of that portion of the costs of
the Project to be financed from the proceeds of the Obligations, as the Borrower considers necessary,
including the use of interim, short-term financing, subject to reimbursement from the proceeds of the
Obligations if and when delivered but otherwise without liability on the part of the City.
5.07 The officers of the City, Bond Counsel, the City attorney, other attorneys, and other agents
or employees of the City are hereby authorized to do all acts and things required of them by or in connection
with this resolution, the aforementioned documents, or the Obligations, for the full, punctual, and complete
performance of all the terms, covenants, and agreements contained in the Obligations, the aforementioned
documents, and this resolution.
5.08 The staff of the City is hereby authorized, in cooperation with Bond Counsel, to take all
steps necessary and desirable to proceed to develop the Housing Program and to issue the Obligations.
5.09 The Borrower has agreed to pay the administrative fees of the City in accordance with the
applicable policies and procedures of the City. It is hereby determined that any and all costs incurred by the
City in connection with the financing of the Project will be paid by the Borrower.
5.10. It is understood and agreed by the Borrower that the Borrower shall indemnify the City
against all liabilities, losses, damages, costs, and expenses (including attorneys' fees and expenses incurred
by the City) arising with respect to the Project and the Obligations, as provided for and agreed to by and
between the Borrower and the City in the Loan Agreement.
5.11. The financing transaction represented by the Obligations is subject to all existing policies
and procedures of the City and is also subject to any conduit bond policies and procedures subsequently
adopted by the City to the extent the provisions thereof are intended to be applied retroactively to conduit
revenue obligations issued prior to the adoption of such conduit bond policies and procedures.
Section 6. Effective Date. This resolution shall be in full force and effect from and after its
passage.
Adopted: March 14, 2022
Offered by: Novitsky
Seconded by: Murzyn, Jr.
Roll Call: All Ayes
ATTEST:
Sar n, Ci y Clerk
Anyfida Marquez Simul(4 YNaybr
7
STATE OF MINNESOTA )
COUNTY OF ANOKA ) SS.
CITY OF COLUMBIA HEIGHTS )
I, the undersigned, being the duly qualified and acting City Clerk of the City of Columbia Heights,
Minnesota (the "City"), do hereby certify that I have carefully compared the attached and foregoing extract of
minutes of a regular meeting of the City Council held on March 14, 2022, with the original thereof on file in
my office and the same is a full, true and complete transcript therefrom insofar as the same relates to a resolution
providing final authorization of the issuance, sale, and delivery of multifamily housing revenue bonds or other
obligations to finance the costs of a multifamily housing development; approving the forms of and authorizing
the execution and delivery of the obligations and related documents; approving a housing program under
Minnesota Statutes, Chapter 462C, as amended; providing for the security, rights, and remedies with respect to
the obligations; and taking certain other actions.
WITNESS My hand as Clerk and the corporate seal of the City this .2-4 day of Mo�2022.
-'e
Clerk
City of Columbia Heights, Minnesota
SARA ELISABETH ION
Notary Public
Minnesota
`� ::� My CaerrirsIon EVJM JM.31, 20
CITY COUNCIL MEETING
City Hall —Council Chambers, 590 40th Ave NE
Monday, March 14, 2022
7:00 PM
MINUTES
Mayor
Amdda Mdrquez Simula
Councilmembers
John Murzyn, Jr.
Connie Buesgens
Nick Novitsky
Kt Jacobs
City Manager
Kelli Bourgeois
The following are the minutes for the Meeting of the City Council held at 7:00 pm on Monday,
March 14, 2022, in the City Council Chambers, City Hall, 590 401" Avenue NE, Columbia Heights,
Minnesota. Due to the COVID-19 pandemic, this hybrid meeting was held both virtually and in -person.
CALL TO ORDER/ROLL CALL
Mayor Marquez Simula called the meeting to order at 7:00 pm.
Present: Mayor Marquez Simula; Councilmember Buesgens; Councilmember Jacobs; Councilmember
Novitsky; Councilmember Murzyn, Jr.
Also Present: Kelli Bourgeois, City Manager; Aaron Chirpich, Community Development Director; Jim
Hoeft, City Attorney; Minerva Hark, City Planner; James Hauth, Utilities Superintendent; Sara Ion, City
Clerk/Council Secretary; Dan O'Brien, Assistant Fire Chief; Natalie Severson, Columbia Heights School
Board Representative; Alexandria Bowman, City Resident; Rachel James, City Resident; Cliff Johnson,
City Resident; Andrew Felstrom, Community Member; Mike Weinard, City Resident
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 Jacobs, seconded by Councilmember Buesgens, to approve the Agenda as presented. All
Ayes, Motion Carried 5-0.
PROCLAMATIONS, PRESENTATIONS, RECOGNITION, ANNOUNCEMENTS, GUESTS
Mayor Marquez Simula introduced Natalie Severson, Columbia Heights School Board Representative.
Ms. Severson wished them "Happy Pi Day" and thanked the Council for having her there. She stated
she is excited to be the liaison to the City, as this is her first time, and she is looking forward to getting
to know the Council better. She provided an update on the school board and stated they had spent
time creating an equity statement in the last several months, which is available on their website. On
April 4, 2022, they are moving to a "recommended and optional mask" for staff and students in K-12tn
grade; Pre-K and teachers will still be required to wear masks until further notice. She added that in the
athletics department, there were two swimmers and one wrestler at the state tournament this winter,
and the boys' basketball has been doing well and is playing for the section championship that week on
Thursday at the Highlander Center; Matt Townsend was nominated for "Coach of the Year" for the
City of Columbia Heights MINUTES March 14, 2022
City Council Meeting Page 2
Twin Cities Red in football. She added that the 2022-2023 calendar has been approved and should be
on the website soon, if not already.
CONSENT AGENDA
Attorney Hoeft addressed the Council regarding Item 9, Rental Occupancy Licenses for Approval. He
advised the Council not to make comment about the licenses that are on the list that evening, since the
City is in the midst of litigation. He stated that he made an initial appearance for the City that morning,
and there are other upcoming dates scheduled.
Motion by Councilmember Murzyn Jr., seconded by Councilmember Novitsky, to approve the Consent
Agenda as presented. All Ayes, Motion Carried 5-0.
1. Approve February 28, 2022 City Council Meeting Minutes.
MOTION: Move to approve the City Council Meeting minutes of February 28, 2022.
2. Accept January 18, 2022 Traffic Commission Minutes.
MOTION: Move to accept the January 18, 2022 Traffic Commission minutes.
3. Adopt Resolution 2022-29, LELS Labor Agreement.
MOTION: Move to waive the reading of Resolution 2022-29, there being ample copies
available to the public.
MOTION: Move to adopt Resolution 2022-29, approving the City of Columbia Heights LELS,
Local 311 Labor Agreement.
4. Approve Resolution 2022-30, Re -Establishing Boundaries of Precinct 2 and 7.
MOTION: Move to waive the reading of Resolution 2022-30 there being ample copies
available to the public.
MOTION: Move to adopt Resolution 2022-30, Establishing Precinct and Polling Locations
for the 2022 Election Year.
S. Resolution 2022-36, Increasing the 2022 Budgets of the Governmental Equipment Fund,
The Information Technology Fund, and Governmental Buildings Fund.
MOTION: Move to waive the reading of Resolution 2022-36, there being ample copies
available to the public.
MOTION: Move to adopt Resolution 2022-36, appropriating prior year fund balance to
increase the 2022 budgets of the Governmental Equipment Fund, the Information
Technology Fund, and the Governmental Buildings Fund, for certain purposes reviewed
with the City Council, in the amounts shown.
6. Approve Resolution 2022-37, Amending the City Fee Schedule to Reflect the Elimination
of the Rental Fee to Borrow a New DVD.
MOTION: Move to waive the reading of Resolution 2022-37, there being ample copies
available to the public.
MOTION: Move to Adopt Resolution 2022-37, amending the City Fee Schedule to reflect
the elimination of the rental fee to borrow a new DVD effective April 1, 2022.
City of Columbia Heights MINUTES March 14, 2022
City Council Meeting Page 3
7. Award Contract for Fiberoptic Plant Installation.
MOTION: Move to award the contract for fiberoptic plant installation to Arvig in total
amount of $104.391.35.
8. Authorization to Seek Bids for Fence Installation at Public Safety Building.
MOTION: Move to authorize staff to seek bids for fence installation at the Public Safety
Building.
9. Rental Occupancy Licenses for Approval.
MOTION: Move to approve the items listed for rental housing license applications for
March 14, 2022, in that they have met the requirements of the Property Maintenance
Code.
10. License Agenda.
MOTION: Move to approve the items as listed on the business license agenda for March 14,
2022 as presented.
11. Review of Bills.
MOTION: Move that in accordance with Minnesota Statute 412.271, subd. 8 the City
Council has reviewed the enclosed list to claims paid by check and by electronic funds
transfer in the amount of $992,643.02.
PUBLIC HEARINGS
12. Final Plat Approval and Easement Vacation for Existing Lot located at 825 41st Avenue
NE.
Planner Hark stated that Reuter Walton Development has applied for a Final Plat Review
with Easement Vacation for the property located at 825 41st Avenue NE. The Final Plat,
once approved, would create three separate lots: Lot 1, which currently houses the City's
Public Safety Campus; Lot 2, which is proposed to be developed into a 62-unit, 4- story
affordable apartment building; and Lot 3, which is proposed to be developed into a new
retail, office, and warehouse space for SACA Food Shelf.
In addition to the Final Plat, the applicant is requesting the vacation of an existing storm
water drainage utility easement (per Document No. 1554478), which burdens the
underlying property to retain storm water on the surface of the existing parking lot. With
the vacation of this easement, the applicant proposes to construct a new underground
storm water chamber on proposed Lot 2 and record a new easement to store storm water
in the underground chamber. This effectively eliminates the need to continue to maintain
existing easement 1554478.
On May 4, 2021, the Planning Commission reviewed and recommended approval of this
Planned Unit Development's Preliminary Plat and several other Easement Vacations. The
applicant is now submitting the Final Plat, which requires approval prior to project
construction.
City of Columbia Heights MINUTES March 14, 2022
City Council Meeting Page 4
The Zoning Ordinance requires the Planning Commission to hold a public hearing on the
applications for a Final Plat and Easement Vacation, and submit its recommendation to the
City Council. The Planning Commission held the public hearing on this item on March 1,
2022, where the Commissioners recommended approval by the City Council. The site is
zoned as a Planned Unit Development District (PUD District #2021-01), with flexibilities on
parking, building setbacks, and units -per -acre through the approval of Ordinance No. 1666.
The newly -platted lots intend to accommodate multi -family housing, retail, office space,
and warehouse space. The project site is adjacent to the One- and Two -Family Residential
District (R-2A) to the north and west, as well as the Multiple Family Residential District to
the east (R-4) and the south (R-3).
The Comprehensive Plan guides this area for Transit Oriented Development. Transit
Oriented Development seeks to develop properties to have a mix of residential, retail, and
office. Through the approval of the Final Plat, two additional developable lots will be
created with the intention to developing housing, retail, office, and warehouse space.
Section 9.104 (M) of the Zoning Code outlines two conditions that must be met in order for
the City to grant a Final Plat. They are as follows:
(a) The final plat substantially conforms to the approved preliminary plat.
The final plat submitted substantially conforms to the preliminary plat that was
approved by the City Council on June 14, 2021 through Resolution No. 2021-44.
(b) The final plat conforms to the requirements of Section 9.116 (Subdivision Ordinance).
In review of the final plat that was submitted, Staff finds that the final plat generally
conforms to the City's Subdivision Ordinance for a Planned Unit Development. The
applicant is compliant in this regard.
Additionally, Section 9.104 (J) of the Zoning Code outlines two conditions that must be met
in order for the City to grant an Easement Vacation. They are as follows:
(a) No private rights will be injured or endangered as a result of the vacation.
This is correct.
(b) The public will not suffer loss or inconvenience as a result of the vacation.
This is correct. The applicant proposes an easement dedication to replace the vacated
storm water drainage utility easement, which would help alleviate drainage issues in
the area.
Staff review finds that the proposed Final Plat and Easement Vacation applications meet
the requirements of the Zoning Ordinance. As a result, Staff recommends that the City
Council approve the proposed Final Plat and Easement Vacation for the property located at
825 41st Avenue NE, subject to certain conditions.
Mayor Marquez Simula opened the public hearing.
No one wished to speak.
City of Columbia Heights MINUTES March 14, 2022
City Council Meeting Page 5
Motion by Councilmember Buesgens, seconded by Councilmember Murzyn, Jr., to waive the
reading of Resolution No. 2022-31, there being ample copies available to the public. All
Ayes, Motion Carried 5-0.
Motion by Councilmember Buesgens, seconded by Councilmember Murzyn, Jr., to adopt
Resolution No. 2022-31, approving a Final Plat for property located in the City of Columbia
Heights, Minnesota. Motion Carried 5-0.
Motion by Councilmember Buesgens, seconded by Councilmember Murzyn, Jr., to waive the
reading of Resolution 2022-32, there being ample copies available to the public. All Ayes,
Motion Carried 5-0.
Motion by Councilmember Buesgens, seconded by Councilmember Jacobs, to adopt
Resolution 2022-32, approving an easement vacation for property located in the City of
Columbia Heights, Minnesota. All Ayes, Motion Carried 5-0.
13. Establishment of the 42nd and Jackson Tax Increment Financing District.
Director Chirpich reported that Reuter Walton Development has requested public financial
assistance in the form of tax increment financing (TIF) to facilitate the redevelopment t of
the City's vacant development site located north of and contiguous with the Public Safety
campus. Reuter Walton has received approval from the City to construct a 62-unit
affordable apartment community on the property.
Before the City can move to establish a TIF district for the Reuter Walton project, the City
must amend the TIF Plan and district boundaries of TIF district No. 9. TIF district No. 9 was
created in 2000 to facilitate the development of the Columbia Court Townhomes and
Crestview Senior Living projects that are located just to the south, and east of the City's
vacant development site. At the time of the creation of TIF district No. 9, the City's Public
Safety site, including the vacant portion being redeveloped by Reuter Walton, was included
in the district boundaries. When TIF district No.9 was established, the City did not have
plans to build the Public Safety campus on the site. Therefore, it was included in the district
as a future private redevelopment site. Before creating a new TIF district for Reuter
Walton, the Public Safety parcel, which currently includes the vacant development site,
needs to be removed from TIF district No. 9.
To finalize the plans for the new Reuter Walton TIF district, there are several details still
being discussed and reviewed between staff, Ehlers and Reuter Walton to verify the full
extent of assistance needed. The possible uses for which TIF assistance is being considered
include; land acquisition, site preparation, affordable housing, and utility related work.
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 throughout the City; however, modifications
City of Columbia Heights MINUTES March 14, 2022
City Council Meeting Page 6
to the plan must be made to encompass the potential development being proposed by
Reuter Walton. 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 Reuter Walton are detailed in the TIF Plan. The project includes the
development of 62 income restricted affordable apartments. The maximum duration of the
TIF District is 26 years, and the estimated annual tax increment is $71,868. Ehlers has
completed the TIF Plan on behalf of the city. A full copy of the plan is attached to this
report.
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. This tax increment is
what reimburses the developer for the qualified costs of development. He added that this
property is unique because the base is added to the City's overall base, because it's public
property, which is currently tax-exempt.
Mayor Marquez Simula opened the public hearing.
No one wished to speak.
Motion by Councilmember Jacobs, seconded by Councilmember Murzyn, Jr to close the
hearing and waive the reading of Resolution 2022-33, there being ample copies available to
the public. All Ayes, Motion Carried 5-0.
Motion by Councilmember Jacobs, seconded by Councilmember Novitsky, to adopt
Resolution 2022-33, approving the removal of a parcel from tax increment financing district
NO. 9 within the downtown central business district redevelopment project. All Ayes,
Motion Carried 5-0.
Motion by Councilmember Jacobs, seconded by Councilmember Novitsky, to waive the
reading of Resolution 2022-34, there being ample copies available to the public. All Ayes,
Motion Carried 5-0.
Motion by Councilmember Jacobs, seconded by Councilmember Novitsky, to adopt
Resolution 2022-34, adopting a modification to the downtown central business district
revitalization plan for the downtown central business redevelopment project, establishing
City of Columbia Heights MINUTES March 14, 2022
City Council Meeting Page 7
the 42nd and Jackson tax increment financing district therein, and adopting a tax increment
financing plan therefor. All Ayes, Motion Carried 5-0.
14. Approval Consideration for the Issuance of Multifamily Housing Revenue Bonds (Reuter
Walton Project).
Director Chirpich stated that the City has received a request from Reuter Walton
Development to issue tax-exempt bonds on their behalf to support the construction of
their proposed 62-unit affordable housing development to be located on the vacant City
owned development site just north of the Public Safety building.
On June 22, 2021, the City Council approved Resolution 2021-53, a resolution which
authorized the preparation and submission of a Housing Program to the Metropolitan
Council and granted the preliminary issuance of multi -family housing revenue bonds (tax-
exempt bonds) to finance the Reuter Walton affordable housing project in an amount not
to exceed $11,000,000. Thus, the City submitted the Housing Program to the Metropolitan
Council and submitted an allocation application to the Minnesota Department of
Management and Budget (MMB) requesting the tax-exempt bonds.
On January 11, 2022, the MMB notified the City that the Reuter Walton project was
allocated tax-exempt bonds in the amount of $9,886,800. Therefore, in accordance with
the provisions of Minnesota State Statutes, the City is required to issue the allocated tax-
exempt bonds within 180 days from the date of allocation, which would be on or before
July 10, 2022.
Bonds of this type are not an obligation of the City or its taxpayers, rather an obligation of
the developer. Only project revenues of the developer, in this case, rent collected after
completion of the project would be pledged for repayment of the bonds. While the City
must approve issuance of the bonds and all bond documents, the transaction is largely
handled by the private borrower and the underwriter that serves as the initial purchaser of
the bonds.
The City has previously issued tax-exempt bonds for other various developments, such as
the Sullivan Shores townhomes, Crestview senior care facilities, the Legends of Columbia
Heights, and Grand Central Flats. With the issuance of tax-exempt bonds, the City has
required that the developer reimburse the City for all costs associated with the issuance of
the bonds, as well as pay an issuance fee in the amount of 1% of the principal amount
issued for the tax-exempt bonds. In the case of the request by Reuter Walton, the City
would realize an issuance fee in the amount of $98,868.
The Metropolitan Council has reviewed and approved the Housing Program that has been
submitted as part of this bond allocation request, and the project has been awarded bond
funding from MMB during a highly competitive funding round. Staff recommend approval
of Resolution 2022-35, a resolution which formally approves the Housing Program, and the
final authorization for the issuance of the tax-exempt bonds.
Mayor Marquez Simula opened the public hearing.
City of Columbia Heights MINUTES March 14, 2022
City Council Meeting Page 8
There was a disturbance in chambers from a member of the audience. The man did not
identify himself and was asked to complete a speaker form if he wished to address council.
He left council chambers and did not return.
No one else in the audience wished to speak.
Motion by Councilmember Novitsky, seconded by Councilmember Murzyn, Jr., to close the
hearing and waive the reading of Resolution 2022-35, 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
Resolution 2022-35, providing final authorization for the issuance, sale, and delivery of
multifamily housing revenue bonds or other obligations to finance the costs of a multifamily
housing development; approving the forms of an authorizing the execution and delivery of
the obligations and related documents; approving a housing program under Minnesota
Statutes, Chapter 462C, as amended, providing for the security, rights, and remedies with
respect to the obligations; and taking certain other actions. All Ayes, Motion Carried 5-0.
15. Adopt Provisional Rental License.
Assistant Fire Chief O'Brien stated that this to consider approval of a rental housing license
application to operate a rental unit within the City for the property located at 4044
Jefferson Street NE with a six-month provision from the date of adoption for replacement
of garage for compliance with city code.
Assistant Fire Chief O'Brien added that the garage burnt down in 2020, and it needed to be
replaced. The property lost its license recently and as part of the reinstatement of the
license, that condition was put on, and the applicant has applied for a building permit.
Mayor Marquez Simula opened the public hearing.
No one wished to speak.
Motion by Councilmember Murzyn Jr., seconded by Councilmember Novitsky, to close the
public hearing and to waive the reading of Resolution Number 2022-39, being ample copies
available to the public. All Ayes, Motion Carried 5-0.
Motion by Councilmember Novitsky, seconded by Councilmember Murzyn, Jr., to adopt
Resolution Number 2022-39, approving a six (6)-month provisional rental housing license
pursuant to City Code of the rental license listed. All Ayes, Motion Carried 5-0.
ITEMS FOR CONSIDERATION
Bid Considerations
16. Adopt Resolution 2022-38 Being a Resolution Accepting Bids and Awarding the Contract
for 2022 Water Main Structural Lining and Rehabilitation Project, City Project No. 2203.
James Hauth, Utilities Superintendent reported that on January 10, 2022, the Council
City of Columbia Heights MINUTES March 14, 2022
City Council Meeting Page 9
authorized staff to seek bids for the Water Main Lining and Rehabilitation Project. The City
Council previously authorized the design for structurally lining the water mains located at
37th Avenue from Central Avenue to Lincoln Street, Pierce Street from 37th Avenue to the
cul-de-sac, and Lincoln Street from 37th Avenue to the cul-de-sac.
The water lining construction is scheduled for mid to late spring with completion in late
summer of 2022. With major road construction on 37th Avenue anticipated to take the
entire 2023 construction season, utility construction will be completed in advance of the
road work. The proposed cost of the water lining project for 2022 is much larger than our
annual water rehab plan, but the addition of Federal money through the American Rescue
Plan Act (ARPA) will offset the additional cost for Pierce and Lincoln Streets, and allow the
City to rehabilitate nearly twice as much water main. The Engineer's Estimate for the work
was $1,890,000.
Plans and specifications were advertised for bids in the LIFE newspaper on January 14,
2022, and QuestCDN. Two bids were received and publicly read aloud at the March 1, 2022
bid opening.
Staff recommends award to FER-PAL Construction USA LLC based upon their low, qualified,
responsible bid of $998,851.00, almost half of the estimate.
Motion by Councilmember Buesgens, seconded by Councilmember Murzyn, Jr., to waive the
reading of Resolution 2022-38 there being ample copies available to the public. All Ayes,
Motion Carried 5-0.
Motion by Councilmember Buesgens, seconded by Councilmember Novitsky, to adopt
Resolution 2022-38, accepting bids and awarding the contract for 2022 Water Main Lining
and Rehabilitation, City Project No. 2203, to FER-PAL Construction USA LLC based upon their
low, qualified, responsible base bid for lining in the amount of .$998,851.00 with funds to be
appropriated from Fund 651-2203-45185; and, to transfer.$800,000 of ARPA Grant Funds
from the sanitary sewer fund to Fund 651-2203-45185; and, furthermore, to authorize the
Mayor and City Manager to enter into a contract for the same. All Ayes, Motion Carried 5-0.
CITY COUNCIL AND ADMINISTRATIVE REPORTS
Report of the City Council
Mayor Marquez Simula wished everyone "Happy Pi Day', noting March 14 is the mathematical number
of pi, 3.14. She stated that afternoon she attended the National Wildlife Federation's Mayor's Monarch
Pledge webinar. She said to "save the date" for Wednesday, August 17, 2022, the Monarch Festival will
be held in the City, location to be determined. She said that the first Youth Commission meeting took
place last Wednesday; she attended a Climate Caucus meeting; there was a Council work session and
EDA meeting. Councilmember Jacobs and Mayor Marquez Simula attended the Losar and Tibet
Celebration in Isanti; there was food, prayers, and good conversation. She stated there are community
listening sessions coming up on April 21, 2022, for the Latino Community Event at Immaculate
Conception Church in the Fellowship Hall from 6:00 pm — 7:00 pm; the first Tibetan Community
City of Columbia Heights MINUTES March 14, 2022
City Council Meeting Page 10
Listening Session on May 3, 2022, via Zoom; on May 18, 2022, at the library in the Community Room at
2:00 pm for the East African Community Listening Session.
Councilmember Novitsky said that the Saint Patrick's Parade will be held on March 17, 2022, on 40tn
Avenue, where there will be about 70 participating parade floats; the spring shredding event will be
April 23, 2022, and there will be a community dumpster from 9:00 am — 12:00 pm; several community
groups will be cleaning up streets from trash that day; they will meet at the Murzyn parking lot about
8:30 am — 9:00 am to get assignments. He stated that Jamboree planning has begun, with several
changes, such as the softball tournament being canceled.
Councilmember Murzyn Jr. congratulated the Fire Department for putting their Fire Engine No. 4 into
service last week. He wished everyone a Happy St. Patrick's Day.
Councilmember Jacobs stated she attended presentations, "Stabilizing Financial Equity in Your
Community" and "Promoting Owner Occupied Housing"; she attended the Sister's City meeting as a
guest; attended the birthday celebration of Ania, a local little girl who has been fighting cancer. She
said she also attended the Losar Celebration; the following day she was the Guest of Honor at the Te
Hor Losar Celebration locally, where she participated in the circle of prayer and several other traditions
that welcome a new year of peace, hope, and prosperity. She stated it personally energizes her to
know that "spirituality crosses all boundaries and there are no parameters". She attended an event
with County Commissioners Meisner and Reinhardt, Mayor Lund of Fridley, and Representative
Bernardy and several others, there was a great exchange of ideas and information. She added that
SACA is beginning to allow clients into the food shelf with limitations of only two at a time, and they
are hoping to open the thrift store in April, but it may be delayed longer; she facilitated four resident
reach outs. She later added that she attended the Fire Truck Push In Ceremony.
Councilmember Buesgens stated she is excited about the new businesses in town, the Shroom Room,
at 4030 Central Avenue NE; she stated it's a new restaurant that requires reservations for special
dinner events. She attended the new Fire Truck Push In Ceremony and had since seen it out on a call.
Mayor Marquez Simula added that she corresponded with the Mayor of the Sister City in Lomianki,
Poland, offering support; they will be figuring out if shipping items will make the most sense or not.
There will be information coming on how the community may be able to help the Sister City who is
helping Ukrainian refugees. She stated to keep them in their thoughts and prayers.
Report of the City Manager
Manager Bourgeois stated they are accepting nominations for Outstanding Citizens until May 3, 2022,
there is a youth and adult category; forms can be found at www.columbiaheights.gov/outstanding. She
stated the Saint Patrick's Day Parade will be held at 6:00 pm on March 17, 2022; there will be "no
parking" parade route signs out where parking will not be allowed from 5:00 pm — 7:00 pm; she stated
that she will be the Grand Marshall for the parade and ride in the new fire truck.
Report of the City Attorney
Attorney Hoeft had no update.
COMMUNITY FORUM
City of Columbia Heights MINUTES March 14, 2022
City Council Meeting Page 11
Alexandria Bowman, City Resident, spoke regarding Havenbrook Homes and stated she believes they
"got off with a slap on the wrist". She said they have been neglectful landlords, increased rent during a
pandemic, and they are now being sued by Attorney General Ellison. Ms. Bowman stated that
Havenbrook Homes made little effort to communicate with them, denied requests, and were difficult
to contact, leaving issues to fall into disarray until they were deemed an emergency. She said that they
made recent quick fixes so that the license would be approved. She spoke about other issues in her
home that Havenbrook Homes hasn't given a timeline on when they would be fixed, but it passed City
inspection. She stated Havenbrook Homes has communicated more recently, but the City lacked
communication. She said that the only advice given to her from the City was to contact Judicare, which
she previously stated that her household makes too much money. She has begun to work with Central
Minnesota and the Housing Justice to find some sort of action on this landlord issue, as she doesn't
want Havenbrook Homes to get with a slap on the wrist; she doesn't see that the City has had them
accountable and ensure this won't happen to other renters in future generations. She stated that her
lease is up in July 2022, and she will be moving out of the City.
Rachel James, City Resident, spoke regarding Havenbrook Homes and the communication issues. She
stated she was aware that the Council was advised not to comment on the issue. Ms. James said that
the City does not have a "renter resources" specific page on their website, which she found on other
cities' websites. She added that she found residential resources on the City's website, which are helpful
for everyone, but then there were resources more specific to only homeowners, but no renter
resources. She requested the City add this to their website, which will help the communication with
renters.
Cliff Johnson, City Resident, spoke regarding Havenbrook Homes and said this seems unprecedented
what is happening. He stated that it seems to be two different tiers on "rental justice"; corporations
which have more money have one set of rules compared to a small investor. He said there is a name
shuffle happening, which is disturbing. He said he heard the things that have been discussed so that
this doesn't happen again, which he is glad to see, and he hopes more input from renters and other
landlords is sought. He stated that because this situation effected so many, that's why it is being talked
about, and there was talk about renters not being notified. He said that renters could be given
information about how if landlords own multiple properties and has violations, how licenses could be
revoked. He added that he knows the renters and the City are both in a difficult position, but it's
Havenbrook Homes that is to blame. Mr. Johnson also added that the Shroom Room is a Columbia
Height's graduate and went to school with him.
Andrew Felstrom, Community Member, stated via Zoom that Havenbrook Homes, who is a
corporation, has been given understanding and deference while the residents have been ignored. He
said that if the tenants were listened to, they would have known about the ongoing repair issues,
painting over black mold, both literally and figuratively. He stated that the City had the power to help
the tenants, but instead they are allowing a "corporate shell game" which isn't going to solve anything.
Mike Weinand, City Resident, stated via Zoom that he is disappointed with the City and is confused; he
said the one property tonight that had a provisional license had an opportunity for public comment,
but none of the other properties did. He questioned when the Council can offer opinions on the
situation, and that the City has avoided having tenants involved in the process. He stated that the most
City of Columbia Heights MINUTES March 14, 2022
City Council Meeting Page 12
the Council has spoken about the situation was at a work session, and some displayed their opinions;
he noted that some Councilmembers did not comment and there has been no comment from Staff.
Mr. Weinand stated that he doesn't understand why the license on his home was fully approved as
there are repairs that needed to be made when the weather allowed, and he doesn't believe
Havenbrook Homes will make them now. He stated he didn't believe Havenbrook Homes was being
held accountable, and that Havenbrook could have slipped donations to Councilmembers to make the
issue go away. He feels that there is no other option but to leave Columbia Heights.
ADJOURNMENT
Motion by Jacobs, seconded by Councilmember Buesgens, to adjourn. All Ayes, Motion Carried 5-0.
Meeting adjourned at 8:00 pm.
Respectfully Submitted,
Sara Ion, City Clerk/Council Secretary