Loading...
03-27-95 Regular OF RICHFIELD, MINNESOTA REGULAR COUNCIL MEETING March Martin Kirsch, Mayor; Michael Sandahl; Susan Rosenberg; MEMBERS PRESENT: HRA MEMBERS Tom Harms, Chair; Joan Helmberger; Vern Luettinger; Michael Sandahl; and Russ Susag. James Prosser, City Manager; Steven Administrative STAFF PRESENT: Services Director; Thomas Ferber, City Clerk; Byron Wallace, Community Development Director; Donald Fondrick, Community Services Director; Jack Erskine, Public Safety Director; William Fillmore, Liquor Operations Director; and John Dean, City Attorney. The City Council commenced the regular meeting of March 27, 1995 concurrently with the HRA. Mayor Kirsch and Chair Harms called the Concurrent City Council/Special Housing and Redevelopment Authority Meeting to order at 7:00 p.m. PRESENTATION OF COLORS AND PLEDGE OF ALLEGIANCE Mayor Kirsch led the audience in the Pledge of Allegiance. ITEMS CONSIDERED BY HRA: APPROVAL OF HRA MINUTES to approve the minutes of the reaular HRA Meetina of February 28. 1995: the minutes of the Concurrent Council Meetina of March 13, ItemCONSIDERATION OF RESOLUTION AUTHORIZING PURCHASE OF 7429 DUPONT AVENUE FOR RICHFIELD REDISCOVERED PROGRAM. HRA LETTER NO. 19 Council Meeting Minutes Executive Director Prosser reviewed HRA Letter No. 19 recommending that the HRA authorize the purchase of 7429 Avenue for $45,000 for the Richfield Rediscovered Program. the following HRA resolution be adopted, that it be in the HRAresolution book and that it be made of these RESOLUTION NO. 544 RESOLUTION AUTHORIZING PURCHASE OF REAL PROPERTY LOCATED AT 7429 DUPONT AVENUE SOUTH as Motion carried 5-O. This resolution appears HRA Resolution No. 544 in HRA Resolution Book No. 4. Executive Director Prosser reviewed HRA Letter No. 20 regarding the proposed modifications of the Subordination Agreement with CSM for PhaseI of the Shops at Lyndale. Chair Harms reviewed the proposed modifications and recommended their approval. reement to approve the modified Subordtnatton Phase lof the Shoos at Lyndale as and to execution of the document the HRA Chair and, Executive Director. HRA Commissioner Sandahl asked questions about the payment of $19,900 to BCLfor an appraisal. Executive Director Prosser indicated the payment was for more than one appraisal and that he would provide further information in the Status and Information report. that the following claims and be approved: BANK Section 8: 1088 HRA: 7650-7766; 13059-l 3074; 13399-l 3438 $ ItemCONCURRENT MEETING WITH CITY COUNCIL TO CONSIDER A RESOLUTION APPROVING HOUSING PLAN AND ISSUANCE OF TAX EXEMPT REVENUE BONDS TO PURCHASE AND RENOVATE CENTURY COURT APARTMENTS. HRA LETTER NO. 21 City Manager/Executive Director Prosser reviewed HRA Letter No. 21 regarding the request of Dominium Management Services, inc. for approval of a housing plan and the issuance of tax exempt revenue bonds to purchase and renovate the Century Court Apartments. Jack Safar, Dominium Management Services, inc., outlined the proposal for Dominium to purchase and renovate the Century Court Apartments utilizing tax exempt bonds as the finance mechanism.He stated it was the intention of Dominium to position Century Court to maintain the quality of housing, maintain its value, and continue to be the largest tax paying property in the City. Terry Piper Jaffray, reviewed and answered questions regarding the proposed issuance of tax exempt bonds. He stated the bonds would not have an impact on the City’s credit rating or ability to issue other bonds. He stated that credit enhancement would also be required as insurance against default. Mr. explained the state bond allocation criteria and potential impact on tax exempt bonds of legislation recently proposed by State Representative Ann Rest. HRA Chair Harms outlined the process used to evaluate this proposal and to address concerns expressed by the public. Mr. Harms discussed his evaluation of the proposal in relationship to the following issues: The bonds would not be an obligation of the City. The primary benefit to Dominium is the reduced interest rate providing a savings ¦ of $3.73 million. The primary benefit to the City is the negotiated agreement that Dominium will ¦ use this savings for the renovation and rehabilitation of the apartment properties. The purchase and some level of renovation could occur without tax exempt ¦ bonds it is a question of policy for the Council as to whether this is good public policy for the long term maintenance of the property. Timing of rehabilitation. ¦ Tax credits. ¦ March 27, 1995 Cash payment replacement for any lost tax revenue to City and School District if tax credits are used. Credit enhancement. Mr. Harms stated that after evaluating the advantages and disadvantages of this proposal it was his opinion that on balance approval of the tax exempt bonds was a good Ernie Lindstrom, 7406 Fremont Avenue, stated that he had yet to talk to anyone in the community who supported. this proposal. He stated there were no obvious signs of need or deterioration to address at Century Court. He stated that other’apartments in the City would seem more in need. He questioned the public purpose and benefit to the community. Mr. Lindstrom suggested that the City Council delay or deny the request. He stated that if there is a proven need and an opportunity for input from the public, then the He stated if the Council could get even of the community would support the proposal. community to support the proposal, he would support it. He questioned the State Statute authority and purpose being used to issue the bonds. Stephanie Galey, Holmes Graven bond counsel, reviewed the statutory citations and application of the criteria. Prudence Meyer, property owner of 7521 Penn Avenue and 7536 Oliver Avenue, stated these buildings would also benefit from improvements. She stated all apartments in Richfield would need assistance in order to compete with Century Court. She questioned the fairness of providing assistance to only one large property owner, the public purpose of the bonds, and asked that the City support a lower tax rate for apartment properties. Arlene Dixson, Highland Management Group, Inc., discussed issues related to whether any value added would be included in the market value, the unfair competition for other Richfield apartments impacting rent levels and tenancy, the public purpose of the bonds, the differentiation between normal maintenance and rehabilitation, equity to other apartment owners, and the mix of tenants. Tim Erlander, 7500 Thomas Avenue, spoke in opposition to approval of issuing the tax exempt bonds. Steve Lindgren, 7141 Oak Grove Boulevard, asked questions and stated concerns about the proposal. Dave Brierton, Dominium Management Services, Inc. reviewed the State Statute authority and State allocation program under which Dominium is proposing to use to finance this proposal. He indicated there were M.H.F.A. programs available to assist small apartment owners. Audrey Hansen, 7320 Lyndale Avenue, stated questions and concerns about why Century Court needs so much money for renovation. HRA Chair Harms stated that there is a risk if Century Court is not maintained that it will deteriorate, lose value, and become a problem to the community. March 27, 1995 Andrew Akins, Premier Properties, questioned whether there were outstanding problems identified from inspections of the Century Court buildings. HRACommissioner Luettinger questioned the difference between the rehabilitation estimate of Stuart of $6.8 million and Dominium’s estimate of $4.7 million. Dominium Management Services, Inc., stated that Dominium had received firm bids from contractors instead of estimates. HRA Commissioner Luettinger stated that he opposed the proposed issuance of tax exempt bonds for this project. HRACommissioner Helmberger asked questions about the tax credit issue and the types of improvements that Dominium intended to make to the properties. She indicated that her feelings slightly lean toward those of Chair Harms. ItemCONSIDERATION OF RESOLUTION APPROVING HOUSING PLAN AND ISSUANCEOF TAX EXEMPT REVENUE BONDS TO PURCHASE AND RENOVATE CENTURY COURT APARTMENTS. C.L. NO. 81 CityManager Prosser stated that the staff had reviewed the proposal from a technicalaspect, whether it meets the statutorial requirements, and that the proposal addresses interests of the community.He stated the City Council must make the broader policy decision of whether there is a public purpose in authorizing the tax exempt bonds for this proposal. Council. Member Susag stated that the proposal has some positive aspects but that there did not seem to be enough public purpose in light of the fact that most of theimprovements are maintenance replacement rather than rehabilitation. He stated that it left the question of what to do for small apartment owners. Therefore, he opposed the proposed approval of the issuance of the tax exempt bonds. Mayor stated that it appeared that the residents of the community did not support this proposal at this time, that there was an issue of equity for the smaller apartmentowners, and therefore he would support denial of the request. Council Member Priebe stated that the proposal would benefit the 1100 apartment households and the City as a whole as a result but that other benefits are lacking in relation to the risk. He stated he had hoped that the proposal would generate additional tax capacity and revenue, however it appears this would not be the case. He stated that on balance there was not enough benefit demonstrated to support the issuance of the tax exempt bonds. Council Members Sandahl and Rosenberg concurred that there was not sufficient public purpose to support the proposal. March 27, 1995 The concurrent portion the meeting was concluded at p.m. and Mayor proceeded with the regular meeting agenda. APPROVAL OF MINUTES ItemOPPORTUNITY FOR PERSONS TO ADDRESS THE CITY COUNCIL ON ANY ITEM NOT LISTED ON THE AGENDA. wished to address the Council. ItemPRESENTATION OF PUBLIC SAFETY DEPARTMENTAL COMMENDATION TO POLICE OFFICER WILLIAM NIKITUK IN RECOGNITION OF RECEIVING BEST POLICE OFFICER PERFORMANCE EVALUATION FOR 1994. Public Safety Director Erskine read and presented a Public Safety Departmental Commendation to Police Officer William Nikituk in recognition of receiving Best Police Officer Performance Evaluation for 1994. ItemCOUNCIL APPROVAL OF AGENDA to approve the agenda. Motion carried Council Meeting Minutes Item CONSENT CALENDAR DIRECTIONAL SIGN IN 77TH STREET CORRIDOR C.L. 82 APPROVED REMOVAL OF STOPSIGNS AT 76TH STREET AND EMERSON AVENUE C.L. 83 APPROVED CONSENT AND AGREEMENT RELATING TO EMERSON AVENUE AGREEMENT AND COLFAX AVENUE AGREEMENT; CSM, PHASE I C.L. 84 APPROVED PAYMENT IN EXCESS OF $5,000 TO LEAGUE OF MINNESOTA CITIES IN AMOUNT OF C.L. 85 APPROVED PURCHASE IN EXCESS OF $5,000 FOR SUMMER BROCHURE PRINTING FROM NYSTROM PUBLISHING IN AMOUNT OF $5,498 C.L. 86 APPROVED BID MINUTES/TABULATION AND AWARD OF CONTRACT FOR DEMOLITIONAND REMOVAL OF BUILDINGS AT 6913 AND 6933 PENN AVENUE TO APPLE EXCAVATING, INC. IN AMOUNT OF C.L. 87 APPROVED BID MINUTES/TABULATION AND AWARD OF CONTRACT FOR ONE HIGH VELOCITY SEWER CLEANER FROM FLEXIBLE PIPE TOOL COMPANY IN AMOUNT OF C.L. 88 APPROVED BID MINUTES/TABULATION AND AWARD OF CONTRACT FOR ONENEW ASPHALT PATCH BOX FOR USE BY STREET MAINTENANCE DIVISION FROM RUFFRIDGE-JOHNSON COMPANY IN AMOUNT OF C.L. 89 APPROVED BID MINUTES/TABULATION AND AWARD OF CONTRACT FOR NEW HYDRAULIC KNUCKLE BOOM LOADER WITH 18’ BOX FROM TRUCK EQUIPMENT IN AMOUNT OF $35,230 C.L. 90 to the consent calendar. ItemPUBLIC HEARING REGARDING AMENDMENT TO CONDITIONAL USE PERMIT TO ALLOW EXPAN’SION OF FRASER SCHOOL, 2400 WEST 64TH STREET. C.L. NO. 91 City Manager Prosser reviewed Council Letter No. 91 regarding a request for an amendment to a conditional use permit to allow the expansion of Fraser School, 2400 West 64th Street. Diane Cross, Executive Director of Fraser Community Services, reviewed the history and services of Fraser School. She indicated the proposed expansion would add classrooms, a therapy room, and office/meeting rooms. Discussion followed regarding additional parking which will require the vacation of the Queen Avenue right-of-way along the east side of the property and a variance for the rear yard setback, both which will be considered as separate actions in the future, close the public hearing. it of to approve an amendment to the use oerm Fraser School. 7400 West 64th Street. to allow for the expansion of the as rantinaofa variance for back grooosed the off st yard setback. the vacation Aareement. Motion carried 5-O. ItemPUBLICHEARING AND SECOND READING OF TRANSITORY ORDINANCE VACATING PORTION OF OLD 77TH STREET BETWEEN EMERSON AND COLFAX AVENUES; CSM, PHASE C.L. NO. 92 City Manager Prosser reviewed Council Letter No. 92 regarding a proposed transitory ordinance to vacate a portion of the old 77th Street right-of-way between Emerson Avenue and Colfax Avenue. to close the public hearinq. Motion carried 5-Q. that this constitute Second Readina of Bill No Transitorv Ordinance No. 17.60. an ordinance vacation of a portion of Street between Emerson and Colfax Avenues. that it be published in the official newspaper and that it be made part of these minutes. Motion carried 5-Q. Council Meeting Minutes ItemPUBLIC HEARING AND SECOND READINGS OF: ORDINANCE AMENDMENT TO ZONING ON ADULT USES; TOSECTION 2020.01 PROHIBITING NUDITY IN LICENSE ESTABLISHMENTS; ADULT ESTABLISHMENT ORDINANCE; AND ORDINANCE RELATING TO PREMISES CONDUCIVE TO HIGH-RISK SEXUAL CONDUCT. C.L. NO. 93 City Manager Prosser reviewed Council Letter No. 93 regarding proposed ordinance amendments related to the regulation of adult uses and adult establishments. Tim Erlander, Secretary of the Richfield Planning Commission, reviewed the Planning Commission’s role in developing the ordinance amendments. to close the public hearinq. Motion carried 5-O. that this constitute Second Readina of Bill No. regulating the location of adult establishments, amendina subsections 520.15. 520.31, 525.01 and 530.13: and Bill No. 1995-5 adult establishments and premises, addina new sections and amendina 7020 10 subd 6: and that thev be published in the official newspaper and that be made part of these minutes. ItemCONTINUANCE PUBLIC HEARING TO EXPAND BOUNDARIES OF REDEFINED STREET IN CONSIDERATION OF RESOLUTION ASSESSMENT PROJECT AREA ORDERING UNDERTAKING OF CURRENT MAINTENANCE SERVICE PROJECT FROM JANUARY 1 THROUGH DECEMBER CITY PROJECT NO. 901. C.L. NO. 94 City Manager Prosser reviewed Council Letter No. 94 regarding the proposed expansion of the boundaries of the redefined Street Assessment Project Area and the proposed undertaking of a current maintenance service project, C.P. No. 901. Arlene Dixson, Vice President of Highland Management Group, Inc., spoke in opposition to the assessment of apartment properties along 77th Street for maintenance of the common areas of the project. She suggested the improvements to 77th Street benefited the City and traffic as a whole, therefore the community as a whole should pay for those costs. Norlin Boyum, owner of the apartments at 631 East 77th Street, stated that the 77th Street project with increased traffic volumes will be detrimental to the rentability of the apartments and stability of the tenant base. He suggested the assessment be spread on the entire tax base. Andrew Akins, representing the owners of 7701 Fourth Avenue, spoke in opposition to the assessment. Terry Sage Properties, spoke in opposition to the assessment. City Manager Prosser stated that staff will conduct an open house on alternative methods of special assessment cost distribution for the maintenance district prior to next year’s consideration of current maintenance projects. to close the public hearing. Council Member Priebe stated he felt the assessment discriminated against those who lived along 77th Street while others using 77th Street benefited without paying. He suggested some other alternative be adopted. Council Member Sandahl stated that it was appropriate to approve the assessment for this year and provide time to study the alternatives and provide the open house forum. that the followina resolution be adopted. that it be spread in the resolution book and that it be made part of these minutes; RESOLUTION NO. RESOLUTION ORDERING UNDERTAKING OF CURRENT SERVICE PROJECT 77TH STREET PROJECT AREA MAINTENANCE JANUARY 1 THROUGH DECEMBER CITY PROJECT NO. 901 Motion carried (Priebe, Rosenberg opposed) This resolution appears as Resolution No. 8238 in Resolution Book No.65. ItemCONSIDERATION OF TRANSITIONAL ACTIVITY PERMIT AND STREET PARKING PERMIT FOR RICHFIELD PLUMBING AND MICRO AGE, 510 WEST 77TH STREET. C.L. NO. 95 CityManager Prosser reviewed Council Letter No. 95 regarding a request for a transitional activity permit and off-street parking for Richfield Plumbing and Micro Age, 510 West 77th Street. Council Meeting Minutes March 27, 1995 to close the public hearing. Motion carried 5-O. S/Rosenberg to a transitional activity permit and off-street for Richfield and Haaen Micro at West 77th Street ct to the following stipulations: That payment be made to the City in lieu of providing for management of storm site; and That the area between the east building wall and the east property line be between the north and south parking areas upon elimination of 78th Street access. Motion carried 5-O. Item BETWEEN CITY OF RICHFIELD AND RICHFIELD POLICE SUPERVISORS FOR 1995. C.L. NO. 96 BARGAINING UNIT LOCAL 162 City Manager Prosser reviewed Council Letter No. 96 regarding a proposed labor’ agreement between the City and the Richfield Police Supervisors Bargaining Unit Local 162 for the year 1995. that the followina resolution be adopted. that it be in resolution thebook and that it be made part of these minutes: RESOLUTION NO. 8239 RESOLUTION APPROVING LABOR AGREEMENT BETWEEN THE CITY OF RICHFIELD AND THE RICHFIELD POLICE SUPERVISORS BARGAINING UNIT LOCAL 162 FOR THE YEAR 1995 Motion carried 5-O. This resolution appears as Resolution No. 8239 in Resolution Book No.65. CONSIDERATION OF RESOLUTION AUTHORIZING ACQUISITION OF 7216 Item FIRST AVENUE TO PERMIT HRA TO PROCEED WITH TECHNICAL COLLEGE NEW CONSTRUCTION PROJECT AND FIRST READING OF ORDINANCE AUTHORIZING SALE OF PROPERTY TO HRA. C.L. NO. 97 Council Meeting Minutes City Manager Prosser reviewed Council Letter No. 97 regarding the proposed for the purpose acquisition of 7216 First Avenue under the voluntary acquisition program of selling the property to the HRA for development as a Hennepin Technical College Tech) new construction project. Council Member Susag expressed concerns about the performance of the Hennepin Technical College on recent projects. He requested staff to inform H.T.C. that if similar problems occur the continuance of the Vo-Tech program may be jeopardized. RESOLUTION NO. 8240 CALLING FOR ACQUISITION AND A PUBLIC HEARING ON THE SALE OF CERTAIN LAND 7216 FIRST AVENUE SOUTH 7216 First Avenue South and that the Public Hearina and Second of the ordinance be scheduled for the Mav 8.1995 Citv Council Motion carried 5-O. This resolution appears as Resolution No. 8240 in Resolution Book No.65. Item CONSIDERATION OF FIRST READING OF COMPREHENSIVE REVISION OF ZONING CODE. C.L. NO. 98 City Manager Council Letter No. 98 regarding First Reading of a comprehensive revision of the Code as recommended by the Planning Commission. that this constitute First Reading of the comprehensive revision of the Zonina Code: and that the Public Hearina and Second Readina of the ordinance be scheduled for the April 24. 1995 City Council Meeting. Motion carried 5-Q. Item CONSIDERATION OF RECEIPT OF UNAUDITED 1994 FINANCIAL REPORT City Manager reviewed Council Letter No. 99 presenting the unaudited 1994 Financial Report and answered questions from Council Member Priebe related to retained earnings in the Liquor Fund and the transfer of funds to the HRA for airport expenditures. to receive the unaudited 1994 Financial of the Citv. Motion carried 5-O. Item CONSIDERATION OF REQUEST FOR DETERMINATION ON APPROPRIATE ZONING CLASSIFICATION FOR DRAPERY SERVICE BUSINESS, 7301 PENN AVENUE. C.L. NO. 100 City Manager Prosser reviewed Council Letter No. 100 regarding consideration of the appropriate zoning classification for a drapery service business. He stated The Drapery Place is proposing to relocate to 7301 Penn Avenue as a result of being displaced by the Phase II Shops at Lyndale project. Keith Glanzer, President of The Drapery Place, described and answered questions regarding his business operation. Council Member Rosenberg noted that the adjacent residents appear to accept this type of business over the previous proposal for the site. She asked whether a stipulation restricting the subletting of the building could be required. City Attorney Dean indicated that the Council could stipulate that the building could only be sublet with City Council approval. S/Rosenberg to determine that The Place service business is a permitted use in a C-l district: and that the followina stipulation to the relocation of The Drapery Place to 7301 Penn Avenue: That any sublet of the 7301 Penn Avenue buildina require the approval of the City Council. Item AIRPORT STATUS REPORT report. No Item 77TH STREET PROJECT STATUS REPORT Council Meeting Minutes Community Services Director reviewed the status of the 77th Street Project indicating work east of Portland Avenue will begin on March 28 and construction of the Humboldt Avenue storm sewer to Wood Lake is scheduled to begin in May. Council Member Sandahl requested information on the status of excess land near the intersection of the new 77th Street, 76th Street, and Emerson Avenue. Item LEGISLATIVE REPORT Administrative Services Director reviewed the status of potential state in a funding reductions to the L.G.A. and H.A.C.A. programs which could result loss of $303,000 in revenue to the City. Council Member Susag requested that legislation affecting funding and its impact on the City be scheduled for discussion at a City Council Study Session. Item Council Member Susag invited the public to the Human Rights Commission Meeting scheduled for 7:00 p.m. April 4, 1995 at which Susan Neis of Cornerstone will be guest speaker. The City Council commended the Planning Commission for its extra efforts in developing the Adult Use ordinances and the comprehensive revision of the Zoning Code. MemberSandahl Councilsuggested special recognition be given to the Planning Commission. Mayor requested staff attention to the readability of maps in the Council packet indicating that the maps for items and were difficult to read. that the followina claims and payrolls be approved: RICHFIELD BANK & TRUST CO. Checks: 5054550588; 51038-51258 March 27, 1995 BANK Checks: 8500-8520 Payroll: 84967-85253 5 ADJOURNMENT The meeting was adjourned by unanimous consent at p.m. Date Approved: Martin J. Mayor James D. Prosser Thomas P. Ferber City Manager City Clerk