HRA 07/21/1997 JOINT - 29801JOINT HRA/CITY COUNCIL MEETING OF JULY 21, 1997
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The Housing and Redevelopment Authority and the Fridley City
Council met in a joint conference session on July 21, 1997. The
purpose of the meeting was to discuss the Master Plan and the
contract for exclusive negotiations for the Fridley Executive
Center.
Those in attendance were: Nancy Jorgenson, Robert Barnette, Steven
Billings, Dennis Schneider, Ann Bolkcom, John Meyer, Jim McFarland,
Duane Prairie, Virginia Schnabel, William Burns, Barbara Dacy, John
Flora, Jim Casserly, Dave Jellison, and Leslie Jowett.
Ms. Dacy, Community Development Director, stated that there were
two issues to be discussed regarding the Fridley Executive Center.
These issues are whether the City should continue to market the
site as proposed in the current Master Plan; and if the City should
continue a contractual relationship with MEPC.American Properties.
Site Development:
Ms. Dacy presented a video tape on "tech flex" buildings in Golden
Valley, Eden Prairie, and an operation center Energy Park in St.
Paul. The complex in Golden Valley is 90,000 square feet, 16 feet
to 18 feet in height and occupied by Cyber Optics and Work Station
International. The video showed the exterior, as well as the
interior offices. The 90,000 square foot complex in Eden Prairie,
adjacent to the Vikings training camp, is currently under
construction and the majority of the committed tenants previously
occupied Class A office buildings. The operations center in St.
Paul is 100,000 to 150,000 square feet and is a two-story building.
Ms. Dacy stated that at Centre Pointe in Roseville a 100,000 square
foot tech flex building is being constructed by Ryan Construction.
Mr. Weir developed this one-story office building which houses a
day care center. Ms. Dacy stated that a lot of the same
information Fridley has about the market was given to our
counterparts in Roseville. Roseville had to go through a decision
making process to take advantage of what is marketable at this
point in time or wait for an opportunity to develop the site for
corporate offices. The decision was made to develop a portion of
the site as tech flex. They are in the process of closing on two
sites for hotels, and they still have 16 acres available to market
as corporate office space.
Mr. Jellison, MEPC, stated that CSM is developing the Roseville
site, but they did not want to look at Lake Pointe. The Marriott
people said it was too premature, and there was not enough service
areas to make it work.
Ms. Dacy presented four options or scenarios for development of the
� Fridley executive center (formerly Lake Pointe). Option A is for a
Corporate Office Park, represented in the existing Master Plan, of
FRIDLEY CITY COUNCIL/HRA MEETING OF JULY 21, 1997 PAGE 2
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582,000 square feet in four office buildings. There is 90,000
square feet of retail and service uses included in this option, as
well as all three other options.
Option B is for an operation center/office building with a 185,000
square foot multi-story office building and 261,800 square feet in
two operation center buildings (these are two, two-story
buildings). MEPC has a proposal pending with a company for this
use.
Option C is a mixed use park with 250,000 square feet in two multi-
story office buildings and 100,000 square feet in two, one-story
"tech flex" buildings. Tech flex means a one-story research and
development facility with a higher'grade appearance than a typical
one-story office/showroom facility..
Option D is all "tech flex" of 240, 000 square feet in two or more
tech flex, one-story buildings.
Ms. Dacy summarized the financial impacts of each of the options in
terms of the amount of annual taxes and the present value of tax
increment. They are as follows: Option A, $2,687,513; $8,529,938
(TIF) ; Option B, $l, 974, 588; $7, 124, 357 (TIF) ; Option C,
$1, 462, 278; $5, 071, 479 (TIF) ; and Option D, $738, 835; $3, 485, 934
�--� ( T I F ) .
Ms. Dacy stated in Options A and B it is assumed that all the land
is written down to zero. Options A, B, and C assume that all of
the parking ramp expenses are assumed by the HRA (and paid for with
tax increment). Option D assumes land sales and no parking ramp
expenses because the proposed development is en.tirely one story
with surface parking. Options C and D also assume revenue from a
land sale for the one-story building.
Councilman Schneider asked if the cost for a parking ramp was $7.5
million dollars.
Mr. Burns, City Manager, stated that the cost is $7,500 per parking
space. The ramp at the municipal center was $5,000 per parking
space.
Ms. Dacy stated that the cost for a new ramp is $6,500 to $8,000
per parking space depending on the height.
Mr. Meyer stated that $7,500 to $8,000 per parking space is the
going rate when you have multi-level parking.
Ms. Dacy stated that "tech flex" is a growing market, as companies
are downsizing and looking for less expensive lease rates.
�--� Mr. Prairie stated that Options B, C and D would not be as
attractive as Option A.
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FRIDLEY CITY COUNCIL/HRA MEETING OF JULY 21, 1997 PAGE 3
Ms. Dacy stated that in Options A and B, all of the parking is in
ramps, with the exception of 15 percent surface parking. In Option
C, half the site is "tech flex" and all that parking will be
surface parking. There is, however, 250,000 square feet of office
buildings which involves about a 1,000 car parking ramp.
Councilman Schneider asked why Option A could not proceed.
Ms . Dacy stated that the City has received comments about the CEO
appeal, and there is concern about Fridley's image.
Mr. Jellison stated that over $35,000 was spent in attempting to
have Lawson 5oftware locate on this site. The corporate
headquarters building was redesigned with a high tech innovative
image, as well as a research and development building. There were
two buildings proposed for a total of 340,000 square feet. Lawson,
however, did not envision Fridley as their corporate headquarters
and they relocated in St. Paul.
Ms. Dacy stated that it is still possible to proceed with Option A,
but it may be some,time before this would occur. The question is
how long should the City wait.
Councilman 5chneider felt that waiting would not change the City's
image.
Mr. Burns asked if there were fewer companies looking for corporate
space.
Mr. Jellison stated that companies today want greater flexibility.
He felt that "tech flex" does provide this alternative, and the
trend is growing. He cannot think of any corporate campus being
constructed in the Twin Cities at this time.
Mr. Meyer stated that H.B. Fuller was expanding their campus.
Councilman Schneider felt that companies start as "tech flex." If
they are successful and grow, they look at a corporate campus.
This opportunity may be provided in the mixed use.
Mr. Jellison stated it is their hope that this would happen. He
stated that when companies grow to a certain point they want that
corporate image.
Some other companies approached for the possible use of the site
were U.S. WEST, Pentair, Target, and Piper Jaffray. All have found
other facilities, with the exception of Piper Jaffray which will
not make a decision until later this summer. Their interest would
be in an operations center.
---� Mr. Meyer asked Mr. Jellison if he has heard any criticism of the
,-� s i t e .
FRIDLEY CITY COUNCIL/HRA MEETING OF JULY 21, 1997 PAGE 4
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Mr. Jellison stated that the access has been a concern, but there
is the new plan for upgrading the intersection. He knows that the
City would like to have Option A, but companies are more concerned
about bottom line and flexibiiity than upgradinq th�ir image.
Councilman Billings felt that Lawson would not have changed their
mind regardless of what Fridley offered, as they wanted to locate
in downtown St. Paul.
Councilman Billings stated that the buildings constructed on this
site will last longer than the TIF district. He stated that City
should look at the impact of the taxes after the district expires
after twenty years. One-sixth of the annual taxes was considered
as the City's portion, the net would be: $5,400,000 for Option A;
$5, 800, 000 for Option B; $7, 400, 000 for Option C; and $10, 900, 000
for Option D. The point is that the City should be looking for
something beyond the life of the TIF district.
Councilman Billings stated that the question is priority. Should a
larger amount of taxes be generated for the good of the community
(the school district and county as well as the city) or should the
City be looking at how much taxes can be generated for the City?
Councilwoman Bolkcom felt that constructing a fancy building would
�-.1 not change the City's image. This is a blue collar suburb, and
Fridley is not Minnetonka or Eden Prairie. This is not a negative,
and there is nothing wrong with our City, but Fridley is an oTder
community. Communities like Eden Prairie and Maple Grove are
relatively new.
Councilman Barnette felt that what was envisioned was a Radisson
for the comznunity. If this type of development occurs it would
enhance the City's image.
Councilman Schneider stated that he did not care if the City waits
several years if, in fact, this is an image issue.
Mayor Jorgenson stated that she does not foresee a major hotel
built on the site, as the market is not here for such a facility.
She does not necessarily favor a service center but felt a
technical center would be good for the site.
Councilman Barnette asked if Fridley's image was different from
Roseville's.
Mr. Jellison stated it was, in that Roseville has Rosedale Shopping
Center, newer homes, and more retail.
Mr. Prairie stated that there is not a shortage of land adjacent to
the freeway in the north and west areas, as Plymouth and Maple
n Grove have land available.
FRIDLEY CITY COUNCIL/HRA MEETING OF JULY 21, 1997 PAGE 5
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Ms. Schnabel stated that Roseville also has major freeways to the
downtown areas.
Councilman Billings felt that the City has to look at what is
feasible based on all the factors in the market place. If Option A
could be developed in the short term, this would be the way to
proceed. This, however, does not seem realistic, and other options
may need to be considered. He questioned how viable is Option B.
Mr. Jellison stated that there is probably a 25 percent chance of
proceeding with Option B. A company would still have to be
convinced to locate in Fridley. The greater viable avenue is
Options C or D with a high tech building. He would go to their
board to construct a s�eculative building without a lease. High
tech buildings are hig;i quality facilities that most cities are
happy with. He felt t��at there needed to be some development in
order to get momentum going.
Ms. Dacy asked if there is a legitimate chance of attracting a
hotel and restaurant if Option C is pursued and "tech flex" is in
operation.
Mr. Jellison felt that a Fairfield Inn or a Hampton Inn would fit
in nicely on this site.
^ Ms. Schnabel felt that it was time to begin development of this
site. She would fav�r Option C.
Councilman Schneider felt that there was a consensus for Option C.
Mr. Meyer asked if the site would require major soil remediation.
Mr. Flora stated that the majority of the areas were cleaned up,
and the soil was re-compacted.
Councilman Billings asked if sites 1 and 2 were developed under
Option C, if it may be possible to market sites 3 and 4 for
offices.
Mr. Jellison stated he cannot answer that question but would do
everything he could to market this as an office site. It is more
likely that they would find tech users than multi-story office
users. However, once sites 1 and 2 are developed there is a much
better chance of attracting other companies.
Ms. Dacy stated that there is some time available to the City
Council and HRA to market the balance of the site for office while
sites 1 and 2 are being developed.
Mr. Burns stated that the City was asked by an existing company in
,-� the City that needs multi-story office space to put together a
proposal for their company. The City was asked w�at incentives
FRIDLEY CITY COUNCIL/HRA MEETING OF JULY 21, 1997 PAGE 6
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would be provided for a 250,00 square foot building. Option C
could accommodate this request.
Mr. Jellison stated that the only building they would try to
construct speculatively would be the high tech. The two-story
buildings would be built to suit.
Mr. Casserly stated that this existinq company is at the planning
stages. The earliest they could respond to a proposal would be in
nine to twelve months.
Councilman Billings asked how soon the City would know if an
operations center is feasible.
Mr. Jellison stated that he should know in the next 30 to 45 days.
In the meantime, he would start firming up the tech space and
obtain some preliminary figures.
Councilman Schneider stated that he would favor proceeding with
Option C but would not like to eliminate the request from the
existing company in Fridley.
Ms. Jowett stated that if development could proceed on the site
this might change people's thoughts 'to take a second look and
n locate on the site.
Mr. Jellison stated that it was a pleasure working with the City
and its staff. The lack of development on the site has nothing to
do with staff's lack of enthusiasm.
Councilman Billings asked what time period MEPC would be looking at
for an extension of their contract.
Mr. Jellison stated that if the City decided to continue to pursue
Option A, MEPC may or may not wish to extend the contract,
depending on their board. If the City pursues other options, they
would probably start developing a plan for the office service
building and then take it to their board in September for approval.
They would expect the contract would be extended for a reasonable
time to construct and market the building, probably about twelve
months.
Councilman Billings stated that, as he understands, MEPC would want
a commitment for sites 1 and 2, under Option C and then would re-
evaluate the rest of the site around the first of the year.
Mr. Jellison stated that MEPC would be awfully disappointed if
there was board approval for sites 1 and 2, and then the City let
someone else come in and build the same type of product on the
balance of the site. Normally, if a company was going to locate on
� the site they would go through them.
FRIDLEY CITY COUNCIL/HRA MEETING OF JULY 21, 1997 PAGE 7
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At this time, Mr. Jellison and Ms. Jowett left the meeting.
Councilman Billings stated that he was willing to eliminate Option
A because he did not know if it would ever happen. MEPC has done a
good job for the City. He would be willing to work with MEPC for a
few more months to see what plans they develop for the operations
center. Perhaps the City could sell them the land to construct a
one-story building.
M�. Casserly stated that if the City proceeds with the flex space,
the question is how long does the City hold on to the balance of
the site. There is also the question if the existing company in
Fridley would be comfortable going to MEPC. The question is if the
City wants to force the existing company or any multi-users to work
with MEPC. He does not have an answer and felt thi:; needed to be
discussed further with MEPC. '
Ms. Dacy stated that in a telephone conversation with Mr. Commers
on Monday, his comments were that he would like the City to contact
the existing company in the immediate future and explain the City's
plans for the site. He felt that if Option A were to occur it
would probably be with this company. If not, Option C and D may be
the way to proceed.
n Councilman Schneider would agree that if there is a chance with the
existing company in Fridley it should be pursued.
Mayor Jorgenson stated that even if the City meets with them, is
the City willing to wait for them?
Mr. Casserly felt that the tone of the meeting with tYiis company
was that the City is doing high quality tech space. If this fits
in with the company's plans half the site can be reserved for a
certain period of time.
Councilman Schneider felt that it would be beneficial to have a
meeting before making a decision regarding MEPC.
Councilman Billings asked if the existing company has expressed an
interest in the entire site.
Mr. Burns stated that they have approached the City in the context
of a five-year planning process.
Councilman Schneider felt that someone on the CEO's staff of this
company should be contacted.
Mr. Casserly stated that if MEPC were only allowed to develop half
the site, they would have to make a decision. However, if there
was only a certain amount of time the site would be held for this
n existing company, MEPC may be willing to proceed and develop the
site. It would be good to contact this existing company before an
FRIDLEY CITY COUNCIL/HRA MEETING OF JULY 21, 1997 PAGE 8
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agreement is signed with MEPC. The City should advise this company
about the plans and that if they want to exercise an option with
the site, it needs to be.done in a certain period of time.
Ms. Schnabel stated that the question is how much control MEPC
wants over the development of the operations center or possibly a
hotel.
Ms. Dacy felt that, in summary, there was a consensus on pursing
Option C. Second, the City should contact the existing company as
soon as possible and discuss their future plans. Third, to begin
negotiations on a contract with MEPC to give them the rights to
build two, 50,000 square foot one-story tech flex buildings within
ninaty days after approval is executed. Finally, Council and the
HRA' would consider a proposal for the operations center, and if in
the next 30 to 45 days, the pending proposal is accepted by the
company. There also is a preference to preserve the east part of
the site for a multi-story office.
Councilman Billings stated that his personal feeling is that if the
operations center proceeds, it would take the space where the tech
building would have been constructed.
Ms. Dacy stated that in regard to the Master Plan, it has been
�=°"approved by the HRA, City Council and Planning Commission. If
��' there is a lower density on the site it can be interpreted that no
adjustments are needed. The other interpretation, because it is a
different approach, can be to require amendments to reflect
Option C.
Councilman Billings felt that the interpretation that should be
taken is one that allows the flexibility of proceeding or not
proceeding with the office building. This gives the City the
ability to construct less density. The neighborhood did not want a
six-story building where people could look down into their yards.
The immediate neighborhood would not have objections to taking this
interpretation. In terms of those that live farther from the site,
their concern may be the financial impact. They may have
preference for the other interpretation. This interpretation would
require a public hearing every time there is a modification of the
direction. The first interpretation gives more flexibility.
Mayor Jorgenson felt that the neighborhood wanted less density.
Councilwoman Bolkcom felt that residents would be happy with some
development on this site. The City should take the first
interpretation.
Causeway Lighting:
n Mr. Burns felt that it may be appropriate at this time to discuss
the causeway lighting on Highway 65.
FRIDLEY CITY COUNCIL/HRA MEETING OF JULY 21, 1997 PAGE 9
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Councilman Barnette felt that this was a good idea. Fridley needs
some identity. He listened to the residents .at the hearing. No
one was in favor. Several persons have contacted him and are in
favor of it. Comments were that the lake should be cleaned rather
than spend money on lighting. That is not the issue, as funds have
been earmarked for this project and could not be used to clean up
the lake.
Councilman Schneider stated that he has heard only from residents
that are opposed. He really did not know if the liqhting would
change the City's image. If the City is serious about their .image,
hire someone in this field to come up with a plan on how to turn
the City's image around.
Ms. Schnabel stated that she would rather spend the funds to have
University Avenue mowed.
Councilman Billings asked the HRA members if they would be willing
to spend the $60,000 for causeway lightinq.
Mr. Meyer stated that he would be willing to spend funds for this
lighting.
Mr. Prairie felt that there were other places where they should use
� these funds such as University Avenue. He does not necessarily
disagree with the lighting, but it would be down on the list of
priorities.
Ms. Schnabel stated that it would be nice to have new guardrails on
Highway 65 along Moore Lake. 5he was not in favor of the lighting,
as she felt lighting would detract from the lake. This in itself
creates an image for Fridley.
Ms. Dacy stated that staff could investigate replacing the
guardrails. Mayor Jorgenson felt that this was the state's
responsibility. Ms. Dacy said that the state could be asked to
replace them.
Mr. McFarland stated that he would be in favor of the lighting.
Ms. Dacy stated that the image is very important. The City is
building on the concepts addressed many years ago. There are a lot
of projects proceeding that address some of these issues, and the
fence on University Avenue may just take some time.
Councilwoman Bolkcom suggested asking the residents what can be
done to improve the City's image.
Councilman Billinqs stated that the only way the state would remove
the fence along �University Avenue was if the City entered into a
� hold harmless agreement.
FRIDLEY CITY COUNCIL/HRA MEETING OF JULY 21, 1997 PAGE 10
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Ms. Dacy stated that it is important to have a decision on the
causeway lighting item was originally scheduled for July 28.
Councilman Schneider stated that he did not know if he would be at
this meeting, but he would let staff know if he is not at the
meeting, the item should be scheduled for August 11.
TIF Assistance•
Councilman Billings stated that he has submitted a memorandum to
the HRA regarding his concern about providing funding to
Mr. Paschke.
Mr. Prairie asked if the request was made before the building was
started.
,
Ms. Dacy stated that the actual �authorization to prepare the
development contract occurred after issuance of the building
contract. From a legal standpoint, it is to be discussed prior to
establishing the district. From a policy standpoint, the HRA has
not provided TIF assistance after a project has begun.
Ms. D�.cy stated that the soil reports have been verified. There is
a history of that development receiving TIF assistance in the past.
Mr. Paschke submitted a letter that outlined his costs for soil
� correction and the soil reports. As part of the development
contract, Mr. Paschke would need to make a certification that he,
in fact, did incur those costs and the project would not have
proceeded without TIF assistance.
Councilman Billings stated that in this case, his personal feeling
is that staff has gone overboard because Mr. Paschke comes off as
brash and argumentative and that he is entitled to this assistance.
The City did a project with him on this site several years ago and
had to work hard to get him to conform to the building contract and
what he was supposed to do on the pond. There are rumors that even
on the addition he, is not building it to code and is taking
shortcuts. Several years ago, staff put together a packet because
he stated that staff was not treating him nicely. This packet
included all that he was not doing. Here again, he wants more
money and has a history of not being cooperative with the City
saying he is entitled to it. Councilman Billings doesn't think we
should give him money if he is not going to play by the rules.
Councilman Schneider stated that he started installing streets
wherever he wanted them.
Ms. Schnabel asked what value this adds to the property.
Ms. Dacy stated that the construction value is $304,000 or about
$25 per square foot and a$12,000 increase in taxes.
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FRIDLEY CITY COUNCIL/HRA MEETING OF JULY 21, 1997 PAGE 11
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Ms. Dacy stated that in the storm that occurred on July 1, the
Chief Building Official reported to her that when he went to
inspect the damage the walls had fallen down and the core fill had
not been installed. Mr. Paschke is not calling for his inspections
so now he will be forced to dig up the sewer and water. The
architect is saying that Mr. Paschke is not constructing the
building according to the plans. The City's Chief Building
Official is seriously considering revoking the building permit
which has never been done in the City. No certificate of occupancy
will be issued at this point in time. The development contract
always requires a certificate of occupancy. The HRA is under no
legal obligation to approve the resolution to authorize the
development contract. It is entirely within their discretion.
Councilman Billings stated that he is not trying to give direction
to the HRA. He would appreciate it; however, if they would
reconsider the plan to provide any funding. Perhaps including a
clause in the agreement that all building will be done in
conformance with the building code. He wanted to bring to their
attention the fact that Mr. Paschke has not performed in the past
without a tremendous amount of work on the part of staff to get him
to perform. Personally, he takes exception to giving someone money
who gives staff a bad time when they are trying to do their job.
� Ms. Schnabel state
resolution, the Chie
meeting. Ms. Dacy
report provided.
d that at the time the HRA considers the
f Building Official should probably come to the
stated that this could be done or a written
Mr. Meyer stated that this work may need more red tags or staff
should talk to the architect.
At this time, 10:35 p.m., the HRA members left the joint meeting.
Code Enforcement:
Councilwoman Bolkcom asked what was happening to repeat offenders
who violate the City Code.
Ms. Dacy stated that tablets have been distributed to City
personnel out in the field who can report code violations. The
City is trying to take care of repeat offenders.
Councilwoman Bolkcom felt tha
approach on those who have not
City could pursue what other
problems and repeat offenders.
Locke Lake:
t the City needed to take a strict
complied with the code. Perhaps the
communities do with these types of
n Mr. Burns, City Manager, stated that he has written a memorandum
regarding proposed actions on Locke Lake issues. Staff is trying
FRIDLEY CITY COUNCIL/HRA MEETING OF JULY 21, 1997 PAGE 12
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to deal with the homeowners regarding repairs and/or modifications
to retaining walls. Mr. Haukaas met with several of the homeowners
regarding the retaining walls. Several options are being
suggested.
Mr. Burns stated that in order to facilitate the rebuilding
process, each abutting Locke Lake property owner would be sent a
letter advising them that the level of the lake would be lowered
and that they would have an opportunity to repair and/or make
modifications to retaining walls. Further, the City would advise
that the water level would be restored to the 821 foot level next
spring. The City Attorney indicated that he would feel comfortable
defending these decisions.
Mr. Burns stated that the City will receive a r-ebate of about `
$10,200 from the Rice Creek Watershed District. Perhaps this money
could be used to assist property owners for modifications to the
retaining walls to allow them protection from the water level of
821 feet. .
Mr. Burns stated that Mr. Hovey from the Department of Natural
Resources felt that this was a reasonable approach, but he could
not guarantee they would approve a new operating permit at the 821
elevation. The City should submit this request.
� Mr. Flora stated that the biggest problem is with Mr. Halvorson's
property. When the lake went down the retaining wall cracked.
When the water was raised to 821 feet it topped the concrete, and
water saturated the fill behind the wall. The City offered to give
him rock to support the wall, but he does not want the riprap. He
wants the wall replaced with concrete.
Councilman Schneider asked the cost to replace the wall with
concrete.
Mr. Flora stated that the lake would have to be completely drained,
and the cost would be about $75,000 to $100,000.
Councilwoman Bolkcom stated that whether the lake is 820.3 feet or
821 feet Mr. Halvorson is still having problems.
Mr. Flora stated that at 820.3 feet he is in limbo, as the wall is
tipping and is cracked. The soil in back of it becomes very wet
and increases the weight. Ultimately, the wall �till collapse.
Councilman Schneider asked if the wall could be built up.
Mr. Flora suggested that this be done, but Mr. Halvorson does not
want to do it. There is a gap between Mr. Halvorson's property and
the dam. The City replaced that with riprap to tie into the dam
� and to keep his wall as vertical as possible.
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FRIDLEY CITY COUNCIL/HRA MEETING OF JULY 21, 1997 PAGE 13
Councilman Schneider stated that even if the lake level is at 820.3
feet he still would not be satisfied.
Mr. Flora stated that Mr. Halvorson said if the City installs
riprap over his wall he would lose sale price value because it
would look bad. He does not like the rock, and he does not want
it.
Councilman Barnette stated that the only thing that will make him
happy is if the City rebuilds the wall.
Mr. Flora stated that he will not let the City take down the fence
to do the riprap. He wants the water level kept at 820.3 feet.
Mr. Burns stated 'that there is a concern that if the DNR lets the
City put the wall back up they want pre-treated timbers.
Mr. Flora stated that the DNR will give a permit for riprap.
Anything else is difficult to obtain.
Councilman Barnette stated that it sounds like Mr. Halvorson may
eventually sue the City. Mr. Halvorson may wait until the City
raises the�water level and the wall collapses. Then he will sue.
Mr. Burns stated that he may sue the City anyway under the existing
circumstances.
Councilman Schneider asked if the City did damage.
Mr. Burns stated that he did not believe so. Mr. Halvorson's
argument is that.we damaged his property when we let the dam
collapse. We should have been more vigilant. Mr. Halvorson said
that he even gave us warning.
Councilman Schneider asked if there were issues with the other
property owners.
Mr. Flora stated that they did not give definite answers as to the
riprap rock. .
Mr. Flora stated that riprap could be placed on the top of
Mr. Halvorson's wall which would preserve it for about another ten
years or so.
Mr. Burns stated that if the City is under the threat of a lawsuit
funds can be spent without establishing a precedent for the other
properties.
Councilman Barnette stated that if other property owners saw the
City working on Mr. Halvorson's property they may ask what the City
can do for them.
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FRIDLEY CITY COUNCIL/HRA MEETING OF JULY 21 1997 PAGE 14
Councilwoman Bolkcom stated it might be looked on that the City is
trying to offer more protection for the dam.
Mr. Burns stated that he would probably talk with Mr. Halvorson
personally. If Mr. Halvorson is willing to go with the riprap
proposal and to sign a release, Mr. Burns questioned if the City
should proceed. The estimated cost is $6,500.
Mr. Burns confirmed that it was acceptable to send the proposed
letter to the property owners. Mayor Jorgenson and Councilman
Schneider indicated that they would support the offer to
Mr. Halvorson. Councilwoman Bolkcom abstained from a vote, and
Councilman Billings remained neutral.
Mr. Flora answered questions by Councilman Schneider on the Locke
Lake summary and the allocation of the $59,936 from the Locke lake
Dam account to the Stonybrook Creek project.
Vacancies:
Mr. Burns stated that there were three vacancies to be filled. He
requested permission to fill these positions. There were no
objections raised.
Councilwoman Bolkcom commented on the memorandum from Dave Sallman
regarding the Crime Prevention Specialist position. So far, staff
has been able to survive while this person is on disability leave.
Councilwoman Bolkcom felt that perhaps other members of the staff
could take up some of the slack for this position. Mr. Burns
stated that Mr. Sallman could discuss this further at a Council
meeting if Council so desires.
Mayor Jorgenson stated that there is a request for a proclamation
for Blue and White Sunday: Mr. Burns felt that perhaps the
proclamation was self-serving. Mayor Jorgenson felt that it could
be reworded, and the last three "whereas's" eliminated.
Councilman Barnette stated that the school board wished to use the
City's facilities permanently. Perhaps the only cost to them might
be for Brian Strand's time.
Mr. Burns stated that this could be done, as the City has used
their pools and gymnasiums. Every effort would be made to
accommodate their meetings which may be in conflict with the
Environmental Quality and Energy Commission. Some chanqes may be
needed in the meeting times or rooms. -
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FRIDLEY CITY COUNCIL/HRA MEETING OF JULY 21, 1997 PAGE 15
Meeting was adjourned at 11:40 p.m.
Respectfully submitted,
Carole Haddad
Secretary to the City Council