02/01/1982 - 00013010., n
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THE MINUTES OF THE MEETING OF THE FRIDLEY CITY COUNCIL OF FEBRUARY 1, 19E2
The Meeting of the Fridley C�ty Counc�l was called to order at 7::,0 p. m.
by Mayor Nee.
PLEDGE OF ALLEGIANCE:
Mayor Nee led the Council and audtence in the Pledge of Allegiance to
the Flag.
ROLL CALL.
MEMBERS PRESENT• Mayor Nee, Councilman Fitzpatrick, Councilman
Hamerm k, Councilman Schneider, and Councilman
Barnette
h1EMBERS ABSENT: None
APPROVAL OF PqINUTES -,IANUARY 18, 1982.
P10TION by Counc�lman Fitzpatrick to a��rrove the minutes as presented.
Seconded by Counc�lman Schne�der. L'pon a voice vote, all vottng aye,
Mayor Nee declared the mot�on carried unan�mously.
PROCLAPIATIOfd - 1982 - NATIONAL YEAR OF DISABLED PERSONS IN FRIDLEY�
Mayor Nee stated he has signed a proclamation des�gnating 1982 the
National Year of D�sabled Persons in Fridley, and this proclamation
will be circulated, as requested by the petitioners.
ADOPTION OF AGENDA
Councilman Hamernik requested the following rtem be added to the agenda:
"Consideratton of Two Codominium Conversion Permits - Gordon Aspenson,
17 Rice Creek Way"
MOTION by Counctlman Schneider to adopt the agenda with the above addition
Seconded by Counc�lman Hamerm k. Upon a voice vote, a11 voting aye, F"ayor
Nee declared the motion carried unanimously.
OPEN FORUM, VISITORS:
Pir. Dave Harris requested the Council consider Item 15 on the Agenda,
in con,7unction w�th Item 2, as a representative from Da�n Bosworth, Inc.
was present regarding these �tems.
Mayor Nee stated he could see no problems in considering the agenda items
as Pir. Flarris requested.
PUBLIC HEFlRIf�GS•
CONTINUEG PUBLIC HEARING ON CONSIDERATIOf! OF �1 HOLSING PROGRAM TO FlLLOW
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hiayor Nee reopened this public hearing at 7:4D p. m., which was continued
from the December 7, 19�1 meeting.
h1r. Boardnian, City Planner, stated the im tial plan that was approved 6y
the Council on December 7, 19�1 was submitted to the f4etropolitan Council
and they, in turn, did approve the plan. h1r. Boardman stated the Counc�l's
step was the tabling of tiie actual program, which has to be submitted to
the Minnesota Hous�ng Finance Agency for appreval. He stated this body
then has 30 days to review the program and elther approve o; deny �t.
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COUNCIL MEETING OF FEBRUARY 1, 1982 PAGE 2
Ntr. Boardman stated Diane Eliason, representat�ve of Dain Bosworth,
Inc., has developed the program and tt is su6m�tted for the Council's
review under the public hearing. He stated, if the program is approved
this evening, �t can then 6e submttted to the Minnesota Housing Finance
Agency.
Mr. Boardman stated the first two steps in the process are completed,
the Council is now considering step three, the fourth step would be
� action by the Minnesota Houstng Finance Agency and the fifth step
would 6e any contracts entered into w�th the developer.
h1r. Boardman stated there are not specific commitments by the City
Council in the program.
Councilman Schneider stated he is not opposed to the development as
being proposed, but has a prob�lem with what �s go�ng to happen on
steps four and five. He stated the Council will be asked, at some
point, to use tax increment funds for rental subs�dy a�d �ndicated he
was not prepared to take this act�on.
* Councilman Schneider stated h�s concern is that the Council, in effect,
is givtng an s�yned, check without a specific amount and comm�tt�ng
future council's as they don't know what the leve7 of subsidy would be
20 years from now and felt it was not fair to tie a future Council to
a comr��itment made by this Council. He stated he didn't feel the City
should be in the rental housing bustness, and didn't feel the taxpa�ers
or tax structures can support rent subsidies. Courcilman Schne�der
stated he felt it would be unfair to use property taxes to su6s�dize
rents, if the tax increment failed.
*Councilman Schneider stated the use of tax increment money for the
rental subsidy will have to remain acttve for a 7ong per�od of time
and that means the schools, the county, and others will be losing
� money for some t�me and probably would not be made up at a later date.
Counc�lman Schneider stated the Housing and Redevelopment Author�ty,
as of yesterday, was unaware of using the potent�a1 of tax increment
�financing. He stated he felt the staff hasn't been fair and open w,ith
che Lounctl in the way this has been handled
Councilman Schneider stated what they are talk�ng about is land write-
down, tmprovement of the land, potentially deferring assessments, and
subsidtzing rents and he can't say tt ts in the publtc interest. Ne
stated he would have to oppose this plan on the basi5 of what he knows
about steps four and five.�
Mr. &oardman, City Planner, stated this ,lan vras submitted to tr�e
Housing and Redevelopment Authority and they rece�ved the bond plan,
as approved by thi� City Counc�l and prior to submittal to the Metropol-
itan Counctl. He stated, at that time, they discussed the poss�bilit�es
of how �ax increments could be used. Mr. Boardman stated he advised
them that the tax increment funds could be used for subsidy He stated
the Housing and Redevelopment Authority wouldn't take act�on, unless
they received some indication from the Council that this was a needed
pro,7ect. He didn't feel tt is a situation where they were trying to
htde anything and did inform the Council that the HRA v�ewed this issue
as cool and would only act on it �f the Council so d�rected.
� Councilman Barnette asked if the C�ty does, in fact, need low and
moderate income housing, Mr. 6oardman stated that �s an issue they
are look�ng mto by doing a study and hoped to have soine �nformation
avatlab7e at the February 22 Council meet�ng.
MINUTES AP1EfJDED BY CITY COUNCIL OPJ FEBRUARY 22, 1982
*
Paragraph5, line 2 change the word "unsigned° to °s�gned"
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Paragraph E, line 2 change the words "have to" to "require the tax
increment finance district"
*Paragraph 7, line 3 add the words "for rental subsidy" after the word
"financ�ng"
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COUNCIL MEETING OF FEBRUARY 1, 19�2
PAGE 3
Councilman Hamerm k stated he also had a problem with what ts betng
proposed. He stated, in some respects, some of the comments made 6y
Councilman Schneider are in line with h�s thoughts.
Counc�lman Hamerm k stated he is not opposedito development in the
City, but to have development at substantial cost to the taxpayers
he has reservations that this is not in the best interests of the
City.
Counc�lman Hamerm k stated there have been numerous things that have
corre up regarding this development that are new and different from
what the City has looked at in the past, and feels they have a problem
addressing the �mpact of some of the things.
Councilman Hamernik stated he has reservations with the use of tax
increment for rental substdy and didn't feel comfortable with the
City being �n the subsidy area.
Councilman Fitzpatrick stated he agreed with the statement made by
Councilman Schneider regard�ng a danger of s�gm ng a blank check
since they don't know what these subsid�es might be in the future.
Councilman Fitzpatrick pointed out their original consideration
was the disirabil�ty of development in that part of the City. He
stated thts ts an area that failed to develop over a long period
of time because of �the problems with the land, soil, and drainage.
Councilman Fitzpatr�ck felt, in general, they shouldn't lose stght
of what he considers are everriding advantages of having such a pro,7ect.
Councilman Schneider stated he agrees this is a problem area, but one
of the keys in the tax increment district was to generate funds to
improve the drainage within the district. He potnted out, tf that
�ncrement �s used in the area of rent subsidy, he d�dn't know if the
increment would suppork other improvements in that district.
Mr. Dave Harris, 470 Rice Creek Boulevard, stated this is the only
method available today to sell bonds at a rate to make it possible
for a pro,7ect to yo forward.
Mr Harr�s stated, because of the soil and drainage condrttons in
the area, the C�ty will have that property for another 10 or 20 years
generating about $40,000 a year �n taxes until some other type of
program makes it poss�ble to develop that piece of property.
Mr. Harris stated, because of the high cost of financing today,
no one in their riqht mind would try to build apartments, but-
they a�°e tryiny something different wh�ch they feel would be good
for the C�ty. He state�l this law and cr�teria is not of their
choosing and they would rather go on the open market and not have
any su6s�dy, but that situation and option is not even open to them.
He stated, unfortunately, things have changed and not always for
the better and they have to do things now that are different.
Mr. Harris stated they are conf�dent the figures they are showing
are accurate and tax increment will support the pro,7ect and they
are willing to guarantee, based on tax increment that is available
under the pro,7ect, that they will not have to go �nto general revenues
for the subsidy. He also stated if the tax �ncrement doesn't prov�de
the subsidy, they w�ll make sure the C�ty isn't obligated for funds
out of general revenues to pay the rental subsidy.
Councilman Barnette stated he is not �nterested in the City gett�ng
�n the real estate business, but felt they are k�dd�ng themselves
when they say they are not going to get involved in these issues.
He felt the role of government often times �s to "prime the pump",
but from what he hears there are other ways to work this out where
the C�ty is a prime mover, without being left holding the bag.
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COUNCIL MEETING OF FEBRUARY l, 1982 PAGE 4
He stated these are different times w�th different methods of financ�ng
and was willing to listen to the Dain Bosworth representative.
Nls Diane Eliason, repsresenting Dain Bosworth, Inc., stated you have
to look at this proposal as a type of prtnciple and not as numbers.
She stated you run fun fi gures e�ery day and they won`t actually be
the same when the development begtns. She stated today they are looking
at what would get the pro�ect off the ground.
� P1s. Eliason stated, first of all, the requ�rement of 205� for low and
moderate income housing units must be met and if this is done, it
raises the other rents sky htgh. She stated, in approv�ng this program,
the Counc�l is not committing themselves to giving 209� of th subsidy,
but this would have to be worked out between the C�ty and the developer.
f�ls. Eliason stated the Council has to approve a pr�nciple so they can
work someth�ng out, but numbers specifically v�ould be difficult al this
time.
Councilrnan Schneider stated, from comments he heard, if it is given
today's interest rate and market, the pro,7ect probably couldn't
proceed without the City's or the Housing and Redevelopment Author�ty's
pledge of tax increment.
Ms. Eliason stated �n order to market any bonds, you need an AA or AAA
rating, therefore, support is needed from the City. She explained they
don't have a lot of opt�ons, but could possibly look at some techniaues
to ent�ce investors. Ms. Eliasan stated the idea of tax increment
financing is a way of easing the deftcit because they can't sell bonds
w�th a deficit.
Mr. Boardman stated there are means of trying to reduce the debt service
by reducing the �nitial amount of the ]oan, direct assistance of land
write-down, etc.
� Councilman Schneider pointed out they have already d�scussed doing these
things anyway. He stated he thought it would be a great development,
but has problems of the pledg�ng of tax increment money for rental
subsidy.
Mr. Mike Larson, 6390 Starlite Boulevard, stated the way the bonds
are raised to an AA or AAA rating is to have the City involved to
increase the debt worthiness of the bond. Mr Larson stated, thi°ough
the tax increment and he7p of the Housing and Redevelopment Authorrty,
the Council has already provided the means to improve this property
and a tremendous help for the development of this pro�ect and asked
at what point does it stop, as he felt the Council has already
provtded adequate incentive for the development.
Mayor Nee explained the proposal stnce this was a public hearing on a
housing program. He stated the proposal is to build fairly high
quality multiple dwelling um ts in the north end of the City. He
stated the Counc�l felt this was a good use of the land, however,
the developer came to them and stated, tri the present money market,
this pro,7ect couldn't be built and have the rents pr�ced competively.
Mayor Nee stated there appears to be a way to �ssue industrial
development revenue 6onds or tax exempt bonds to build this k�nd
of pro�ect and those bonds will sel7 at a rate of 13 to 13-1/2i
' interest, as opposed to the interest rate for conventional financing
of ll%. He stated the developer advises, if he can obtain the lower
tnterest rate, tt would mean they would be able to proceed Nn th the
pro�ect.
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COUNCIL PIEETING OF FEBRUARY 1, 1982 PAGE 5
Mayor Nee stated bonds can't be issued for thts purpose, unless 20ib of
the units are for low and moderate income housing which would mean a
subsidy that would meet Section 8 criteria. He explained the Section 8
program means a person would pay 25�� of their income for these hous�ng
um ts and someone else would pay the difference �n market rate. He
stated the question is who would pay the difference between the market
rate of those units for low and moderate income persons and what Section
8 provides. Fle expla�ned the proposal is that those differences could
be paid out of the tax �ncrement by the development.
Ms. El�ason stated the tax increment available would be $225,000 in the
first year and it appears 350,000 would be paid otat in rent subsidy.
Mayor PJee stated there �s a declining relationship there and, at some
point, there �s going to be a def�cit. He pointed out this development
is part of a bigger pro,7ect which deals with soil and drainage improvement
and felt this development w�ll not be able to make much of a contribution
to the tax �ncrement d�str�ct.
Ms. Eliason stated if they take the surpluses each year for 10 years and
put it in an interest bear�ng account, the total at the end of 10 years
would be �1,6�0,000 that could be pledged against the district to repay
its debt.
Councilman Hamerm k asked how much is left over, after paying the su6sidy
and not figurtng in any interest, at the end of the 10 year period.
P7s. Eliason stated they would have a little over $1,000,000.
Councilman Schneider asked what assumptions are they making �n regard
to property value and rental structure in the next 10 years. Ms. Eliason
stated they used a 7i increase each year in property value and, as far as
the rental structure, they looked at the pro,7ect with straight market
rents and started out with comparable rents in the City and 7ncreased
thern 1090 each year.
She stated the numbers they used to obtain the subsidy ftgures are what
they assume would be the average fam�ly renting and, based on that, came
up with some averages and increased them 8% each year.
Mr. Boardman stated one of the conditions when using funds in tax increment
districts, is to look at a 6ond sale at the beginning of the development.
He stated when the bond is sold, they would set aside funds for rent
subsidy in a separate pool to collect interest and these funds would
only be used for subs�dy payment. He stated the rest of the money would
be set aside for necessary improvements in the district
Councilman Schne�der pointed out the $1,000,000 would be necessary to pay
the subsidy which raises the questton when do they pay for soil corrections
and improvements.
Mr. Harris stated he didn't think anyone understands this completely, but
referring to the numbers, he is say�ng that is the best �nformation avail-
able today. He stated if they didn't have to meet the requirements of 20;
of the um ts for low and moderate income housing, this hearing proba6ly
wouldn't be necessary and he would ask to do this on a diffei°ent 6asis.
Mayor Nee asked if management of the tax �ncrement district isn't under
the ,7ur�sdiction of the Hous�ng and Redevelopment Authorrty.
Mr. Qoardman stated it was, 6ut what they are nuw talking about is the
housing tond and the bond issue falls under the ,7urisdict�on of the Council.
He explained until the Council makes some commitment that they are interes-
ted in going with a hous�ng bond program, the Housing and Redevelopment
Authority wouldn't be involved. He stated he has advised them, however,
the Counc�l may 6e considering a housing bond program.
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COUNCIL MEETING OF FEBRUARY 1, 1982
PAGE 6
Mr. Eoardman felt this comes down to the phtlosophy of whether the Council
can support the use of tax increment for rent subs�dy, and what staff �s
do�ng is painting out the opttons available to them to accomplish the
development.
Counctlman hitzpatr�ck stated he didn't th�nk the whole question is
whether they can philosophically support the rent subsidy, but �f they
would support a subs�dy that would work, and not one that wouldn't work
Ptayor PJee stated his posttion is that he is not convinced it would work,
Mr. Larry Comrners, Chairman of the Housing and Redevelopment Authority,
was asked if the H.R.A. would 6e willing to look at this item and submit
their recommendation.
P4r. Commers stated the H.R.A. hasn't had it presented to them, however,
there �s no reason why they couldn't take �a look at the pro�ect
No other persons in the audtence spoke regarding this housing program.
MOTIOPJ 6y Councilman Barnette to close the publ�c hearing. Seconded bV
Councilman Schneider. Upon a voice vote, all voting aye, Mayor Nee
declared the motion carried unanimously and the public hearing closed at
9:47 p. m.
The Counctl then proceed to Item 15, as requested 6y P1r. Harris, earlier
in the meeting.
� c CONSIDERATI�NnOF A REn�LUTIpNTAPPR�UIfdGcMnLTIFAMILYrP1�RTGAGEcREVENUE
MOTION by Councilman Barnette to table this resolution and refer the
� matter to the Haustng and Redevelopment Authority for their recommendation.
Seconded by Councilman Fitzpatrick. Upon a vo�ce vote, all voting aye,
hiayor Nee declared the mot�on carried unanimously
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Mr. Qave Harris stated lf the figures don't work out, they are not
interested in the pro�ect either, as they are also taxpayers of the
City and wnuldn't want a pro�ect that wouldn't work.
DLD BUSINESS•
I
ITY DEVELOPMENT BLOCK GRANT PROJECT
Mr. Boardman, City Planner, stated, as presented at the Counc�l Meeting
several weeks ago, the Council is considering recommendations from the
Community Development Commiss�on for community development block grant
pro�ects for 1982. He stated the Commiss�on recommended that $80,000
be used for housing reirofit and weather�zation program and $121,322
6e used for Moore Lake land acqutsition. He stated a letter of support
for both of these programs was recetved from the Anoka County Community
Action Program, Inc.
Mr. Boardman stated he has had dtscuss�ons with members of St. Phillip's
Church and they are in the process of putting together a package for
� elderly and handicapped housing in the Moore Lake area and will apply
for 202 funding through H.�.�.
Councilman Schneider asked if the proposal for Moore Lake land acquisition
would be strictly for elderly hou=.ing. Mr. Boardman stated the proposal
is strictly for elderly, but if that fa11s through, they may have to come
up w7th another package.
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COUNCIL MEETING OF FEBRUARY 1, 1982 PAGE 7
Councilrr�an Schneider asked if there was any way to insure that these
funds for Ploore Lake land acqutsition would be used only to acquire
land for an elderly development and not for any other type of housing,
except elderly and handicapped. P1r. Doardman stated, once the land is
acquired, it wouldn't have to be sold for anything other than an elderly
hous�ng pro�ect.
Mr. Qureshi, City Manager, stated the Counctl has been given a number
of options to constder for the use of community development block grant
funds. He stated the Commission's recommendation was to use these funds 1
for the housing retrofit and weatherization program and the Moore Lake
land acqu�s�t�on, but the Counc�l would make the final determination.
He stated staff felt there was an indication from the Council to promote
senior c�tizen housing, however, if this �s not the case, there are other
proposals to consider.
Councilman Schneider stated he was supportive of acquiring property in
that area for elderly and handicapped housing, however, if this falls
through, he is not sure the City should be sitting on $121,000 worth
of property.
Mr. Qureshi pointed out the $121,000 will not buy all the necessary
property for such a pro�ect, but certain steps have to be taken to
move rn that d�rection. He stated some additional funding will be
necessary to make the pro�ect feasible. He stated there is no ouarantee
that St. Phill�p's Church w�ll get the money to fund the pro�ect.
Mr. Qureshi asked Mr. Boardman if he kn�ew the chances of St. Phillip's
Church receiving 202 funding. He stated it seems only the pro�ects
that are now proposed would receive fund�ng, however, St. Phtllip's
feels it is a worthwhtle pro�ect and they w�sh to preceed.
It was the concensus of the Counc�l to go with the proposal to use
community development block grant funds for land acquisiton in the �
Moore Lake area for elderly housing, with the opt�on of re-evaluating
tt tf tt doesn't 7ook like the pro�ect would proceed.
MOTION by Councilman Schneider to concur with the recommendation of
the Commum ty Development Commission to use commu m ty development
block grant funds �n 1982 for the hous�ng retrofit and weatherization
program and Moore Lake land acquisition, w�th the understanding that
staff wi71 bring a report back in October or November on the elderly
hous�ng in the Moore Lake area, Seconded by Counc�lman F�tzpatrick.
Mr Quresh� stated he has been contacted by the City Manager in Blaine
in regard to supporting a Battered Women's Shelter to 6e located in
Blaine. He asked if the Council would consider the use of some of
the Community Development Block Grant Funds for this purpose.
MOTION by Councilman Fitzpatr�ck to amend the above mot�on and direct
the adm�nistration to amend the application for these funds, if tt
can be admin�stratively done, to provide 510,000 in support of a
Battered Women's Shelter in Blaine. Seconded by Councilman Hamernik.
Upon a voice vote, all voting aye, Mayor fdee declared the motton
carried unanimously.
UPON A VOICE VOTE OfJ THE MAIN MOTION, all voted aye, and Playor Nee
declared the motion carried unanimously.
4 CONSIDERATION OF APPOINTMENTS TO COPIMISSIONS (TABLED 1/a/82): �
°LAfJNING COMMISSION (CHAIRPERSON):
Councilman Schneider nom�nated Virgin�a Schnabel, 1527 Wtndemere
Circle East, for appointment to this Comm�ssion.
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COUNCIL MEETING OF FEBRUARY 1, 1982
PAGE 8
Counctlman Barnette nominated Richard Harr�s for reappointment to this
Commission.
There being no further nonnnations, a roll call vote was taken as
follows: Councilman Schneider, Mayor Nee and Councilman Fitzpatrick
voted in favor of Virginia Schnabel and Councilman Barnette and Council-
man Hamernik voted in favor of Richard Narr�s. Mayor Nee declared
Virg�nia Schnabel appointed to the Planning Commission by a 3 to 2 votP.
COh1h1l1fJITY DEVELOPMENT COMMISSION�
Councilman Hamernik nominated Kenneth Uos for reappointment to this
Commiss�on.
MOTIOfd by Councilman Schnetder to close the nominations and cast a
white ballot for Kenneth Vos for reapporntment to the Community
�evelopment Commission. Seconded by Counc�lman Barnette. Upon a
voice vote, all vottng aye, Mayor Nee declared the motion carried
unanimously.
'ARKS AN� RECREATION COMMISSION:
Councilman Fitzpatrick nominated Dav�d Kondrick for reappointment to
this Commission.
P40TION by Councilman Barnette to close the nom�nations and cast a
white ballot far the reappointment of David Kondrick to the Parks
and Recreation Comm�ssion. Seconded by Councilman Fitzpatrick.
Upon a voice vote, all voting aye, Mayor Nee declared the motion
carried unanimously.
Councilntan Hamernik nomtnated Mary Schreiner, 6851 Oakly St., for
appointment to the Parks and Recreation Commission
Councilman Schneider nominated Caro7 Fassett for appointment to the
Parks and Recreation Commission.
There being no further nominations, a roll call vote was taken, as
follo�vs: Councilman Barnette, Mayor Nee, Counc�lman Hamernik and
Councilman Fitzpatrick voted in favor of Mary Schreiner. Counc�lman
Schneider voted in favor of Carol Fassett. D1ayor Nee declared P4ary
Schreiner aF;pointed to the Parks and Recreation Commission 6y a 4 to
1 vote.
APPEALS COP1h1ISSI0N:
Councilman Fitzpatrick nominated Patricia Gabel for reappointrnent to
the Appeals Commtssion.
P90TIOIJ by Councilman Schne�der to close the nominations and cast a white
ballot for Patricia Gabel for reappointment to the Appeals Commission.
Seconded by Counci]man Fitzpatrick. I;pon a voice vote, all voting aye,
Mayor Nee declared the motion carried unanimously.
Councilman Fitzpatr�ck nominated Alex Barna for reappo�ntment to the
Appeals Commission.
Councilman Hamernik nominated �an Erlandson for appointment to the
Appeals Commission.
There being no further nominations, a roll call vote was taken, as
follows: Councilman Fitzpatrick, Mayor Nee, Councilman Schneider
and Councilman Barnette voted in favor of Alex Barna for reappointment
to the Appeals Commission and Councilman Hamernik voted �n favor of
Dan Erlandson for appointment to the Appeals Commission. Mayor Nee
declared Alex Barna appointed to the Appeals Commission 6y a 4 to 1 vote.
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COUNCIL MEETING OF FEBRUARY 1, 19E2 PAGE �
EPlVIRONMENTAL QUALITY COP1MISSION:
Councilman Schneider nominated Richard Svanda for reappointment to the
Environmental Quality Commission. Seconded by Councilman Barnette.
Upon a voice vote, all voting aye, Mayor Nee declared the motion carried
unanimously.
Councilman Fitzpatrick nomtnated Maynard fJ�elson for reappointment to
the Environmental Quality Comm�ssion.
MOTION by Councilman F�tzpatr�ck to close the nominations and cast a
white ballot for the reappointment of Maynard Nielson to the Environmen- �
tal Quality Commission. Seconded by Councilman Schne�der. Upon a voice
vote, all voting aye, Mayor Nee declared the motion carried unanimously.
HUMAN RESOURCES COMMISSION•
Councilman Fitzpatrick nom�nated Peter Treuenfels for reappointment to
the Human Resources Commission.
P107ION by Councilman Barnette to close the nominations and cast a white
ballot for the reappointment of Peter Treuenfels to the Huinan Resources
Commiss�on. Seconded by Councilman Fitzpatrtck. Upon a voice vote, all
voting aye, Piayor Nee declared the mot�on carried uram mously.
ENERGY CDMMISSION:
MOTION by Counc�lman Barnette to table che appointments to the Eneroy
Comm�ssion. Seconded by Councilman Schneider, Upon a voice vote, all
voting aye, Mayor Nee declared ±{ie mot�on carried unam mously.
CABLE TELEVISION COMMISSION:
Councilman Schneider nominated Barb Nughes, 54S Rice Creek Terrace, for
appointment to the Cable Telev�sion Commission.
1�90TION by Counc�lman Schneider to close the nominations and cast a white �
6allot for the appointment of Barb Hughes to the Cable Television Commis-
sion. Seconded by Counc�lman Barnette. L'pon a wice vote, all vot�ng aye,
Mayor Nee declared the motion carried unam mously. Councilman Schneider
nominated Ed Kaspszak for reappointment to the Cable Television Commiss�on.
MOTION by Councilman Schneider to close the nominations and cast a white
ballot for the reappointment of Ed Kaspsak to the Cable Television Commis-
sion. Seconded by Counc�lman 6arnette. Upon a voice vote, all voting aye,
Mayor Nee declared the motion carried unanimously.
HOUSING AND REDEUELOPP7EfJT AUTHORITY:
Mayor Plee stated he was not prepared at this time to make the appointment,
therefore, the matter was tabled.
COPJSIDERATIOfd OF RETURNING REPLAT OF INNSBRUCK NORTH IOWNHOUSES PLAT 5
e nc in� nn� rrnirnni i v i nrnTrn unnTU nr r cnn orridrrni idrer ❑m�noTnni
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Counc�lman Schne�der stated the Innsbruck Townhouse Association reviewed
the replat w�th their attorney and found �t would affect their titles.
He stated the attorney for the Townhouse Association recommended a
certification of correction could be f�led, rather than a replat. He �
stated the City Attorney saw no problems with this, but it would have
to go back to the Plamm �g Commiss�on.
MOTION by Councilman Schneider to refer this replat back to the Planning
Comm�ss�on for their cons�deration of certtftcates of correction, rather
than a replat. Seconded by Councilman Fitzpatrick. Upon a voice vote,
all voting aye, Mayor Nee declared the motion carr�ed unanimously.
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COUNGIL MEETING OF FEBRUARY 1, 1982 PAGC 10
Councilman Fitzpatrick stated, 7n view of the fact that there are going
to be changes at this rntersection that might affect any new s�gning,
and the fact the origina7 recommendation from the ,qppeals Commission was
for approval, the following act7on was taken
� MOTION by Cauncilman Ftizpatrick to grant the variance request to allow
a second pylon sign for one year for Red's Korner Pizza at 7441 East
Rtver Road, as requested by Werne R. Clayton Seconded by Councilman
Barnette. Upon a voice vote, all voting aye, Mayor Nee declared the
motion carr�ed unanimous]y.
� ORDINANCE N0. 744 AMENDING CHAPTER 11, SECTION 11 10 Oi= THE FRIDLEY CITY
nnnr nr� n�rrnir� rn rrro rnvvnnrrnv nnninnn�.r.i.iinnr .
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h10TI0N by Counctlman Schneider to waive the second reading of Ordinance
No. 744 and adopt it on the second reading and order publication.
Seconded by Councilman Fitzpatrick. Upon a vo�ce vote, all vottng
aye, Niayor Nee declared the motion carried unanimously.
NEW BUSINESS
SI�ERATION OF TWO CONDOMINIUM CONUERSION PERMITS - GORDOf�i ASPENSOf;
orrc rnrrv i.inv.
P�lr Flora, Publ�c Works Director, stated the City �°eceived two requests
for condominium conversions and the applicants were informed that they
were requ�red to pay a license fee for condom�n�um convers�on.
He stated the application for these conversions was made to the County
� on December 16, 1981 and the Ctty received not�fication on January 19,
1982. He stated the amount they were requested to pay was �750 for
converting these rentals to condom�ntums.
Councilman Hamernik pointed out much of the work for these conversions
was done prior to the Counc�l addressing the fee schedule and establish-
tng an ord�nance for licensing.
Mr. Aspenson, 17 Rice Creek Way, the owner and applicant, thanked the
Council for putting this item on the agenda. Ile stated when they
�iectded to convert their units to condominiums, his wife discussed
this��att�i� in June w�th the City staff. He stated she was told there
�vas noth�ng in the City ordtnances that would prohibit them from doing
ih�s so they contacted the eng�neers and contractors and went throual'i
with the conversions.
Mr. Aspenson stated they are now recorded at the County and he didn't
do the conversions with the intent of bypassing the City and was
tgnorant of the fact the City had any ordinance covering condomi m um
conversions.
Councilman Hamern�k stated, on the basis of the comments made and
discussions with staff, �t seems the ma,7ority of the work was done
before the C�ty had the ordinance, therefore, he moved the follow�ng
� N10TION by Councilman Hamerm k to grant the licenses for the two
condominium converstons by Mr. Aspenson at 6500, 6510, 6520 2nd Street
N.G. and 6489, 6491, 6�93, 6495 Riverview Terrace and reduce the fee
by 50% because of certain extenuattng circumstances. Seconded ty
Councilman Fitzpatrick. Upon a voice vote, all voting aye, Mayor Nee
declared the motion carried unanimously.
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COIiNCIL MEETING OF FEBRUARY l, 1982 PAGE 11
� CONSIDERNTION OF FIRST READING OF AN ORDINANCE REPEALING OLD CHAPTER 220
OF THE FRI�LEY CITY CODE IN ITS ENTIRETY AND ADOPTING A NEW CHAPTER 220
ENTITLED RESIDENTIAL MAIfJTENANCE CODE:
Councilman Schneider questioned the use of portable type fuel burning
heaters and stated some kerosene heaters have 6een approved. It was
felt th�s should be checked out with the Fire Ch�ef.
Mr. Flora, Publ�c Works Dtrector, stated they should also insert a
different def�n�tion in Sect�on 220.05 (2) clarify�ng "basement"
Counc�lman Hamernik questioned the defin�tion of "Cellars". He felt if
the cellars are completely underground, the defin�tion should be re-
written. Ne also requested staff to check into Section 220.064 (2b)
regarding provisions for climate control in regard to a power fatlure.
MOTION by Councilman Fitzpatrick to table this ordinance and 6r�ng it
back after corrections are made. Seconded by Councilman Hamernik.
Upon a voice vote, all voting aye, Mayor Nee declared the motion carried
unammously.
�� CONSI�ERATION OF FIRST READING OF AN OR�INANCE ESTABLISHIf1G CHAPTER 125
° OF THE FRIDLEV CITV CODE ENTITLED SAUNAS AND MASSAGE PARLORS; REGULATING
h1r. J�m Hill, Public Safety Director, stated an interest was expressed
6y some Council members to have an ordinance controlling saunas and
massage parlors in the C�ty.
He stated the Ctty, in the past, has not controlled this type of business,
somewhat by design, as they felt this type of bus�ness wouldn't go �nto
communit�es that wouldn't ltcense them, but find thts has now reversed
itself. He stated the City now f�nds itself without any control factors
where they have such 6us�nesses comtng into the C�ty, and the proposed
ordinance would control the operation of saunas and massage parlors �n
the Ctty.
htr. Hil7 stated similar ord�nances of surrounding cities were reviewed
and the ma�ority of the material in the ordinance proposed this evening
comes mostly from the Brooklyn Center ordinance, which they felt was
most comprehensive.
Mr. Hill then rev�ewed sections of the ordinance pertaining to the
allowance of only two sauna and massage parlor i�censes whtch may be
in force at any one time; the investigation fee; the investigation fee
for purposes of tssu�ng a certificate; identification of zone C2S as
the only zoning they would be permitted in, and the hours of operation.
P1r. Herr�ck, City Attorney, stated this ts not an easy area to control,
but thought the ordinance is as good as any he had seen and a tool to
deal w�th a d�ff�cu7t s�tuation.
Councilman Hamerm k questioned why the investigation fee of $1,500 was
put in this:particular place �n the ordinance rather than the fee
schedule.
Mr, H�11 stated in the other ordinances the investigat�on fee is listed
�n thts manner, but felt it really didn't matter where this was spelled
out.
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COUNCIL MEETING OF FEBRUARY l, 1982 PAGE 12
Mr. Herrick, City Attorney, pointed out the 7nvestigation fee would be
a one time fee as opposed to the license fee on an annual bas�s.
MOTIOh! by Councilman Fitzpatrick to waive the reading and approve the
ordinance upon first read�ng. Seconded by Councilman Hamerm k. Upon
a votce vote, all vottng �ye, Mayor Nee declared the ,rotlon carried
unanimously.
SIDERATION OF FIRST REA�ING OF AN ORDIPJANCE APIENDING CHAPTER 11
MOTION by Councilman Schneider to waive the reading and approve the
ordinance upon first reading, Seconded by Councilman Hamernik. Upon
a voice vote, all vot�ng aye, Playor fdee declared the motion carried
unanimously.
HI
IATES. INC. ON PHASE II OF
Mr. George 6oyer, Uice President of Hickok and Associates, Inc.,
appeared before the Council regardtng Phase II of the Moore Lake
Restoration Pro,7ect.
Mr. Boyer stated the orig�nal application for the restoration of
��400re Lake was in 1978 The first phase of the pro,7ect includes
everythmg undertaken and completed to date. He stated there is a
problem wrth internal and external phosphorus loadings and, as
part of the f�rst phase program, there was a study and testing to
eltnnnate internal phosporus loading.
Mr. Boyer stated a letter has been received from the Un�ted States
Environmental Protect�on AJency ind�cating that President Reagan
has allocated $9,000,600 for continuation of the Clean Lake Grant
Program. He explained this amount is for the entire nation and there
will be a lot of applications for the funds, 6ut the Moore Lake
pro�ect does meet the criteria in that it would be a continuation
of the grant program and it does deal with treatment or restoration
in-lake pro,7ects. He stated the Phase II at the pro,7ect deals
strictly with the lake itself where they are trying to el�minate
all phosphous that is being released in the East basin of Moore Lake.
Mr Boyer stated they are submitttng a document for the Po7lution
Control Agency to submit an application for funds from the Unrted
States Environmental Protect�on Agency. He presented an outline to
the Council ,on what is �nvolved in the Phase II restoration activ�ties
and stated this outline would also be subm�tted w�th the applicat�on
Mr, Boyer then explained that Phase II would also consist of Continua-
t�on of a ptlot study that was made this fall in trying to determine
the most effective way of e]iminating the phosphorus. Fle stated there
was a similar restorationpro,7ect recently completed in W�sconsin where
it was found that the onl`y successful way to reduce phosphorus released
into the lake was to remove the roots and weeds.
Mr. Boyer reviewed what steps would be taken in the restoration of the
East bastn of the lake, both in the sha7low and deep areas. He statetl
it is proposed this would be a two year program and upon complet�on,
they would monrtor it for two years.
� hir. Boyer stated after they completed Phase I, it reduced the phosphorus
loadrng by 21� and upon completion of Phase II, it is expected the
phosphorus load7ng will be reduces 75 to 84°6.
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COUfJICL MEETIfJG OF FEBRUARY 1, 1982
Mr. Boyer reviewed the cost esttmates for
which covered the areas of construct�on,
tive, and water and biological test�ng.
$556,800.
PACE 13
Phase II restoration activities
engineering, legal and admim stra-
The total cost summary amounted to
P1r. Doyer stated, as funding is right now and if the application is
approved under the Clean Lakes Grant Program, 50% would be paid by the
Env�ronmental Protection Agency and 50% paid by the City, as the State
hasn't allocated any funds towards these pro,7ects. He felt th�s pro,7ect
has a chance to be high on the priority list for the Environmental Protec-
tion Agency and w�ll be funded. hle further stated, mnthout Phase II,
they wouldn't see any noticeable results tn the improvement of the lake.
Mr. l�ureshi, City Manager, po�nted out the cost has almost doubled from
the orig�nal estimate which was around �250,000 and asked if this new
estimate was valid and for how many years.
Mr 6oyer stated if they received the grant monies, they would actually
begin Phase II th�s year. He did point out that Fridley could do some
of the work, such as inspections, and save in this area.
Mr. Qureshi, City P4anager, stated they are looking at more than one-half
mtllion for Phase II and by the time this is finished, the cost would be
over one million dollars. He stated he wanted the Counc�l fully aware
of what is involved.
Mr. 2oyer stated they can negotiate the engineering and inspection fees,
but cannot negotiate on the testing fees
f�1r. Qureshi stated the question the Council must answer is if they wish
to proceed and hawe staff work with Hickok and Associates to see what
work the C�ty can do and, if the grant is approved, where they would
come up with the mon�es the City must pay.
Mayor Nee directed Hickok and Associates to make appltcation for the
grant, and said even if they receive the grant, the question still comes
down to whether the City can afford it.
Counc�lman Schneider asked how they account for the overruns. P1r. Boyer
stated in 197£3 through 1980, constructions cost were up 25� in one year,
but they are now going the other way. He stated the point here is they
don't want to get into a bind where they have a certain number of dollars
and then have to start cutting, and felt the amounts su6mitted were maximum
amounts.
SENATOR DON FRANK
Senator Frank appeared before the Council to report on State issues and
matters before the Legtslature.
He stated he is on a committee looking tnto the problems of unemployment
compensation �n Minnesota. He stated they are short in that fund and
the Federal Government will now 6e charging interest on loans including
those for the unemployment compensation fund.
Senator Frank stated there would be a committee vote on paramutual betting,
and the question of a lottery will also be coming up in comnnttee.
Senator Frank stated there are several cable television bills and he has
1o66�ed in support of these bills in accordance wtth Mayor IJee's guidance.
Senator Frank reported the block grant funds the Federal government is
g�ving to small cities ts a total of �14,000,000.
Senator Frank stated he received the Council's resolution asking that
the C�ty not be d�vided �n the redistrict�ng plan. He stated, both the
Senate Plan and the House Plan, would leave Fridley one district.
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COUfdCIL MEETIfJG OF FEBRUARY 1, 1982
PAGE 14
Nlayor Nee asked if something could be done regarding condomium convers�ons.
He stated it bothers the Council that they have been den�ed control over
these conversions Senator Frank stated he is not aware whether the
Leg�slature has addressed or intends to address this issue. He suggested
the City Attorney contact him and perhaps get together a bill which he
may introduce.
RECESS:
hiayor Nee called a recess at 10:45 p. m.
RECONUENED:
Mayor Nee reconvened the meeting at 1D:55 p. m. All Council members were
present.
RECEIVING CHARTER COMMISSION MINUTES DF NOVEMBER 10. 19E1:
MOTIO�J by Councilman Barnette to receive the minutes of the Charter
Commission P9eettng of fdovember 10, 1981. Seconded by Councilman Hamernik.
Upon a voice vote, all voting aye, Mayor Nee declared the mot�on carried
unantmously.
IDERATION OF AMENDING THE ANOKA COUNTY �OINT LAW ENFORCEMENT COUNCIL
Mr. �im Hill, Public Safety Director, stated at a recent meeting of the
Anoka County Joint Law Enforcement Counci7, the City of Ramsey came �n
with a request that the elect�on to be held by this body be delayed until
such time as Ramsey, Lexington, and Circle Pines could be considered for
membership to the Anoka County Joint Law Enforcement Council
Mr H�11 stated the amendment before the Counc�i would add these three
cities to the Anoka County Jo�nt Law Enforcei�ient Counc�l so they can
participate in the sessions.
MOTION by Councnlman Schneider to authorize the Playor and City Manager
to enter tnto the revised agreement for the Anoka County Joint Law
Enforcement Council. Seconded by Councilman Namerm k. Upon a voice
vote, all voting aye, Mayor Nee declared the motion carried unanimously
RESOLUTION fJO. 11-1982 FDR INSTALLATION OF TRAFFIC SIGNAL WITH STREET
P1r. Flora, Public Works Director, stated the Highway Department has plans
for a signal at 81st and T. H. #47. He stated the state has cr�ter+a
they use regarding tr•�ffic and accidents which warrants a signal at th�s
intersection.
Councilman Hamernik stated he has a problem of ,7ust�fying the traff�c or
acctdents, as he didn't feel there was any heavy traffic in th�s area.
Nir. Flora stated the signal would be in accordance vn th Fridley's master
plan for that industrial area.
MOTION by Counci7man Hamern�k to adopt Resolution Plo. 11-1982. Seconded
� by Councilman Fitzpatrick. Upon a voice vote, all vot�ng aye, Mayor Nee
declared the motion carried unanimous7y.
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COUNCIL MEETING OF FEBRUARY 1, 1982
PAGE 15
COPJSI�ERATION OF A RESDLUTION APPROVING MULTIFAMILY MORTGAGE REVENUE
This item was handled earlier in the evening and tabled and referred
to the Hous�ng and Redevelopment Authority for recorrnnendation.
RESOLUTION N0. 12-1982 ORDERING PRELIMINARY PLANS, SPECIFICATIONS ANQ
ESTIMATES OF THE COSTS THEREOF STREET IMPROVEMEf1T PROJECT ST. 1982-1:
MOTION by Councilman Schneider to adopt Resolution No. 12-1982. Seconded
by Councilman Hamernik� Upon a voice vote, all voting aye, Mayor fJee
declared the n�otion carried unanimously.
� k�� RESOLUTION N0. 13-1982 RECEIUING THE PRELIMINARY REPORT, ORDERING
IP�PROVEMENT AN� FINAL PLANS AND SPECIFICATIONS AP1� ESTIMATES OF
COSTS THEREOF: STREET IMPROVEMENT PROJECT ST.,1982-1:
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P40TION by Counc�lman Schneider to adopt Resolution N0, 13-1982.
Seconded by Counci7man Barnette. Upon a voice vote, all voting
aye, Mayor �Jee declared the motion carried unanimously.
ON N0. 14-1982 OR�ERING IMPROVEMENT. APPROVAL DF PLANS AND
MOTIOfJ 6y Counc�lman Schneider to adopt Resolution No. 14-1982.
Seconded by Councilman Hamerm k. Upon a voice vote, all voting
aye, Mayor Nee declared the motion carried unanimously.
RESOLUTION N0. 1�-1982 OR�ERING IMPROVEMENT, APPROVAL OF PLANS AND
ORDERING kDVERTISEP4ENT FOR BIDS: STREET IMPROVEMEPlT PRO�ECT ST. 1982-2:
MOTIOfJ by Counc�lman Schneider to adopt Resolution No. 15-1982.
Seconded by Councilman Barnette. Upon a votce vote, all voting
aye, flayor Nee declared the motion carrted unanimously.
RESOLUTION N0. 16-1982 IPIPOSING LOAD LIMITS ON PUBLIC STREETS AN�
HIGHLJAYS IN THE CITY OF FRIDLEY, MINNESOTA:
MOTION by Councilman Fitzpatrick to adopt Resolutton No. 16-1982.
Seconded by Councilman Hamer m k. Upon a vo�ce vote, all voting
aye, Playor Nee declared the motion carried unanimously.
LI CEfJSES :
P10TIOPJ 6y Councilman Schneider to approve the licenses as submitted
and as on file in the L�cense Clerk's Office. Seconded by Councilman
Hamernik. Upon a voice vote, all voting aye, Playor Nee declared the
motion carried unanimously.
�'' �� CLAIhiS.
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MOTION by Councilman Barnette to author�ze payment of Claims Plo. 3624106
through 02f3L20. Seconded by Councilman Hamernik. Upon a voice vote,
all vot�ng aye, P1ayor Nee declared the motion carried unanimously.
AD�OURfdMEPdT.
MOTION by Councilman 6arnette to ad,7ourn the meeting. Seconded by
Councilman Schneider. Upon a voice vote, all voting aye, Mayor Nee
declared the motion carried unanimously and the Counc�l Meeting of
the Fr�dley City Council of February 1, 1982 ad,7ourned at 11:05 p. m.
Respectfully submitted,
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{`'t,�`' -�-l-d„2(�'L�'r � l
Carole Haddad
Secy. to the City Council
Approved: February 22, 19�2
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W�lli��r J. Nee
Mayor
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