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07/01/1991 - 00006102� ' , THE MINUTES OF THE REGULAR MEETING OF THE FRIDLEY CITY COUNCIL OE JULY 1. 1991 The Regular Meeting of the Fridley City Council was called to order at 7:38 p.m. by Mayor Nee. PLEDGE OF ALLEGIANCE: Mayor Nee led the Councilmembers and audience in the Pledge of Allegiance. ROLL CALL' MEMBERS PRESENT: MEMBERS ABSENT: APPROVAL OF MINUTES: Mayor Nee, Councilwoman Jorgenson, Councilman Billings, Councilman Schneider and Councilman Fitzpatrick None COUNCIL MEETING, JUNE 17, 1991: MoTION by Councilman Schneider to approve the minutes as presented. Seconded by Councilwoman Jorgenson. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. ADOPTION OF AGENDA: Mayor Nee requested that the following items be added to the agenda: (5.5) Consideration oP an Interim Ordinance Placing a Moratorium on the Issuance of Speaial Use Permits for Auto Body Repair Businesses and Prohibiting Their Location Within the City While the Moratorium is in Effect; and two claims pertaining to relocation expenses for the Iverson property. MOTION by Councilman Fitzpatrick to adopt the agenda with the above additions. Seconded by Councilman Schneider. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. OPEN FORUM. VISITORS: MR. BOB BENNEK, FIRE DEPARTMENT: Mr. Sennek stated that he wished to thank Chief McKusick and all members of Council and staff for their support of the Sister Cities program. He stated that the visitors from Fourmies, France toured several Fire Departments, the Anoka Communications Center, and attended luncheons with the Mayor and business community. Mr. Bennek stated that the members of the Fire Department gained a sense of pride that would not have been possible without Council's support. He stated that a common bond was shared with the visitors from Fourmies and new friendships were gained. He � extended a special thanks to Helene who served as escort for the visitors. Mayor Nee stated that he was tremendously proud of the Fire Department and how they represented the City. PUBLIC HEARING• 1. PUBLIC HEARING TO CONSIDER MODIFICATION TO THE CITY OF FRIDLEY'S REDEVELOPMENT PLAN AND CREATION OF TAX INCREMENT DISTRICT NO. 11• MOTION by Councilwoman Jorgenson to waive the reading of the public hearing notice and open the public hearing. Seconded by Councilman Schneider. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously and the public hearing opened at 7:43 p.m. Ms. Dacy, Community Development Director, stated that the purpose of this public hearing is to amend the City's redevelopment project area and to create tax increment District No. 11. She stated that the location of the proposed district is in the southwest and northwest corner of Osborne Road and University Avenue. She stated that the parcels are the former Cub Foods site and Bob's Produce. She stated that hoth property owners have been investigating � several redevelopment plans, and the owners of the Cub Foods site have filed an application for tax increment financing. Ms. Dacy stated that the proposal for the Cub Foods site is to redevelop the existing building into three tenant spaces. She stated that Pet Food Warehouse has filed a lease, and Stone Fabrics has indicated an interest in locating in this building. She stated that the owner of Bob's Produce is seeking private financing to construct two buildings. Ms. Dacy stated that this tax increment district would be for 25 years, and it meets the State's criteria for a redevelopment district as it would increase the taxable value of the property; remove substandard or blighted buildings; and provide additional employment opportunities. She stated that the former Cub Foods building would be updated to meet the codes, and the parking lot would be improved, as well as installation of lighting and landscaping. She stated that with Pet Foods Warehouse locating on this site thirty jobs would be available. Ms. Dacy stated that there are two potential forms of assistance for this tax increment district. She stated that the first option is a$15,000 grant and a$50,000 second mortgage. She stated that the other option is "pay as you go" where the $65,000 request for assistance is included in the Northeast State Bank first mortgage. � FRIDLEY CITY COUNCIL MEETING OF JULY 1. 1991 PAGE 3 � Ms. Dacy stated that while another tax increment district is being created, there are three other districts that will be decertified in the next three years. Mr. Mike Hurley, attorney representing the owners of the former Cub Foods site, stated that this property was purohased by Dr. Charles Smith fifteen or twenty years ago and that Cub Foods occupied the building on a long term lease. He stated that Dr. Smith transferred his interest in this property to his three children and their spouses. He stated that because the three owners are located out of state they are not able to work with this project, and he is representing them. Mr. Hurley stated that the owners have attempted to sell the property for the past several years, but developers were not able to obtain financing. He stated that the building is vacant and an eyesore to the City. He stated that $5,400 a year is paid in taxes with no income. Mr. Hurley stated that Pet Foods Warehouse has signed a five year lease, and they are negotiating with another tenant, Stone Fabrics, to occupy the building. He stated that they do not have a pro�lem finding tenants, but are not able to sell the property. He stated that the owners wished to improve the building, parking area, and � install some berming and landscaping. He stated that some improvements to the building would include roof replacement and the removal of asbestos-backed floor tiles. He stated that construction costs for the entire project would be about $476,958. Mr. Hurley stated that Northeast State Bank would provide $200,000 in financing secured by a$50,000 certificate of deposit, and the balance of the financing would come from the fee owners. He stated that Dr. Smith felt an obligation to his children and has withdrawn his retirement income to assist with this project. He stated that this covers about $400,000 of the project costs, and they are requesting $65,000 in tax increment financing to help with the remainder of the costs. He stated that the $65,000 is not readily available to the fee owners unless they place a second mortgage on their homes. Mr. Hurley stated that City staff has been extremely helpful in suggesting alternatives and options. He felt that the "pay as you go" option is an attractive alternative for the fee owners o£ the property. He stated that they are under an extremely rigid time frame as Stone Fabrics will not sign a lease unless occupancy is guaranteed by August 15. He stated that he has a guarantee from the construction contractor that the construction time period would be thirty days. Mr. Hurley stated that he realizes Council's position in the past has been not to act on an item the same ' evening as the public hearing is held. He requested that they consider waiving this condition and take action on the tax increment district this evening. FRIDLEY CITY COUNCIL MEETING OF JULY 1. 1991 PAGE 4 � Councilman Schneider asked how much of the square footage of the building would be leased to Pet Foods Warehouse and what would happen if the major tenant experienaed financial difficulties. Mr. Hurley stated that over half the building would be leased to Pet Foods Warehouse. He stated that because there is no debt on the building, except for some special assessments, he believed the debt service could be met as they have not had a problem locating tenants and, with the improvements, this only increases their potential for leasing the buildinq. Mr. Casserly, o£ Casserly, Molzahn & Associates, Inc., stated that the "pay as you go" method has no risk; however, if assistance is provided by a small grant and a$50,DOD loan there is a small risk. He stated that either form o£ assistance is probably good. He stated that the estimated tax capacity of $9,200 is based on an additional estimated captured market value of $200,000. He stated that this is just for the Cub Foods site. He stated that any increase in value on the parcels to the north really depends on what is proposed for the parcel. He stated that the reason the parcels were included was because over the last several years requests have been received to completely redevelop that site. Mr. Casserly stated that it made sense to include the parcels because they meet the qualifications of a redevelopment district � and costs would be lower to include them at this time. He stated that there is no commitment by the HRA or Council to do anything with those parcels to tha north. Mayor Nee stated that either alternative would pay off in the same period of time, being seven years. Councilman Sillings stated that even though Council may act to create this district, if the HRA did not like the plan they would not be required to proceed with the development agreement. Mr. Larry Crane, representing Northeast State Bank, stated that the bank currently has $2�0,0�� committed to this project, and he has agreed to take the request for an additional $65,000 bank to the committee. Mr. Richard Harris, 6200 Riverview Terrace, asked what peraentage of industrial and commercial property in Fridley is in tax increment financing districts. Ms. Dacy stated that she believed it was about six or seven percent. Mr. Harris asked if the district is for 25 years if there would be a payo££ in seven years. ' Mr. Casserly stated that the 1990 amendments to the Tax Increment Act impose a slight penalty on cities that are now using tax FRIDLEY CITY COUNCIL �EETING OF JULY l. 1991 PAGE 5 � increment that create districts after May 1, 1990. He stated that the penalty is based on the type of district established, and the district that has the least penalty is a redevelopment district. He stated that by committing to seven years, it makes the penalty the least amount and accomplishes what needs to be done. Mr. Harris stated that he feels this proposal is feasible and is probably not "pie in the sky" like some of the other proposals that have come before Council over the last £ifteen years. He stated that he has a problem, however, with creating too many tax increment financing districts. He stated that he understands the taxes will be frozen on these parcels at the present value and, consequently, the taxing districts such as the schools and County will not be getting the benefit of the increase in taxes. He stated that when additional funding is needed it comes back to the parcels that are not in the increment districts and they have to carry this load. Mayor Nee stated that he felt Council was in agreement; however, the Cub Foods site has been there for ten years and is not generating additional taxes because it is deteriorating. Mr. Harris felt that, in this particular case, there should be some assistance with tax increment financing. He stated that, however, � some of the other districts should not have been created, and he cited the Lake Pointe site as an example. He felt that some guidelines should be established regarding creation of tax increment financing districts. Ms. Dacy stated that both parcels proposed for this tax increment financing district have been devaluing over the last several years. She stated that by creating this district it would maintain the same amount of tax dollars to the schools and County. She stated that the HRA has a policy of turning baok school district monies collected from the referendums during the tax increment years. She stated that the HRA has also instituted a fee for staff's review of proposed tax increment districts and a series of policies are being evaluated. Councilwoman Jorgenson questioned the potential loss of local government aids. Mr. Casserly stated that the actual amount ior the Cub Foods site with a seven year program would be about $1,2D0. Mr. Burns stated that the total amount, if the district ran for 25 years, would be $257,995. Mr. Casserly stated that the agreements are designed is to make � sure the project does not proceed unless there is compensation for the loss of local government aids. He stated that as a practical point, the City would be breaking even or doing slightly better. FRIDLEY CITY COUNCZL MEETING OF JULY 1. 1991 PAGE 6 � He stated that if redevelopment occurs on the parcels to the north the City does not lose anything. Councilwoman Jorgenson asked if the district was decertified in seven years if there would be a penalty in the loss of local government aid to the City. Mr. Casserly stated that about $1,200 or $1,300 could be lost but it would be recovered from the administrative expenses of the district. Councilwoman Jorgenson stated that it would be in the best interests of the City to remove this tax increment district as quickly as possible. Mr. Casserly stated that in terms of dealing with local government aid, that is true. Councilwoman Jorgenson asked if this project would qualify for industrial development revenue bonds. Mr. Casserly stated that it would not qualify, as industrial development revenue bonds are limited to manufacturing. � MOTION by Councilman Billings to close the public hearing. Seconded by Councilman 5chneider. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously and the public hearing closed at 8:35 p.m. OLD BUSINESS: 2. SECOND READING OF ORDINANCE NO. 973 UNDER SECTION 12.07 OF THE CITY CHARTER TO VACATE STREETS AND ALLEYS AND TO AMEND APPENDIX C OF THE CITY CODE: MOTION by Councilman Fitzpatrick to waive the reading and adopt Ordinance No. 973 on the second reading and order publication. Seconded by Councilman Schneider. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. 3. VARIANCE REQUEST, VAR #91-12. BY ROBERT AMBORN TO REDUCE THE REQUIRED FRONT YARD SETBACK FROM 35 FEET TO 14 FEET AND TO INCREASE THE MAXIMUM SQUARE FOOTAGE OF AN ACCESSORY BUILDING FROM 1,000 SOUARE FEET TO 1.270 59UARE FEET, ON LOT 2, BLOCK 4, CITY VIEW ADDITION, GENERALLY LOCATED AT 4a5 57TH PLACE N.E. (TABLED 6�17/91� Mayor Nee removed this item from the table. � Ms. Dacy, Community Development Director, stated that this is a request for two variances, one to reduce the front yard setback from 35 to 14 feet and the other to increase the maximum square FRIDLEY CITY COUNCIL MEETING OF JULY 1. 1991 PAGE 7 � footage of an accessory building from 1,�00 to 1,270 square feet. She stated that the issue discussed at the last meeting was the height of the garage. She stated that she has spoken with the petitioner and, based on the calculations, the garage will meet the building height as defined in the Zoning code. Ms. Dacy stated that the Appeals Commission recommended denial of the variances, and staff recommends two stipulations if Council chooses to grant the variances. Mr. Amborn, the petitioner, felt that this option was the best solution and that the appearance would be good for the neighborhood. Councilman Billings asked Mr. Amborn if he discussed the garage height requirements with City staff. Mr. Amborn stated that he has discussed these requirements and is comfortable with them. MOTION by Councilman Billings to grant Variance Request, VAR #91-12, with the following stipulations: (1) the petitioner shall provide a hard surface driveway to the proposed addition by September 1, 1942; and (2) the petitioner shall sign and record ' against the property an agreement with the City which will allow him access to the property in perpetuity and which releases the City from liability or incurring any casts should the improvements be disturbed due to maintenance of utilities within the riqht- of-way. Seconded by Councilman Fitzpatrick. Upon a voice vote, Councilman Billings, Councilman Fitzpatrick, Councilman Schneider and Mayor Nee voted in favor of the motion. Councilwoman Jorgenson voted against the motion. Mayor Nee declared the motion carried by a 4 to 1 vote. 4. SPECIAL USE PERMIT. SP #89-12, BY ASHLAND OIL COMPANY (RAPID OIL1 TO ALLOW A MOTOR VEHICLE FUEL AND OIL DISPENSING SERVICE ON LOTS 1 THROUGH 4, BLOCK 6, CITY VIEW ADDITION, GENERALLY LOCATED AT 5701 UNIVERSITY AVENUE N.E.: Ms. Dacy, Community Development Director, stated that the purpose of this special use permit is to allow construction o£ a new Rapid Oil facility at University and 57th Avenues. She stated that this issue has been held over since 1989 and, at that time, the City requested additional information regarding the soil contamination on the property. Ms. Dacy stated that Ashland Oil has prepared a remediation plan which was approved by the Pollution Control Agency. She stated that since 1984 there are a number of issues that have risen. She � stated that the City passed a new landscapinq ordinance, and it is progosed that a stipulation be added to require the developer to submit a landscaping plan in conformance with the ordinance. She FRZDLEY CITY COUNCIL MEETIN6 OF JULY 1. 1991 PAGE 8 � stated that the petitioner has received preliminary approval from the Pollution Control Agency; however, the City would like a site plan as to where those activities would occur on the property prior to the issuance of a building permit. Ms. Dacy stated that the City has been considering how this parcel would fit in with the overall redevelopment of this corner. She stated that the plan under consideration is vacating a portion of the frontage road, realigninq it to a more north/south fashion and then to 57-1/2 Avenue and proceeding north. She stated that Mr. Lemley from Ashland Oil was asked if a portion of the frontage road was vacated if they could use one access from 57th Avenue. She stated Mr. Lemley felt that this would be satisfactory if there was an adequate turning radius. Ms. Dacy stated that at the last HRA meeting there was discussion as to whether the HRA would acquire this site, but a motion was made not to proceed with condemnation action on this property. Ms. Dacy stated that staff reoommends approval of this special use permit with one added stipulation, making a total of five, and revising stipulation No. 4. She stated that if the special use permit is approved it would be subject to the rezoning which would include Lot 4 of this particular block. � Mr. Jerry Brill, attorney for Ashland Oil, stated that he felt the additional stipulations were agreeable to Ashland oil. He stated also that the special use permit should apply for Lots 1 through 4, rather than Lots 1 through 3. MOTION by Councilman Billings to grant Special Use Permit, SP #$9-12, with the following stipulations: (i) a grading and drainage plan shall be submitted and approved by the Engineering staff prior to issuance of a building permit; (2) the petitioner shall combine Lots 1, 2, and 3 with Lot 4 into one tax parcel; (3) approval of the special use permit shall be contingent upon approval of the rezoning application of Lot 4(ZOA #89-04); (4) the petitioner shall submit a site plan indicating the location of the remediation equipment prior to the issuance of the building permit; and (5) a landscaping plan in comformance with the landscaping ordinance shall be submitted and approved by the Planning staff prior to issuance of the building permit. Seconded by Councilman Fitzpatrick. Councilman Billings clarified that this application for the special use permit covered Lots 1 through 4, rather than Lots 1 through 3. Ms. Dacy stated that was correct. UPON A VOICE VOTE TAKEN ON THE ABOVE MOTION, all voted aye, and � Mayor Nee declared the motion carried unanimously. FRIDLEY CITY COUNCIL MSETING OF JULY 1. 1991 PAGE 9 � 5. RECONSIDER THE REISSUANCE OF A SPECTAL USER PERMIT, SP #89-08, BY SAMIR I�WAIJANE TO ALLOW A REPAIR GARAGE AT 7570 HIGHWAY 65 N.E. �TABLED 6117/91): MOTION by Councilman Schneider to remove the question of Special Use Permit, SP #89-08 from the table. Seconded by Councilwoman Jorgenson. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. Councilman Schneider asked that a communication from the City of Minneapolis, Public Safety and Regulatory Services Committee be received. MOTION by Councilman Sohneider to receive this communication from the City of Minneapolis, Public Safety and Regulatory Services Committee. Seconded by Councilwoman Jorgenson. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. Mr. Herrick, City Attorney, stated that he was asked £or an opinion regarding the reconsideration of this special use permit. He stated that one of the alternatives would be to adopt a moratorium on issuing special use permits for auto body repair garage, and the moratorium would be for the purpose of having City staff prepare a licensing ordinance for this activity. � Mr. Herrick stated that an interim ordinance for the moratorium has been prepared, and it is recommended Council proceed in that manner. Mr. Mike Thompson, 10501 Fillmore Street N.E., Blaine, stated that Mr. Awaijane bought into a partnership several months ago with the idea he could obtain a special use permit. He asked if Council was going to issue the permit. Mayor Nee stated that the recommendation of the City Attorney is to table the permit and adopt an interim ordinance for any permits in this field. Mr. Thompson stated that Mr. Awaijane was notified that he was going to obtain the permit and it was approved. Mayor Nee stated that the special use permit was granted, but at the next regular Council meetinq one of the members that voted on the prevailing side moved for reconsideration which passed. He stated that, at that point, the question was still before the Council on whether or not to issue the special use permit and the item was tabled. Mr. Glenn Nelson, 8200 Tyler Street, Spring Lake Park, stated that � on June 3, 1991, City Council officially approved the request to reissue a special use permit. He stated that also attached to this document is a letter from Mr. Awaijane introducing himself and his FRIDLEY CITY C�UNCIL MEETING OF JULY 1, 1991 PAGE 10 � wife to Council, and talking about his business in Minneapolis. He stated that this clearly indicates who he is and his type of business. He stated that in other cities when a document like this is passed it is legally binding. Mayor Nee stated that there are rules for procedures of this Council that at the next reqular meeting any member that voted on the prevailing side of an issue can move for reconsideration. He stated that the decision is not actually binding until the next regular meeting has adjourned. He stated that the motion for reconsideration is consistent with the rules. Mr. Nelson stated that he did not buy this and felt that if Council had an escape clause for everything they do, then it would have been legally correct for them to have informed his brother-in-law before he left the meeting. He stated that sinae they chose not to inform him he has entered into contracts based on Council's action. Mayor Nee stated that if it can be demonstrated that there have been damages, the City may be obliged for those damages. He stated that this procedure is the same procedure used by every city council and did not feel it was unique in Fridley. ' Mr. Thompson asked if it would be possible to obtain the special use permit, Mayor Nee stated that after an ordinance is adopted covering the licensing of auto repair businesses, the question of the special use permit will be considered. Mr. Thompson asked how long it would be before the adoption of such an ordinance. Mayor Nee stated that the interim ordinance is in effect for 180 days. Mr. Herrick stated that he did not believe it would take that long but it more likely will be considered in about ninety days. Mr. Thompson stated that since Mr. Awaijane received this approval he has made commitments, and the tenant in the back has left. He stated that they are in serious jeopardy in the next six months. He asked why the permit was not issued. Mr. Herrick stated the concern of Council is that there is not adequate control over the operation of these types of businesses �hrough the special use permit process, and the Council felt, based somewhat on his advice, a business license for this type of � operation would give the City additional control over the operation of these businesses, He stated that is the reason he made this recommendation. FRIDLEY CITY COUNCIL MEETING OF JULY 1, 1991 PAGE il � Mr. Nelson stated that he felt the document received was a binding agreement between Mr. Awaijane and the City, and to hold up approval with absolutely no reason is questionable at best. MoTION by Councilman Schneider to table consideration of the reissuance of Special Use Permit, SP #$9-08, until after a final business licensing ordinance is passed. Seconded by Councilwoman Jorgenson. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. NEW BUSINESS: 5.5 FIRST READING OF AN INTERIM ORDINANCE PLACING A MORATORIUM ON THE ISSUANCE OF SPECIAL USE PERMITS FOR AUTO BODY REPAIR BUSINESSES AND PROHIBITING THEIR LOCATION WITHIN THE CITY WHILE THE MORATORIUM IS IN EFFECT: MoTION by Councilman Schneider to waive the reading and approve the ordinance upon first reading. Seconded by Councilwoman Jorgenson. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. 6. RESOLUTION NO. 51-1991 MODIFYING THE REDEVELOPMENT PLAN FOR REDEVELOPMENT PROJECT NO. 1 AND MODIFYING THE TAX INCREMENT ' FINANCING PLANS FOR TAX INCREMENT FINANCING DISTRICTS NO. 1 THROUGH NO. 10 TO REFLECT INCREASED PROJECT COSTS AND INCREASED GEOGRAPHIC AREA WITHIN REDEVELOPMENT PROJECT N0. 1: AND ESTABLISHING PROPOSED TAX INCREMENT FINANCING DISTRICT NO. 11 AND APPROVING AND ADOPTING THE PROPOSED TAX INCREMENT FINANCING PLAN RELATING THERETO: MOTION by Councilman Billings to adopt Resolution No. 51-1991. Seconded by Councilman Fitzpatrick. Councilman Schneider stated that he shares the same concern expressed by Mr. Harris regarding property being placed into tax increment financing districts. He stated that he would, generally, take a stand against additional tax increment financing districts, but he felt in this case it makes sense to create this district. Mayor Nee stated that he felt these properties would not progress without some form of City involvement. Mr. Harris, 6200 Riverview Terrace, questioned if these districts were being expanded and if there were increased project costs on tax increment financing districts 1 through 10. Ms. Dacy, Community Development Director, explained that there is one redevelopment project area that consists of non-contiguous � areas and certain tax increment financing districts within the redevelopment area. She stated that there are no increased project costs on districts 1 through 10. � � � FRIDLEY CITY COUNCIL MEETING OF JULY 1. 1991 PAGE 12 Mr. Harris asked if this has anything to do with the Northco plat. Councilman Billings stated that it does not other than the fact that Northco is one of the tax increment finanainq districts. Councilwoman Jorgenson stated that she felt it would be best, in the £uture, if they do not adopt a resolution the same evening the public hearing is held. She felt that if there was a time lapse of one meeting before action is taken by the Council it gives them time to digest the information from the public hearing and receive any other input from those who did not attend the public hearing. UPON A ROLL CALL VOTE TAKEN ON THE ABQVE MOTIQN, all voted aye, and Mayor Nee declared the motion carried unanimously. Councilman Billings stated that he wished Council to consider the following resolution: RESOLUTION NO. 52-1991 RECOMMENDING CERTAIN CHANGES IN TAX INCREMENT FINANCING DISTRICT NO. 11 UNDER CERTAIN CONDITIONS: He stated that this resolution encourages the HRA that if no development aqreement is in place on the three parcels north of Osborne Road prior to July 1, 1996, to delete these parcels from the tax increment financing district. MOTION by Councilman Billinqs to adopt Resolution No. 52-1991. Seconded by Councilwoman Jorgenson. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. MOTION by Councilman Billings to request City staff to prepare a resolution for the next meeting encouraging the HRA to release those tax increment financing districts that do not have a negative impact on the stability of the HRA. Seconded by Councilwoman Jorgenson. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. MOTION by Councilman Billings to request the City Manager communicate to the HRA the Council's position that they strongly £avor the "pay as you go" financing and, if this financing is not available, encourage them to review very carefully Option No. 1. Seconded by Councilman Schneider. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. 7. RESOLUTION NO. 53-1991 IN SUPPORT OF A MINNESOTA LAWFUL GAMBLING APPLICATION FOR EXEMPTION FROM LAWFUL GAMBLING LICENSE TO TOTINO-GRACE HIGH SCHOOL: MOTION by Councilman Schneider to adopt Resolution No, 53-1991. Seconded by Councilwoman Jorgenson. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. FRIDLEY CITY COUNCIL MEETING OF JIILY 1 1991 PAGE 13 � 8. FIRST READING OF AN ORDINANCE TO AMEND THE CITY CODE OF THE CITY OF FRIDLEY. MINNESOTA. BY MAKING A CHANGE IN ZONING DISTRICTS• MOTION by Councilman Billings to waive the reading and approve the ordinance upon first reading, with the following stipulations: (1) compliance with the stipulations of the special use permit request, SP #89-12; and (2) approval of special use permit request, SP #89-12. Seconded by Counoilwoman Sorgenson. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. 9. RECEIVE THE MI UT S O THE PLANNING COMMISSION MEETING OF JUNE 19. 1991• A. ESTABLISH PUBLIC HEARING FOR JULY 22. 1991, FOR A VACATION REOUEST. SAV #91-01. BY EUGENE AND JEAN HAGBERG, TO VACATE THE 12 FOOT ALLEY IN BLOCK 23, HYDE PARK, FOR A DISTANCE OF APPROXIMATELY 243 FEET SOUTH OF THE SOUTH LINE OF 59TH AVENUE. GENERALLY LOCATED NORTH OF 58TH AVENUE, SOUTH OF 59TH AVENUE, EAST OF 2ND STREET, AND WEST OF 2-1/2 STREET: MOTION by Councilman Fitzpatrick to set the public hearing on this vacation request, SAV #91-01, for Suly 22, 1991. Seconded by Counoilman Schneider. Upon a voice vote, all voting aye, Mayor Nee � declared the motion carried unanimously. B. SPECIAL USE PERMIT. SP #91-�7, SY BIZAL. INC., TO INCREASE THE MAXIMUM LAT COVERAGE FROM 40 PERCENT TO 42.5 PERCENT ON LOT 1, BLOCK 3. EAST RANCH ESTATES SECOND ADDITION, GENERALLY LOCATED AT 7880 RANCHERS ROAD N.E.: Ms. Dacy, Community Development Director, stated that this is a request for a special use permit to increase the lot coverage from 90 percent to 92.5 percent £or property at 7880 Ranchers Road N.E. She stated that the petitioner, Bizal, Inc., is proposing to add a warehouse addition. She stated that there is also a variance request to reduce the rear yard setback from 25 feet to 8 feet. Ms. Dacy stated that when the Planning Commission discussed this issue,they were concerned that the code requirements could be met and the special use permit and variance would not be necessary if the north fifty feet of the adjacent vacant lot would be under the ownership of Bizal, Inc. She stated that a member oP the Bizal family owns the vacant lot to the south. Ms. Dacy stated the petitioner, Mr. Bizal, stated that they needed to beqin construction this summer and could not proceed through the lot split procedure quickly. She stated that in a communication from Mr. Swenson, attorney for Bizal, Inc „ they indicated that � title to Lot 2 has been in Ruth Bizal's ownership for estate planning purposes and it would be detrimental to such purposes to put title to Lot 2 in the corporation. She stated that a � � 1 FRIDLEY CITY COUNCIL MEETING OF JULY 1, 1991 PAGE 14 compromise is proposed that Ruth Bizal would lease all of Lot 2 to Bizal, Inc. and would record the lease at Anoka County. She stated that when Lot 2 is subdivided, the appropriate amount of property would be retained to meet the setback and other requirements. Ms. Dacy stated that the Planning Commission recommended denial of this request as they felt there was another alternative using the adjacent vacant property. Councilman Billings stated that he looked at this property, and there are several pieces of equipment on the site, such as an unlicensed pickup, a pickup bed, a fish house, semi-trailer rig, pieces of inetal, and old hot water heaters. He felt that this property should be cleaned up. Mr. Bizal stated that the semi-trailer is the only item that belongs to the corporation. He stated that the pickup and fish housa belong to an employee, and the hot water heaters were dumped on the property by persons unknown. He stated that their company has had a lot of vandalism and that is the reason they wish to add the warehouse addition. Mayor Nee asked how Mr. Bizal is going to comply with the setback requirement. Mr. Swenson, attorney for Bizal, Inc., stated that in order to meet the needs of the City, as well as not to have an adverse capital gains impact on the owner, a long-term lease will be provided which is equivalent to a deed. Mr. Herrick, City Attorney, stated that if Council wishes to approve this request, he would like the opportunity to review the lease to make certain that it could not be terminated or the lot assigned to someone else without the approval of the City. MOTION by Councilman Billings to grant Special Use Permit, SP #91-07, with the following stipulations: (i) the petitioner shall provide a grading and drainage plan showing where storm water detention and retention shall occur; said plan shall be approved by staff prior to the issuance of the building permit; (2) variance request, VAR #91-14, shall be approved; (3) the applicant shall remove from the property all outside storage, with the exception of the semi-trailer truck, prior to the issuance of the building permit; (4) the petitioner shall enter into a lease agreement with the owner of Lot 2 and enter into an agreement with the City and owner of Lot 2, the form and content to be approved by the City Attorney. Further, the Mayor and City Manager are authorized to sign the agreement on behalf of the City. Seconded by Councilwoman Jorgenson. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. FRIDLEY CITY COUNCIL MEETING OF JULY 1 1941 PAGE 15 � C. CONSIDERATION OF ANOKA COUNTY REGIONAL RAIL AUTHORITY'S FNVIRONMENTAL IMPACT STATEMENT FOR LIGHT RAIL TRANSIT: Ms. Dacy, Community Development Director, stated that she would like Council to aonsider a recommendation on the Draft Environmental Impact Statement for the Light Rail Transit so it can be forwarded to the Anoka County Regional Rail Authority. She stated that the Environmental Quality and Energy Commission and Planning Commission has reviewed this draft and recommended a specific list of comments and five major issues which they felt should be relayed to the Anoka County Regional Rail Authority. Ms. Dacy then summarized the five major issues. MOTION by Councilman Schneider to concur with the Environmental Quality and Energy Commission and Planning Commission's recommendation and forward these five major issues to the Anoka County Regional Rail Authority. Seconded by Councilman Billinqs. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. MOTION by Councilman Billings to concur with the Comments on LRT EIS dated July 1, 1991 and forward them to the Anoka County Regional Rail Authority. Seconded by Councilman Schneider. ' Councilwoman Jorgenson felt that the information reqarding Light Rail Transit from the citizens' survey should be included with these comments. MOTION by Councilwoman Jorgenson to amend the above motion to include in the comments, as Item 8, the results from the citizens� survey pertaining to the Light Rail Transit issue. Seconded by Councilman Schneider. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. UPON A VOICE VOTE TAKEN ON THE MAIN MOTION, all voted aye, and Mayor Nee declared the motion carried unanimously. MOTION by Councilman Fitzpatrick to receive the minutes of the Planning Commission meeting of June 19, 1991. Seconded by Councilman Schneider. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. 10. RECEIVE AN ITEM FROM THE APPEALS COMMISSION MEETING OF MAY 28, 1991: A. VARIANCE REOUEST. VAR #91-14. BY BIZAL. INC.. TO REUUCE THE REAR YARD SETBACK FROM 25 FEET TO 8 FEET, TO ALLOW THE CONSTRUCTION OF AN ADDITION ON LOT 1, BLOCK 3, EAST RANCH ESTATES 2ND ADDITION, THE SAME BEING 7880 RANCHERS ROAD N.E.: � MOTION by Councilman Billings to grant Variance Request, VAR #91-14, with the following stipulations: (1) petitioner shall FRIDLEY CITY COUNCIL MEETING OF JULY 1, 1991 PAGE 16 � provide a grading and drainage plan showing where storm water detention and retention sha11 occur; said plan shall be approved by staff prior to the issuance of the building permit; (2) special use permit, SP #91-07, shall be approved; (3) applicant shall remove from the property all outside storage, with the exception of the semi-trailer truck, prior to the issuance of the building permit; (4) the petitioner shall enter into a lease agreement with the owner of Lot 2 and enter into an agreement with the City and owner of Lot 2, the form and aontent to be approved by the City Attorney. Further, the Mayor and City Manager are authorized to sign the agreement on behalf of the City; and (5j concrete curbing shall be installed along the south side of the new pavement extension. Seconded by Councilman Fitzpatrick. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. 11. RECEIVE AN ITEM FROM THE APPEALS COMMISSSON MEETING OF JUNE 11, 1991: A. VARIANCE REOUEST, VAR #91-15. BY STEINWALL. INC., TO REDUCE THE HARD SURFACE SETBACK FROM THE PUBLIC RIGHT-OF-WAY FROM 20 FEET TO 14 FEET AND 10 FEET, TO ALLOW ADDITIONAL PARKING ON LOT 8, BLOCK 2, EAST RANCH ESTATES, SECOND ADDITION THE SAME BEING 7895 RANCHERS ROAD N.E.: � Ms. Dacy, Community Development Director, stated that Steinwall, Inc. wishes to expand their parking area from 23 to 32 spaces. She stated that the variance varies from ten to six feet given the alignment of the property line. Ms. Dacy stated that the Appeals Commission recommended approval with one stipulation. She stated that the Commission felt this parking was needed to accommodate their largest shift of employees. Mr. Carl Steinwall, the petitioner, stated that the parking was needed to accommodate their employees, and there is no other space to use. He stated that they are about to capacity with their building but did not like the idea of moving. Councilman Billings asked Mr. Steinwall if he has been working with staff about the possibility of relocating in the City. Mr. Steinwall stated that it really is the question of finances. He stated that they have a 9,Q00 square foot warehouse on Main and 79th which they now rent. Ms. Dacy stated that she has spoken with Maureen Steinwall regarding some options. Councilman Billings asked if the variance was approved, how this � would impact another tenant if Steinwall moves. � ' � FRIDLEY CITY COUNCIL MEETING OF JULY 1. 1991 PAGE 17 Ms. Dacy stated that a parking analysis was done and if another tenant moved into the building, they would have to evaluate the space they were using in relationship to office and manufacturing. 5he stated that it seems half of the building would be manufacturing so the amount of parking for the building seems to be appropriate. MoTION by Councilman Billings to grant Variance Request, VAR #91-15, with the stipulation that the petitioner work with City staff on a landscape plan for the boulevard areas. Seconded by Councilman Schneider. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. 12. EXTENSION OF ROCK CRUSHING PERMIT, SP #82-12. FOR PARK CONSTRUCTION COMPANY AT 7900 BEECH STREET N.E.: MOTION by Councilman Billings to extend rock crushing permit, SP #82-12, until June 1, 1993 with the following stipulation: (1) if, on June 1, 1993, there have been no crushing operations that staff be allowed to renew the permit for another two-year period; if there has been crushing operations, this permit should be referred back to the Council for approval prior to May 31, 1993. Seconded by Councilwoman Jorgenson. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. 13. RECEIVE BIDS AND AWARD CONTRACT FOR POINT OF SALE AND INVENTORY HARDWARE, SOFTWARE AND SERVICES: MOTION by Councilwoman Jorgenson to receive the following bids for the liquor point of sale and inventory hardware, software and services: Company Total Register Systems Retail Data Systems/Iris Business Ware/DPM (Joint) Retail Data Systems/Tomax Total Bid $38,667 $64,839 $74,927 $59,035 Seconded by Councilman Schneider. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. Mr. DuBord, Assistant Finance Director, stated that four bids were received, and Retail Data Systems was the lowest responsible bidder who meets the requirements of the liquor operation. He stated that staff conducted an extensive review process and has eliminated one vendor on apparent software weaknesses. � � ' FRIDLEY CITY COIINCIL MEETING OF JIILY 1. 1991 PAGE_18 Councilwoman Jorgenson clarified that Total Register Systems was the lowest bidder, but they did not meet bid specifications. Mr. DuBord stated that was correct as all the criteria was ranked, and they were the lowest in meeting these requirements; therefore, it was felt that they were not a responsible bidder. MOTION by Councilman Schneider to award this contract for the Liquor POS Aardware/Software to the lowest responsible bidder, Retail Data Systems/Tomax and authorize staff to enter into contract negotiations for the system at a cost not to exceed $59,035. Seconded by Councilman Fitzpatrick. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. 14. RECEIVE BIDS AND AWARD CONTRACT FOR CLOVER POND DIVERSION 52ND AVENUE FLOODWAY PROJECT NO. 222: MOTION by Councilman Billings to receive the following bids for the Clover Pond Diversion/52nd Avenue Floodway, Project No. 222: Company Barr Engineering Maier Stewart & Associates ��b�4i Total bid $16,000 $ 1,800 $ 8,000 Seconded by Councilwoman Jorgenson. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. Mr. Mark Winson, Assistant Public Works Director, stated that the City has a Joint Powers Agreement with the City of Columbia Heights to correct some drainage problems at Clover Pond and bring excess drainage into Sullivan Lake. He stated it is recommended that Maier Stewart and Associates be awarded this contract for Phase I for an analysis and recommendation for a solution of the Clover Pond and 52nd Avenue Floodway, Project No. 222. He stated that a decision to proceed to Phase II will not be made until the analysis is completed and costs submitted to both City Councils for approval. MOTION by Councilman Billings to award this contract for the Clover Pond Diversion/52nd Avenue Floodway, Project No. 222 to the low bidder, Maier Stewart & Associates, for $1,800. Seconded by Councilman Schneider. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. FRIDLEY CITY COIINCIL MEETING OF JOLY 1. 1991 PAGE 19 � 15. RESOLUTION NO 54-1991 ORDERING IMPROVEMENT, APPROVAL OF PLANS AND ORDERING ADVERTISEMENT FOR BIDS; SKYWOOD LAKE WATER EXTENSION PROJECT NO. 220 (MENARDS/I-6941: MOTION by Councilman Billings to adopt Resolution No. 54-1991. Seconded by Councilman Schneider. Councilwoman Jorgenson stated that she understands an agreement has not been finalized with adjoining property owners and questioned the City's liability if the project did not proceed. Mr. Winson, Assistant Public Works Director, stated that the project would be advertised and, if for some reason the agreement is not finalized, the Council, if they did not want to proceed, could reject the bids. UPON A VOICE VOTE TAKEN ON THE ABOVE MOTION, all voted aye, and Mayor Nee declared the motion carried unanimously. 16. INFORMAL STATUS REPORTS: GRACE EVANGELICAL FREE CHURCH RE: 73RD AVENUE PROJECT: Mr. Winson, Assistant Public Works Director, stated that a request � was received from Grace Evangelical Free Church for the City to consider a median cut along 73rd Avenue in order to facilitate vehicle movements to the church. He stated it is staff's position that the church had sufficient time to make this request during the public hearing on this project. Mr. Winson stated that in looking at the safety issue, staff cannot recommend a median cut as it would be like a mid-block intersection and give a false sense of security to those entering the median cut. He stated that it really would not help the traffic entering or exiting the church in that they will be backing up in the parking lot instead of the frontage road. He stated that they would feel they have the right-of-way when, in reality, they do not, and the oncoming traffic will tend not to recognize this as an intersection. Mr. Winson stated that the City has not changed the conditions by which the church members access the property. He stated that the City has not closed any potential access points, and there are no indications of accidents at this intersection. He stated it is suggested that the church members contact the Police Department to make arrangements for traffic control if they are having a problem during their peak traffic periods. � _� � FRIDLEY CITY COONCIL MEETING OF JULY 1. 1991 PAGE 20 17. CLAIMS: MOTION by Councilwoman Jorgenson to authorize payment of Claims No. 38131 through 38356. Seconded by Councilman Schneider. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. CLAIMS - McGEE/IVERSON PR�PERTY AT 7899 BROAD AVENUE: MOTION by Councilman Fitzpatrick to approve the two claims for $1,999.90 and $2,362.64 relating to the McGee/Iverson property at 7899 Broad Avenue, as contained in a letter to the City dated June 18, 1991 £rom Federal-State Relocation Consulting Sarvices, Inc. for relocation, moving, and incidental expenses. Seconded by Councilman Schneider. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. 18. LICENSES: MOTION by Councilman Billings to approve the licenses as submitted and as on file in the License Clerk's Office. Seconded by Councilman Schneider. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. 19. ESTIMATES� MOTION by Councilwoman Jorgenson to approve the estimates as submitted: Insituform Central, Inc. 17988 Edison Avenue Chesterfield, MO 63D05 Sanitary 5ewer Repair Project No. 221 (Hackmann Avenue) FINAL ESTIMATE . . . . . . . . Western Waterproofing 2838 Stevens Avenue South Minneapolis, MN 55408 Phase II - 3 MG Reservoir Repair FSNAL ESTIMATE . Concrete Project No. 200 . . . . . . $25,101.00 . . . . . . . . . . . . . . $ 5,916.14 Herrick & Newman 205 Fridley Plaza Office Building 6401 University Avenue N.E. Fridley, MN 55432 � Services Rendered as City Attorney for the Month of June, 1991. . $ 2,894.25 l_� C J � FRIDLEY CITY COUNCIL MEETING OF JOLY 1 1991 PAGE 21 HNTB 67DD France Avenue South Minneapolis, MN 55435 Well No. 12 & Booster Station Improvement Project No. 216 Partial Estimate . . . . . . Halvorson Construction 4227 165th Avenue N.E. Anoka, MN 55304 1991 Miscellaneous Concrete, Curb, Gutter & Sidewalk Project Estimate No. 2 . . . . . . . . . . W.B. Miller, Inc. 16765 Nutria Street Ramsey, MN 55303 . . . $ 1,043.61 $ 3,042.19 Street Improvement Project No. ST. 1991 - 1& 2 Estimate No. 2 . . . . . . . . . . . . . . . $16,218.51 Seconded by Ccuncilman Schneider. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. ADJOURNMENT: MOTION by Councilwoman Jorgenson to adjourn the meeting. Seconded by Councilman Schneider. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously and the Regular Meeting of the Fridley City Council of July 1, 1991 adjourned at 10:22 p.m. Respectfully submitted, Carole Haddad Secretary to the City Council Approved: William J. Nee Mayor