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01/09/1995 - 00005331� � � THE MINUTES OF THE REGULAR MEETING OF THE FRIDLEY CITY COUNCIL OF JANUARY 9, 1995 The Regular Meeting of the Fridley City Council was called to order at 7:34 p.m. by Mayor Nee. PLEDGE OF ALLEGIANCE: Mayor Nee led the Council and audience in the Pledge of Allegiance to the Flag. ROLL CALL• MEMSERS PRESENT: Mayor Nee, Councilwoman Jorgenson, Councilman Billings, Councilman Schneider, and Council- woman Bolkcom MEMSERS ABSENT: None APPROVAL OF MINUTES: COUNCIL MEETING, DECEMBER 19. 1994: 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. ADMINISTRATION OF OATH OF OFFICE TO ELECTED OFFICIALS: Mr. Herrick, City Attorney, administered the Oath of Office to Councilman Steven Billings, Ward 1; Councilman Dennis Schneider, Ward 2; and Councilwoman Ann Bolkcom, Ward 3. All of these members of the Council were re-elected in the November election. Councilwoman Bolkcom thanked all her supporters and stated that she is looking forward to serving her four-year term. She stated that there are a lot of interesting issues that will be coming before the Council, and she hoped that the citizens would work with her and submit their comments. Councilman Billings thanked the voters of ti4ard 1 for their continued confidence. He stated that in his first seven years on the Council, he has taken the time to research the issues and to seriously analyze his position before a vote. He stated that he knows that not all his votes are a reflection of the opinion of every voter in the Ward, but he felt his re-election indicates that he is adequately representing the voters of Ward 1. Councilman Billings stated that as he embarks on what will likely be his last term as Ward 1 Councilmember, he plans to retain his sense of humor and to question items until they are clear. He stated that the easiest answers are not always the best, and FRIDLEY CITY COUNCIL MEETING OF JANUARY 9. 1995 PAGE 2 � sometimes taking a harder look reveals that more than one situation can be resolved at the same time. Councilman Billings stated that Fridley has been fortunate to have the largest commercial and industrial tax base in Anoka County. He stated that many of the City's programs and services only exist today because of this tax base. He stated that as the City matures, it becomes more difficult to maintain these programs and services, and there is constant demand and pressure to solve every request by every special interest group. He stated that the cost to replace existing infrastructure such as aging water and sewer systems is often greater than the initial cost to install them. He stated that mandates from State and Federal agencies can be costly for Fridley. He said that for these and other reasons, the challenges of his next term will be formidable ones, but he is prepared to meet all of them head-on and continue to the best of his ability to do what is best for the entire City. Councilman Schneider thanked the voters in Ward 2 and the entire community for their confidence. He also thanked the staff and felt that Fridley was well represented by a professional and dedicated staff. Councilman Schneider felt that the next several years will be extremely critical for Fridley, as the Council will be facing many problems such as housing and crime issues. He stated that � many are social problems, and the Council will have to take bold steps in making tough, controversial decisions. He stated that the Council has been working together, and the sma11 issues need to be set aside to focus on critical issues facing the community. He stated that this would take everyone's help. He stated that he was encouraged by the number of telephone calls he received in response to an article he had written for the City's newsletter. He stated that he looks forward to another four-year term on the Council. Mayor Nee stated that he was glad all three of these members of the Council were re-elected. SPECIAL ITEM• 1. RESOLUTION NO. 1-1995 ESTABLISHING RULES FOR CONSIDERATION OF ITEMS ON A CONSENT AGENDA AT MEETINGS OF THE FRIDLEY CITY COUNCIL: Mayor Nee stated that Council, by adoption of this resolution, will establish a process known as a consent agenda for considering non- controversial items. Mr. Burns, City Manager, stated that the consent agenda would streamline the Council meetings. He stated that the items on the consent agenda are routine and non-controversial. He stated that � Council would approve the consent agenda by resolution at tonight"s meeting, and the consent agenda would be voted on at each meeting. He felt that a consent agenda would leave more time for discussion FRIDLEY CITY COUNCIL MEETING OF JANUARY 9, 1995 PAGE 3 � of major policy issues. He stated that any item may be removed from the consent agenda at the request of a single Councilmember. He stated that if an item is removed, it would be placed at the end of the regular agenda under old or new business as the case may warrant. Mr. Burns stated that there would not be less staff work or docu- mentation for the consent agenda items, and all materials would be submitted to the Council. He stated that the consent agenda items would be briefly reviewed at the beginning of each Council meeting, and there would be an opportunity for the public to comment on the items. He stated that the consent agenda would be advertised on the cable television channel no la�er than the Friday afternoon before the Monday Council meeting. Mr. Burns stated that the type of items for the consent agenda would consist of establishing public hearings, second readings of ordinances where major policy direction has been established, routine business such as setting load limits for City streets, claims, licenses, advertising for bids or requests for proposals, and employee appointments. He stated that any items that require more than a majority vote or, through prior consultation with a Councilmember, have been identified as a regular agenda item would not be included on the consent agenda. � MOTIOPd by Councilman Schneider to adopt Resolution P1o. 1-1995, Seconded by Councilman Billings. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. APPROVAL OF PROPOSED CONSENT AGENDA: Councilman Billings stated that he received a telephone call reqarding the ordinance amendment relating to the parking of large commercial vehicles, and he would like this item removed from the consent agenda. Councilman schneider stated that he would like an update on the SCADA System, and he would like this item removed from the consent agenda. Mayor Nee stated that the above two items, Nos. 2 and 9, would be removed from the consent agenda and placed on the regular agenda. Mr. Burns, City Manager, briefly reviewed each item on the consent agenda. There were no comments from the public on the consent agenda. � MoTION by Councilman 5chneider to approve the following consent agenda items. Seconded by Councilman Billings. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. � � � FRIDLEY CITY COUNCIL MEETING OF JANUARY 9. 1995 PAGE 4 OLD BUSINESS: 2. SECOND READING OF AN ORDINANCE AMENDING CHAPTERS 506 AND 128 QF THE FRIDLEY CITY C�DE REGARDING THE PARKING OF LARGE COMMERCIAL VEHICLESa This item was removed from the consent agenda and placed on the regular agendae NEW BUSINESS: RECEIVE THE MINUTES OF THE PLANNING COMMISSION MEETING OF DECEMBER 14, 1994: RECEIVED. ESTABLISH A PUBLIC HEARING FOR JANUARY 23, 1995, TO CONSIDER FIRST READING OF A ZONING TEXT AMENDMENT fZTA #94-02) TO RECODIFY THE FRIDLEY CITY CODE. CHAPTER 205, ENTITLED "ZONING" $Y AMENDING SECTION 205.17.O1.C., TO ALLOW AUTOMOBILE STORAGE AS AN ACCESSORY USE TO ADJACENT AUTOMOBILE SALES FACILITIES, GENERALLY LOCATED TO THE EAST OF THE FRIENDLY CHEVROLET PROPERTY, 7501 HIGHWAY 65 N.E. (WARD 2): SET PUBLIC HEARING FOR JANUARY 23, 1995. 5. AUTHORIZE SOLICITATION OF REOUEST FOR PROPOSAL FOR RECYCLING SERVICES• r���u•�x.a RESOLUTION NO. 2-1995 ESTABLISHING A PUBLIC HEARING FOR FEBRUARY 13, 1995, TO MOAIFY THE REDEVELOPMENT PLAN APdD CREATE TAX INCREMENT FINANCING DISTRICT N0. 13: ADOPTED. ESTABLI3H A PUBLIC HEARING FOR JANUARY 23. 1995, TO RECEIVE COMMENTS ON THE 1995 COMMUNITY DEVELOPMENT BLOCR GRANT PROGRAM• SET PUBLIC HEARING FOR JANUARY 23, 1995. APPOINT ROTARY REPRESENTATIVE TO CITIZEN ADVISORY COMMITTEE FOR CLEAN—UP WEEK, 1995: APPROVED APPOINTMENT OF MARLA STRATTON AS ROTAF2Y REPRESENTATIVE AND JEANNE OLSON AS THE ALTERNATE. � � � FRIDLEY CITY COUNCIL MEETING OF JANUARY 9 1995 PAGE 5 9. APPROVE CHANGE ORDER N0. 1 AND THE FINAL ESTIMATE FOR THE SUPERVIS�RY CONTROL AND DATA ACQUISITION SYSTEM (SCADAi PROJECT NO. 259: This item was removed from the consent agenda and placed on the regular agenda. 10. RESOLUTION NO. 3-1995 IN SUPPORT OF AN APPLICATION FOR A MINNESOTA LAWFUL GAMBLING PREMI5E PERMIT TO TOTINO-GRACE HIGH SCHOOL (MAPLE LANES RESTAURANT�: ADOPTED. 11. RESOLUTION NO. 4-1995 IN SUPPORT OF AN APPLICATION FOR A MINNESOTA LAWFUL GAMBLING PREMISE PERMIT TO TOTINO-GRACE HIGH SCHOOL (SHARX CLUB1: ADOPTED. 12. RESOLUTION N0. 5-1995 DESIGNATING OFFICIAL DEPOSITORIES FOR THE CITY OF FRIDLEY: 13 14. 15 16 17 ADOPTED. - DESIGNATED FRIDLEY STATE BANK AND ITS SUCCESSORS AS THE OFFICIAL DEPOSITORY. RESOLUTION NO. 6-1995 DESIGNATING AN OFFICIAL NEWSPAPER FOR THE YEAR 1995: ADOPTED. - DESIGNATED FOCUS NEWS AS OFFICIAL NEWSPAPER AND THE STAR TRIBUNE AS THE CITY'S SECOND OFFICIAL NEWSPAPER. RESOLUTION NO. 7-1995 IMPOSING LOAD LIMITS ON PUBLIC STREETS AND HIGHWAYS IN THE CITY OF FRIDLEY, MINNESOTA: ADOPTED. RESOLUTION NO. 8-1995 DESIGNATING DIRECTOR AND ALTERNATE DIRECTOR TO SUBURBAN RATE AUTHORITY: ADOPTED. - Public Works Director and Assistant Public Works Director to serve as the Director and Alternate Director to the Suburban Rate Authority. APPOINTMENT: CITY EMPLOYEE: APPROVED. - Mark Bonesteel, January 1, 1995. CLAIMS: CSO Coordinator beginning APPROVED. - Nos. 59447 through 59760. FRIDLEY CITY COUNCIL MEETING OF JANUARY 9. 1995 PAGE 6 � 18. LICENSES: APPROVED. 19. ESTIMATES• APPROVED. ADOPTION OF AGENDA: MOTION by Councilman Schneider to adopt the agenda with the addi- tion of the following items from the consent agenda: Item 2, regarding the second reading of an ordinance amendment relating to the parking of large commercial vehicles and Item 9, reqardinq Change Order No. 1 for the SCADA Project No. 259. Seconded by Councilman Billings. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. OPEN FORUM, VISITORS: There was no response £rom the audience under this item of business. PUBLIC HEARINGS: � 20. PUBLIC HEARING TO DECLARE CERTAIN REAL ESTATE TO BE SURPLUS AND AUTHORIZING THE SALE TAEREOF (SOUTH 35 FEET OF 5720 POLK STREET N.E.1 UNDER SECTION 12.06 OF THE FRIDLEY CITY CHARTER (WARD 21• MOTION by Councilman Schneider to waive the reading of the public hearing notice and open the public hearing. Seconded by Councilman Billings. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously and the public hearing opened at 7:55 p.m. Mr. Hickok, Planning Coordinator, stated that the purpose of this hearing is to declare certain real estate to be surplus and to authorize the sale of the south 35 feet of 5720 Polk Street for expansion of the parking at the Moore Lake apartment complex. Councilman Billings stated that the purpose of the sale of a portion of this lot is to help alleviate the parking problem at the Moore Lake apartment complex. He stated he understands that this would not solve all the parking problems but will be a step in the right direction. He questioned if staff has reviewed the option of acquiring the apartments immediately to the south and selling a portion of the property to a developer to build another office � building with a parking lot on the south side of Lynde Drive. He stated that the parking could then be shared with the Moore Lake apartment complex and the office building. FRIDLEY CITY COUNCIL MEETING OF JANUARY 9, 1995 PAGE 7 � Mr. Hickok stated that staff has provided an update on this site and what has occurred in meetings with the owner and neighboring property owners. He stated that it was staff's understanding that the best option for this property would be to leave the north portion of the site for a single family home and sell the south portion to create fifteen new parking stalls. He stated that the owner of the apartment complex has really tried to expand the parking, but he did not believe that the commercial area to the south was pursued as a possible solution. Councilman Schneider asked if it would preclude looking at other options in the future if Council authorized the sale of a portion of this lot for parking. Ms. Dacy stated that she did not believe this action would affect Council's ability to review other alternatives in the future. MOTION by Councilman Schneider to close the public hearing. Seconded by Councilwoman Bolkcom. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously and the public hearing closed at 8:D8 p.m. Mayor Nee stated he has requested that Mayor Pro Tem Schneider conduct the public hearing on the next agenda item. , 21. PUBLIC HEARING TO CONSIDER A CHANGE IN TAX STATUS FOR ACCAP (ANOKA COUNTY COMMiJNITY ACTION PROGRAM) PROPERTIES IN HYDE PARK (WARD 31: MOTION by Councilman Billings to waive the reading of the public hearing notice and open the public hearing. Seconded by Council- woman Bolkcom. Upon a voice vote, all voting aye, Mayor Pro Tem Schneider declared the motion carried unanimously and the public hearing opened at 8:09 p.m. Ms. Dacy, Community Development Director, stated that ACCAP purchased a four-unit apartment building at 6008 2nd Street and two, seven unit apartment buildings at 5908 and 5916 2 1/2 Street. She stated that ACCAP intends to rehabilitate and operate the three apartment buildings as a"leasehold cooperative" in order to provide affordable housing for low income individuals. Ms. Dacy stated that Minnesota Statutes were recently amended to provide for "leasehold cooperatives." She said that the statutes dictate that the buildings must be owned by a non-profit corpo- ration, or if owned by a limited partnership, a non-profit organi- zation must be a managing general partner. She stated a"coop- erative association" must be formed and composed of inembers or � tenants who lease from the association. She stated that leasehold cooperatives are only available to those projects financed by public funds, and it is mandated that a cooperative association - have a lease for occupancy for at least twenty years. She said ------------------ FRIDLEY CITY COUNCIL MEETING OF JANUARY 9, 1995 PAGE 8 � that the statutes also stipulate income guidelines and that forty percent of the members must have incomes at or less than sixty percent of the median gross income for the area. Ms. Dacy stated that the property is eligible to be taxed at the homestead rate rather than the non-homestead rate; however, the City must hold a public hearing and make certain findings. She stated that these findings are (1) the homestead tax treatment will facilitate safe, clean, affordable housing that would otherwise not be available absent the designation; (2) savings from the homestead tax rate will be used to reduce rent levels or to maintain the building at a level not possible absent the homestead designation; (3) the cooperative association must have a lease for occupancy for twenty years; (4) the project must receive public financing; and (5) the members/tenants must meet State mandated income requirements. Ms. Dacy stated that i£ the tax status is changed Por these apart- ment buildings from non-homestead to homestead, the estimated amount of taxes to all taxing jurisdictions will be reduced from $4,721 to $1,781 for the seven unit buildings and from $3,724 to $1,318 for the fourplex. She stated that loss to the City will only be $337 for the fourplex and $412 for each of the seven unit buildings. She stated that the homestead tax treatment would � provide ACCAP the ability to use funds to leverage additional improvements to the property and with ACCAP as the owner, stable ownership and management of the property would occur. She stated that ACCAP intends to rehabilitate each of the units at a rate of approximately $10,000 per unit, and the estimated market value of the buildings will, therefore, increase by $20,000 to $30,000. Ms. Dacy stated that a neighborhood informational meeting was held on �ecember 15, 1994, and residents within 350 feet of these buildings were notified. She stated that Steve Klein from ACCAP is here this evening to answer any questions. Councilman Schneider asked if the density or parking would change for these apartment buildings and if the apartments currently have persons with low or moderate incomes living in these units. Ms. Dacy stated that the density or parking would remain the same; however, she did not know specifically if the tenants of these buildings were low or moderate income. She stated that there may be an individual in one of the seven unit buildings that meets this criteria. Councilman Schneider asked about the cash flow for these apartment buildings and if they needed maintenance. � Ms. Dacy stated that with a homestead tax rate, the property has a positive cash flow; however, if it is non-homestead the property - would have a negative cash flow and expenses would exceed revenues. � � ' FRIDLEY CITY COUNCIL MEETING OF JANUARY 9, 1995 PAGE 9 She stated that maintenance is needed on these units, as complaints have been received. She stated that she did not know if the inspector has been through every unit. Councilwoman Bolkcom asked if ACCAP would have to abide by the same rental ordinance as any other rental property owner. Ms. Dacy stated that even though ACCAP is a non-profit agency, they would still have to abide by the City's rental ordinance. Councilwoman Bolkoom stated that there was some concern about children in these units, as there is no place for them to play except in the street or in the yards of the residential homes in the axea. She stated she understands that Mr. Rlein would keep a close eye on this situation. Councilman Billings asked who would be the actual fee owner of these buildings, and he asked if the tenants would be signing a twenty-year lease. Ms. Dacy stated that the fee owner would be ACCAP. She under- stands the cooperative association will lease to ACCAP, and this association leases to each of the member tenants. Councilman Billings asked if there are other cooperatives in Anoka County or the nation. Mr. Klein, representing ACCAP, stated that about three months ago, they placed a leasehold cooperative in operation in Columbia Heights. He stated that the leasehold cooperatives had their origin in the cities such as Minneapolis and St. Paul. Mr. Klein stated that he cannot specifically address the length of time tenants remain in these cooperatives. He felt that belonging to a cooperative gives a sense of pride and sends a message that the tenants� input is important. He felt that this improves the units and reduces maintenance costs. He stated that ACCAP's interest in these buildings is as a rehabilitation project. Councilwoman Jorgenson asked if these units would be available for senior citizens. Mr. Klein stated that the buildings are not specifically designated for senior citizens or families, as he felt there is strength in diversity. He stated that the units would be available to any low or moderate income individuals. Councilman Schneider asked who would be contacted if there is a problem with the buildings. Mr. Klein stated that ACCAP's management staff would be responsible for the building. FRIDLEY CITY COUNCIL MEETING OF JANUARY 9. 1445 PAGE 10 � Ms. Dacy stated that ACCAP currently operates a fourplex in Fridley for transitional housing. over the last three years there have been seven police calls, four of which were routine items. She stated that this building is well maintained. Councilman Schneider asked if the tenants have a month-to-month lease or longer in a leasehold cooperative arrangement. Mr. Klein stated that ACCAP has a month-to-month lease with their tenants except where a one-year lease is required by certain government sources. Councilwoman Bolkcom asked the average time a tenant usually stays in these buildings. Mr. Klein stated that ACCAP built some apartments in 1980. There are still ten to twenty percent of the tenants living there, but they have never really kept track of the turnover. He stated that their concern is that they are providing a higher quality rental unit. He stated that ACCAP would like the tenants to remain on a long term basis, but a rapid turnover would be due to a tenant's irresponsibility. Councilman Schneider asked if the tenants were screened. � Mr. Klein stated that ACCAP has formal rental research screening for all their units and operate between 300 to 350 units throughout the County. Mr. Klein stated that in regard to the three buildinqs in Fridley, they need new roofs, and ACCAP would like to make them as main- tenance free as possible. He stated that the windows, electrical, and plumbing need updating. He stated that the floor coverings and appliances need to be replaced, and the interiors need painting. He stated that there are also some needed driveway repairs and landscaping. He stated that they would also work with the City as to what staff felt was needed on these properties. He felt that the cost of $10,000 per unit would be adequate to complete these improvements. Mayor Nee asked i£ ACCAP planned to have a manager on the premises. Mr. Klein stated that ACCAP relies heavily on the resident manager, and they would have one resident manager for all three buildings who would reside in one of the seven-unit complexes. Councilwoman Jorgenson asked if any of the existing tenants would remain in these units. � Mr. Klein stated that as long as the tenant is responsible, they will remain for the immediate future. He stated that they are not forcibly removing any tenants. � FRIDLEY CITY COUNCIL MEETING OF JANUARY 9, 1995 PAGE 11 Mr. Thompson, 5846 3rd Street, questioned the legality of the leasehold cooperative. He understands that a leasehold cooperative should be held by members in the cooperative. He did not believe the leaseholders would stay in the property for twenty years. He stated that he could not understand if a person signs a lease to rent from month-to-month that they would be there for twenty years. He felt that the attorneys should check this thoroughly to determine if it is legal. Councilman Schneider stated he understands that the twenty-year lease is for the leasehold association and not the individual tenants. Mr. Thompson stated that he did not know why one person should be entitled to a tax cut and not others. Ms. Dacy stated that the intent of the leasehold cooperative is to enable non-profit agencies to use this as a way to provide affor- dable housing and, at the same time, work with the tenant towards self-sufficiency. She stated that the provision for such an agency to be taxed at the homestead rate was a tool for the City to use. Mr. Dick Snyder, 5901 2nd Street, stated that even though the change in tax status would result in only about a$1,200 loss per , year in taxes, over the twenty-year period it could be a very substantial amount. He stated that he and many others have lived _ in Hyde Park for twenty years and do not want to move, but they may be forced to do so if taxes continue to increase. � Councilman Schneider stated that if the buildings continue to deteriorate everyone would pay more taxes because the value would decrease. He stated that if ACCAP maintains those buildings, property values could potentially increase to provide more taxes and stop the deterioration of the property. Mr. Snyder stated that the buildings are not really run down, but they need new roofs. He stated that another problem is the parkinq. If these units are rented to capacity there is no available parking. He stated that there is the potential for six persons to occupy a two bedroom unit and four persons to occupy a one bedroom unit. Councilman Schneider stated that the requirements, as far as the density, would remain the same, but improvements would be done to the buildings. Mr. Snyder stated that a month-to-month lease is not much of a commitment. He felt that persons would not be there long-term with this lenqth of lease. Mr. Klein stated that some landlords have gone to a month to month lease because of problem tenants. He stated that he would not have a problem with a year's lease. FRIDLEY CITY COUNCIL MEETING OF JANUARY 9, 1995 PAGE 12 � Ms. Janet Taylor, 5916 2nd Street, stated that there are no back yards at these apartment buildings. She stated that it would be ridiculous to have children occupying these units, as they have no place to play except in the street. 5he stated that Ms. Dacy answered all her questions. She stated it seems that Mr. Klein does not have the time to talk to her, and she felt that ACCAP was not working with the residents. Ms. Taylor stated that Hyde Park has high crime, and if ACCAP keeps tenants that are problems the situation will not improve. She stated that tenants do not take care of their rental units now, and she did not feel that ACCAP would make a difference if this was a leasehold cooperative. She stated that she did not feel that conditions in the Hyde Park area would improve, but that they would only get worse. Mr. Sallman, Public Safety Director, stated that in the past year, Hyde Park has had a burglary problem. He stated that the police have made a strong presence in the area, and he stressed that residents should call if there are problems. Mr. Robert Warolin, 6024 2-1/2 Street, stated that for these buildings to be leasehold cooperatives, they should be owned and operated for the benefit of those using the services. He stated � that it seems the leasehold cooperative is in a"gray'� area or what almost constitutes fraud. He stated that the taxes on these apartment units are lower than what the average single family homeowner pays. He felt that if the tax status is changed, it would shift the tax burden on other taxpayers. He stated that residents of these buildings still need schools and fire and police protection. He felt that this was not fair, and he asked Council to vote against it. Councilman Schneider stated that the lauildings cannot generate enough income to be properly maintained without this change in tax status. He stated that the purpose is to provide a mechanism so the properties can be maintained, He stated the theory is that everyone in the City would benefit because the money generated would be reinvested back into the property and, if the buildings are better maintained, the value of the entire neighborhood would increase. Mr. Warolin felt that the buildings should be improved whether or not there is a change in the tax status. He felt that it was unfair to shift more of the tax burden to other taxpayers. Ms. Gretchen Thompson, 5846 3rd Street, asked why ACCAP was interested in purchasinq the properties if it was not going to make any money on them. � Mr. Klein stated that ACCAP is a non-profit corporation and meets the definition under the IRS code. He stated that a non-profit � � � � FRIDLEY CITY COUNCIL MEETING OF JANUARY 9. 1995 PAGE 13 corporation can generate income, but the source of income is applied to the function of the organization. Mayor Nee stated that his impression of ACCAP is the reason they are doing these thinqs is to fulfill a mission but not make any money. He stated that their board is comprised of volunteers throughout the County who hope somethinq good can be done for society. Mr. Myron Helget, 6030 2nd Street, stated that if something is not done with the properties they would deteriorate, and there would be high crime. He stated that Hyde Park is the lower income area, so residents should be willing to provide housing for low and moderate income people. He felt that this proposal should be given a chance, and he would be in favor of a change in the tax status for this project. Ms. Mavis Pries, 5905 Main Street, asked who directed ACCAP to purchase these three buildings. She stated that Council is eliminating businesses in the Hyde Park area, and she felt that these buildings could be condemned so new construction could take place at these locations. She stated that no one livinq in a building for only one month would be concerned about the property. She stated that if the existing tenants remain, the buildings will be in bad shape. Councilman Billings stated that there are programs for housing rehabilitation to try and help aging communities who wish to rehabilitate their housing. He stated that these are positive programs for cities to help prevent the downward spiral of tax values. He felt that with ACCAP owning the properties there would be a responsible property owner accomplishing something positive, not only for the property but also for the community. He stated that ACCAP initiated the purchase of these buildings and the request for a change in the tax status. Councilwoman Bolkcom stated that the City is looking at homes and rental property that is deteriorating and is seeking ways to rehabilitate the housing. Ms. Dacy stated that the City is offering programs, either grants or loans, to rehabilitate the City's housing stock. She stated that this year Council will be evaluating the issue in more detail. Mr. Donald Fortune, 6009 2nd Street, asked what would happen if ACCAP purchases more apartments in this area and additional taxes are lost. Councilman Schneider stated that if ACCAP improves the apartments, property values would rise, and there will be additional taxes. � � � FRIDLEY CITY COUNCIL MEETING OF JANUARY 9, 1995 PAGE 14 Mr. Fortune stated that the value of his home has not decreased because of these apartment buildings, but it has increased. Councilman Schneider stated that he would bet the value of Mr. Fortune's home has not kept up with inflation over the last five years. Mr. Fortune stated that he is unhappy with this whole situation. He felt that ACCAP should improve the buildings and then determine if they should get a tax break. Mr. Snyder, 5901 2nd Street, asked who monitors the revenue from the buildings to see that it goes back into these structures. Ms. Dacy stated that the County Attorney has to certify the application. The City could verify with their office how they monitor the tax value. Mr. Snyder buildings. He stated remain. stated that there are drug and abuse problems in these An arrest was made for abuse and damaqing property. that even if ACCAP purchases them, the problems still Mr. Klein stated that he was not aware of any arrests since they purchased the properties. Ms. Pat Donnay, 5980 2nd Street, stated that she did not feel that $10,000 had to be spent to update the units. She stated that she did not believe there would be $40,000 in improvements for 6008 2nd Street. Mr. Jerry McNurlin, 5936 2nd Street, stated that ACCAP purchased the properties, and now they should operate them. He felt that if they operated the buildings as promised and completed the improve- ments, then they could request a change in tax status. He stated that there is no proof at this time that ACCAP will do what they are promising. Councilman Schneider stated that the City would be losinq about $1,200 per year in taxes. With about 10,000 residences, this would amount to about twelve cents per household in shifting the tax burden for the potential of preserving property and the neighbor- hood in Hyde Park. MOTION by Councilman Billings to close the public hearing. Seconded by Councilwoman Jorgenson. Upon a voice vote, all voting aye, Mayor Pro Tem Schneider declared the motion carried unanimously and the public hearing closed at 9:37 p.m. FRIDLEY CITY COUNCIL MEETING OF JANUARY 9, 1995 PAGE 15 ' OLD BUSINESS• 22. RESOLUTION PROVIDING FOR WATER RATE CHANGE {TABLED DECEMBER 19, 1994): Mayor Nee removed this item from the table. Mr. Pribyl, Finance Director, stated that Council has received figures on the projected income for the Water Fund for the next five years, with no rate increase and with a rate increase. He stated that without an increase in rates, the City could lose up to $1,500,000 over the next five years if the consumption and other assumptions remain constant. He stated that the recommendation is to increase the zero to 5,000,000 gallon range from $.60/1,o0D to $.66/1,000 and over 5,000,0000 gallons to $70/1,000. He stated that it is still anticipated that there will be a loss in opera- tions for 1995 even with this recommended increase, Mr. Pribyl stated that Fridley has one of the lowest costs for water. Based on 30,000 gallons of use per quarter, the rate would increase $1.80 per quarter or $7.20 per year. Councilman Schneider stated that the water quality was discussed at the last Council meeting. He stated the water that the City is � receiving from New Brighton is four to seven times higher in iron and manganese and three times higher than Health Department standards. He questioned how the City would justify a rate increase when the water quality is poorer. Mr. Flora, Public Works Director, stated that the water is being analyzed for iron and manganese. He stated that the water from the wells at Commons Park and the Locke Park Filtration Plant are within Health Department standards. He stated that all of Fridley's wells are filtered except three. Mr. Flora stated that New Brighton has two plants; one is filtered and one is not. He stated that depending on the blending process, the water may be totally filtered but some may be unfiltered. He stated that Fridley will always have iron and manganese in the water, as there is no system to totally remove it. Councilwoman Jorgenson asked when the test results on the water would be available. Mr. Flora stated that these results should be available within the next week. MOTION by Councilman Schneider to table this item to the next � meeting. Seconded by Councilwoman Jorgenson. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. FRZDLEY CITY COUNCIL MEETZNG OF JANUARY 9. 1995 PAGE 16 � 23. FIRST READING OF AN ORDINANCE TO AMEND THE CITY CODE OF THE CITY OF FRIDLEY. MINNESOTA, BY MAKING A CHANGE IN ZONING DISTRICTS (REZONING REQUEST, ZOA #94-44, BY DAVE MCINTYRE OF CERES ENVIRONMENTALI (TABLED DECEMBER 19, 1994) (WARD 3): MOTION by Councilwoman Bolkcom to remove this item from the table. Seconded by Councilwoman Jorgenson. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. Mr. Hickok, Planning Coordinator, reviewed this request to rezone property from M-2 to M-3 for property generally located east of 5101 Industrial Boulevard, north of FMC, and adjacent to the Burlington Northern mainline. He stated that staff inet with the developer and City Attorney to further analyze the use of these lots as an office, maintenance, and outdoor storage facility. Mr. Hickok stated that staff feels the outdoor storage for this facility will be required as a portion of the principal usee It is not incidental to that principal use and, therefore, cannot be done in an M-2 zoning district with a special use permit. He stated that staff's recommendation is to deny the rezoning to M-3 based on the incompatibility with surrounding uses. Mr. Steve Johnson, Business Manager for Ceres Environmental, felt � that there were two issues; (1) consider this an appropriate M-2 use or (2) to rezone to M-3. He stated that it is an appropriate M-2 use, in that the language being used to determine if it is not is whether an M-2 use is incidental or not. He stated that their primary operation is offices for their administrative staff and a repair facility. He stated that is the primary function of the property and outdoor storage is necessary for the trucks. He stated that there would be very few vehicles stored long-term on the property considering the amount of space being dedicated to that activity. Mr. Sohnson asked that Council look at the uniqueness of the site. He stated that it is a very small parcel and really limits what can be done on this site. He stated that they have been very creative in working with staff to make good use of this property. He stated that as far as the use of this site for other businesses, it would be very limited. He stated that an office/warehouse facility would not have sufficient room for a truck/trailer operation. Mr. Johnson stated that the property has been for sale for nine years, and their offer was the only one. He stated that they are not purchasing the property for resale and intend to invest a significant amount of money for their use. He stated that the only problem he would anticipate is the height of the equipment which � is higher than what is allowed in an M-2 district. Mr. Johnson stated that of the M-3 properties that are available in the City, the asking price is about double the price for this parcel. He stated that this would quadruple their costs, and they � � FRIDLEY CITY COUNCIL MEETING OF JANUARY 9. 1995 PAGE 17 would then need to include their timber recycling operation which is loud and noisy, in order to make it feasible. He felt that if the rezoning was denied, they would not be able to locate in the City, and the City would be left with a piece of property that would not be developed for a substantial period of time. Mayor Nee stated that Mr. Johnson makes a good case for the rezoning. Councilwoman Jorgenson stated that she has no doubt that Ceres Environmental would be a good resource for this property, but she has to look at the long term planning and this would be spot zoning. She felt that it would set a precedent when the City has recently set aside M-3 zoning for this type of use. Mr. Johnson stated that he felt the uniqueness of the parcel addresses this concern. He stated that with a building and pond, there is not that much space left. He felt that their proposal was good for this parcel and that it would not set a precedent because other parcels are not this unique. MOTION by Councilman Billings to call the question on the motion £rom the December 19, 1994 meeting. Seconded by Councilwoman Bolkcom. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. The motion on the floor from the December 19, 1994 meeting is as follows: MOTION by Councilman Billings to waive the reading and approve the ordinance on first' reading with the eight stipulations as outlined by staff. Seconded by Councilman Schneider. Upon a roll call vote, Councilman Billings, Councilman Schneider, Mayor Nee, Councilwoman Jorgenson, and Councilwoman Bolkcom all voted against the motion. Mayor Nee declared the motion failed. MOTION by Councilman Billings to concur with the staff's recom- mendation and deny this Rezoning Request, ZOA #94-04 by Dave McIntyre of Ceres Environmental based on the site's relatively small size and incompatibility with surrounding M-2 zoning designations. Seconded by Councilwoman Bolkcom. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. 2. SECOND READING OF AN ORDINANCE AMENDING CHAPTERS 506 AND 128 OF THE FRIDLEY CITY CODE REGARDING THE PARKING OF LARGE COMMERCIAL VEHICLES: � Councilman Billings stated that he was contacted by a person regarding a question if school buses parking on residential streets were subject to this ordinance. Ae stated that he would like this question clarified before action is taken on the item. FRIDLEY CITY COUNCIL MEETING OF JANUARY 4. 1995 PAGE 18 � MOTION by Councilman Billings to table this item to the next meeting. Seconded by Councilwoman Jorgenson. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. NEW BUSINESS: 24. SPECIAL USE PERMIT RE UEST SP #94-18, BY LAWRENCE FELDSIEN OF SINCLAIR MARKETING C0. TO ALLOW A REPAIR GARAGE IN A C-3, GENERAL SHOPPING CENTER DISTRICT, GENERALLY LOCATED AT 6290 HIGHWAY 65 N.E. (WARD 2): Mr. Hickok, Planning Coordinator, stated that this is a request for a special use permit to allow automotive repair associated with a fuel dispensing station located in a C-3 zoning district. He stated that a public hearing was held by the Planning Commission on this request, and they recommended approval with several stipulations, MOTION by Councilman Schneider to qrant Special Ose Permit, SP #94-18, with the following stipulations: (1) a fenced screening area to the rear of the building shall be created. Fencing shall be eight feet in height, board on board design, with an opaque gate (see improvement plan for fence locations). Used tires, the dump- ster, and the waste oil tank shall be stored within the storage � area; (2) no junk vehicles shall be stored on-site; (3) vehicles leaking fluid shall not be stored outside without a device to prevent fluids from runninq off-site; (4) the signage shall comply with Chapter 214 of the City Code; (5) alterations to the site shall comply with the UBC and UFC; (6) additional landscaped areas lined with concrete curb as indicated on the improvement plan shall be provided by the petitioner on-site. The landscaped areas shall include underground irrigation. The landscaped areas shall include sod or seed, three ornamental trees, and shrub beds with evergreen and deciduous shrubs, to be completed on or before December 31, 1998 or at the time of the installation of underground tanks, whichever occurs first; (7) there shall not be any outdoor storage outside of the screened yard area except for licensed motor vehicles which are parked in designated parking stalls provided they are not parked outdoors for more than 48 continuous hours; (8) the drive aisles shall be reduced to 32 feet, to be completed on or before December 31, 1998, or at the time of the installation of underground tanks, whichever occurs first; (9) in the event that the structure is remodeled so that the overhead doors are located other than on the east side of the building, the special use permit shall be reviewed; (10) if additional parking areas are designated above and beyond what is shown on the submitted plan, these parking areas must be approved by City staff in accordance with the ordinance; and (11) at the time the improvements in Stipulation � No. 6 and No. 8 are started, the petitioner shall submit a perfor- mance bond of $5,000 to cover them. Seconded by Councilwoman Jorgenson. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously.