08/12/1996 - 00002135�
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THE MINUTES OF THE REGULAR MEETING OF THE FRIDLEY CITY COUNCIL OF
The Regular Meeting of the Fridley City Council was called to order
by Mayor Nee at 7:30 p.m.
PLEDGE OF ALLEGIANCE:
Mayor Nee led the Council and audience in the Pledge of Allegiance
to the Flag.
ROLL CALL.
MEMBERS PRESENT: Mayor Nee, Councilwoman Jorgenson, and
Councilman Billings and Councilman Schneider
MEMBERS ABSENT
APPROVAL OF MINUTES:
Councilwoman Bolkcom
COUNCIL MEETING, JULY 22, 1996�
MOTION by Councilwoman Jorgenson Lo approve the minutes as
presented. Seconded by Councilman Billings. Upon a voice vote, a11
voting aye, Mayor Nee declared the motion carried unanimously.
BOY SCOUS TROOP #167•
Mayor Nee welcomed Boy Scout Troop #167 to the Council meeting and
asked each member of the Troop to introduce themselves.
Ms. Schrupp thanked Council for allowing them to attend the
meeting. She said the Boy Scouts believe good citizenship is not
�ust a word, but a deed. The Troop is work_ing on a merit badge.
Councilman Schneider stated that he was glad they could attend the
meeting to see how government works.
Mayor Nee thanked the Boy Scout Troop for attending the Council
meeting.
PROCLAMATION - GOOD NEIGHBOR DAY, SEPTEMBER 4, 1996�
Mayor Nee issued a proclamation proclaiming September 4, 1996 as
Good Neighbor Day, He encouraged all persons who live and de
business in the City to take part in Good Neighbor Day as a way of
showing respect and concern for all in the communrty.
Mr. Pribyl, Acting City Manager, stated that Schaaf Floral is
promoting Good Neighbor Day by giving away a dozen roses to persons
who, in turn, will give the roses to others He stated it is
expected that a total of 5,000 roses will be distributed. He
stated he understands that Schaaf Floral will be doing a media
promotion on thls event.
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FRIDLEY CITY COUNCIL MEETING OF AUGUST 12, 1996 PAGE 2
APPROVAL OF PROPOSED CONSENT AGENDA:
l. ESTABLISH A PUBLIC HEARING FOR AUGUST 26, 1996, TO CONSIDER
THE APPLICATION OF MAIN EVENT FOR AN INTOXICATING LIQUOR
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Mr. Pribyl, Acting City Manager, stated that a liquor license
has been requested for Main Event at 7850 University Avenue
N.E. This is, for the property which was previously the site
for T.R. McCoys and Longhorn Grill and Bar. Since a public
hearing is required before a license can be issued he
requested that Council set the public hearing for August 26,
1996. The Police Department is in the process of conducting a
background investigation, and the results will be available
for the public hearing
SET PUBLIC HEARING FOR AUGUST 26, 1996 TO CONSIDER AN
INTOXICATING LIQUOR LICENSE FOR MAIN EVENT, 7850 UNIVERSITY
AVENUE N.E.
RESOLUTION N0. 51-1996 AUTHORIZING CHANGES IN APPROPRIATIONS
REIMBURSEMENT FUND, DRUG AND GAMBLING FORFEITURE FUNll,
ING REVITALIZATION FUND AND THE CAPITAL IMPROVEMENT FUND
Mr. Pribyl, Acting City Manager, stated that this resolution
amends the estimated revenues and appropriations to the 1995
budget in accordance with the City Charter. The ad�ustments
have arisen as a result of donations, unforeseen ex_penditures
and items budgeted in the wrong categories. All ad�ustments
have either been informally approved by Council through the
Budget Reappropriation Form or made to eliminate neqative
variances on the Comprehensive Annual Financial Report.
ADOPTED RESOLUTION NO. 51-1996.
3. RESOLUTION N0. 52-1996 APPROVING A THIRD SUPPLEMENTAI,
INDENTURE OF TRUST AND A 5ECOND AMENDMENT TO LOAN AGREEMENT
REGARDING THE CITY'S COMMERCIAL DEVELOPMENT REVENUE BONDS
(FRIDLEY BUSINESS PLAZA LIMITED PARTIQERSHIP PROJECT) AND OTHER
DOCUMENTS RELATING THERETO:
Mr. Pribyl, Acting City Manager, stated that this resolution
is related to the Fridley Business Plaza Partnership Pro�ect.
Recenue bonds were initiated in 1986 for this pro�ect, and the
partnership is using a new letter of credit to secure the
original bonds. It is, therefore, necessary to execute a
document entitled Letter of Representations and
Tndemnification, as well as amendments to the original loan
agreement between the City and the Fridley Business Plaza
Limited Partnership. Mr Pribyl stated that the documents
also contain minor changes that do not affect the City. Jim
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FRIDLEY CITY COUNCIL MEETING OF AUGUST 12, 1996 PAGE 3
O'Meara, Briggs & Morgan, has reviewed these documents, and
they appear satisfactory.
ADOPTED RESOLUTION NO. 52-1996.
4. RESOLUTION N0. 53-1996 DESIGNATING POLLING PLACES AND
APPOINTING ELECTION JUDGES FOR THE SEPTEMBER 10, 1996
STATEWIDE PRIM�RY ELECTION:
Mr. Pribyl, Acting City Manager, stated that this resolution
designates both polling places and election �udges for the
September 10, 1996 primary election. The �udges were picked
from lists supplied by both political parties.
ADOPTED RESOLUTION NO. 53-1996.
5. RESOLUTION N0. 54-1996 MODIFY II1G THE REDEVELOPMENT PLAN FOR
kEDEVELOPMENT PkOJECT N0. 1 AND THE TAX INCREMENT FINANCING
PLANS FOR TAX INCREMENT FINANCING DISTRICTS NOS. 1-3, 6, 7,
9 - 14 (WARD 3):
Mr. Pribyl, Acting City Manager, stated that this resolution
adds a parcel in the Great Northern Industrial Park to
Redevelopment Pro�ect Area No. 1 for Wallboard, Inc.
� Wallboard plans to construct a 30,000 square foot building
which will create approximately thirty �obs It is necessary
to expand the pro�ect area in order to enable the Housing and
kedevelopmenr Authority to provide a loan to Wallboard. This
resolution does not expand the tax increment financing
dlstrict.
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ADOPTED RESOLUTION NO. 54-1996.
RESOLUTION N0. 55-1996 AUTHORIZING MUNICIPAL STATE AID FUNDS
TO COUNTY STATE AZD HIGHWAY (C.S.A.H. 108) OSBORNE ROAD - OLD
CENTRAL TO STINSON BOULEVARD (CP 91-08-108) (S.A.P.
Mr. Pribyl, Acting City Manager, stated that Anok_a County
Highway Department is proposing to upgrade Osborne Road
between Old Central and Stinson Boulevard. The improvement
will consist of concrete curb and gutter, storm water
improvements, and a sidewalk on the Fridley side of the road.
This resolution requests State Aid off-system funding for the
City's portion of the improvement costs.
ADOPTED RESOLUTION NO. 55-1996.
RESOLUTION N0. 56-1996 TO APPOINT AN EMERGENCY MANAGEMENT
DIRECTOR FOR THE CITY OF FRIDLEY.
Mr. Pribyl, Acting City Manager, stated that Chapter 106 of
the Fridley City Code provides for the appointment of an
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CITY COUNCIL MEETING OF AUGUST 12, 1996 PAGE 4
Emergency Management Director, and the City's Emergency
Management Plan refers to the Public Safety Director as the
Emergency Management Director. This resolution formally
appoints the Public Safety Director as the Emergency
Management Director.
ADOPTED RESOLUTION NO. 56-1996.
RESOLUTION N0. 57-1996 AUTHORIZING AGREEMENT WITH THE STATE OF
MINNESOTA FOR FURNISHING HAZARDOUS MATERIALS EMERGENCY
RESPONSE SERVICE:
Mr. Pribyl, Acting City Manager, stated that this agreement is
with the Minnesota Department of Public Safety to provide
chemical assessment team services to various counties in the
area. The agreement is in accordance with the rules of the
Minnesota Hazardous Materials Incident Response Act. The City
will be reimbursed for all expenses incurred.
ADOPTED RESOLUTION NO. 57-1996.
9. CLAIMS:
AUTHORIZED PAYMENT OF CLAIM NOS. 6923$ THROUGH 69582.
10. LICENSES.
APPROVED THE LICENSES AS SUBMITTED AND AS ON FILE IN THE
LICENSE CLERK'S OFFICE.
11. ESTIMATES.
APPROVED THE ESTIMATES, AS FOLLOWS:
Frederic W. Knaak, Esq.
Holstad and Larson, P.L,C.
3535 Vadnais Center Drive
St. Paul, MN 55110
Services Rendered as City Attorney
for the Month of July, 1996 ...
1Qewquist & Ekstrum, Chartered
301 Fridley Plaza Office Building
6401 University Avenue N.E
Fridley, MN 55432
Services Rendered as City Prosecuting
Attorney fcr the Month of May, 1996.
$ 5,035.79
$ 15,15�.31
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FRIDLEY CITY COUNCIL MEETING OF AUGUST 12, 1996 PAGE 5
Schield Construction Company
13604 Ferris Avenue South
Apple Valley, MN 55124
Stonybrook Creek Bank Restoration
Pro�ect No. 296
Estimate No. 6 . . . . . . . . . . .
Hardrives, Inc.
14475 Quiram Drive
Rogers, MN 55374-9461
Street Improvement Pro�ect
No. ST 1995-1 & 2
Estimate No. 6 . . . . . . . . . .
$ 36,754.03
. $123,392.46
No persons in the audience spoke regarding the proposed consent
agenda items
MOTION by Councilman Schneider to approve the consent agenda items.
Seconded by Councilwoman Jorgenson. Upon a voice vote, all voting
aye, Mayor Nee declared the motion carried unanimously.
ADOPTION OF AGENDA•
MOTION by Councilman Billings to adopt the agenda as submitted.
Seconded by Councilman Schneider. Upon a voice vote, all voting
aye, Mayor Nee declared the motion carried unanimously
OPEN FORUM, VISITORS.
Ms. Shirley Arbor, 125 79th Way, questioned what was being done
about the homes at the corner of East River Road and Osborne Road.
She stated that this is a nice area with homes ranging in the
$100,000 plus, but the first two homes coming into the area are not
attractive and unkept, with parties held there all the time.
Councilwoman Jorgenson stated that the City is working with the
Police Department and the Code Enforcement Officer. Some citations
have been issued. The City is aware of this situation, and it is
being followed closely.
NEW BUSINESS:
12. RESOLUTION NO 58-1996 CONSENTING TO THE HOUSING AND
REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY
ADOPTING 1996 TAX LEVIES COZLECTIBLE IN 1997.
Ms. Dacy, Community Development Director, stated that this
resolution gives consent to the Fridley Housing and Redevelopment
Authority (HRA) to impose a levy for a tax on all real property in
the City. This action is a small portion of a larger issue which
involves rehabilitation of the housing sLock. Fridley's population
� FRIDLEY CITY COUNCIL MEETING OF AUGUST 12, 1996 PAGE 6
is declining and aging, and there has not been a lot of new
residential housing. The income structure of the households is
also changing and declining, and there is an increase in non-
traditional households; single adults, single parents, and empty
nesters_ In essence, Fridley is competing to retain its population
and attract new households.
Ms Dacy stated that the City has adopted a housing program to give
people a reason to stay or move to Fridley and to create housing
opportunities to prevent blight and provide neighborhood stability.
Rehabilrtation programs using State, Federal, Community Development
Block Grants, and HRA funds have been inrtiated to remove blighted
housing. Programs have been initiated for first-time home buyers,
and a rental inspection program is now in place.
Ms. Dacy stated that there needs to be a mechanism to maintain the
housing stock, and there will be further demands for
rehabilitation. The HRA and the Council will have to evaluate the
financial impact of redevelopment pro�ects, as there are scattered
pockets of housing that are severely deteriorated The loan
program for rehabili�ation is not a solution to all the housing
problems but part of an attempt to prevent blight in the community.
� Mr. Fernelius, Housing Coordinator, stated that the HP.A tax levy is
authorized under state law. The levy would be used to support the
revolving loan program, focusing on single family housing
rehabilitation. The levy would be used as capital to create the
loan program, and the loan would be repazd through the tax levy
payments
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Mr. Fernelius stated that the loan to the HRA would be ior $1.5
million at an interest rate of five percent over a fifteen-year
period. All property in the City would be assessed for taxes
payable in 1997. The levy would generate $168,993 in 1997 or .0441
percent of the total market value in the Crty. The impact on a
single family home using an average value of $88,000 would be an
increase in taxes of about $12 00 per year. In terms of industr�al
property, using a value of $9,500,000, the increase in taxes would
be about $1,300 per year. The tax levy has to be approved by the
Council on an annual basis.
Mr Fernelius stated that several other suburbs have enacted HRA
tax levies Bloomington collects $693,DOG, which is used for
general administration as well as housing programs, and Brooklyn
Center collects $300,000 for economic development. Crystal is
banking their tax levy to use the funds for future redevelopment.
New Hope's levy is not large but is used for paying salaries.
Richfield's levy would be similar to Fridley's, and South St. Paul
has a levy �ahich amounts to $55,000 per year
Mr. Fernelius stated that in regard to the need for a revolcing
1oan program, there are a number of factors to be considered. The
first is the age and condition of Fridley's housing stock. The
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FRIDLEY CITY COUNCIL MEETING OF AUGUST 12, 1996 PAGE 7
City has a substantial amount af housing units approaching thirty
years of age. 0]der housing requires more attention and has some
marketing implications in comparison with other suburbs in terms of
amenities. The 1994 study evaluating housing conditions showed
that there are a minimum of 900 homes in the City requiring some
repair.
Mr. Fernelius stated that another factor for a revolving loan
program is that the private sector is not providing financing for
rehabilitation to those persons that have higher debt loads or who
lack equity in their home. A1so, there is not sufficient federal
funding available, and it is important to access the City's ability
to address housing condrtions now rather than respondinq to a
crisis down the road.
Mr. Fernelius stated that the HRA fund balances will decline in the
next fifteen years due to other redevelopment activities. This
levy would provide a funding source, and the program could become
self-sufficient. The HRA considered this tax levy and passed a
resolution adopting a levy for taxes payable in 1997. If Council
adopts this resolution, the loan agreement would be discussed at
the August 26 Council meeting.
Councilwoman Jorgenson asked for what purpose the loans would be
used.
Mr. Fernelius stated that homeowners use the loans for replacing
roo£s, siding, windows, and other repairs and improvements to their
homes.
Councilman Schneider stated that the City is now involced in a
rehabilitation program. However, this would expand the program and
allow more persons to participate. One issue the City has
identified as a priority goal is programs to improve the housing
stock. The better people feel about their homes, the better it is
for the community. This seems to be a step in the right direction,
as the value of everyone's home will increase and offset the
dollars invested
Mr Pribyl stated that the levy is for the HRA but does require the
consent of the City Council.
MOTIOIQ by Councilman Schneider to adopt Resolution No. 58-1996.
Seconded by Councilwoman Jorgenson. Upon a roll call vote,
Councilman Schneider, Councilwoman Jorgenson, Councilman Billings
and Mayor Nee voted in favor of the motion and Mayor Nee declared
the motion carried unanimously.
13. INFORMAL STATUS REPORTS:
Mr. Pribyl, Acting City Manager,
informal status reports.
stated that there were no
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FRIDLEY CITY COUNCIL MEETING OF AUGUST 12, 1996 PAGE B
ADJOURNMENT:
MOTION by Councilwoman Jorgenson to ad�ourn 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 Crty Council of August 12, 1996 ad�ourned at
8.10 p.m
Respectfully submitted,
,��, �,�,_,%,��
Carole Haddad
Secretary to the City Council
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William J. Nee
Mayor