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08/22/2005 - 00026939CITY COUNCIL MEETING CITY OF FRIDLEY AUGUST 22, 2005 The City Council meeting for the City of Fridley was called to order by Mayor Lund at 7:30 p.m. PLEDGE OF ALLEGIANCE: Mayor Lund led the Council and audience in the Pledge of Allegiance to the flag. ROLL CALL: MEMBERS PRESENT: Mayor Lund Councilmember-at-Large Barnette Councilmember Billings Councilmember Wolfe Councilmember Bolkcom OTHERS PRESENT: William Burns, City Manager Fritz Knaak, City Attorney Scott Hickok, Community Development Director Richard Pribyl, Finance Director PROCLAMATION: • Patriot Day — September 11, 2005 Mayor Lund presented a proclamation declaring September 11 as Patriot Day to Malcolm Watson, the American Legion and VFW Chaplain. APPROVAL OF PROPOSED CONSENT AGENDA: Approval of Minutes • City Council meeting of August 8, 2005. APPROVED. NEW BUSINESS: 1. Receive the Minutes from the Planning Commission Meeting of August 3, 2005. RECEIVED. FRIDLEY CITY COUNCIL MEETING OF AUGUST 22, 2005 PAGE 2 2. Award the Design Contract for the 2006 Neighborhood Street Reconstruction Project to SEH, Inc. Dr. Burns, City Manager, stated staff recommends the contract be awarded to Short Elliot Hendrickson, Inc., of Minnetonka for an amount not to exceed $158,188. APPROVED. 3. Approve a Contract between the City of Fridley and SEH, Inc. to PerForm a Full Condition Evaluation of the City's Water Storage Facilities. Dr. Burns, City Manager, stated staff recommends that Council approve an agreement with Short Elliot Hendrickson, Inc., to provide for the inspection of our Highway 65 and Commons Park water storage facilities. The amount to perform the full condition evaluation of the three tanks is $9,750. APPROVED. 4. Claims (122810 — 123041). APPROVED. 5. Licenses. APPROVED AS SUBMITTED AND AS ON FILE. 6. Estimates. APPROVED. MOTION by Councilmember Barnette, seconded by Councilmember Wolfe, to approve the consent agenda as presented. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. ADOPTION OF AGENDA: MOTION by Councilmember Barnette, seconded by Councilmember Wolfe, to approve the agenda as presented. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. FRIDLEY CITY COUNCIL MEETING OF AUGUST 22, 2005 PAGE 3 OPEN FORUM (Visitors): Joan Olson, 6320 Van Buren Street NE, said she contacted Dr. Burns last week to ask what is considered a significant change to a master plan and how the Planning staff could consider the DeMello project assisted living. She also spoke to the Minnesota Department of Aging who informed her that unless a facility offers specific services, it cannot be considered assisted living. She believed that staff was misinformed or misunderstood DeMello's intention for the project recently approved. Dr. Burns agreed to look into her concerns and return her call but she did not hear from him. Councilmember Billings stated when he voted on the DeMello project, he did not believe it had anything to do with assisted living. Assisted living was only mentioned briefly by staff as a reference to parking stalls needed for the senior housing proposed. Mayor Lund assured Ms. Olson that she would receive an answer from City staff. Tom Myhra, 6360 Able Street NE, Chairman of the Concerned Citizens of Fridley, stated he believes that some of the projects approved by Council do not represent the interests of Fridley. PUBLIC HEARINGS: 7. Consideration of the Proposed Transfer of Control of the City of Fridley's Cable Television Franchise from Time Warner Cable to Comcast Cable Communications, LLC, and to Determine Whether the Proposed Transfer may have an Adverse Effect on Cable Television Subscribers. (Tabled August 8, 2005.) MOTION by Councilmember Bolkcom, seconded by Councilmember Wolfe, to remove this item from the table. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. Dr. Burns, City Manager, stated the City has made progress in their negotiations with Time Warner and are probably within 85 to 95% in agreement, particularly on the major items. They anticipate a final agreement being reached before the first Council meeting in September. Mr. Knaak, City Attorney, explained there are two areas where the City and Time Warner have agreed in principal but the final language needs to be determined. Mayor Lund added that there was some question on how the lack of a formal agreement between Time Warner and the City impacts the proposed transfer of the franchise to Comcast. FRIDLEY CITY COUNCIL MEETING OF AUGUST 22, 2005 PAGE 4 Mr. Knaak commented that if the City resolves the agreement with Time Warner before the transfer to Comcast that is all that would be required. The resolution before the Council addresses that issue. If there is an approval and agreement, then there is something to transfer to Comcast. If there is not an agreement, then there is nothing to transfer. The City ordinance requires Council to act within 30 days after the public hearing on this matter has been closed. Dr. Burns stated he wrote Council a memorandum explaining that there is a lot of interest among the citizens as they want to know what they will be getting from Comcast. Comcast has agreed to address such questions. Councilmember Bolkcom asked if Mr. Knaak has any additional information regarding those municipalities that have denied the transfer to Comcast. Mr. Knaak responded that in some of those cases, the transfer may have actually gone to court. Kim Roden, Vice President of Public Affairs for Time Warner, concurred with Dr. Burns and Mr. Knaak that the agreement between the City and Time Warner is nearing a final draft with the major issues resolved. She also contacted Comcast regarding the questions of Fridley residents. Because the closing of this deal probably will not take place until the end of the first quarter of 2006, it is difficult for Comcast to be too specific in responding to questions regarding operational issues. She did explain, however, that Comcast products and services are very similar to Time Warner's. It will be in Comcast's best interest to make the transfer as problem-free as possible. Dr. Burns questioned what will happen to those Fridley residents who currently have telephone service through Time Warner. Ms. Roden explained that Comcast plans to launch an internet voice-over protocol product by the end of this year so she would anticipate an easy transition from Time Warner to Comcast. The Time Warner engineers will become a part of the Comcast team and will be involved in the implementation. Councilmember Bolkcom questioned why the resolution is on the agenda tonight rather than the September 12 meeting at which time the franchise agreement should be finalized. Mr. Knaak offered to research the required timeframe prior to the resolution scheduled later on tonight's agenda. Joanne Zmuda, 6051 4t" Street NE, stated that according to the Star Tribune television listings, there are only four channels that Comcast does not carry that Time Warner does. Two of those channels she watches regularly. She referred to the franchise access fee and franchise fee reflected on her bill and asked where those funds go. FRIDLEY CITY COUNCIL MEETING OF AUGUST 22, 2005 PAGE 5 Councilmember Billings explained the franchise fee is 5% of the company charges which is a tax on the company. That money goes into the City's general fund. The access fee is an amount Time Warner has calculated as the cost to do the local origination and to make the studio building accessible for public access production. Under the franchise agreement being negotiated now he anticipates that fee will be $.45 per month per subscriber. As far as the channel line-up, if there are enough consumers interested in a specific channel, he believed Comcast will make that channel available for a fee. Mr. Knaak stated federal law requires 120 days from the time of application which would take us to October 15. So to take action at the September 12 meeting would meet the timeline requirements for the franchise transfer. MOTION by Councilmember Billings, seconded by Councilmember Bolkcom, to close the public hearing. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 8. Consideration of the Construction of Certain Improvements: Neighborhood Street Improvement Project No. ST. 2005 — 3: 73 '/2 Avenue Extension (Tabled August 8, 2005). MOTION by Councilmember Bolkcom, seconded by Councilmember Barnette, to remove item this from the table. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. Mr. Haukaas, Public Works Director, stated there is a development occurring in that area which includes the street extension and a new cul-de-sac. The existing cul-de-sac is within the City's three-year plan for reconstruction, but that has been moved up to have all the construction happen at one time. This public hearing is being held to initiate the assessment process. This project will remove the existing cul-de-sac, extend the street beyond it and construct the final cul-de-sac further to the west. For an assessment price, staff will use $17.00 a foot which is what is being used for the large street project this year. The actual construction of the cul-de-sac and the utilities extension are going to be born by the developer at a cost of close to $60,000. The other part of the street construction will be City cost through the street reconstruction fund. Councilmember Billings asked if the new development going in resulted in the measurements being shorter or longer than they would have been if the City had done the concrete curb in the existing cul-de-sac. FRIDLEY CITY COUNCIL MEETING OF AUGUST 22, 2005 PAGE 6 Mr. Haukaas said it would probably be shorter. Councilmember Billings added that the reason the City is removing the existing cul- de-sac now is it is not necessary to do it as a result of the construction down the street, but Councilmember Bolkcom requested that it be done at this time to disrupt the neighborhood once instead of twice. Mr. Haukaas also stated that from a maintenance standpoint, it does not make sense to have both cul-de-sacs. Councilmember Billings asked if the cost for the extension beyond the existing cul-de- sac will be born by the developer. Mr. Haukaas stated that is correct. Councilmember Barnette questioned if the driveways and landscaping affected by this road construction will be replaced by the City. Mr. Haukaas responded affirmatively. Councilmember Billings asked if there would be any advantage for the homeowners to vacate the right-of-way for the existing cul-de-sac. Mr. Haukaas responded the excess right-of-way should be vacated and this would be a City action at the City's expense. MOTION by Councilmember Billings, seconded by Councilmember Bolkcom to close the public hearing. UPON A UNANIMOUS VOICE VOTE, MAYOR LUND DECLARED THE MOTION CARRIED. 9. Consideration of an Ordinance to Amend the City Code of the City of Fridley, by Making a Change in Zoning Districts (Rezoning Request, ZOA #05-03, by JLT East River Road, LLC, to Rezone the Property from M-2, Heavy Industrial, to C-3, General Shopping, Generally Located at 5601 East River Road NE) (Ward 3). MOTION by Councilmember Bolkcom, seconded by Councilmember Wolfe, to waive the reading and open the public hearing. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. Mr. Hickok, Community Development Director, stated the petitioner is requesting this rezoning to market this site to commercial buyers. The petitioner is asking for the FRIDLEY CITY COUNCIL MEETING OF AUGUST 22, 2005 PAGE 7 rezoning at this time and when a specific user has been identified, they will come back before the Council for a second reading with site plan information and any other City requirements. The petitioner has asked for ample time between the first and second reading to negotiate with potential users and waives the State Statute 1599 requirements to allow them time to market the site. This property has been zoned M-2 since the late 1950's and was developed in 1969 when an office warehouse building was constructed. The existing building on this site is 450,000 square feet. In 1999, Tyro Industries purchased this property and was in business at this location until May, 2005. The property owners have had no success in attracting tenants to occupy the building. The owners believe this property would be much stronger as a commercial site. The building was built so industry specific that only a like industry would be able to make use of the building. The petitioner submitted a concept plan outlining what the City might expect if the existing building is demolished and the properties rezoned to commercial. The concept plan shows a single tenant building of 200,000 square feet and a multi-tenant building of 73,600 square feet. Mr. Hickok said in 1996, Council approved a rezoning request for Home Depot for the property located at 5650 Main Street. That property was rezoned from M-2 and C-2 to C-3 General Shopping. The Home Depot property is located directly east of petitioner's property and the C-3 zoning would simply be extended. The law gives the City authority to rezone property from one designated use to another as long as the zoning is in conformance with the Comprehensive Plan. The Comprehensive Plan's 2020 Land Use Plan designates this area as redevelopment district. Mr. Hickok explained that at the July 20 Planning Commission meeting, this rezoning request was tabled due to some concerns expressed by the attorney for Longview Fibre Company, the adjoining property owner. The two main issues were traffic and perceived incompatibility of uses. Since that meeting, the petitioner and Longview's attorney have met and as a result of that meeting, the following conditions for approval of this rezoning request were mutually agreed upon: 1) Implementation of a traffic management plan including any required infrastructure enhancements approved by the City and Longview Fibre (which approval will not be unreasonably withheld) to promote safe and adequate traffic flow and movements to and from the properties utilizing highway easement dated May 9, 1975, filed with the County of Anoka August 4, 1975 and no corresponding to the owner at 5158 East River Road NE for any required traffic improvements. 2) Longview Fibre, prior to final site plan approval, receiving written notice (at its plant, c/or Mr. Cornier, and to the attention of Joseph Finley, Esq. at Leonard Street) of all hearings, before the planning commission or the city council which involve any rezoning, comprehensive plan amendment, site plan approval, or platting of the JLT property. FRIDLEY CITY COUNCIL MEETING OF AUGUST 22, 2005 PAGE 8 3) Execution and recording by the petitioner of a Declaration of Covenants, within a reasonable time following second reading and final passage of the rezoning ordinance. Mr. Hickok explained that staff will include conditions #1 and #3 as stipulations on the proposed rezoning request and staff will use condition #2 as instruction to ensure that both Mr. Cornier at Longview Fibre Company and Joseph Finley at Leonard, Street and Deinerd, will be notified prior to final site plan approval. At the August 3 Planning Commission meeting, the public hearing was re-opened. The Planning Commission recommended approval of this rezoning with four stipulations. Staff recommends approval with the following four stipulations: 1) Petitioner shall comply with the State of Minnesota Rules, Chapter 4410 for environmental impact review. 2) Petitioner shall submit user-specific site plans, including appropriate drainage and landscaping details, prior to second reading of the rezoning ordinance. (Petitioner has waived 15.99 rights in order to comply with this stipulation.) 3) Implementation of a traffic management plan, including any required infrastructure enhancements, approved by the City and Longview Fibre (which approval will not be unreasonably withheld) that promotes safe and adequate traffic flow and movements to and from the properties utilizing the highway easement dated May 9, 1975, filed with the County of Anoka, August 4, 1975, as document No. 86767 and with no corresponding charge to the owner of 5851 East River Road NE for any required traffic improvements. 4) Execution and recording by the petitioner of a Declaration of Covenants, within a reasonable time following second reading and final passage of the rezoning ordinance. Councilmember Bolkcom stated this is not something the City has done in the past, to consider a rezoning petition without an actual use. She asked if this was something other cities have done and if the State statutes allow Council to handle rezonings in this manner. Mr. Hickok responded that from a rezoning perspective, this would be more of a zoning purist approach where you would seek uses after you have determined as a City that the zoning is much better defined under what is being requested. Determining the highest and best use of a property is typically the first step of the process and then a site plan might come forward. So although it is a bit unusual for Council to have this gap between the first and second readings, it provides the JLT group an opportunity to market the site. Mr. Knaak responded this is not only allowed by State statute, but is the primary procedure. FRIDLEY CITY COUNCIL MEETING OF AUGUST 22, 2005 PAGE 9 MOTION by Councilmember Bolkcom, seconded by Councilmember Wolfe, to accept into the record the Declaration of Covenants drafted by Leonard, Street and Deinerd. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. Councilmember Bolkcom questioned Stipulation #3, specifically the statement regarding no corresponding charge to the owner at 5851 East River Road. She did not believe the City could address this issue, as East River Road was a county road and the county can make traffic changes at any time. Mr. Hickok explained that the intent of the statement is that the new development will not cause Longview Fibre additional cost for traffic control efforts. Councilmember Bolkcom asked for clarification on the waiving the of 60-day requirement for action by Council. She also asked if there will be another public hearing when the petitioner returns with final plans. Mr. Hickok explained that by waiving the statutory requirements that the City act within 60 days, the petitioner is recognizing that the City will not and that their own inability to get Council the information required to act on this matter will keep them out longer. When the petitioner comes back, there will be a second public hearing held at that time which is contrary to statutory requirements. Notices will be sent out to adjoining property owners to notify them of the second public hearing so the public has an opportunity to review the final proposal. Councilmember Billings asked if anyone other than Longview Fibre appeared at the public hearing. He referred to the July 20 letter from Longview Fibre and the four points of concern and asked if traffic is typically considered as a part of the rezoning process. Mr. Hickok responded that Longview Fibre was the only neighbor present at the Planning Commission's public hearing on this matter. Staff will review the site plan prior to Council's review. Councilmember Billings also asked if it is typical for stipulations to give a neighbor veto power over the traffic patterns of petitioners. Mr. Hickok stated it is not typical. In his professional training, he learned that Council is in the position to make those decisions and the authority is not delegated to a neighboring property owner. Councilmember Billings stated that the letter submitted by Longview Fibre included a request that the City recognize the fact that this has been a 24-hour a day, 7-day a week operation, and that this be a condition of the rezoning of the JLT site that they can continue this schedule. He believed that this type of issue has never been a condition of approval for other rezonings. Another matter brought up by Longview is that they FRIDLEY CITY COUNCIL MEETING OF AUGUST 22, 2005 PAGE 10 may, at some point in the future, do an expansion to the north and that it be made a condition of JLT's approval that JLT will not object to Longview's expansion. He believed that this is another type of restriction the Council has never imposed on a petitioner. Another concern by Longview was the buffering between the two properties and he asked if this is something that is addressed in the landscape plans for the petitioner's site. Mr. Hickok responded the landscape plans would address the buffer issue. Councilmember Billings referred to the Declaration of Covenants, specifically the last "Whereas" which lists those things that JLT has agreed to in an effort to get Longview Fibre to not object to this rezoning. He asked the record to reflect that the receipt of the July 20 letter lays out what Longview Fibre's objections are. He acknowledged the fact that Longview Fibre has some concerns about what may or may not happen on the adjoining property and he believed those concerns can be addressed through the normal processes provided by the City. He said he also had a real objection to having a stipulation that allows the neighboring business to tell the petitioner (and all of their future tenants) that they can never object to smells and noises coming from the neighboring property. He believed that to be inappropriate. He stated he would not support approval of this rezoning with these covenants as a part of the stipulations. Further, he urged JLT not to enter into this Declaration of Covenants because one of the reasons they are doing so is to get consent from Longview and he does not believe they need Longview's approval. The petitioner needs City Council approval for this rezoning and Council will do so in the manner they are accustomed to doing it. Joseph Finley, representing Longview Fibre, stated he has been in the land use regulation industry for 25 years and believed the petition before the Council to be very unusual; where a petitioner "locks up in advance" a rezoning approval without telling how the property will be used or how traffic will be handled. Longview's objection initially was to the extremely odd procedural posture before the Planning Commission and City Council. Since they did not have a chance at the Planning Commission to make their objections because there were no plans to object to, they tried to put together a private agreement between the petitioner and Longview to give Longview the right to "raise their hand" again once a tenant has been identified. Longview is simply trying to preserve their rights while allowing the petitioner to go forward. He reviewed a plot plan reflecting the petitioner's property and Longview's property as well as the public right-of-way shared by both parties. This right-of-way is not a part of the City's street system. This right-of-way is the access for the significant truck traffic to and from Longview and a high traffic use on the petitioner's property would create difficulties for that truck traffic. JLT may have to grant more right-of-way because that access is the only way out for the Longview property. The private covenant was suggested by Longview after the Planning Commission suggested that JLT and Longview work together to come to an agreement which would allow JLT to go forward with the rezoning yet still protect Longview. The covenants were agreed to by JLT. JLT has voluntarily accepted this agreement in order to get rid of Longview's objections to the petition. If Council relieves JLT of the very thing they promised Longview, all they will FRIDLEY CITY COUNCIL MEETING OF AUGUST 22, 2005 PAGE 11 do is open up a hornet's nest because they will have to start over as if the Planning Commission hearings never happened. Councilmember Bolkcom stated part of her concern in including the declaration of covenants in the stipulations attached to the approval is that it holds the City liable to resolve any future issues between the petitioner and Longview. Mr. Finley responded that traffic, Longview's main concern, is a City issue. Councilmember Bolkcom pointed out that the City will have an opportunity to address such issues when the final plan comes back for approval. Mr. Finley explained again that Longview's main objection was that this rezoning request was not for a specific use which gave them no opportunity to address specific issues. Councilmember Billings commented that any time a property is rezoned to a commercial use, that use can change over the years and a variety of businesses could locate on that property. He also stated that redevelopment is occurring all over the metro area where specific uses are not always known in advance. He agreed that the traffic patterns in the right-of-way are something that needs to be addressed. City staff and the county engineers will be taking a look at what is happening in that right-of-way before any building permits are issued. What he really objected to was that the bulk of the agreement between Longview and JLT talks about locking in JLT and their tenants to never objecting to activities on the Longview site. If JLT wants to enter into such an agreement, that is up to them, but this City Council has always listened to the objections of the neighbors and tries to do what they can to mitigate their concerns. To make the declaration of covenants a stipulation and material to the approval of this rezoning is something he cannot do. Mayor Lund commented that by entering the Declaration of Covenants into the record, we are all coming to the same conclusion. He asked Mr. Knaak to comment. Mr. Knaak, City Attorney, stated he was a little taken aback by the characterization of what is really a very typical zoning process as odd or unconventional. It may seem a little strange from the perspective of development practice, and in that respect the City does follow a fairly common practice when someone wants to redevelop property using the zoning process as leverage. What can be covenanted between the parties is allowed. He believed Councilmember Billings' objection is whether or not the City may be getting involved in a different kind of problem, which is taking governmental action which precludes someone from raising even a first amendment objection down the line. Parties can covenant to that. Cities cannot require it. Mr. Finley explained there is a misunderstanding. The only thing they are asking the City to do is to require the recording of the covenants. It is a totally private agreement. The only party who benefits is Longview Fibre. The only party that can bring an FRIDLEY CITY COUNCIL MEETING OF AUGUST 22, 2005 PAGE 12 enforcement action is Longview Fibre. There is nothing that binds the City to do anything other than to say that as a condition of the second reading, the covenants will be recorded. Mr. Knaak stated if at some point in the future an issue arises, the concern is the City would be sued. Mr. Finley disagreed stating there is no requirement of JLT to observe the covenants. The City is making no requirement that JLT observe the covenants but is simply requiring that there be a private constitution between the two owners so that Longview has the right to sue JLT if the covenants are breached. The City approves condominium association documents all the time. Mayor Lund stated entering the Declaration of Covenants into the record should address Longview's concerns. Jay Lindgren, representing the petitioner, JLT, stated JLT has a very narrow use of industrial property right now with a site designed for a very specific industry. They would be very happy to have an ongoing industrial site, but it is their judgment that they will be unable to fill that site and have it as a viable location. They believe their request is reasonable as it is supported by the Comprehensive Plan and is within the redevelopment area. They voluntarily entered into the agreement with Longview and support the stipulations. The representatives of Longview Fibre and JLT have had a cooperative, cordial discussion and are interested in being good neighbors. But it is an important distinction that there will be an additional public hearing. He agreed that the traffic management plan is a valid concern for Longview as their only access is through the right-of-way owned by JLT. His intention in crafting the stipulation was that Longview would have no liability for any of the traffic improvements the City may impose as a part of final site plan approval. Councilmember Bolkcom believed that Stipulations 3 and 4 were not very clear and there will be a lot more discussion regarding traffic once the petitioner has identified a tenant. Mr. Lindgren suggested one possible fix would be to add "for the corresponding site plan" to the end of Stipulation #3 to make it clear that it refers to only the traffic improvements required because of the activity on the JLT site. Councilmember Bolkcom questioned if Mr. Lindgren was concerned about the limitations placed on JLT and their tenants by the declaration of covenants. Mr. Lindgren responded that like any property owner, JLT would like to have as few restrictions on their property as possible. They made a reasonable judgment that these were covenant restrictions they could live with. FRIDLEY CITY COUNCIL MEETING OF AUGUST 22, 2005 PAGE 13 Mr. Knaak stated if a property owner is willing to accept those kinds of restrictions, anybody buying the property after them would know those restrictions were there and would be assuming those restrictions. It raises an interesting question in terms of having that be part of the record and what that might mean somewhere down the line. Mayor Lund commented he is not concerned as long as both parties have agreed and as long as it does not restrict Council. Mr. Knaak responded it has more to do with what the parties involved can do to each other. If someone raises an objection, it might be a violation of the covenant, but that does not restrict the City from enforcing its ordinances. Mr. Lindgren stated it is his opinion that this is an agreement between two parties. His client would not be entering into this agreement if he were not coming before the City for the rezoning. The agreement is driven by the rezoning process, but he did not believe it was unreasonable for his client to come to the conclusion that they want to enter into this agreement in part because they are asking for a process that has site plan review coming later than it normally would. He would rather they go forward with the process having worked out an issue with their neighbor knowing there will not be a series of disagreements in the future. Councilmember Billings commented that whether or not the City's approval includes a stipulation that this Declaration of Covenants be recorded, if the parties want to enter into such an agreement that is between those two parties and does not have to be one of the City's stipulations. He did not want to tie this rezoning to the fact that they may or may not agree with one another and cannot object to what Longview Fibre does in the future, and make that a condition of the rezoning. He does not want to make it a part of the City's process to tie the hands of future tenants and owners on a subject that is unrelated to the traffic issues. Councilmember Barnette agreed with Councilmember Billings. Pam Reynolds, 1241 Norton Avenue, stated she has no problem with redevelopment but the City ordinance has a complete list of things that must be provided with a rezoning request; including a site plan and other appropriate drawings. All of that is being circumvented. She stated her issue is that the process be maintained and that Council not set a new precedent on rezonings. Councilmember Billings asked if the petitioner has agreed to submit all required documents prior to second reading. Mr. Hickok responded affirmatively and all those items will be reviewed prior to second reading. He added just north of this site there is a single family residential area where the R-3 zoning was changed by the City to R-1 to have more control over what happened on the site. There was no site plan or grading and drainage plan submitted. FRIDLEY CITY COUNCIL MEETING OF AUGUST 22, 2005 PAGE 14 Mayor Lund asked Mr. Knaak to comment on Ms. Reynolds' concern over setting a precedent by approving this rezoning. Mr. Knaak said the statute does not have any requirements that there be a specific plan for rezonings and there are many cases why that would be a dangerous path to take. This is a routine practice when rezoning as a part of redevelopment. Mr. Hickok commented that this petition is not really departing that far from the application guidelines for a rezoning as Council will not be acting on this matter as a formal rezoning until all the required information has been submitted. Tom Myhra, 6360 Able Street NE, stated one of the things the Concerned Citizens of Fridley is concerned about is City staff helping developers. He did not believe it to be the job of the City Council to make it possible for this petitioner to make more money off his property by rezoning it because he made a bad buy. He asked if there is going to be housing included in this proposal. Mayor Lund responded this is strictly for commercial development and no housing is proposed. Mr. Myhra asked when the site proposal will come before the Council. Mayor Lund stated the second reading and another public hearing will not occur until the petitioner finds a tenant for the site. At that time, Council still has the option of approving or denying the request. Councilmember Billings explained that the tenant on the petitioner's site was a large national company that went bankrupt. The bankruptcy court looked for a new tenant for many months and could not find anyone. There are a number of manufacturing sites throughout the country that are standing empty. When they stand empty not only is there no revenue for the owner, but the owner comes to the county and claims a lesser value because he no longer has a tenant. This impacts the county, the school district and the city because they lose significant tax revenues. So, there is some financial incentive for the City to do their best to make sure properties are able to be occupied. In this instance, the property owner does not want to solicit a tenant to invest thousands of dollars to develop a site plan and then request rezoning. This petitioner is saying commercial uses are the best uses for this property and wants to be able to tell prospective tenants that the City has shown a willingness to rezone the property to commercial. At the same time, if an industrial user came along who wants to utilize the building, the owner will work with that party. Mr. Myhra objected to this proposal and to the City Planning staff spending time helping developers. Joe Meyer, JLT Group, stated JLT purchased the building from Tyro Industries which then leased it back from them on a 10-year lease. Tyro Industries has since gone FRIDLEY CITY COUNCIL MEETING OF AUGUST 22, 2005 PAGE 15 bankrupt and replacement tenants or buyers were sought but failed. They are looking for the highest and best use of the property, a use that will offer a return on their investment, help the property tax values, and create jobs on the site. Councilmember Bolkcom asked if Mr. Lindgren would work with City staff and representatives from Longview Fibre to reword the stipulation regarding the traffic easement. She suggested the addition of another stipulation that the petitioner has agreed to a second public hearing before Council. Mr. Lindgren responded he would be happy to do so. He added that another way would be to come to a private arrangement on the covenants that would only become effective upon a rezoning. They will work further on that and convey that information to Mr. Hickok. Councilmember Billings said between now and the first reading at the September 12 Council meeting, he would like Mr. Lindgren and JLT to determine how long a time period they believe will be necessary between the first and second readings. Typically there is a one-year limitation for such things as a special use permit. He will propose a stipulation that will impose some timeframe. MOTION by Councilmember Bolkcom, seconded by Councilmember Billings, to close the public hearing. UPON A UNANIMOUS VOICE VOTE, MAYOR LUND DECLARED THE MOTION CARRIED. OLD BUSINESS: 10. Preliminary Plat Request, PS #05-05, by BAE Systems (formerly United Defense) to Replat their Property, Generally Located at 4800 East River Road NE (Tabled July 25, 2005). (Ward 3) MOTION by Councilmember Wolfe, seconded by Councilmember Bolkcom, to remove this matter from the table. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. Mr. Hickok, Community Development Director, stated at the last Council meeting, there was a request by Council that staff talk the Anoka County Attorney's office regarding additional stipulations if the property should become the County's responsibility in the future. Mr. Knaak and the Anoka County attorney met and there was a determination that no additional stipulations were needed, because in the agreement relative to superfund law the property owners are responsible in perpetuity for the contaminated portion of the site. In the event of a foreclosure, that property does not become the responsibility of the City or the County. There are serious implications to BAE or those who contaminated the site if they do not manage the property in perpetuity. The owners FRIDLEY CITY COUNCIL MEETING OF AUGUST 22, 2005 PAGE 16 of the property, BAE, want to continue to be the good neighbors that they have always been and they have no intention of ever leaving the City with a dilemma. Staff recommends approval of the plat before Council this evening and the stipulations prepared by staff. MOTION by Councilmember Bolkcom, seconded by Councilmember Wolfe, to approve PS #05-05 with the following stipulation: 1. Petitioner may not sell Lot 1 or Lot 2 independently without meeting the requirements of the 2003 State Building Code, Reference Section 1305.0507.4.1, Property Lines. UPON A VOICE VOTE, MAYOR LUND, COUNCILMEMBER BARNETTE, COUNCILMEMBER WOLFE AND COUNCILMEMBER BOLKCOM VOTING AYE AND COUNCILMEMBER BILLINGS VOTING NAY, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. NEW BUSINESS: 11. Resolution Ordering Final Plans and Specifications and Estimates of Costs Thereof; Neighborhood Street Improvement Project No. ST. 2005-3. Mr. Haukaas, Public Works Director, explained this is part of the 429 assessment process. First the final plans and specifications must be ordered which staff has repaired and then Council needs to receive them in order to advertise for the bids. Since this is such a small project, there is only one step. At this point, they have an estimate of costs and are requesting Council's approval. Staff wants to advertise this so there is an opportunity to construct this yet this fall. The one step that is missing is the final plat approval. Those documents are currently at the County level awaiting their final stamp of approval. Staff will not bring back the actual award until Council has approved the final plat. MOTION by Councilmember Wolfe, seconded by Councilmember Bolkcom, to adopt Resolution No. 2005-36. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 12. Resolution Receiving Final Plans and Specifications and Ordering Advertisement for Bids; Neighborhood Street Improvement Project No. ST 2005-3. MOTION by Councilmember Wolfe, seconded by Councilmember Bolkcom, to adopt Resolution No. 2005-37. FRIDLEY CITY COUNCIL MEETING OF AUGUST 22, 2005 PAGE 17 UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 13. Resolution Certifying Proposed Tax Levy Requirements for 2006 to the County of Anoka. Mr. Pribyl, Finance Director, stated the drafting process has been completed and this is the proposed levy that is an intricate part of the budget. This proposed levy complies with state law and City Charter requirements regarding inflationary increases related to the 2006 budget. The total proposed levy for 2006 is $8,757,188. This includes the $293,664 in lost Local Governmental Aid and the $169,683 which is the general obligation debt for the 2005 street project. This amount is 8.5% higher than 2005. Inflationary increases associated with the levy increase is 2.8%. This is a proposed levy and is required to be to the county by September 15. As a proposed levy, it cannot be exceeded. When a final levy is certified to the County in December, the budget is actually approved and the total can be reduced at that time. Staff's recommendation is to approve the resolution certifying the proposed tax levy requirements for 2006. Councilmember Barnette asked about the market referendum based levy of $282,700, which he presumed was the 2.8% increase. The referendum itself, however, specifically stated $275,000. Mr. Pribyl responded the market based is in regards to Springbrook and we take that levy and increase it by the inflationary amount of 2.8%, the referendum allowed for the inflationary increase. Councilmember Billings added that if at some point in time Council decides to levy less for Springbrook that is the figure the percentage of increase would be applied to. MOTION by Councilmember Barnette, seconded by Councilmember Bolkcom, to adopt Resolution No. 2005-38. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 14. Resolution adopting the proposed budget for the fiscal year 2006. Mr. Pribyl stated this resolution will adopt the City's budget for the fiscal year 2006 which must be before the County Auditor by September 15. The City has complied with Section 705 of the City Charter requiring that it be the principal item of business at the last regular meeting of August. For 2006, the economy played a key role in developing department budgets that continue to allow the City to provide the same level of service as provided in the current year's budget. One of the major issues the City had to deal with was Local Governmental Aid which amounted to $293,654 for 2006. This amount is allowed to be shifted from intergovernmental revenue to the tax levy so the budget includes that. The 2006 budget is being presented this evening along with a resolution FRIDLEY CITY COUNCIL MEETING OF AUGUST 22, 2005 PAGE 18 to approve it as the proposed budget for 2006. The City Manager will provide an in- depth overview of the 2006 budget at the December 5 Council meeting in the form of a public hearing. The remaining steps in the budgeting process include: December 5 public hearing, the resolution approving the final tax levies on December 5, and the resolution approving the final budget on December 5. Should public hearing need to be continued, it would be held on December 13 as required. He then provided an overview of the 2006 budget. Staff recommends approval of this resolution. Dr. Burns added that there will be another budget work session for Council on October 17. Councilmember Barnette asked if there is any indication what the property tax increase will be for next year. Mr. Pribyl responded that all things being equal, with the 8% increase in the levy, the property tax increase would be about 8%, but there is another change in the class rate dealing with low income apartments which will result in another shift in the tax burden. He spoke to the County last week trying to calculate an estimate on the average home. The valuation on the average home has increased from $187,900 which was still within limited market value. Now it passes outside of limited market value to $214,000 which will impact taxes. Councilmember Bolkcom questioned the difference between the budget resolution passed out this evening and the one included in the Council packet. Mr. Pribyl explained that the resolution passed out this evening was changed to reflect the correct public hearing date of December 5, 2005. MOTION by Councilmember Barnette, seconded by Councilmember Bolkcom, to adopt Resolution No. 2005-39 as corrected. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 15. Resolution of the City of Fridley, Minnesota, Approving the Transfer of the Current Cable Television Franchise from Time Warner to Comcast. MOTION by Councilmember Bolkcom, seconded by Councilmember Wolfe, to table this resolution until the September 12 City Council meeting. Councilmember Billings asked why this matter was being tabled. Councilmember Bolkcom said the City is close to having a franchise agreement with Time Warner, perhaps as early as this week. She felt more comfortable having the final franchise agreement in place prior to approving the resolution to transfer the franchise. FRIDLEY CITY COUNCIL MEETING OF AUGUST 22, 2005 PAGE 19 Councilmember Billings stated the resolution before Council addresses whether or not Comcast Cable meets the legal, technical and financial qualifications to assume whatever franchise agreement may be in place between the City and Time Warner. Approving the resolution indicates that the City is approving the transfer of that cable franchise agreement and provides for the fact that if there is no agreement in place, this is expressly conditioned upon the formalization and approval of that agreement. He said he did not believe there is anything to be gained by tabling this matter for two weeks. He had not heard anything in the presentation of the information that would lead him to believe that there are any legal, technical or financial qualifications that would preclude Council from allowing Comcast to take over Time Warner's position. Councilmember Bolkcom stated there have been other cities concerned with their franchise agreements and she did not believe it created any difficulties to table the matter for two weeks. Emmett Coleman, Area Director of Government Affairs for Comcast, stated it is his understanding that Dr. Burns and Mr. Knaak had discussions on Friday afternoon to draft this resolution so that it would stand on its own merits outside of the negotiation process. The negotiation process is moving very smoothly and does not impact the resolution. He offered to address any specific concerns Council may have. UPON A VOICE VOTE, COUNCILMEMBER BOLKCOM VOTING AYE, AND MAYOR LUND, COUNCILMEMBER BARNETTE, COUNCILMEMBER BILLINGS AND COUNCILMEMBER WOLFE VOTING NAY, MAYOR LUND DECLARED THE MOTION FAILED TO CARRY. MOTION by Councilmember Barnette, seconded by Councilmember Wolfe, to Adopt Resolution No. 2005-40. UPON A VOICE VOTE, MAYOR LUND, COUNCILMEMBER BARNETTE, COUNCILMEMBER BILLINGS AND COUNCILMEMBER WOLFE VOTING AYE, AND COUNCILMEMBER BOLKCOM VOTING NAY, MAYOR LUND DECLARED THE MOTION CARRIED ON A FOUR TO ONE VOTE. 16. Informal Status Reports Councilmember Bolkcom stated there will be a free art event at Banfill-Locke Center on September 11 from 11:00 a.m. to 5:00 p.m. Mayor Lund said there will be a commemorative ceremony held September 11 at 7:00 p.m. at the Spring Lake Park High School. FRIDLEY CITY COUNCIL MEETING OF AUGUST 22, 2005 PAGE 20 ADJOURN: MOTION by Councilmember Barnette, seconded by Councilmember Wolfe, to adjourn. UPON A UNANIMOUS VOICE VOTE, MAYOR LUND DECLARED THE MEETING ADJOURNED. Respectfully submitted by, Rebecca Brazys Recording Secretary ������ Scott J. Lund Mayor