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02/26/2007 - 00028985CITY COUNCIL MEETING CITY OF FRIDLEY FEBRUARY 26, 2007 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 Saefke Councilmember Varichak Councilmember Bolkcom OTHERS PRESENT: William Burns, City Manager Scott Hickok, Community Development Director Jon Haukaas, Public Works Director Julie Jones, Planning Coordinator Fritz Knaak, City Attorney PUBLIC SERVICE ANNOUNCEMENT: Julie Jones, Planning Coordinator, shared information about the Complaint Tracking System (CTS). Staff is able to create packets, such as year-end reports, in an efficient manner with the use of the CTS. The department receives various types of complaints such as the condition of a neighbor's e�terior yard, use of property, commercial and industrial cases, etc. All complaints usually start with a phone call from the resident but at times staff inembers from other departments may file a report. Planning staff also create cases when they are out doing inspections and see problems. This summer the department will have a summer intern to help. Ms. Jones discussed the system. She said all complaints are anonymous, but if the person filing the complaint wants to be called with follow-up information, there is a way to enter that information. An exact address is needed to file the complaint and for staff to follow up. It is very easy to get a list and history of inspected properties. When the cases are entered, the system automatically generates a letter to the resident and assigns the case to a staff person. This system will help to keep track and follow up on the property. This system makes it easy to track the complaint from beginning to close. If the property goes into an abatement or citation process, the CTS will generate the necessary paperwork. Less than 7% of the cases last year went to this level. Ms. Jones said Council can access this information from the internet and would be able to respond to complaints if one has already been filed. The system is working well. Staff is looking into electronically entering the information from the field rather than hand writing it. FRIDLEY CITY COUNCIL MEETING OF FEBRUARY 26, 2007 PAGE 2 Councilmember Bolkcom stated that code enforcement is very important to her and the issue came up during her campaign. The program is working great and being able to go on the internet to look up properties will help. This new program is working much better than the last program. The summer intern will help. E�terior maintenance of property is a huge issue all over. How people maintain their property can reflect the look of the entire neighborhood. This new program should help address issues in an efficient manner. She asked how staff could give a follow-up call on an anonymous call. Ms. Jones replied that not all complaints are anonymous. If a person wants an update, staff can check a box and view the information. Councilmember Barnette stated that comments are received regarding junk in the yard etc. but the general appearance seems to be an issue many times. He asked if there were limits as to what was acceptable. Councilmember Bolkcom answered that there is an e�terior maintenance code that would deal with peeling paint and broken windows. Councilmember Barnette questioned if the siding or gutters were loose was there anything the City could do to have the resident fix those things. Ms. Jones answered that there was a code for basic maintenance staff could enforce, but the condition needed to be pretty severe. Councilmember Barnette asked if there was anything staff could do to enforce the e�terior problems of homes. Councilmember Bolkcom stated that many cities have an e�terior maintenance code they can enforce. Fridley does not have this policy but it may be something worth looking into and adopting in the future. Scott Hickok, Community Development Director, stated that a housing maintenance code has been talked about in the past but currently Fridley does not have one. Mayor Lund thanked Ms. Jones for the useful information. Jon Haukaas, Public Works Director, presented the annual review of the Storm Water Program and National Pollution Discharge Elimination System (NPDES). He reviewed the applicable codes the EPA has set in place and certain rules for storm water management. The State has developed some guidelines and passed them on to the City. The basics of the plan are six minimum control measures; public outreach and education, public involvement and participation, elimination of discharge, detection and elimination, construction site run off control, and pollution prevention and good house keeping for our municipal operations. Mr. Haukaas stated that this is the fourth year the City has been under the NPDES permit. There have been very few additional programs that needed to be implemented over the years. FRIDLEY CITY COUNCIL MEETING OF FEBRUARY 26, 2007 PAGE 3 This has really been a formalization of what the City has been doing all along. Citizens can look into this in more detail by emailing Mr. Haukaas or calling the Public Works Department. Mr. Haukaas stated that there was an endangered wetland video produced in 2004 that has been playing on the cable channel. This was done at the Springbrook Nature Center. Springbrook Nature Center has been doing workshops about clean water and has offered educational series to the public. Inlet stenciling has also been done to the catch basins on the streets. They are stenciled with "No Dumping" etc. to try and get the message to residents. Everything that goes into the street does affect the lakes and streams. Mr. Haukaas stated with the public participation and involvement, rain garden planting was offered last year in Jay Park The wetland curriculum at Springbrook Nature Center is a continuing program for third and eighth graders from the Fridley School District to learn about wetlands. The entire city map with the storm sewers is continually updated. Elective discharge ordinance clarification was done last year regarding dumping of hazardous materials so it can be enforced under the public nuisance process. Construction runoff and post construction storm water management are under the ordinance for what developments are required to do as far as storm water rules. Some simple handouts are available that summarize the ordinances. Staff will work with the contractors as they go through the developments. The pollution prevention and good housekeeping for the City is cleaning the storm sections and installing devices to capture sediment before it goes into our lakes and streams. Street sweeping starts in the spring. One major round is contracted out in the spring and the sweeping is continued throughout the summer, usually doing about five rounds, with the last one in the fall collecting mostly leaves. The contractor can be complete the city in 1'/z to 2 weeks, but it usually takes 6 to 8 weeks for us to complete a round. The "Your Eco Home" show is a cable show that is done by the Community Development staff.. Additional websites are available to residents for resources and ideas. Councilmember Bolkcom asked if the websites referenced examples such as what happens when you blow your leaves into the street. Mr. Haukaas said that leaves and grass clippings that are in the street go directly into the lakes and streams. Ideas for commercial properties and homeowners can be found on the websites. Councilmember Bolkcom asked if funds or designs were available for people who would like to put in a rain garden. Mr. Haukaas stated that the best source for rain gardens would be the watershed districts such as the Rice Creek Watershed District. They have a lot of information out on their website. Fridley does not have funding available for people creating water gardens but there may be other sources. Councilmember Bolkcom stated that she understood the Rick Creek Watershed District had funding available for rain gardens and they would come out to educate those interested in creating rain garden. FRIDLEY CITY COUNCIL MEETING OF FEBRUARY 26, 2007 PAGE 4 APPROVAL OF PROPOSED CONSENT AGENDA: APPROVAL OF MINUTES: City Council Meeting of February 12, 2007. APPROVED. OLD BUSINESS: 1. Second Reading of an Ordinance Amending Chapters 11 and 108 of the Fridley City Code Pertaining to Fees and Open Burning; and Adopt Official Title and Summary Ordinance (Tabled February 12, 2007). William Burns, City Manager, stated that this item was tabled at the February 12 City Council meeting by Councilmember Bolkcom. Since then, the language has been changed regarding the allowed times for recreational fires. The original language in Section 12A prohibited them between 1:00 a.m. and 9:00 a.m. The revised language prohibits them between 12:00 Midnight and 9:00 a.m. Staff recommends Council's approval of the second reading of the ordinance and the official title and summary ordinance. THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA AND PLACED ON THE REGULAR AGENDA. 2. Receive Bids and Award Contract for the 2007 Street Improvement Project No. ST. 2007 — 1. William Burns, City Manager, stated nine bids were opened on February 22. The low bidder was Forest Lake Contracting, Inc., of Forest Lake, Minnesota. The bid was $2,429.062.50. This compares with an estimated project cost of $3.2 million. Local funding for the project will include approximately $600,000 in property assessments, $225,000 in utility transfers, and $1,250,000 in general obligation bond revenues. The project area includes the southwest section of Melody Manor and a larger area east of University Avenue and south of 63rd Avenue. Staff recommends Council's approval. RECEIVED BIDS AND AWARDED CONTRACT FOR STREET IMPROVEMENT PROJECT NO. ST. 2007-1 TO FOREST LAKE CONTRACTING, INC. IN THE AMOUNT OF $2,429,062.50. 3. Appointment - City Employee. William Burns, City Manager, stated that staff recommends the appointment of Jeff Guest to the Sergeant's position recently vacated by Greg Salo. Jeff has been an officer with the Fridley Police Department since December 4, 2000, and has served with distinction. Staff recommends Council's concurrence in his appointment as Sergeant. APPROVED. FRIDLEY CITY COUNCIL MEETING OF FEBRUARY 26, 2007 PAGE 5 4. Claims (130606-130773). APPROVED. 5. Licenses. APPROVED THE LICENSES AS SUBMITTED AND AS ON FILE. Councilmember Bolkcom asked for clarification of the addendums on the project bid. Mr. Haukaas replied that when a bid package is put out, sometimes something may need to be changed and an addendum is sent out to all of the contractors who received the packet. The contractors are required to acknowledge they received the addendum when submitting their final bid. This way staff knows the contractors are all bidding on the same package. In this case there were three small addendums between the time the bidding was posted and the time the bidding was opened. Councilmember Bolkcom asked if staff was comfortable that Forest Lake Construction had the people and resources to respond to this large project. Mr. Haukaas answered that staff was excited to have Forest Lake Construction back, as they have done a few projects in the past and have done a great job. Councilmember Varichak asked for Item 1 to be removed from the Consent Agenda. Attorney Knaak stated that there was a typo on Item 12. It should read 8.07 not 8.31. MOTION by Councilmember Barnette to approve the consent agenda with the removal of Item 1. Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE PUBLIC HEARING OPENED AT 8:22 P.M. ADOPTION OF AGENDA MOTION by Councilmember Bolkcom to approve the consent agenda with the addition of Item 1 and the correction of Item 12. Seconded by Councilmember Varichak. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. OPEN FORUM (VISITORS): 6. Consider Revocation of Special Use Permit SP# 06-08, for Sinclair Fridley, Generally Located at 6071 University Avenue N.E. (Ward 1) (Continued November 20, 2006) FRIDLEY CITY COUNCIL MEETING OF FEBRUARY 26, 2007 PAGE 6 MOTION by Councilmember Saefke to remove this item from the table. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED AND THE PUBLIC HEARING WAS OPENED AT 8:05 P.M. Scott Hickok, Community Development Director, stated this item relates to the property located at 6071 University Avenue NE. In November, the City Council discussed the Sinclair Station and the stipulations that were placed on the special use permit. The property owner must abide by all of the stipulations to keep the special use permit intact. At any point, Council can recall a special use permit and can revoke a special use permit if they choose to do so. Council can also modify the permit or they can check and make sure the special use permit and stipulations are being observed. Mr. Hickok stated that tonight is a"check in" point on the special use permit. Staff is not recommending revocation at this time. At the first of the year, new tenants came to this location. Council continued the public hearing to this date so the new tenants had a chance to run the operation. There have been observations by staff and some minor inconsistencies, but no complaints from citizens. Staff is optimistic that the new owners are working to abide by the special use permit. At this time, other than staff working through some of the rough spots on some stipulations, there is no recommendation for revocation. Staff will bring this item back if any future issues arise. MOTION by Councilmember Saefke to close the public hearing. Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE PUBLIC HEARING CLOSED AT 8:10 P.M. 7. Consider the Building Located at 136 Horizon Circle Hazardous and Order its Removal or Repair Pursuant to Minnesota Statues, Section 463 (Ward 3) (Continued January 8, 2007). MOTION by Councilmember Bolkcom to remove this item from the table. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED AND THE PUBLIC HEARING OPENED AT 8:11 P.M. Scott Hickok, Community Development Director, said the property at 136 Horizon Circle had a crumbling foundation. Staff concluded the investigation and asked Council to deem this building hazardous on December 11, 2006. New owners came forward and decided to demolish the home. The new owners had several contractors look at the property, and all experts came to the same conclusion that the foundation was beyond repair and the best result was to remove the house and foundation. After the house has been demolished, the owners will decide if they will maintain the lot or build a new home on the property. Once the home has been torn down, the FRIDLEY CITY COUNCIL MEETING OF FEBRUARY 26, 2007 PAGE 7 foundation hole is filled and turf is established, the time clock for correction on the hazardous condition will stop. The owner is not required to build a home on the property but is required to maintain the site. The owner has to complete all necessary work by May 4, 2007. Staff recommends closing the public hearing and continuing the resolution until May 7, 2007. It would be the homeowners' responsibility to secure and maintain the property until that time. Mayor Lund asked if it would be better to continue the public hearing until May 7. Fritz Knaak, City Attorney, stated that as far as legal action goes, it would not start until the resolution is passed. Councilmember Bolkcom preferred to close the public hearing and adopt the resolution at the May 7 City Council meeting. Attorney Knaak stated that if the public hearing were left open, it would leave more flexibility for the owners but it is not necessary. From a legal point of view, what matters is passing the resolution. Councilmember Bolkcom stated that she was concerned this could be dragged out if we did not close the public hearing. Councilmember Barnette agreed with Councilmember Bolkcom. MOTION by Councilmember Bolkcom to close the public hearing. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE PUBLIC HEARING CLOSED AT 8:20 P.M. Councilmember Saefke said the previous owners were listed in the resolution and that would need to be corrected. Mr. Hickok said the new owners will be listed in the resolution. 8. Consider the Creation of TIF District No. 19 (Industrial Equities Project Generally Located at 5110 Main Street N.E.) (Ward 3). MOTION by Councilmember Bolkcom to waive the reading of the public hearing notice and open the public hearing. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE PUBLIC HEARING OPENED AT 8:22 P.M. Paul Bolin, HRA Assistant Executive Director, stated that John Allen of Industrial Equities is planning to redevelop the property located at 5110 Main Street. Mr. Allen is proposing 202,000 square feet of new office and warehouse space. There are high costs anticipated for demolition FRIDLEY CITY COUNCIL MEETING OF FEBRUARY 26, 2007 PAGE 8 and soil corrections. After the 1965 tornado, the previous owners dug a trench and buried debris into the trench. Also, there is an old railroad spur that will need to be removed. Mr. Allen is seeking $1.5 million in pay-as-you-go financing and assistance. The entire site is over 12 acres. Mr. Bolin stated that the $1.5 million in assistance that Mr. Allen is seeking from the HRA makes the site cost competitive with outlying suburbs. The amount is really the difference between this site and a vacant site in an outlying suburb. Redevelopment would not be feasible without this assistance. Industrial Equities plans to clean up the site, demolish the existing building, eliminate outdoor storage problems, remove debris, and provide a project worth over $10 million. This will also provide 100 jobs based on the size of the building. Mr. Bolin stated that the HRA approved a resolution to create TIF District 19 on February 1, 2007. Staff recommends Council's approval. MOTION by Councilmember Bolkcom to move a 63 page memorandum from Krass Monroe dated February 19, 2007, into the record. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. Councilmember Bolkcom asked Mr. Bolin to explain TIF districts. Mr. Bolin replied that currently this site generates taxes based on the value of $2.0 million to $2.5 million. Through this redevelopment project, we will see the value increase to $10 million. Mr. Allen will continue to pay taxes on the current value of the property until the loan is paid off. The pay-off of the loan should occur in approximately 15 to 16 years. The school district, county and city will continue to receive taxes during this time on the current value of the property. Once the TIF is paid off, Mr. Allen will pay taxes on the new value of the property which should be around $10 million. Councilmember Barnette stated that the owner will continue to pay the taxes they are paying now. Councilmember Bolkcom asked about the comment from Anoka County and the notice of intent. Mr. Bolin replied that he attended the Anoka County Board meeting the first week of February and gave a verbal presentation of the project. The County Board had no comments or questions on the project. A letter was received stating that they did not have any objections with this project moving forward. Councilmember Bolkcom asked if this district would take away from other districts the City has. She asked how it related to the Comprehensive Plan. Mr. Bolin answered that this would not take away from any other district. The Comprehensive Plan is a very broad statement. As part of the TIF 19 creation, there is an overall TIF plan in the FRIDLEY CITY COUNCIL MEETING OF FEBRUARY 26, 2007 PAGE 9 resolution that incorporated TIF 19. It also states that the redevelopment project in this area is not inconsistent with the City's overall Comprehensive Plan. From the 1998 to 2000 time frame when the existing Comprehensive Plan was created, this area of the city was looked at for redevelopment and this project would be consistent with the Comprehensive Plan. Councilmember Bolkcom stated this is a great project and will create 100 new jobs. This project is also in line with the comprehensive plan. John Allen, Industrial Equities, stated that his company has redeveloped about 3.0 million square feet in the metro area. Cities ask his company to take on contaminated sites that are blighted and need to be demolished and redeveloped. Industrial Equities is a respectful business. Industrial Equities likes the location of this site and believes that Fridley is the center point of the metro area. They are excited to come back and develop a site in Fridley. Industrial Equities is a long-term investor and does not redevelop the property to resell it. The new site will be great for the City and the $1.5 million TIF assistance will help clean up the site. Of the properties that Industrial Equities has developed, this is one of the worst sites they have worked with, and the funds will give protection if other problems arise. It will be successful and create jobs for the City. A1 Stahlberg, 8055 Riverview Terrace, was opposed to creating another tax increment district. He does not think we need to give away money to have people develop in Fridley. We have put out for Medtronic and do not need to do this again. He does not think we should have to postpone the taxes that are due. He asked how much Medtronic would be paying if we hadn't given them a TIF. Mayor Lund said taxes are still being collected on the building when it is empty and during the construction phase. The City would not benefit on the tax increase immediately but would after the TIF is paid off and the value on the taxation would increase dramatically. Regarding Medtronic, had we not assigned a TIF district to that area, the land may still be vacant today. Looking into the future, Medtronic will generate more taxes that will come back to the City. The current site has a bad building, is not up to code, has buried debris etc. We will not be losing anything as far as taxes goes but will gain in the end by having a beautiful building creating 100 new jobs for the City. Councilmember Bolkcom reminded Mr. Stahlberg that the property is blighted and the property value will continue to go down and eventually will sell for a loss. The City will not lose anything and the owner will still pay the base taxes they are paying today. This will improve the opportunities in Fridley and create jobs we do not have today. Dr. Burns, City Manager, added that the City has lost 3,000 jobs in the last five years. It makes sense to create new jobs in Fridley. Mr. Stahlberg stated that the City does not benefit from the jobs that are created because we do not know where the employees will live. Councilmember Bolkcom stated if the people work in Fridley, chances are they will spend FRIDLEY CITY COUNCIL MEETING OF FEBRUARY 26, 2007 PAGE 10 money in our community. This will help the image of our City as well. It will also create an interest in our City and other companies will want to relocate in Fridley because of our strong workforce and industrial base. Dr. Burns stated we are not giving away a lot for the return we will get in the future. Mr. Stahlberg stated he would like to see jobs in Fridley, but would like to see someone who would build on this property, fix it up and not ask for money to do it. Councilmember Bolkcom stated that this is not good commercial property. The soil is contaminated and the building will need to be torn down because it is outdated and not up to code. Mr. Stahlberg asked why it wasn't Mr. Allen's responsibility to clean up the property. Councilmember Bolkcom stated that the redevelopment would not happen if we did not create a TIF district due to the high costs needed to clean up the property. Dr. Burns added the City did not sell this property to Mr. Allen. It was sold from a private owner. Mr. Stahlberg said the City should not have to give away $1.5 million for people to redevelop the property. If you bought a home that was not up to the electrical code, the City would not help you with finances to fix the problem. It would be the homeowner's responsibility. Mr. Hickok stated that this property was vacant for over a year, and Mr. Allen will improve the property value. He is starting with a$2.5 million business that he is paying taxes on and will increase the value to $10 million which will definitely increase the tax funds coming to our City. Councilmember Bolkcom said the City will not lose any money in this transaction. Mr. Hickok added that the City does not take TIF districts lightly. Councilmember Bolkcom stated that if you look other areas that were successful, such as the Hyde Park area, without TIF districts they would never have been redeveloped. Councilmember Saefke stated that we are not giving away or losing any taxes. The owner will continue to pay the same tax base for future years that they are paying now. We anticipate more taxes in the future and this is a great asset to the City. Jobs will be created and we will gain more tax dollars in the future. Pam Reynolds, 1241 Norton Avenue, stated that five years ago she asked Dr. Burns about the TIF Districts and she got the impression that it was a great thing. Since that time, she has done her own research and has found that even though developers like John Allen will come in and make a much nicer place, TIF is not a bargain for taxpayers. TIF is supposed to be a way to boost local economy, but there are many hidden costs to taxpayers. Cities assume they are not FRIDLEY CITY COUNCIL MEETING OF FEBRUARY 26, 2007 PAGE 11 giving up anything because tax revenue would not have been available in the absence of the development. Mr. Allen owns this property and these are the kinds of properties he buys. These are good properties to redevelop and he would not redevelop this property if he did not get these TIF funds. Mr. Allen has a lot of money invested and probably has a lot more money to invest. Why is the City not looking at livable community dollars to help with the clean up of this property? The roads, sewer, fire and police services are some of the public costs that come with the TIF developments. Taxpayers would pick up that burden for those 15 to 16 years until the TIF is paid off. There are hidden public costs. The resolution on the internet says 25 years but tonight they are talking 15 to 16 years. She asked how long will the TIF district will be open and if there were plans to e�tend it to cover the 7LT site as well. These sites may develop on their own with the Northstar Rail coming. Greg Johnson, Krass Monroe, answered some of the questions. The first question was related to 16 years vs. 25 years. The maximum duration of the TIF district is 25 years which allows for flexibility for the unknown. The TIF district will be for 16 years and the City has the option to recertify the TIF district after the 16 years. The ne�t question related to John Allen redeveloping the project without TIF assistance. Basically if there is no TIF assistance, he would work with the property as is. Mr. Bolin added that one of the problems with this building is that the bulk of the building is not heated and was used for cold storage of lumber. Also all of the copper for the existing electrical lines has been stolen from this site. There is not adequate electricity in the building. Mr. Johnson stated that the value has decreased since last year. By creating a TIF district for this property, it will lock in the base value and the value could not decrease any more. Taxes to the State of Minnesota on this property will be collected on the full $10 million. Of the money collected, 40% is going to tax increment and 60% is going to the school districts, the state, the county, etc. Mr. Bolin commented on the statement about including the 7LT site with this TIF district. This could not be done without creating an entirely new TIF district. Also in regards to the Met Council money that the JLT site received, JLT initiated that request. This was nothing that the City had suggested to them. Councilmember Bolkcom stated that the Northstar Rail station currently is not planned in our community so we are not sure how much this will spur the development at this point. This area will have to be protected with police and fire whether the area is redeveloped or not. By redeveloping the property, there may be fewer problems in that area. Dr. Burns added that any roadway or utility extension for this project would be the private owner's responsibility. TIF dollars would not be used for any infrastructure expenses. Roads and utilities will be e�tended but this project is free of those expenses. JoAnn Zmuda, 6051 Fourth Street, stated that she does not really care whether the redevelopment is put in. She did have questions regarding the TIF district. She asked if the developer could fix up the current building that was on site rather than have the taxpayers pay. FRIDLEY CITY COUNCIL MEETING OF FEBRUARY 26, 2007 PAGE 12 Councilmember Bolkcom answered that the developer will be building a bigger, better building. Because of the railroad spur, etc., the building is not situated properly to handle new business. Mr. Bolin stated that on the JLT site, the money was used for asbestos abatement. On this site it would be used to clean up the trench full of building materials. It is unknown what types of contamination are in this trench. If contamination is found, soil correction will be necessary. The buried items have been decomposing and most likely causing contamination. Would livable communities be able to provide Mr. Allen the flexibility that the TIF can give Mr. Allen? Probably not. The cost to bring the building up to code is well in excess of $2 to $3 million. The current building is very outdated and not up to code. Mr. Hickok stated that the tax base from the Met Council is offered to cities that are involved with the Livable Communities Act. This is a competitive pool of money and not always available. At the time we went for funds to assist JLT, there was roughly $4 million to be split among all of the projects in the metro area. The City submitted two applications to get $168,000 for that clean-up project. The real cost to that project was about $399,000. This is how the competitive pool funds work This project needs to work economically for the developer or the property will not get redeveloped. The alternative is to leave the building there and try to utilize it for cold storage, recycling, etc. This would not generate the jobs or have the value on the site. The competitive pool of money would not bring $1.5 million to this site. If we did not bring $1.5 million to this site, we would still have a situation where the developer would make a decision not to redevelop the site and we would lose jobs and taxes. Mayor Lund stated that after hearing the testimony on this item, the use of TIF funds makes sense for this project. This will help improve the image of our community. This is not utilizing tax dollars or coming out of our pockets, but rather deferring the tax increase until the TIF is paid off. Councilmember Saefke stated that the TIF of $1.5 million does not exist today without creating the property. The TIF does not exist until the $10 million project becomes real. The value of the property is going down as time goes by and people have been stealing and vandalizing the property. This will be good for the area. Councilmember Bolkcom added that this area is adjacent to a residential area and people have called in and complained about this property in the past. MOTION by Councilmember Bolkcom to close the public hearing. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE PUBLIC HEARING CLOSED AT 9:20 P.M. FRIDLEY CITY COUNCIL MEETING OF FEBRUARY 26, 2007 PAGE 13 OLD BUSINESS 9. Second reading of an Ordinance Amending and Recodifying Chapter 508 Pertaining to Alcoholic Beverages. Jack Kirk, Director of Parks and Recreation, stated that the first reading was held on February 12, and there were questions and recommendations to change some things. One of the questions asked was what constitutes a club in terms of this particular ordinance. This is covered under the Minnesota State Statue 340A, which we must comply with. The statute states that a "club" is an incorporated organization under the laws of the state for civic, fraternal, social, or business purposes, for intellectual improvement, or for the promotion of sports, or a congressionally chartered veterans' organization, which: 1. has more than 30 members; 2. has owned or rented a building or space in a building for more than one year that is suitable and adequate for the accommodation of its members; and 3. is directed by a board of directors, executive committee, or other similar body chosen by the members at a meeting held for that purpose. No member, office, agent, or employee shall receive any profit from the distribution or sale of beverages to the members of the club, or their guests, beyond a reasonable salary or wages fixed and voted each year by the governing body. Mr. Kirk stated that another area of discussion was the one surrounding Commons Park and that it should be more restricted. They have added more language and added "Sale and consumption of 3.2% malt liquor at Commons Park shall be limited to that occurring during, and as part of, a community festival. Community festivals shall include Fridley `49er Days and other festivals of broad community appeal and participation as designated by City Council." Staff recommends approval of the second reading of this ordinance. Councilmember Saefke stated that he received a telephone call this weekend from a resident who lives across from the park who commented on the sale of beer in conjunction with the softball tournaments. There used to be a beer trophy and the consumption would get out of hand and disturb residents in the area. He asked what kind of control would be offered if this was allowed. Mr. Kirk answered this was discussed with the Police Department and the City would require that all beverages be consumed in the fenced-in area. No beverages would be allowed outside of the area. Councilmember Saefke asked where the fenced in area would be. Mr. Kirk answered the eastern part of the southern parking lot. Councilmember Saefke asked if there has been a problem with the beer garden at `49er days. Mr. Kirk said he was not aware of any problems. Don Abbott, Public Safety Director, stated that 4 or 5 years ago, there were issues with the softball tournaments at Community Park They have met with the vendor, license holder of the FRIDLEY CITY COUNCIL MEETING OF FEBRUARY 26, 2007 PAGE 14 beer license, and laid out some very specific conditions. If the conditions are violated, they could be put on probation. They are to control the alcohol. For example, one person can only get two beers rather than an entire tray of beers. Councilmember Saefke stated that he was just trying to address some of the issues. Years ago residents would have people knocking at their doors and urinating on their lawn. We do not want this to occur. Mr. Abbott stated that Chapter 121 of the City Code would prevent people from drinking a beer off the site of the actual licensed premises. In this case, the license would define the area to be the fenced-in area. Over the past years, two to three additional officers have been assigned to the `49er Days festival per night. Councilmember Varichak asked where the show mobile is in relationship to the beer garden. In the past people have wanted to take their beer over to that area. Mr. Kirk stated that the show mobile would be within the fenced-in area as well as any of the food vendors. There are areas where people can participate and listen to music within the fenced-in area. Councilmember Bolkcom stated she felt better with the additional language that was added. She said she was concerned with the language in the chapters related to intoxicating beverages and asked for them to be cleaned up with this reading. She asked if they had been reviewed. Mr. Abbott said he would check into the issue. Mr. Borman, President of `49er Days, stated that at previous `49er Day events, the sale of beer was not in a controlled area. Wrist bands will be issued to those over age 21 and no beer will be sold after 11:00 p.m., when the band stops playing. Mayor Lund asked if the carnival will be in the High School parking lot this year. Mr. Borman said they would like to temporarily block off 61 st Avenue to eliminate vehicle traffic, and the carnival will be held in the High School Parking lot and the festival down the hill. Councilmember Barnette asked if the parking lot would be open at the Middle School. Mr. Borman answered yes. They can park there and at the Community Center. Councilmember Barnette stated that parking may be an issue if the High School parking lot is used for the carnival. Traffic will be a concern for people living in the area. Mayor Lund asked where the carnival operators would be housed. Mr. Kirk answered that the carnival trailers would be located in Commons Park where the two hockey rinks are. This would be isolated from other activities. FRIDLEY CITY COUNCIL MEETING OF FEBRUARY 26, 2007 PAGE 15 Councilmember Bolkcom stated that the internet still has the wrong chapter versions posted. Mr. Abbott replied that he will reconcile the versions. MOTION by Councilmember Bolkcom to waive the reading of the ordinance and to adopt Ordinance No. 1239 on second reading and order publication. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY 10. Resolution Ordering the Removal or Repair of a Hazardous Building Pursuant to Minnesota Statues, Section 463, Located Within the City of Fridley, Minnesota (136 Horizon Circle) (Ward 3) (Tabled January 8, 2007). MOTION by Councilmember Bolkcom to table this issue until May 7, 2007. Seconded by Councilmember Varichak. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY NEW BUSINESS 11. Resolution Modifying the Redevelopment Plan for Redevelopment Project No. 1 and the Tax Increment Financing Plans for Tax Increment Financing District Nos. 1-3, 6-7, 9, 11-14 and 16-18 to Reflect Increased Bonding Authority within Redevelopment Project No. 1, Creating Tax Increment Financing District No. 19 and Adopting Tax Increment Financing Plan Relating Thereto (Industrial Equities Project Generally Located at 5110 Main Street N.E.) (Ward 3). MOTION by Councilmember Bolkcom to adopt Resolution No. 2007-14. Seconded by Councilmember Barnette. Councilmember Bolkcom stated that there was a lot of good discussion but the project would not go forward without a TIF district. The project is needed in the area. Mayor Lund said Districts 10 and 15 are included in the memorandum but are not listed on the resolution. Mr. Bolin answered that the resolution has the correct districts listed. Mayor Lund said he was in favor of the redevelopment project. Dr. Burns said it can be difficult getting developers interested in development and redevelopment. It is great to have a developer of this quality working in Fridley. FRIDLEY CITY COUNCIL MEETING OF FEBRUARY 26, 2007 PAGE 16 UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY 12. Resolution of the City of Fridley, Minnesota, Direction its Attorney to Obtain a Legal Opinion from the Minnesota Attorney General Pursuant to Minnesota Statues, Chapter 8.07. Fritz Knaak, City Attorney, stated that this chapter allows cities to request the Attorney General's opinion on legal matters regarding questions of public importance. An Attorney General's opinion provides a good legal basis for future city actions based on importance specifically for the city. Questions have been raised on the possible conflicts between the City's current language which restricts the amount that can be charged for certain things including utilities and the requirements of Minnesota Statues, Section 44.4. This provision requires cities to maintain funds, spend money for public health and safety, have sewer and water available and provide for special revenue bonds when necessary for utilities. The City cannot go forward with revenue bonds based on these restrictions. Outside consultants have raised the question that this represents a conflict between the charter and the requirements of state law. The requirements of state law would supersede the Fridley Charter. Accordingly, we would like to ask the Attorney General the following: Does State law supersede the Fridley Charter? If so, to what degree can the City regulate that kind of restriction in this charter without conflicting with State law? In order to that, the City must make a formal request. Mr. Knaak cannot do this on behalf of the city without the authority of Council. Accordingly, staff is asking Council to authorize the City Manager to direct Mr. Knaak to make this request to the Attorney General. Mayor Lund stated that he is in favor of this resolution. He thought a legal opinion would help come to some kind of formalization regarding our utility funds. Our current projections state that our losses will not only continue but increase in the future. Councilmember Barnette is also in favor of this item and to do it legally would be better. William Holm, 7424 Melody Drive, stated that he was provided with the resolution as a member of the Charter Commission. He fully supports this idea and agrees it is appropriate to move forward with this item. He had some suggestions on the language. On question number one in the draft letter he thinks it should be made clear that we are asking the question "Does Minnesota State law relating to the provision of the utilities by meter municipalities preempt the cities' charter provision such as Fridley where the charter language results in operating and maintenance costs substantially exceeding revenues the city can generate from users of its utilities?" We need to be clear that this is the main issue. Also on the second question, it would be helpful to note at the end that Fridley already has a dedicated utility fund, and the City Charter already requires that excess revenues be returned to utility users through lower rates or refunds. Finally, it seems that this resolution should come from the Mayor and City Council rather than the City Attorney. Attorney Knaak answered that it is regular protocol that the City Attorney contact the Attorney General. FRIDLEY CITY COUNCIL MEETING OF FEBRUARY 26, 2007 PAGE 17 Councilmember Saefke asked that a correction be made in the third paragraph of the resolution changing "proving"to "providing." MOTION by to adopt Resolution No. 2007-15 with the correction to Paragraph 3. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY Councilmember Bolkcom asked how long it would take to receive a response. Attorney Knaak said it would go out right away. It could take weeks or 2 to 3 months. 1. Second Reading of an Ordinance Amending Chapters 11 and 108 of the Fridley City Code Pertaining to Fees and Open Burning; and Adopt Official Title and Summary Ordinance. Councilmember Varichak assumed this pertained to leaves and brush but not open burning for recreational fires. She received an email from a resident asking to keep the time at 1:00 a.m. and not midnight. John Berg, Fire Chief, stated that the time restriction is for recreational fires. Other conditions are set in the permit. Open burning as it relates to the permit process would be in situations where there would not be any other alternatives such as land management and prairie burning. The restriction on time is related to recreational fires which does not include leaves. Councilmember Bolkcom stated that the reason behind the 1:00 a.m. time request is that complaints come in that 1:00 a.m. it is too late. Many times the fire activity also brings noise issues. Chief Berg stated that regardless of the time, the complaints from neighbors will continue to come in. When police go out to the site, they will not argue with the people but just ask them to put it out if it is past midnight. Mayor Lund stated that the time does not really matter. It is the smoke and noise that is the disturbance. Midnight is a reasonable and considerate time for neighbors. MOTION to waive the second reading of the ordinance and adopt Ordinance No. 1238 and the official title and summary ordinance and order publication. Seconded by Councilmember Varichak. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY FRIDLEY CITY COUNCIL MEETING OF FEBRUARY 26, 2007 PAGE 18 INFORMAL REPORTS Councilmember Saefke complimented Mr. Haukaas and the plowing crews for managing the latest snow fall. Councilmember Bolkcom stated that the Home Improvement Fair went well. Councilmember Bolkcom reminded people that the first Comprehensive Plan Informational Meeting is scheduled for March 19, 2007. William Burns, City Manager, said Ward 2 will be at Totino-Grace and Ward 1 will be at the Community Center. Mr. Hickok stated that you do not have to attend the meeting in your ward. They are open meetings. The second meeting will be April 2. He encouraged residents to attend the meetings. They will involve some presentation, interaction, answering questions, doing map exercises etc. Councilmember Bolkcom asked what will be done with the information from the housing kick- off forum sessions. Mr. Hickok answered that the information from those meetings will not be lost. The report from the housing forum session will be available if people want a copy. Councilmember Barnette stated that issues other than housing will be discussed. These meetings contain much more information such as transportation, utilities and parks. Mr. Haukaas thanked Council and residents for the good comments received regarding the snowplowing. He will be sure to pass the comments to staff. There were some problems with parking restrictions, and he reminded residents that there is no parking on Fridley streets between the hours of 2:00 a.m. and 6:00 a.m. Councilmember Barnette reminded residents that the parking restrictions are in affect whether it snows or not. ADJOURN: MOTION by Councilmember Barnette to adjourn. Seconded Councilmember Varichak. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MEETING ADJOURNED AT 10:30 P.M. Respectfully Submitted by, Krista J. Monsrud Scott J. Lund Recording Secretary Mayor