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CCM 02/05/2001 THE MINUTES OF THE REGULAR MEETING OF THE FRIDLEY CITY COUNCIL OF FEBRUARY 5, 2001 The Regular Meeting of the Fridley City Council 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 Barnette, Councilmember Wolfe, and Councilmember Bolkcom MEMBERS ABSENT: Councilmember Billings PROCLAMATIONS: Steve Novak Appreciation Day: February 5, 2001 Mayor Lund stated that Steve Novak's dedication and hard work has enhanced the quality of life in the City of Fridley, and he proclaimed February 5, 2001, to be Steve Novak Appreciation Day. .— Steve Novak was unable to be present. LEGISLATIVE UPDATE Senator Don Betzold stated that the legislature started on January 3 and is expected to go to May 21, the constitutional deadline. This is the budget year which will be the main issue. The Governor submitted significant changes in the budget, especially in the tax area. Senator Betzold said that he will be the new Chair of the Sales and Income Tax Committee and will oversee some policies in that area. The Governor wants to extend the sales tax and lower the rate. In the process, part of the surplus will be used to lower income tax rates and do some shifting to take education off of the property tax to reduce that tax. Some issues to come up this year are whether or not to allow grocery stores to sell wine, DWI threshold of .08 blood alcohol concentration, PERA shortfall, and racial profiling. Senator Betzold invited the citizens of Fridley to contact himself, Senator Chaudhary, or Representative Goodwin with any concerns. Representative Barb Goodwin stated that she is on the Education Policy and Education Finance Committees. She said the committee is responding to constituents that are unhappy with the Governor's budget. If the budget passes as the Governor has it now, Fridley and Columbia Heights may be in serious trouble. The cities are already in financial trouble, and this budget will make it worse. Higher health care, heating, and special education needs, and they will be affected. Some deductions may be rearranged next month but do not look to be more beneficial. FRIDLEY CITY COUNCIL MEETING OF FEBRUARY 5, 2001 PAGE 2 Representative Goodwin urged people to contact the Governor's office to voice opinions over — these significant reductions in the things people care most about. The budget surplus is a one- time deal, but the tax reduction would be permanent with permanent cuts in education, health care and so forth. She said she and Senator Chaudhary will be holding a meeting at the Anoka County Library on February 17 at 10:00 a.m. to hear questions or comments on the budget or other issues. Representative Goodwin asked people to call her at 651-296-4331 at the State Capital with questions. She said her address is: 353 State Office Building, St. Paul, MN 55155. Her e-mail address is rep.barb.toodwin'a)house.leg.state.mn.us. Councilmember Barnette asked Representative Goodwin if she saw a general agreement over the general budget. Representative Goodwin stated that she thought both democrats and republicans were against the K-12 budget. She said that the higher education budget was an issue as well. Senator Betzold stated that the Governor's proposal is quite heavy into tax cuts. Councilmember Barnette asked if there was anything being mentioned about vouchers. Senator Betzold stated that there was not. He said that issue failed a few years ago on a strong bi-partisan basis under Governor Carlson. The local sales tax is eliminated in the Governor's budget as of today. Senator Chaudhary stated that the legislature is having joint meetings between the Crime and Human Services Divisions to deal with mental health problems that affect all of us in the way of juvenile crime. To help schools with the rising heating costs, a heating cost ordinance bill was proposed, and it passed through the Senate today. Senator Chaudhary said he is chair of a subcommittee on education technology. That committee will deal with affordable school computers, computer based learning, letter based learning, digital divide, non-computer related issues, biotechnology, technology in the arts, and our vision for their future. Senator Chaudhry said that he has been appointed to the Transportation Budget Division and is Vice-Chair of the Transportation Policy Committee, which will deal with the Highway 65 and commuter rail issues. The Northstar Corridor Joint Powers Authority has posed $60,000,000 in bonding and $30,000,000 in cash. The Governor proposes $115,000,000 in bond total. Active discussions with the Department of Transportation have taken place regarding the commuter rail station in Fridley at 61St Avenue and Main Street. Senator Chaudhary said DWI enforcement is very important to him, (and he has been working on different ways to enforce that. He urged people to call him at 651-296-4334 at his office or visit his website at www.chaudhary.ort. Mayor Lund thanked the legislators for attending the meeting and giving their updates. FRIDLEY CITY COUNCIL MEETING OF FEBRUARY 5, 2001 PAGE 3 APPROVAL OF PROPOSED CONSENT AGENDA: MOTION by Councilmember Barnette to approve the proposed consent agenda. Seconded by Councilmember Wolfe. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. APPROVAL OF MINUTES: City Council Meeting of January 22, 2001 APPROVED. NEW BUSINESS: 1. RECEIVE THE MINUTES OF THE PLANNING COMMISSION MEETING OF JANUARY 17,2001: RECEIVED THE MINUTES OF THE PLANNING COMMISSION MEETING OF JANUARY 17,2001. 2. PRELIMINARY PLAT REQUEST, PS #00-03, BY DAVID LOPEZ, TO CREATE TWO RESIDENTIAL LOTS, GENERALLY LOCATED AT 35 - 62ND WAY (WARD 3): Mr. Burns, City Manager, stated that the petitioner is the owner, David Lopez. He proposed to split his property at 35 - 62nd Way into two lots. Each lot would meet the City's lot size and width requirements. The request was approved by the Planning Commission at their meeting of January 17 with eight stipulations. Staff recommended Council's approval. APPROVED PS #00-03 WITH THE FOLLOWING: 1) PETITIONER SHALL OBTAIN ALL NECESSARY PERMITS PRIOR TO CONSTRUCTION; 2) PETITIONER SHALL REMOVE EXISTING GARAGE FROM PROPOSED LOT 1 PRIOR TO APPLYING TO THE CITY FOR FINAL PLAT APPROVAL; 3) PETITIONER SHALL CONSTRUCT A HARD SURFACE DRIVE AND CODE REQUIRED DOUBLE CAR GARAGE ON PROPOSED LOT 2, BY NOVEMBER 1, 2001. FURTHERMORE, PETITIONER SHALL SUBMIT A PERFORMANCE BOND TO THE CITY OF FRIDLEY IN THE AMOUNT OF $25,000 TO ENSURE CONSTRUCTION OF DRIVEWAY AND GARAGE; 4) GRADING AND DRAINAGE PLAN TO BE APPROVED BY CITY'S ENGINEERING STAFF PRIOR TO THE ISSUANCE OF ANY BUILDING PERMITS, IN ORDER TO MINIMIZE IMPACTS TO THE SURROUNDING PROPERTIES; 5) DURING CONSTRUCTION ON PROPOSED LOT 1, SILT FENCING SHALL BE USED WHERE APPLICABLE; 6) PETITIONER TO PAY $1,500 PARK DEDICATION FRIDLEY CITY COUNCIL MEETING OF FEBRUARY 5, 2001 PAGE 4 FEE PRIOR TO ISSUANCE OF BUILDING PERMIT FOR PROPOSED LOT 1; 7) PETITIONER TO PAY ALL WATER AND SEWER CONNECTION FEES; AND 8) THE PETITIONER SHALL AGREE TO PRESERVE MATURE TREES TO THE EXTENT POSSIBLE. ALL TREES REQUIRED TO BE REMOVED FOR THE NEW HOME SHALL BE MARKED AND APPROVED BY CITY STAFF PRIOR TO ISSUANCE OF BUILDING PERMITS. 3. APPROVE AGREEMENT BETWEEN THE CITY OF FRIDLEY AND BURLINGTON NORTHERN AND SANTA FE RAILWAY COMPANY FOR THE REPLACEMENT OF THE TIMBER RAILWAY CROSSING AT 77" AVENUE N.E. (WARD 3): Mr. Burns, City Manager, stated that the agreement would have the City paying thirty percent (30%) of the costs associated with the replacement of the timber railroad crossing on 77th Avenue. This amounts to $28,800. The work will be completed by BNSF during the 2001 construction season. Staff recommended Council's approval. APPROVED AGREEMENT. 4. MOTION TO SUPPORT APPLICATION FOR 2001-2002 COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS FOR THE FRIDLEY YOUTH RECREATION SCHOLARSHIP PROGRAM: Mr. Burns, City Manager, stated that the application is to Anoka County for $7,500. The funds would be used to provide fee waivers or partial fee waivers to youth from low and moderate income families. The fee waivers would apply to the costs for trips and activities sponsored by the Fridley Recreation Department for elementary and middle school age youth. Staff expects that the money will benefit about 130 youth in 70 households. Staff recommended Council's approval. APPROVED MOTION. 5. MOTION TO SUPPORT APPLICATION FOR 2001-2002 COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS FOR THE FRIDLEY SENIOR COMPANION PROGRAM: Mr. Burns, City Manager, stated that this is a joint application with the City of Coon Rapids for a total of$11,433. The money would fund the Senior Companions program in both communities. This program is one where low income seniors assist other low income seniors. The companions make home visits, take them grocery shopping, take them on other outings, assist in getting them to doctor's appointments and in general, serve as a source of social support. Currently, there are five companions who serve seventeen home-bound seniors. The Fridley portion of the grant, $6,422, would help to cover the cost of our Senior Companion Coordinator,Nancy Shaw. It would also be used _ to cover a small stipend, mileage costs and meals for the companions. Staff recommended Council's approval. FRIDLEY CITY COUNCIL MEETING OF FEBRUARY 5,2001 PAGE 5 APPROVED MOTION. 6. APPROVE CONTRACT BETWEEN THE CITY OF FRIDLEY AND GOVERNMENT AND ENTERPRISE SERVICES FOR FUNDING FOR HIGHWAY 65 IMPROVEMENTS BETWEEN I-694 AND 63RD AVENUE N.E: Mr. Burns, City Manager, stated that staff was proposing to enter into a contract with Phil Cohen and his associates for assistance in acquiring funding for a proposed Highway 65 improvement project. The project would provide for widening of Highway 65 between I-694 and 63` Avenue. Most of the work would be done on the causeway that crosses Moore Lake. Mr. Cohen and his group would assist the City in acquiring the $7,000,000 that is needed for this project from both federal and state sources. In exchange for his services, the City would pay Mr. Cohen the sum of$3,000 a month for a period of twelve months. Staff recommended Council's approval. APPROVED CONTRACT. 7. APPOINTMENT: Mr. Burns, City Manager, stated that staff recommended the appointment of Scott Hickok as Acting Community Development Director at an annual salary of $72,349.20. The appointment is effective January 10 and will remain in effect until a Community Development Director is appointed. Staff recommended Council's approval. APPOINTED SCOTT HICKOK AS ACTING COMMUNITY DEVELOPMENT DIRECTOR. 8. CLAIMS: APPROVED PAYMENT OF CLAIM NOS. 97817 THROUGH 98042. 9. LICENSES: APPROVED ALL LICENSES AS SUBMITTED AND AS ON FILE WITH THE LICENSE CLERK. 11. ESTIMATES: Frederic W. Knaak, Esq. Holstad and Knaak, P.L.C. 1690 Minnesota World Trade Center 30 East Seventh Street St. Paul, MN 55101 Services Rendered as City Attorney for the Month of January, 2001 $ 5,000.00 FRIDLEY CITY COUNCIL MEETING OF FEBRUARY 5,2001 PAGE 6 No persons in the audience spoke regarding the consent agenda items. MOTION by Councilmember Billings to approve the consent agenda items. Seconded by Councilmember Bolkcom. Upon a voice vote, all voting aye, Mayor Lund declared the motion carried unanimously. ADOPTION OF AGENDA: MOTION by Councilmember Bolkcom to adopt the agenda as submitted. Seconded by Councilmember Wolfe. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. OPEN FORUM,VISITORS: Mr. Dennis Johnson, 6336 Starlite Boulevard, asked if the City Council is keeping the affected neighborhoods of the commuter rail station completely informed and up-to-date on the process. Mayor Lund stated that the residents are getting all the information that Council is getting. Mr. Johnson stated that at the neighborhood meeting on January 18 the question was asked if anyone had heard a response from the Northstar Corridor about the City Council resolution — rejecting the 61St Avenue and 615t Way site for the commuter station. He said the answer given then by Councilmembers was that there was no new information. The following week a letter was received from the City of Fridley dated December 14, 2000 signed by Scott Hickok. It was the official response from the Northstar Corridor regarding the City of Fridley's proposal. Councilmember Bolkcom stated that the letter was received after the meeting. Mr. Johnson stated that the residents would like to work together with proper planning. Councilmember Bolkcom stated that Council will continue to work with the residents. The environmental study is not due out until June. Mayor Lund stated that Council is aware of how important this issue is to the neighborhood. He said that Council will try hard to keep everybody informed. PUBLIC HEARING: 11. ORDINANCE RECODIFYING THE FRIDLEY CITY CODE CHAPTER 205, ENTITLED "ZONING," BY ADDING A NEW SECTION 205.XX,0-5 FRIDLEY CITY COUNCIL MEETING OF FEBRUARY 5,2001 PAGE 7 RESIDENTIAL LOTS CREATED PRIOR TO 1955 DISTRICT REGULATIONS (ZONING TEXT AMENDMENT, ZTA#00-04 BY THE CITY OF FRIDLEY): MOTION by Councilmember Bolkcom to open the public hearing. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED AND THE PUBLIC HEARING WAS OPENED AT 8:11 P.M. Mr. Bolin, Planner, stated that the 0-5, Overlay District, is needed to encourage investment in some of Fridley's older neighborhoods. There are a number of lots in Fridley that are non- conforming. As a result, there is not a lot of incentive to invest in the homes. Staff is improving the existing housing stock by removing this status and providing a few possible in-fill opportunities along the way. This lot pertains to be created and recorded at Anoka County prior to December 29, 1955. This excludes lots combined or split since this time. This will not create new lots. The lots need to be between 5,000 and 7,499 square feet in size and have a minimum lot width of 50 feet. There are approximately 200 lots according to the GIS system that meet the size requirements outside of the Hyde Park addition. The data shows that city-wide there are only 8 vacant lots that meet the size requirements; 126 of these non-conforming lots with homes on them are located in the Riverview Heights area. Only one lot in that neighborhood is vacant, and that lot is joined by commercial property. The owner of the business would like to keep that strip as a buffer between the residential neighborhood and himself That is the only vacant lot that could possibly be developed in the Riverview Heights neighborhood. Staff is working with the GIS department to conduct further work to narrow down the exact number of properties that meet this criteria. Mr. Bolin stated that Hyde Park was excluded because the residents had concerns in the past with substandard lot sizes. In 1976, a neighborhood task force proposed and the City Council adopted the S-1, Hyde Park District. In Hyde Park at that time, the neighbors chose a 60-foot lot and maintained the 7,500 square foot minimum lot size. That enabled the majority of homes in that neighborhood to become conforming in size. The 0-5 standards were modeled on the Hyde Park District and combined with portions of existing R-1 Single Family District. There needs to be a 25-foot front and rear yard setback with a 15 foot rear yard setback for an attached garage. A 768 square foot minimum home size and a 30-foot height restriction is required. These standards would apply to new construction on vacant lots and also to existing homes on the current non-conforming lots. The opponents have been focusing on the possibility of vacant lots developing. At the most, there are 8 sites in the City. Staff has heard that twenty to thirty years from now, new houses on the lots would look run down just like existing homes in these neighborhoods. The housing market is different than forty to eighty years ago and construction of a new home is very expensive and represents an investment that the owner should maintain. These lots are smaller in size, but the same sideyard setbacks apply, so in the R-1 district it is possible to have garages that are 10 feet apart. The homes will not be any closer than what currently exists. Staff has seen ramblers on 75 foot wide lots get wider and wider every year as garages are added. FRIDLEY CITY COUNCIL MEETING OF FEBRUARY 5,2001 PAGE 8 Mr. Bolin stated that these lots are 100 to 110 feet deep with the same depth as every other house — in the neighborhood. Staff has seen many site plans which show that it is practical to place a reasonably sized home and garage on these lots. St. Louis Park and Richfield have had great success with their programs. This encourages reinvestment by preventing homes on these currently non-conforming lots from becoming a lost investment. Three cases in the last four years have had homes on these smaller lots burn to the ground and the residents have not been able to rebuild because their lots are non-conforming. Adoption of the overlay district would have allowed these three homes in question to rebuild on their site. Without this protection, people have a hard time justifying maintaining their own home and investing in it. It provides housing options and gives the City, HRA, and the residents more flexibility in developing and rehabilitating housing. It is hard for people on these non-conforming lots to obtain grant funding or any funding to reinvest and remodel their homes. This does not increase the density in any way because City Code does not allow the subdivision of larger lots to be in a series of 5,000 square foot lots. The January 17 Planning Commission meeting public hearing was held and the commission recommended approval of the creation of the 0-5 Overlay District. Staff recommended holding the first reading. Councilmember Bolkcom stated that if someone has a 100-foot lot, they would not be able to divide it in this ordinance and build another home. Mr. Bolin stated that was correct. The lot would have had to have to have been split prior to December 29, 1955. Councilmember Bolkcom stated that this is the way to change the ordinance to protect those people on those 50-foot lots. In the Riverview Heights area, there is a flood plain, and people may consider putting up homes in that area with this ordinance. Mr. Bolin stated that the one lot identified by GIS in the Riverview Hieghts area not in a flood plain. That is the house across from the gas station. Mayor Lund asked if there was opposition to the Hyde Park District created in 1976. Mr. Bolin stated the 60-foot lots reflected what existed for the residential lots in that district. Mr. Pete Eisenzimmer, 6535 Oakley Drive, stated that there is one big lot on Mississippi Street that the City owns. He said he just purchased a 120-foot lot. He asked if it would stay the way it is if he split that lot up to make two 60-foot lots. Councilmember Bolkcom stated that was why she asked the question she did. She said Council would not allow someone to come in and split up a lot that is bigger than that. Mayor Lund stated that it would have to be platted prior to 1955. Mr. Allan Stahlberg, 8055 Riverview Terrace, stated that he does not know how it could be that there is only one lot in Riverview Terrace that could be built on. FRIDLEY CITY COUNCIL MEETING OF FEBRUARY 5,2001 PAGE 9 Councilmember Bolkcom stated that the Ely Street lot is probably a 45-foot lot. She said Council could check on that. Mr. Bolin stated that there are some that are two 25-foot lots that have never been combined. They are stuck as two 25-foot lots. If they are combined now it is creating a lot after 1955. Mr. Stahlberg stated that he did it four times. He lives on two 30-foot lots and two 25-foot lots. Mr. Bolin stated that he is over the 7,500 square foot minimum. Councilmember Bolkcom stated that the lots that are 25-foot lots cannot now be combined and have a house built on them. They have to be created prior to 1955. The best thing may be for those addresses in question to be called in for investigation before the next meeting of the ordinance. Mr. Stahlberg stated that he would have to have a map because those vacant lots do not have an address. Councilmember Bolkcom stated that they could check the Cook property on Able Street. Mr. Stahlberg stated that the other one is on Fairmont Street east of the address of 690 Fairmont. Mayor Lund asked Mr. Stahlberg what his opposition was. Mr. Stahlberg stated that he thought the houses would be squeezed onto the lots. At the Planning Commission, they were talking about 300 lots available but now there are not that many. Mr. Bolin stated that he believes there are 200. Councilmember Bolkcom stated that there are existing homes on almost every one of those lots. Mr. Stahlberg stated that eliminates part of his arguments. He is afraid that Council will change their mind. This whole idea could be covered with one grandfather clause. If there is a house on these lots now, you can rebuild on it. Mayor Lund stated that he is not against the fact that the people with houses already there can reinvest in their homes and be able to rebuild. He said he was only against adding onto the vacant lots. Mr. Stahlberg stated that his neighbor bought the lot next door after it became a vacant lot. He said he thought people wanted bigger lots. He said that is what created value in the neighborhood. Councilmember Bolkcom stated that she disagreed and she did not think that a bigger lot created a higher value. She said people are buying small lots all over the City for huge prices. FRIDLEY CITY COUNCIL MEETING OF FEBRUARY 5,2001 PAGE 10 Mr. Stahlberg stated that there are only small lots left. Somewhere down the road, the City is going to stick the 25-foot lots together and say that they are a 50-foot lot. There will be runoff problems, higher density, more police, fire, sanitation, sewer, water consumption, school districts, and so forth. Councilmember Bolkcom stated that this ordinance does not allow someone to tear down a whole block of houses and then divide them into 50 foot lots. The majority of the homes are already existing on 50 foot lots. Mr. Stahlberg said he was talking about all the vacant lots available that the City says do not exist. The 75-foot requirement has been in existence since 1955. Mayor Lund stated that these are the lots created prior to 1955. Mr. Stahlberg stated that it is only a rule. Councilmember Bolkcom stated that this would have to go through the same process to change the ordinance. Mr. Knaak, City Attorney, stated that was correct. Mr. Stahlberg stated that the City is changing the ordinance to a 75-foot frontage ordinance now. Councilmember Bolkcom stated that Council was only allowing people that have 50 foot lots to improve their homes and to be able to rebuild in case the home has been destroyed. Mr. Knaak stated that the grandfather clause creates an arbitrary distinction between current owners of properties that have houses on them and owners of identical lots that do not. You can get equal protection, and you have to treat all lots equally. Mr. Stahlberg stated that a house with a foundation is different than a vacant lot. Mr. Knaak stated that it is not to the person who owns the vacant lot. Mr. Stahlberg asked who owned the vacant lots. Mr. Knaak stated that he did not know, but it would take just one owner to make the argument, and they would succeed. Councilmember Bolkcom stated that they are not all tax forfeit. Mr. Knaak stated that this is the law. If you are going to craft an ordinance like that, that is what you have to do. Mr. Stahlberg stated that there are a lot of grandfather clauses out there. FRIDLEY CITY COUNCIL MEETING OF FEBRUARY 5,2001 PAGE 11 Mr. Knaak stated that there are not really that many clauses. He said they really do not exist, but there are certain provisions that exist. Mr. Stahlberg stated that in Columbia Heights people can remodel if there is one standing wall. Mr. Knaak stated that there are different ways of dealing with destruction of property. Cities have made efforts to try to allow people to rebuild. The other policy at stake that Mr. Stahlberg is arguing for is that if the City is persistent you will end up with a bigger lot average. If the policy says that you want owners to reconstruct or build, you have to come up with a different solution. Mr. Stahlberg stated that he does not think that the ordinance would be legal. Mr. Knaak stated that the City of Lake Elmo had 25 foot lots and people had lost their homes and had not been able to rebuild. That was litigated up to the court of Appeals and the City won because that is an allowed policy for a City to follow. Mr. Stahlberg stated that the City could change it and say that if you had anything existing, you could remodel. Mr. Knaak stated that Council has full authority to change its ordinances as it is doing now. Mr. Stahlberg stated that is his point. Mayor Lund asked who raised this issue Mr. Bolin stated that the start of it was from when houses had burned to the ground on these properties. Staff researched this topic and inquired about what other cities have done. There are a lot of 40-foot lots around the metropolitan area, staff felt that a 50-foot lot would be more appropriate for Fridley. It matches what exists in these neighborhoods. Councilmember Bolkcom stated that people actually came in to get permits to remodel their homes on these non-conforming lots and then questioned whether to put their money into their home. Mr. Stahlberg asked what the City intends to do with the Cook property if it is on a smaller lot. Mr. Burns stated that the City would either hold it until the adjoining property owner buys it or possibly buy the adjoining property. Councilmember Bolkcom stated that is a Housing and Redevelopment Authority property and is part of the City's scattered site acquisition. Lots do not always combine. Staff will need to do more research for the next meeting. The Cook property is a 40 to 45 foot lot. FRIDLEY CITY COUNCIL MEETING OF FEBRUARY 5,2001 PAGE 12 Mr. Stahlberg stated that it is hard to get people to buy a lot if they know that the lot is _.... unbuildable for privacy without paying the taxes. There are some interior lots on Buffalo or Dover Streets that have been for sale for a while. He assumed they are buildable lots. Mayor Lund stated that he liked the idea of the grandfather clause but unfortunately that is not possible. Councilmember Bolkcom stated that she did not understand how this was different than the grandfather clause. Mr. Stahlberg stated that the value of the lots are not what they would be in other communities. He asked why someone could not build a house on a 40-foot lot if a house existed on a 40-foot lot since the foundation is there. Mr. Monte Maher, 7965 Riverview Terrace, stated that City staff as well as the Planning Commission did an excellent job, but he thought they were trying to pass something in an underhanded way and that they were not giving everybody the full information. He thought it came down to revenues and services and that the Planning Commission needed to reevaluate this because they need more notice announcing their meetings. The people with 50 foot lots sitting next to them do not want these apartment garages put in there. He asked what would happen to the values of the Riverview Heights area if apartments were built. Councilmember Bolkcom stated that the dates the Planning Commission and City Council -- meetings are printed in the City's newsletters. She said Council is not trying to do anything underhanded. Mr. Maher stated that this would be stepping on toes. Mayor Lund asked Mr. Maher about the people who have smaller homes on smaller lots who cannot rebuild. He said that would help the valuations if those people do remodel. Mr. Maher stated that does happen. It is only the ones that are in bad shape that end up burning anyway. He thought there should be more investigation. It would be more of an added benefit to let these lots stay there and be part of the jewel that it is in the neighborhood instead of letting a builder come in and create a whole new community. Mayor Lund asked how many lots are vacant at the present time. Councilmember Bolkcom stated that Mr. Bolin has the list which will be updated for the next Council meeting on February 26. Mr. Maher stated that he appreciated Council listening and taking this item through the right channels. FRIDLEY CITY COUNCIL MEETING OF FEBRUARY 5,2001 PAGE 13 Mr. Gary Bannochie, 665 Dover Street, stated that he built a house on Dover Street last summer. This will create density. There is the tree issue, the small hub for the garage, and eight to nine feet of house on top of a foundation. He said it would not look good. Ms. Kim Saxe, 4452 Madison Street, Columbia Heights, stated that her home was one that was lost to a fire on Lafayette Street which was a non-conforming lot. When the fire occurred, they did not know that they could not rebuild. They tried to get the City to allow them to repair the house. At that time, her parents still owed $35,000 on their mortgage. They were told that there was affordable housing in Fridley. Her parents could not find anything affordable and ended up living in an apartment while they searched for a house to purchase in Fridley. They found a house in Columbia Heights with a $75,000 mortgage, but she and her parents had to enter into a joint mortgage agreement. The new ordinance would prevent any other family from having to go through the struggle they went through three years ago. Ms. Dawn Myrvold, 554 Janesville Street, stated that she owned the other two properties that burned down in the last two years in the Riverview Heights neighborhood. They were side-by- side properties. She said she could not sell the property as one parcel because it was not conforming and was asked to buy the neighboring lot to make it conforming. Three weeks before the fire the lot was valued at $5,000. The day after the fire it was valued at $35,000. She said she was advised by the City that she only needed 12 1/2 feet to make the lot conforming. She said her house is located where it is to be able to fit the house onto the lot. She took the 12 1/2 feet because it was needed to build the garage. All the zoning was calculated from the west lot. The 12 1/2 feet that she needed came off of this parcel. She said she no longer has a 50-foot lot that she can sell. She said she did not agree with the grandfather clause either. She felt there was protection with this ordinance. She said she was very much in favor of this. Mr. Jon Gjevres, 180 Hartman Circle, stated that he was not in favor of the ordinance. He thought there should be a grandfather clause. He said the existing trees and tree rules would make it hard to put a house on the lot. Mayor Lund stated that the stipulation on this ordinance states that the maximum lot coverage would not exceed 35 percent. Mr. Bolin stated that you would not have any more lot coverage on the buildable lot and you would still have the same sideyards as you would in any other zoning district. Councilmember Bolkcom asked Mr. Gjevres if he was against someone with a 50-foot lot being able to build again. Mr. Gjevres stated that this would produce more of an inner city look. Councilmember Bolkcom stated that they are probably only talking one lot here. Councilmember Wolfe stated that Council would have to wait until they received information to make a determination. FRIDLEY CITY COUNCIL MEETING OF FEBRUARY 5,2001 PAGE 14 Councilmember Bolkcom asked how he would feel if it was three or four lots. _... Mr. Gjevres asked what it would improve. He asked if it would produce a little more revenue. Councilmember Bolkcom stated that the reason she is in favor of this ordinance is because of the people like the two that spoke whose houses burned down. She said that someone that has a vacant lot with 5,000 feet should be able to build on it. She asked if anyone would build right behind a Laundromat. She said that probably would not change the streetscape at all. Mr. Gjevres felt a house looked better when it has a little more openness around the sides. He asked why draw the line if people will not have a right to build on a 5,000 square foot lot. He asked if a buyer could apply for a variance why would the City not allow a 45-foot variance to have just as much right as the 5,000. It has been set at 75 feet for quite a while, and he felt it looked great that way. Mayor Lund stated that it is not Council's intention at all to generate additional revenue. Mr. Gjevres stated that there is a fine line on where to stop and where to start. Mayor Lund stated that there are two sides to every story. Councilmember Bolkcom stated that the homes on the 50-foot lots are nice little homes. They should be protected. Councilmember Barnette stated that this ordinance was more for protection of the 120 people living now on 50-foot lots. He said one or two lots to build on would be insignificant. He said it might be hard for people to get a reinvestment loan on a non-conforming property. Councilmember Bolkcom stated that many people may not realize they are on a non-conforming lot until something catastrophic happens. Mr. Gjevres asked if they could go about this in the grandfather clause way. He felt people living in an existing house should have the right to rebuild what was there. Councilmember Barnette stated that is basically what this ordinance does. This is a way to protect the homes currently there for them to rebuild or remodel. There is a line someplace to state the minimal and what is not. Councilmember Bolkcom stated that the important thing is for the planning staff to bring more information back to Council about the vacant lots and why some of those lots are not buildable. Mayor Lund stated that Council and staff do not have a vision for trying to maximize density for tax revenue. FRIDLEY CITY COUNCIL MEETING OF FEBRUARY 5,2001 PAGE 15 Mr. Maher stated that there are also homes on flood plains that are not able to get any permits because they are within the 100-year flood mark. He thought there might be many property owners who may not know this. Councilmember Bolkcom asked if the City was not also protecting neighboring lots as well by making these homes and lots conforming. She said it would encourage people to get grants and loans to fix up and remodel their homes. Every time someone fixes up their home and sells it, it increases the property values too. Mr. Maher stated that what is happening in the Riverview Heights neighborhood does work, and now Council is going to change it. He said developers prey on cheap lots they can purchase from the City, build, then sell them like the Gateway East project. Next thing you know you have rental property in a neighborhood, and there is no control over that. Mr. Burns stated that every single unit built in Gateway East is owner-occupied. Mr. Bannochie stated that he would appreciate it if the City would stop giving out his telephone number to people who want information about his house. He said people stop on Saturday mornings after the have come from the City Planner's office. He said he did not think that was right. He felt they could get their own information. Councilmember Bolkcom stated that next time maybe he could let the City know. Mr. Bannochie stated that he would. Mr. Bolin stated that to the best of his knowledge no one in the Community Development Department has given out Mr. Bannochie's telephone number, but he would check with staff members. Mr. Stahlberg asked if someone would have the same legal rights if they combined two 25-foot lots. He said his corner lot was tax forfeit property and was valued at $1,800. He said that Anoka County advertised it for auction for $6,000 as a non-conforming lot. They did not know that he owned the lot next door, so he was able to build. He said that residents do not trust government. He said he did not understand why you could build on a 40 foot lot but not on a 45 foot lot. He felt anything could be done if you went to court. Councilmember Bolkcom stated that Council was not going to get some residents to trust them, no matter what decision they make. Mr. Stahlberg stated that the mistrust was because of Council's past performance. Councilmember Bolkcom stated that residents would have to petition Council, appear before the Planning Commission and then have the results forwarded to Council. Mr. Stahlberg stated that he felt that Council would pass this ordinance with all the people in the audience not wanting it. FRIDLEY CITY COUNCIL MEETING OF FEBRUARY 5,2001 PAGE 16 Councilmember Bolkcom stated that there are not a lot of people in the audience. She said this — information has been in the newsletter. She said she has not received any telephone calls. Mr. Stahlberg stated that Council has been very inconsistent and changing its mind especially on variances. Mayor Lund stated that this ordinance was not a done deal. He said Council would like to preserve the integrity of the neighborhood. He said Council would like to come to some kind of agreement with the residents. He said Council was trying to find the best solution. Mr. Burns stated that every home the HRA has purchased has been supported by one or more appraisals. He said it is very difficult to pursuade the HRA to spend extra money. He said the lot the HRA purchased from the Saxes was a non-conforming lot and was appraised at the value that was paid to the Saxes. Mr. Stahlberg stated that he knows people who have had property purchased by the HRA. The houses that are on non-conforming lots have had single garages. Mr. Burns stated that in many cases those homes were not appraised for the amount of the purchase price. That is what fair market value is these days. Mr. Stahlberg asked what a non-conforming lot was. Mr. Burns stated that the HRA paid the price consistent with a non-conforming lot. Mayor Lund stated that does not seem like a lot of money for a lot that is non-conforming or not. He said Council was trying to protect the integrity of the neighborhood by buying the lots and determining if two lots could be combined to make a conforming lot. Councilmember Bolkcom stated that if Mr. Stahlberg gave Council the addresses in question regarding payment from the HRA, staff could research the appraisals and the purchase prices. Councilmember Wolfe stated that he could see both sides of the issue. Mr. Stahlberg stated that he was afraid new houses might be built as cheap as possible and then rented out. He did not think that would be good for the neighborhood. Councilmember Barnette stated that he would not let a house get trashed if he was going to rent it out. He said that would be a dumb investment. Mayor Lund thanked Mr. Stahlberg for coming in. He said Mr. Stahlberg's points were well taken and would be taken under advisement. MOTION by Councilmember Bolkcom to continue the public hearing until March 5. Seconded by Councilmember Barnette. FRIDLEY CITY COUNCIL MEETING OF FEBRUARY 5,2001 PAGE 17 Councilmember Bolkcom asked Mr. Bolin if that was enough time to gather information regarding the vacant lots. Mr. Bolin stated that it should be enough time. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 12. FIRST READING OF AN ORDINANCE RECODIFYING THE FRIDLEY CITY CODE, CHAPTER 205, ENTITLED "ZONING" BY ADDING A NEW SECTION 205.XX, 0-5 RESIDENTIAL LOTS CREATED PRIOR TO 1955 DISTRICT REGULATIONS (ZONING TEXT AMENDMENT, ZTA #00-04, BY THE CITY OF FRIDLEY): MOTION by Councilmember Bolkcom to table the first reading until March 5. Seconded by Councilmember Wolfe. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 13. ESTABLISH A PUBLIC HEARING FOR MARCH 5, 2001, ON AN ORDINANCE AMENDING CHAPTER 7 OF THE FRIDLEY CITY CHARTER PERTAINING TO TAXATION AND FINANCES: MOTION by Councilmember Bolkcom to establish a public hearing for March 5. Seconded by Councilmember Wolfe. Mr. Pete Eisenzimmer, 6535 Oakley Drive, stated that this public hearing was voted on by the residents. He wanted to know why Council was returning to a public hearing. He said that all of a sudden the residents are going to have all these changes. He said he could not believe Council would do this. Mayor Lund stated that this is simply to clarify the wording of the amendment with the full intent of leaving the Charter Amendment intact as far as content. Mr. Knaak stated that this public hearing was a submission by the Charter Commission. This matter was reviewed by them, and there are some language issues that they want Council to consider. The usual process is to have a public hearing and keep it open in the whole process to assure everybody that there would not be any substantive change that would change what the voters had done. That is already the law in the City of Fridley. These issues will be relevant at the public hearing. Mr. Eisenzimmer stated that he would bring this up at the public hearing. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. FRIDLEY CITY COUNCIL MEETING OF FEBRUARY 5,2001 PAGE 18 14. INFORMAL STATUS REPORTS: Mr. Burns stated that he did not have any informal status reports to discuss. ADJOURN: MOTION by Councilmember Barnette to adjourn the meeting. Seconded by Councilmember Wolfe. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE FEBRUARY 5,2001, CITY COUNCIL MEETING ADJOURNED AT 9:58 P.M. Respectfully submitted, / ,160/74, / ' '‘//11('K Signe L. Johnson Scott J. Lund Recording Secretary Mayor