CCM 09/14/2020
CITY COUNCIL MEETING
CITY OF FRIDLEY
SEPTEMBER 14, 2020
The City Council meeting for the City of Fridley was called to order by Mayor Lund at 7:00 p.m.
MEMBERS PRESENT: Mayor Lund
Councilmember Ostwald
Councilmember Tillberry
Councilmember Bolkcom
Councilmember Eggert
OTHERS PRESENT: Scott Hickok, Community Development Director
Ryan George, Deputy Director, Public Safety
Walter Wysopal, City Manager
Andrew Biggerstaff, City Attorney
Paul Bolin, HRA Assistant Executive Director
Jim Casserly, Development Consultant
PROCLAMATIONS:
Constitution Week: September 23-17, 2020
Domestic Violence Awareness Month: October 2020
APPROVAL OF PROPOSED CONSENT AGENDA:
APPROVAL OF CITY COUNCIL MINUTES:
1. City Council Meeting of August 24, 2020.
APPROVED.
NEW BUSINESS:
2. Receive the Minutes from the Planning Commission Meeting of August 19, 2020.
RECEIVED.
3. Adopt Resolution No. 2020-44, Accepting Coronavirus Aid, Relief and Economic
Security Act Funds for Local Government Election Activities.
ADOPTED RESOLUTION NO. 2020-44.
FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 14, 2020 PAGE 2
4. Adopt Resolution No. 2020-45, Appointing Election Judges for the 2020 General Election
and Scheduling a Special Meeting to Canvass the Results of the General Election.
Pam Reynolds, 1241 Norton Ave., stated that this building is now a polling place and several
people who live by the old city hall want to know why their polling place cannot be changed to
the Community Center.
Mayor Lund replied that the Community Center is another polling place for another ward.
Because of COVID, we are looking for new sites and even reaching out to churches to find more
polling places within the precinct but are not having much luck.
Councilmember Bolkcom asked to remove pages 53-55 making the resolution pages 48-52.
ADOPTED RESOLUTION NO. 2020-45.
5. Adopt Resolution No. 2020-46, Adopting the Financial Management Policy Manual for
the City of Fridley and its Component Units.
ADOPTED RESOLUTION NO. 2020-46.
6. Adopt Resolution No. 2020-48, Declaring Costs to be Assessed, Ordering Preparation of
the Proposed Assessment Roll and Directing Publication of a Public Hearing Notice for
Street Rehabilitation Project No. ST-2018-01.
ADOPTED RESOLUTION NO. 2020-48.
7. Adopt Resolution No. 2020-49, Declaring Cost to be Assessed, Ordering Preparation of
the Proposed Assessment Roll and Directing Publication of the Public Hearing Notice for
the Street Rehabilitation Project No. ST-2019-01.
ADOPTED RESOLUTION NO. 2020-49.
8. Adopt Resolution No. 2020-50, Declaring Costs to be Assessed, Ordering Preparation of
the Proposed Assessment Roll and Directing Publication of the Public Hearing Notice for
the Street Rehabilitation Project No. ST-2020-01.
ADOPTED RESOLUTION NO. 2020-50.
9. Adopt Resolution No. 2020-51, Declaring Costs to be Assessed, Ordering Preparation of
the Proposed Assessment Roll, and Directing Publication of the Public Hearing Notice
for the 2020 Nuisance Abatements.
ADOPTED RESOLUTION NO. 2020-51.
10. Adopt Resolution No. 2020-52, Authorizing Execution of Toward Zero Deaths (TZD)
Enforcement Grant Agreement.
FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 14, 2020 PAGE 3
ADOPTED RESOLUTION NO. 2020-52.
11. Approve Change Order No. 1 for the 2020 Street Rehabilitation Project No. ST2020-01.
APPROVED.
12. License.
APPROVED.
13. Claims: ACH PCard – 2020-08; 189985-190201.
APPROVED.
ADOPTION OF PROPOSED CONSENT AGENDA:
MOTION by Councilmember Bolkcom to adopt the proposed consent agenda as presented.
Seconded by Councilmember Tillberry.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY.
OPEN FORUM, VISITORS:
Bruce Brotten brought forth a concern about the removal of the fence along University Avenue
and the plantings of the trees and bushes. He said although it looked great, the fences were there
for the safety of the people living and walking along the Holly Shopping Center area. Neighbors
are worried about the fence not being there and safely walking or biking along University. He
suggested installing a fence or some type of rail to offer protection for the people who live along
that area.
Mayor Lund replied that there were four visionary meetings for public input on University
Avenue and they also had someone from MnDOT who participated and listened. This is the
outcome of those visionary meetings--using natural barriers rather than the fence that was an eye
sore for the last 25 years. Many residents asked for that fence to be taken down. Other
improvements for safety are forthcoming, but at this time we do not know when they will occur.
Councilmember Bolkcom added that many neighbors attended the meetings and the majority
were interested in changing the fence.
Scott Hickok, Community Development Director, said they were very good meetings. One of the
things MnDOT was concerned about was safety if the chain link fence were to come down. A lot
of discussions took place, and all were in the agreement with this decision. There is a berm under
the shrubs and MnDOT used this as an effective alternative to chain link fences. The shrubs will
serve like the fence did when they are fully grown. This will be a natural fence that just gets better
FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 14, 2020 PAGE 4
looking. The landscape will be beautiful by springtime next year. These are varieties of shrubs
and trees identified by MnDOT and the University of Minnesota that work on roadways.
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Jodi Pohl, 695 - 59 Ave. NE, said she is concerned with the new sidewalk that was placed. They
were told people could only park on one side of the pathway, the west side. People are parking on
both sides of the road which makes it very narrow and it is a safety issue especially with winter
coming. She asked if anything was being done about that or if this was the plan to park on both
sides of the street.
Mayor Lund replied they will have Public Works look at that area and see if some signs could be
installed. If this was the way it was designed staff would let her know.
ADOPTION OF AGENDA:
MOTION by Councilmember Bolkcom to adopt the Agenda as presented. Seconded by
Councilmember Tillberry.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY.
OLD BUSINESS:
14. Second Reading of an Ordinance Amending the Fridley City Code, Chapter 12, Tobacco
Products, Revising Definitions, Licensing Procedures, Prohibited Acts, Administrative
Procedures and Violations.
Ryan George, Deputy Director, stated that at the July 27, 2020 City Council meeting the first
reading of Ordinance No. 1381, a Proposed Amendment to the Fridley City Code Chapter 12
(Tobacco Products) was presented. At this meeting the Council asked staff to examine various
aspects of the proposed amendment and answer a few questions and comments from concerned
parties.
Deputy Director George noted that upon consultation with the City Attorney and advocates from
the Association for Nonsmokers of Minnesota, staff determined it was in the best health interests
of the residents of Fridley to keep the restrictions on the sale of flavored tobacco, including
menthol, as it is written in the proposed ordinance. The restriction on flavored tobacco sales is not
a city-wide ban, but a segregation of sales of flavored tobacco to licensed Tobacco Product Shops
in the City. Upon review, other cities in Minnesota and elsewhere have imposed similar restrictions
on the sale of flavored tobacco products, and to date, there does not appear to be significant
litigation related to such provisions.
Deputy Director George stated there are a few other substantive changes since the first reading.
Language in Section 12.09 was removed which provided for penalties for minors who purchase or
attempt to purchase tobacco products. Research provided by the Public Health Law Center is
overwhelming that such penalties do not deter youth from attempting to purchase tobacco. Staff
from the Police Department agree. Section 12.07, Subd. F, bans any smoking or sampling inside
FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 14, 2020 PAGE 5
of any licensed premise. Section 12.04 now restricts the number of licensed Tobacco Product
Shops to five based on feedback from current license holders who are anticipated to apply for the
new license type. Appendix B tracks changes between the first reading of Ordinance No. 1381
presented on July 27, 2020 and the second reading presented tonight.
Deputy Director George said staff were asked to reexamine if Ordinance No. 1381 would require
a public hearing pursuant to the Fridley City Charter (Charter). The Charter does require a public
hearing for any taxation matters, any change to the Comprehensive Plan or any consideration of a
franchise ordinance. Ordinance No. 1381 does not require a public hearing. All licensed tobacco
license holders were notified of the proposed ordinance and its introduction to Council in a letter
sent on June 24, 2020, pursuant to Minnesota Statute §461.19, which requires cities to notify
tobacco license holders of any significant change to local ordinances.
Deputy Director George said staff recommend the City Council make a motion to adopt the
Ordinance No. 1381 on second reading and order publication of the ordinance. approve the second
reading and adoption of Ordinance No. 1381 for a proposed amendment to the Fridley City Code
Chapter 12 (Tobacco Products).
MOTION by Councilmember Bolkcom to receive into record letters that were received after the
packet was distributed. Seconded by Councilmember Ostwald.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY.
Pam Reynolds, 1241 Norton Avenue, said her records show that if Fridley approves this, they will
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be the 16 city in the state of Minnesota to take this on, but there are close to 400 cities in the state
of Minnesota. This might stop a kid from smoking or buying a vape. Her problem is once again
the government is interfering with the free market--tobacco. This is the parents’ responsibility,
not the government’s. This will do a disservice to gas stations and convenience stores and it is
wrong. She is also confused when this will go into effect--May 2021. Based on the ordinance in
Chapter 3 of the City Charter, it would go into effect according to Charter. Chapter 3 also notes
the ordinance is to be read and she requested the ordinance to be read as it is not clear.
Councilmember Bolkcom said that the presentation was very detailed at the last meeting and
asked what reading the ordinance would do.
Ms. Reynolds replied that the ordinance is not clear to everyone. She also noted that the
presentation said it would be effective May 2021, but as written, it says per Chapter 3 of the Charter
which would make it effective in 15 days.
Andrew Biggerstaff, City Attorney, stated the ordinance is effective in 15 days, but the restriction
will not happen on flavored tobacco products until May 2021.
Mayor Lund said this is tightening the free market enterprise. If one industry fails to manage
their business appropriately, the government steps in. It is appropriate to make it harder for kids
to buy cigarettes.
FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 14, 2020 PAGE 6
Councilmember Bolkcom said there are a lot of studies that show if you do not start smoking as
a teenager, you will not smoke. If you do not quit smoking by age 24 the chances of ever quitting
are very low. There is a huge push for young people to use flavored tobacco products because
they do not like the taste of tobacco and flavors make them cool. This is to protect our youth.
Ms. Reynolds said that people should not have to go to a special store if they want to buy menthol
cigarettes. She understands getting rid of vape products, but not menthol products. She withdrew
her request to have the ordinance read.
Yasir Abuhakigah, 1301 Mississippi Street N.E., thanked the city for enforcing the use of
products to those ages 21 years old. If we ban buying flavored tobacco at stores in Fridley,
customers will go to another city to get flavored tobacco. He has been in business in Fridley since
1996. He hires employees who live in Fridley. This ban will make his revenue drop and he does
not want to be forced to fire employees due to decreased revenue. He would be forced to stop
selling and someone could open a tobacco store next door and sell flavored tobacco which does
not make sense. This will impact revenue, foot traffic, and employee’s hours.
Councilmember Ostwald said he was a former tobacco user and started at age 13 but did not
choose flavored tobacco. He grew up with a household of smokers and agrees with raising the age
to 21. Tobacco is bad but is a legal product, legally sold, taxed, regulated, and sold across the
world. A lot of revenue is generated, and it is not fair to businesses that one day they can sell
flavored tobacco and the next day that revenue is going to another business. He does not agree to
take away sales from retail stores. Tobacco is tobacco. He said he could not agree to take away
flavored products from businesses.
Councilmember Bolkcom said there are over 15,000 flavored tobacco products. 67% of high
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school students report using flavored tobacco products. One in ten 8 graders use flavored vapes.
E-cigarettes are harmful to young people as it damages the adolescent brain. We need to do
whatever we can and there are two sides to every story.
Mayor Lund said when he first looked at this, he did not think menthol was flavored, but it is. He
would be happier if the state took this on as a statewide issue. This ends up with cities being on
the cusp and someone has to take charge. We owe it as a Council to help our city and young
people. He plans to vote in favor, he has reviewed this many times and this is the right thing to do
for Fridley.
MOTION by Councilmember Bolkcom to waive the reading of Ordinance No. 1381 and adopt
the ordinance and order publication. Seconded by Councilmember Eggert.
UPON A VOICE VOTE, MAYOR LUND, COUNCILMEMBER TILLBERRY AND
COUNCLMEMBER EGGERT, AND COUNCILMEMBER BOLKCOM VOTING AYE,
AND COUNCILMEMBER OSTWALD VOTING NAY; THE MOTION CARRIED ON A
4 TO 1 VOTE.
FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 14, 2020 PAGE 7
PUBLIC HEARING/NEW BUSINESS:
15. Public Hearing Declaring a Hazardous Building at 5821 Hackmann Avenue N.E.
(Continued July 27, 2020)
and
Adopt Resolution Ordering the Removal or Repair of Public Nuisance/Hazardous
Building Pursuant to Minnesota Statutes, Section 463, Located within the City of Fridley,
Minnesota (Ward 2)
MOTION by Councilmember Eggert to open the public hearing. Seconded by Councilmember
Tillberry.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED AND THE PUBLIC HEARING OPENED AT 7:59 P.M.
Scott Hickok, Community Development Director, stated that on June 22, 2020, the City Council
opened its public hearing regarding the property at 5821 Hackmann Avenue to determine if the
property met the criteria of a public nuisance and whether action should be taken by the City to
remedy that nuisance. The item reappeared on agendas as a continuation of the public hearing on
July 27, 2020 to tonight. Though much work has been done to eliminate sand plumes in the street
and storm sewer, grading and guards to eliminate dangerous potential fall conditions, and
inoperable vehicles have been repaired and made operable, outdoor storage continues to be a
problem on the site.
Mr. Hickok said there are three applicable laws that deal with matters evident on this site. One is
Fridley City Code, Chapter 110 which identifies and allows correction of a public nuisance,
another is Fridley City Code, Chapter 128 that allows the City to eliminate a public nuisance
through abatement and the third is, Minnesota Statute 463 Hazardous Buildings.
Mr. Hickok said Section 110.06 of the City Code authorizes the City to abate a public nuisance if
the owner fails to adequately abate or remediate the nuisance conditions after notice. Council has
determined that the health, safety, general welfare, good order, and convenience of the public is
threatened by certain exterior public nuisances on property within the City limits. It is declared to
be the intention of the City Council to abate such nuisances, and Chapter 128.01 is enacted for that
purpose. Minnesota Statute 463 and the state Building Code, have been relied upon to identify the
retaining wall as a public nuisance and order it abated.
Mr. Hickok said at the June 22, 2020, Council meeting, a public hearing was held regarding this
property and the discussion was centered around the on-site grading, earthwork and retaining wall
work and its potential characteristics as a public nuisance, or otherwise hazardous condition by
virtue of constant incidents of silt on the street and migration to the public storm system, open
excavations, and site locations with unguarded fall potential. Council concurred with the staff
FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 14, 2020 PAGE 8
recommendation to allow the hearing to remain open to allow the owner of the property time to
prepare a plan and make the necessary progress to remove those items of concern.
Mr. Hickok noted the item came back to Council on July 27 and due to significant homeowner
progress that had occurred, staff asked for an additional extension until tonight. To date staff
inspections have revealed that work has continued but is incomplete. The homeowner, Mr.
Westbrook, chose to do the work himself with volunteer help due to project costs matched against
his ability to pay a contractor for this sizeable project. Mr. Westbrook’s summer has been spent
reshaping the contours of the front lawn and eliminating the need for retaining walls in certain
locations. He also made progress to make inoperable vehicles operable by completing the
necessary mechanical work. Staff performed both drive by and/or on-site site daily visits to note
progress and maintained an on-going dialog with Mr. Westbrook. The question before Council is
one of declaration of the site as a public nuisance.
Mr. Hickok stated staff has observed that Mr. Westbrook’s work this summer has allowed him to
eliminate the hazardous building identity as governed by Statute 463. What remains on site is the
nuisance of outdoor storage. There is evidence that Mr. Westbrook has recognized that storage is
a nuisance and must be eliminated; however, work remains to eliminate the remaining
inappropriate, or illegal outdoor storage. Throughout the process, Mr. Westbrook has committed
to working hard to eliminate the nuisance characteristics on his site.
Mr. Hickok said staff recommends approval of this resolution to allow staff to carry out an
abatement of illegal outdoor storage through the provisions of Chapter 128, as is commonly done
by using the procedures outlined in Chapter 128.
Councilmember Eggert said this has been a very frustrating project. There is no required time
limit on landscaping and the homeowner has had his front yard torn up for a couple years. Staff
have worked hard with the residents of Fridley to collaborate and clean up to bring things to
conformance. In 2015, there were storage issues on this site, and we are here today to declare a
public nuisance on storage. The resolution to abate is long overdue and he is voting for this. He
also asked Council to discuss some ideas of what we do on more challenging code enforcements
like this. We want the City to be a collaborative partner in working with residents. As a Council,
we have to deal with things and not allow things to go on this long because it is not acceptable for
the future of Fridley.
Councilmember Bolkcom said she drove by the site yesterday and the big truck has no license
plate on it.
Mr. Hickok replied the license is on the back of it, the front needs a bumper and license on front.
It is registered and licensed.
Councilmember Bolkcom asked what neighbors could expect to see after tonight.
Mr. Hickok replied the area between the driveways would be cleaned up and anything not related
to the landscape project would be removed. There are numerous items like a freezer/refrigerator
that is outside that would be abated. The homeowner has worked hard to get this done and time
FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 14, 2020 PAGE 9
ran out. Staff will make arrangements with the contractor and have the abatement scheduled by
the end of the week. If the area is clean and the contractor has not gone out, he saves himself from
abatement. If not, he will have to pay. Staff is hoping he has his site cleaned up, so it does not
need to be abated.
Councilmember Bolkcom asked if there was anything in the City ordinances that would enforce
the landscaping work to get done.
Mr. Hickok replied people have ongoing landscape projects going all the time, which makes it
very difficult, as people’s gardens get better and more beautiful. This one was a compounded issue
with other stuff going on that makes any progress on the landscape not look good. The only issue
here is outdoor storage.
Councilmember Bolkcom said there is also a lot of stuff in the back yard to be dealt with.
Mr. Hickok said outdoor storage that is inappropriate will be abated in the back yard too.
Councilmember Bolkcom commended Scott and staff for working with the homeowner and
getting a good resolution for the homeowner and the neighborhood.
Councilmember Tillberry asked if this was a reasonable request to get this done. The storage
items have to be taken care of even though there was a lot of progress. He also appreciated the
work of staff on this issue.
Councilmember Eggert said he heard a lot of progress was made on the landscaping, but the
storage issue has been going on all along. A lot of cars are still parked in the driveway because
the garage is full.
Mr. Hickok said he appreciated appreciates everyone’s patience but now is the time to abate the
property and get it cleaned up. This is a nice home, and when everything is done, it will be a nice-
looking property.
Mayor Lund said he is okay with the abatement, but the bigger issue is the landscaping. He said
his concern was that the project was finished.
MOTION by Commissioner Eggert to close the public hearing. Seconded by Commissioner
Ostwald.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED AND THE PUBLIC HEARING CLOSED AT 8:25 P.M.
MOTION by Commissioner Eggert to adopt Resolution No. 2020-34. Seconded by
Councilmember Bolkcom.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY.
FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 14, 2020 PAGE 10
16. Public Hearing on a Rezoning Request, ZOA #20-01, by Roers Companies, to have the
Property Located at 6530 University Avenue Rezoned from mC-3, General Shopping,
to S-2, Redevelopment District, to Allow for the Construction of a Market Rate Rental
Housing building and a Stand-Alone Daycare Center;
and
First Reading of Ordinance No. 1383 to Amend the City Code of the City of Fridley,
Minnesota, by Making a Change in Zoning Districts.
MOTION by Councilmember Bolkcom to open the public hearing. Seconded by Councilmember
Tillberry.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED AND THE PUBLIC HEARING OPENED AT 8:26 P.M.
Scott Hickok, Community Development Director, stated the petitioner, Shane LaFave, Director
of Development with Roers Companies is requesting to have the property known as the Holly
Center at 6530 University Avenue rezoned from C-3, General Shopping to S-2, Redevelopment
District. When a property is zoned S-2, Redevelopment District, a master plan also needs to be
approved for the site. As a result, the petitioner is looking for rezoning and master plan approval
to allow for the construction of a 261-unit multi-family rental housing development and a free-
standing commercial building.
Mr. Hickok said a public hearing notice before the Planning Commission and the City Council
was published in the Life Newspaper on August 7, 2020. At the August 19, 2020 Planning
Commission meeting, a public hearing was held for ZOA #2001. Three letters were received from
neighboring properties owners prior to the meeting and those were entered into the record. Several
members of the public were present at the Planning Commission meeting and expressed concerns
about the rezoning and the proposed development. The people who spoke at the meeting were
concerned about rezoning commercial property for a multi-family building, the City’s need for
more commercial uses not multi-family, and other concerns related to the number of units proposed
and traffic related to those units.
Mr. Hickok said the Planning Commission recommended approval of Rezoning, ZOA #20-01
based on the following: the traffic study was completed by experts and the traffic count numbers
are reflected by the uses proposed. The community’s desire for commercial is understood by the
Commission, however the market for commercial users has proven to not be viable by the lack of
interest in this site. All and all the Commission thought this was a good project and an overall
improvement for the site. The Commission recommended a modification to stipulation, #3 bullet
d. to require the petitioner to work with City staff during the permitting process to protect and/or
replace as many trees as possible along the northern property line and replace fence sections or
replace the entire fence if it is determined that the fence is not salvageable. The motion carried
unanimously.
FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 14, 2020 PAGE 11
Mr. Hickok noted that traffic counts on Mississippi Street, west of University Avenue and traffic
have declined over the years. The latest census data shows that the dominant commuting choice
for Fridley residents is driving, however alternatives transportation modes have shown a
significant increase. Carpooling increased from 7.8% to 13.7% from 2009 to 2014 and the
percentage of people taking transit increased by 4.7% too. Alternative transportation contributes
to the declined in daily traffic counts on Mississippi Street. Other factors, like an increase in
people working from home can also play a part.
Mr. Hickok said the traffic study that was completed by Swing Traffic Solutions states that the
new development will generate 82 inbound and 121 outbound trips during the morning traffic peak
hour (7:00 a.m.-8:00 a.m.) and will generate 122 inbound trips and 103 outbound trips during the
afternoon traffic peak hour (4:30 p.m.-5:30 p.m.) Additional trips will occur to and from the site
during the day; however, those will not be as high as the peak hours. The numbers provided are
based on the 261-unit multi-family building and a daycare use. If the commercial building is
occupied by a commercial user other than a daycare, the numbers will likely go down.
Mr. Hickok stated in the No Build Scenario (Holly Center remains a commercial shopping center)
and the Build Scenario (new multi-family and daycare use buildings constructed), each intersection
gets a letter grade of “B” in the a.m. and “C” in the p.m., so both are and will continue to operate
well, with minimal changes. With respect to traffic impacts to 3rd Street, Assistant City Engineer
Jon Lennander states that the potential increase of traffic on 3rd Street would likely be related to
vehicles getting lost and inadvertently turning on 3rd Street. It would always be faster to take
Mississippi to University or Mississippi to East River Road to go anywhere from the proposed
project. Long-term, this development would not increase the number of trips through the
neighborhood over what is currently observed with Holly Center. There would not be a good
reason to put a round-about here, as there is not enough land area to construct it without pushing
it entirely onto the Roers site. A round-about works for roads where there are multiple legs with
high counts. A large majority of the traffic at the intersection of 3rd and Mississippi is through
traffic on Mississippi and there are relatively few cars entering from 3rd Street.
Mr. Hickok noted that traffic consultant Vern Swing, PE, reviewed the impact of traffic operations
of the 3rd Street N.E. approach to the Mississippi Street N.E. said he did not think traffic control
changes were needed or warranted. He also said the volumes on the minor approaches to
Mississippi Street do not balance well with the volumes on Mississippi Street which is not ideal.
They are also expensive to construct and should not be installed until they are warranted.
Mr. Hickok stated that there were some questions about impacts to schools and the demographics
of school-aged children that live in apartments. The best information staff found related to this
question comes from the National Multifamily Housing Council, a non-profit trade and advocacy
group that is made up of owners, managers & developers representing apartments housing 40
million Americans. Combining an annual survey of their members along with the US Census
community surveys, they have determined that there are typically 23.3 children per 100
multifamily rental households. Extrapolating this out to the proposed 261-unit development, there
will likely be 61 school aged children between 6- and 17-years old living in the complex. Looking
at the share of households with school age children, nationally, only 15% of multifamily renters
FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 14, 2020 PAGE 12
have school age children. This could be taken to mean that the 61 school aged children will be
spread out over 39 apartment units.
Mr. Hickok said that the Holly Center property has been on the market for sale since the fall of
2018. Commercial retail and restaurant users have been and continue to struggle in the
marketplace. As more shopping has moved on-line, many retailers have failed and may shopping
centers across the country are being redeveloped with some component of housing. During the
last two Comprehensive Planning processes, the Holly Center has been identified as a potential
redevelopment area. The 2040 Comp Plan guides the property as a mix of multi-family and
commercial, which is the petitioner’s intent with this project.
Mr. Hickok stated City staff recommends concurrence with the Planning Commission. Staff also
recommends First Reading of accompanying Ordinance No. 1383, modifying the zoning from its
current C-3, General Shopping District, to S-2 Redevelopment District. City staff recommends
the following stipulations on Rezoning and Master Plan, ZOA #20-01.
1. The property shall be developed in accordance with the site plan submitted for “Fridley
Multi-Family”, page #C2-1, by Loucks, dated 08/12/2020.
2. The exterior building elevations shall be developed in accordance with the architectural
exterior elevation’s sheets submitted by Kaas Wilson Architects.
3. The petitioner shall meet all requirements set forth by:
a. The Building Code
b. The Fire Code
c. The City’s Engineering department – related to grading, drainage, storm pond
maintenance agreement, utilities, and utility connection fees
d. The City’s Planning department – related to landscaping (the petitioner shall
work with City staff during the permitting process to protect and/or replace as
many trees as possible along the northern property line and replace fence
sections or replace the entire fence if it’s determined that the fence is not
salvageable), signage, parking, setback, and sidewalk/trail connections.
e. The Rice Creek Watershed District
f. The Minnesota Department of Transportation g. Anoka County
4. If the square footage of the footprint of any of the buildings proposed changes by more
than 10%, a S-2 master plan amendment shall be required.
5. The petitioner shall dedicate a trail easement along the eastern property line that
connects the residential neighborhood to the north to the sidewalk on the southeast
corner of the site, if it is determined that the trail connection is required to be solely or
partially on the subject property.
Councilmember Bolkcom asked about the traffic counts and if they were similar to the Cielo
development.
Mr. Hickok replied that there are similar trends. People do not leave at the same time as they
have different work schedules. For the number of units, the traffic is very manageable.
FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 14, 2020 PAGE 13
Councilmember Bolkcom said there were comments about this new development causing land
values to go down. She asked if the land values were compromised around the Cielo development.
Mr. Hickok said it was hard to rationalize, but Holly Center has a value of $5 million, and the
value has been diminishing over time. As land value decline, it has difficulty with tenants shining
in a very visible area of Fridley. With this new development, valued at $38 million, it will be
difficult to find diminished values of homes in the area.
Councilmember Bolkcom said homeowners by the Cielo apartments have said there is less noise
pollution as they are more protected from University Avenue. This development could provide
something similar.
Councilmember Bolkcom asked about Mississippi Street, traffic counts and what may be
developed in that area.
Mr. Hickok replied that MnDOT and the County Highway Department have been involved all
along in reviewing the plans. Plans for this area only get better for safety by broadening corners
for crossing to enhance the experience of people using Mississippi Street. Good things are planned
in the distant future for Mississippi Street to take into account what is happening on this site. The
HRA land will help enhance the developer’s experience on this roadway and give adequate space
for a turn lane.
Councilmember Bolkcom asked staff to explain the Comprehensive Plan for those who do not
know what it is.
Mr. Hickok replied that the Comprehensive Plan is developed by the Commissions, Council and
staff who go through the process every 10 years in advance to see what we want our city to be,
what development needs to be considered, etc. We have a 20-year plan and we have highlighted
areas destined for redevelopment. This developer looked at the Comprehensive Plan and looked
at areas that were highlighted for potential redevelopment areas. What is being requested is related
to zoning. The Comprehensive Plan and zoning need to align and what is in the Comprehensive
Plan is a redevelopment district.
Councilmember Bolkcom said that people think Fridley has enough apartment complexes. She
asked for a breakdown on our community vs other communities.
Mr. Hickok shared ownership (60%) vs rental (40%) in Fridley. It would be nice to have other
types of housing, but we are starting to see a variety of housing in senior and general rental. Many
residents say their kids grew up in Fridley but cannot move back here because there are not enough
housing options. Apartments with modern amenities are what people are looking for.
Councilmember Bolkcom asked if this item would come back to Council if a daycare did not go
in.
FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 14, 2020 PAGE 14
Mr. Hickok said it is a commercial building and would not be a requirement for a daycare, but
that is the developer’s desire and a nice match. Otherwise the developer could use it for a 10,000
square foot commercial building.
Councilmember Eggert noted that there are not many projects doing retail right now and projects
are going to housing. There are not many options; industrial, office and warehouse, or
manufacturing.
Mr. Hickok replied that the S2 redevelopment district was predicated on a master plan. Council
has the broadest discretion in rezoning, and it has to fit.
Peter Borman, 157 River Edge Way, said he agreed that something needs to be done at this
location. He said he had a concern about traffic and density and asked what the definition was of
mixed use.
Mayor Lund replied that mixed use is wide open and can be a small amount of one and large
amount of another. In a perfect world going back a few years the main floor would be retail with
housing above. That would be a great model, but the reality is that retail is dying.
Mr. Borman is concerned about the density of the Cielo apartments; it is spread over a three-
block area. He was curious when it was decided to become a TIF district why that was not
presented at the Planning Commission.
Mayor Lund replied that discussion was held at the HRA meeting last week, and it is pretty typical
that a TIF district will occur in just about any redevelopment.
Councilmember Bolkcom asked what Mr. Borman’s concern or question was.
Mr. Borman replied an increase in tax for the City with this development. A TIF district relies
on taxes collected on this development.
Mr. Hickok noted that in a TIF district, the developer continues to pay taxes. The value of the
property is frozen at the rate it is at right now as the Holly Shopping Center, $5.0m. This continues
to generate tax dollars in a pool that is used for extraordinary costs. The developer has to be able
to demonstrate what the funds will be used for. The building will be torn down and infrastructure
has to be rebuilt which are extraordinary costs. When the TIF expires and there is a large new
development valued at $38m, they are paying full taxes.
Councilmember Bolkcom added that any developer would like to go where there is pristine land,
soils are removed and mitigated. This is why we have TIF--to make this work for any developer.
Mr. Borman asked about the intersection on Third Street and if the HRA land would be used to
straighten turn lanes or the entrance into the location.
FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 14, 2020 PAGE 15
Mr. Hickok replied the HRA owns the land along the sidewalk by Mississippi Street. Negotiations
were made with the HRA and Anoka County to determine what is necessary to make a turn lane
work in this area and it can happen with this extra land from the HRA.
Mr. Borman asked what was going to be done to improve the underpass where there are three
intersections.
Mr. Hickok replied that STS Swing Traffic Solutions did the traffic and management plan.
Information can be found on the website under tonight’s agenda packet.
Carol Blomberg, 6424 Christenson Lane N.E., said she thought everything was outlined very
well, but she has a large concern about the traffic and would like to know the date the traffic was
looked at. If it was during COVID, a lot of people are working from home and it would not be a
true statement for what is normal.
Mayor Lund noted that the staff report said that over a long period of time traffic has decreased
in this area.
Mr. Hickok said that a number of different things are done to make these determinations. They
use Synchro/SimTraffic 10 Software Analysis that is based on a large pool of information using
national statistics. The study does not take into consideration how well or not well Holly Center
was doing. It does takes into consideration how many average daily trips will come out of this
development based on standards versus coming out of a shopping center this size. Putting this into
the model lets us know what is happening in our city.
Councilmember Eggert said he wished he had traffic like this in his area. There is a lot of traffic
in his residential area.
Rita Dall, 6141 Starlite Boulevard, said that neighbors will leave and not put up with this--put in
a coffee shop, day care center or small businesses. Lots of apartments are going in and everyone
is trying to escape Minneapolis and are coming to Fridley. This is no longer the little, small
community that people are looking for.
Patrick Chase, 291 Rice Creek Terrace, said he lives 2-3 blocks behind Holly Center and is
concerned about what has happened in Fridley since the riots in Minneapolis and COVID. Now
we are building a large apartment complex for people who may not have jobs because the jobs in
Minneapolis and businesses are diminishing. He would like to see police reports and problems
related to apartment complexes.
Mayor Lund asked Mr. Chase to stick with questions or concerns related to this agenda item.
Mr. Chase said he was concerned how the developer would fill the property with tenants.
Mayor Lund replied that this is not new, Cielo is a newer complex and people said that would
never fill up because rents were too expensive, and the apartments were filled in half the time that
was anticipated. The Cielo developer thought the first building would take a year to fill and five
FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 14, 2020 PAGE 16
months after they opened the first building, they were ready to build the second building. It is not
the City that is driving this development, it is the market forces. There is a demand for apartment
buildings right now. It is astronomical. He said he would love for this intersection to be a
downtown for Fridley, but we will never see that. He said he did not want to see an empty site
sitting vacant because we are not moving toward the forces at play. Retail is dead and dying and
the only other option is housing.
Mr. Chase said the conditions and reality of the Twin Cities are not the same as they were a year
ago. Those changing conditions have to have an impact on our decisions today. In the meantime,
a report from the police since the riots, would be helpful as to how it would affect hm.
Mayor Lund replied that Fridley had one evening before the National Guard came in and the
police were stationed around the City. Some people ended up at Northtown and several were
arrested. There was also an incident at the Pawn Shop but other than that, nothing else is to be
reported.
Ryan George, Deputy Director, said that staff were working to protect retail and high-profile
areas. They maintained the border extremely well in Fridley and sent a clear message that behavior
like that would not be tolerated in the city of Fridley.
Councilmember Bolkcom asked how this affected building a new complex for people who have
jobs.
Mr. Chase said businesses are moving out and people who work downtown move away. We are
losing jobs and there is high unemployment.
Mayor Lund noted that Fridley gained thousands of jobs. Restaurants are closing and retail is not
happening on this site. There are more people working here during the day than sleeping at night
due to the vast amount of industries located in Fridley.
Councilmember Bolkcom noted that they have not had any issues with Cielo. Tenants who do
not behave, do not stay. People pay a lot of money to rent these apartments and it does not sound
right that this complex will bring in rioting to Fridley. There is a code of conduct and people can
lose their license if tenants do not behave. The problems are smaller complexes, not the big
apartment complexes. People are screened and must meet income requirements.
Mr. Chase said that the Rice Creek Townhouses slowly went downhill and was a hot spot for
crime. That development started off with high expectations.
Ryan Evanson, 1316 Hillcrest Drive N.E., said he is in favor of this development. He grew up in
Brooklyn Center and chose Fridley because he saw the potential it has. Having 260 new doors
inviting new people into the community to become long-term residents is great. This is a way to
introduce Fridley and create a positive community. This will be the next generation of
homeowners. Look at the north loop along the Mississippi River, that redevelopment was made
into apartments and brought jobs and revitalized a dead property. We want this to be a community
where people want to stay.
FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 14, 2020 PAGE 17
Mayor Lund agreed that apartments are needed, and we are fortunate to be able to take a negative
site and turn it into a positive site.
Councilmember Tillberry said that Mr. Evanson described his situation. He said he started out
in an apartment and stayed in Fridley and now owns a house in Fridley not far from this
development.
Mr. Borman said he is not against apartments, just soften it up. This will create a lot of density
in that one area and he already pointed out his traffic concerns.
Jana Anderson, has been checking with professional realtors about the situation and she has been
told when a lot of rental units are in the area, the home property can be reduced by 20% and be
hard to sell. She has lived here for 19 years and friendly Fridley is the truth. She has pride in
ownership so is there a reason why we are not having condominiums built rather than apartments?
There are no places to buy and it is a sellers’ market.
Mayor Lund replied that he would love to see more single-family homes built, but Fridley is fully
developed. Single family homes would not be financially possible on this property.
Ms. Anderson asked who is responsible for refacing properties. Why is there no ordinance if you
own a business to keep them looking nice? Why does do apartments have to be built on this
property?
Mayor Lund replied that the City does not have that control over private businesses. We have
code enforcement, but we have limited abilities to enforce business updates. It has been tough to
get restaurants to come to Fridley.
Cindy Flynn, 5427 Christenson Lane, said that a lot of people were at the Planning Commission
meeting and they acted like it was already a done deal. There must be something more in Fridley
that can be built than apartments. Cielo apartments are an eyesore and it is demoralizing that this
is what Fridley is.
Councilmember Eggert noted that no one can get financing to build a restaurant. It is a very
difficult time. One of the strengths of Fridley is access. We have 90 restaurants in this area, and
we are fortunate to have access to highways to go to different restaurants.
th
Linda Neukircher, 5617 5 Street N.E., asked what draws people to Fridley.
Mayor Lund noted that 2,300 new jobs were created by BAE Systems.
Ms. Neukircher said retail does not exist, but we could set an example and create a dinner theater
or something. She asked what Fridley was famous for.
Mayor Lund said the other option is to let Holly Center continue to depreciate.
FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 14, 2020 PAGE 18
Ms. Neukircher said that mixed usage would bring value to the City, not a warehouse of people.
Shane LaFave, Roers Company, said they have not considered condominiums because lenders
are not financing condos and it takes an incredible amount of money upfront. What works in
today’s market is multi-family housing and there is a strong demand for it. Many people entering
the housing market do not want to take care of a home. Job changes are frequent now days and
people move around a few times before they settle down. On average, people stay in apartments
2.4 years and others stay longer. Tenants must sign a 1-year lease. He would love to have a
daycare on this site. If that does not work out, they are open to a number of other options. We
want something that would be a great amenity for the building and surrounding residents. A
restaurant would be tough in this market today. As construction happens things may change.
Councilmember Eggert asked Mr. LaFave to talk about what Roers was recognized for recently.
Mr. LaFave replied at a project down in Burnsville, they worked with a building that had 2,000
square feet retail space that was turned into office suites. We have a number of projects all over
the city and will be your neighbor for a long time.
Councilmember Bolkcom asked about the discussion regarding fences and trees and if they could
work with the neighborhood to do some better landscaping around the back.
Mr. LaFave replied that they will work closely with staff on that area and save as many trees as
possible.
Councilmember Ostwald said there have been extensive site surveys; he asked about the
mechanical condition of the current building.
Mr. LaFave replied that the building is old, blighted, has a deteriorated roof system, and is at a
state that is beyond functional life. Repairs that have been made are minimal. This building would
take an incredible amount of money to fix and cost more to repair than revenue could bring in.
Councilmember Ostwald said that the old gas station on site, garage and dry cleaning will need
some environmental cleanup and the TIF will help with those costs.
MOTION by Councilmember Bolkcom to close the public hearing. Seconded by Councilmember
Tillberry.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED AND THE PUBLIC HEARING CLOSED AT 10:23 P.M.
MOTION by Councilmember Ostwald to waive the reading of Ordinance No. 1383 and adopt the
ordinance on first reading. Seconded by Councilmember Bolkcom.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY.
FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 14, 2020 PAGE 19
17. Public Hearing Creating Tax Increment Financing District No. 225 for Holly Center,
Located at 6530 University Avenue N.E. (Ward 3).
MOTION by Councilmember Bolkcom to open the public hearing. Seconded by Councilmember
Tillberry.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED AND THE PUBLIC HEARING OPENED AT 10:25 P.M.
Paul Bolin, HRA Assistant Executive Director, stated that Roers Companies would like to
purchase, demolish, and replace the Holly Center with 261 units of market rate rental housing and
a stand-alone commercial building. The apartment will contain 67 studio units, 109 one-bedroom
units, 59 two-bedroom units and 26 three-bedroom units. The proposed commercial building will
be 10,000 square feet and Roers is hoping to attract a daycare center as the principal user of the
building.
Mr. Bolin said that the rents generated are not enough to cover all of the extraordinary
redevelopment costs and this potential project is no different. In addition to the extraordinary cost
of demolishing the old building, utilities need to be replaced and environmental issues cleaned up.
The redeveloper has asked that the Housing & Redevelopment Authority provide tax increment to
help cover a portion of the estimated $10M in extraordinary costs. The property is currently valued
at less than $5M. When completed, the proposed project will be valued at approximately $36M.
Mr. Bolin noted that the redevelopment of the Holly Center has been a top priority for residents,
as reflected in the outreach efforts the City had undertaken when developing the 2030 and 2040
comprehensive plans. Additionally, the Authority is charged in MN Statutes to provide housing
for persons of all incomes, in accordance with the City’s comprehensive plan. Not only does this
project redevelop a site, targeted in the Comprehensive Plan, it fills a rental rate niche.
Mr. Bolin said that in addition to delivering on the desires of the community, there were a number
of potential Recognized Environmental Conditions (RECs) identified by the redevelopers
engineering firm. There are dry cleaner solvents, petroleum and fill of unknown origin that will
need to be remediated as part of the redevelopment. These are extraordinary costs that can be
reimbursed through tax increment.
Mr. Bolin stated that the City’s Planning Commission met on August 16th to act on the
preliminary plat and rezoning of the property. The Planning Commission unanimously approved
the preliminary plat and rezoning. The City’s Housing & Redevelopment Authority adopted a
resolution approving the creation of TIF District #25, at their regular meeting on September 3,
2020. Staff recommends that the Council hold the public hearing for the creation of TIF District
#25.
Mayor Lund asked if the amount of the TIF being created would be $8.1m.
Jim Casserly, Development Consultant, replied that is correct. The tax increment plan creates a
cash flow and that is part of the plan and is based on the present value. HRA will keep 10% to run
FRIDLEY CITY COUNCIL MEETING OF SEPTEMBER 14, 2020 PAGE 20
and administer the program and the maximum duration is 25 years. The note is for a defined
amount so the district may end earlier if the note is paid out or the total amount of expenses does
not reach $8.1m. The note is not provided until the project is completed.
MOTION by Councilmember Bolkcom to close the public hearing. Seconded by Councilmember
Tillberry.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED AND THE PUBLIC HEARING CLOSED AT 10:39 P.M.
18. Resolution Modifying the Redevelopment Plan for Redevelopment Project No. 1 and the
Tax Increment Financing Plans for Tax Increment Financing Districts Nos. 6, 11-13 AND
17-24 to Reflect Increased Project Costs and Increased Bonding Authority Within
Redevelopment Project No. 1, Creating a Tax Increment Financing District No. 25 and
Adopting a Tax Increment Financing Plan Relating Thereto (Holly Center) (Ward 3).
MOTION by Councilmember Bolkcom to adopt Resolution No. 47. Seconded by
Councilmember Tillberry.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY.
19. Informal Status Reports:
Scott Hickok, Community Development Director, said the next recycling date is scheduled for
November 14.
Mayor Lund said that the Fire Department Open House is October 3.
Councilmember Eggert said Night to Unite is on for October 6.
ADJOURN:
MOTION by Councilmember Ostwald to adjourn. Seconded by Councilmember Eggert.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY AND THE MEETING ADJOURNED AT 10:42
P.M.
Respectfully submitted,
Krista Peterson Scott J. Lund
Recording Secretary Mayor