06/10/1974 - 00015822��_
THE MINUTES OF THE PUBLIC HEARING MEETING OF THE FRIDLEY CITY COUNCIL OF JUNE 10, 1974
The Public Hearing meeting of the Fridley City Council of June 10, 1974 was called
to order at 7:38 P.M, by Mayor Lieb7.
PLEDGE OF ALLEGIANCE
Mayor Liebl led the Council and the audience in saying the Pledge of Allegiance
to the Flag.
RDLL CALL:
MEMBERS PRESENT: Councilman Nee, Councilman Breider, Councilman Starwalt,
Mayor Liebl and Counci7man Utter.
MEMBERS ABSENT: None.
ADOPTION OF AGENDA:
Mayor Liebl said the following items would be added to the agenda:
Bids for Fencing on Commons Basebal7 Diamond #1.
Discussion on Project #103 settlement with Suburban Engineering and Bonding
Company.
Mayor Liebl said he would also like to add the �isitor's section to enahle Dr.
Don Wright to address the Council.
MOTION by Councilman Starwalt to adopt the agenda as amended by the addition of the
previously mentioned items. Seconded by Councilman Nee. Upon a voice vote, al7
voting aye, Mayor Liebl declared the motion carried unanimous7y.
VISITORS:
DR. DONALD WRIGHT, 135 GLEN CREEK ROAD: COMPLAINT CONCERNING REGISTRATION FOR
SUMMER RECREATION PROGRAM:
Dr. Wright addressed the Council and explained he had tried to register his
children for the summer recreation activities and had been advised that he could
not register them by the Parks and Recreation Department and also the Parks and
Recreation Commission. He said this is a new ruling and explained he had been
registering his children for this program for the past eight years, and it had
been possible to send the children to register at the park when the program
started. He said after he had discussed this matter with Mr. Paul Brown, Director
of Parks and Recreation, Mr. Brown had referred him to Mr. Donald Blair, Chairman
of the Parks and Recreation Commission. Dr. Wright continued, he had asked Mr.
B1air if there was anything that could he done to place the children in the program
and Mr. Blair said no. He stated there would be no compromise. Dr. Wright said
he had talked to the people in the appropriate Department and had received no
satisfaction and his only recourse had been to come to Counci7, asking for some
reconsideration in this policy.
MOTION by Councilman Utter to authorize the Administration to review the policy
and contact Dr. Wri9ht with a satisfactory answer. Seconded by Counci7man Nee.
Upon a voice vote, all voting aye, Mayor Lieb7 declared the motion carried
unanimously.
PUBLIC HEARINGS:
PUBLIC HEARING ON A REZONING REQUEST
COMPANY TO REZONE
MOTION by Councilman Nee to waive the reading of the Public Hearing Notice.
Seconded by Counciman Utter. Upon a voice vote, all voting aye, Mayor Lie61
declared the motion carried unanimous7y and stated the public hearing had heen
opened at 7:55 P.M.
The Assistant Engineer, Mr. Richard Sobiech, explained that the request had
initially been only for remodeling and relandscaping and this could have been
handled by a Special Use Permit. He explained after this, the Company felt they
wanted to construct a loading dock and this was in the area of the property where
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PUBLiC HEARING MEETING OF JUNE 10, 1974 PAGE 2
the zoning is R-1 at the present time. He said in order to proceed with the
proposed construction, there would have to be a zom ng change. Mr. Sobiech explained
that at the time that the property was purchased, it was not known that half of
it was commercial and half was residential. He said the rezoning request would
be to enable the applicant to construct a loading dock and remodel the facilities.
Mr. Frank Niznick, 191 Liberty Street N. E, addressed the Counci] and said this
' may effect the evaluation of the residential area and increase the traff�c. He
said it is the general concurrance of the area people that there is a lot of
traffic at the present time, and if there was any expansion, there would be more.
Mr. Clarence Godlewski, 228 Ely Street N. E, addressed the Counci] and questioned
why there had been a request for an increase^in the amount of parking space. He
said there was five stalls and they are to install ten. He pointed out that there
would be houses across from this facility, the zoning is R-l.
Mayor Lieb] said there would be no problems with the improvement of the front of
the building there would be flagstone installed and also planting of shrubs.
Councilman Nee said the plans do not cal7 for the expanding of the building.
Mr, Godlewski said if there would be any future expansion, this would be to the
hack of the building. He said it would be possible to build a big building and
increase the truck traffic in this area.
The Assistant Engineer said the property would have to be rezoned to constuct the
loading docks, they cannot be constructed in an R-1 area. The Assistant Engineer
said there are three lots be�ween the building and the railroad tracks.
MOTION by Councilman Nee to close the Public Hearing on the rezoning request by
Berkeley Pump Company. Seconded by Councilman Starwalt. Upon a voice vote, all
� voting aye, Mayor Liebl declared the motion carried unanimously and the Publ�c
Hearing closed at 8:16 P.M.
PUBLIC HEARING ON FINAL PLAT, GRACE HIGH SCHOOL A�DITION, P. S. #74-02; GENERALLY
MOTION by Councilman Utter to waive the reading of the Public Hearing Notice.
Seconded by Councilman Nee. Upon a voice vote, all voting aye, Mayor Lieb7 declared
the motion carried unanimous7y and the Public Hearing on the Final Plat for Grace
High School Addition opened at 8:17 P,M.
The Assistant Engineer said the plat was composed of two blocks; the first would
contain the Grace High School and their recreational grounds and the second proposed
block would contain 14 residential lots. He pointed out that the Planning Comtnission
had recommended approval of the plat with five stipulations. The Assistant Engineer
read the stipulations.
Mayor Liebl asked if Mr. Julius was present and if he agreed with the five stipulations.
Mr. Julius addressed the Council and said he had talked to the people from the
Archdiocese, and they concur with the five stipulations.
Councilman Utter in referring to item #4 reca7led there had been quite a lenghty
discussion at the Council the previous week concerning �ust such a donation to the
park facilities. He stated, this area is lacking in facilities for recreation at
� the present time. He said there is no park or playground for the young people,
only a hockey rink in the winter months. He said this area could use a baseball
diamond. He pointed out that the recreational equipment had been removed from the
Gardena School grounds because of the liability.
Counci7man Breider said he felt Counci7man Utter's remark would apply to this
area and he agreed there should be some kind of iron clad agreement for this usage
of the Grace High School property. He said this should be done before the plat
is signed by the City. He said the stipulation is an open ended statement and
there should be some signed agreement. He said he would want to know what the
fourth stipulation wou1d mean. He again stated, the Counci7 should know what they
are talking about before they agree to waive the payment of fees to the park system
in lteu of land contribution. He said this would have to be done before the plat
is signed.
The City Attorney said there is an agreement with the Public School Systems for this
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PUBLIC HEARING MEETING OF JUNE 10, 1974
PAGE 3
type of use of their facilities. He said this agreement could be modified and
used in this instance. He said tnis wou7d allow the use of the facility for
City activittes when the facility is not being used by the school.
MOTION by Counciiman Starwali to close the Pub7ic Hearing. Second�d by Councilman
Utter. Upon a voice vote, all voting aye, Mayor Liebl declared the motion carried
unanimous7y and the Public Hearing on the Final Plat, Grace High School Addition
closed at 8:31 P.M.
The City Manager said it may take some time to come back with the details on this
plan and said this may not be at the next regular meeting of the Council. Mr. Julius
stated there is no rush with this plat. They had hoped to sell the lots, they
had not planned to develop them.
NEW BUSINESS:
CONSI�ERATION OF A VARIANCE REOUESTED BY PACO MASONRY
MOTION by Councilman Breider to grant tentative approval of the variances subject
to the approval of the Board of Appeals with the exception of the last variance
as listed in the communication from Jerry Boardman, Planning Assistant, dated
June 5, 7974, because th9s is against the spirit of the development of the area.
Seconded by Councilman Utter. Upon a voice vote, all voting aye, Mayor Liebl
declared the motion carried unanimously.
CONSIDERATI
MOTION by Councilman Nee to concur with the action and recommendation of the
Board of Appeals on the variance request by Norman Taylor for 590 Fairmont
Street N, E. Seconded by Councilman Utter.
The City Manager said this item had come up and since the Council may not
be meeting the following week because of the Silver Jubilee, it was brought to the
Councii before it had been reviewed by the Board of Appeais.
Mayor Liebl said according to the conanunication from Mr, Boardman, there wou7d be
no problems in the granting of the variance.
U°ON A VOICE VOTE, all voting aye, Mayor Liebl declared the motion carried
unanimously.
Mayor Liebl pointed out that the action of the Board of Appeals at their meeting
the following evenrng would be final.
F
IN
OF
Mayor Liebl said this proposal would be to lower the amount of interest 6eing
paid by the City for the bonds. He stated if the refunding bonds would not obtain
a buyer, the City would not have to sell the bonds. He stated it would be to
refinance the bonds.
Councilman Breider questioned the portion that would not allow this transaction
if the reduction is �% or 7ess. He asked if the Counci] could review th�s matter
again if this s�tuation arose. He asked if at the present time the Council would
be giving final approval on the bond issue.
The Finance Director explained this would not be the present action. He said they
were only asking to enter tnto a contract with the First National Bank of 5t. Paul
to research the feasibility of this advance refunding bond issue. He further
explained there would have to be Council action on Resolutions to sell and award
the bonds. The Finance Director said there are many checks and balances in the
whole procedure. He said at the present time, the Counci7 would be voicing their
interest in exploring the possibility.
Councilman Breider asked hy stating, this would not be any cost to the City.
The Finance Director said this was correct, there would be no cost to the City.
He said a new issue of bonds would be made by predetermined sets of goverment
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PUBLIC HEARING MEETING OF JUNE 1Q, 1974 PAGE 4
secur�ties and the principle and interest would be enough to take care of the
cost of the bond issue. He said the new rate of �nterest on these bonds would
be 5.75%.
MOTION by Councilman Nee to authorize the Mayor and City Manager to enter into
a contract with the First National Bank of St. Paul for the advance refunding
� bond issue in the amount of $1,355,000. Seconded by Councilman Breider. Upon
a voice vote, all voting aye, Mayor Liebl declared the motion carried unanimously.
RECEIVING THE MINUTES OF THE PLANNING COMMISSION MEETING OF JUNE 5, 1974:
CONSIDERATION OF AMENDING CHAPTER 205, SECTION 205.051, PARAGRAPH 2, A,
ACCESSORY USES, OF THE CITY CODE OF THE CITY OF FRIDLEY:
MOTION by Councilman Breider to concur with the recommendation of the Planning
Commission and set a Public Hearing for �uly 8, 1974 on the proposed amendment
to the Fridley City Code, and to instruct the City Attorney to prepare the
necessary ordinance. Seconded by Councilman Utter.
Councilman Utter said he knew of a person who had erected a metal building the
previous Sunday that was oversized, and did not know he needed a building
permit for this installation,
Mayor Liebl stated that some people want to put up the sheds for their riding
lawn mowers. He said as talked about by the Planning Commission, the size
requirements should be pin pointed.
The City Attorney said Mr. Clark, Community Deve7opment Administrator, could
provi�e a short memo to theCouncil explaining the size of the buildings, etc.
� Mayor Liebl said he would like a memo from Mr. Clark clarifying the ordinance.
The City Manager said this would be taken care of.
UPON A VOICE UOTE, all voting aye, Mayor Liebl declared the motion carried
unanimously.
USE PERMIT. SP #74-1,0. BY W. RED STANG: PER FRIDLEY CITY
E
The City Manager advised the Council that there was no action necessary on this
item.
RENEWAL OF SPECIAL USE PERMIT: SP #73-03. BY KEITH S. SWENSON AND DENNIS D.
5.101
.,, �, .,
UNIVERSITY AVENUE N. E.:
Mayor Liebl recommended the renewal of the request say�ng this would be supportive
income for the operators and may e7iminate the possibility of another service
station going out of business. He further stated the recommendation of the Planning
, Corrmission was to approve the request.
Councilman Breider asked if there are rental tra7lers and trucks on the property
at the present time and Mayor Liebl said yes.
MQTION by Councilman Breider to approve the request for the renewal of the
Special Use Permit as requested by Keith S. Swenson and Dennis �. Sarilahit to
operate a truck and trailer rental at 6071 Univers�ty Avenue N. E. Seconded by
Counci7man Utter. Upon a voice vote, all voting aye, Mayor Lieb7 declared the
motion carried unanimous7y.
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PUBLIC HEARING MEETING OF JUNE 10, 1974
PAGE 5
AND
The City Manager advised the Council that their action would 6e to set a
Pub7ic Hearing on the vacation request.
MOTION by Councilman Nee to set a Public Hearing on the matter of the vacation
request and lot sp7it request by Florence E. Swanson for July 8, 1974. Seconded
by Councilman Utter. Upon a voice vote, all voting aye, Mayor Liebl declared
the motion carried unanimously.
MEMO FROM JERROL� BOARDMAN ON ZONING CHANGE FOR CHASES ISLAND:
Mayor Lieb7 read this portion of the P7anning Commiss�on minutes to the Council
and audience.
Councilman Nee asked if this was to comply with the State.
The City Manager said there would be no Council action necessary on the item
at the present meeting, the Planning Commission would set a public hearing on the
zoning change.
INFORMATION FOR HYDE PARK STUDY:
The City Manager said there had been some concern about the extent of the study
to be made by the Planning Commission. He further explained this area
had been studied for a long period of time. He said he would assume the staff
and P7anning Commission would not go into a full scale study unless directed
by the Council. He said at the present time, ihey were making a logical
collection of the lots in the area to obtain buildab7e sites.
Mayor Liebl said the people of the area know what the criteria of the area is
because they had come up with this sort of plan. He said they are aware what
type of policy had been established for the area.
Councilman Nee asked �f there was documentation of this area's planning and
if so, could he see these documents. Mayor Liebl said the documents are all
at City Hall. Councilman Nee said he would like to read these documents.
Mayor Liebl directed the Administration to forward the minutes of the Planning
Commission meetings and Council meetings concerning the Hyde Park development
to Councilman Nee. Mayro Leibl said Councilman Nee would report back to the
Council and vo�ce his thoughts on what could be done in this area.
MOTIOPJ by Councilman Breider to receive the minwtes of the Planning Cor�ission
Meeting of June 5, 1974, including the remainder of the items which would not
require any Council action. Seconded by Councilman Uiter. Upon a voice vote,
all voting aye, Mayor Liebl declared the motion carried unanimously.
REQUEST SY MR. ED WILMES, FOUNDER OF ISLANDS OF PEACE, 70
Mr. Ed W�lmes addressed the Council and questioned if the Foundation for the
Islands of Peace would be allowed to make the decisions concerning the development
of the Islands of Peace without going �o Mr. Paul Brown, Director of Parks and
Recreation.
Councilman Utter asked if there had been some kind of disagreement. Mr. Wilmes
sa�d yes, there is a lack of communication between the Islands of Peace and
Mr. Paul Brown. He further explained the liaison, Mr. Curtis Dahlberg, Park
Foreman, had and was working with the Islands of Peace in a satisfactory manner.
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PUBLIC HEARING MEETING OF JUNE 10, 1974
PAGE 6
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Mayor Liebl asked if the City Manager would report back to the Council and tell
them what is meant about this lack of communication with Mr. Brown and Mr. Dahlberg.
The City Manager said he would report back to the Council.
Mayor Liebl advised Mr. Wilmes that the Council would get back to him on this
matter.
RECEIVING THE MINUTES OF THE BUILDING STANDARDS-DESIGN CONTROL MEETING OF JUNE 6,
1974:
TO CONSTRUCT A BUILDING FOR SPECULATIVE PURPOSES:
MOTION by Councilman Breider to concur with the recommendation of the Building
Standards-Design Control Subcommittee and approve the request to construct the
building with the three stipulations recommended, and subject to the approval
of the four variances as requested by the applicant which would be reviewed
by the Board of Appeals the next evening. Seconded by Councilman Utter. Upon
a voice vote, all voting aye, Mayor Liebl declared the motion carried unanimously.
RECONSIDERATION OF A REOUEST TO ALLOW THE UPGRADING AND IMPROVEMENT OF THE LOT
The Assistant Engineer pointed out the plan for the area on the mar on the
screen. He indicated thefirst proposal was for the remodeling and improvement
of the building. He explained there were some items the�pplicant would like to
delete from the plan for economic reasons. He explained the stipu7ation concerning
the installation of the green areas on the souih and north front corners are to
be 9 feet and 16 feet respectively and the applicant had indicated this would
not be feasi6le.
Mr. Don Lunde, Pasco Marketing, addressed the Council and said the top manage-
ment of the Company said they had to stay within the budgeted amount with this
improvement. Mr. Lunde presented a picture to the Council of another facility
which was improved as the proposed facility would be improved.
Councilman Nee said he believed the stipulation was to utilize the open space at
the side of the facility. Mr. Lunde said if th�s area is out 16 feet, the light
would have to be taken out. He said they would be able to plant the live plants
on the sides, this would be manageable.
Mayor Liebl asked what the total expenditure for the improvement would he. Mr.
Lunde answered, this would be from $5,000 to $6,OOD. Mayor Liebl questioned
which of the stipulations wou7d not be agreeable to Mr. Lunde. Mr. Lunde stated,
thts would be the first stipulation concerning the green areas on the south and
north front corners which are to be 9 feet and 16 feet respectively.
Counctlman Starwalt said the only problem would be with the fir.st stipulation.
Mr. Lunde pointed out that they did not own the building, they were just leasing
it. Mr. Lunde listed the other stipu7ations stating he approved of them and
added, this is much more than had been done in the other building.
Councilman Starwalt asked how tight a schedule the Company was on. Mr. Lunde
said they had planned to be open at the present time and they were in a hurry.
The City Manager walked to the map of the site and proposed the green areas be
moved to the east/west direction and this wou7d allow for more green areas. Mr.
Lunde agreed to this type of compromise stating he was sure if the stipulation
were to be enforced as it read, the lights would have to be moved. He said he
would present this proposal to the management of the Company to determine if
they would accept this type of compromise.
MOTION by Councilman Starwalt to change the first stipulation to read that the
applicant work something out with the Administration for the placement of the
green areas and approve the building permit with the remainder of the 8 stipulations
as recommended by the 5u6committee and issue the building permit as requested
by the Pasco Marketting Company for the remodeling of the service station at
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PUBLIC HEARING MEETING OF JUNE 10, 1974
PAGE �
6290 Highway No. 65 N. E. Seconded by Counci7man Utier, Upon a voice vote,
all voting aye, �layor Liebl dec7ared the motion carried unanimously.
OF A REQUEST TO OPEN UP A SALES AND REPAIR SHOP F�R GOLF CARS:
The City Manager said there was no action necessary, this had been continued
by the Building Standards-Design Control Subcommittee.
MOTION 6y Councilman Breider to receive the minutes of the Bui7ding Standards-
Design Control Subcommittee of June 6, 1974. Seconded by Councilman Utter. Upon
a vcice vote, all voting aye, Mayor Lieb7 declared the motion carried unanimously.
RECEIVING THE MINUTES OF THE ENVIRONMENTAL QUALITY COMMISSION OF MAY 14, 1974:
MOTION by Counci7man Utter to receive the minutes of the Environmental Quality
Commission of May 14, 1974. Seconded by Councilman 5tarwalt for discussion.
Counci7man 5tarwalt asked how the City was proceeding on the legal aspects of
membership of the Chairman of the Environmental Quality Commission being a voting
member of the Planning Commission and incorporating the Environmental Quality
Commission as a 5ubcommittee of the Planning Commission.
The City Attorney said he had recieved a request for the opinion on the previously
mentioned matters and he would be answering the request in writing.
UPON A VOICE 1fOTE, all voting aye, Mayor Lieb] declared the motion carried unanimously.
RECEIVING THE MINUTES ff THE HUMAN REALTIONS COMMISSION OF MAY 76, 7974:
MOTION by Councilman Starwalt to receive the minutes of the Human Relations
Commission of May 16, 1974. Seconded by Councilman Nee. Upon a voice vote,
all voting aye, Mayor Liebl declared the motion carried unanimously.
I
Allied B7acktop Company
3601 48th Avenue North
Minneapolis, Minnesota 55429
Bituminous Construction
5232 Hanson Court
Minneapolis, Minnesota 55429
ECT ST. 1974-10
$12,809.09
11,577,57 Alternate
$17,$85,47
10,710.61 Alternate
The City Manager explained the alternate bids had been received for the work
with the consideration that the City would do the sweeping. He said he would
recommend the contract be awarded to Bituminous Construction for the alternate
bid in the amount of $10,710.61.
MOTION by Councilman Utter to receive the bids and award the contract for Street
Improvement Project St. 1974-10, Seal Coating, to Bituminous Construction, 5232
Hanson Court, Minneapolis, Minnesota 55429, on their alternate bid in the
amount of $70,71D.61. Seconded by Councilman Starwalt. Upon a voice vote, all
voting aye, Mayor Liebl declared the motion carried unanimously.
RECE
MOTION by Councilman Utter to receive the foilowing bids:
American Linen Supply
Gross Industrial Inc.
Leef Brothers, Inc.
$8,061.30
7,054.84
7,183.54
MOPS AND
and award the contract for the laundry, uniforms, rugs, mops and towels to Gross
Industrial Inc. in the amount of $7,054.84. Seconded by Councilman Breider. Upon
a voice vote, all voting aye, Mayor Liebl declared the motion carried unanimously.
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PUBLIC HEARING MEETING ff JUNE ]0, 1974 PAGE 8
RESOLUTION #69-1974 - AUTHORIZING AND DIRECTING THE SPLITTING DF SPECIAL ASSE
Councilman Breider questioned what procedure is being accomplished by the proposed resolution
The Finance Dtrector said the special assessments must be taken from the original parcel
� of property and assigned to the new parcel when property is replatted. He said the
important factor is that the total of the original assessment is equal to the assessments
�n the replatted section.
The City Attorney said there is only one parcel which does not have any special assessments
transferred and this is the parcel wh�ch had been dedicated to the City for parks.
The Finance Director further explained all lot splits must come to the Council in form
of resoluttons for approval to he presented to the County to enable them to execute the
proper statements.
MOTION by Councilman Utter to adopt Resolution #67-1974 authorizing and directing the
splitting of special assessments on Parcels 100, 200, 500, 520, 540, 620, 700, 780, 80D
and 850, Auditor's Subdiv�sion #22, and replatting into Harris Lake Estates Addition.
Seconded by Counci7man Starwalt. Upon a voice vote, all voting aye, Mayor Liebl declared
the motion carried unanimously.
RESOLUTION #68-1974 - AUTHORIZING AND DIRECTING THE SPLITTING OF SPECIAL ASSESSMENTS
ON OUTLOTS G AND H, INNSBRUCK NORTH ADDITION, AND REPLATTING INTO INNSBRUCK NORTH
TOWNHOUSES 3RD ADDITION:
MOTION by Councilman Utter to adopt Resolution #68-1974, authorizing and directing
the splitting of special assessments on Outlots G and H, Innsbruck North Addition,
and replatting into Innsbruck North Townhouses 3rd Addition. Seconded by Councilman
� Breider. Upon a voice vote, all voting aye, Mayor Liebl declared the motion carried
unanimously.
RESOLUTION #69-1974 - AU7HORIZING AND DIRECTING THE SPLITTING OF SPECIAL ASSESSMENTS
MOTION by Councilman Utter to adopt Resolution #69-1974, authorizing and directing the
splitting of special assessments on Parcels 8400 and 9300, Section 3 and Lots 1-6,
Block 2, Pearson's lst Addition and replatting into Meadow Run lst Addition. Seconded
by Councilman Breider. Upon a voice vote, all voting aye, Mayor Lie61 declared the
motion carried unanimously.
APPOINTMENTS: COMMMITTEE AN� COMMISSION:
MOTION by Councilman Breider to table the appointment to the Human Relations Commission.
Seconded by Councilman Utter. Upon a voice vote, all voting aye, Mayor Liebl declared the
motion carried unanimously.
Mayor Liebl said the minutes of the Environmental Quality Commission �ndicate that Mr.
Roger Kaye had also resigned.
Mayor Liebl recommended the appointment of Mr. Thomas Kennedy, 6857 7th Street, to the
Environmental Quality Commisison. Mayor Liebl said Mr. Kennedy is a long term resident
and property owner in the City of Fridley.
� Counci7man Breider asked if this was Sergeant Kennedy on the Fridley Police Department.
Councilman Utter questioned if there are any other City employees on the Commissions
and Committees.
The Public Safety Director, Mr. James Hill, stated there may be some rules on this type
of appointment in the Civil Service requirements. He said he would contact the Civil
Service Commission on this point. The City Attorney suggested the appo�ntment be
tabled until he and Mr. Hill could review these requirements.
MOTION by Councilman Utter to table the appointment to the Environmental Quality
Commission until a report on th�s type of appointment is received from the City Attorney.
Seconded by Councilman Breider. Upon a voice vote, all voting aye, Mayor Liebl declared
the motion carried una m mously.
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PUBLIC HEARING MEETING OF JUNE 10, 1974
CLAIMS:
GENERAL 35869 - 35996
LIQUOR 8934 - 8958
PAGE 9
MDTION by Councilman Utter to approve the payment of the Claims, Seconded by
Councilman Nee. Upon a voice vote, all voting aye, Mayor Liebl declared the motion
carried unanimously.
LICENSES:
FIREWORKS QISPLAY: BY: APAROVED BY FEE
100 Twin Drive In
5600 Central Avenue
EMPLOYEE DISPENSING;
Doreen A. Lischa7k
1230 Highway 100
100 Twin Drive In
Ground Round
EXCAVATING:
Walter C. Suchy Excavating Walter C. Suchy
73 West County Road C
St. Paul, Minnesota 55117
GENERAL CONTRACTOR:
Dailey liomes Inc.
8510 Central Avenue
Blaine, Minnesota 55117
Howard C. 7horson
Giertsen Company R. I. Giertsen
2840 Chicago Avenue
Minneapolis, Minnesota 55407
Taylor Maid Construction Co. Jim Stevens
539 lOth Street N. W.
New Brighton, Minnesota 55712
Fire Chief
Public Safety
Director
C. Belisle
C. Belisle
C. Be7isle
C. Be7isle
$5.00
Herbst & 5ons Construction Dennis Herbst C, Belis7e
Company, Inc,
2299 County Road H
New Brighton, Minnesota 55772
MASONRY:
Jim 5tevens Cement Co. Jim Stevens C. Belis7e
7007 20th Avenue
Hugo, Minnesota
MOTION by Councilman Nee to approve the licenses previously listed. Seconded by
Councilman Utter. Upon a voice vote, all voting aye, Mayor Liebl declared the mot�on
carried unanimously.
ESTIMATES:
Comstock and Davis, Inc.
Consulting Engineers
1446 County Road J
Minneapolis, Minnesota 55432
PARTIAL estimate #5 for Water, Sanitary
Sewer and Storm Sewer Improvement Project #114
$ 5,083.06
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PUBLIC HEARING MEETING OF JUNE 10, 1974
Smith, Juster, Feikema, Haskvitz & Casserly
Builders Exchange Building
Minneapolis, Minnesota 55402
Services rendered as Prosecutor
May retainer, Carl Newquist
Wesver, Talle & Herrick
316 East Main Street
Anoka, Minnesota 55303
May billing for services rendered
PAGE 7p
$ 1,245.00
$ 1,100.00
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MOTION by Councilman Nee to pay the Estimates. Seconded by Councilman Utter. Upon
a voice vote, all voting aye, Mayor Lieb] declared the motion carried unanimously.
CONSIDERATION OF
Mr. �ohn Cairns, Counsel for the Pohle Brothers, addressed the Council and exp7ained
he had met with the City Attorney, City Manager, and City Finance Director the previous
Friday and the documents presented to the Council were a result of that meeting. He
further explained that the Pohle Brothers had �iven their personal guarantee to cover
any loss that may be paid by the holding company if there would be any failure
to complete the lease.
Mr. Cairns said the Council for their preliminary approval of the plan, again.
He said this would not be final approval af the plan and the City would not have to
approve the final agreements. He said if later the CIty did not approve, the
Company would have to obtain another way of financing the building.
, Mayor Liebl said he is aware of Chapter 475.67 and the Legislation of 7967.
He said Fridley has an industrial Commission who has asked people to invest money
in Fridley. He pointed out that the high Industrial and Commercial evaluation in the
Gity. He said all of the people had come to the City and developed properties on
an equal basis. He stated, if this proposal was approved, this would be setting
a precedent and would be unfair to the other enterprises such as Medtronic and
Onan. He said if the Council as City Fathers would give specia7 consideraiion to
Mr. Cairn's clients, this would allow them to develop in the City with a lower
interest rate than the others were able to have. Mayor Lieb7 said he did not think
the City could do this for one development and not the others. He said he did not
think the tax payers in the Ctty would want to subsidize industry. He questioned
who this would hurt and who it would help. He asked if the approval of this concept
would require three votes. The CIty Attorney said all that would be needed is three
votes.
,
Mr. Cairns said he was on the Counci7 in Minneapolis when the first industrial revenue
bonds were considered and issued and he agreed, this would be setting a precedent.
Mr. Cairns said this type of bonding cannot be related to Onan or Medtronics because
they are very large and this type of issue would be to aid the small businesses
that do not have extensive capital. He said this was not the intent of the Federal
and State governments. He explained that the only large company that had obtained
financing through this type of bonding would be Land 0 Lakes and this had been
for equipm°nt, He voiced resentment at this being done for this large a company.
He said people who are bu�lding large million dollar buildings would feel this amount
being requested would be a drop in the bucket. He said Hi-Mount is a small industry.
Mr. Cairns said this Company would employ many local people. He continued to
explain this type of financing would seem l�ke a subsidy at first glance, but it
is not a one way street for the City. He said there would be 35 people employed and
also make it possible to develop a parcel of property. He exp7ained there would
ben an increase in revenues to the City 6ecause of the developmeni of the property
over that of a large parcel that is vacant. He stated the 6elief that there would
be a reduction in development of industrial and commercial properties because of the
reduction in convential financing. He commented that it had been possible to sell
stock to raise capital, but now the trend is to issue bonds. He said he thought
this precedent would be a hea7thy one for the City. He said with this type of
granantee, there would be no risk at all to the City. He said the only connection would
be that the "City of Fridley" would appear on the bonds. He said this small edge
would only to to the small business.
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PUBLIC HEARING MEETING OF �UNE 10, 1974
PAGE ��
Councilman Breider questioned the portion of the documents which related to the
insurance of ihe Pohle Brothers to pay the balance in case of a failure to
re-lease the facility,
The City Attorney explained there is an insurance policy which would cover the payments
on the lease, and ihetr personal insurance is secondary. He said first liability
would 6e to Hi-Mount, then after this, it wouid be ihe insurance company. He said �
if Hi-Mount would go bankrupt, the insurance company has the personal guarantee
of the subrogation from these two individuals. He said the City of Fridley would
not be obligated to make any levy against the property. He said it would be ihe
intent af the insurance company to seek a new tenant,
Councilman Breider asked if the City would be responsib7e for finding another
tenant. The City Attorney said the City would have no responsibility for this
whatsoever.
Counc�7man Breider asked if this were possible to issue this kind of persona]
guanantee, why did they not finance the building at the present time.
Mr. Cairns explained the personal net worth of the men could not be used to
finance the building of this company. He explained the money is tied up in Pohle
Sales, Inc., and this is not the type of leverage that would allow them to raise
money. He said this is not the kind of strength that is needed for long term
financing.
Councilman Starwzlt questioned why this rate of interest on the bonds would be
higher than those for the advance refunding. Mr. Tom Moore, Underwriter, addressed
the Council and said th�s would be because this would be a revenue producing business
and the City of Fridley is not obligated for any loss.
Mr. Cairns stated that rather than considering this type of financing setting a
precedent, the Council should think of it as an option. He said in the case of the '
business proposed, it is carefully tied together, and the next request may not be.
He said some requests may not have any musc7e to back them up financially, He said
this case Burlington-Northern would take the property if there was any fai7ure,
there would be no threat of the City having any responsibility in this instance.
He commented, they had been very careful that this building would be a multiple use
building. Warehousing is always multiusabie.
Mayor Liebl questioned if another man could come in and ask for this type of
bonding. He said if this would come up all over the City, they could be in
trouble.
The Ctty Attorney said each request would have to 6e looked at on the case basis.
He said as a tax payer, he would say that no one could get hurt with this type
of bonding. He continued it would provide good jobs and some tax revenue, He said
from the financial and legal standpoints, he could see no risk involved for the
City.
Councilman Nee said he had discussed this matter with elected officials in other
areas and he had been told that Minneapolis turns down many more requests than it
approves. He explained that this matier had come up so quickly and he had not
talked to the community about this type of bonds. Councilman Nee said he had
doubts that this should be accepted without community input. He said on this
basis, he would vote to turn down the request. He questioned why those in Minneapolis
had been turned down. �
Mr. Cairns explained the lease guanantee insurance and said it is not very often
that a company would be ab7e to provide this type of insurance, He explained out
of 100 requests, there may be about 10 that would be approved. He also exp7ained
some request would involve the installation of a very dirty industry, or the
build�ng would not be a multiuse building plan. He said there would be a multitude
of factors that would determine this denial.
Councilman Utter said the City has plenty of additional land available for the
development of industrial properties. He said other companies had come to the
City and found any means possible to finance their construction without coming
to the City for help. He said he would have to vote against this bond issue.
Mayor Liebl said he could not be sold on this proposal until he had received some
indication on how the community felt about this. He said in his opinion, this is
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PUBLIC HEARING MEETING OF JUNE 10, 1974 PAGE 12
opposite from the feeling the community has had in building the City to what it
is at the present time.
Mr. Cairns said the 6a11 game had changed and there had been a great deal of
this type of financing within the last 12 months. Ne explained that this type
of financing is now available to any type of revenue producing enterprise. He
said this is a new tool and the conventional type of financing is not favorable
in development at the present time. He predicted this would be a primary tool
in the development of corr�nercia7, industrial and office facilit�es. He said
the City would not f�nd a betier, more protected arrangement than the proposal
of Hi-Mount.
Councilman Nee said Mr. Cairns had made a good presentation and the package
was a good one. Councilman Nee said he fe7t Mayor Liebl had voiced the general
feeling at this point, He said from the comments made, he would understand the
concensus of the Council to not use this tool. He also stated he had some other
information that said this would not be approved anyway.
MOTION by Councilman Nee to deny the request for the issuance of industrial
revenue bonds for the construction of the warehouse on the Burlington Northern
property by Hi-Mount. Seconded by Councilman Utter. Upon a roll call vote,
Coumcilman Uttar voting aye, Councilman Breider voting aye, Councilman Starwalt
voting aye, Counctlman Nee voting aye, and Mayor Liebl voting aye, Mayor Liebl
declared the motion carried unanimously and stated the request for the issuance
of industrial revenue bonds had been denied.
Councilman Starwalt commended Mr. Cairns on his fine presentation.
CONSIDERATION �F APPRO1fAL OF BURGLAR AN� FIRE ALARM SYSTEM TO BE
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The City Manager said
included in the agenda
community.
if this is approved by the Council, the letter which was
material would be sent to those using the service in the
< ,.�
MOTION by Councilman Breider to concur with the recommendation of the Public Safety
Director and approve the alarm transfer and equipment. Seconded by Councilman Utter.
Upon a voice vote, all voting aye, Mayor Liebl declared the moiion carr-ied unanimous7y.
CONSIDERATION OF CANCELLING REGULAR COUNCIL MEETING OF JUNE 17. 1974 BECAUSE OF
MOTIoN by Counciman Breider to cance7 the Regular Counci7 Meeting of �une 17, 1974
because of the �ubilee Celebration. Seconded by Counci7man Utter. Upon a voice
vote, all voting aye, Mayor Liebl declared the motion carried unanimously.
T
� '-ek:� �0
The City Manager said if the Council wants more information or a physical presentation
from Coon Rapids, this would be possible.
Councilman Bretder said he did not know how much information had been received from
Coon Rapids at the present time. He suggested the City of Fridley provide all the
information it could to them and request the same in return. He stated this is a
substantial area and it drains into North Park.
The City Manager said he had been working with the staff and they are making some
progress.
MOTION by Counctlman Breider to receive and concur in the plan for the development
north oF 85th Avenue. Seconded by Councilman Utter. Upon a voice vote, all voting
aye, Mayor Liebl declared the moiion carried unanimously.
CONSI�ERATION OF SUGGESTED BOUNDARIES
STUDYING A BICYCLE - WALKWAY SYSTEM:
THE SELECTION OF A CIT
Councilman Utter asked if the current action would be to choose people for the
citizen committee.
Mayor Liebl said the areas would be selected.
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PUBLIC HEARING MEETING OF JUNE 10, 1974
PAGE 13
Councilman Nee asked if the City Manager could announce that a committee is to
be formed and ask for volunteers.
The City Manager suggested that the citizen's committee be selected with a cross
section of ideas on this type of proposal, He said people favoring and against
such an installation should be appointed. Councilman Nee said the people would
not be picked because they favored this type of installation according to the
suggestion of the Ctty Manager.
MOTION by Councilman Utter that the members of the Council submit names for the
citizens committee with the nine area sections adopted as on Page 22-A of the
agenda. Seconded by Councilman Starwalt. Upon a voice vote, all voting aye,
Mayor Liebl declared the motion carried unanimously.
MRS. CLETUS NEI: LETTER OF APPRECIATION REGARDING ENGINEERING PERSONNEL:
MOTION by Councilman Nee to receive the communication from Mrs. Cletus Nei, letter
of appreciation regarding Engineering personnel, received June 6, 1974. Seconded
by Councilman Starwalt. Upon a voice vote, all voting aye, Mayor Liebl declared
the motion carried unanimously,
DEAN CALDWELL: RESIGNATIOPI FROM CATV COMMISSION:
MOTION by Councilman Utter to rece�ve the letter of resignation from the CATV
Commission from Mr. Dean Caldwell, dated June 5, 1974, and direct the Administration
to prepare a cert�ficate of appreciation. Seconded by Counciman Nee. Upon a voice
vote, all voting aye, Mayor Liebl declared the motion carried unanimously.
RECEIVING BIDS AN� AWARDING CONTRACT FOR FENCE AT COMMONS PARK BASEBALL #1:
�
MOTION by Councilman Utter to tabie any action on this bid until he would have
an opportunity to talk with Mr. Brown and the City Manager concerning the fence �
installation. Seconded by Councilman Starwalt. Upon a voice vote, all voting aye,
Mayor Liebl declared the motion carried unanimously.
DISCUSSION CONCERNING PRO�ECT #103 AND SETTLEMEN7 WITH SUBURBAN ENGINEERING ANb THEIR
INSURANCE COMPANY:
The City Attorney advised the Council that he had asked that this item be discussed
at the present meeting. He explained that the amount of the contract to have been
approximately $22,000, He explained he had contacted the bonding company and they
had agreed to pay $15,OD0 and if the City would pay $5,000, this would leave the
settlement about $2,000 short. He said he would like Council action authorizing the
City to offer the amount of $7,500 to d�spose of this matter. He said if the matter
is not settled in this manner, it would involve a lengthy litigation and would call
for expensive witnesses. He said he doubted if the City would be able to obtain
a whole verdict on theinatter anyway.
MOTION by Councilman Utter to direct the City Attorney to finalize the claim up
to $7,500, providing a release be provided by Suburban Engineering and also
the bonding Company. Seconded by Counci7man Breider. Upon a voice vote, all voting
aye, Mayor Liebl declared the motion carried unanimously.
POLL OF COUNCIL ON PROPOSAL BY LIONS CLUB TO CONSTRUCT A
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Counciman Utter said he had been asked by members of the Lions Club to poll the
Council on the possible donation of a band stand and shelter to be installed on
the west side of Moore Lake on the City property.
Councilman Nee said this should be taken care of through the Parks and Recreation
Commission.
Councilman Starwalt agreed stating this should be done before the Council makes
any determination.
ADVANCEMENT OF MONEY TO THOSE ATTENDING LEAGUE OF MUNICIPALITIES CONVENTION:
Councilman Utter asked if there would be an advancement of money to those attending
the League of Minnesota Mum cipalities convention in Duluth the latter part of the
week.
The City Manager said this would be prepared for those attending.
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PUBLIC HEARING MEETING OF �UNE 10, 1974
RESOLl1TI0N #70 - �ECLARING JUNE 16, 1974, AS "HUNGER DAY":
PAGE 14
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Councilman Breider said he had received a letter from the Legis7ators in Minneapolis
asking for Fridley's support of "Hunger Day", which would be June 16, 1974.
He said since the Council would not be meeting before this time, he would suggest
some action in support of this day at the present meeting.
Councilman Nee said he had also received this information.
MOTZON by Councilman Utter to adopt Resolution #7D-1974, declaring June 16, 1974
as "Hunger Day". Seconded by Counci7man Nee. Upon a voice vote, all voting aye,
Mayor Liebl declared the motion carried unanimously.
ADJOURNMENT:
MOTION by Councilman Breider to adjourn the meeting. Seconded by Councilman Utter.
Upon a voice vote, all voting aye, Mayor Liebl declared the motion carried unanimously
and the Public Hearing Meeting of the Fridley City Council of June 10, 1974 adjourned
at 12:09 A.M.
Respectfully submitted,
O(%Wv"c.c.�v /'�--�iV�✓MiyV
Patricia Ranstrom
Secretary to the City Council
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Date Appr d
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'�'� 'bi/r' V
Frank G. Liebl
Mayor