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05/15/1979 - 00013824' � THE MINUTES OF THE SPECIAL MEETING OF THE FRI�LEY C?TY COUNCIL OF MAY 15, 1979 The Special Meeting of the Fridley City Counctl was called to order at 7 35 p.m. by Mayor Nee. PLEDGE OF ALLEGIANCE Mayor Nee led the Counctl and audience tn the Pledge of Allegiance to the flag. ROLL CALL: MEMBERS PRESENT MEMBERS ABSENT Mayor Nee, Councilman Barnette, Councilman Schneider, and Counctlwoman Moses Councilman Fitzpatrick PUBLIC HEARING - CENTER CITY PROJECT: MOTION by Councilman Barnette to waive the reading of the public hearing nottce and open the public heartng for consideration of a redevelopment plan proposed under the Municipal Housing and Redevelopment Act Seconded by Councilman Schne�der. Upon a voice vote, all vot�ng aye, Mayor Nee declared the motion carr�ed unanimously and the publ�c hearing opened at 7:36 p.m Mr. Dean Doyscher, City consultant for the Center C�ty Pro�ect and Pres�dent of Professional Planning and Development Company, appeared before the Council to review the proposed redevelopment plan for the Center City pro�ect Mr. �oyscher stated the Council has 6efore them a redevelopment proposal and plan which has been approved by the City's Planning Commission in terms of land use and overall development The Council also has a resolution from the Fridley Housing and Redevelopment Authortty request�ng constderation and approval of this plan by the City Council. Mr. �oyscher stated what is proposed is a redevelopment effort authorized under Minnesota Statute Chapter 462 wh�ch allows clties and more particularly, Housing and Redevelopment Authorities, to develop redevelopment areas for purposes of removing blight, obsolescence, deter•�oration and unsightly conditions hir. Doyscher stated on the first page of the plan is a description of Fridley in terms of its location and neigh6ors. It also includes the location of the Center City pro�ect area and notes within this area that there are 73 separate operating 6usinesses, prtmarily located in five ne�phborhood centers. The general area is known as the strip commerctal area along University Avenue bounded 6y 61st on the South and Mississippi Street on the North and also includtng the Village Green complex, the Rice Creek Shopping Center and Holly Shopping Center. Mr. Doyscher explained the reasons for blight in some of the areas. At the intersection of Mississipp� Street and U m versity Avenue, there is a severe traffi c problem with a daily traffic count of 29,485 vehicles on Um versity and 8,500 vehicles on Mississippt. Another problem intersection is at 61st Avenue and University Avenue and the Pol�ce Department has recorded an unusual1y high incident of acc�dents, both personal in�ury and property damage Mr. Doyscher stated that people in business believe the intersections are dangerous and it harms business in the area. He stated they further believe that the small commercial area a� the northeast corner of University and � Mississippi is deteriorated because of land that is underutilized and that the ingress and egress cannot be used to the maximum capabilities because of the __ land design. He stated the land is zoned �nappropriately, with commercial property lying ad�acent to single family residences, and has a deterioratir, effect on prime commerical areas in the City. Mr. Doyscher stated that the Moon Plaza Shopping Center has very little access to the property, with no exposure and that the parking was inadequate. He stated the shopping center is deteriorated and bl�ghted in character and nature of the buildings, lack of parking, including parkin9 on the servtce road, mixed uses and inapproprtate land uses. He stated the nature of s�ngle family homes abutting these areas limits the potential of commercial uses. SPECIAL MEETING OF MAY 15, 1979 PAGE 2 Mr. Doyscher stated the people owning businesses in Holly Center Shopping Center believe they are harmed because of the access off of University Avenue and Misstssippi Street and believed there could be better access, if improvements were made tn the overall circulation patterns He stated there �s a lack of landscaping and des�gn, pedestrian ways, and general lack of uniformity and design of the commercial area. He stated people believe the unkept cond�tions negatively harm the bus�ness community. Mr. Doyscher stated Rice Creek Shopping Center has difficult access, inadequate , parking, it abuts single family homes, commercial use is limited and has severely limited frontage exposure. In reviewing the goals and ob�ectives of the redevelopment plan, Mr. Doyscher stated it is the goal to develop the Center C�ty area into a commum ty wide commercial serv�ce area rather than a neighborhood convenience area. Other goals and ob�ectives are to permit the Center City area to become a mtxed land use area for commercial and housing activities, to encou�age and publicly assist new commercial developments with property acqu�sition and other financial assistance, to increase employment opportunities to residents by commerc�al expansion; to des�gn and improve the future land use controls, to increase the tax base through cooperation and assistance to commercial and housing developers, to provide redevelopment opportunities, to mainta7n a healthy and safe environment, to provide var�ous forms of financial assistance such as industrial revenue bonding, tax exempt municipal revenue bonds or State and Federal loans and grant montes. Mr. Doyscher stated, specifically, this plan calls for a development prospectus to be given to private enterprise. Mr. Doyscher stated the redevelopment plan ts broken into six phases and each phase requires the City to make contractual arrdngementswith a developer, prior to acqutsition, and will require approval of the developer. Mr. �oyscher stated Phase 1 consists of the land located on the southeast � corner of Univers�ty Avenue and M�ssissipp� Street, referred to as the Christenson redevelopnient site and presently includes Brunkow Music, Chrtstenson Shopprng Center, Madsen Office Building, Northwestern Beli Phone Company building and a single family home. The area contains about five acres. The area in Phase 2 cons�sts of land located on the east side of University Avenue, south of the City Hall, north of the Firdley State Bank and west of 5th Avenue. Th�s land includes Fridley Center, Ryan's Garage, three single family homes and Ole's Garage and contains about four acres as referred to as Che Fridley Center redevelopment site. The area in Phase 3 consists of land on the southwest corner of University Avenue and Mississtppi and includes the Rice Creek Shopping Center, Fridley Our Own Hardware, Dairy Queen, Car Wash, Burger King, Standard Station and Allted Radio Building. The area contains four acres of vacant land approximately another 6-z acreas of developed land and is referred to as the Rice Creek Shopp�ng Center area. The area �n Phase 4 consists of land on the northeast corner of Untversity Avenue and Miss�ssipp� Street and includes 10,000 Auto Parks, Carpet Remnant Supermarket and about 50,000 square feet of vacant land. The total land area is approx�mately 2-z acres asd is referred to as the 10,D00 Auto Parts area. The area in Phase 5 consists of vacant land lying west of 5th Avenue, east of � Mcon Plaza Center, north of St. W�ll�ams Church and south of ftve extsting duplexes located �n the Sandy Terrace Subdivision. The area contains about seven acres and is suitable located for church expansion or housing develop- ment. This area is referred to as the St. Wtlliams Church area. SPECIAL MEETING OF MAY 15, 1979 PAGE 3 The area in Phase 6 consists of land on the east side of University Avenue, south of 63rd Street and immediately north and ad�acent to the Rice Creek Office Building. The 7and is vacant and �s about one acre suitable for commercial development. Mr. Doyscher stated the City may or may not acquire all or part of the property to meet the goals and ob�ectives of the plan. Ne stated the City could also combtne these phases and noted that the land uses proposed are � basically the same. Mr. �oyscher stated Phase 1 is for commercial uses, especially office centers, retail stores, and multiple family housing In Phases 2 through 6, Mr. Doyscher stated he would encourage the City to insure that these begin when Phase 1 has been contracted for to be sure somethtng is happening for the property in Phase 1. Mr. Doyscher stated this plan is really a process that may go on for some ttme. He stated tt would be fair to note that the people they have talked to on thts redevelopment plan hoped that private development, without public participation. would occur on some of these lands. Mr. Doyscher stated it was his belief that the City's good efforts in this area will pro6ably cause redevelopment by private businesses, without much public assistance. Mr. Doyscher stated the City may or may not acqutre all or part of the property and will make acqutsitton only after redevelopment or developments are proposed that are ftnancially feasible. He stated a determination wh�ch property should be aquired will be made by the C�ty Council on an individual application basis. He stated those decisions will be made in terms of the goals and ob�ectives of th�s plan, fi nanc�al ability and other concerns the City Council may have. Mr poyscher stated the plan is intended to be flexible to reach the goals and o6,7ectives. Mr. Doyscher stated, tn determining goals for properties to be acquired, ' structures that are substandard should 6e taken into account, land and structures that will permit land development and redevelopment parcels to be large enough to accommodate new developments and corresponding parking requirements, land and structures to meet necessary public improvements, propert�es that are non-conforming land uses when such ar ;acquisit�on will benefit the overall redevelopment goals; and properties that have been contracted for purchase prior to adoption of this olan. In t°eview�ng the land disposttion and redeveloner requirements. Mr. Doyscher stated the contract and disposition documents will spell out in detail provtsions, standards and such other criterta for achieving the ob,7ect�ves and requirements set fouth in the Center City Redevelopment Plan or those documents that are made a part of th�s plan He stated the developers or redevelopers shall supply all information necessary for sound decision making. He stated land d�sposition parcels may be through fixed price offerings or by other means whichever will best assure the atta�nment of the goals and ob�ectives. He stated developers are not buying land for speculation, but for development. Mr. Doyscher stated the ftnance hlan calls for the plan to be financed by use of tax increment financing, yeneral obligation bonds or tax �ncrement financing revenue bonds which shall require Council approval pursuant to M.S. 462.585. Mr. Doyscher stated there will be determinations made in each phase which properties are to be acquired; the relocation costs and the total cost of , the proposal, and pro�ected revenue. He stated the plan calls for the Council to adhere to the Federal law regulations regarding relocation. He stated the relocation program will be adopted, prior to any property being acquired and moving out of this area. Mr.Doyscher stated the (�rocedures for amending th�s plan are outlined in the Minnesota Statutes and it is hard to know if the new pro�posed legislation w�ll make any chanyes. He felt there would be changes of programm�ng, but not boundary changes under the State law. He pointed out, however, that substracting from this area and modifying the plan by taking properties out could be done under the existing statute, but the question would be if they could enlarge the boundaries. SPECIAL MEETING OF MAY 15, 1979 PAGE 4 Mr Marvin Nora, 6750 4th Street, questioned if any ana7ysis was done on the impact of the residential homes abutting the areas. Mr. Doycher stated they don't intend to change the land use pattern of the existing homes next to the proposed pro�ect and presently they may have some ad�acent use which may be more detrimental than what is proposed in the plan. He felt that by clean�ng the area up, having traffic and parktng improvements, this entire area would be improved and the persons in the res�dentfal areas would probably see something positive, rather than negative. Councilwoman Moses questioned the reference and meaning of the last paragraph , on Page 15 of the plan whtch stated that "the City intends to acquire all or part of the property located �n phases one through six". Mr. Doyscher stated, for example, they have a developer that meets all the goals and ob�ectives for Phase 1 and all the property is required with the exception of Brunkow Music, they would leave this property out, and only acquire the other properties, He stated, on the other hand, if the City felt they needed the enttre parcel, then tt may be necessary to acquire that property. He stated this would depend on the Council's determ�nation, and felt the dectsion would have to be made at that time. Mr. Doyscher stated the purpose is that the Council can be flex�ble and can ad�ust on a phase to phase basts. He stated it is hopeful the process to acquire property �s not through condemnation, but if the C�ty requ�res a certa�n property, they will not only make a fair offering, based on the market value of the structure, but to also pay relocation costs. Councilwoman Mos-es questioned the process for the tax increment district. Mr poyscher stated if a tax increment district is established, the existing assessed values which are currently $2,663,630 for properties in the Center City pro�ect are for all governmental units and the City HRA will capture the increase tax. People l�ving there or ow m ng a business there will have their taxes continue to increase or decrease so they won't see any d�fference. He stated the difference occurs in that the County freezes these values at the 1978 level and al7 �ncreased va]ues are revenue to the City and , those mon�es may be used for land acqusit�on, demolition of buildings, site preparat�on, etc, for development in the Center City pro�ect. P�r poyscher stated the City would pass the general obligat�on bond and pay off the bond through increased values of increment. Mayor Nee asked �f �ncrement was exempt from the fiscal dispar�ties distrtbut�on. Mr. Doyscher indicated he wasn't sure of this since there really haven't been �ncrement districts established in Anoka County. Councilman Schneider questioned Mu. Doyscher, in his experience with other mum cipalities, if they tend to come up with gu�delines and polic�es. Mr, Doyscher stated the kinds of guidelines are really a determination of how fast the Council wants this plan to move. He stated he belteved if you had someth�ng happening on one portion of the Center City pro�ect that private enterpr�se w�ll come in on their own, without public financin9. Councilman Schneider asked if there should be criteria or formulas established regarding developmeni and final decis�ons. Mr. Doyscher felt there should be a memorandum of agreement so everyone knows who is acting in the fi nal decision. He stated the Housing Authority asked that the staff do some legal work on this regarding what rules they will , function under so when it came down to the decision, everyone knows who has the authortty. Mr. Doyscher stated that the pro�ect should 6e handled in phases, with the final judgement on how development occurs in each of these phases to be the Council's Mrs. Norma Swanson, owner of property on the northeast corner of University and f4ississippi, stated she can see what the City is trying to do and felt redevelopment is a tool to use. She stated, as a res�dent, she would take a risk of doing something to see Fridley grow again. SPECIAL MEETING OF MAY 15, 1979 PAGE 5 Mr. Qoyscher stated he has met with many people who would be �nvolved �n the Center City pro�ect includtng the Pastor of St. Willtam's Church, Mr Levy, Mr. Doty, Mrs. Swanson, the Businessmen's Task Force Committee and many others and they are aware the City is consicjering some kind of improvements and feel there are many issues contributing to the poor business climate. Mayor Nee felt, if there is a restoration of confidence in the total vitality of the neighborhood, then there would be a number of investors interested. Mr. Newman, acting City Attorney, stated that the Housing and Redevelopment � Authority has a great deal of discretion, if the Council wishes to delegate it to them. He stated, under the plan there are a number of provtsions that require C�ty Council approval. The plan states that new redevelopment, land acquisttion or land disposition must be approved by the Council. He stated the plan does have quite a bit of control by the Counc�l. Mayor Nee asked if the general obligation bonds requtred a referendum. Mr. Newman, acting City Attorney, stated this particular part of the Minnesota statues dealing with the Housing and Redevelopment Authority states that bonds of the H.R.A. shall 6e authorized by its resolution and this law would allow thc Counci1 to have the final judgment in order to issue the bonds for tax increment financing. Also the Mtnnesota Housin9 and Redevelopment Authortty Act is exempt from all State and local taxes and obl�gations under the Fiscal D�sparities Act. RECESS: A recess was called by Mayor Nee at 9 p.m. RECONVENED: The meeting was reconvened at 9:12 p.m � Mr. Doyscher introduced some photographs that were taken by the Frtdley Pol�ce Department in regard to accidents at University Avenue and Mississippi Street tp substantiate that thts area, by design, is a safety hazard and needs improvements. He stated in 1978, at the intersection of University and Mtssissippi, there were 17 personal in�ury accidents and 32 property damage accidents. At the intersection of blst and Un�versiLy, t�ere were 14 personal in�ury and 8 property damage accidents. He stated this would make a total of 31 personal in�ury and 41 property damage accidents at these two intersect7ons in the Center City area. Mr. Doyscher stated thls represents the highest accident cou�t in the City of Fridley. He stated those counts are typical also for 197b and 1977 He also noted that the Police Department didn't take into account the accidents between these twa intersections and stated these were accidents that were reported and had over $300 in dainage. He stated he would assume there are more that were not over the $300 in damage and never reported Mr. Doyscher stated it ts important to say that �he ex�sting planning and zo m ng is a reflection of exist�ng uses rather than the City's new development plan. He stated he be7ieves the planning, as it now exists, no longer represents the development plans for the C�ty and they should also re-establish zones throughout this area in conformance with the development goals and policies. EIPT OF RESOLUTION PASSE� BY ANOKA COUNTY: MOTIOfV by Councilman Schneider to rece�ve resolut�on No. 79-45, passed � by Anoka County on May 8, 1979, in support of Fridley's Central City Redevelopment Pro�ect. Seconded by Counctlman Barnette. Upon a vo�ce vote all voting aye, Mayor Nee declared the motion carried unan�mously VING EXCERPTS FROM THE PLANNING COMMISSION MEETING MINUTES OF MAY 9, 197 nrn�r riir rrvTrn nrT�i nnnirrT. MOTION by Councilman Schnetder to recetve the excerpts from the Planning Commission Meeting mtnutes of May 9, 1979 where they constdered this item regarding the Center C�ty Pro,7ect and recommended approval. Seconded by i = SPECIAL MEETING OF MAY 15, 1979 �i\�.I�E' Councilman Barnette� Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. No other persons �n the audience spoke for or against this plan for the Center City Pro�ect. MOTION by Councilwoman Moses to close the public hearing. 5econded by Councilman Schne�der. Upon a voice vote. all voting aye, Mayor Nee declared the motion carried unanimously and the public hearin9 closed at 9:17 p.m. RESOULTION N0. 72-1979 APPROVING THE CENTER CITY REDEVELOPMENT PLAN: MOTION by Councilman Barnette to adopt Resolution No. 72-1979. Seconded by Councilman Schneider. Upon a voice vote, all votion aye, Mayor Nee declared the motion carried unan�mously. RECEIVING COMMUNICATION IN SUPPORT OF CENTER CITY PROJECT FROI� MIKE 0'BANNOM. MOTION by Councilman Schneider to receive the commum cation in support of the Center Cities Pro,7ect from Mike 0'Bannon, dated May 9, 1979. ADJOURNh1ENT MOTION by Councilwoman Moses to ad�ourn the meeting. Seconded by Councilman Schneider. Upon a voice vote, all voting aye, Nlayor Nee declared the motion unanimously and the Special Meeting of the Fridley City Council of May 15, 1979 ad�ourned at 9:20 p.m. Respectfully submitted, � � ` � �°'�-�—��.c�„��� Carole Haddad Secy. to the C�ty Council Approved: 6/4/79 �.i;l�"w" '.,r`" G' `i`" _ �� William J. Nee t�layor 1 ' ' I�