10/20/1980 - 00013410% �� l l
THE MIIVUTES OF THE PUBLIC HEARING MEETING OF THE FRIDLEY CITY COUNCIL OF
OCT06ER 20, 1980
The Public Heartng Meeting of the Fridley City Council was called to order
at 7 32 p. m. by Mayor Nee.
PLEDGE OF ALLEGIAPdCE.
Mayor Nee ied the Councii and audience in the Pleage of Allegiance to the
Fla9
ROLL CALL:
MEMBERS PRESENT
MEMBERS A65ENT
PROCLAMATION
Mayor Nee, Councilman Fitzpatrick, Councilwoman Moses,
Counc�lman Schneider and Councilman Barnette
fdone
LOCAL GOVERNMENT DAY, OCTOBER 21, 19fi0•
Mayor Nee stated he has a proclamat�on to designate October 21 as Local
Government Day and, with the Council's permission, would execute this
proclamation without reading it.
Mayor Nee asked the City Manager, Mr. Qureshi, to review the local acttvities
for this day.
Mr. ��uresh� stated Governor Quie has declared October 21 as Local Government
Day and as part of the activities, Fridley will be conducting tours of the
City fac�ltt�es on a request basis. He further stated there would be an
audio-visual display at the City Hall showing various City department services
and another citsplay showing further potential growth areas for commercial and
industrial development in Fridley. Mr. Quresh� stated the official opening of
the bikeway/walkway system linking the Pielody Manor area with the Rice Creek
Terrace area will take place on Tuesday at 3:30 p. m., October 21, near the
newly installed bridye over Rice Creek off Monroe Street.
Mr. Qureshi stated he hoped the citizens will take advantage of this opportunity
to learn more about the�r Ctty and the services provided.
Counc�lman Barnette stated he has dtstributed this proclamation to classes
at the Senior High School and hoped they would take advantage of Local
Government Day, and �ndicated there were some students presenL at the meeting
this even�ng.
ADOPTION OF AGEN�A:
MOTION by Cb;ancilwoman Moses to adopt the agenda as su6mttted. Seconded by
Councilman Schneider. Upon a voice vote, all votiny aye, Mayor Nee declared
the motion carried unanimously.
PUBLIC NEARIN
PUBLIC I-IEARING ON PROPOSED PROJECT FOR ISSUANCE OF $925,OD0 INDUSTRIAL
�EVELOPMENT REVENUE BOfVD TO GERALD W. PASCHKE UNDER THE PIUNICIPAL INDUSTRIAL
DEVELOPMENT ACT, MINNESOTA STATUTES, CHAPTER 474, AS AMENDED:
AN�
RESOLUTION N0, 108-1980 GIVING PRELIf+IINARY APPROVAL TO A PROPOSED INDUSTRIAL
DEVELOPMENT PRO�ECT BY GERALD W. PASHCKE UNDER THE MUNICIPAL IN�USTRIAL
DEVELOPMENT ACT AN� AUTHORIZING SUBMISSION OF AN APPLICATION TD THE
COPIP4ISSIOPdER OF SECURITIES FDR APPROVAL THEREOF:
MOTION by Councilwoman Moses to waive the reading of the public hearing
notice and open the pu6lic hearing. Seconded by Councilman Schneider.
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PUBLIC HEARING MEETING OF COTOBER 20, 1980 PAGE 2
Upon a voice vote, all voting aye, Mayor Nee declared the mot�on carried
unanimously.
Mr. George Halvorson, Prestdent of First Corporate Serv�ces, Inc., presented
some background htstory of industrial revenue bonds. He stated, after World
War II, a FeUeral law was passed that allowed industrial revenue bonds for
development of economtcs and business in the commun�ty. He stated, after
the War, the South iook bold aggressive steps and took industry from the
� North, therefore, about 1967, the State of P1innesota did someth�ng about
this and passed the law which authorized industrial revenue bonds in the
State. Mr. Halvorson stated,in 1974, the State Legislature added to this
— �aw and adopted a law authorizing commerc,�al revenue 6onds and in 1978, they
augmented this again to include housing for low income, the aged and hand-
icapped. He stated the act�on by the Legislature was a very forward and
aggressive step to hold industry in M�nnesota. Ne pointed out that most
states have some law regarding revenue bonds.
Mr. Halvorson stated Mr. Paschke ts proposing a commercial development to
construct an office building at 73rd and University. He stated the size of
the building is 25,20� square feet and the 6ond lssue wtll be apQrox�mately
$925,000. Mr. Halvorson stated, with constructton of this building, added
taxes to the City would be about $30,000 annually. He pointed out all bonds
will be privately placed, with profess�onal buyers, and the credit of the
City will never be encumbered or encroached upon.
Mr. Jim Benson of Benson Associates presented an architectural line drawing
of the proposed office building. Mr. Benson stated he has represented Mr.
Paschke's interests over the last B or 9 years and they have had many people
come to them in regard to providing office space. He stated tfiey have lost
several tenants because space was not available, and those tenants that are
here in Fridley now really want to stay, but do not have room for expansion.
He stated they have many who wish to sign a lease today that would commit them
to this office space.
� Councilman Schneider asked Mr. Halvorson to describe the difference in commerc�al
revenue 6onds as opposed to industr�al revenue 6onds. Mr. Halvorson stated they
are the same, but commercial revenue bonds would take in a situation that is not
a manufacturing type business. He stated this could be any commercial enterprise
that would add to the payroll and tax base.
Councilnan Schneider asked, in the original legislation to provide for industrial
revenue bonds, if commercial applications were specifically dealt with. Mr
Halvorson stated the basic law was amended to include commercial developments.
Councilman Barnette asked the target date for construction and complet�on, if
the revenue bond was approved. Mr. Paschke stated he would like to start this
fall and finish next year, as he has tenants that want to have this space
available next August.
Mayor Nee questioned what type of materials would be used in construction.
Mr Paschke stated it would be a structural steel build�ng w�th masonry walls
and brick veneer, three-stories high, served by an elevator, and entirely
sprinkled.
Mayor Nee questioned the locat7on of the building on the s�te and Mr. Paschke
outlined the area and proposed parking on a map.
Councilwoman Moses asked Mr. Paschke why he is going with the industrial
, revenue bond approach. Mr. Paschke stated he felt everyone knows the financial
situation today and in the spr�ng of this year, he couldn't get any financing.
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PUBLIC HEARING MEETING OF OCTOBER 20, 1980 PAGE 3
He stated f�nancing was non-extstent all of 1980, and can see nothing in the
future in the matter of financrng. Mr. Paschke stated, other than industrial
revenue financing, he didn't know of any other way to go. He stated he has a
market for this office space and feels, at this time, they have commitments to
lease more than 50% of the space simply because there has been a need for good
off�ce space in Fr�dley.
Mayor Nee questioned the financing for Rauenhorst Construction. Mr. Paschke
stated it cou7d have come from many sources as they could have many �nvestors
or it could have been foreign f�nancing. He stated he is strictly on his own ,
for f�nancing and use of any money that is available, however, no financing is
available and �t �s either quit or sell. He felt, at this time, industrial
revenue bonds was the only means to continue.
Councilvdoman Moses asked if he was saying there wasn't any financing available.
Mr Paschke stated it is available tf you want to pay the interest rates, however,
$500,000 was the limit. P1r. Halvorson stated if there is any money availa6le,
�t would be a situation of a 10 year maturity and a htgh tnterest rate. He
po�nted out there is no such thing as a 20 year Toan anymore and if anyone makes
any loans, they are on a short term basis
Mayor Nee stated his concern for the City is taktng a step where they ar2 gotng
to build everything in Fridley with subsidized bonds. He asked if there �vas a
certain point reached in the interest rates when they wouldn't request this type
of financing.
Mr. Paschke stated if he satd he would never come in here again to ask for
financing through industrial revenue bonds, he probably would be lying.
Mayor Nee stated, for instance, if he could get financing at an interest rate
of 14%, if that would be a cutoff po�nt for requesting for this type of finan-
cing.
Mr. Paschke stated if everything stays the same, he would not build at 14%
interest rates. He felt if rates were between 10-1/2 and 11%, he would proba�ly ,
take the chance and build, although you might be looking at a losing deal from
the 6eginning.
Mayor Nee szated, several years ago, when industrial revenue bonds came tnto
being, he sent out a letter to the business community and asked if they thought
the C�ty should provide thts means of financing and if so, what guidelines they
would suggest. He stated there were a number of questtons on whether they should
finance someone to come �n to the C�ty and compete with an already esta6lished
bus�ness and should industrial revenue bonds be limited only to a certatn geo-
graph�cal area where the City wanted to st�mulate development or limited to
developments the Council felt were attractive. He stated he didn't receive
any feedback from the business community and no one seems to know what the
guidel�nes should be and the City has drifted into some industrial revenue
bonds.
Mayor Nee stated, as he recalled, one application was turned down because the
Counctl felt the 6usiness was competitive with a brewery that employed a lot of
Fridley res�dents.
Mayor Nee stated last year, the City was concerned about the lack of develop-
ment and started encouraging the use of industrial revenue bonds to stimulate
development and tL is now getting to the point where he is wondering where it
will stop.
Mr. Paschke stated he didn't know how to answer this question, 6ut stated he did ,
take a survey and felt that through his developments, he has either kept or
brought to Fr�dley 1,647 �obs. He felt you would have to ask these people tf
his proposed build�ng was financed by industrial revenue bonds, if they would
be in favor of �t.
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PUBLIC HEARING MEETING OF OCTOBER 20, 1980
PAGE 4
Mr. Halvorson felt the financial market itself and and interesi rates would
dictate when it would be feasible to seek other financing.
Councilman Schneider stated he serves on the Board of the Association of
Metropolitan Municipalities and every year they lobby to keep industrial
revenue Uonds and every year the Legislature accuses c7ties of abusing it,
and asked Pir. Halvorson if he knew of any abuses.
Mr. Halvorson stated he is not aware of any abuses and felt th�s law is one of
the best created in the State to hold people in Minnesota He stated he knows
of no defaults and no,�one is coming up short.
Mr. Herrick, City Attorney, stated he wasn't aware of any abuses, but supposed
it could be aryued that c�ties are providing iridustrial revenue 6ond f7nancing
when it is not necessary. He stated he has lieard iL said that cities are
competing with the financial inst�tutions, 6ut, frankly, he didn't think� that
is true because whether or not you use industrial revenue bonds, the same
ftnanc�al ins�,ituttons are �nvolved, the difference is that they rnake the
loans and don't have to pay State or Federal income taxes on the interest
from the loan so, basically, the taxpayers are subsidiz�ng this loan. He
felt it is a situation where Congress and the Legislature felt, under certa�n
circumstances, there was a need to stimulate commercial and �ndustrial construct-
tion, and it would have to be true now because of the high interest rates. He
felt if the inter•est rates ever get lower, the same arguments beiny made this
evening couldn't be made then.
Mayor Nee asked if anyone in the audience had any comments or questions on tYiis
proposal. There was no response at this time.
Councilwoman Moses stated there is a concern that the City wants to build an
office building in thz downtown Center City area and if Mr. Paschke's bu�lding
is constructed, there never will be an office building in the Center Ctty pro-
,7ect.
Mr, Paschke stated ii, is his feeling that one bustness doesn't kill another.
He felt business creates business and didn't feel the construction ofi Ins
building would affect the City's development plans.
Councilwoman Moses asked Mr. Paschke's opinion of the proposed oifice building
in the Center C'ity pro�ect. Mr. Paschke stated, tn his own opinion, he Felt
it is the wrong time and place. He didn't feel they could attrac� the type of
business they wanted and couldn't get a larye company to come in because of tfie
traffi c and close proximtty of residential property.
Mr Paschke stated if he was developtng this area, he would create a mall type
situation, take down the fences and put in some landscaping. Ne stated this ls
a 6locked an area you can only get into and not out of, without going into the
residenttal area, and felt there were several problems that would have to be
corrected.
Mayor Nee asked Mr. Halvorson if he knew of any cities that have defi �ed guide-
lines on whether or not to �ssue industrial revenue bonds.
Mr. Halvorson stated some mun�c�palities do not allow any commercial develop-
ment, some allow all commercial, some allow office warehouses as commercial
and many communities don't consider office building as commer�cial, but part of
industrial. He stated each municipality has guidel�nes and some are written and
some are not. Ne pointed out in Golden Valley, they set aside certa�n areas for
industrial revenue financing of industrtal or commercial developments.
Councilwoinan Moses stated, she felt, if they approve th�s p�°oposal, it would be
setting a precedent and that the only building in Fridley will be through
industrial revenue bonds.
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PUBLIC HEARING MEETING OF OCTDBER 20, 19&0 PAGE 5
Mr. Halvorson stated whether or not they have guidelines, he has never been
before a Council where they accepted something per se. He stated every pro-
posal should stand on its own merit.
Mr. Dave Harris, representing owners of the Rice Creek Building, stated their
butlding has been in existence since 1968 and they are not tn the position
to satisfy the needs of the community in regard to office space. He pointed
out many persons opened offices in other cities because of a lack of office
space in Fr�dley. Mr. Harris stated he would welcome another offi ce buildtng
in this area, and felt it would be good for the cor�muntty, and there is a �
definite need for additional office space.
Mr. Dick Harr�s, 6200 Riverview Terrace, asked what guidelines the Council
used when they approved industrial revenue bonds for other developments, and
what makes this pro�ect different.
Mayor Nee stated he was not sure it was different, but is concerned if the City
is 9oin9 to finance the whole business ventures in the community. He d�dn't think
the question of competition in the Center City Project area is relevant.
Mr. Harris stated he agreed with Dave that competit�on would probably be good
for the community. He stated he is basically concerned wtth the shutoff of
monies for construction in the community. He felt if the City does not use
industrail revenue 6onds, as a means of financing, construction will probably
shut down �n the City.
P�r. Qureshi, City Manager, felt the broad guidelines were that the Council would
consider this method of financing, through industrial revenue bonds, when a pro-
posal came in for expansion of an existtng bus�ness and where they were providing
an energy eff�cient build�ng. He stated industrail revenue bonds, in the past,
were restrtcted to existing businesses and those business that have a sizeable
financial base.
Mr. Qureshi stated there are communities that don't allow any industrail revenue
6onds, because they have other assets that attract industry, and some communities ,
that allow them for any development.
Mr. Qureshi stated the argument being made is that by hav�ng this office building,
tt creates more development and that is an element the Council will have to con-
sider. P1r. Qureshi state Mr. Paschke did a good ,7ob in his industrial develop-
ments and perhaps this factor should be weighed. He stated he can clearly symp-
athize that because of the high interest rates, it is not possible to compete
with office space in nearby communities where these buildings were constructed
at a much lower interest rate.
Councilman Barnette stated there is no question Mr. Paschke did a good ,7ob in the
industrial development in Fridley and from reviewing other situations given them
in the material from Mr. Halvorson, he can see no difference �n this proposal
than from others the Council approved.
Mr. Larry Chevalier, 6906 H�ckory Drive, stated he would recommend the Counci7
take a good look at the guideline part. He stated he wouldn't consider the
office bu�lding as big an employer as an industrial development. He stated
he really encourages the development in Fridley and knows there is a shortage
of office space, but his only opinton is when they say it brings in 100 people,
that isn't 100 employees in Frtdley, but tenants.
Mr. Herrtck, City Attorney, stated the Leg�slature sets forth what has to be
shown in order to qualify for industrial revenue bond financing. He felt,
beyond that, the Council should take each situation on a case-by-case 6asis ,
to determine whether it meets the criteria that the Legislature has set forth.
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PUBLIC HEARIi�G MEETING OF OCTOBER 20, 1980
PAGE 6
Mr. Herrick stated he thought tYiere are pro�eczs they shouldn'± approve, but
didn't necessarily feel it is because of the nature of the pro,7ect, as much as
it would be the strength of the applicant and the abtlity to satisfy the Council
that it would be a successful venture.
Councilman Schrieider asked, if thts was approved, if Mr. Herrick saw it as
locking the Council into a precedent. Mr. Herrick stated he felt every
situat�on differs and the economy also changes which brings a different light
� on the matter.
No other persons �n the audience spoke regarding this proposal for the issuance
of industrial revenue bonds.
MOTION by Councilraan Barnette to close the public hear�ny. Seconded by Council-
man Fttzpatrick. Upon a voice vote, all voting aye, Mayor Nee declared the
motion carried unantmously and the publ�c hearing closed at 8:58 p.m.
The representatives of Mr. Paschke who were present asked how soon action would
be taken on thts request. Mayor Nee stated action is usually taken at the next
meettng following the publtc hearing.
Because of the problem of being late in the construction season and, at the
request of the petittoner, Mayor Nee polled the Council to determine if they
had any ob�ection to taking action this evening.
Councilman Barnette and Councilman Fitzpatrick stated they had no ob�ection to
voting on the proposal this evening. Councilwoman Moses also indicated she was
prepared to vote on the matter and Cauncilman Schneider indicated he had mixed
reactions on the proposal.
MOTION by Councilwoman Moses to adopt Resolution No. 10H for the issuance of
$925,000 tndustrial development revenue bond to Geral W. Paschke under the
Mum cipal Industrial �evelopment Act, Minnesota Statutes, Chapter 474, as
� amended, and to authorize the Mayor and City Manager to execute the proper
documents. Seconded by Councilman 13arnette. Upon a voice vote, al� votin9
aye, Mayor Nee declared the motion carried unan�mously.
Councilman Schneider stated he will support the motion for the reason that
Mr. Paschke has demonstrated good faith in the City and has provided good
developments and that his financial rat�ng shows his credit worthiness and he
�s swayed by the argument that there is no other financing available.
Councilwoman Moses stated she �s supporting this pro�ect on its merits, with
the hope that Mr. Paschke won't have to come in for financing all his pro,7ects
on th�s basis of industrial revenue bonds.
UPOIV A VOICE VOTE TAKEN ON THE ABOVE MOTION, all voted aye, and Mayor Nee de-
clared the moti�n carried unanimously.
PETITION '�'5-
MOTION by Councilman Fitzpatrick to waive the reading of the public hearing
notice and open the public hearing. Seconded by Councilman Schneider. Upon a
voice vote, all vating aye, Mayor Nee declared the mot�on carried unanimously
and the public hear�ng opened at 9•05 p.m.
Mr. Flora, Publtc Works Director, stated this proposed alley vacation is �n
� Block 6, Fridley Park in the 6500-6600 block between East River Road and
H�ckory Street. He stated there is 100% petit�on on the vacation by the
property owners and it has been the C�ty's policy, �f there is 100%, the fee
would be waived. He stated staff would recommend this vacation with the
st�pulation that the City reta�n uttlity and drainage easements.
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PUQLIC HEARING MEETING OF OCTOBER 20, 1980
PAGE 7
Councilman Barnette stated he had heard that vacating an alley would raise a
person's property tax up to $10 and asked if this was the case.
Mr. Herrick, City Attorney, stated if the assessor feels the property is more
valuable 6ecause the alley was vacated from the plat, then he should assess it
at a higher rate which would raise the taxes. He stated, as a practical point,
it probably wouldn't make that much difference.
Mr. Charles Langer, 6530 Hickory Street, stated he was in favor of the vacation,
but questioned the proceedings to show this vacation on his title.
Mr. Herrick stated, to the best of his knowledge, you had to have a proceeding
subsequent to a Torrens t�tle and felt it would be hetter if all the people in
the area got together to combine this into one action as it would be more
economical.
No other persons in the audience spoke regardin9 this proposed vacation.
h�lOTION by Councilman Fitzpatrick to close the public hearing. Seconded by
Councilman Schneider. Upon a voice vote, all voting aye, P4ayor Nee declared
the mot�on carried unanimously and the pu6lic hearing closed at 9:12 p. m.
PUBLIC HEARING ON VACATION REQUEST, SAV ',�,80-05, PETITION �4-1980 TO VACATE ALLEY
MOTION by Councilman Schneider to waive the reading of the public hearing notice
and open the public hearing Seconded by Councilwoman Moses. Upon a voice vote,
all voting aye, Mayor Nee declared the motion carried unanimously and the public
hearing opened at 9:12 p. m.
Mr. Flora, Publ�c Works Director, stated this alley is located in Block 2,
Horizon He�ghts in the 5200 block between Lincoln and Buchanan Streets.
He stated the vacation involves only four properties and there is 100% petition
on the vacation of the alley. He stated if this alley is vacated there should
be a stipulation i,hat the City retain utility and drainage easements.
No persons in the audience spoke regarding the proposed vacation.
MOTIOfJ by Councilman Schneider to close the public hearing. Seconded by
Councilwoman Moses. Upon a voice vote, all voting aye, Mayor Nee declared the
motion carried unanimously and the public hearing closed at 9:15 p.m.
PUBLIC HEARING ON VACATION REQUEST, SAV k80-06, PETITION ,�6-19£30 TO �ACATE
ni i ru rnornnrnrr r_r_nn ni nrv nr-r�.irrni crii nnin �TU cTnrrTC.
MOTION by Councilwoman Moses to waive the reading of the public hearing notice
and open the public hearing. Seconded by Councilman Schneider. Upon a voice
vote, all voting aye, Mayor Nee declared the motion carried unanimously amd
and the public hearing opened at 9�15 p. m.
Mr. Flora, Public Works Director, stated this alley is located in Block 8,
Hamilton's Addition to hlechansville in the 5500 block between 6th and 7th
Streets.
He stated there is 100% petition by the property owners for the vacation of
this alley and staff has no ob,7ection if the City retains ut�lity and drainage
easements.
Na persons in the audience spoke regarding this proposed vacation.
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PUBLIC HEARING MEETING OF OCTOBER 20, 1980 PAGE 8
MOTION by Councilwoman Moses to close the public hearing. Seconded by
Councilman Barnette, Upon a vo�ce vote, all voting aye, Mayor Nee declared
the motion carried unanimously and the pub1ic hearing closed at 9:16 p. m.
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SAV #80-07, PETITION #7-1980 TO UACATE
nrni cTO�cT nnin omn CTDCCT•
MOTION by Councilman Fitzpatrick to waive the reading of the public hearing
notice and open the public hearing. 5econded by Councilwoman Moses. Upon a
� voice vote, all voting aye, Mayor Nee declared the motion carried unanimoulsy
and the public hearin9 opened at 9:16 p. m.
Mr. Flora, Public Works Director, stated the location of t Ms alley is in
Block 4, Plymouth Add�tion in the 48D0 block between Matn Street and 2nd
Avenue N. E.
He stated there is 100% petition on the vacation by the property owners and
staff has no ob,7ection if the City reta ms the utility and dratnage easements.
Mr. John Hartmann, 4II57 Ma1n Street, scated he was ln favor of th�s vacation.
No other persons in the audience spoke regarding this proposed vacation
MOTION by Counc�lman Fttzpatrick to close the public hearing. Seconded by
Councilwoman Moses. Upon a voice vote, all voting aye, Mayor Nee declared
the motion carried unanimously and the public hearing closed at 9:17 p. m.
ST. SAV �80-0$. TO VACATE UTILITY AN� DRAIfJAGE
ENT IN VACATED 57-1/2 AUENUE, 5750 - 3RD STREET
MOTION by Councilwoman Moses to waive the reading of the public hearing notice
and open the public heartng. Seconded by Councilman Fitzpatrick. Upon a
votce vote, all vot�ng aye, Mayor �Vee declared the motion carried unanimously
� and the pu6lic hearing opened at 9:18 p, m.
Mr. Flora, Public Works Director> stated this is a request to vacate the
uttlity and drainage easement in vacated 57-1/2 Avenue to be part of a new
building site at 5730 3rd Street.
Mr. Flora stated, at the public hearing, Mr. Jonak was requested to work with
NSP to determine how they would handle the utiltty easement. He stated the
petitioner has reached an agreement with NSP for relocation of the utility
pole and, therefore, request�ng vacation of the easement in connection with
a lot split.
Mr. Flora stated staff has no ob�ection to the vacation tf the C�ty can retain
the nortYierly 10 feet for a util�ty and drainage easement.
Mr. Quresh� asked if staff has checked into how a house would f�t on this lot
and felt this should be done for the next meeting when action is taken on the
vacatton.
Mr. Ed ,lanak, 133 Cr�aigway N. E., stated he ts part-owner of the property and
felt there should be a buildable lot there. He explained he is not goiny to
butld a home on the property, but �ust wanteca a buildable lot.
Mr. QuresYii stated he would like to know how a house will fit on the lot and
expla�ned this would not delay Mr. Jona�<'s plans, since th�s vacation would
� require two read�ngs of the ordinance 6efore �t is official.
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PUBLIC HEARING MEETING OF OCTOBER 20, 1980
PAGE 9
No other persons in the audience spoke regarding thts vacation request.
MOTION by Councilman Fitzpatrick to close the public hearing. Seconded
6y Councilwoman Moses. Upon a voice vote, all voting aye, �°iayor Nee declared
the motion carried unanimously, and the public hearing closed at 9•22 p. m.
NEW BUSINESS:
CONSI�ERATION OF SETTING PUBLIC HEARIP�GS ON NO�EMBER 10. 1980. FOR VACATION
K GROVE A�DITION AND MOORE LAKE PARK 2ND
MOTION by Councilman F�tzpatrickto set,the public heartng for November 10,
1980 for the above vacations. Seconded 6y Councilman Schnetder. Upon a
voice vote, all voting aye, Mayor Nee declared the motion carried unanimously.
G
ISSUANCE OF INDUSTRIAL
P1r. Herrick, City Attorney, stated he has reviewed the resolution and supporting
documents and is satisfied the resolution is proper. He stated Council gave
preliminary authorization for this pro,7ect some time ago and if there are any
specific questions, perhaps either the bond counsel, who �s present this eve m ng,
or he can answer them.
MOTION by Councilman Fitzpatrick to adopt Resolution No, 109-1980. Secorsded by
Councilrnan Schnetder. Upon a voice vote, all voting aye, Mayor Nee declared the
motion carried unanimously.
CLAIP1S:
MOTIOfJ by Counctlman Schneider to authorize payment of Claims No. 218776
through 290509. Seconded by Councilman Garnette. Upon a voice vote, all
votinq aye, Mayor Nee declared the motion carried unantmously.
ESTIP1ATES
Councilwoman Moses quest�oned the conflict on Change Order #4 in the amount of
�3,003.OD to Bud Johnson Construct�on.
Mr. Flora, Public Works Director, stated when they were first building the
nature center, it was found there vaas poor soil conditions and in construction,
the foundation had to be dug deeper and the increased cost was about b3,000.
P1r Flora stated they have been discussing this matter with the architect and
there �s a clause in the contract that states if there is a question, the
architect can make a final determinat�on and his decision was that the City
should pay this additional $3,000 cost. Mr. Flora stated staff is still
studying it and until the matter is resolved, they are requesting this $3,D03.00
payment bP held in obeyance.
Mayor Nee asked why the architect felt the construction company should get this
$3,000. Mr. Flora stated the architect was of the opinion that the soil 6orings
that were taken were not substanttal enough and, therefore, this cost is part
of the original construction and no one can determine what the soil conditions
are unt�l they actually dig for the foundation.
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PUBLIC HEARING MEETING OF OCTOBER 20, 1980
PAGE 10
Mr. Herrick, C�ty Attorney, stated the contract is a standard AIA contract and
does say the architect has the final decision, but he �ndicated he had no
ob�ection to withholding the $3,000 payment at this time.
MOTION by Councilwoman Moses to approve the est�mates as submitied.
Pavemasters, Inc.
14250 Sunf�sh Lake Blvd.
Anoka, MN 55303
PARTIAL Est. �1 (90%) - Locke Park Bikeway/Walkway
Paving Pro�ect
FINAL Est. Locke Park Erosion Control Pro�ect
Bud Johnson Construction Company Inc.
c/o Design Consortium, Inc.
1012 Marquette
Minneapolis, Minnesota 55403
Application No. 5- General Constructton for
Springbrook Nature Center
Halvorson Constructton
4227 - 165th Avenue N.E.
Wyoming, �4N 55D92
PARTIAL Est. �8 - 1980 Misc. Concrete Curb
& Gutter Contract
$ 7,137.00
$ 9,758.40
$35,022.00
$11,894 34
Seconded by Councilman Schneider. Upon a vo�ce vote, all voting aye, Mayor Nee
dec1ared the mot�on carried unan�mously.
COMMUNICATIONS.
CENTRAL CENTER FOR FAMILY RESOURCES: THAfJK YOU FOR CONTRI&UTI9�J:
MOTIDN by Councilwoman Moses to receive the commum cation from the Central
Center for Family Resources Seconded by Councilman Schneider. Upon a voice
vote, all voting aye, Mayor Nee declared the motion carried unam mously
AD�OURNMENT
MOTION by Councilwoman Moses to ad�ourn the meeting. Seconded 6y Councilman
Barnette. Upon a voice vote, all voting aye, Mayor Nee declarE�d the motion
carried unanimously and the Public Hear�ng f�ieeting of the Fr�dley City Council
of October 20, 1980 ad�ourned at 9.30 p. m.
Respectfully subm�tted,
��-�- ��-�..-�
Carole Haddad
Secy. to the City Council
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Wi 11 i anr J. PJee
Mayor
Approved: November 10, 1980
(NOTE, Minutes of October 27, 19$0 typed out of order
minutes of November 10, 7980)
They follow the
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