Loading...
08/03/1992 - 00005619� � � �. THE MINUTES OF THE REGULAR MEETING OF THE FRIDLEY CITY COUNCIL OF AUGUST 3, 1992 The Regular Meeting of the Fridley City Council was called to order at 7:37 p.m. by Mayor Nee. PLEDGE OF ALLEGIANCE: Mayor Nee led the Council and audience in the Pledge of Allegiance to the Flag. ROLL CALL: MEMBERS PRESENT: MEMBERS ABSENT: Mayor Nee, Councilwoman Jorgenson, Councilman Billings, Councilman Schneider and Councilman Fitzpatrick None Mayor Nee stated that he conduct the meeting this his voiceo APPROVAL OF MINUTES: has asked Mayor Pro Tem Schneider to evening, as he is having a problem with COUNCIL MEETING. JULY 20, 1992: MOTION by Councilman Fitzpatrick to approve the minutes as presented. Seconded by Councilwoman Jorgenson. Upon a voice vote, all voting aye, Mayor Pro Tem Schneider declared the motion carried unanimously. ADOPTION OF AGENDA: MOTION by Councilwoman Jorgenson Seconded by Councilman Billings. aye, Mayor Pro Tem Schneider unanimously. OPEN FORUM, VISITORS: to adopt the agenda as submitted. Upon a voice vote, all voting declared the motion carried There was no response from the audience under this item of business. PUBLIC HEARINGS° 1. PUBLIC HEARING TO CONSIDER REVOCATION OF SPECIAL USE PERMIT, SP #89-08 FOR A REPAIR GARAGE ON PROPERTY ADDRESSED AS 7570 HIGHWAY 65: MOTION by Councilwoman Jorgenson to waive the reading of the public hearing notice and open the public hearing. Seconded by Councilman � � .. FRIDLEY CITY COUNCIL MEETING OF AIIGUST 3 1992 PAGE 2 Fitzpatricke Upon a voice vote, all Schneider declared the motion carried hearing opened at 7:40 p.m. voting aye, Mayor Pro Tem unanimously, and the public Ms. Dacy, Community Development Director, stated that the purpose o£ this pul�lic hearing is to consider whether this special use permit for a repair garage at 7570 Highway 65 should be revoked. She stated that two buildings are located on the property, and the rear building is occupied by Sam's Auto. Ms. Dacy stated that the public hearing was called because stipulations attached to this special use permit were not met by June 1, 1992. She stated that these stipulations involved outdoor improvements, fencing, electrical improvements, and a proper invoice/tracking system for vehicles and �parts. Ms. Dacy stated that the owners have installed asphalt, concrete curb and gutter, landscaping, and striped the parking lot. She stated that a portion of the outdoor fencing has been completed along the lot line between the trailer park and the rear building; however, the fencing in the parking lot has not been completed. She stated that the operator of Sam's Auto is not using the area to store vehicles at this time and proposes to construct the rest of the fence within two weeks. Ms. Dacy stated that another issue was electrical improvements, and she understands these improvements have been completed and are awaiting inspection by the Electrical Inspectoro She stated that she understands the owners are complying with the building improvements, and these will be made within the next few weeks. Ms. Dacy stated that Mr. Awaijane has indicated he has established a proper invoice/tracking system for vehicles and parts, and the Police Department would be conducting inspections in the near future. Ms. Dacy stated that Mr. Awaijane is present this evening to answer any questions, Mayor Pro Tem Schneider stated that he drove through the property, and it is markedly improved. He asked if the City has assurances that the rest of the fencing will be installed. Ms. Dacy stated that the purpose of the fencing was to screen junk vehicles, and as long as this area is just being used as a parking Tot, the objective at this time is being met. Mr. Awaijane stated that he received three bids for installation of the fencing, but Viking Fence cannot begin installation for at � least three weeks. He stated that he is not currently using this area for storage, only for parking. He stated that the area would be fenced before it is used for storage. He stated that the 87 FRIDLEY CITY COUNCIL MEETING OF AUGUST 3, 1992 PAGE 3 � eleotrical improvements have been completed, and they are waitinq for an inspection by the City. Mayor Pro Tem Schneider asked if he had a signed contract for completion of the fencing. Mr. Awaijane stated that he did not sign a contract with Viking Fence for installation of the fencing. He questioned if the area was not being used for the storage of junk vehicles, why they would need to install a fence. Ms. Dacy stated that when the special use permit was originally processed, this was the plan that was approved, and it was anticipated this would be a storage area. She stated that it is staff's opinion as long as there is no storaqe and the other fence is in place, the remaining fencing should be installed as soon as any vehicles are stored there. Mr. Awaijane stated that the Council can be assured the fence would be installed before he stores vehicles again in this area, Ms. Dacy stated that perhaps Mr. Awaijane should submit a copy of the signed contract with Viking Fence before the next Council meetinge � Mr. Awaijane stated that he did not have a problem with submission of the signed contract. Councilman Billings stated that he wished to commend Mr. Awaijane for getting the job done and working with the partners on the propertye He stated that he knows it has been a struggle and thanked him for the accomplishments that have been made. Mayor Pro Tem Schneider stated that the appearance of the property is the best he has seen it. No other persons in the audience spoke regarding the revocation of this special use permit. MOTION by Councilwoman Sorgenson to close the public hearing. Seconded by Mayor Nee. Upon a voice vote, all voting aye, Mayor Pro Tem Schneider declared the motion carried unanimously and the public hearing closed at 7:49 p.m. 2. PUBLIC HEARING ON PRELIMINARY PLAT REOUEST. P.S. #92-05, BY WAL-MART STORES, INC. TO REPLAT AN AREA iPARCELS 1- 31 INTO ONE LOT, GENERALLY LOCATED AT 85TH AND UNIVERSITY AVENUES: MOTTON by Mayor Nee to waive the reading of the public hearing � notice and open the public hearing. Seconded by Councilwoman Jorgenson. Upon a voice vote, all voting aye, Mayor Pro Tem � 88 FRIDLEY CITY COUNCIL MEETING OF AUGUST 3. 1992 PAGE 4 � Schneider declared the motion carried unanimously and the public hearing opened at 7:49 p.m. Ms. Dacy, Community Developmen� Director, stated that this is a preliminary plat for the property generally located at 85th and University Avenue5. She stated that the plat involves the old YMCA property and Isaacson trust property, and it is proposed to replat these parcels into three parts, one for a Wal-Mart store, another parcel for a commercial building, and the third parcel would be a separate outlot for a storm pond. She stated that the purpose of the plat is to provide right-of-way to extend the frontage road north to 85th Avenue. Ms. Dacy stated that the total area is approximately 29 acres, of which Wal-Mart would occupy sixteen acres. She stated that Wal-Mart is proposing a 116,OD0 square foot building with the possibility of expansion on the south portion oP the building. She stated that in 199Q, there was a larger development proposed for this site, and that the application did not proceed and was not reviewed by the Council. She stated that the 1990 development proposal was twice the size of this proposed development by Wal-Mart. Ms. Dacy stated that a lot of the activity is right next to the � Springbrook apartment complex which lessens the impact to the Springbrook Nature Center. She stated that it is the best design for the parcel in terms of traffic. She stated that there is adequate distance from the intersection in case another stop light is needed in the future. Ms. Dacy stated that Anoka County has reviewed the proposed plan, and the developer has complied with all their requirements. Ms. Dacy stated that there are 5.9 acres of wetlands on the site, about 2-1/2 acres of which are ditches that carry storm water. She stated that the areas in and around those ditches are classified as Type VII wetlands, and the area in the north is a Type VI wetland. She stated that to meet the requirements of the 1991 Wetland Conservation Act both ditches will be filled and storm water pipe installed. She stated that, in addition, approximately one acre of Type VI wetland located in the northwest corner of the property will also be filled, and the remaining Type VI wetland acreage will be converted to Type IV in order to provide a storm water detention area. Ms. Dacy stated that the Army Corps of Engineers' permit also requires an off-site wetland area, and this would be provided at Meadowlands Park. Ms. Dacy stated that the Planning Commission has recommended approval of this plat with thirteen stipulations. She stated that additional information regarding the ground water study and the � height of the lighting poles will also be reviewed by the Springbrook Nature Center Board. She stated that the Planning Commission has requested that the Springbrook Nature Center Board 89 FRIDLEY CITY COUNCIL MEETING OF AUGUST 3. 1992 PAGE 5 � provide a written recommendation on their findings relating to this additional information. Ms. Dacy stated that in regard to the lighting, the petitioner has reviewed the two types of light poles. She stated a 42 foot pole is proposed, and staff had originally recommended a thirty foot pole. She stated that staff is concerned with the impact on the height of the pole as it relates to the apartment complex and the Nature Center. She stated that Wal-Mart's lighting consultant addressed the concerns and reduced the amount of wattage to a 400 watt light bulb. She stated that the Springbrook Nature Center Board would be reviewing the lighting. Ms. Dacy stated that a detailed report was received regarding the ground water which staff has reviewed with the consultant. She stated an alternative that was not discussed in the study is to design the pond so the normal elevation matches the ground water elevation to the north. She stated that the Springbrook Nature Center Board will also be reviewing this alternative at their meeting Monday, August 10, 1992. Mr. Greg Frank, McCombs, Frank, Roos, engineers and planners for Wal-Mart, stated that since this application was submitted to the City, they have met with the Springbrook Nature Center Board and , the homeowners in the neighborhood at Meadowlands Park. He stated that they have received the Army Corps of Engineers' approval for mitigation and approval of the Rice Creek Watershed District in regard to Meadowlands Park. He stated that he appreciated the work and the effort of the City staff and Councilman Billings for attending the meetings. Mr. Frank stated that access to this site would be across from the shopping center to the north, and a frontage road is proposed on the east portion of �he west tying into the frontage road on the south boundary. He stated that the site would contain a 116,000 square foot Wal-Mart facility with parking in front. He stated that there would be landscaping and berming around the entire perimeter of the site. Mr. Frank stated that the ground water elevation is at 872 feet. He stated that a problem brought to their attention is what the impact would be on the wetlands if the ponding area is at 866 feet. He stated that several studies have been done by Braun Engineering, and one alternative is to raise the ponding area and shift it to the east at an elevation of 870 feet where the impact on the parking area would be minimal. Mr. Frank stated that the most recent study done by Braun Engineering this afternoon is that this pond may have a positive � impact in the south area of the wetlands where the water may flow throuqh the dike and sand and recharqe the wetland area. He stated that they would be meeting with the Springbrook Nature Center Board 1 � � 90 FRIDLEY CITY COUNCIL MEETING OF AUGUST 3, 1992 PAGE 6 to review this report. Mr. Frank submitted copies of this most recent study to the Council. Mr. Ron Krank, KKE Architects, submitted a drawing of a Wal-Mart store which would be similar to the one located in Fridley. He explained the type and color of the concrete block that would be used in the construction of this building. Mr. Pat Malmstrom, President of Malmstrom White Company, Llttle Rock, Arkansas, and the lighting consultant for Wal-Mart, stated that for safety purposes, Wal-Mart adheres to the Illumination Society Handbook. He stated that the main purpose for a 42 foot high pole i5 for customer safety. He stated that if they compromise the height, they will have to add more poles. Mr. Malmstrom stated that energy costs are also rising, and if they have a 30 foot pole they would need ten more luminaries. He stated that with a 400 watt lamp that is 4,��0 watts more they would be burning every hour, and this would not be as energy efficient. Mr. Malmstrom presented the type of light which Wal-Mart uses and stated that it is a clear lamp, and there is a point source, and it is easy to control with an inner reflector. He stated that the uniformity is what has made Wal-Mart's parking lots the safest in America. He stated that they have 1,700 stores and have not had one lawsuit regarding poor lighting standards. Mr. Malmstrom stated that the light they propose has a cutoff angle at 75 degrees, precision designed, and it is a down light generator. Mayor Nee asked how much reduction in brightness occurs from a 90 degree angle down to a 75 degree angle. Mr. Malmstrom stated that there is a 2.3 percent reduction with that particular angle. He stated that no matter if the poles are 42 or 30 feet high, the cutoff is at the same angle. Mr. Malmstrom stated that if the point of light becomes objectionable, there are side shields that could be installed. Councilwoman Jorgenson stated that she is concerned with the brightness of the light not only for the Springbrook Nature Center but the County roadway. She stated that she is not sold on the 42 foot versus the 30 foot pole. Mr. Malmstrom stated that 95 percent of the lighting would be facing down. He stated that the units are designed to totally eliminate sky pollution. He stated that it will look very dark from the street, but when you get onto the site it will be very bright. Councilwoman J'orgenson asked if the lighting standard proposed for this store is the same as the other Wal-Mart stores. She stated 91 FRIDLEY CITY COUNCIL MEETING OF AUGUST 3, 1992 PAGE 7 � that 5he felt the Council should look at the lighting at the other stores and mentioned the store in Anoka. Mr. Frank stated that there are also several other stores open in Eagan, Hudson, and Hastings. Councilman Schneider asked about ground base lighting. Mr. Malmstrom stated that they wish to achieve uniformity, and if this type of lighting were used there would be a lot of lighting equipment on the site. Mr. Malmstrom stated that if the lighting was not satisfactory all the City had to do was notify the store manager or Wal-Mart, and the situation would be rectified. He stated that Wal-Mart wants to be a good neighbor. Mr. Bill Thompson, 1580 Onondaga Street, stated that it is amazing the number of persons who use the Springbrook Nature Center facility. He stated that with such a diversity of people using the Center, it makes it unique and important to the City. Mr. Thompson stated that he has seen a copy of Braun Engineering's report and thinks there are a lot of questions to be addressed more � fully such as dealing with the water elevation. He stated that this report is only a snapshot as to what is happening, and the wetlands need to be considered very closely. Mr. Thompson stated that he believed there are also water quality issues to consider, and the quantity of the runo£f which could impact the Nature Center or the water quality of the Mississippi River. He felt that the Council should also look at the function and value of the wetlands that are filled versus the replacement at Meadowlands Park. Mr. Thompson stated that the Nature Center is an island, a very small green area, in a sea of development, and the Council needs to consider the encroachment on this area and the kind of wetland system the Nature Center will have in the future. He stated that the report from Braun Engineering does not answer this question. Mr. Thompson stated that it seems all this is taking place very fast, and it is difficult to keep track of all the information. He stated that he has heard there is another report available this evening, which he did not think anyone in the City has seen. He stated that he believed the ground water study is limited, and the time to review it was short. He stated that his family uses the Nature Center and thinks the Council should keep in mind the mission statements for the Springbrook Nature Center. He stated � that the Nature Center is a unique type of park deserving careful consideration. 92 FRIDLEY CITY COUNCIL MEETING OF AUGUST 3, 1992 PAGE 6 � Mr. Thompson thought that a change to a zoning that is not commercial or industrial to provide a long-term buffer for the Nature Center may be in order. He stated that he would like to be kept posted on things that are happening, as it is difficult when the time schedule is very condensed. Councilwoman Jorgenson stated that the property is zoned industrial, and asked Mr. Thompson what zoninq he would suggest. She stated that this is private land which is not owned by the City, and she did not think that future expansion of the Nature Center is possible. Mr. Thompson stated that he would like a zoning that would least impact on the Nature Center. He stated that there may be some industry that would be better for this site, as far as the drainage and water quality. He felt those issues should be studied very closely. Councilwoman Jorgenson stated that an industrial building could be constructed on this site without Council's approval unless variances were involved. She felt that a commercial development would be better for the area, as industrial development may involve chemicals that may be more dangerous to the Nature Center. � Mr. Thompson stated that urban runoff is a pollutant, he felt there are safety measures in place for industrial uses, and that this would be less of a threat than commercial development. MOTION by Councilman Billings to receive the preliminary Braun Engineering report on the ponding area. Seconded by Mayor Nee. Upon a voice vote, all voting aye, Mayor Pro Tem Schneider declared the motion carried unanimously. MOTION by Councilwoman Jorqenson to receive the communications from the cities of Spring Lake Park and Blaine regarding this proposal. Seconded by Mayor Nee. Upon a voice vote, all voting aye, Mayor Pro Tem Schneider declared the motion carried unanimously. Mr. Frank submitted information on projected traffic counts from the site. He stated that the peak is 262 vehicles per hour in to the store and 242 vehicles per hour out of the store. He stated that Wal-Mart's peak periods would be different from other businesses' peak periods. Councilwoman Jorgenson stated that she is concerned about traffic on Saturdays, as this is also prime time for the Nature Center and movie theaters in the area. Ms. Dacy stated that a key point is the location of the � intersection and the four lanes so that there is adequate room to maneuver. L� � � �� FRIDLEY CITY COUNCIL MEETING OF AUGUST 3, 1992 PAGE 9 Councilwoman Jorgenson asked if there would be a signal at this intersection. Mr. Frank stated that with the opening of Target, the County believed that at 85th Avenue the warrants will be met for a signal. He stated that the frontage road they are constructing will take some of the traffic off University Avenue. Mr. Flora, Public Works Director, stated that the City has tried to have a signal installed at 83rd and University but could not generate sufficient warrants. He stated that if Wal-Mart's development occurs, there may be enough traffic to warrant a signal at this interseotion which would be funded by cot sharing of the commercial property and Springbrook Apartments. Councilman Billings stated that from his experience, it is almost impossible to exit onto 85th Avenue when leaving the movie theaters. He stated that additional traffic on 85th Avenue could compound that problem. Councilman Billings stated that the City of Blaine would like a traffic count, and the City of Spring Lake Park has identified several issues such as a pedestrian bridge over University Avenue for the school children and fencing along University Avenue. He stated that he felt there would not be a lot of traffic from Wal-Mart when the children would be going to school. He stated that a resolution was also received from Spring Lake Park discouraging signalization at 83rd and University Avenues. Mr. Frank stated that they have reviewed the issues raised by neighboring communities. He stated that the City is looking at a trail system between the frontage road and University Avenue, and this may have been discussed with the neighboring communities. Ms. Dacy stated that in regard to the fencing issue, this was not addressed to any degree. Mr. Flora stated that from 85th Avenue south, there are large deep and wet ditches on each side of University, so it really is hard to cross the highway at those areas. Councilman Billings stated that copies of the minutes of the City Council meetinq of Spring Lake Park were requested, but, unfortunately, the City does not have copies. He stated that he does not know exactly how they have drawn some of their conclusions. Councilman Billings stated that he would be inclined to continue this public hearing, as there will be additional information forthcoming from the Springbrook Nature Center Board. 94 FRIDLEY CITY COUNCIL MEETING OF AUGUST 3. 1992 PAGE 10 � Councilwoman Jorgenson stated that she would encourage someone from the City of Spring Lake Park to attend this public hearing. She stated that they also suggested a complete study be done on the effects to the Springbrook Nature Center. Ms. Dacy stated that it is her understanding the petitioners would be submitting the resolution on the final plat and first reading on the rezoning for the next Council meeting. Councilman Billings stated that he is sure the developer will realize that staff is trying to adhere to the schedule, and it is the Council that may be slowing down this process. Councilman Billings stated that he received a telephone call regarding the possibility that citizens may request the Council to require an Environmental Assessment Worksheet for this project. Mr. Frank stated that he believed this was not going to happen. Ae stated that there were some conversations held today between Wal-Mart and the Builders Trade Union. He stated that it appears the project will move forward without the need for an Environmental Assessment Worksheet. Councilman Billings stated that he would be very frank and has � heard that some contractors do not like the fact that contractors were coming from the Dakotas to construct pro7ects, and they wanted to open the lines of communication with Wal-Mart. He stated that it sounds like this has been done. He stated that he did not know if there are other groups that may request an Environmental Assessment Worksheet. MOTION by Councilman Billings to continue this public hearing to the August 17, 1992 Council meeting. Seconded by Councilwoman Jorgenson. Upon a voice vote, all voting aye, Mayor Pro Tem Schneider declared the motion carried unanimously. 3. PUBLIC HEARING ON REZONING REOUEST, ZOA #92-05,BY WAL-MART STORES, INC., TO REZONE PROPERTY FROM M-2. HEAVY INDUSTRIAL, TO C-2, GENERAL BUSINESS,_ GENERALLY LOCATED AT 85TH AND UNIVERSITY AVENUES: MOTION by Councilman Billings to waive the reading of the public hearing notice and open the public hearing, Seconded by Councilwoman Jorgenson. Upon a voice vote, all voting aye, Mayor Pro Tem Schneider declared the motion carried unanimously and the public hearing opened at 9:30 p.m. Ms. Dacy, Community Development Director, stated that the parcel proposed for rezoning is owned by the YMCA at 85th and University � Avenues. She stated that the current zoning is M-2, and it is proposed to rezone to C-2. She stated that this would be the site of the proposed Wal-Mart store. �� � � 95 FRIDLEY CITY COUNCIL MEETING OF AUGUST 3, 1992 PAGE 11 Ms. Dacy stated that staff is recommending approval of the rezoning regardless of the outcome of the Wal-Mart development proposal. She stated it is believed that C-2 zoning is more compatible with the ad�acent Springbrook Nature Center. She stated that the Planning Commission has also recommended approval of this rezoning. No persons in the audience spoke regarding this proposed rezoning request. MOTION by Councilman Billings to continue this public hearing to the August 17, 1992 Council meeting. Seconded by Councilwoman Jorgenson. Upon a voice vote, all voting aye, Mayor Pro Tem Schneider declared the motion carried unanimously. RECESS• Mayor Pro Tem Schneider called a recess at 9:34 p.m. RECONVENED: Mayor Pro Tem Schneider reconvened the meeting at 9:44 p.m. All members of the City Council were present. OLD BUSINESS• 4. APPOINTMENT TO THE HUMAN RESOURCES COMMISSION (TABLED JULY 20. 1992 : MOTION by Mayor Nee to table this item. Seconded by Councilwoman Jorgenson. Upon a voice vote, all voting aye, Mayor Pro Tem Schneider declared the motion carried unanimously. NEW BUSINESS: 5. RESOLUTION N0. 55-1992 EXPRESSING INTENTION TO EXPAI3D MOORE LAKE BEACH PARK: Mr. Burns, City Manager, stated that the City has for some time been considering expansion of Moore Lake Beach Park. He stated that the City acquired the Pierce property and sent letters to other property owners requesting right of first refusal. He stated that it is requested the Council consider adoption of this resolution expressing their intent to expand Moore Lake Beach Park. Councilwoman Jorgenson asked if the Pierce property was purchased by the Housing and Redevelopment Authority or by the City. Mr. Burns stated that it was purchased by the City. Councilwoman Jorgenson stated that there is an area there that has to be cleaned. She also asked if residents were notified of this resolution and if the City is required to do so. 96 FRIDLEY CITY COUNCIL MEETING OF AUGUST 3, 1992 PAGE 12 � Mr. Herrick, City Attorney, stated that the City is not legally required to notify the residents. Councilman Billings stated that this resolution identifies the City's intent to eventually acquire the six remaining parcels. He stated that it does not necessarily prescribe a time table in which to accomplish these acquisitions. MoTION by Councilman Billings to adopt Resolution No. 55-1992. Seconded by Mayor Nee. MOTION by Councilman B111ings to amend Exhibit A of Resolution No. 55-1992 by correcting the address on PIN No. 24-30-24-21-0001 to 6070 Central Avenue N.E. Seconded by Mayor Nee. Upon a voice vote, all voting aye, Mayor Pro Tem Schneider declared the motion carried unanimously. UPON A VOICE VOTE TAKEN ON THE MAIN MOTION, all voted aye, and Mayor Pro Tem Schneider declared the motion carried unanimously. 6. RESOLUTION NO. 56-1992 OF THE CITY COUNCIL OF THE CTTY OF FRIDLEY, MINNESOTA, AUTHORIZING THE ACQUISITION OF AN EMINENT DOMAIN PROCEEDING TO ACOUIRE FEE SIMPLE: � Mr. Burns, City Manager, stated that it is recommended the Council acquire the property at 6070 Central Avenue N.E. through the eminent domain process. MOTION by Mayor Nee to adopt Resolution No. 56-1992. Seconded by Councilman Billings. Councilman Fitzpatrick stated that, in his mind, an immediate public need cannot be demonstrated for this property. He stated that he finds it difficult to take owner-occupied residential property by eminent domain when the City can collect taxes on the parcel. Councilwoman Jorgenson stated that she is in agreement with Councilman Fitzpatrick's comments. She stated that there are three properties to the south and two properties to the north of this parcel, so you would have an island of land with no plans for extension of the park. She stated that she could see no public purpose for obtaining the property at this time. Mayor Pro Tem Schneider asked if the property was non-homesteaded. Mr. Burns stated that the property was not homesteaded. Councilman Billings stated that the property is kind of quasi-owner occupied as an expanded family unit. He stated that he requested � information from staff relative to the taxes on this parcel. He steted that he did not consider the fact that it currently is non- homesteaded and, with that in mind, the current taxes are about 97 FRIDLEY CITY COUNCIL MEETING QF AUGUST 3. 1992 PAGE 13 � $2,500 per year. He stated that those taxes would be cut substantially if the property was sold to the family members on a contract for deed. He stated that the City receives less than $400 out of the total property taxes of $2,500, and over five years this property would generate about $12,000 for the other taxing authorities. Councilman Billings stated that, as he understands it, the "urgency�� of acquiring the property now is because the current property owner wishes to build on the property increasing the value of the property and putting an imposition on the taxpayers of the City to pay more for that property in the future. He stated that the Council has been elected to spend the funds of the City as prudently as possible and, at the same time, the citizens have to pay inta the County and School District, as well as thase other taxing authorities, and this should be given consideration as well. Mayor Pro Tem Schneider stated that he is trying to find a way to acquire the property at a reasonable oost and not to put anyone out of their home. He stated that it does not seem wise to allow the value to increase if it is the City's intent to acquire the property in the future. He stated that the City has to begin somewhere to acquire the parcels. He stated that if the City proceeds with eminent domain, he would be in favor of allowing the � residents to live there a minimum of five years. Councilwoman Jorgenson stated that if the City acquires the property, allows the residents to live there and they want to expand the property, it would then be owned by the City, and any expansion would probably be denied. Mayor Pro Tem Schneider stated that that is not necessarily true, but he has a problem with payinq more in the future for an inflated value. He stated that the City has already acquired one parcel, and he assumes all the parcels could be acquired within the next five to ten years. Mayor Nee stated that he does not think the City can acquire all the properties at once, but the acquisitions would probably occur within the next five or ten years. He stated that the plan was when the occupancy changed, the City would try to acquire the property. Councilman Billings stated that he understands that there have been aonversations with the property owners regarding the possibility of the first right of refusal and potential conversations relative to acquisition. Mr. Burns stated that letters were sent to the property owners � requesting first right of refusal. He stated that he had some discussion with Mr. Lenart regarding this particular parcel, and Mayor Nee had talked with Mrs. Nelson. � � � �a FRIDLEY CITY COUNCIL MEETING OF AUGUST 3, 1992 PAGE 14 Councilwoman Jorgenson stated that she had also spoken with Mrs. Nelson and her attorney. Councilman Billings asked, at some future time, if the owner would be a willing seller or i£ the only way to acquire the property was through eminent domain. Councilwoman Jorgenson stated that in discussions with Mrs. Nelson, she felt that at a possible date in the future, the City may be able to acquire this property. She stated that Mrs. Nelson's attorney indicated that Mrs. Nelson was hesitant to enter into a first right of refusal at this time. She stated that no one can guarantee what would happen in the future with any of the properties, as none of the property owners, except the owner of Parcel 5, want to enter into an agreement to sell their property. Councilman Billings stated that Councilwoman Jorgenson felt the property owner could potentially be a willing seller in the future. He stated that he has not heard from Mr. Lenart or any commitment that he would sell in the future. Mr. Richard Burger, 240 Chester Street, St. Paul, the attorney for Mrs. Nelson, stated that he was introduced to this situation several weeks ago. He stated that, frankly, he was quite appalled when he heard about the efforts made on the part of the City for first right of refusal or an option on that property. He stated that this seriously affects the property value, as a broker would not exert efforts to sell the property. He stated that he looks at this as an infrinqement on their property rights. Mr. Burger stated that two small houses are involved with one home in the process of being sold and is less than 500 square feet in size. He stated that the individual buying the home is totally disabled and is having considerable difficulty in meeting the financial needs to buy the property. However, this is one chance in a lifetime for him. Mr. Burger stated that the petitioner, Mr. Lenart, applied for a building permit on November 1, 1991 and was told by the Building Inspector that this permit could not be issued because the lot and home were non-conforming. He stated that it is not true that it was a lawful non-conforming use. Mr. Burger stated that the petitioner talked to Ms. Dacy and Ms. McPherson and was advised that in order to become legal lots, a lot split must take place, and the Zoning Ordinance states that the home must be 1,020 square feet. He stated that the dwelling is 478 square feet, and a 900 square foot addition was propased. He stated that Mr. Lenart paid $100 for the lot split application and was told by Ms. McPherson that he needed a certificate of survey. Mr. Burger stated that the lot was surveyed for a cost of $1,400 and was submitted to the City staff, and because the legal .. FRIDLEY CITY COUNCIL MEETING OF AUGUST 3, 1992 PAGE 15 � description was too long, Mr. Lenart was advised he would have to plat the property, and an additional $400 was paid to change the application. He stated that Mr. Lenart was charged $1,300 for the preliminary plat. He stated that Mr. Lenart was notified by mail by the City to have a final plat drawn and submitted to the County at a cost of $500. Mr. Burger stated that on May 13, 1992 the Planning Commission held a public hearing on the preliminary plat. He stated that City staff recommended approval to the Planning Commission with stipulations. He stated that the Planning Commission was suppose to make a presentation to this Council but this has not taken place. Councilwoman Jorgenson stated that the Planning Commission does not make a presentation to the City Council but that the Council receives the minutes of their meeting. Mr. Burger stated that, at any rate, the Planning Commission unanimously approved the application for the lot split. He stated that in his view, it complies with all zoning and ordinances of the City. He stated that this would be an upgrading of the property. Mr. Burger stated that his son lives in the other unit, and he is totally disabled and has difficulty meeting their financial � obligations. He stated that this house is one thing they vitally need. He stated that the City oertainly has the right of eminent domain, but it must be for public use and cannot discriminate by taking a home here and there. He felt that this is imposing a severe hardship, and the Council is not talking about that much money, as these are two small homes. He stated that it is a residential use, and the question is not whether it is homesteaded or non-homesteaded. He stated that if the City is not ready to acquire the properties within a reasonable time these people in the meantime need an accommodation in which to live. He stated that he felt the owners would be reasonable when the time came for acquisition of the property. Mayor Pro Tem Schneider asked if the City acquired the property by eminent domain and then signed an agreement that the property owner could live in the dwelling for five years or how ever long it takes to acquire the rest of the properties, what would be the issue. Mr. Burger stated that is not taking the property for public use. He stated if the property owner is the tenant, that is a private use. Mr. Herrick, City Attorney, stated that this situation would not be any different than the City acquiring the commercial property in the southwest quadrant of Mississippi and University and renting � it out until the ultimate use is ready. He stated that the intent would be to acquire the property for park purposes, and if the 100 FRIDLEY CITY COUNCIL MEETING OF AUGUST 3, 1992 PAGE 16 , Council chooses to rent it out until they are ready to develop it as a park, in his opinion, it would not be illegal. Mr. Burger asked about isolated taking of property. Mr. Herrick stated that the Council has to start somewhere. He stated that he respects Mr. Burger's opinion, but he does not agree with it. Mayor Pro Tem Schneider stated that the City does not know what future costs will be, and he would like to lock in a price so when they are ready to expand the park they have the property needed. He stated that in the meantime, no one wants to throw someone out of their home. He stated that he felt there could be a way to let them improve the property. Mr. Burger stated that no notice was given regarding this item. Mr. Herrick stated that the property owner is the only one affected. Mr. Burger felt that by adopting this resolution, it is a discriminatory act because there is a lot split for a minor addition. � Mr. Herrick stated that if the Council adopts this resolution, there will be an opportunity to present all the evidence on the value o£ the property as no one wants to take the property for less than its market value. Mr. Burger stated that when you give someone the opportunity of the first right of refusal, it makes the property unmarketable. He stated that a broker would not want to take a listing under those circumstances, and a property right that has been given away. Mr. Burger asked how long the property owner could remain on the property if it is taken by eminent domain. Mr. Herrick stated that it is difficult to say because in the future City Councils may have funds to develope this as a park. Mr. Burger stated that almost $5,000 has been spent to meet the City's requirements in order to proceed with the lot split, and now they are being told this would go to waste. He stated that if there was any indioation the property would be taken by condemnation the petitioner should have been so advised. Mayor Nee felt that the City could add these extra expenses to the cost for purchasing the property if this resolution is adopted. � Mayor Pro Tem Schneider asked if this matter could be neqotiated. ' ' � 101 FRIDLEY CITY COUNCIL MEETING OF AUGUST 3, 1992 PAGE 17 Mr. Burger stated that the petitioner has gone through all the proceedings and expenses for the lot split, and now the Council is talking condemnation. Mr. Lenart stated that there is no room for negotiation. Ms. Angela Mulhern, 6074 Central Avenue N.E., asked if this property was in an HRA district. She stated that a city cannot own a property and collect rent on a property that is not in an HRA district. She stated that she is displeased with the way the City is run and how they treat their residents. Ms. Mulhern stated that she looked at the agenda and finds that the City wants to condemn her property. She stated that their choice is either to have the property as it is or if they want to do anything with the property, they have to sell it to the City. She stated that they have nowhere else to go and would have to pay rent. Ms. Mulhern stated that she felt they were being blackballed since they filed their lot split application and could not believe a City can do this to their citizens. She stated that her neighbors built a large expansion, and no one said anything because they only needed a building permit. She stated that they only want to make the property liveable as it is only 478 square feet. She stated that it is an opportunity to have a home and a future, and the Council is telling them they have to rent. She stated that she seriously doubted if any of the Councilmembers would sign a first right of refusal on their property. Mrs. Nelson, would speak Councilman compassion. 6080 Central Avenue N.E., stated that her attorney for her. She stated that she wanted to thank Fitzpatrick and Councilwoman Jorgenson for her Mr. Burger stated that the £irst right of refusal agreement states that when you sell a property, you find a buyer for a certain amount of money, and then the person you signed the agreement with has the opportunity to meet that price. He stated that any owner who signs a first right of refusal makes the property unmarketable because a buyer does not want to spend the time getting financing and £ind out the City has the opportunity to purchase the property. Mayor Nee asked if there was room for negotiation. Mr. Burger asked what was to be negotiated. Mayor Pro Tem Schneider stated that the City's objective is not to put someone out of their home but to get control of the property now and in the future so that the City can expand the park. 102 FRIDLEY CITY COUNCIL MEETING OF AUGUST 3, 1992 PAGE 18 � Mr. Burger stated that the petitioner asked for a minimum addition to make that property livable. Mr. Lenart, the petitioner, stated that he would be willing to sign an agreement that ten to fifteen years from now he would give the City first right of refusal if they allow him to split the property and expand the dwelling. Councilwoman Jorgenson asked if there is any way this stipulation could be placed on the plat. Mr. Herrick stated that this stipulation could not be part of the plat, but there could be a legal document drawn that would indicate that the City would have an option to purchase the property in ten to fifteen years from now, and the price would be determined by each party appointing an appraiser and if they cannot agree, a third appraiser would be appointed. He stated that this could be a recorded document that would be part of the abstract on the property. He stated that the dooument could be signed simultaneously with the replatting. Councilwoman Jorgenson stated that she was told there was no legal way the City could place a condition on the plat. � Mr. Herrick stated that this would not be part of the plat but a separate document. He stated that another question he was asked was whether the City could acquire property in the future based on the value of it today. He stated that this is not possible, and the City would have to pay the fair market value at the time it was acquired. Councilwoman Jorgenson stated that she has been trying to resolve this issue for the last several weeks to come to some type of an agreement that is acceptable to both parties. Mr. Herrick stated that the problem is if the Council wants a legal opinion, the request should be made in writing so that everyone understands what is being requested. Councilman Billings stated that Mr. Herrick mentioned three appraisers being appointed to determine the fair market value of the property at some time in the future. He stated that if this is what happens in eminent domain proceedinqs, the agreement does not mean anything because the City has the right to do that in the future anyway. He stated the point that is missing is that there is confusion with the replatting and potential acquisition of the property. He stated that these are two distinct and separate actions. 1 Councilman Billings stated that the policy of the City in the past has been that when the City finds that a piece of property is for sale or about to be sold, they attempt to acquire it at that time 103 FRIDLEY CITY COUNCIL MEETING OF AUGUST 3, 1992 PAGE 19 � in order to minimize the amount of expense to the citizens of Fridley. He stated that when this property owner applied for a replatting and staff made the presentation at the public hearing, the petitioner indicated that he was going to buy the property and that, ultimately, if he did not buy the property, he was going to inherit the property and was not going to live there for the rest of his life. He stated that the conversations he had with Mrs. Nelson on the telephone and implication was that were made is that the City is trying to throw people out of their homes that they have been living in for all their lives and want to live in for the rest of their lives. He stated that is not the case. MOTION by Councilwoman Jorgenson to call the question and end the debate. Seconded by Councilman Billings. Upon a voice vote, all voting aye, Mayor Pro Tem Schneider declared the motion carried unanimously. Ms. Mulhern stated that Mr. Lenart just stated they are willing to sign a paper in ten to fifteen years they would sell the City the property, if they are allowed to build the addition. UPON A ROLL CALL VOTE TAKEN ON THE MAIN MOTION TO ADOPT RESOLUTION NO. 56-1992, the following voted in favor of the motion: Mayor Nee, Councilman Sillings and Councilman Schneider. The following � voted against the motion: Councilwoman Jorgenson and Councilman Fitzpatrick. Mayor Pro Tem Schneider declared the motion carried by a 3 to 2 vote. Councilman Schneider asked that the costs Mr. Lenart bore for platting be added to the award and, if it is legal, to explore what options there are to allow the property owner to remain on the property for a number of years. 7. CONSIDERATION OF A RESOLUTION APPROVING PLAT, P.S. #92-04, GARY LENART ADDITION fGENERALLY LOCATED AT 6070 CENTRAL AVENUE N.E.1: Mayor Nee stated that he felt Mr. Lenart should be reimbursed the costs of surveying and platting. Mr. Herrick, City Attorney, stated that the condemnation commissioners can take that into consideration. Councilman Billings verified the Code requirements for lot frontage in order for a lot to be conforming. He stated that lots with this same type of configuration have not been approved by the Council in the past and by and large is not encouraged by the City. Councilman Billings stated that there have been situations where � there are two homes on a lot and, historically, it has been the intent to remove those kinds of situations. He stated that from his perspective, a lot split of this nature is not necessarily in 104 FRIDLEY CITY COUNCIL MEETING OF AUGUST 3, 1992 PAGE 20 � the best interests of the City or the homes in the immediate neighborhood. He stated that he personally is not able to support this replatting. Mrs. Nelson, 6080 Central Avenue N.E., stated that this situation is not much different than the homes in Heather Hills. Councilman Schneider stated that all those homes front directly on the street. Mr. Herrick stated that the Council can either vote on the replatting or table this item on the basis that they have directed the acquisition of this property. He stated that when it comes to the point of determining the value, the commissioners will look on this as two buildings on one lot with the possibility there might have been a lot split. MOTION by Mayor Nee to table this item, based on the adoption of Resolution No. 56-1992 to acquire this property through eminent domain. Seconded by Councilman Fitzpatrick. Upon a voice vote, Mayor Nee and Mayor Pro Tem Schneider voted in favor of the motion. Councilwoman Jorgensan, Councilman Billings, and Councilman Fitzpatrick voted against the motion. Mayor Pro Tem 5chneider declared the motion failed. � MOTION by Councilman Billings to not consider this resolution and deny plat, P.S. #92-04, for Gary Lenart Addition. Seconded by Mayor Nee. Upon a roll call vote, Mayor Nee, Councilman Billings, and Councilman Schneider voted in favor of the motion. Councilwoman Jorgenson and Councilman Fitzpatrick voted against the motion. Mayor Pro Tem Schneider declared the motion carried by a 3 to 2 vote. 8. RESOLUTION NO. 57-1992 ESTABLISHING A PUBLIC HEARING FOR SEPTEMBER 8, 1992 ON THE MODIFICATION OF THE REDEVELOPMENT PLAN FOR REDEVELOPMENT PROJECT NO. 1 TO REFLECT INCREASED PROJECT COSTS, THE MODIFICATION OF THE TAX INCREMENT FINANCING PLANS FOR TAX INCREMENT FINANCING DISTRICTS NO. 1 THROUGH 12 TO REFLECT INCREASED PROJECT COSTS WITHIN REDEVELOPMENT PROJECT NO. 1, AND THE ESTABLISHMENT OF PROPOSED TAX INCREMENT FINANCING DISTRICT NO. 13 AND THE APPROVAL AND ADOPTION OF THE PROPOSED TAX INCREMENT FINANCING PLAN RELATING THERETO (ILLBRUCK, INC. L MOTION by Councilman Billings to adopt Resolution No. 57-1992 establishing the public hearing for September 8, 1992. Seconded by Councilman Fitzpatrick. Upon a voice vote, Councilman Sillings, Councilman Fitzpatrick, Mayor Nee and Mayor Pro Tem Schneider voted in favor of the motion. Councilwoman Jorgenson voted against the � motion. Mayor Pro Tem 5chneider declared the motion carried by a 4 to 1 vote. 105 FRIDLEY CITY COUNCIL MEETING OF AUGUST 3. 1992 PAGE 21 � 9. APPROVE CONTRACT FOR PRODUCTS AND SERVICES AND ADMINISTRATIVE SERVICES AGREEMENT WITH FLEX COMPENSATION, INC., FOR PLAN IMPLEMENTATION, EMPLOYEE COMMUNICATSONS, AND THIRD-PARTY ADMINISTRATION OF REIMBURSEMENT ACCOUNTS FOR HEALTH CARE AND DEPENDENT CARE EXPENSES OF CITY EMPLOYEES: Mr. Hunt, Assistant to the City Manager, stated that this contract authorizes implementation of a flexible spending reimbursement plan for City employees. He stated that this plan would enable employees to deposit part of their salary into an account which could be used for health care or dependent care purposes. He stated that the estimated cost for the first year would be about $6,455, but if consideration is given that expenses under this plan would be taken from pre-tax dollars on which no FICA would be paid by the employer, the break even point would be at about $2,125 for the average participating employee. Mr. Hunt stated it seems unlikely that employees would use less than that amount. He stated that in the second and subsequent years the minimum participation requirement would be even less and only about $1,250 per year. MOTION by Councilman Billings to approve the contract for products and services and administrative services agreement with Flex Compensation, Inc. Seconded by Mayor Nee. � Councilman Billings asked how many organizations were contacted before choosing this organization. Mr. Hunt stated that the staff contacted other cities, and the City of Anoka has used this group with the charge being minimal to the services rendered. He stated that the City did not do a major study on the organizations. He stated that the term of the contract is for one year and renewable each year after that. Councilman Schneider asked where the funds go if someone does not collect on their account. Mr. Hunt stated that the funds revert back to the employer. UPON A VOICE VOTE TAKEN ON THE ABOVE MOTION, Mayor Nee, Councilman Billings, and Mayor Pro Tem Schneider voted in favor of the motion. Councilwoman Jorgenson and Councilman Fitzpatrick were absent when the vote was taken. Mayor Pro Tem Schneider declared the motion carried. 10. APPROVE LEASE AGREEMENT WITH SCHOOL DISTRICT NO. 14 TO LEASE THE "A" FRAME BUILDING LOCATED AT NORTH INNSBRUCK PARK, ARTHUR STREET' MOTION by Mayor Nee to approve the lease agreement with School District No. 14 for lease of the "A" frame building at North � Innsbruck Park. Seconded by Councilman Billings. Upon a voice vote, Mayor Nee, Councilman Billings, Councilwoman Jorgenson and Mayor Pro Tem Schneider voted in favor of the motion. Councilman � 106 FRIDLEY CITY COUNCIL MEETING OF AUGUST 3, 1992 PAGE 22 Fitzpatrick was absent when the vote was taken. Mayor Pro Tem Schneider declared the motion carried. 11. INFORMAL STATUS REPORTS: Mr. Burns, City Manager, stated that there were no informal status reports. 12. APPOINTMENT: CITY EMPLOYEE: Mr. Hunt, Assistant to the City Manager, stated that thirteen persons were interviewed for the position of Assistant Finance Director, and Mr. Howard Koolick who was the Finance Director for the City of Andover was chosen to fill this vacancy. He requested that the Council concur with this appointment by the City Manager. MOTION by Mayor Nee to concur with the following appointment by the City Manager: Starting Starting Name Position Salarv Date Reolaces Howard Assistant $42,219.00 Aug. 17, David Koollck Finance per year 1992 DuBord � Director $3,518.28 Exempt per month Range S Step 1 Seconded by Councilwoman Jorgenson. Upon a voice vote, all voting aye, Mayor Pro Tem Schneider declared the motion carried unanimously. Mr. Hunt introduced Mr. Koolick to the Council. Mr. Koolick thanked everyone for giving him this opportunity, and he stated that he is looking forward to working at Fridley. The City Councilmembers welcomed him to the City. 13. CLAIMS: MOTION by Councilwoman Jorgenson to authorize payment of Claim Nos. 44481 through 44757. Seconded by Mayor Nee. Upon a voice vote, all voting aye, Mayor Pro Tem Schneider declared the motion carried unanimously. 14. LICENSES• MOTION by Councilman Billings to approve the licenses as submitted � and as on file in the License Clerk's Office. Seconded by Councilwoman Jorgenson. Upon a voice vote, all voting aye, Mayor Pro Tem Schneider declared the motion carried unanimously. ' � ��J 107 FRZDLEY CITY COUNCIL MEETING OF AUGUST 3, 1992 PAGE 23 15. ESTIMATES: MOTION by Councilwoman Jorqenson to approve the estimates as submitted: Chemlawn Services Corporation 1156 East Highway 36 Maplewood, MN 55109 Corridor Maintenance Project No. 227 FINAL ESTIMATE . . . . . Barna, Guzy & Steffen Ltd. 200 Coon Rapids Boulevard 400 Northtown Financial Plaza Minneapolis, MN 55433 . . . . . . . . . . $ 5,016.20 Statement for Services Rendered as City Attorney for the Month of June, 1992 . . . . . . . . . $ 2,737.65 Seconded by Councilman Fitzpatrick. Upon a voice vote, all voting aye, Mayor Pro Tem Schneider declared the motion carried unanimously. ADJOURNMENT• MOTION by Councilwoman Jorgenson to adjourn the meeting. Seconded by Councilman Billings. Upon a voice vote, all voting aye, Mayor Pro Tem Schneider declared the motion carried unanimously and the Regular Meeting of the Fridley City Council of August 3, 1992 adjourned at 11:27 p.m. Respectfully submitted, Carole Haddad Secretary to the City Council Approved: William J. Nee Mayor