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08/12/1996 - 00002135� � � THE MINUTES OF THE REGULAR MEETING OF THE FRIDLEY CITY COUNCIL OF The Regular Meeting of the Fridley City Council was called to order by Mayor Nee at 7:30 p.m. PLEDGE OF ALLEGIANCE: Mayor Nee led the Council and audience in the Pledge of Allegiance to the Flag. ROLL CALL. MEMBERS PRESENT: Mayor Nee, Councilwoman Jorgenson, and Councilman Billings and Councilman Schneider MEMBERS ABSENT APPROVAL OF MINUTES: Councilwoman Bolkcom COUNCIL MEETING, JULY 22, 1996� MOTION by Councilwoman Jorgenson Lo approve the minutes as presented. Seconded by Councilman Billings. Upon a voice vote, a11 voting aye, Mayor Nee declared the motion carried unanimously. BOY SCOUS TROOP #167• Mayor Nee welcomed Boy Scout Troop #167 to the Council meeting and asked each member of the Troop to introduce themselves. Ms. Schrupp thanked Council for allowing them to attend the meeting. She said the Boy Scouts believe good citizenship is not �ust a word, but a deed. The Troop is work_ing on a merit badge. Councilman Schneider stated that he was glad they could attend the meeting to see how government works. Mayor Nee thanked the Boy Scout Troop for attending the Council meeting. PROCLAMATION - GOOD NEIGHBOR DAY, SEPTEMBER 4, 1996� Mayor Nee issued a proclamation proclaiming September 4, 1996 as Good Neighbor Day, He encouraged all persons who live and de business in the City to take part in Good Neighbor Day as a way of showing respect and concern for all in the communrty. Mr. Pribyl, Acting City Manager, stated that Schaaf Floral is promoting Good Neighbor Day by giving away a dozen roses to persons who, in turn, will give the roses to others He stated it is expected that a total of 5,000 roses will be distributed. He stated he understands that Schaaf Floral will be doing a media promotion on thls event. l._� � � FRIDLEY CITY COUNCIL MEETING OF AUGUST 12, 1996 PAGE 2 APPROVAL OF PROPOSED CONSENT AGENDA: l. ESTABLISH A PUBLIC HEARING FOR AUGUST 26, 1996, TO CONSIDER THE APPLICATION OF MAIN EVENT FOR AN INTOXICATING LIQUOR 2 Mr. Pribyl, Acting City Manager, stated that a liquor license has been requested for Main Event at 7850 University Avenue N.E. This is, for the property which was previously the site for T.R. McCoys and Longhorn Grill and Bar. Since a public hearing is required before a license can be issued he requested that Council set the public hearing for August 26, 1996. The Police Department is in the process of conducting a background investigation, and the results will be available for the public hearing SET PUBLIC HEARING FOR AUGUST 26, 1996 TO CONSIDER AN INTOXICATING LIQUOR LICENSE FOR MAIN EVENT, 7850 UNIVERSITY AVENUE N.E. RESOLUTION N0. 51-1996 AUTHORIZING CHANGES IN APPROPRIATIONS REIMBURSEMENT FUND, DRUG AND GAMBLING FORFEITURE FUNll, ING REVITALIZATION FUND AND THE CAPITAL IMPROVEMENT FUND Mr. Pribyl, Acting City Manager, stated that this resolution amends the estimated revenues and appropriations to the 1995 budget in accordance with the City Charter. The ad�ustments have arisen as a result of donations, unforeseen ex_penditures and items budgeted in the wrong categories. All ad�ustments have either been informally approved by Council through the Budget Reappropriation Form or made to eliminate neqative variances on the Comprehensive Annual Financial Report. ADOPTED RESOLUTION NO. 51-1996. 3. RESOLUTION N0. 52-1996 APPROVING A THIRD SUPPLEMENTAI, INDENTURE OF TRUST AND A 5ECOND AMENDMENT TO LOAN AGREEMENT REGARDING THE CITY'S COMMERCIAL DEVELOPMENT REVENUE BONDS (FRIDLEY BUSINESS PLAZA LIMITED PARTIQERSHIP PROJECT) AND OTHER DOCUMENTS RELATING THERETO: Mr. Pribyl, Acting City Manager, stated that this resolution is related to the Fridley Business Plaza Partnership Pro�ect. Recenue bonds were initiated in 1986 for this pro�ect, and the partnership is using a new letter of credit to secure the original bonds. It is, therefore, necessary to execute a document entitled Letter of Representations and Tndemnification, as well as amendments to the original loan agreement between the City and the Fridley Business Plaza Limited Partnership. Mr Pribyl stated that the documents also contain minor changes that do not affect the City. Jim � FRIDLEY CITY COUNCIL MEETING OF AUGUST 12, 1996 PAGE 3 O'Meara, Briggs & Morgan, has reviewed these documents, and they appear satisfactory. ADOPTED RESOLUTION NO. 52-1996. 4. RESOLUTION N0. 53-1996 DESIGNATING POLLING PLACES AND APPOINTING ELECTION JUDGES FOR THE SEPTEMBER 10, 1996 STATEWIDE PRIM�RY ELECTION: Mr. Pribyl, Acting City Manager, stated that this resolution designates both polling places and election �udges for the September 10, 1996 primary election. The �udges were picked from lists supplied by both political parties. ADOPTED RESOLUTION NO. 53-1996. 5. RESOLUTION N0. 54-1996 MODIFY II1G THE REDEVELOPMENT PLAN FOR kEDEVELOPMENT PkOJECT N0. 1 AND THE TAX INCREMENT FINANCING PLANS FOR TAX INCREMENT FINANCING DISTRICTS NOS. 1-3, 6, 7, 9 - 14 (WARD 3): Mr. Pribyl, Acting City Manager, stated that this resolution adds a parcel in the Great Northern Industrial Park to Redevelopment Pro�ect Area No. 1 for Wallboard, Inc. � Wallboard plans to construct a 30,000 square foot building which will create approximately thirty �obs It is necessary to expand the pro�ect area in order to enable the Housing and kedevelopmenr Authority to provide a loan to Wallboard. This resolution does not expand the tax increment financing dlstrict. 6 II � ADOPTED RESOLUTION NO. 54-1996. RESOLUTION N0. 55-1996 AUTHORIZING MUNICIPAL STATE AID FUNDS TO COUNTY STATE AZD HIGHWAY (C.S.A.H. 108) OSBORNE ROAD - OLD CENTRAL TO STINSON BOULEVARD (CP 91-08-108) (S.A.P. Mr. Pribyl, Acting City Manager, stated that Anok_a County Highway Department is proposing to upgrade Osborne Road between Old Central and Stinson Boulevard. The improvement will consist of concrete curb and gutter, storm water improvements, and a sidewalk on the Fridley side of the road. This resolution requests State Aid off-system funding for the City's portion of the improvement costs. ADOPTED RESOLUTION NO. 55-1996. RESOLUTION N0. 56-1996 TO APPOINT AN EMERGENCY MANAGEMENT DIRECTOR FOR THE CITY OF FRIDLEY. Mr. Pribyl, Acting City Manager, stated that Chapter 106 of the Fridley City Code provides for the appointment of an � � 8 CITY COUNCIL MEETING OF AUGUST 12, 1996 PAGE 4 Emergency Management Director, and the City's Emergency Management Plan refers to the Public Safety Director as the Emergency Management Director. This resolution formally appoints the Public Safety Director as the Emergency Management Director. ADOPTED RESOLUTION NO. 56-1996. RESOLUTION N0. 57-1996 AUTHORIZING AGREEMENT WITH THE STATE OF MINNESOTA FOR FURNISHING HAZARDOUS MATERIALS EMERGENCY RESPONSE SERVICE: Mr. Pribyl, Acting City Manager, stated that this agreement is with the Minnesota Department of Public Safety to provide chemical assessment team services to various counties in the area. The agreement is in accordance with the rules of the Minnesota Hazardous Materials Incident Response Act. The City will be reimbursed for all expenses incurred. ADOPTED RESOLUTION NO. 57-1996. 9. CLAIMS: AUTHORIZED PAYMENT OF CLAIM NOS. 6923$ THROUGH 69582. 10. LICENSES. APPROVED THE LICENSES AS SUBMITTED AND AS ON FILE IN THE LICENSE CLERK'S OFFICE. 11. ESTIMATES. APPROVED THE ESTIMATES, AS FOLLOWS: Frederic W. Knaak, Esq. Holstad and Larson, P.L,C. 3535 Vadnais Center Drive St. Paul, MN 55110 Services Rendered as City Attorney for the Month of July, 1996 ... 1Qewquist & Ekstrum, Chartered 301 Fridley Plaza Office Building 6401 University Avenue N.E Fridley, MN 55432 Services Rendered as City Prosecuting Attorney fcr the Month of May, 1996. $ 5,035.79 $ 15,15�.31 � � � � FRIDLEY CITY COUNCIL MEETING OF AUGUST 12, 1996 PAGE 5 Schield Construction Company 13604 Ferris Avenue South Apple Valley, MN 55124 Stonybrook Creek Bank Restoration Pro�ect No. 296 Estimate No. 6 . . . . . . . . . . . Hardrives, Inc. 14475 Quiram Drive Rogers, MN 55374-9461 Street Improvement Pro�ect No. ST 1995-1 & 2 Estimate No. 6 . . . . . . . . . . $ 36,754.03 . $123,392.46 No persons in the audience spoke regarding the proposed consent agenda items MOTION by Councilman Schneider to approve the consent agenda items. Seconded by Councilwoman Jorgenson. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. ADOPTION OF AGENDA• MOTION by Councilman Billings to adopt the agenda as submitted. Seconded by Councilman Schneider. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously OPEN FORUM, VISITORS. Ms. Shirley Arbor, 125 79th Way, questioned what was being done about the homes at the corner of East River Road and Osborne Road. She stated that this is a nice area with homes ranging in the $100,000 plus, but the first two homes coming into the area are not attractive and unkept, with parties held there all the time. Councilwoman Jorgenson stated that the City is working with the Police Department and the Code Enforcement Officer. Some citations have been issued. The City is aware of this situation, and it is being followed closely. NEW BUSINESS: 12. RESOLUTION NO 58-1996 CONSENTING TO THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY ADOPTING 1996 TAX LEVIES COZLECTIBLE IN 1997. Ms. Dacy, Community Development Director, stated that this resolution gives consent to the Fridley Housing and Redevelopment Authority (HRA) to impose a levy for a tax on all real property in the City. This action is a small portion of a larger issue which involves rehabilitation of the housing sLock. Fridley's population � FRIDLEY CITY COUNCIL MEETING OF AUGUST 12, 1996 PAGE 6 is declining and aging, and there has not been a lot of new residential housing. The income structure of the households is also changing and declining, and there is an increase in non- traditional households; single adults, single parents, and empty nesters_ In essence, Fridley is competing to retain its population and attract new households. Ms Dacy stated that the City has adopted a housing program to give people a reason to stay or move to Fridley and to create housing opportunities to prevent blight and provide neighborhood stability. Rehabilrtation programs using State, Federal, Community Development Block Grants, and HRA funds have been inrtiated to remove blighted housing. Programs have been initiated for first-time home buyers, and a rental inspection program is now in place. Ms. Dacy stated that there needs to be a mechanism to maintain the housing stock, and there will be further demands for rehabilitation. The HRA and the Council will have to evaluate the financial impact of redevelopment pro�ects, as there are scattered pockets of housing that are severely deteriorated The loan program for rehabili�ation is not a solution to all the housing problems but part of an attempt to prevent blight in the community. � Mr. Fernelius, Housing Coordinator, stated that the HP.A tax levy is authorized under state law. The levy would be used to support the revolving loan program, focusing on single family housing rehabilitation. The levy would be used as capital to create the loan program, and the loan would be repazd through the tax levy payments � Mr. Fernelius stated that the loan to the HRA would be ior $1.5 million at an interest rate of five percent over a fifteen-year period. All property in the City would be assessed for taxes payable in 1997. The levy would generate $168,993 in 1997 or .0441 percent of the total market value in the Crty. The impact on a single family home using an average value of $88,000 would be an increase in taxes of about $12 00 per year. In terms of industr�al property, using a value of $9,500,000, the increase in taxes would be about $1,300 per year. The tax levy has to be approved by the Council on an annual basis. Mr Fernelius stated that several other suburbs have enacted HRA tax levies Bloomington collects $693,DOG, which is used for general administration as well as housing programs, and Brooklyn Center collects $300,000 for economic development. Crystal is banking their tax levy to use the funds for future redevelopment. New Hope's levy is not large but is used for paying salaries. Richfield's levy would be similar to Fridley's, and South St. Paul has a levy �ahich amounts to $55,000 per year Mr. Fernelius stated that in regard to the need for a revolcing 1oan program, there are a number of factors to be considered. The first is the age and condition of Fridley's housing stock. The � � � FRIDLEY CITY COUNCIL MEETING OF AUGUST 12, 1996 PAGE 7 City has a substantial amount af housing units approaching thirty years of age. 0]der housing requires more attention and has some marketing implications in comparison with other suburbs in terms of amenities. The 1994 study evaluating housing conditions showed that there are a minimum of 900 homes in the City requiring some repair. Mr. Fernelius stated that another factor for a revolving loan program is that the private sector is not providing financing for rehabilitation to those persons that have higher debt loads or who lack equity in their home. A1so, there is not sufficient federal funding available, and it is important to access the City's ability to address housing condrtions now rather than respondinq to a crisis down the road. Mr. Fernelius stated that the HRA fund balances will decline in the next fifteen years due to other redevelopment activities. This levy would provide a funding source, and the program could become self-sufficient. The HRA considered this tax levy and passed a resolution adopting a levy for taxes payable in 1997. If Council adopts this resolution, the loan agreement would be discussed at the August 26 Council meeting. Councilwoman Jorgenson asked for what purpose the loans would be used. Mr. Fernelius stated that homeowners use the loans for replacing roo£s, siding, windows, and other repairs and improvements to their homes. Councilman Schneider stated that the City is now involced in a rehabilitation program. However, this would expand the program and allow more persons to participate. One issue the City has identified as a priority goal is programs to improve the housing stock. The better people feel about their homes, the better it is for the community. This seems to be a step in the right direction, as the value of everyone's home will increase and offset the dollars invested Mr Pribyl stated that the levy is for the HRA but does require the consent of the City Council. MOTIOIQ by Councilman Schneider to adopt Resolution No. 58-1996. Seconded by Councilwoman Jorgenson. Upon a roll call vote, Councilman Schneider, Councilwoman Jorgenson, Councilman Billings and Mayor Nee voted in favor of the motion and Mayor Nee declared the motion carried unanimously. 13. INFORMAL STATUS REPORTS: Mr. Pribyl, Acting City Manager, informal status reports. stated that there were no � � � FRIDLEY CITY COUNCIL MEETING OF AUGUST 12, 1996 PAGE B ADJOURNMENT: MOTION by Councilwoman Jorgenson to ad�ourn the meeting. Seconded by Councilman Schneider. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously and the Regular Meeting of the Fridley Crty Council of August 12, 1996 ad�ourned at 8.10 p.m Respectfully submitted, ,��, �,�,_,%,�� Carole Haddad Secretary to the City Council ,l r� �� , ! �J � �- � �'���r � - L�y`' L+� William J. Nee Mayor