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01/13/1997 CONF MTG - 4774� � C:lTY OF FICIDLEY CITY COUNCIL CONFERENCE MEETING JANtJARY 13, 1997 - 7:00 P.M. CONFERENCE ROOM A (UPPER LEVEL) 1. Minnesota Police Recruitment Service (MPRS) Lawsuit Options. 2. Prevailing Wage Legislation, 3. Secondhand Retail Operations. 4. Development Options for 73 '/2 Avenue and Highway 65 (Schrader Property). 5. Wellhead Protection Joint Powers Agreement and Designation of a Primary and Alternate Person to Serve on the Joint Users Group, 6, Other, � � �ffY OF FRIDLEY WIrlZGi112 W .�LtYIZS M E M O R A N D U M City Manager TO: The Honorable Mayor and City Council FROM: William W. Burns, City Manager �� DATE: January 9, 1997 SUBJECT: Prevailing Wage Legislation At the request of Mayor Jorgenson and Councilmembers Steve Billings and Ann Bolkcom, I had Fritz Knaak prepare the attached prevailing wage ordinance. The ordinance was also reviewed by Jim Casserly. Fritz Knaak will be at the conference meeting on Monday to discuss this item. WWB:rsc Attachment ORDINANCE NO. AN ORDINANCE OF THE CITY OF FRIDLEY, MINNESOTA, ADOPTING THE PREVAILING HOURS OF LABOR AND PREVAILING WAGE RATE ON CERTAIN PROJECTS FOR OR WITIiIN THE CITY IT IS HEREBY ORDAINED: Subdivision l. Legislative Findings. The City of Fridley finds it to be in the best interest of its citizens that buildings and public works projects constructed with City funds be constructed and maintained by the best means and highest quality of labor reasonably available, and that persons working under contract on buildings and public works constructed in whole or in part with City funds should be compensated according to the real value of the services they perform, which, for purposes of this Ordinance, is defined as the prevailing wage and hours of employment as determined for the City by the Minnesota Department of Labor and Industry, pursuant to Minnesota Statutes, Section 177.42, subd 6. Subdivision 2. Prevailing Wages and Hours on Certain City-related or funded Projects. a. Wages paid for all work that is financed in whole or part by funds obtained by bonds issues by the City, including but not limited to Industrial Revenue Bonds, and all projects let after May 1, 1997, financed by General Obligation Tax Increment Bonds shall be paid in accordance with the prevailing wage and hourly rate. b. Wages paid for all work performed on any project let after May l, 1997, that is financed in whole or in part by City funds shall be paid in accordance the prevailing wage and hourly rate. Section 3. Exceptions. This ordinance shall not apply to the following circumstances: a. Any project financed by City funds or bonds authorized by the City as provided in subdivision 2 that has a value of $25,000 or less or a value equal to or less than the amount required for sealed bids by Minnesota Statutes, Section 471.345, subd. 3. Ordinance No. Page Two b. Any sale of real or other property by the City that is sold for its fair market value; or c. Any single family housing project or program within the City; or d. Any multi-family housing project or program within the City. Enacted by the City Council of the City of Fridley, Minnesota, this day of , 1997. The following Council members voted Aye. and the following Nay: NANCY J. JORGENSON - MAYOR ATTEST: WILLIAM A. CHAMPA - CITY CLERK � � CfTY OF FRIDLEY William W. Bu��ris M E M(� R A N D li M City Manager TO: The Honorable Mayor and City Council FROM: William W. Burns, City Manager �� DATE: January 9, 1997 SUBJECT: Prevailing Wage Legislation At the request of Mayor Jorgenson and Councilmembers Steve Billings and Ann Bolkcom, I had Fritz Knaak prepare the attached prevailing wage ordinance. The ordinance was also reviewed by Jim Casserly. Fritz Knaak will be at the conference meeting on Monday to discuss this item. ii _�� : Attachment ORDINANCE NO. AN ORDINANCE OF THE CITY OF FRIDLPsY, MINNESOTA, ADOPTING THE PREVAILING HOIIRS OF LABOR AND PREVAILING WAGE RATE ON CERTAIN PROJECTS FOR OR WITHIN TIiE CITY IT IS HEREBY ORDAINED: S�bdivision l. Legislative Findings. The City of Fridley finds it to be in the best interest of its citizens that buildings and public works projects constructed with City funds be constructed and maintained by the best means and highest quality of labor reasonably available, and that persons working under contract on buildings and public works constructed in whole or in part with City funds should be compensated according to the real value of the services they perform, which, for purposes of this Ordinance, is defined as the prevailing wage and hours of employment as determined for the City by the Minnesota Department of Labor and Industry, pursuant to Minnesota Statutes, Section 177.42, subd 6. Subdivision 2. Prevailing Wages and Hours on Certain City-related or funded Projects. a. � Wages paid for all work that is financed in whole or part by funds obtained b� bonds issues by the City, including but not limited to Industrial Revenue Bonds, and all projects let after May l, 1997, financed by General Obligation Tax Increment Bonds shall be paid in accordance with the prevailing wage and hourly rate. b. Wages paid for all work performed on any project let after May l, 1997, that is financed in whole or in part by City funds shall be paid in accordance the prevailing wage and hourly rate. Section 3. Exceptions. This ordinance shall not apply to the following circumstances: a. Any project financed by City funds or bonds authorized by the City as provided in subdivision 2 that has a value of $25,000 or less or a value equal to or less than the amount required for sealed bids by Minnesota Statutes, Section 471.345, subd. 3. Ordinance No. Page Two b. Any sale of real or other property by the City that is sold for its fair market value; or c. Any single family housing project or program within the City; or d. Any multi-family housing project or program within the City. Enacted by the City Council of the City of Fridley, Minnesota, this day of , 1997. The following Council members voted Aye. and the following Nay: NANCY J. JORGENSON - MAYOR ATTEST: WILLIAM A. CHAMPA - CITY CLERK ��i; f�!c �� i%�.�. ' V ._ �� c� �� i�� .� �\,� : 'L ,►i. :r Fridley Police Department Memorandum To: William W. Burns � � From: Dave Sallman �� Date: January 10, 1997 Re: Second Hand Dealers Attached is an incredible amount of information that illustrates the issues that need to be considered when licensing merchants that deal in used products. The primary problem is illustrated in E�ibit 4 which shows a partial listing of the types of businesses that participate in second hand goods. Some of the merchants listed are not currently in Fridley but this is not a complete list of even all Fridley businesses. Investigator Rewitzer has shown the types of property that is typically stolen in Fridley with the thought being that businesses which deal in those types of second hand goods would be a reasonable place to start when deciding to regulate. Should the Council choose to go forward with a second hand dealer's ordinance we would also include a proposed change to the zoning laws which would restrict these types of businesses to C-2. There are a number of exemptions listed in the attached proposed ordinance (Exhibit 5) along with discussion of the different issues. Investigator Rewitzer and I look forward to discussing this issue with the Council on January 13t'', 1997. � Fridley Police Department �RID(F` . A��. Memorandum ��, 0 Date: January 9, 1997 To: Director Sallman From: Investigator Rewitzer Re: Secondhand Goods Dealers I have prepared several exhibits regarding the issue of regulating secondhand goods dealing in the City. The exhibits are described as follows: Exhibit 1 Shows 1996 crime statistics for the City of Fridley. The exhibit clearly shows thai `ihe�Irts' constitute the single largest crime category by numbers. Exhibit 2 Shows 1996 stolen property by type and nLimbers of articles stolen within each type. TIIe exhibit clearly shows that `radio, TV, and sound entertainment devices' (stereo's & equipment) are among the most stolen items. Exhibit 3 Shows 1996 stolen property by type and value of loss within each type. The exhibit shows that after `motor vehicles' and `other' (the `other' category includes a$200,00 reported loss of inedical equipment contained in a semi-trailer as well as a$100,000 reported loss of scrap metal) `radio, TV, and sound entertainment devices' (stereo's & equipment), `tools' and `office equipment' make up the largest dollar loss of stolen items. Please note that the figures contained in exhihits 1, 2, and 3 are ��ot the "official" figures of �he Frrdley Police Department but reflect the "best assessment" at this date fro�n currently availaGle recor•cl.s sources. The following facts are evident from viewing exhibits 1, 2, and 3: • Thefts are a crime which touch more citizens than aily other single crime category. • Radios, TV's, and stereo equipment, followed by personal accessories, and tools are among the most stolen items froin citizens. • After motor vehicles and a miscellaneous catch-all category, radios, TV's, and stereo equipment followed by tools and office equipment comprise the greatest overall dollar loss to citizens. The following conclusion may be drawn froln viewing exhibits 1, 2, and 3: Thefts of moveable persona[ property comprise a great loss of dollars arrd seccrrity rcnd therefore have a negative impact on the qr�ality of life, safety crnd ; enerrrl ►velfave of tlie citizens of the City of Fri�tley The following hypothesis may therefore be postulated: • That the kinds, amount, and value of property stolen suggest that some inarket must exist for the disposal of such property. • That the limited activity encotmtered in street patrol would suggest that a more institutionalized market is being utilized. • That the services provided by secondhand goods dealers potentially provides that institutionalized market and would therefore suggest that an opportunity for the commission of crimes and their concealment exists because secondhand goods dealers have the ability to receive and transfer inoveable property easily and quickly. • That regulation of secondhand goods dealers may serve to prevent such businesses from being used as a ready market for stolen property. • That the elimination of a market far stolen property may negatively impact the ability of criminals to traffic in stolen property and may therefore serve to lessen the incidence of theft crimes in the City. • That the public interest would be served in actions taken by the City that are designed to lessen the incidence of thefts. Exhibit 4 Shows the types of property for which there exists a known "secondhand" or "used" market as well as the businesses involved. Businesses highlighted in bold are known to operate in Fridley and may therefore be affected by regulation of secondhand goods. Exhibit 5 Shows a proposed Secondhand Goods Dealer ordinance for discussion. The sidebar on the right side of the exhibit coi�tains annotations concerning specific aspects of the ordinance. The proposal is loosely based on the current pawn shop ordinance (Chapter 31). Chapter 31 regulates not only property pawned at the pawn slzops but property the pawn shops buy outright from their customers. It may be said that pawn shops operate as de facto secondhand goods dealers since it is estimated tl�at at least one third of their business consists of such purchases. Exhibit 6 Shows an excerpt from the City of Andover ordinance covering secondhand goods dealers. Exhibit 7 Shows an excerpt from the City of Robbinsdale ordinance covering secondhand goods dealers. Exhibit 8 Shows an excerpt from the City of Blaine ordinance covering secondhand goods dealers. The foregoing ordinance excerpts are indieative of the many types of ordinailces in effect in the Twin Cities and include only those parts of the ordinances that are significantly relevant to secondhand goods. Most cities treat secondhand goods dealers and pawnshops similarly with respect to license application, reportiiig requirements, penalties, etc. You may note that the number of exemptions listed in the ordinance proposal (exhibit 5) is far greater than listed in any of the ordinance excerpts (exhibits 6, 7, and 8). This addresses a flaw which I believe exists in the ordinances of other cities that have been reviewed. Once on the road to regulating this type of commerce, where, why and how do the lines get drawn? There is much to consider in this matter. Some issues are philosophical while others are strictly practicaL I hope the foregoing is of benefit in sorting this all out. 1996 CRIME STATISTICS Crime Type Murder Kidnapping Criminal Sexual Conduct Robbery Assault Disorderly Conduct Public Nuisance Harrassing Communications Staiking Weapons Violations Vandalism Auto Theft Theft Burgiary Burgiar Thef Auto Thef Vandalisrr Weapons Violation< Stalkinc Harrassing Communications Pubiic Nuisance Oisorderly Conduct Assault Robbery Criminal Sexuai Conduct Kidnapping Murder Incidents 0 2 43 13 413 388 655 264 9 46 637 128 1478 181 0 200 400 600 800 1000 1200 1400 1600 Exhibit 1 Exhibit 2 1996 AMOUNT OF STOLEN PROPERTY PropertY Type Radio, TV & Sound Equipment Personal Accessories Tools & Equipment Consumer Items & Perishapies Sports Equipment Motor Vehicles Bicycles Auto Parts & Equipment Currency Other Clothing Jewelry O�ce Equipment Household Appliances Guns Camera Equipment Musical Instruments Snowmobiles & ATV's Motorcycles & Minibikes Viewing Equipment (Binoculars) Other Types of Vehicles ' Radio, N 8� Sound Personal Accessories I Tools & Equipment Consumer Items Sports Equipment Motor Vehicles !i Bicycles ' Auto Parts Currency Other Jewelry Office Equipment Household Ao�liance<_ F , Camera Equipment Musical lnstruments ; Snowmobiles & ATV's Number of Articles 1,882 348 325 309 182 140 136 133 123 104 82 70 52 48 28 13 9 5 4 4 3 I i , � i � � I 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 � �z�� '.��L'� �)�' �`�'U�.�'�' 1'R�)i'i:lZ"I�� 3'r�pert�- 7�v�e i�1o,cr Vehicles 'JiriE� � ..+,... T�/1 �J( � ..� �ry �v'�..�.w,..� . � �.� � �ti �.N�.�� t t ...� �:� � / � _.�..J.� .....,. ,.,.�Y � �� _.., .iJ' �� . .. .;�C�.: -�, �_, �. -C"�JJ,.� :� �IC'1�.�5 �i�C'?!1''1CD1;@S �u r��i�5 i.�C`^,�C Hcuse^cid Appliances Autc Parts 3� Equipment Guns Camera Equipmert Musicai Instruments Viewing cquipment �Biroculars, �tc; Total l�r�llar �'.�lt�t n v`'t.:ii.v.'.lC� �.:1 .� i V. v.+ J.:. v � �_ , .�' `. �' � ,. ,. . ,. � �r.��.�� _�..,y� .... 2' �67 CC � �,, � � ��,�1 �u-i,�v c.��9.�C o.3a4.vv 5,940.�0 i'S.vO � 1.963.036.00 Typical "Secondhand" Property Types (excluding vehicles) V;ewing Equipmert :'vtusicai Instruments ;Binoculars, e?c; Camera Equipment Household Appliances Guns Bic Personai Accessories Sports Equipment Jewe Radio. N 3 Sound pment Cffice EGuioment ___ _ _�a�cment T:T;13��?: � Secondhand or Used Property Types Propert�TYpe Amusement Devices (Pinball Machines, Slot Machines) Animais & Pets Antiques Auto Parts Auto Salvage Automobiles Bicycles Books Cameras & Video Equipment Clothing Coins, Bullion, Ingots Computer Equipment C rafts Firearms Furniture Household Appliances Jewelry Mobile Homes Music Recordings (CD's & Cassette Tapes) Outdoor Power Equipment (Lawnmowers, Snowblowers, etc) Overstock/Surpius/Bankruptcy Stock Recreational Vehicles (Campers, Snowmobiles) Sporting Goods Sports Cards & Collectibles Tools N's, VCR's, Stereo Equipment Video Games Business Involved Action Music and Games Pet Connection Antiques Minnesota Central Auto Parts Salvage Center Motor Yalet ABC Bike Booked Solid National Camera Exchange My Sisters Cioset Apache Coin Budget Computer North Country Gallery Bills Gun Shop J's Furniture Gallery Encore Recycied Applian Diamondhead Jewelers Ali Season Mobile Homes Cheapo Records Cherokee Power Equipment Axman Surpius Tousiey Motor Sports Rebound Sports Minnesota Sports Collectibles Tried & True Tools Music Go Round Video Game Network EYhibit 4 l'rupuied prdinance Sccondh:�nd Goodti Dr�ilcrs p� � 1 i'.Xhl�ll � CHAPTER ## SECONDHAND GOODS DEALERS Annotations ##.O1 PURPOSE The City Council finds that the use of services provided by secondhand goods dealers potentiallv provides an opportunity for the commission of crimes and their concealment because secondhand �oods dealers have the abilitv to receive and transfer moveable propertv stolen by others easily and quickly. �Tl1e Cit�� Council also finds that consumer protection re�;ulation is w�rr�nted in transactions involvin� secondhand �oods dealers. The purpose �f this ordinance is to prevent secondhand goods businesses from being used as facilities for the commission of crimes and to assure that such businesses comply with basic consumer protection standards, thereby protecting the public health, safety and general welfare of the citizens of the City of Fridley. ##.02 DEFINITIONS 1. Licensee. The person, corporation, partnership, or association to whom a license is issued under this Chapter including any agents or employees of the person, corporation, partnership, or association. 2. Secondhand Goods Dealer. A person, corporation, partnership, or association whose regular business includes selling or receiving items of tangible personal property previously used, rented, owned, or leased. Exemptions are specified in Section ##.03. �. Public Safety Director. The Public Safety Director of the City of Fridley or the Director's designee. 4. City. The City of Fridley, Minnesota, a municipal corporation. ##.03 EXEMPTIONS Vast majority of crimes atf�ectin�� Fridlev citiz�ns .u� thef�ts an�i bur�,laries. l�hr majoritv of stolen items cunsists uf easil�� uveable �=oods such as raciio, T'V. and other sound entertainment devices; personal accessories; and rools. Is there anv consumer protection issue? tilaybe in consignment but there is no[ a desperation issue as in pawning property. Exemptions necessary to avaid This Chapter does not apply to or include the following: regulacing every business chac deals in "used" �oods. Proposed Ordinance Secondl�and Goods Dealers p�o� � 1. The purchase or sale of secondhand goods at the premises licensed for the trade or business of pawnbroker under Chapter 31 of the Fridley City Code provided that the person, corporation, partnership, or association to whom a pawnbroker license is issued complies fully with the requirements of Chapter 31 for all property deposited, left, sold, purchased, pledged, or pawned. 2. The purchase or sale of secondhand or used goods at occasional " a�rage" or "vard" sales where all of the following are present: a. The sale is held on property occupied as a dwelling by the seller or owned, rented or leased by a charitable or political organization; b. The items offered for sale are owned by the occupant; c. The sale does not exceed a period of 72 consecutive hours; d. No mare than three (3) sales are held either by the saine person or on the same property in any 12 month period; and e. None of the items offered for sale have been purchased for resale or received on consignment for the purpose of resale. 3. The purchase or sale of secondhand or used goods at estate sales held at the decedents residence. 4. The purchase or sale of secondhand or used goods at an auction held by a licensed auctioneer if occlirring not more than once in a 12 month period. 5. The purchase or sale of secondhand or used goods at sales or auctions conducted by the sheriff or other public officials in the discharge of their official duties. 6. The purchase or sale of secondhand or used �oods at sales or auctions conducted by assi�nees or receivers appointed in the state to make sales for the benefit of creditors. 7. The purchase or sale of only those secondhand or used goods taken as a part or full payment for new � and where such business is incidental to and not the primary business of the person, corparation, partnership, or association. 8. The purchase or sale of secondhand or used motor vehicles by a person, corporation, partnership, or association licensed as a dealer in used motor vehicles under Chapter 19 of the I'ridley City Code. 9. The purchase or sale of secondhand or used automobile parts or automobile salva�e by a person, corporation, partnership, PAWNBROKER e�emption - secondhand �oods purchases and sales are already co�ered under Chapter 3 l in tllis case. GARAGE SALE exe�7�ptioil - how many to allow per year? ESTATE SALE exemption AUCTION exemption SHERIFF & CI"I'Y AUC"CION exemption CREDITOR & RECGIVER AUCTION exemption TRADE-IN exemption USED CAR exemption JUMC YARD exemption Proposed Ordinance Secondhand Goods Dcalers P��*e 3 or association licensed as a junk yard under Chapter 24 of the Fridley City Code. 10. The resale by a person, corporation, partnership, or SURPLUS exemption association, of surplus, overstock, or dama�ed �oods, purchased from a merchant, manufacturer or wholesale dealer, having an established place of business; or of goods purchased at an open sale from any bankrupt stock. 11. The purchase, sale, or swap of secondhand or used goods at a public exhibition, exposition, trade show, or swap meet provided the exhibition, exposition, trade show, or swap meet does not last longer than ten (10) days in any twelve month period. 12. The purchase or sale, by a charitable organization, of secondhand or used �oods donated to the charitable organization. 13. The purchase ar sale of agricultural products or produce at a public or farmer's market. 14. The purehase or sale of secondhand or used books or ma azines where the purchase andlor sale of such items and related accessories is the prinlary busuless of the person, corpoi-ation, partnership, or association. 15. The purchase or sale of secondhand or used sport trading cards or bona fide sports collectibles where the purchase and/or sale of such items and related accessories is the primary business of the person, corporation, partnership, or association. EXHIBITION & SWAP MEET exemption - lil:e those events periodically held at Columbia Arena GOODWILL e�emption PARMERS M[{T exemption PRIMARY BUSIN EXEMPT(ONS: USED BOOKS exemption SPORTS CARDS exemption 16. The purchase ar sale of secondhand or used sound or video recordin�s, or films where the purchase and/or sale of such items C� & TnPE RECOR�11vGs and related accessories is the primary business of the person, exempt�o�, corporation, partnership, or association. 17. The purchase or sale of secondhand or used recreational motor vehicles, motorcycles, snowmobiles, boats or campers Kv exemption where the purchase and/or sale of such items and related accessories is the primary business of the person, corporation, partnership, or association. 18. The purchase or sale of secondhand or used mobile homes where the purchase and/or sale of such items and related accessories is the primary business of the person, corporation, partnership, or association. 19. The purchase or sale of secondhand or used clothin� or fabric where the purchase and/or sale of such items and related MOBILE HOME exemption CLOTH[NG exemption Proposed Ordinance Secondhand Goods Dealers P•��c 4 accessories is the primary business of the person, corporation, partnership, or association. 20. The purchase or sale of secondhand or used home furnishin�s, furniture or a�pliances, but not to include secondhand or used radio, television, video or sound entertainment devices; where the purchase and/or sale of such items and related accessories is the primary business of the person, corporaYion, partnership, or association. 21. The purchase or sale of secondhand or used computer software or video ames, but not to include secondhand or used eomputer hardware or portable video game equipment; where the purchase and/or sale of such iten�s and related accessories is the primary business of the person, corporation, partnership, or association. FURNITURE & APPLIANCE exemption VIDEO GAMGS exemption 22. The purchase or sale of secondhand or used freestandin� ARCADE GAMES exemption arcade amusement devices, including pinball machines, video arcade machines, and slot n�achines, where the purchase and/or sale of such items and related accessories is the primary business of the person, corporation, partnership, or association. 23. The purchase or sale of stamps, coins, bullion, or ingots where the purchase and/or sale of such iteins and related accessories is the primary business of the person, corporation, partnership, or association. 24. The purchase or sale of animals ar pets where the purchase and/or sale of such items and related accessories is the primary business of the person, corporation, partnership, or association. 25. The purchase or sale of homemade craft items where the purchase and/or sale of such items and related accessories is the primary business of the person, corporation, partnership, or association. 26. The purchase or sale of arba e, refuse, scraps, waste, dirt, rock, sand, gravel, plants, vegetation, animals, offal, carcasses, biological tissue, grease, petroleum products, fluids, residue, lithographic and x-ray film, paper, cardboard, ash, slag, sweeps, scrap wood and metal, flakes, grindings, filings, or dust. ##.04 LICENSE REQUIRED. No person, corporation, partnership, or association shall exercise, carry on or be engaged in the trade or business of secondhand goods dealer without first obtaining a license from the City as provided in STAMP & COIN exemptio❑ PETS exemption CRAFTS exemption GARBAGE, ETC. exemption NO EXEMPTIONS FOR: • Generaf business that involves a varietv of the aforementio��ed exempted �oods • Bicycles Proposed Ordinance Secondhand Goods Dcalers p•i �� tI11S C1lapteT. • Camer-as & Video �quipinent ##.OS MULTIPLE DEALERS. l. Multiple sales locations. The owner of a business at which two or more secondhand goods dealers are engaged in business by maintaining separate sales space and identifying themselves to the public as iildividual dealers, may obtain a multiple secondhand goods dealer license for that location. A multiple license may not be issued unless the %llowing requirements are met: a. the business must have a single name and address; b. �he business must operate in a coinpact and contiguous space; c. the business must be under the unified control and supervision of the one person who holds the license; and d. sales must be consummated at a central point or register operated by the owner of the business, and the owner must maintain a comprehensive account of all sales. 2. Compliance. The holder of a secondhand goods dealer license under this sectioii far a business with more than one dealer at the same location inust comply with all of the requirements of this section, including the responsibility for police reporting and recard keeping in the same manner as any other dealer licensed under this section. A dealer licensed under this subsection is responsible to its customers for stolen or misrepresented goods sold at its place of business in the same manner as any other dealer licensed under this section. ##.06 INITIAL LICENSE APPLICATION. 1. General. Applications for secondhand goods dealers licenses to be issued under this Chapter shall contain infornlation as required on foiins prescribed by the City. 2. Nature of Application. The application shall state whether the applicant is a ilatural person, • Computer Equipment • Firearms • Jewelry • Outdoor Power Equipment • Sportin� Goods • Tools • I�V's, VCR's, & Stereo's Multiple Dealer section to cover businesses such as Antiques Minnesota or Blaine Flea Market Same as for PAWN SHOP licensin� Proposed Ordinance Secondhand Goods Dealers Pa�e 6 corporation, partnership or other form of organization. 3. Natural Person. If applicant is a natural person, the following information shall be furnished: A. True name, place and date of birth and street residence address, and length of time at that address, of applicant. B. Whether applicant has ever used or been known by a name other than his true name and, if so, what was such name or names, and information concerning dates and places where used. C. The name of the business if it is to be conducted under a designation, name or style other than the full individual name of the applicant. D. Kind, name and location of every business ar occupation applicant has been engaged in during the precediilg five (5) years. E. Names and addresses of applicant's employers and partners, if any, for the preceding five (5) years. F. Whether applicant has ever been convicted of a felony, gross misdemeanor ar inisdemeanor, excluding traffic violations, and if so, the date and place of conviction and the nature of the offense. G. If applicant has not resided in the City for three (3) years last preceding the date of application, at least fotu (4) character references from residents of the State of Minnesota. 4. Partnership. If applicant is a partnership, the names and addresses of all partners and all information concerning each partner as is required of a single applicant. A managing partner, or partners, shall be desigilated. The interest of each partner in the business shall be disclosed. 5. Corporation. If applicant is a corporation or other association, the following information shall be required. A. Name and, if incorporated, the state of incorporation. Proposed Ordinance Secondhand Goo�s Dealers P�i��e 7 B. A true copy of the certificate of incoiporation, articles of incorporation or association agreement and by-laws and, if a foreign corporation, a certificate of authority as described in Minnesota Statutes. C. The name of the operating officer or proprietor or other agent in charge of the premises to be licensed, giving all the information about said person as is required of a sinble applicant. As used in tlus Chapter, the term "operating officer" shall mean the person responsible for the day-to-day operating decisions of the licensed premises. D. A list of all persons who, singly or together with their spouse, or a parent, brother, sister or child or either of them, own or control an interest in said coiporation or association in excess of five percent (5%) or who are o�cers or directors of said corporation or association; together with tl�eir addresses and all infoi�nation as is required of a single applicant. 6. Description of premises. A. Legal Description. The exact legal description of the prenuses to be licensed, together with a plot plan of the area for which the license is sought showing dimensions, location of buildings, street access parking facilities. B. Street Address. The street address of the premises for which application is made. 7. Taxes. Whether or not a11 real estate taxes, assessments, or other tinancial claims of the City, State or Federal government for the business and premises to be licensed have been paid, and if not paid, the years for which delinquent. 8. Other Information Required. Such other information as the City Council shall require. ##.07 RENEWAL APPLICATIONS. Proposed Ordinance Secondhand Goods De�lers Pasc 8 1. License Period, Expiration. Each renewal license shall be issued for a maximum period of one year. ##.08 EXECUTION OF APPLICATION. If application is by a natural person, it shall be signed and sworn to by such person; if by a corporation, by an officer thereof; if by a partnership, by one of the general partners; if by an incorporated association, by the operating off'icer or managing officer thereof. If the applicant is a parinership, the applicatioi�, license a�7d bond shall be made and issued in the name of all partners. Any false statement in an application shall result in denial of the application. ##.09 GRANTING LICENSES. L At the tinle of making an initial or reilewal application, the applicant shall, in writing, authorize the Police Department to investigate all facts set out in the application and do a personal background and criminal record check on the applicant. The applicant shall further authorize the Police Department to release infonnation received from such investigation to the City Council. 2. Each license shall be issued to the applicant only and shall not be transferable. 3. Each license shall be issued only for the premises described in the application and shall not be transferable to a different location. 4. No change in ownership, control or location of a license shall be permitted except by amendment to the license which amendment must be approved by the City Council. ##.10 LICENSE ESTABLISHED. License Classes. CLASSIFICATIONS AND FEES Licenses renewed under provisions of this Chapter shall be classified according to the average number of initial transactions stlbmitted monthly by the licensee to the Publie Safety Director during the period the licensee was in business prior to renewal. For the purposes of this section "initial transaction" shall mean a single reportable transaction conducted by a secondhand goods dealer involving the initial receipt of properry from one person on one day Same as for PAWN SHOP licensing Proposed Ordinance Secondhand Goods Dealers Pa�e 9 at one time; not to include the sale of property already in the possession of the secondhand goods dealer. License classifications shall be: Class A Licensee's that subnut an average of seven hundred fifty (750) or inore initial transactions per month. Class B Licensee's that subinit an average of more than two hundred fifty (250) but less than seven hundred fifty (750) initial transactions per month. Class C Licensee's that submit an average of two hundred fifty (250) or less ini�ial transactions per month. All new licenses issued pursuant to this Chapter shall be deemed to be Class A licenses and subject to all applicable fees and regulations. 2. Annual Fees. The annual license fee for all licenses required by this Chapter shall be in the amounts as specified in Chapter 11, General Provisions and Fees, of the Fridley City Code. 3. Investigation Fees. At the time of each original application far a license, the applicant shall pay, in full, an investigation fee. The i�lvestigation fee shall be as specified in Chapter 11, General Provisions and Fees, of the Fridley City Code. ##.11 PAYMENT OF FEES. L Initial Fees. The annual license and investigation fees for a new license shall be paid in full before the application for the license is accepted. Upon rejection of any application for a license or upon withdrawal of an application before approval of the issuance by the Council, the license fee only sha11 be refunded to the applicant except where rejection is for a willful misstateinent in the license application. If any investigation outside the State of Minnesota is required, the applicant shall be charged the cost which shall be paid by the applicant, prior to issuance of a license, after deducting the initial investigation fee, whether or not the license is granted. Proposed Ordinance Secondhaud Goods Dealers P1oe I 0 2. Pro Rated Fee for New Licenses. If the application for a new license under this Chapter is made during a license year, a license may be issued for the remainder of the license year for a fee assessed proportionally by the number of months remaining in the license year. Any fraction of a month will be counted as a complete month. No refund, reduction, or adjustment of a license fee shall be made to any licensee that ceases operation during the term of the license. 3. Renewal Fees and Adjusnnents. Lieensee's delivering daily reports to police via the electronic reporting method as outlined in section ### shall be eligible for an electronic reporting adjustment of the asinual license fee at renewal, based on the number of months during the preceding license year that the licensee successfully delivered daily reports to police via ihe electronic reporting method. The electronic reporting adjustment shall be as specified in Chapter ll, General Provisions and Fees, of the Fridley City Code. Licensee's seeking renewal shall first obtain from the Public Safety Director a statement identifying the class of license to be renewed and the number of months eligible for the electronic reporting adjustment if any. The statement shall be filed with the renewal application. The annual license fee for renewal of a license, at the class identified by the Publie Safety Director, less the electronic reporting adjustment if applicable, shall be paid in full at the time the renewal application is filed with the City. ##.12 BOND REQUIRED. At the time of filing an application for a license, the applicant sha11 file a bond in the amount of Five Thousand Dollars ($5,000) with the City. The bond, with a duly licensed surety company as surety thereon, must be approved as to form by the City Attorney. Said bond must be conditioned that the licensee shall observe the ordinances of the City, in relation to the business of secondhand goods dealer, and that the licensee will account for and deliver to any person legally entitled thereto any articles which may have come into the possession of the licensee as secondhand goods dealer or in lieu thereof such licensee shall pay the person or persons the reasonable value thereof. ##.13 PERSONS AND PLACES INELIGIBLE FOR Same as 1'or Pawn Shops. Is the amount appropriate to the potential risk? Proposed Ordina��ce Secondhand Goods Dealers Pasc I I LICENSE. l. No license shall be granted to or held by any person who: A. Is a minor at the time the applicatiol� is filed. B. Has been convicted of any crime directly related to the occupation licensed, including theft, receiving stolen property, burglary, and robbery, as prescribed by Mirulesota Statutes, and has not shown competent evidence of sufficient rehabilitation and present fitness to perform the duties of a secondhand goods dealer. ##.14 CONDITIONS OF LICENSES. 1. Records. Every licensee, at the time of receipt of an article, shall immediately record, in English, on forms or in an electronic data storage and retrieval system approved by the Public Safety Director, the following information: A. A complete and accurate description of the article, including but not limited to, any manufacturer name, brand name, model number, serial number, identification number, or other identifying mark. B. The amount of money received by the person selling the article C. The date, time and place of receipt of the article. D. The full name, date of birth, current address of residence, current telephone number if possessed, and a reasonably accurate description of the person from whom the article was received including at a minimum sex, height, weight, and race. E. The ident�cation number and state of issue fioi�l a valid photo drivers license or photo identification card issued by the state of residency of the person from whom the article was received. F. The naine or unique identifier of the licensee oi° employee that conducted the transaction. 2. Disposition of Articles. Same as required of pa«�n shops. Estimate that perhaps 1/3 of pawn shop business is the outri�ht PURCHASE of secondhand or used goods fron� persons. Pawn shops are required to report the p�irchase in the same manner that they report PAWNS. Proposed Ordinance Secondhand Goods Dealers Pase 12 When an article of purchased or forfeited property is sold or disposed of by a licensee and the licensee receives one-htu�dred dollars ($100.00) or more in payment thereof, the records shall contain an account of such sale with the date, the amount for wliich the article was sold, and the full name, current address, and telephone number of the person to whom sold. 3. Inspection of Records. The records referred to in this section shall be open to the inspection of the Public Safety Director at all reasonable times and shall be retained by the licensee for at least four (4) years. 4. Receipt. Every licensee shall deliver to the person selling azly articles, a receipt numbered to correspond with tlle licensee's records. The receipt shall contain the substance of the transaction and the signature of the person from whom the item was received. 5. Daily Reports to Police. A. Mefhod. Each licensee shall prepare and deliver to the Public Safety Director, by twelve o'clock noon the first business day following the date of transaction, the information required to be collected in section ### asld ###, through one of the following methods: (1) Manual Reporting. Daily reports on foims approved by the Public Safety Director delivered in person by the licensee or employee. (2) Electronic Reporting. Daily reports maintained in an electronic data format meeting specifications established by �he Public Safety Director and delivered in person by the licensee or employee on electronic data storage media approved by the Public Safety Director or transferred from the licensee's computer via modem. B. Electronic Reporting Adjustment. Covers the SALE oY property by the licensee and when a report is required to be made to the City. Curreutly Pawn America is the only pa�vn shop �vhich delivers reports bv the Fiech�onic Reporting Metllod. Proposed Ordinance Sccondhand Goods Dealers P•i�c 13 A licensee delivering daily reports via the electronic reporting method may be eligible far an adjustment of their annual license fee at renewal, based on the nlimber of months during the preceding license year that the licensee successfully delivered daily reports to police via the electronic reporting method, except: (1) If a licensee who has consistently delivered daily reports via the electronic reporting method is unable to successfully deliver the required reports via the electronic reporting method, and the problem is determined to be in the licensee's system and is not corrected by �he close of the second business day following the failure, the licensee will be considered to have reported via the manual reporting method for the month in which the failure occurred and any subsequent months that such failure continues uncorrected. (2) If a licensee who has consistently delivered daily reports via the electronic reporting method is unable to successfully deliver the required reports via the electronic reporting t�lethod, and the problem is determined to be outside the licensee's systeni, the licensee will be considered to have reported via the electronic reporting method for the month in which the failure occurred. (3) Section ##.13.SB(1) notwithstanding, the Public Safety Director may, upon presentation of extenuating circumstances, extend the period that a qualifying licensee is considered to have reported via the electronic reporting method. 6. Exceptions to Reports. No licensee shall be required to furnish descriptions of airy property purchased from manufacturers and wholesale dealers having an established place of business or of any goods purchased at an open sale from any bankrupt stock. Any goods refei-red to in this sec�ion must be accompanied by a bill of sale ar other evidence of open or legitimate purchase and mlist be shown to the Public Safety Director on demand. 7. Holding Period. No article of properiy purchased by a licensee may be sold or otherwise disposed of for thirty (30) days from the date of the Exception �or repor[in� certain goods pucchased by a secondhand ��oods dealer. This is the current restriction imposed on pa��n sl�ops under Chapter 31. It is the result of Proposed Ordinance Sccoi�dhand Goods Dealers P•��e 14 transaction except that articles of property for which there exists a valid certificate of title issued by the State of Minnesota, showing ownership and registration by the person from whom the article was received, may be sold or otherwise disposed of ten (10) days from the date of transaction. 8. Police Restrictions on Sale or Redemption. A. Investigative Hold. Whenever a law enforcement official from any agency, acting in the course and scope of his or her duties, notifies a licensee not to sell an article of property in the liccnsee's possession, the article may not be sold or removed fi-om the premises by the licensee. The Investigative Hold shall be confirmed in writing by the originating agency within seventy-two ('72) hours and will remain in effect for fifteen (15) days from the date of notification, or until the hold is canceled, or until a Police Hold is issued pursuant to section ##.13.8.(B), or until the article is confiscated, whichever comes first. B. Police Hold. Whenever the Public Safety Director notifies a licensee not to sell an article of property in the licensee's possession, the article may not be sold ar removed from the premises by tlle licensee. The Police Hold shall be confiimed in writing within seventy-�wo (72) hours and will remain in effect for ninety (90) days from the date of notification Lulless the Public Safety Director determines the hold is still necessary and notifies the licensee in writing. When a Police Ho1d is no longer needed the Public Safety Director shall so notify the licensee. C. Confiscation Report. If an article of property in the licensee's possession is determined to be stolen, it may be confiscated and seized as evidence by any police officer. A request for restitution from any person charged in regards to the stolen property confiscated shall be made on behalf of the licensee. When an article of properiy is confiscated, the person doing so shall provide identification upon request of the licensee, and shall complete a confiscation report providing at a minimum the name and telephone number of the confiscating agency and investigator, and the case number of the police report related to the confiscation. The confiscation report shall be included negotiations bet�veen the PSD's desi�nate and the pawn shops. The old pa��n shop ordii�auce required pa��ned property to be ]leld 120 days and purchased property to be held 10 days. In excl�an�e for reducin� the pawned property hold to 90 days the pawn shops agreed to a 30 day hold on pw-chased propert�. Ho�v could this bc ii»posed on businesses that c�w-rently enjoy NO hold periods while being fair to the ��awn shops? Proposed Ordinance Secondhand Goods Dealers P�a�e I> with �he daily reports to police, subnutted by the licensee, for review by the Public Safety Director. 9. Payment by Check. Payment of more than five hundred dollars ($500.00) by any licensee for any article purchased shall be made only by a checl<, draft or other negotiable or nonnegotiable instrument or order of withdrawal which is drawn against funds held by a financial instihrtion. 10. Postiilg License. All licensees shall post their licenses, in a conspicuous place, in the licensed premises under the licensed activity. 11. Responsibility of Licensee. The conduct of agents or employees of a licensee, while engaged in performance of their duties for their principal or employer under such license, shall be deemed the conduct of the licensee. 12. Penalty for Property Owner. It is unlawful for any person who owns or controls any real property to knowingly permit it to be used for secondhand goods dealing without a license required by this Chapter. 13. Business at Oniy One Place. A license under this Chapter au�horizes the licensee to carry on its business only at the permanent place of business designated in the license. However, upon written request, the Public Safety Director may approve an off-site locked and secure storage facility. The licensee shall permit inspection of the facility in accordance with section ##. All provisions of this Chapter regarding record keeping and reporting apply to the facility and its contents. Articles of property shall be stared in compliance with all provisions of the city code. ##.15 RESTRICTED TRANSACTIONS. 1. No licensee nar any agent or employee of a licensee shall purchase, accept, or receive any article of property froin a11y person on any day of the week before 7:00 a.m. or after 10:00 p.m. 2. No licensee nor any agent or employee of a licensee sha11 purchase, accept, or receive any article of property from any person of unsound mind or frotn an intoxicated person. The check requirement, ��hich is the saine as that imposed on pa�vn shops, is us�ful in auditing the bool:s of the re��u(ated business Tl�e pawn shop ordinance also prohibits minors from transactions. Thinkin�� ot the youn� �erson exchangin�, skates or trading baseball cards that restriction was dropped. Proposed Ordinance Secondhand Goods Dealers N��e I fi 3. No licensee nor any agent or employee of a licensee shall purchase, accept, or receive any article of property which contains an altered or obliterated serial number or an article of property whose serial number has been removed. 4. No licensee nor any agent or employee of a licensee shall purchase, accept, or receive any article of property knowing, or having reason to know, that the article of property is encumbered by a security interest. For the purpose of this section "security interest" means an in�erest in property which secures paylnent or other performance of an obligation. 5. No licensee nor any agent or employee of a licensee shall purchase, accept, or receive any article of property, from any person, knowing, or having reason to lcnow, that said person is not the true and correct owner of the property. 6. No licensee nor any agent or employee of a licensee shall purchase, accept, or receive any article of property, from any person, without first having examined a valid photo driver's license or valid photo identification card issued by the state of residency of the person. ##.16 INSPECTION. 1. Premises. Any licensee sha11, at all times during the term of the license, allow the Public Safety Director to enter the premises, where the licensee is carrying on business, including all off-site storage facilities as authorized in section ###, during normal business hours, except in an emergency, for the purpose of iilspecting such premises and inspecting the articles and records therein to locate goods suspected or alleged to have been stolen and to verify compliance with this Chapter or other applicable laws. No licensee shall conceal any article in his possession from the Public Safety Director. 2. Inspection by Police or Claimed Owner. All articles of property coining into the possession of any licensee, under the terms hereof, shall be open to inspection and right of examination of any police officer or aily person claiming to have been the owner thereof or claiming to have had an interest therein when such person is accompanied by a police officer. ##.17 CONDUCT OF PERSONS ON LICENSED PREMIS�S. Is the constitutional right of liberty to contract subservient to tl�e public welfare in the case of secondhand �oods dealet•s? For example is there enough of a compelli�lg reason to prohibit tra��sactions �vith persons who do not possess valid photo drivers license or ID's? Can a licensee be required to "si�n away" their ri�hts a��ainst unwarranted search & seizure? Proposed Ordinance Secondhand Goods De�lers P1�e l7 1. No person may sell, leave, or deposit any article of property not their own; nor shall any person sell, leave, or deposit the property of another, whether with permission or without; nor shall any person sell, leave, or deposit any article of property in which another has a security interest; with any licensee. 2. No person may sell, leave, or deposit any article of property with any licensee without first having presented a valid photo driver's license or valid photo identification card issued by the state of residency of the person. 3. All licensee's shall by adequate signage and separate written notice inform persons seeking to sell, leave, or deposit articles of property with the licensee of the foregoing requirements. For the purpose of this section "adequate signage" shall be deeined to mean at least one sign, of not less than four (4) square feet in surface area, comprised of lettering of not less than three-quarters (3/4) of an inch in height, posted in a conspicuous place oil the licensed premises and stating substantially the following: TO SELL PROPERTY: YOU MUST BE THE TRUE OWNER OF THE PROPERTY. THE PROPERTY MUST BE FREE OF ALL CLAIMS AND LIENS. YOU MUST PRESENT VALID PHOTO IDENTIFICATION. VIOLATION OF ANY OF THESE REQUIREMENTS IS A CRIME. ALL TRANSACTIONS ARE REPORTED TO THE POLICE. For the purpose of this section "separate written notice" shall be deemed to mean either the receipt, as required in section 31.11.4, or a printed form, incorporating a statement to the effect that the person selling, leaving, or depositing the article is at least eighteen (18) years of age; is the true owner of the article; and that the article is free of all claims and liens; which is acknowledged by way of signature of the person selling, leaving, or depositing the article. 5. No person seeking to sell, leave, or deposit any article of property with any licensee shall give a false or fictitious name; nor give a false date of birth; nor give a false or out of date address of residence or telephone number; nor present a false driver's license or identification card; to any licensee. As in the pawn sl�op ordinance, this sectioi� would potentially allow police to circumvent tlle ofte�l difficult if not well nei�h iil�possible tasl< of provin� someone I<ne�v the item they �vei•e pawning for their �ood friend (gee, 1 can't recall his nai�ie or �vhere I�e lives) was stolen by char��in�� persons who sel] property that is not their own. This has yet to be tested in court. Proposed Ordinance Secondhand Goods Dealers P i<�e 18 ##.18 CORPORATIONS, PARTNERSHIPS OR ASSOCIATIONS. l. Licenses issued to corpara�ions shall be valid only as long as there is no change in the officers or ownership interest of the corporation unless such change is approved by the Council, in which event said license shall continue in force usltil the end of the then current license year. Failure to report any change in stockholders, officers, or managers shall be grounds far the revocation of all licenses held by the corporation. Every corporation licensed Lmder the provisions of this section shall adopt and maintain in its bylaws a provision that no transfer of stock is valid or effective u�lless approved by the City Council and shall require that all of its certificates of stock shall have printed on the face thereof: "The transfer of this stock certificate is invalid unless approved by the City Couneil of Fridley, Minnesota," and failure to comply with this provision shall be grounds for the revocation of all licenses held by the corporation. The provisions of this section shall not apply to the issuance of any license to a corporation whose stock is traded on a public stock exchange. 2. Licenses issued to associations or partnerships shall be valid only as long as there is no change in the partnership or association agreement or in the ownership of said partnei°ship or association unless such change is approved by the Council, in which event said license shall continue in force until the end of the then current license year. 3. Corporation, partnerslups or associations shall submit written notice to the City of any such changes described herein on or before thirty (30) days prior to the effective date of any such change. In case of a corporation, the licensee shall submit written notice to the City when a person not listed in the initial application will be acquiring an interest and shall give all information about said person as is required of a person pursLiant to the provisions of this Chapter. ##.19 REFUSAL, SUSPENSION OR REVOCATION. 1. It is unlawful for any applicant to make a false statement or omission upon any application form. Any false statement in such application, or any omission to state any infonnation called for on such applieation form, shall upon discoveiy of such falsehood, work an automatic refusal of license, or if already issued, shall render auy license issued pursuant thereto, void. Prior issuance is no effect to protect the applicant from prosecution for violation of this section or any part hereof. Lifted whole fi-om the pa�vn shop ordinance. Proposed Ordinance Secondhand Goods Dcalers P��e 19 2. The City Council may suspend or revoke a license issued under this Chapter for operation on any premises on whicli real estate taxes, assessments or other financial claims of the City or of the State are delinquent, or unpaid. 3. The City Council may suspend or revoke a license issued under this Chapter upon a finding of a violation of any of the provisions of this Chapter or a�zy State Statute regulating secondhand goods dealers. Any conviction by the secondhasld goods dealer for theft, receiving stolen property or any c�ther crime or violation involving stolen property shall result in fhe initnediate suspension pending a hearing on revocation of any license issued hereunder. 4. Except in the case of a suspension pending a hearing on revocation, a revocation or suspension of a license by the Cotulcil shall be preceded by a public hearing. The hearing notice shall be given at least ten (10) days prior to the hearing, include noiice of the time and place of the hearing, and shall state the nature of the charges against the licensee. ##.20 PENALTY Violation of any provision of this article shall be a misdemeanor. 11.10. FEES. CODE SUBJECT ## Secondhand Goods Dealers Electronic Reporting Adjustment FEE Class A � 15,000 Class B $12,500 Class C $10,000 $400 per month Investigation Fee $400 Tllese are the current fee's that the pawn shops pay. Can such fee's be justified? Perhaps by the amount of manpo�ver that would be spent on re�ulation and monitoring. Can we really expect businesses that have up to now enjoyed no license fees to pay such "exorbitant" a�nounts? And, if not, and if a lower fee structure were devised, would that be fair to the pawn shops? EYhibit 6 ANDOVER An ordinance regulating pawnbrokers, secondhand goods dealers and precious metals dealers within the City of Andover. Section 2. Definitions. Item containin� precious metal. An item made in whole or in part of inetal and containing more than one (1 %) percent by weiaht of silver. ��o1d or platinum. Pawnbroker. A paw-nbroker is and means a person who loans money on deposit of or pledge for personal property or other valuable thing, or who deals in the purchasing of personal property or other valuable things on the condition of selling same back aaain at a stipulated price, or who loans money secured by chattel mortgage on personal property, taking possession of the property or any part thereof so mortgaged. Precious metal dealer. Any person engaged in the business of buying second hand items containing precious metal, including but not limited to, jewelry, watches, eating utensils, candlesticks, and religious and decorative objects. Exemptions aze specified in Section 3. Receive. To purchase, accept for sale on consignment or take in pawn any secondhand good. Secondhand �oods dealer. Is and means a person whose regular business includes selling or receiving tangible personal property excluding motor vehicles, furniture, clothing and related accessories previously used, rented, owned or leased. Exemptions are specified in Section 3. Section 3. Exemptions. A. Pawnbrokers and secondhand goods dealers shall not apply to or include the following: 1. The sale of secondhand goods where all of the following are present: a. The sale is held on property occupied as a dwelling or owned, rented or leased by a charitable or political organization. b. That no sale exceeds a period of 72 consecutive hours. c. That no more than four (4) sales are held in any 12 month period. d. That none of the items offered for sale shall have been purchased for resale or received on consignment for the purpose of resale. 2. The sale of secondhand books or magazines, sport trading cards, sound or video recordings, ar films. 3. The sale of goods at an auction held by a licensed auctioneer. 4. The business of buying or selling only those secondhand goods taken as a part or full payment for new goods and where such business is incidental to and not the primary business of a person. 5. A bulk sale of property from a merchant, manufacturer or wholesaler having an established place of business or of goods sold at open sale from bankrupt stock. 6. Goods sold at public or farmer's market. 7. Goods sold at an exhibition, providing the exhibition does not last longer than ten (10) days in any twelve (12) month period. 8. Sales by a person licensed as a motor vehicle dealer. 9. The sale of furniture, clothing and related accessories. 10. Sales made by the sheriff or other public officials in the discharge of their official duties. 11. Sales made by assignees or receivers appointed in the state to make sales for the benefit of creditors. B. Precious metal dealers shall not apply to persons conducting the following transactions: 1. Transactions at occasional "garage" or "yard" sales, estate sales ar farm auctions held at the decedent's residence, except that precious metal dealers must comply with the requirements of Minnesota Statutes, Sections 325F.734 to 325F.742, for these transactions. 2. Transactions regulated by Minnesota Statutes, Section 80A. 3. Transactions regulated by the Federal Commodity Futures Commission Act. 4. Transactions involving the purchase of precious metal grindings, filings, slag, sweeps, scraps, or dust from an industrial manufacturer, dental lab, dentist, or agent thereof. 5. Transactions involving the purchase of photographic film, such as lithographic and x-ray film, silver residue or flake recovered in lithographic and x-ray film processing. 6. Transactions involving coins, bullion, or ingots. 7. Transactions in which the secondhand item containing precious metal is exchanged for a new item containing precious metal and the value of the new item exceeds the value of the secondhand item, except that a person who is a precious metal dealer by engaging in a transaction which is not exempted by this section must comply with the requirements of Minnesota Statutes, Sections 325F.734 to 325F.742. 8. Transactions between precious metal dealers if both dealers are licensed under Minnesota Statutes, Section 325F.733 or if the seller's business is located outside the state to a dealer licensed under Minnesota Statutes, Section 325F.733. 9. Transactions in which the buyer of the secondhand item containing precious metal is engaged primarily in the business of buying and selling antiques, and the items are resold in an unaltered condition except for repair, and the items are resold at retail, and the buyer paid less than $2,500 for secondhand items containing precious metals purchased within any period of twelve (12) consecutive months. Section 4. License required. No person sha11 exercise, carry-on, or be engaged in the business of pawnbroker, secondhand goods dealer, or precious metal dealer within the City unless such person is currently licensed under this Ordinance. A license under this Ordinance shall authorize the licensee to carry on business only at the permanent place of business designated in the license. No license may be transferred to a different location or different licensee. No more than three (3) licenses shall be issued by the City of Andover at any time and priority shall be given to qualified applicants for renewal of existing licenses. A separate license will be required for each business listed above. For instance, a pawnbroker may not conduct, operate or engage in the business of secondhand goods dealer without having obtained a secondhand goods dealer license in addition to a pawnbroker license. Exhibit 7 ROBBINSDALE Section 1135 Pawnbrokers, Secondhand Goods Dealers, Consignment Dealers, Auction House Dealers, and Traders. 113�.1. Definitions. Subd. 1. For the purposes of this section the terms defined in this subsection have the meanings given them. Subd. 2. "Pawnbroker" means a person who loans money on deposit or pledge of personal property, or other valuable thing, or who deals in the purchasing of personal property or other valuable thing on the condition of selling the same back again at a stipulated price, or who loans money secured by chattel mort�age on personal property, taking possession of the property or any part thereof so mortgaged. Subd. 3. ``Secondhand goods dealer' means a person whose regular business includes selling tangible personal property (excluding motor vehicles) previously used, rented, owned or leased. Subd.4. "Consignment house dealer" means a person whose regular business includes receiving, but not purchasing, tangible property with the intention to sell the property and divide the proceeds with the owner. Subd. 5. "Auction house dealer" means a person whose regular business includes auctioning used goods. The auction house dealer may receive used goods to auction, but may not purchase said items for auction. Subd. 6. "Traders" means a person(s) whose regular business primarily consists of receiving tangible property in trade for tangible property in stock. Subd. '7. "Minor dealer" means a consignment house deater or trader whose business occupies no greater than 1,500 square feet or less of gross floor azea. 1135.03. Exemptions. This section does not apply to or include the following: (a) The sale of secondhand goods where all of the following are present: (1) the sale is held on property principally occupied as a dwelling by the seller, or owned, rented or leased by a charitable or political organization; (2) the items offered for sale aze owned by the occupant; (3) the sale does not exceed a period of 72 consecutive hours; (4) not more than two sales are held either by the same person or on the same property in any 12 month period; and (5) none of the items offered for sale have been purchased for resale or received on consignment for purpose of resale. (b) sales by a person lieensed under section 1130 as a motor vehicle dealer; (c.) the sale of secondhand books or magazines, or films, or bona fide antiques or collectibles; (d) the sale of goods at an auction held by a licensed auctioneer if occurring not more than twice in a 12 month period; (e) the business of buying or selling secondhand goods where such business is incidental to and not the primary business of a person; (� a bulk sale of property from a merchant, manufacturer or wholesaler having an established place of business or of goods sold at open sale from bankrupt stock; (g) firearms, including antique firearms, sold by firearms dealers holding currently valid federal firearms dealer licenses permitting them to deal in such sales; (h) sales of precious metals made by precious metal dealers holding currently valid county licenses pursuant to Minnesota Statutes, section 325.F.733 permitting them to engage in such sales; (i) sales made by the sheriff or other public officials in the discharge of their official duties; or (j) sales made by assignees or receivers appointed in the state to make sales far the benefit of creditors. 1134.05. License required. Subd.l. Pawnbroker. No person may engage in the business of a pawnbroker without first obtaining a pawnbroker license. Subd. 2. Secondhand goods dealer. No person may conduct, operate or engage in the business of a secondhand goods dealer without having first obtained a secondhand goods dealer license. Subd. 3. Consignment house dealer. No person may conduct, operate or engage in the business of a consignment house dealer without first obtaining a consignment house license. Subd. 4. Auction house dealer. No person may conduct, operate or engage in the business of an auction house dealer without first obtaining an auction house license. Subd. 5. Traders license. No person may conduct, operate or engage in the business of a trading without first obtaining a traders license. 1135.7. Multiple Dealers. Subd. 1. Multiple sales locations. The owner of a business at which two or more secondhand goods dealers are engaged in business by maintaining separate sales space and identifying themselves to the public as individual dealers, may obtain a multiple secondhand goods dealer license for that location. A multiple license may not be issued unless the following requirements are met: (a) the business must have a single name and address; (b) the business must operate in a compact and contiguous space; (c.) the business must be under the unified control and supervision of the one person who holds the license; and (d) sales must be consummated at a central point or register operated by the owner of the business, and the owner must maintain a comprehensive account of all sales. Subd. 2. Compliance. The holder of a secondhand goods dealer license under this section for a business with more than one dealer at the same location must comply with all of the requirements of this section, including the responsibility for police reporting and record keeping in the same manner as any other dealer licensed under this section. A dealer licensed under this subsection is responsible to its customers for stolen or misrepresented goods sold at its place of business in the same manner as any other dealer licensed under this section. Exhibit 8 BLAINE Article V. Pawnbrokers. Section 15-110. Defined. Pawnbroker means a person who loans money on deposit or pledge for personal property or other valuable things, or who deals in the purchasing of persona( property or other valuable thin�s on the condition of sellinQ the same back again at a stipulated price, or who loans monevysecured by chatte( mortgaye on personal property, taking possession of the property or any part thereof so mortaaged. Secondhand goods dealer means a person whose regular business includes selling or receiving tangible personal property eYCluding motor vehicles, furniture, c(othing and related accessories; previously used, rented, owned or leased. Section 15-1 1. License required. (a) No person, partnership, or corporation shall engaged in or carry on the business of pawnbroker/secondhand goods dealer, without a license issued by the City for each and every separate office or place of business operated by such licensee in the City of Blaine. (d) A license under this section shall authorize the licensee to carry on its business only at the permanent place of business designated in the license. No license may be transferred to a different location or to a different licensee. Any and all property or buildings used for storage of items related to the pawn shop or secondhand goods dealership must be identified in the application for either license. (e) A pawnbroker may not operate or engage in the business of secondhand goods dealer without having obtained a secondhand goods dealer license in addition to a pawnbroker's license. A secondhand goods dealer rnay not conduct, operate or engage in the business of a pawnbroker without having first obtained a pawnbroker's license in addition to a secondhand goods dealer license. ( fl The aforementioned license requirements do not apply to or include the following: (1) The sale of secondhand goods where all of the following are present: a. The sale is held on property occupied as a dwelling by the seller or owned, rented or leased by a charitable or political organization; b. The items offered for sale are owned by the occupant; c. T'he sale does not exceed a period of seventy-two (72) consecutive hours; d. No more than two (2) sales are held either by the same person or on the same property in any twelve month period; and e. None of the items offered for sale shall have been purchased for resale or received on consignment for the purpose of resale. (2) Sales by a person licensed as a motor vehicle dealer. (3) The sale of secondhand books or magazines, sport trading cards, sound or video recordings, or films. (4) The sale of goods at an auction held by a licensed auctioneer. (5) The business of buying or selling only those secondhand goods taken as a part or full payment for new goods, and where such business is incidental to and not the primary business of a person. (6) A bulk sale of property from a merchant, manufacturer or wholesaler having an established place of business or of goods sold at open sale from bankrupt stock. (7) Goods sold at a public market. (8) Goods sold at an exhibition (9) The sale of furniture, clothing and related accessories. (g) The owner of a business at which two (2) or more secondhand goods dealers are engaged in business by maintaining separate sales space and identifying themselves to the public as individual dealers may obtain a multiple secondhand goods dealer license for that location. A multiple license may not be issued unless the following requirements are met: (1) The business must have a single name and address. (2) The business must operate in a compact and contiguous space. (3) The business must be under the unified control and supervision of the one person who holds the license. (4) Sales must be consummated at a central point or register operated by the owner of the business, and the owner must maintain a comprehensive account of a11 sales. (h) The holder of a secondhand goods dealer license under this section for a business with more than one (1) dealer at the same location must comply with all of the requirements of this section, including the responsibility for police reporting and record keeping in the same manner as any other dealer licensed under this section. A dealer licensed under this subsection is responsible to its customers for stolen or misrepresented goods sold at its place of business in the same manner as any other dealer licensed under this section. MEMORANDUM DEVELUPMENT DIRECTOR DATE: January 10, 1997 TO: William W. Bums, City Manager�ll �� trP FROM: Barbara Dacy, Community Development Director SUBJECT: Schrader Land Use Requests PURPOSE OF COUNCIL EVALUATION These items have been scheduled for review by the Council prior to the Planning Commission and City Council public hearings because the City's decisions will have significant long term impacts on the properties in this part of the City. It seemed prudent to spend additional time "up fronY' prior to the hearings to fully explore the consequences and to provide the Council with the opportunity to request more information if needed. It has been several months since the Council has evaluated requests in this part of the City, and a broader perspective should be taken. The petitioner has agreed to a 60 day e�ension in writing. LONG TERM IMPACTS The request to develop this site will eliminate the possibility of two projects which have been discussed in the past. It should not be interpreted that this is a negative consequence, it merely is an attempt to remind the Council of previous efforts. In 1989, staff completed an informal land use analysis of the Central Avenue/Highway 65 corridor. One of the ideas discussed was ta relocate Tam's Restaurant to the Schrader site and redevelop the Tam's site for a residential use. Over the last few years, staff has discussed this with Oliver Tam and he did not want to pursue the project. In 1994, the City evaluated redevelopment of the Bacon Electric/Gary's Automotive site. The Schrader site was one of the relocation options for Gary's Automotive. The request to vacate the road easement is significant because it forces the City to determine whether the frontage road should be connected to Fireside Drive. It is anticipated that public comment during the hearing will be supportive of the vacation, while the staff recommendation will be to retain the easement for traffic flow and access reasons. Schrader Land Use Requests January 10, 1997 Page 2 CHANGES AROUND THE SITE Since the site was approved for an auto mall in 1990, there have been a variety of changes around the site: 1. Construction of Scott Lund office/warehouse building. 2. Expansion of Filter Plant #3. 3. MnDOT continues its program of closing median openings (63rd and 73 1/2 Avenues), and still wants to close the Fireside Drive opening. 4. Market for commercial multi-tenant buildings is poor. 5. Salvage yards identified as potential redevelopment site for industrial development. 6. Site is located in T!F #9 (although the district is not generating increment at this time). 7. Friendly Chevrolet completed its remodeling and expansion. ISSUES FOR COUNCIL CONSIDERATION Staff s preliminary analysis (see attached) will show that rezoning the site to industrial may be the best option and that retaining the road easement preserves the City's options. However, this assumes that the previous redevelopment objectives are no longer an issue and that the desire for a commercial development at the subject location is no longer desired (a comprehensive plan change will be required if rezoned). Further, it assumes that retaining the road easement may mean connecting the frontage road to the north in the future. If these issues are still of Council concern, it is best to identify the concerns at this point in time in hopes of working with the petitioner toward a proactive solution. It is not staff's intent to advocate a position to the Council at this point in time, but to identify the options and to identify potential outcomes for Council discussion. BD/ M-97-24 DATE: TO January 10, 1997 i' � i PLAr�TING DIVISION William Burns, City Manager FROM: Barbara Dacy, Community Development Director Scott Hickok, Planning Coordinator Michele McPherson, Planning Assistant SUBJECT: Development Alternatives for 73'/2 Avenue and Highway 65 BACKGROUND Michael Schrader, representing A.L.S. Properties, has submitted three land use requests: 1. A vacation to vacate a portion of a service road which was dedicated in 1971. 2. A rezoning from C-3, General Shopping Center to M-1, Light Industrial 3. A variance to reduce the front yard setback from 35 feet to 30 feet and to reduce the hardsurface setback from 20 feet to 7.21 feet. A 30,000 square foot self-storage facility is proposed by the petitioner. The subject property is located at the intersection of 73'/ Avenue and Highway 65. Located north of the subject property is a mobile home park, to the east is a multi-tenant industrial building, and to the west is the expanded Filter Plant Three for Well Number Twelve. The purpose of this memo is to review the possible development options for the site. These options are: 1. Retain the service road, 2. Retain the service road, 3. Retain the service road, 4. Vacate the service road, 5. Vacate the service road, 6. Vacate the service road, retain present C-3, General Shopping zoning. �ezone to C-2, General Business. rezone to M-1, Light Industrial. retain present C-3, General Shopping zoning. rezone to C-2, General Business. rezone to M-1, Light Industrial. Schrader Proposal Analysis January 10, 1997 Page 2 Previous Development Historv in 1990, the Schraders proposed construction of an automall. This would have been a multi-tenant building containing a variety of automotive uses. At that time, the development parcel was 169,000 square feet in area. In 1994, the easterly 180 feet of the parcel was sold to Scott Lund for the construction of a multi-tenant industrial building. This reduced the area of the parcel to 79,991 square feet. In 1994, the HRA and City Council briefly discussed a redevelopment project at the Bcon ElectriclGary's Automotive site. Gary's automotive would have been relocated to the southern part of the Schrader site and coupled with the 18,000 square feet of the City's property (the lot on the east side of the old frontage road). The project was not pursued, and the City did not pursue the sale to the Schraders. In 1996, Filter Plant Three was constructed, and the lot which was once identified for sale to the Schraders was used for the expansion to the filter plant. The shape and size of the subject parcel has changed significantly in the last 6 years. VACATtON OF ROAD A 41 foot wide road easement was dedicated in 1971 immediately abutting the subject property. The petitioner wants to vacate it to add area for construction of a self storage facility. In the past, the City Council has stated that they would not extend this frontage road since it meant acquisition of mobile homes. The service road extends from Fireside Drive north to Osborne Road. The vacation request has a significant impact on the subject property because it affects the setbacks, lot area, and more importantly, the amount of vehicular access to the site. The vacation request is also important to the City because vacating it would eliminate any possibility of the frontage road connection. What happens if the road is NOT vacated� The City has developed a secondary system of roads (service roads) paralleling the primary transportation routes of East River Road, University Avenue, and Highway 65. The number of service drives in the City are as follows: East River Road: One, located in the Great Northern Industrial Center, from 51 S` Way to Highway 694. Universitv Avenue: Seventeen; thirteen located along the west side of the road. Eight could be considered residential in nature, with the remaining in commercial or industrial areas. One, located north of 53�d on the east side of the road, dead-ends. There is no service road on the east side of the road north of Mississippi Street. Schrader Proposal Analysis January 10, 1997 Page 3 Hiqhwav 65: Eight, with two being half commercial and half residential in nature. One, located along the west side north of Mississippi Street is residential. There a�e no service roads located between Highway 65 and the mobile home parks. Maintaining the service road easement is consistent with an established pat#ern of service roads, and therefore preserves the City's options to connect 73'/ Avenue to Fireside Drive at a time the City deems appropriate. The Minnesota Department of Transportation has, in the past indicated that they would prefer to have the median opening in Highway 65 at Fireside Drive ciosed (see attached map). It has been the City's position that this opening may be closed only if an alternate means of travel was provided, i.e. the connection of the senrice road (see 1987 correspondence). MNDoT has closed the medians at 63`d and 73'/2 Avenues within the last 5 years. Four mobile homes would need to be relocated to accommodate the necessary right of way. Constructing the service road also provides access to the site in two locations and from two directions, north and south. Vacating the service road limits access to the site to 73 '/2 Avenue. The developable parcel decreases by 5,740 square feet with the existence of the service road. The distance of a building from Highway 65 also increases if the right of way is not vacated. What happens if the road is vacated� If the service road easement is vacated, the developable parcel increases by 5,740 square feet, and permits the owner to build a larger building, closer to the Highway 65 right of way. The City would not be able to extend the road without acquisition of the self storage buildings. SITE ANALYSIS The development site is 79,991 square feet in area and is boot-shaped (see attachment A). Regardless of the zoning designation, the property is difficult to develop because of its "boot" shape. ln addition, a 50 foot setback is required from the R-4, Mobile Home Park zoning to the north. Expansion of the filter plant and the adjacent development to the east has surrounded the site with industrial development. ZONING OPTIONS C-3, General Shoppinq Center This is the current zoning designation. The zoning is no longer suitable for this site since the district requires large setbacks {80 foot front setback), and the purpose of the C-3 zoning is to encourage large, multi-tenant commercial developments. The size of the property has been reduced, and it is unlikely that a strip mall would be developed in a location which is isolated from other retail shopping. Schrader Proposal Analysis January 10, 1997 Page 4 C-2, General Business Under this designation, it is likely that the parcel would develop as some type of automotive use not dependent upon high visibility. Another possible use would be the relocation of Tam's Rice Bowl Restaurant onto the subject parcel with the expansion of the mobile home park onto Tam's site. Staff spoke to Tam's about this option several months ago and he was not interested in relocating. The C-2 zoning district requires a high parking ratio. Although 40,000 square feet of buildable area is available, a 10,000-20,000 square foot building is possible, but most of the land would be dedicated to parking area. M-1. Liqht Industrial Given the adjacent land uses, the changes in the site's shape and size, and the site's slim chance of significant retaiUcommercial services, the M-1 zoning appears to be the best option. A manufacturing use or an office/warehouse use similar to the Scott Lund development may create more taxes and jobs. The self-storage proposal, however, is a "low impact" use to the mobile home park to the north, and is adaptable to the site's unusual shape. It is unlikely that the petitioner will seek another user other than the self-storage use, since the owner has built similar facilities elsewhere. However, if the Council agrees, staff could work with the petitioner to identify another industrial use. Nonetheless, from a zoning viewpoint, rezoning the site to industrial will be compatible with adjacent uses and will promote the most efficient use of the property. TAX I M PACT The City Assessor compared the possible taxes generated by the proposed self- storage and a typical office/warehouse of similar size. Valued at an estimated $819,500, the taxes generated by the self-storage would be $48,600. A similar sized office/warehouse project would be valued slightly higher at $990,200, and would generate $58,700 in taxes. MM/ M-97-23 Schrader Analysis.doc I � 1 Z O Z O KC V ' - " � � O O _ - -' ' _ _ - Z � Y Z = N Z x .. ' . �� .c�r � .. Z ��.. � � m N c0 : p' �r U �i � �N�' O' N V i II 0 ': � i � �f-i 'Oi Q ! 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'_.____....._ _____�___ � � � -� YP3 I c�- � �- , e / :` � `- ��' ' � — � _} - � � 1 �V 1 L� -� {��-�q 1� '_�"' __ ""'.____ ____'_" 1 R � — . . .- I a , � _ �• �� ` ' ' :g: _ � � - � �t��.- ---------- - � . �� ------ , . = .-- �C�_ f i . . - _ , — a- _ < •�� _ � '' ,, .._. ...._ ___.. ._.. �'\..__. ___. .J � �- - � "� � �� , .,: ` r.r . � . a . ._ ,. - _ _;� . „ _ I G - - � � � - �� : ,� _ _=: . -- --- �---� ' �' � , � ` ? < . , ; i i �II,; : � � ` ��'i , , � � ; � .� �- : , � _ _ -- ------ �- ____ . _ _ — � I � �,� �� ' .. � � ,�� — :+ � �— l _.; i . - I i 4 f-7r= �- � N I " � � i I 1 _J Lii �, �� T S�/�ti,�..:J f v/' '.31 M�..� _ ': Engineer+ng` y'' Sewer - ;'�,Y : Water' . .:aQ� � O . Parks p 3: Streets ; ,:u V ,• Mainte�anee v.:w -�; ,,¢m:. o� a � MEMORANDUM TO: Nasim M. Qureshi, City Manager PW87-314 FROM: John G. Fl.ora, Public Works Director DATE: Sept�r 18, 1987 S U BJ ECT: Viron Raad �tension Based on the Council's directi� at their September 14 meeting, I contactecl one of the three oFmers of tY� Estates Mobile Trailer Court property on Tuesday, Sept�s 15, 1987 about the Viron Rflad extension. The property awner rejected the idea af providing 15 feet or any amount of street right-of-way or easement for tYie ext�ensian of Viron Road for any price at this tirr�. Their primary coricerns deal with the safety and security of the residents within the trailer court plus the proxisnity of Viron Road to the existing trailers and the volture of traffic expected in this area. Currently, tY�ere are no vacancies within the trailer cour-c and they are main- taining a waiti�ig List. The awner indicated if the current residents along the �stern border of the trailer park would leave, they w�uld consider the Vircez Road extension at that tiut�, but not before. For the gast three years, representatives of the Muu�sota Depart�nt of Transportation and I have att�mpted to work with the c�mer to obtain scxne sort of agreemeazt for the extension of Viron Rc�ad and the closlire of the Highway 65 �dian. The position has been made that the median at Fireside Drive could not be closed until such time as Viron Road is extended. As a result, the Minnesota DepartmP�lt of Transportation has pr�posed a plan to �dify the median to allow for only northbound left turn mpve.m�nts, but their ultimats desire is to cca�letely close that median. In our discussi�s last year, the Transportation Departirent indicated they �uld agree to a 15 foot encroachm�nt on their right-of-way for the service drive, but would not support the place�nent of the entire road within the higi7way right-of-�,,ray, Unless scxre private garties can negotiate a purchase for the sliver of land or the City decides to candermi the access strip from the trailer cour�, a tiit�ly solution does not seem possible as we will not bz able to obtain the property owners s�pport in the i��diate future . % JC�': ch � C1TY Of Ff21DLEY � Engineenng y:. SBwer :' ; .w Y _ Wales �; -.Q �� .Q' Parks : - _ �`0�3', Streets-. "��- �*v V'" Maintenanee ,�� .O� ,.. d � MEMORANDUM TO: Jim Robinson, Planning Coordinator FROM: Jd�n G. �lora, �Public Works Director DATE: July 29, 1987 SUBJECT: �ctension of Viron Road R�'EP,ENCE: Meqno M87-160, I�ted July 24, �bject as Above a FW87-254 �e Ciiy and representatives frcm I�DOT District 5 have met with the owners and operators of the trailer courts on either side of Highway 65 in the vicinity of 73 L2 Ave, a n�nber of times last y�r regarding the closure or modification of the median on Highway 65. ZY�e Gity's position h�s been that the median a�uld be closed if an alternate entrance and exit is provided to the westerly trailer oourt off of 73rd Ave. and that Viron Rc�d was extended through the easterly trailer o�urt. Upon axnpletion of these actions, the median at Fireside Drive oould be closed. It has been sugqested that the Highway 65 meclian be revised to pravide for a northbotmd left turn mav�nent only until such ti.me as Viron Road is extended. rhiDC�r again addressed this intersection this y�r but no specific plan or timetahle has been submitted to the City. Zt is uzderstood b� both the City and MnDOT that the 73 L2 Ave. median oould be closed at ariy time and probably should be closed now due to the close proximity to 73rd Ave. The City has been interested for a period of time to complete the construction of Viron Road between 73rd and Osborne. Last year, the loop back around the Q�iropractic Clinic was oompleted and the only remaining work to be done is the extension of Viron Road along the front of the easterly trailer court. An attempt was made in the last two years to obtain an ea9ement or right-of-way but the awners of the trailer �urt refused to enter into ariy su� agreanent. It is tnderstood that if the s�utherly most trailer adjacent to Hic�way 65 is ever rgnwed, the aaners would consider an easement for the Viron Road extension. Again, no timetable or costs for this have been establ ished. Viron Road has been established at 30 feet and the City could widen that portion between 73rd Ave. and 73 L2 Ave. to 30 feet with concrete curb and gutter for approximately 510,000. .� s _, Fac� Ztao — R�787-254 Zhe closure of the med.ian.on Hiqhway 65 at 73 L2 Ave. with the widening of Viron Road at that location should not affect the area traffic as adequate access would be made to 73rd Ave., Highway 65 and Old Central for x�avanent in any direction. It is recommended that if the vacation of 73 L2 Ave. at the proposed devel.opment site is cnnsidered, Viron Road should be first widened between 73 L2 Ave. and 73rd Ave. and then the Highway 65 median closed to support the proposed develognent of this �operty. This property would be adequately serviced with road and utilities regardless of the completion of the Viron Ra�d extension. JGF/ts �=� ��i � w�'' �� . �C� �wS>"�� 4 MOBILE HOME COMMUNITIES CENTENNIAL SQUARE BLAINE, MN STONEYBROOK SOUTH BRAINERD, MN WINDSOR COURT KASSON, MN ST. JAMES PLACE ST. JAMES, MN OAKRIDGE VILLAGE EAU CLAIRE, WI SILVER GLEN SIOUX FALLS, SD WOODHAVEN ST. FRANCIS, MN LAKEVIEW ESTATES FERGUS FALLS, MN MOBILE & MODULAR HOME SALES HART CUSTOM HOMES INC. BLAINE, MN CAYSTAL, MN BRAINERD, MN ST. JAMES, MN KASSON, MN ST. FRANCIS, MN REAL ESTATE DIVISION MEMBER ML CRYSTAL, MN BLAINE, MN $ELF-STORAGE CAREFREE SELF-STORAGE BLAINE, MN MID-AMERICA SKIRTING & SUPPLY BLAINE, MN THE SCHRADER BUILDING CRYSTAL, MN TRAPP ROAD BUILDING EAGAN, MN �RADER FARMS NORTHFIELD, MN HRADER VENT RE QRP. PLYMOUTH, MN � o � Real Estate And Investments 5501 Lakeland Avenue North, Crystal, MN 55429 (612)535-2840 Fax (612) 535-2842 Alvan L. Schrader, Owner 1 /7I97 City of Fridley 6431 University Ave. N.E. Fridley, MN 55432 RE: City Council Workshop Fridley City Council: Attached please find a Position Statement and information relating to our proposed development and the Service Drive issue. I hope that this information is helpful in your discussions. The bottom line with me is that the subject property is currently a junk yard and we would like to get a development underway as soon as possible. If you have questions or comments, please do not hesitate to contact me or my son Mike. Sincerely, Alvan L. Schrader Principal cc: Schrader Venture Corp. Mike Schrader POSITION STATEMENT AL SCHRADER dba A.L.S. PROPERTIES To: City of Fridley, City Council From: A1 Schrader Date: 1/7/97 RE: 73 1/2 Hwy 65 NE For Your consideration, Council Workshop, January 13, 1997: ISSUE I Zoning change from C-3 Shopping Center to M-1 Industrial. I would like to rezone my property from C-3 to M-1 to allow for the construction of a self storage facility. 1) The construction and operation of the facility will be done by A.L.S. Properties and Schrader Venture Corporation. I will commit my personal funds to the project development and the project does not rely on any third party tenants or investors. We will own it and operate it. The project would be the similar in design and operation to the Carefree Self Storage facility that we developed and operate on 35W in Blaine, MN, but smaller in size. The Blaine Carefree Self Storage facility is 60,000 square feet and is 100% occupied. 2) The development of the Wellhouse Addition has significantly changed my ability to build a viable C-3 retail site. Without the combination of the City land as previously proposed, my parcel has only 140' of frontage on Hwy 65. It no longer has a service drive access and much of the site lines to Hwy 65 have been blocked. Without the requisite aggregate size, access and exposure the parcel is not a good retail site. The subject parcel is surrounded all down the block by M-1 users. Prior to our rezoning the property in `91 most of the property was zoned M-1. The parcel was rezoned to accommodate a project we proposed, but failed to complete. I am aware that the subject property was ideally planned to be part of a long term improvement corridor for retail, but my inability to find suitable tenants, the parceling off of part of the land to RYLjJND and the expansion of the Wellhouse on the frontage have significantly changed the character of the land. 0 ISSUE II The Service Drive: To vacate or not to vacate? There has been a history of frustration in dealing with the Service Drive and the development of the subject site. The City was helpful in getting the zoning changed in `91, but due to a difficult market and the loss of our lead tenants, we could not perform and have been unable to do anything with the parcel since. The development of the City Wellhouse, road removal and paying $6,500 year taxes on vacant land has made the development of this site a priority for me this year. My son Mike relayed my commitment to you to have a proposal to you by year end. Mike sat down with two City Planners and discussed what we would like to do with the property and how to go about doing it. We did the engineering and made the submission, but have been frustrated by what we consider mixed signals regarding the Service Drive. Once submitted, we found out that the stafi was planning to oppose our plan due to the roadway issue. We have continued our application and have put the question to you in this workshop setting for open discussion uninhibited by me or my son. As you will recall, the Service Drive was removed to create a suitable development site for the Wellhouse facility. Unfortunately, removal of the service drive left 140' of bituminous frontage to our property without access. It is questionable whether the City had the right to remove a dedicated roadway in the fashion it did. Be that as it may, the City assured us that they would replace the roadway. We approached the Council this past fall and expressed our concern that the roadway would not be completed. After studying the matter with our engineers and architects, we felt that the configuration of the replacement Service drive would not be the best access for our proposed facilty. The proposed replacement road contains a tight radius turn and requires all of our traffic to be routed near the Wellhouse. As a result we reconfigured our design vacating the Service Drive with the primary access to the facility on 73 1/2. We like the idea of the road vacation because it helps with the aggregate size of the site and improved ingress and egress. At that point the idea seemed to be palatable to Staff so we went ahead with our engineers and at the expense of $7,500 created the required plans and submitted our application. At the time of application, a11 indications were that Staff did not have a problem with our concept. However, the day prior to our appearance at the Appeals Commission, Staff revealed that they had an interdepartmental discussion and decided to oppose the vacation concept because of the fact that MinDOT has indicated that additional frontage roads should be considered due to some potential long term changes to Highway 65. We are somewhat confused. I think that both parties have been going back and forth on the roadway issue. It needs to be resolved. Back in `91 when we proposed continuing the Service drive, the idea was not supported by the Council or neighboring property owners because it would involve the condemnation of some of the manufactured homes to create the roadway. At that time the council made it very clear to my son that they did not intend to consider the Service drive extension and again reiterated their intention not to have the Service Drive this Fall. So based on all of the foregoing reasons, we thought that the vacation met with everyone's needs. But now we receive mixed signals, Staff won't support the vacation. Staff says that they are concerned about leaving the Service Drive available and yet they tore it out for the City well house development. The Council has made it very clear to us in `91 and the fall of `96 that they had no intention of advocating the roadway? Which is it going to be? We would like some guidance so that we can present a buildable plan one way or the other. ISSUE III If it is decided that the road is not to be vacated, when will the replacement road be rebuilt? If you decide that for whatever reason that the Service Drive should be kept. It is important for me to know when and under what specifications it will be rebuilt. We would need to redesign the Self Storage facility to accommodate for the entrance to be placed at the Service Drive. It is our position that if you decide to keep the Service Drive, the replacement should be built immediately. The Service Drive was part of a dedicated road improvement project. The City took title to their parcel of land subject to a permanent easement for road improvements and utilities. It should not have been removed without the benefited property owners being notified or included in the discussion and to our knowledge the right of way and road easements have not been formally vacated. CONCLUSION If the City wants the road then they should build it to the same specifications as to the one that was demolished immediately in the Spring of `97. If the City does not want the Service Drive, then the abandoned section should be vacated back to allow for development with setbacks matching those given the City. We will respond accordingly to your wishes. Our current plan calls for the road vacation and a variance to allow for a development set back equal to that granted the City. A decision on the roadway needs to occur so that we can submit a proposal which has a chance for approval. I will await your decision. Respectfully submitted, Alvan L. Schrader � CHRONOLOGY 1969 Street improvements requested by city and assessed to property owners for east frontage road 73 1/2. Permanent easements granted for roads and utility construction. Thereafter the East Service road was constructed from 73 1/2 to the north, intended to connect to Service Road to the north. 1976 A1 Schrader purchases subject parcel (Lot 3, Block 1, Central View Manor 2d. Addtn.) by purchasing vendees interest in a CD in favor of Sheldon Mortenson. Zoned C-3 General Shopping Center. Special use permit obtained and land operated as a manufactured housing sales center until 1987. 1982 City takes title to t� forfeited land (Lots 1,2,3, Block l, Central view Manor) subject to the permanent easements for the road improvements. 1990 A1 Schrader proposes auto mall. City agrees to sell a portion of their land to developer. Market difficulties force developer to withdraw proposal. The Zoning is changed from M-1 Light Industrial to C-3 Shopping Center for the remainder of Parcel owned by A1 Schrader (Lots 4,5,6 ). City supports retail as part of 65 corridor improvements. Developer continues to market the property with no success. 1994 A1 Schrader informally inquires about self storage at Council Workshop. Plan is not supported by the City. Ward representative states that he would prefer a higher commercial use. 1994 City approaches developer to build sma11 office warehouse for Bacon Electric and possibly others as part of a redevelopment project promoted by City Manager Burns. This would require developer to purchase lots 2& 3 from City. Developer declines when City prices their land at $6 psf. City will not share appraisal. Developer has been offering his land at 2.50-3.00 psf and sold some to RYLL7ND for development of an office warehouse for around $2.00psf 1996 July, City clears all trees from lots 2,3. Demolishes East Service road and utilities and begins construction of Wellhouse expansion for water filtration system. City of Fridley TO: William W. Burns, City Manager �� FROM: John G. Flora� Public Works Director DATE: January 9, 1997 SUBJECT: Wellhead Protection Joint Powers Agreement PW97-013 The Anoka County Human Services Department has prepared a Joint Powers Agreement to address the wellhead protection and groundwater investigation in the southern area of Anoka County. This action is the result of the cities requesting County support to satisfy the mandated groundwater and �wellhead protection requirements levied by the legislature last year. The County has agreed to provide staff support and manage and monitor the activities of a joint powers group and the consultant activities, but will not provide any funds to participate in the study. As a result, 10 cities have been meeting and have agreed to join in a Joint Powers Agreement which consists of two phases. In Phase I, there is no cost to the City but would require an individual and alternate be identified to work with the group to establish the criteria necessary to retain a consultant to conduct the groundwater and wellhead protection study. When a consultant firm has been identified, Phase II would come into effect which would then require a financial contribution from each of the participating cities to complete the requested study. The criteria used to develop the cities participation was based upon population, service connections, water appropriations, number of wells and risks associated with the wells. Based upon these factors, the City of Fridley is to provide 16.3% of the project cost or $16,300 of a$100,000 study. In the 1997 budget, we have identified $5,000 for a group study and $10,000 for our local plan (figures were not available when the budget was being prepared). With a county-wide project, our local plan cost should be reduced. As a means of initiating the groundwater study for this area, I recommend the City Council approve the Wellhead Protection Joint Powers Agreement and designate the Public Works Director as primary and the Assistant Public Works Director as the alternate person to serve on that group. The cost to the City will be established when the RFP's for the study have been received and the number of cities cooperating defined. A final decision on continuing the effort and funding can be made prior to action on the Phase II portion of the plan. JGF:cz Attachment