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04/19/1997 - 00001571� THE MINUTES OF THE REGUI,AR MEETING OF THE ERIDLEY CITY COUNCIL OF APRIL 19, 1997 The Regular Meeting of the Fridley City Council was called to order by Mayor Jorgenson at 7:34 p.m. PLEDGE OF ALLEGIANCE: Mayor Jorgenson led the City Council and audience in the Pledqe of Allegiance to the Flag. ROLL CALL: NsERS PRESENT: Mayor Jorgenson, Councilman Barnette, Councilman Billings, Councilman 5chneider, and Councilwoman Bolkcom MEMBERS ABSENT; None PROCLAMATION: FRIDLEY FLOOD CONTROL APPRECIATION WEEK - APRIL 20-26, 1997: Mayor Jorgenson read and issued a proclamation proclaiming the week of April 20 through 26, 1997 as Flood Control Appreciation Week in the City. Many individuals, businesses, groups, organizations, and ' other cities provided food, flood control materials, and hours of labor filling sandbags for the building of a dike along 79th Way and Riverview Terrace when this area was threatened with flooding by the Mississippi River. Mayor Jorgenson stated that she and the Council wished to commend the Public Works, Police and Fire Department employees of the City for their many hours ot hard work, including cold, all night vigils, and for the effectiveness of staff and all the volunteers in fighting the spring floods. Mayor Sorgenson stated that rt was heartwarming to see a11 the citizens and students who participated in filling sandbags. The dike did hold and there was only some minor damage. Councilwoman Bolkcom stated that it was amazing how everyane helped during these rather cold days. Some volunteers came as far as Alexandria and St. Cloud. She and the neighborhood appreciated all the efforts and felt that staff was to be commended in their planning. 1. BOARD OF REVIEW MEETTNG: Mayor Jorgenson stated that Council would conduct the Board of Review Meeting to allow citizens an opportunity to discuss the market value placed on their property. '� � FRIDLEY CITY COUNCIL MEETING OF APRIL 14, 1997 PAGE 2 Mr. Hervin, City Assessor, stated that the purpose of the Board of Review is to review and correct assessments of the City. The City Council, acting as the Board of Review, has the authority to change the value of individual properties. The ratio is set by the County, and the market value should be within 94 to 95 percent of the sellinq price. Mr. Hervin stated that basic residential structure values ranged from three to six percent, with an overall average of about four percent. Councilman Billings stated that he wished to clarify what authority the legislature has given the City in regard to the market values. This value as of January 2, 1997 wlll be used to determine the taxes payable in 199B. The City has the authority to review the actual value placed on a property that will be used in the calculation of the taxes. However, the actual taxes will be set by the County, school districts, the City, and various other taxing jurisdictions. MOTION by Councilman Schneider to open the Board of Review meeting. Seconded by Councilman Billings. Upon a voice vote, all voting aye, Mayor Jorgenson declared the motion carried unanimously. DIRK SCHINDEL, 62�0 RIVERVIEW TERRACE: � Mr. Schindel, 627D Riverview Terrace, requested that Council reconsider the value placed on his property. The building value increased by 3.2 percent, other improvements by 3.7 percent, and the land value increased by 22.8 percent. It is his contention, and those of his neighbors, that the City did not employ reasonable foresight by raising the land values over 22 percent when the typical increase was four percent. He requested that the value of his property be reduced. Mr. Schindel stated that he is also speaking for his neighbors at 6290 and 6300 Riverview Terrace who were unable to attend the meeting this evening. Mr. Hervin stated that in reviewing the Mississippi River properties, it was found that values were not even close to the selling prices of these properties several years ago. The value of all river properties was raised by $18,000. Mr. Schindel stated that his concern was the erratic nature of the assessment process. He would have no complaint if property values were raised at a consistent level over a period of time. His value for several years remained the same and even decreased with an average increase of 1.87 percent a year. � Councilman Schneider asked Mr. Schindel if he was in agreement with the value placed on his property. Mr. Schindel stated that there really is not enough data to support this value. His complaint and request is for relief of this large increase in one year. If the properties were undervalued there is a weakness in the system, and the property owners should not suffer because of it. � FRIDLEY CITY COUNCIL MEETING OF APRIL 19, 1997 PAGE 3 Councilman Billings stated that if the value is correct then Mr. Schindel has been paying less taxes over the last several years. Mr. Schindel stated that he does not totally agree with the value placed on the property. There were years when the value went down or held steady. He questioned if other properties on creeks or marshes were treated in the same manner. Councilman Barnette stated that the properties on Locke Lake are also unique. He questioned how those properties would be affected by the restoration of the lake. Mr. Hervin stated that several years ago the values were reduced because of the condition of the lake, but there will be an increase once the lake is restored. Councilwoman Bolkcom suggested that perhaps Mr. Schindel may want to contact a realtor regardinq the value of his property. She stated that even though the increase in value has not been gradual, the $18,000 increase is over a s�x-year period. Mayor Jorgenson stated that she wished to point out that the City � Council cannot take any action on those properties at 6290 and 6300 Riverview Terrace for which Mr. Schindel was speaking. These property owners would have to file an appeal. Mr. Knaak, Crty Attorney, stated that the purpose of this meet�ng is to determine the actual value of property for purposes of taxation. There are certain methods used in making this determination; however, the bottom line is what the property is worth. If Mr. Schindel ob�ects to that figure there is recourse, and he may submit evidence to contradict the assessor's value. He believed Mr. Schindel did not contest the value, as such, but was opposed to the large increase in value. Mr. Schindel stated that he would like the opportunity to have the property appraised, and he would like to work with Mr Hervin. MOTION by Councilwoman Bolkcom to continue this item to the meeting on April 28, 1997. Seconded by Councilman Schneider. Upon a voice vote, all votinq aye, Mayor Jorgenson declared the motion carried unanimously. BRUCE & DIANN FYKSEN, 7518 5TINSON BOULEVARD: Mr. Hervin, City Assessor, stated that he conducted an actual comparison of this property with other simzlar properties. There 1 were substantial improvements to the property with the addition of a new roof and sidinq. He felt that $105, 400 is the true market value of this property. Mr. Fyksen stated that the value is being increased from $95,000 to over $105,000. The value in 1987 was $76,500 which is over a $28,000 increase from 1987, The kitchen was remodeled over ten years ago, and he felt this value was previously taken into � FRIDLEY CITY COUNCIL MEETING OF APRIL 14, 1997 PAGE 4 consideration. He questioned how many times this improvement is considered in determining the value. He also felt that the increase in value for the new roof and siding was too hzgh. The increase amounts to 38 percent in the ten years he has owned the property. � Mr. Hervin stated that a 38 percent increase over a ten-year period is typical or an average of about three percent a year. Councilman Schneider stated that if a three percent increase was applied to this property, the value would increase from $95,000 t�� about $98,000. Mr. Fyksen stated that a list of home sales in his neighborhood averaged about $94,025. There are two small homes ad�acent to his property, and he doubted that he could sell his home for $105,000, as the smaller homes would probably have some effect on the value of his property. Mr. Hervin stated that he did not feel the neighborhood was an impediment, Mr. Fyksen stated that he was not in agreement with the value placed on his property, and he felt he was being assessed twice for the kitchen improvement. Mr. Hervin stated that there was not a value placed on the improvement when it was originally completed, and this has not been done now. Councilman Schneider stated that Mr. Fyksen could be given some additional time to bring further information to support his request for a reduction in value. MOTION by Councilman Schneider to continue this item to the meeting on April 28, 1997. Seconded by Councilman Barnette. Upon a voir,e vote, all voting aye, Mayor Jorgenson declared the motion carrie;d unanimously. BARSARA & NEIL SOftENSON. 1455 N. DANUBE: Mr. Sorenson stated that he purchased his home in December, 19�6 for $205,000, and the value has increased to $225,000. Mr. Hervin, City Assessor, stated that the home was built in 198L, and he would recommend reducing the value to $205,000, the actual sellinq price of the home in 1996. � MOTION by Councilman SchneYder to ad�ust the market value of t12e property at 1455 North Danube to $205,000 based on the 1996 selling price. Seconded by Councilwoman Bolkcom. Upon a voice vote, a11 voting aye, Mayor Jorgenson declared the motion carried unanimously. � � � FRIDLEY CITY COUNCIL MEETING OF APRIL 14, 1997 PAGE 5 PATRICK & NLIE DELANEY, 6250 RIVERVIEW TERRACE: Mr. Hervin, City Assessor, stated that the value of this river property was raised for the same reason as Mr. Schindel's. The value increased from $138,000 to $154,700, The property owner was not present to speak on his/her behalf. MOTION by Councilwoman Bolkcom to continue this item to the meeting on April 28, 1997. Seconded by Councilman Barnette. Upon a voice vote, all voting aye, Mayor Jorgenson declared the motion carried unanimously. Mr. Hervin stated that Mr. A1 Barck, representing the County, was present to answer any questions on commercial properties. MOTION by Councilman Schneider to continue the Board of Review meeting to April 28, 1997. Seconded by Councilwoman Bolkcom. Upon a voice vote, all voting aye, Mayor Jorgenson declared the motion carried unanimously. I�\J:]CZi��I.�ltil8■uNl�l�yYaG`i� COUNCIL MEETING, MARCH 31, 1997: MOTION by Councilman Billings to approve the minutes as presented. Seconded by Councilman Barnette. Upon a voice vote, all voting aye, Mayor Jorgenson declared the motion carried unanimously. APPROVAL OF PROPOSED CONSENT AGENDA: NEW BUSINESS: 2. RECEIVE THE MINUTES OF THE PLANNING COMMISSION MEETING OF MARCH 19, 1997: RECEIVED THE MINUTES OF THE PLANNING COMMISSION MEETING OF MARCH 19, 1997. 3. RECEIVE THE MINUTES OF THE PLANNING COMMISSION MEETING OF APRIL 2, 1997; RECEIVED THE MINUTES OF THE PLANNING COMMISSION MEETING OF APRIL 2, 1997. 4. SPECIAL USE PERMIT, SP #97-01, BY LEASE NIANAGEMENT GROUP, INC., TO ALLOW AGENCIES SELLING OR DISPLAYING NEW AND/OR USED VEHICLES, RECREATIONAL VEHICLES, OR SOATS, SUBJECT TO F,AREMENTS OF RECORD, GENERALLY LOCATED AT 7011 UNIVERSITY AVENUE N.E. (WARD 1): Mr. Burns, City Manager, stated that the City received similar requests approved in 1993 and 1999 for Friendly Chevrolet. There were no complaints, and the Planning Commission voted unanimously to approve this special use permrt with thirteen stipulations. The sale will be held on May 16 and 17, and the display vehicles located in the north parking 1ot. � � FRIDLEY CITY COUNCIL MEETING OF APRIL 14, 1997 PAGE 6 � GRANTED SPECIAL USE PERMIT, SP #97-01, WITH THE FOLLOWING STIPULATIONS: (1) THE VEHICLE SALES WILL OCCUR NO MORE TFIF�N TWICE PER YEAR; (2) THE USE OF STREAMERS, PENNANTS, AND FLAGS IS PROHIBITED; (3) THE PETITIONER SHALL COMPLY WITH THE TEMPORARY SIGN ORDINANCE FOR ALL TEMPORARY SIGNS ON THE PROPERTY; (4) THE PETITIONER SHAI.L OBTAIN A TEMPORARY BUILDING PERMIT AND SHAI.L COMPLY WITH ARTICLE 32 OF THE UNIFORM FIRE CODE; (5) PORTABLE TOILETS SHALL BE HANDICAPPED ACCESSIBLE; (6) THE PETITIONER SHALL PROVZDE A TRAFFIC MANAGEMENT PERSON TO PROPERLY CONTROL TRAFFIC ON-SITE, TO PREVENT PROBLEMS OCCURRING ON 69TH AVENUE AT THE UNIVERSITY AVENUE FRONTAGE ROAD, AND TO DIRECT UNNECESSARY TRAFFIC AWAY FROM TAE RESIDENTIAL NEIGHBORHOOD; (7) THE PARTICIPATING DEALERSHIPS SI-IALL APPLY FOR AND RECEIVE THE APPROPRIATE CITY LICENSES; (8) TAERE SHALL BE NO TEST DRIVING OF CARS IN THE RESIDENTIAL NEIGHBORHOOD IACATED SOUTH OF 69TH AVENUE AND IN IACKE PARK; (9) EARRICADES SFiALL BE PLACED AT THE ENTRANCE TO THE NEIGHBORHOOD ON 69TH AVENUE AND ON 71ST AVENUE. THE HARRICADE AT 69TH AVENUE SHAI.L INCLUDE A SIGN WITH THE LANGUAGE "RESIDENTIAL P.REA - NO EXIT"; (10) TFiE CP12S FOR THE SALE SHAI.L BE STREET OPERABLE AND SHALL NOT BE LEAKING FLUID; (11) THE SPECIAL USE PERMIT SiiALL BE REVIEWED BY THE PLANNING COMMISSION PRIOR TO THE NEXT SALE; (12) A SECOND SALE WILL NOT BE HELD FOR AT LEAST 90 DAYS AFTER COMMENCEMENT OF THE FIRST SALE TO ELIMIIIATE THE APPEARANCE AND IMPACTS OF A PERPETUAL AUTO SALE IN THIS LOCATZON; AND (13) THE PETITIONER SHALL BE RESPONSIBLE FOR TRA.SH CONTAINMENT AND CLEAN-UP. APPROVE COMPREHENSIVE SIGN PLAN FOR OSBORNE COMMERCE 223 OSBORNE ROAD N.E. (WARD 3): Mr. Burns, City Manager, stated that this sign plan is submitted for the building occupied by Gazda Moving and Storage. Steiner Development proposes the following sign criteria: (1) each tenant is allowed one 4 x 10 foot sign, (2) tenant signs are wall mounted, single faced pan signs, non- illuminated; (3) signs are constructed of 1.25 gauge aluminum which has been anodized to dark bronze in color; and (4) each tenant is allowed their own color for tenant logo and letters. APPROVED COMPREHENSIVE SIGN PLAN FOR OSBORNE COMD�RCE CENTER WITH THE ABOVE SIGN CRITERIA. 6. RESOLUTION N0. 31-1997 APPROVING AND AUTHORIZING SIGNING AN AGREEMENT WITH THE MINNESOTA POLLUTION CONTROL AGENCY TO PROCEED WITH THE SPRINGBROOK SUBWATERSHED RESOURCE INVESTIGATION PROJECT: ' Mr. Burns, City Manager, stated that the Minnesota Pollution Control Agency notified the City of approval of the grant application for the Springbrook Subwatershed Resources Investigation Pro�ect. Thts grant was for $29,745 and will be matched by the cities of Fridley, Spring Lake Park and Blaine. Fridley's contribution is $1,500 in cash and $11,340 in in- kind contributions. Mr. Burns stated that the ob�ective of the �oint partnership � � � FRIDLEY CITY COUNCIL MEETING OF APRIL 14, 19 F is to investigate the water quality and quantity and land use changes in 5pringbrook subwatershed; model current and pro�ected water quality and quantity wi�h emphasis on flows entering into Springbrook Nature Center; identify the primary sources of non-point source pollution that may be causing the degradation of Springbrook Nature Center; and identify the best management practices that may reverse the current trend of degradation. Mr. Burns stated that staff expects to apply for a Phase II grant that would provide additional funds for implementation of corrective water quality/quantity measures. ADOPTED RESOLUTION NO. 31-1997. 7. RECEIVE BIDS AND AWARD CONTRACTS FOR PLAYGROUND EQUIPMENT :3 Mr. Burns, City Manager, stated that bids for the playground equipment were opened on March 26, and the proposals reviewed for three different park locations. The Parks and Recreation Commission, as well as the surrounding neighborhoods, were given the opportunity to review the proposals. RECEIVED THE FOLIAWING BIDS FOR PROJECT NO. 306: AI,TURA PARK, PROJECT 306A: MIDWEST PZAYSCAPES, INC., $30,000; MN%WI PLAYGROiJNDS, INC., $30,000; EARL F. ANDERSEN, INC., $30,000; AND FLANAGAN SALES, INC., $30,000. COMMONS PARK, PROJECT 306B: MIDWEST PLAYSCAPES, INC., $75,000; MN/WI PLAYGROUNDS, INC., $75,000; EARL F. ANDERSEN, INC., $75,000; AND FLANAGAN SALES, INC., $75,000. MOORE LI1KE PARK, PROJECT 306C: MIDWEST PLAYSCAPES, INC., $35,000; MN/WI PLAYGROUND, INC., $35,000; EARL F. ANDERSEN, INC., $35,000; AND FLANAGAN SALES, INC., $35,000. STEVENSON ELEMENTARY, FROJECT 3068: MIDWEST PLAYSCAPES, INC., $38,000; MN/WI PLAYGROUND, INC., $38,000; EARL F. ANDERSEN, INC., $38,000; AND FLANAGAN SALES, INC., $38,000. AWARDED THE BIDS AS RECONAIENDED BY STAFF, AS FOLLOWS: Altura Park, Pro�ect 306A, to Flanagan Sales, Inc. in the amount of $30,OOD; Commons Park, Project 306B, to Minnesota/Wisconsin Playqround, Inc. in the amount of $75,000; Moore Lake Park, Pro�ect 306C, to Minnesota/Wisconsin Playground, Inc., in the amount of $35,000; and Stevenson Elementary School, Pro�ect 306D, to Earl F. Andersen, Inc. in the amount of $38,000. ESTABLISH A PUBLIC HEIIRING FOR APRIL 28, 1997, FOR AN OFF-SALE BEER LICENSE TO KWIK STOP-N-SHOP, INC.: Mr. Burns, City Manager, stated that the location for this off-sale beer license is at 315 Osborne Road and is under new ownership. The Police Department has conducted the required background investigation and found no reason to deny the application. The proposed hearing date for this license is April 28, 1997. � � , FRIDLEY CITY COUNCIL MEETING OF APRIL 14, 1997 PAGE B SET PUBLIC HEARING FOR THIS OFF-SALE BEER LICENSE TO KWIK STOP-N-SHOP, INC. FOR APRIL 28, 1997. RESOLUTION DESIGNATING OFFICIAL DEPOSITORIES FOR THE CITY OF FRIDLEY: Mr. Burns, City Manaqer, requested that this item be deleted from the agenda. 10. RESOLUTION DESIGNATING A SECONDARY CITY OF FRIDLEY CHECKING Mr. Burns, City Manager, requested that this item be deleted from the agenda. 11. RESOLUTION NO. 32-1997 OF THE CITY OF FRIDLEY, MINNESOTA� APPROVING THE ABATEMENT OF CERTAIN NON-IMPROVEMENT SPECIAL ASSESSMENTS FOR A RESIDENCE LOCATED AT 9680 SECOND STREET N.E., FRIDLEY, MINNESOTA (WARD 3): Mr. Burns, City Manager, stated that on October 26, 1996, public nuisance costs associated with 4680 Second 5treet were certified to the County for collection with the 1997 real estate taxes. In June of 1996, the property was sold by HUD to Mr. Thomas Ryan. Prior to closing the title company asked the City to run a search for special assessments against the property. Since nuisance abatement charges were not included in the special assessment file, but in the "billing" file, they were not discovered at the time of the search. Consequently, they were not paid by HLTD at the time of the closing. Mr. Burns stated that Mr. Ryan contacted the City after learning that the nuisance abatement charges of $1,934 had been charged against his taxes. Staff contacted HUD and asked them to consider reimbursement for the nuisance abatement charges, and they aqreed to reimburse the City for half the expenses, leaving a balance of $967.08. Staff is recommending that the entire assessment be abated and that the HUD reimbursement be credited to the proper fund. In the future, nuisance abatement charges will be noted on the special assessment system. ADOPTED RESOLUTION NO. 32-1997. 12. APPOINTMENT: CITY EMPLOYEE: Mr. Burns, City Manager, stated it is recommended that James Mork be appointed to the position of Patrol Officer which is vacant as the result of Officer Fraser's retirement. Mr. Mork is a graduate of Patrick Henry High School, attended Northwestern College, and received a BA Degree from Bethel College. He has also received a certificate of law enforce- ment from Metropolitan State College and was employed as a Security Supervisor at Gittleman Management Company. � � FRIDLEX CITY COUNCIL MEETING OF APRIL 19, 1997 PAGE 9 Name James Mork 13. 14. 15. CONCURRED WITH THE FOLIAWING APPOINTMENT BY THE CITY MANAGER: Position Patrol Officer Partially Exempt CLAIMS: Starting Starting Salar Date Replaces $13.78 April 21, David per hour 1997 Fraser AUTHORIZED PAYMENT OF CLAIM NOS. 73531 THROUGH 73974. LTCENSES: APPROVED THE LICENSES AS SUBMITTED AND AS ON FILE IN THE LICENSE CLERK'S OFFICE. E5TIMATES: APPROVED THE ESTIMATES, AS FOLIAWS: Richmar Construction, 7776 Alden Way, N.E. Fridley, MN 55432 Water Treatment Pro�ect No. 293 Estimate No. 8 Inc. Plant No. 3 $183,240.70 No persons in the audience spoke regaxding the proposed consent agenda items. MOTIOD7 by Councilman Baxnette to approve the consent agenda items, with the deletion of Items 9 and 10. Seconded by Councilman Schneider. Upon a voice vote, all voting aye, Mayor Jorgenson declared the motion carried unanimously. ADOPTION OF AGENDA: MOTION by Councilman Schneider to adopt the agenda as submitted. Seconded by Councilman Barnette. Upon a voice vote, all voting aye, Mayor Sorgenson declared the motion carried unanimously. OPEN FORUM, VISITORS: FLOOD CONTROL EFFORTS: Mr. Mike LaFave, 6A0 Dover Street, thanked the City for their � efforts in fighting the flood waters. He appreciated the fact that the Mayor and various Councilmembers were there. The Police and Fire Departments kept people out of the neighborhood and kept the residents informed. He wanted to thank the Public Works employees who were out in miserable weather. They were very patient, and he appreciated all their efforts. ' FRIDLEY CITY COUNCIL MEETING OF APRIL 14, 1997 PAGE 1D PUBLIC HEP,RINGS: 16. PUBLIC HEARING TO MODIEY REDEVELOPMENT PROJECT AREA NO. 1 AND MOTION by Councilman Schneider to waive the reading of the public hearing notice and open the public hearing. Seconded by Councilman Sarnette. Upon a voice vote, all voting aye, Mayor Jorgenson declared the motion carried unanimously and the public hearing opened at 9:0� p.m. Ms. DaCy, Community Development Director, stated that the public hearing is requested in order to establish a economic development district for Minnesota Commercial Railway Company. The pro�ect, known as Commercial Transload of Minnesota (CTM), consists of a 57,890 square foot building on a four-acre site located south of Northco Drive and north of the Columbia Arena parking lot. CTM will extend the rail spur into the building to transfer steel to trucks. The cost of the pro�ect is $2,525,474 plus $360,000 for extension of the spur and the crane. Ms. Dacy stated that the requested amount of assistance, $250,000 � is to be provided through a grant of $125,000 and a ten-year loan of $125,000. The assistance is to be used to remove poor soil, site clearance, and building substantial foundations to support the crane in order to transfer the steel. The developer will be required to obtain a certificate of completion prior to delivery of the assistance, and the development contract will also require the developer to agree to pay a minimum amount of taxes ($92,000). Ms. Dacy stated that because the site will be valued based on State Statute reqarding railway facilities, payment of a minimum amount of taxes will be proposed in the development contract as opposed to a minimum assessment agreement. Four to six employees will be hired the first year. Ms. Dacy stated that the County and school district were notified, and no comments have been received as of this date. There will be no LGA/HACA loss to the City as the result of this district. The legislature amended the TIF laws in 1995 to provide a"local contribution" option for cities instead of a LGA/HACA deduction. The contribution must be made from "unrestricted monies" of either the HRA or City and is equal to ten percent of the increment which would be a maximum of $40,000 over the entire life of the district. The HRA has adequate unrestricted monies to provide the contribution. � Ms. Dacy presented a drawing of the site plan. There is no outdoor storage and only one loading dock. This facility would provide steel to several businesses in Fridley, including Onan and Kurt Manufacturing. Truck traffic would be reduced as one rail car is equal to three or four trucks. Ms. Dacy stated that the maximum duration of this economic development district is nine years from the date of receipt of the � � FRIDLEY CITY COUNCIL MEETING OF APRIL 14, 1997 PAGE 11 first payment of tax increment or 2007. The district will expire in 2007 and is estimated to generate approximately $364,552 of tax increment. Ms. Dacy stated that the HRA recommended approval of this district at their April 10 meeting. Councilman Barnette stated that he lives in the neighborhood to the south. He questioned if there would be any noise from the railroad cars. Mr. John Gohmann, President of Minnesota Commercial Railway Company, stated that there would be no additional noise beyond what exists there today with the train. The rail cars would be switched inside the building, and it is virtually silent. There would be no manufacturing or machines. No other persons spoke regarding the creation of this tax increment financinq district. MOTION by Councilman Billings to close the public hearing. Seconded by Councilwoman Bolkcom. Upon a voice vote, all voting aye, Mayor Jorgenson declared the motion carried unanimously and the public hearing closed at 9:10 p.m. 17. PUBLIC HEARING TO MODIFY REDEVELOPMENT PROJECT AREA N0. 1 AND CREATE TAX INCREMENT FINANCING DISTRICT N0. 16 (LINN PROPERTY unr.nTnTr_c T. r. r � �wn�n �� . MOTION by Councilwoman Bolkcom to waive the reading of the public hearing notice and open the public hearing. Seconded by Councilman Barnette. Upon a voice vote, all voting aye, Mayor Jorgenson declared the motion carried unanimously and the public hearing opened at 9:10 p.m. Ms. Dacy, Community Development Director, stated that this public hearing is requested in order to establish a tax increment financing district and to add a 1.5-acre srte to the City's redevelopment program. The developer is proposing to construct an 8,�00 square foot retail mall and to refurbish the former Dick's Wheel and Tire building into a Goodyear Service Center at the northeast corner of 57th Avenue and Main Street. The TIF district would include five parcels proposed for redevelopment across from Holiday Plus. Ms. Dacy stated i� is also proposed that the modification of the pro�ect area include the existing and the proposed right-of-way for 57th Avenue from Main Street to approximately 300 feet east of � University Avenue. The purpose of the expansion of the pro�ect area is to enable the HRA to contribute toward the 57th Avenue reconstruction plan. At this time, it is contemplated that the HRA would contribute fifty percent of the street lighting and landscaping/irrigation costs for the pro�ect. Ms. Dacy stated that the total cost of the pro�ect is $1,566,200. The estimated market value of the Goodyear Service Cen,ter is ' � � FRIDLEY CITY COUNCIL MEETING OF APRIL 14 1997 PAGE 12 $432,000, and the new strip mall's market value is estimated to be $518,700. Ms. Dacy stated that the County and the school district have been notified, and there have been no comments to date. The developer conducted a neighborhood meeting, and the plan was well received. The Appeals Commission has recommended approval of several variances. There would be no LGA/HACA loss to the City as a result of creating the district. The proposed tax increment financing plan elects the "local contribution" instead of the LGA/HACA loss. Ms. Dacy stated that the assistance provided would be a pay-as-you- go revenue note of $175,000 to be repaid over a twelve-year period. The HRA approved the resolution to modify the pro�ect area and to create the district. A motion to prepare the development contract failed on a tie vote. The developer intends to bring this issue back to the HRA for their reconsideration. The dissenters on the motion for the development contract were concerned about the policy and expenditure of funds for a commercial rehabilitation pro�ect that would entail an existing building. There have been requests in the past for improvements of tenant build�ngs which have been denied, and the HRA was concerned that a policy may be set for existing buildings. Ms. Dacy stated that this is a redevelopment pro�ect, and the renovation of the tire center is part of the redevelopment. Jim McFarland was absent from the April HRA meeting, and this issue will again be submitted to the HRA at their May meeting when all members are present. Councilman Billings felt that this was an HRA issue. However, the developer's costs do include some costs for the building that exists. There may be the question if the City would be subsidizing current property owners who are not taking care of their property by stepping in and rewarding the owner so he can get top dollar for his property. He questioned if the building meets code requirements. Ms. Dacy stated that the building is not condemnable. If the owner decided to lease it this could be done if the nature of the business remains the same. The petitioner is proposing to significantly improve and modify the building. Councilwoman Bolkcom stated that this issue also pertains to other types of property where owners do not take care of their buildings. These are sold to someone who receives assistance to repair them. Councilman Schneider stated that the greater good is that this may solve neighborhood problems. Mr. Linn stated that it seems the concentration is on the tire center that exists. Basically, only the outer walls would be used on the existing tire center, and everything else would be replaced including interior walls, plumbing, electrical, landscaping, fencing, etc. His application for TIF money was for redevelopment � FRIDLEY CITY COUNCIL MEETING OF APRIL 14, 1997 PAGE 13 of the homes to the west, and the tire center became part of a larger focus. Mr. Linn presented a drawing of the proposed strip mall to the west of the existing tire center. He stated that he has worked with staff and received a lot of feedback from the residents. He felt that this was a very good pro�ect which would improve the area. The economics would not work without TIF assistance. Mayor Jorgenson felt that there was overwhelming support by the neighborhood £or this pro�ect. It is an exciting development for that corner, and she applauded Mr. Linn for his efforts. Mr. Linn stated that he wanted to create a positive in the area and has worked with staff and the neighborhood. In regard to the traffic and access, he felt there was agreement, and he hoped this project could proceed. Mr. Casserly, advisor to the HRA, stated that he really believes this pro�ect needs some assistance because of the redevelopment nature. He reviewed the land costs. If assistance is not provided, the result will not be what the City wants to achieve for this area. It seems that the returns involved would �ustify the ' investment. No other persons in the audience spoke regarding the creation of this tax increment financing district. MOTION by Councilwoman Bolkcom to close the public hearing. Seconded by Councilman Schneider. Upon a voice vote, all voting aye, Mayor Sorgenson declared the motion carried unanimously and the public hearing closed at 9:37 p.m. 16. PUBLIC HEARING ON AN ORDINANCE RECODIFYING THE FRIDLEY CTTY CODE, CHAPTER 205, ENTITLED "ZONING," BY AMENDING SECTIONS I:��ly MOTION by Councilman Barnette to waive the reading of the public hearing notice and open the public hearing. Seconded by Councilman 5chneider. Upon a voice vote, a11 votinq aye, Malor Sorgenson declared the motion carried unanimously and the public hearinq opened at 9:38 p.m. Mr. Hickok, Planning Coordinator, stated that this ordinance amendment applies to the industrial zoning districts regarding distribution and warehouse facilzties. In recent months the City � has experienced 500,000 square feet of industrial warehouse development. Mr. Hickok stated that with this development there has been an increase of trucks traveling through neighborhoods idling near homes adding noise and fumes. Complaints have increased from residents due to impacts of these developments. Another impact is � FRIDLEY CITY COUNCIL MEETING OF APRIL 14, 1997 PAGE 14 the unsightliness of overhead doors/dock doors, trucks, and industrial implements facinq residential properties. Mr. Hickok stated that the qoal of this ordinance amendment would be to reduce the impact of warehouse and distribution facilities on residential properties by controlling their location in the City; to encourage uses which provide a significant amount of �ob opportunities and which require more complex building systems; promote clean uses which do not produce fumes, odors, or require outside operations which may cause noise; and eliminate uses which require significant amounts of outdoor storage, display, or are already permitted in other zoning districts. Mr. Hickok stated that the suggested amendment in order to meet these goals is to amend the existing industrial zoning districts M-1, M-2, and M-3 to prohibit loading docks facing the public right-of-way on corner lots located across from residential uses, to establish a new industrial district entitled "M-4 Manufacturing Only," and rezone some of the remaining vacant sites to an M-4 designation to encourage manufacturing uses. Mr, Hickok stated that the C1ty was divided into three districts to evaluate vacant industrial parcels. The criteria used was (1) is � the property adjacent to or across the street from a residential use; (2) would the property meet the minimum requirements of the proposed M-4 zoning district; (3) would it be possible to develop a distribution or warehouse facility in excess of ten loading docks; and (4) is there a distribution warehouse facility already in the area. If there was an afiirmative answer to any of these questions, the land was proposed for M-4 consideration. The eight properties evaluated were: (1) a site on Northco Drive owned by Northco Real Estate Services; (2) a site on Commerce Lane owned by McGlynn Bakeries; (3) a site owned by Kurt Manufacturing on Central Avenue; (4) a site owned by Friendly Chevrolet/Geo on Central Avenue; (5) a site owned by RRI on Ashton; (6) a site on Osborne Road and Old Central owned by Anderson Trucking; (7) a site on 61st Avenue and Main Street owned by Commercial Property Investment; and (8) a site on Osborne Road owned by Coachman Companies. Mr. Hickok stated that the Planning Commission conducted public hearings, and approved the ordinance language to amend the M-1, M-2, and M-3 zoning districts and create the M-4 zoning district. Mr. Tim Nelson, Everest Development representing Commercial Property Investment, stated that they are the owners of the 10.67 acre parcel of property at 61st Avenue and Main Street. It is felt that the rezoninq is unfair and sub�ective, and he was surprised about the rezoning moratorium and proposal for an M-4 zoning � district. Mr. Nelson stated that they are opposed to the M-4 rezoning on the property, the unilateral rezoninq of the site, and restrictions on a corner lot ad�acent to residential. They believe the current screening rules are adequate and sufficient to protect the public from view of truck docks. They were the only owners who had a significant warehouse pro�ect that was proposed when the moratorium � FRIDLEY CITY COUNCIL MEETING OF APRIL 14, 1997 PAGE 15 was enforced. There was no warning that the moratorium was coming or under consideration. There was no expression of regret when they lost a tenant and no indication that the City would compensate the owner for the lost of opportunity on this site. Mr. Nelson stated that he would refer Council to the correspondence and tape of the Planning Commission meeting where this issue was discussed. Mr. Nelson stated that he is not here to talk about leqal claims but to suggest a course of action. He assumes the City will proceed as recommended by staff and the Planning Commission to establish the M-4 zoning district. The owner's preference would be to leave the zoning as it is and allow him to develop the pro7ect that was proposed for the site. The next option would be to market the site for the remainder of the year for manufacturing uses, have the City make up the difference from the sale price of the property and $9 per square foot for the site, or the City or HRA buy the property outright at $4 a square foot. If these options are not acceptable, the owner would donate the property to a charitable organization. Mr. Nelson stated that they have contacted Sunlight Church, and the � Pastor 1s here to discuss his interest in the property. He understands that the use of the property for a church would require rezoning or a special use permit. If that was not achievable they would explore other options for charitable opportunities. � Mr. Nelson requested that Council provide feedback, a response on their preference for the options outlined, and submit a reply to them. He realized �hat this is short notice, but they received no notice on the moratorium when they had plans for development of the site. Councilman Billings stated that from his own perspective the purpose of the public hearing is to gather information to help make his decision. When he has the information, he would then make a decision, and this may not be until the time a vote is taken. Pastor Steve Hoffman stated that they were contacted by Everest Corporation regarding this site. Since they sold their facilities in Spring Lake Park this site would be wonderful ior a church, as they serve many families in Spring Lake Park and Fridley. They would be willing to receive the property and not only build a church, but recreational facilities and make it a beautiful site for the City. Councilman Schneider asked the square footage of this site and the market value of the property. Ms. Dacy stated that it is 465,OOD square feet, and the 1995 market value was $460,000. Councilman Schneider stated that at an asking price of $4.00 a square foot, the property would cost over $1.6 million dollars. � � � CITY COUNCIL MEETING OF APRIL 14, 1997 PAGE 16 Ms. Dacy stated that churches are not permitted in an industrial zone, so the property would have to be rezoned for this use. Councilman Schneider stated that he has read the minutes of the Planning Commission meetings. Clearly, there is a disagreement as to whether or not an action such as this would detract from the property value. Mr. Knaak, City Attorney, stated that there is no right to a certain gain or increase as the result of zoning clarification. He did not hear any argument as to a decrease in the value of the property. However, appraisals can be done to determine the value. Councilman Schneider stated that what he is hearing regarding the consideration of an M-4 zoning district that this really should not be a factor one way or the other. Mr. Knaak answered in the affirmative. MOTION by Councilman Billings to close the public hearing. Seconded by Councilwoman Bolkcom. Upon a voice vote, all votinq aye, Mayor Jorgenson declared the motion carried unanimously and the public hearing closed at 10:00 p.m. OLD BUSINESS: 19. SECOND READING OF AN ORDINANCE OF THE CITY OF FRIDLEY ING ON CERTAIN PROJECTS FOR OR W Councilman Billings stated that this ordinance was reviewed by the HRA last Thursday evening. Several questions arose from the HRA meeting as well as from staff and the attorney. In order to a11ow adequate time to research these concerns he would request this item be tabled. MOTION by Councilman Billings to table this item. Seconded by Councilman Schneider. Upon a voice vote, all voting aye, Mayor Jorgenson declared the motion carried unanimously. NEW BUSINESS: 20. RESOLUTION OF THE CITY OF FRIDLEY, MTNNESOTA, FOR THE ADOPTION OF A POLICY AND CONTRACT LANGUAGE IMPLEMENTING THE PROVISIONS OF ORDINANCE NO. , PROVIDING FOR THE PAYMENT OF PREVAILING WAGES ON CERTAIN PROJECTS AND CONTRACTS WITHIN THE CITY: MOTION by Councilman Billings to table this item. Seconded by Councilman Schneider. Upon a voice vote, all voting aye, Mayor Jorgenson declared the motion carried unanimously � � � FRIDLEY CITY COUNCIL MEETING OF APRIL 19� 1997 PAGE 17 21. APPROVE JOINT POWERS AGREEMENT ESTABLISHING THE NORTHSTAR CORRIDOR DEV�LOPMENT AUTHORITY: APPOINT REPRESENTATIVE AND ALTERNATE TO SERVE ON THE AUTHORITY: Councilman Billings stated several months ago, there was a presentation from Tim Yantos, Assistant County Administirator, regarding the Northstar Corridor. The Northstar Corridor is comprised of the Burlington Northern and Trunk Highway 10 corridors from downtown Minneapolis to St. Cloud and possibly to Sartell. The idea was to provide a task force comprised of representatives from municipalities, counties, and affected governmental entities along this route, to conduct a study and apply for a grant from the Federal qovernment under the Intermodal Service Transportation Efficiency Act (ISTEA) legislation. Councilman Billings stated that he was appointed to this task force, as well as a staff inember from the Anoka County and Sherburne County Attorneys offices. A �oint powers agreement has been drafted, reviewed, and the final version is presented for Council's approval. As part of the �oint powers agreement, the group is seeking funding from the Federal government. Any local funding would be coming from the counties or railroad authorities. There is no commitment on the part of the City. A future budget would be set up under the �oint powers agreement, and the cities may be asked to participate. The City could get out of the �oint powers agreement if the funding impacted on the City. Mr. Burns, City Manager, stated that the City Attorney has reviewed this �oint powers agreement and reported that there was nothing in the agreement to cause concern. Mr. Knaak stated that this �oint powers agreement would impose no immediate financial obligation on the City other than sending a representative. Councilman Barnette asked Councilman Billings if everyone seemed willing to participate. Councilman Billings stated that he felt everyone at the meeting wished to participate. Mayor Jorqenson asked Councilman Billings if he was interested in continuing as the representative. Councilman Billings stated that he would be the representative if Council so desired. However, an alternate also needs to be appointed. Mayor Jorgenson asked Mr. Burns for a recommendation on a staff member to serve as an alternate. Mr. Burns recommended Jon Haukaas, Assistant Public Works Director. � � � FRIDLEY CITY COUNCIL MEETING OF APRIL 19, 1997 PAGE 18 MOTION by Councilman Billings to approve the �oint powers agreement establishing the Northstar Corridor Development Authority and authorize the appropriate City officials to execute same and submit it to Anoka County. Seconded by Councilman Barnette. Upon a voice vote, all voting aye, Mayor Jorgenson declared the motion carried unanimously. MOTION by Councilman Barnette to appoint Councilman Billings as the Council's representative to the Northstar Corridor Development Authority and Jon Haukaas, Assistant Public Works Director, as the alternate. Seconded by Councilwoman Bolkcom. Upon a voice vote, all voting aye, Mayor Jorgenson declared the motion carried unanimously. 22. INFORMAL STATUS REPORTS: Mr. Burns, City Manager, stated that the items to be discussed during the conference session are consideration of retractable basketball nets on the side walls of the Hayes gymnasium, and a change order that w�ll be necessary. The retractable basketball nets would allow two courts to be used for both basketball and volleyball. The other issue is for a 1997 contribution for playground upgrades at Hackmann Park. Councilwoman Bolkcom asked for an update on the recycling program. Mr. Hickok stated that, in general, it has been positive. There have been some concerns about the time of day �ahen the materials are picked up, especially on busier streets when traffic is heavier. All in all, the program is working well, and residents are getting acclimated to the new schedules. Once drivers are used to their routes they can make some ad�ustments in the timing. Councilman Barnette asked what would be done with the sandbags that were filled to prevent flooding. Mr. Burns stated that the plan is to use the sand at the Moore Lake beach. Councilman Barnette stated that he has heard nothing but excellent comments on the manner in which the flood control was handled. The students from the high schools were happy they could participate. A plaque could possibly be prepared for the schools. Councilwoman Bolkcom stated that a gentleman in the Riverview Heights area stated that it seemed all everyone heard was bad about the youth, but he said the way the students helped sure changed his thinking. There were people of a11 ages helping out. Councilman Barnette stated that a special reward should go to Ann Bolkcom who was out working hard every day. Mayor Jorgenson thanked Councilman Barnette for organizing the student effort. � FRIDLEY CITY COUNCIL MEETING OF APRIL 14, 1997 PAGE 19 ADJOURNMENT: MOTION by Councilman Schneider to ad�ourn the meeting. Seconded by Councilman Barnette. Upon a voice vote, all voting aye, Mayor Jorgenson declared the motion carried unanimously and the Regular Meeting of the Fridley City Council of April 14, 1997 ad�ourned at 10:21 p.m. � � Respectfully submitted, -`�u,�� ��� Carole Haddad Secretary to the City Council r�,� � /��� r Nancy J. Jorgens n Mayor