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12/11/2000 - 4697OFFICIAL CITY COUNCIL AGENDA CITY COUNCIL MEETING DECEMBER 11, 2000 � Y FRIDLEY CITY COIINCIL MEETING � �'� ��w�a�r , ATTENDENCE SHEET M�nday, �ecembeh. 11, 2000 � 7:30 P.M. PLEASE PRINT NAME, ADDRESS AND ITEM NUMBER YOU ARE INTERESTED IN ITEM PRINT NAME (CLEARLY) ADDRESS NUMBER ��� � � 1 ��� �J (-���' (,''�-2� ��<<: i �=y � ��; �� �. _ ; �� �;.. -.J ��' C. � d,'' /�- `: ,'�-:� �r� �, � L:k- > v i i��= f-� f� �7 N: � / ` _ ___ , _ ��-� -�� � �' �-: � �.i f��� �� I (,�t��� h �i �r� ��-��: r�� �� i � ;�_ . �7�s � � ; �� , L � / _, , �/ ���� =2��,��, ^r,��s+'�.-,._ ��- iw. �� lV ���'`'�`�'7� `��/-�..__ �J /'IfY_..i..L(�,,;li T-`z. :.G :v` ''�-G; �"'�J � �� ..>-T �✓/� c"-,- ^ �' �j/ � `j, �. -�s`� /'7' . J ��.c� ��f`fr`� ,----- /,� L� lL.c�K�-z �'G � � �/=�f ' l r��/' �z,✓i�"� G 1�,�,�'_ � /���C }� `i6' � �J:'-v ` - �: i'v' �;"L �� %`/ ,rl�L„ ��, .. i '/=.i' :!. ♦ `� ! } �-/ �(i7i { (' �. (.�.. �..� %f ti v'- v 'it L� 11 '� � � � � c:,� �, J�7 rC tiL-�i ! _. . �� i (�-�- i; .. L � � , � 1" /? 1�7` r✓ r � � ^ �{� /; C/ f�v' r� � �- � j 1�� �C' � -� �t � L o�` �{'r (,� �! " �_ �LG'I�...Ca _ : J' 1''^ t"`-' � i `7 1 ,S / � � % !�%" / �C� � /�'l� � �/,� ��. ^ / f� .._ - — � � , ��� � �(�;�.i �,���"�"`"`—'- u 5 3� � ,�f� " � . „a'1,'j 1=�= r l. 'I � , ��—' __ '� ��,�%/ j%? Y i- ��/% �� % -�,i/�• "% L .��17lilYlJL•-!i'- � � ��J � �/ �.li,��� 4 �1.� ^ � � � � t F ` � ! � CITY COUNCIL MEETING OF DECEMBER 11, 2000 CRY OF FRIDLEY The City of Fridley will not discriminate against or harass anyone in the admission or access to, or treatment, or employment in its services, programs, or activities because of race, color, creed, religion,_ + national origin, sex, disability, age, marital status, sexual orientation or status with regard to public • assistance. Upon request, accommodation will be provided to allow individuals with disabilities to participate in any of Fridley's services, programs, and activities. Hearing impaired persons who need an� interpreter or other persons with disabilities who require auxiliary aids should contact Roberta Collins at 572-3500 at least one week in advance. (TTD/572-3534) PLEDGE OF ALLEGIANCE. PRESENTATION: National Night Out Award APPROVAL OF PROPOSED CONSENT AGENDA: APPROVAL OF MINUTES: City Council Meeting of November 20, 2000 OLD BUSINESS: 1. Second Reading of an Ordinance to Amend the City Code of the City of Fridley, Minnesota, by Making a Change in Zoning Districts (ZOA #00-02, by East Ranch Estates, Generally Located at 7610 University Avenue N.E.) (Ward 1) ........................................... 1- 2 . � ► » ❑ FRIDLEY CITY_COUNCIL MEETING OF DECEMBER 11, 2000 PAGE 2 APPROVAL OF PROPOSED CONSENT AGENDA: NEW BUSINESS: 2. Approve Consulting Services Agreement Befinreen the City of Fridley and PlanSight, LLC ................................................... 3- 12 3. Resolution Amending the City Representative to the Six Cities Watershed Management Organization ............................ 13 - 14 4. Resolution Opposing the Concept of Allowing Further Proliferation of Liquor Sales from Dispensaries Other than Duly Authorized Off-Sale Liquor Stores ..................................................................... 15 - 16 5. Claims ............................................................................................. 17 6. Licenses .......................................................................................... 18 - 19 7. Estimates ........................................................................................ 20 r � FRIDLEY CITY COUNCIL MEETING OF DECEMBER 11. 2000 PAGE 3 ADOPTION OF AGENDA. OPEN FORUM, VISITORS: Consideration of items not on Agenda — 15 minutes. r � PUBLIC HEARINGS: 8. Consideration of the 2001 City of Fridley Budget ............................... 21 9. Consideration of the Local Law Enforcement BlockGrant ....................................................................................... 22 - 24 10. Consideration of Springbrook Creek Channelization Project No. 335 (Continued from November 20, 2000) ...................... 25 11. Resolution Creating Tax Increment Financing District No. 17 and Adopting the Tax Increment Financing Plan for the Gateway East Project ..................................... 26 - 45 . � FRIDLEY CITY COUNCIL MEETING OF DECEMBER 11, 2000 PAGE 4 NEW BUSINESS (CONTINUED): 12. Informal Status Report ....................................................................... 46 a4DJOURN. � / � GTY OF FRIDLEY '�e �-a'�;s �'� � CITY COUNCIL MEETING OF DECEMBER 11, 2000 The City of Fridley will not discriminate against or harass anyone in the admission or access to, or treatment, or employment in its services, programs, or activities because of race, color, creed, religion, national origin, sex, disability, age, marital status, sexual orientation or status with regazd to public assistance. Upon request, accommodation will be provided to allow individuals with disabilities to participate in any of Fridley's services, programs, and activities. Hearing impaired persons who need an interpreter or other persons with disabilities who require auxiliary aids should contact Roberta Collins at 572-3500 at least one week in advance. (TTD/572-3534) PLEDGE OF ALLEGIANCE. PRESENTATION: National Night Out Award ..,.t„ �°E_�� �� � i��"�� °�"� �`J0� �GtA►� n�.l��\G�`� %�.-.-` Z _5c��e�r v� Ca�'P �`�`Olci C� Y��4°�. (�l� ,�:.��. rvsQ°�^-%�-S %�'�� �ol.,�Aau,� ��!',ii�.1��a�:�`s �C't"' � APPROVAL OF PROPOSED CONSENT AGENDA: APPROVAL OF MINUTES: �� fs� �p��J� �� � City Council Meeting of November 20, 2000 OLD BUSINESS: 1. Second Reading of an Ordinance to Amend the ��.� �(� i1 / City Code of the City of Fridley, Minnesota, by `���0 Making a Change in Zoning Districts (ZOA #00-02, by East Ranch Estates, Generally Located at 7610 University Avenue N.E.) (Ward 1) - ........................................... 1 ,� `� (' `� ' FRIDLEY CITY COUNCIL MEETING OF DECEMBER APPROVAL OF PROPOSED CONSENT AGENDA: NEW BUSINESS: 2000 2. Approve Consulting Services Agreement Befinreen the City of Fridley and PlanSight, LLC ................................................... 3- 12 �� 3. Resolution Amending the City Representative to the Six Cities Watershed Management Organization ............................ 13 - 14 1 a`�4. Resolutio Opposing the Concept of Allowing Further Proliferation of Liquor Sales from Dispensaries Other than Duly Authorized Off-Sale Liquor Stores ..................................................................... 15 - 16 5. Claims ............................................................................................. 17 6. Licenses _ .......................................................................................... 18 19 7. Estimates ........................................................................................ 20 PAGE 2 � • . z �_ _ FRIDLEY CITY COUNCIL MEETING OF DECEMBER 11, 2000 PAGE 3 ADOPTION OF AGENDA. ��/(��� a�� t�v� �� �� OPEN FORUM, VISITORS: Consideration of items not on Agenda — 15 minutes. �U �'✓� � 15��� :,, �� (= � �1��� PUBLIC HEARINGS: 8. Consideration of the b 00�1 C� Qf Fridley Budget ............................... 21 Q,� ��,�j � ���� � �,d P��� ��'i� ���� 9. Consideration of the Local Law Enforcement BlockGrant ................................... ................................................... 22 - 24 `R-� ���� o �� ��12�'�5� �-�j� �� ��o�- �:1� �� 10. Consideration of Springbrook Creek Channelization Project No. 335 (Continued from November 20, 2000) ...................... 25 i� l I'� ��v �- �-� a�l�- �'S% � � � Rl� � � �+��c �� ���'� �.- �e �Q� �S� NEW BUSINESS: � ,�� (-�°�g � �� i d� � ��"�t � �.. � ��� 11. Resolution Creating Tax Increment Financing �`" G��� ��� c*-� District No. 17 and Adopting the Tax Increment ��.� Financing Plan for the Gateway East Project ....� ......................... 26 - 45� �`,��� ��- ri`,° � ��� � -'-a �I� J' � ��� � J� � ai% �,b(�= .� ,� � �a � ��, �,l �`� � �: ��. � � l r-� � � �—� �� ��,��',�,� � ��� �� � � �.�1� ��6��� {� q� � _ N � , � � - � FRIDLEY CITY COUNCIL MEETING OF DECEMBER 11, 2000 PAGE 4 NEW BUSINESS (CONTINUED): 12. Informal Status Report ....................................................................... 46 ADJOURN. � , �� 1 � THE MINUTES OF THE FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 20, 2000 : THE MINUTES OF THE REGULAR MEETING OF THE FRIDLEY CITY COUNCIL OF NOVEMBER 20, 2000 The Regular Meeting of the Fridley City Council was called to order by Mayar Jorgenson at 7:30 p.m. PLEDGE OF ALLEGIANCE: Mayor Jorgenson led the Council and audience in the Pledge of Allegiance to the Flag. ROLL CALL: MEMBERS PRESENT: Mayor Jorgenson, Councilmember Barnette, Councilmember Billings, Councilmember Wolfe, and Councilmember Bolkcom MEMBERS ABSENT: None STATEMENT OF MEETING CONDUCT: Please be reminded that those present at today's meeting may hold a variety of views and opinions regarding the business to be conducted. The exercise of democracy through representative local government requires that ALL points of view be accommodated at these proceedings. It is fi.irther expected that a standard of mutual courtesy and respectfulness be exercised by all in attendance, through our individual expression, manner of speaking, and conduct. Therefore, please receive the views of others with the same degree of courtesy and respect which you desire to be given your vie�s and opinions. Any departures from this standard will be addressed by the Presiding Officer through whatever means are deemed appropriate. Thank you for your attendance at today's meeting, and your agreement to abide by these standards of personal conduct. APPROVAL OF PROPOSED CONSENT AGENDA: MOTION by Councilmember Barnette to approve the proposed consent agenda. Seconded by Councilmember Wolfe. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR JORGENSON DECLARED THE MOTION CARRIED UNANIMOUSLY. APPROVAL OF MINUTES: City Council Meetin� of November 6, 2000 APPROVED �ecial City Council Meetin� of November 13, 2000 APPROVED FRIDLEY CITY COUNCIL MEETING MINUTES OF NOVEMBER 20, 2000 PAGE 2 NEW BUSINESS: RECEIVE THE MINUTES FROM THE PLANNING COMMISSION MEETING OF NOVEMBER 1, 2000: RECEIVED THE PLANNING COMMISSION MINUTES. 2. RESOLUTION No. 105-2000 APPROVING A LOT SPLIT, LS #00-05, BY IRENE AND DAVID VASECKA, TO SPLIT PROPERTY FOR THE PURPOSE OF CREATING TWO LOTS TO ALLOW CONSTRUCTION OF SINGLE FAMILY HOMES, GENERALLY LOCATED AT 5427 FOURTH STREET N.E. (WARD 3): Mr. Burns, City Manager, stated that the lot split would allow the owners to construct a single-family dwelling and a triplex on two newly created lots that meet all zoning requirements. The Planning Commission granted their unanimous approval to the request at their meeting on November l, 2000. Staff recommended Council's approval. ADOPTED RESOLUTION NO. 105-2000. 3. RESOLUTION NO. 106-2000 AUTHORIZING AND DIRECTING THE SPLITTING OF SPECIAL ASSESSMENTS FOR THE NORTH CENTRAL BUSINESS PARK: Mr. Burns, City Manager, stated that in September, Council approved the splitting of Lot 1 of the Northco Business Park. This action would split utility and street assessments for these parcels. Staff recommended Council's approval. ADOPTED RESOLUTION NO. 106-2000. 4. RESOLUTION NO. 107-2000 APPROVING ADDENDUM NO. 1 TO THE ANOKA COUNTY JOINT LAW ENFORCEMENT COUNCIL AGREEMENT: Mr. Burns, City Manager, stated that Fridley is a participant in the Joint Law Enforcement Council, a countywide organization that is set up to deal with countywide law enforcement services. Its responsibilities include central dispatching, central record keeping, overseeing the County's Criminal Investigation Division (homicides and criminal sexual conduct), and overseeing countywide training. This resolution adds the cities of St. Francis and Centerville to the council and adjusts the manner in which the County's four representatives of the 26 member council are selected. Staff recommended Council's approval. ADOPTED RESOLUTION NO. 107-2000. 5. ESTABLISH A PUBLIC HEARING FOR DECEMBER 11, 2000, FOR THE LOCAL LAW ENFORCEMENT BLOCK GRANT: Mr. Burns, City Manager, stated that Fridley has been selected to receive $22,734 in Local Law Enforcement Block Grant money. This requires a local match of $2,526. FRIDLEY CITY COUNCIL MEETING MINUTES OF NOVEMBER 20, 2000 PAGE 3 Under terms of the grant, the City is required to assemble an advisory board to assist in identifying the use of the funds. This board consists of a representative of the City Prosecutor's Office, the Principal of the Fridley Middle School, a representative of the Anoka County Courts, and a representative of the Block Captain's Advisory Board. The City solicited input from this group which approved the list of items. The City proposed to hold the required public hearing on the use of the Block Grant money for these purposes on December 1 l, 2000. Staff recommended Council's approval. ESTABLISHED A PUBLIC HEARING FOR DECEMBER 11, 2000, FOR THE LOCAL LAW ENFORCEMENT BLOCK GRANT. Mayor Jorgenson stated that the grant expenditures include squad rifles in the amount of $3,000, laser sights in the amount of $7,548, Taser electronic incapacitation device in the amount of $6,200, plastic squad back seat in the amount of $4,000, crime view mapping program in the amount of $3,000, and traffic squad in the amount of $1,200. 6. APPOINTMENT: CITY EMPLOYEE: Mr. Burns, City Manager, stated that staff recommended the appointment of Jeffrey Allyn Guest to the Police Officer vacancy created by the resignation of Officer Andrew Johnson. Mr. Guest grew up in Crystal, Minnesota and graduated from Armstrong High School. He also holds a BS Degree from the University of Wisconsin at River Falls in Political Science and Business Administration. He has also attended Metro State University where he completed the skills course in law enforcement. He spent ten years in the Army Reserve where he achieved the rank of 15` Lieutenant. He was previously employed at North Star Marketing for ten years where he sold medical insurance. Mr. Burns stated that staff also recommended the appointment of Burt F. Dahlquist to the position of Lead Liquor Store Clerk. Jane Oster, who was recently promoted to another position in the Finance Department, vacated this position. Mr. Dahlquist is a thirty year resident of Fridley and has spent fourteen years as Director of Corporate Financial Policies at Control Data Corporation. After his retirement from Control Data, Mr. Dahlquist owned and operated his own on-and-off sale liquor operation. He has also worked in clubhouse operations at Cuyuna Country Club in Deerwood, Minnesota. Staff recommended Council's approval. APPOINTED JEFFREY ALLYN GUEST AS POLICE OFFICER. APPOINTED BURTON. F. DAHLQUIST AS LEAD LIQUOR STORE CLERK. 7. CLAIMS: APPROVED CLAIM NOS. 96349 THROUGH 96738. 8. LICENSES: APPROVED ALL LICENSES AS SUBMITTED. FRIDLEY CITY COUNCIL MEETING MINUTES OF NOVEMBER 20. 2000 PAGE 4 9. ESTIMATES: APPROVED ESTIMATES AS FOLLOWS: Julian M. Johnson Construction Corp. 6190 Industry Avenue N.W. Anoka, MN 55303 Heather Hills Watermain Looping Project No. 331 FINAL ESTIMATE: $11,282.00 ADOPTION OF AGENDA: MOTION by Councilmember Bolkcom to adopt the agenda. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR JORGENSON DECLARED THE MOTION CARRIED UNANIMOUSLY. OPEN FORUM,VISITORS: No persons in the audience spoke. 10. CONSIDERATION OF MOORE LAKE HILLS NEIGHBORHOOD STREET IMPROVEMENT PROJECT NO. ST. 2001-1: MOTION by Councilmember Wolfe to open the public hearing. Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR JORGENSON DECLARED THE MOTION CARRIED AND THE PUBLIC HEARING WAS OPENED AT 7:40 P.M. Mr. Jon Haukaas, Public Works Director, stated that the streets involved in ST #2000-1 in the Moore Lake Hills neighborhood include Woody Lane, Gardena Lane, Hillcrest Drive, and Tennison Drive. The improvements to be completed include reconstruction of the street base, installation of concrete; curb, and gutter, repaving, replacement of the water mains and services to property lines, repairs and upgrades to the storm and sanitary sewers as necessary and restoration of the driveways and boulevards. A neighborhood meeting was held on October 18, 2000, to explain the project and to answer questions. As a result, a new petition drive was conducted by the residents in the area. Mr. Haukaas stated that the petition had signatures from 76 residents representing 67 of the 117 affected properties in favor of the petition. There are eight letters in support of the project that have been received by Council. The petition includes 24 signatures of properties that had signed the previous petition against the project but have since changed their mind. MOTION by Councilmember Barnette to receive the petition. Seconded by Councilmember Bolkcom. FRIDLEY CITY COUNCIL MEETING MINUTES OF NOVEMBER 20, 2000 PAGE 5 UPON A VOICE VOTE, ALL VOTING AYE, MAYOR JORGENSON DECLARED THE MOTION CARRIED UNANIMOUSLY. MOTION by Councilmember Barnette to receive the eight letters. Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR JORGENSON DECLARED THE MOTION CARRIED UNANIMOUSLY. Councilmember Barnette asked Mr. Haukaas to read the numbers representing those who voted "yes" in favor of the project, and those who voted "no" against the project. Mr. Haukaas stated that the net result after all the petitions were in, with 117 affected properties, 67 were "yes" votes, and 39 "no" votes. Eleven properties had not indicated one way or the other. Councilmember Bolkcom asked if the eight letters were included in the 67 "yes" votes. Mr. Haukaas stated that was correct. The people who sent those letters were prior to the petition and have since also signed the petition. Councilmember Wolfe stated that he was impressed with all the neighbors who were involved in this process. It was nice to see how the system works. He thought both sides did a great job in getting involved. Mayor Jorgenson stated that the Council is not sure how the new "Vote yes" amendment is going to impact this project. This amendment talks about discretionary spending and assessments against properties could be classified as discretionary and may require a vote in the 2002 election. Mr. Ray MacAfee, 1360 Hillcrest Drive, stated that he was the person who carried the petition not supporting the project. He does not mind having people change their mind. He did not misrepresent the petition, and told people that this was his opinion. Some of the people do not have an address that faces into any of the affected axeas of Hillcrest and Woody Lane. He wondered what was said to people to change their mind. It bothered him when he saw bikeways and sidewalks included in the construction. This advertisement appeared in all three editions of Focus News. He felt that the streets and curbings do not need fixing. He appreciates the people who supported the project and believed people have been misrepresented what the project will be. Mayor Jorgenson asked Mr. Haukaas to clarify about the advertisement in Focus News. Mr. Haukaas stated that the advertisements were put together early before a project is fully developed. Mayor Jorgenson asked Mr. Haukaas if they send a new advertisement to Focus News each time they are listed. FRIDLEY CITY COUNCIL MEETING MINUTES OF NOVEMBER 20, 2000 PAGE 6 Mr. Haukaas stated that they send a new one each time. Mayor Jorgenson stated that this causes confusion and in the future, the language could be a little more specific to the project. Councilmember Bolkcom asked Mr. Haukaas if there were any plans for a bikeway or sidewalk. Mr. Haukaas stated that there were not in this project. MOTION by Councilmember Barnette to close the public hearing. Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR JORGENSON DECLARED THE MOTION CARRIED AND THE PUBLIC HEARING WAS CLOSED AT 7:50 P.M. 11. CONSIDERATION SPRINGBROOK CREEK CHANNELIZATON PROJECT NO. 335: MOTION by Councilmember Bolkcom to open the public hearing. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR JORGENSON DECLARED THE MOTION CARRIED AND THE PUBLIC HEARING WAS OPENED AT 7:50 P.M. Mr. Haukaas stated that this project area is approximately 300 feet of creek between Ironton and Hugo Streets. The project was brought to Council as a result of a petition by the residents on Ironton Street concerning the erosion and high water levels of Springbrook Creek during spring runoff and after heavy rainfalls. Staff presented several options to the people and recently had a new option presented from the conservation district that included some partial funding support. As a result of these developments, a neighborhood meeting will be held November 28 to discuss all four options before proceeding with the project. Mayor Jorgenson stated that for the record, a motion is in order to open the public hearing and to table this until December 1 l, 2000. Councilmember Bolkcom stated that there were two letters sent to the neighborhood about the public hearing and the meeting for November 28 letting them know that is the plan this evening. The gentleman from the conservation district could not be here tonight to answer any questions but will be at the meeting on November 28. Mayor Jorgenson stated that the Anoka County Conservation District is looking at straightening out the creek and adding a little bit of a flood plain. There would also be some funding available from the Anoka County Conservation District for fifty percent funding from them. The other fifty percent funding would then be needed from the residents. Mr. Haukaas stated that the conservation district could put up to fifty percent of the project cost, but they require 25 percent from the residents directly. The meeting on November 28 will be held at the Municipal Center in Conference Room A adjacent to Council Chambers at 7:00 p.m. FRIDLEY CITY COUNCIL MEETING MINUTES OF NOVEMBER 20. 2000 PAGE 7 MOTION by Councilmember Bolkcom to continue the public hearing. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR JORGENSON DECLARED THE MOTION CARRIED AND THE PUBLIC HEARING WILL BE CONTINUED ON DECEMBER 11, 2000 AT THE REGULAR CITY COUNCIL MEETING. 12. CONSIDERATION OF AN ORDINANCE CONCERNING MANUFACTURED HOME PARKS AND REQUIRING OWNERS TO PAY RELOCATION EXPENSES TO DISPLACED RESIDENTS UPON PARK CLOSURE (WARD ?): MOTION by Councilmember Barnette to open the public hearing and waive the reading. Seconded by Councilmember Wolfe. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR JORGENSON DECLARED THE PUBLIC HEARING WAS OPENED AT 7:55 P.M. Mr. Grant Fernelius, HRA Housing Coordinator, stated that this is a public hearing only, no action is needed. Some changes need to be made to the current version of the ordinance. The first reading would be scheduled on December 18 with the second and final reading on January 8, 2000. In March, 2000, a petition was received by the City from residents of two mobile home parks along Highway 65. The petition was asking the City to consider adopting an ordinance requiring the park owner to provide relocation assistance in the event that the park was ever closed. The park purchaser or developer would also be required to pay compensation to those homeowners who could not move their home, or who chose not to. The adoption of this ordinance is authorized under state law. Similar ordinances have also been adopted in ten other metropolitan communities. Mr. Fernelius stated that the intent of this ordinance is to ensure that the minimum level of compensation would be provided to residents in the event that there ever is a park closure. This ordinance applies to closure of the whole park as well as a portion of it. Mobile home park owners are in a unique position owning the home but renting the land the home is located on. There is equity in the unit, but not the land. When the park closes they are faced with the difficulty and expense of finding a new spot or moving the home. Most of the units are older and probably would not be accepted in a new park. Many of the owners would be faced with the situation of losing their home and the investment in it. This ordinance attempts to provide them with some financial help. What triggers this ordinance is closure of conversion of the park. Some of this information is prescribed by State law. The owner is required to provide a nine � month notice sent to all residents affected by the closure as well as the City. The City is required to conduct a public hearing to review the impact the closure would have. The ordinance would , require the owner to pay reasonable relocation costs to the tenants that would be displaced by the closure. People who own the home and rent the lot would have two choices. They could receive relocation assistance to move to another park within 25 miles or receive compensation. Renters of the home and the lot would be entitled to relocation assistance. Reasonable cost would include relocating to within a 25 mile radius of the park, preparation for the move, transportation, hook-up with the new site, decks porches, skirting, etc. The second option is compensation. If the homeowner is displaced they would turn over their title to the park purchaser who would pay them for the value. The amount they would be paid would be equal to the assessed value or a FRIDLEY CITY COUNCIL MEETING MINUTES OF NOVEMBER 20, 2000 PAGE 8 third party appraisal. The park purchaser would be responsible for paying for the third party's appraisal. Mr. Fernelius stated that this creates certainty for folks who live in mobile home parks. It provides financial assistance to them and outlines the process for park owners and residents in the future. This does add cost for paying for the relocation or purchasing the title. It sets the expectation from developers as well as the park owner that they may be obligated to assist in paying some of these costs. This is a draft and timing issues need to be ironed out. Public input ' will need to be evaluated and revisions were not made to the draft. � Councilmember Barnette stated that there are no plans or discussions of any imminent sales or closures of any of the mobile home parks currently in Fridley. Mr. Fernelius stated that was correct. Councilmember Barnette stated that this ordinance is an effort on the part of the City to be proactive to support the owners of the park and the owners of the mobile homes. Mr. Fernelius stated that proper credit needs to be given to the residents who initiated this petition back in March. Councilmember Barnette stated that he thought it was a nice reaction that staff gave to this at the request of the membership of one of the paxks. Councilmember Bolkcom asked Mr. Fernelius what letter was referred to. Mr. Fernelius stated that a letter from Ms. Traci Tomas, the manager of Park Plaza Estates, LLP, was a cover letter for the revised version of the ordinance. MOTION by Councilmember Bolkcom to receive the letter. Seconded by Councilmember Wolfe. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR JORGENSON DECLARED THE MOTION CARRIED UNANIMOUSLY. , Councilmember Bolkcom asked if a meeting had taken place with Ms. Tomas. Ms. Dacy stated that they have not yet due to everyone's schedules. They did want to review the r proposed suggestions with the City Attorney first also. Mayor Jorgenson stated that there is no project at this time that would require removal of any mobile home parks. Ms. Dacy stated that was correct. Ms. Tomas, Administrator of Park Plaza Estates, LLP, stated that in her letter she submitted some basic changes to the draft of the ordinance. The park has no plans of closing. The owners are in support of the park closing ordinance. It provides structure for everybody involved. The - FRIDLEY CITY COUNCIL MEETING MINUTES OF NOVEMBER 20. 2000 PAGE 9 Minnesota Manufactured Housing Association and the All Parks Alliance are working together to come up with a recommendation that they submitted to State Legislature so that there is a statewide ordinance governing park closures throughout the state. One of the key points that needed change in the ordinance was the part about the renter. Park Plaza Estates has no rental units and they have no problem paying an owner that will be displaced. The requirement for the residents to submit a verifiable cost estimate is vague. Mr. Dale Starmark???, 1009 South Circle, stated that he wishes that the radius could be 200 miles because many parks do not accept old trailers. When the park is sold, residents have an - opportunity to buy within 45 days. It is not right that renters have up to sixty days. Mr. Brian Martin, Attorney for Fridley Terrace Mobile Home Park, stated that the park has no present intention of closing. The park welcomes the ordinance to give some certainties. A point of the ordinance he would like to make has to do with the confusion of owners and renters. He would like to see the owners receive the compensation. The definition of park owner is confusing. The statement that the owner should pay reasonable cost causes confusion also and opens a door to not specifically defining the terms. In Subdivision 1 l, he did not see any reason for establishing any criminal penalties in a civil matter. Mayor Jorgenson stated that depending on how far the mobile home would have to be moved, the cost could be large or small. She asked how an average cost could be arrived at. Mr. Martin stated that it could be determined on a mileage basis. Mr. Chris Schultz, 1119 Onandaga Street, asked why they could not buy their own land to move their home to. He did not think there would be enough parks to move to. In Subdivision 10, Section 3, he thought that it was not right for the houses to not be eligible to be moved, it is not right to be denied their right to find a place to move to. He asked if every mobile home owner receive a certain dollar amount where the park owners could pay the differential. This should include people who sell and move to anywhere. Mayor Jorgenson stated that if they were going to look at that for an option, she would like to see some wording explaining this. Mr. Schultz stated he would bring it to the next meeting. Ms. Jerri Lynne, 7303 Taylor Street, stated that revisions addressed by residents of Fridley M Terrace and Park Plaza Estates are that the discrepancy of reimbursement of personal property to owners and renters be resolved. The consideration could be changed to include personal expenses such as transportation of the displaced person and personal property, expenses for ' packing, crating, unpacking, and uncrating of the personal property, disconnecting, dismantling, removing, reassembling, reinstalling, relocating household appliances, and other personal property, storage of personal property for a period not to exceed twelve months, the cost of insurance for the replacement value for the property being moved. The amount received by the mobile home park owners if a park closes may not be sufficient to cover the cost because supply and demand factors are resulted in premiums adding to the selling price of used manufactured homes in the areas. She said the residents are asking that the issue of differential expenses for renters and owners be reviewed. Subdivision 6 is suggested to be eliminated because it may be a FRIDLEY CITY COUNCIL MEETING MINUTES OF NOVEMBER 20, 2000 PAGE 10 violation of the nine-month park closure notification. The possibility that the inclusion of this language may result in a legal battle is real. MOTION by Councilmember Barnette to receive the letter from Jerri Lynn. Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR JORGENSON DECLARED THE MOTION CARRIED UNANIVIOUSLY. Councilmember Billings stated that in Subdivision 7, it says that within ninety days of a closure statement, a displaced resident should provide the owner with a written statement of the relocation costs. Subdivision 3 says that the closure statement goes out nine months before the close. That means that within the first three months the resident has to put together all of their costs. He asked how it fit with Subdivision 6. It sounds like the people have from nine months to six months to get all of this done. Ms. Dacy stated that is a timing issue and conflict in the process that the City would like additional time to address. Mr. Fernelius stated that is the language they need to clear up with all the affected parties. Mayor Jorgenson stated that it has been suggested that clarification is needed for who is responsible for costs associated with this and not actually the manager of the mobile home park. Councilmember Bolkcom asked what the next process was. Ms. Dacy, Community Development Director, stated that she and Mr. Fernelius need to meet with Mr. Knaak to discuss some of the issues from the City's perspective. Once they do that, staff will contact the people that had testified tonight to go through the issues one by one. She said staff will do this prior to the first reading on December 18. Councilmember Bolkcom asked if December 18 was realistic with the holidays. Ms. Lynn stated that it may be rushing this a litte. Ms. Dacy stated that a meeting could be postponed until after the holidays. Councilmember Billings stated that a purpose of this ordinance is to strike a balance between the park owners who own the land and the mobile home owner upon sale. This means a reasonable " outcome is needed. Both sides understand that this ordinance is designed to become a panacea for someone that happens to own a mobile home. This is an additional cost being placed by the � City on the underlying land owner. This lies in the face of the Charter Amendment and this needs to go to the voters of 2002. Mr. Knaak, City Attorney, stated that he is in the process of putting together a list of potential charges that could be construed as discretionary. He was not able to say if this is, but he is analyzing the information. It is possible that it would apply here. FRIDLEY CITY COUNCIL MEETING MINUTES OF NOVEMBER 20, 2000 PAGE 11 Mayor Jorgenson asked if there was a definition in the Charter or the Minnesota State Statute that constitutes what is discretionary. Mr. Knaak stated that there is no single source to give a clear definition. Mayor Jorgenson asked if it would be prudent to come up with a definition of discretionary for the Charter. Mr. Knaak stated that he agrees. Councilmember Barnette stated that there is no urgency on this and he feels that it would be acceptable to continue this in January. MOTION by Councilmember Barnette to close the public hearing. Seconded by Councilmember Wolfe. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR JORGENSON DECLARED THE MOTION CARRIED AND THE PUBLIC HEARING WAS CLOSED AT 8:59 P.M. Mayor Jorgenson stated that this would be taken up at the January 8, 2001, City Council meeting. 13. CONSIDERATION OF A REZONING, ZOA #00-02, BY EAST RANCH ESTATES TO REZONE PROPERTY FROM C-3, GENERAL SHOPPING, TO C- 2 GENERAL BUSINESS GENERALLY LOCATED AT THE NORTHWEST CORNER OF UNIVERSITY AVENUE AND OSBORNE ROAD N.E. (WARD 3): MOTION by Councilmember Wolfe to open the public hearing. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR JORGENSON DECLARED THE MOTION CARRIED AND THE PUBLIC HEARING WAS OPENED AT 9:00 P.M. Ms. Dacy. Community Development Director, stated that because this item also relates to the variance request, she was going to summarize both issues at once. The request is by East Ranch Estates to rezone a parcel at the corner of University Avenue and Osborne Road from C-3 to C-2 in order to construct a new 4,595 square foot commercial building. The petitioner is also requesting a couple of setback variances to the C-2 requirements. This is the former site of the University Station restaurant. The parcel is one of 19 loop-back parcels in Fridley created by the intersection of the frontage road along State TH 47 or State TH 65. The intent of the C-2, General Commercial, better fits this particular lot. The two setback requirements had to do with the side yard setback of 35 feet for the principal building and then a parking area setback from 20 feet to five feet along the University Avenue right-of-way. The driveway location will remain in place. The building is going to have a different alignment on the site. This site is surrounded on three sides by three right-of-ways and also contains a 60-foot wide St. Paul Waterworks easement along Osborne Road. The buildable area is restricted. FRIDLEY CITY COUNCIL MEETING MINUTES OF NOVEMBER 20, 2000 PAGE 12 Ms. Dacy stated that the proposed location was a result of a number of ineetings between the petitioner and staff. This is really the best location for the building on the site for that particular site. One of the tenants will more than likely have a drive-through window. The sixty-foot easement takes a sizable parcel out of the lot. The driveways on the north side of the site will align with one another and it will be a one-way traffic pattern to the site. Staff recommendation on both requests was for approval subject to a number of stipulations: 1) The petitioner shall submit written verification that all tanks have been removed and all soil remediation completed; 2) All development over this easement area included: landscaping, driveways, parking surfaces, architectural features, etc. must approved by appropriate St. Paul Waterworks personnel prior to commencement of construction; 3) Appropriate signage and pavement striping shall be provided on site to eliminate conflicts for motorists entering and exiting the site; 4) Additional cosmetic enhancements shall be made to the rear of the building so that it does not appear as a rear of the building that has a prominent position along the service drive. Enhancements to be reviewed and approved by staff, prior to issuance of the building permit; 5) All building doors must meet all applicable building codes; and 6) In the event that the bikeway/walkways are plowed, the petitioner shall manage the snow storage on site or have it removed as necessary. Ms. Dacy stated that the Planning Commission recommended approval with stipulations. Councilmember Billings asked if Stipulation No. 2 should say "All development over the St. Paul Waterworks Easement." This easement was referenced to something that has already been identified. Ms. Dacy stated that was correct. Councilmember Billings asked if the site plan has parking over the St. Paul Waterworks easement. Ms. Dacy stated that was correct. Councilmember Billings asked if the developer is aware of the types of materials that need to be used over the easement. Ms. Dacy stated that he did. Mr. Bob Schroer, East Ranch Estates, stated that he was present to answer any questions. He thought Council and the City Manager have done quite a good job in working with them over the last five years. Councilmember Bolkcom stated that she would like the snow removal stipulation to be changed to read: "The petitioner shall manage the snow removal on-site or have it removed as necessary." She said the City does not allow any storage of snow on the walkways/bikeways even though the City does not plow them. She felt it was reasonable to change so that the City is treating everyone similarly. Mr. Haukaas stated that was a correct interpretation of the snow removal process. FRIDLEY CITY COUNCIL MEETING MINUTES OF NOVEMBER 20, 2000 PAGE 13 Mr. Schroer stated that it bothered him that he would have to go to the expense of removing it when it is not necessary. He is paying taxes on the land anyway. In 1983, when they paved the bikeway/walkway it was agreed upon by Council that the previous owner could use that area for snow storage. It is just another added expense. Mayor Jorgenson stated that there was an ordinance change last yeaz prohibiting anyone from storing snow on their neighbors property or City property. A number of folks were pushing their snow across the City roadway into the right-of-way and there were huge tunnels of snow across the roads. Perhaps an agreement could be worked out with Mr. Schroer because he is not going to be pushing it across a City road. Councilmember Wolfe stated that until the City starts plowing the bikeway, it is not an issue. Mr. Schroer stated that he agreed. Mayor Jorgenson stated that they have to treat all citizens the same in this matter. Councilmember Wolfe stated that it may not be the same situation for everybody. He asked if the City would actually cite someone for the same situation. Councilmember Bolkcom stated that when this was originally passed, it was to take care of the contractor that pushed the snow into the street or the next door neighbor's property. Mayor Jorgenson asked Mr. Haukaas if the City has had to cite anyone for a situation like this. Mr. Haukaas stated that there were not that he was aware of. It was mainly for contractors pushing the snow into the street. Councilmember Wolfe stated that it is against the law to snowblow the snow out into the street. Councilmember Barnette asked if there was a gas station there. Mr. Schroer stated that there was in 1960. It was a Shell station. Councilmember Barnette asked if that station had to remove the tanks when they moved out, and if the City has a record of that. Mr. Schroer stated that they know the tanks are out. There was a fuel oil tank to heat the premises, and the previous owner does not recall if he took the tank out. A record could not be found it. The EPA tests could not find anything either. Mayor Jorgenson stated that she thinks that it will be a real beautification project. Mr. Schroer stated that with all the stipulations they have, they would like to see something happen with the lights at the corner like the City has done with the other locations in Fridley. That would be an asset to the corner and the other asset is to redo the University Avenue fence. His realtor, Jon Nelson, and his architect, Dan O'Brian, have discussed the fence a little bit, and they both agree that the fence is a detriment to Fridley as we are trying to beautify and increase FRIDLEY CITY COUNCIL MEETING MINUTES OF NOVEMBER 20, 2000 PAGE 14 the values of the properties. The City wants people to improve properties but that fence has never been improved. There are other concerns about University Avenue also. Mayor Jorgenson stated that the residents adjacent to the fence do not want it removed because of the safety issues. It was a question in the citizen survey done a few years ago, and it was voted to stay. Councilmember Bolkcom stated that they should wait to see what happens with Gateway East. Hopefully, this will spur the issue to be looked at again. Council has looked at the lights on Osborne Road before. If the businesses want to come on board and be a part of the committee, that would be fine. Mr. Schroer asked if all the other businesses in the other areas where lights were added agreed to have it assessed to their properties. Councilmember Bolkcom stated that they did not. It was a street reconstruction project. Not all the businesses on Osborne Road are retail type businesses, but it does not mean that Council cannot look at it again. Mr. Schroer stated that the fence is getting older and worse looking. Councilmember Barnette asked when he would anticipate demolition of the building and when he would start construction. Mr. Schroer stated that if approval comes tonight, the building would probably be torn down next week. After that, construction would probably start in six months. Councilmember Barnette asked Mr. Schroer if any antiques were inside the building for sale. Mr. Schroer stated that the former owner had legal rights to everything that was in the building. He removed everything. The interior is trashed. Councilmember Bolkcom asked if he was at liberty to say what shops would be in the building. Mr. Nelson stated that he is leasing the building and helping with the project. As of this moment, there are no leases signed so he cannot say who they are. If one signs, the City would be very happy with them. Mayor Jorgenson asked if she might be able to buy a cup of coffee there someday. Mr. Nelson stated that was right. MOTION by Councilmember Bolkcom to close the public hearing. Seconded by Councilmember Wolfe. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR JORGENSON DECLARED THE MOTION CARRIED AND THE PUBLIC HEARING WAS CLOSED AT 9:15 P.M. FRIDLEY CITY COUNCIL MEETING MINUTES OF NOVEMBER 20, 2000 PAGE 15 14. FIRST READING OF AN ORDINANCE TO AMEND THE CITY CODE OF THE CITY OF FRIDLEY, MINNESOTA, BY MAKING A CHANGE IN ZONING DISTRICTS (REZONING, ZOA #00-02, BY EAST RANCH ESTATESI �WARD 3): MOTION by Councilmember Bolkcom to approve the first reading of the Ordinance ZOA #00-02 with the six stipulations: 1) The petitioner shall submit written verification that all tanks have been removed and all soil remediation completed; 2) All development over this easement area included: landscaping, driveways, parking surfaces, architectural features, etc. must approved by appropriate St. Paul Waterworks personnel prior to commencement of construction; 3) Appropriate signage and pavement striping shall be provided on site to eliminate conflicts for motorists entering and exiting the site; 4) Additional cosmetic enhancements shall be made to the rear of the building so that it does not appear as a rear of the building that has a prominent position along the service drive. Enhancements to be reviewed and approved by staff, prior to issuance of the building permit; 5) All building doors must meet all applicable building codes; and 6) In the event that the bikeway/walkways are plowed, the petitioner shall manage the snow storage on site or have it removed as necessary. Seconded by Councilmernber Billings. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR JORGENSON DECLARED THE MOTION CARRIED UNANIMOUSLY. MOTION by Councilmember Bolkcom to amend Stipulation Nos.. 2 and 6 to read: 2) "All development over the St. Paul Waterworks easement area included: landscaping, driveways, parking surfaces, architectural features, etc. must be approved by appropriate St. Paul Waterworks personnel prior to commencement of construction." 6) "n the event that the bikeway/walkways are plowed, the petitioner shall manage the snow storage on site or have it removed as necessary." Seconded by Councilmember Billings. UPON A VOICE VOTE, ALL VOTING AYE, NTAYOR JORGENSON DECLARED THE MOTION CARRIED UNANIMOUSLY. 15. VARIANCE REQUEST, VAR #00-30, BY EAST RANCH ESTATES TO REDUCE THE SIDE YARD SETBACK FOR A PROPOSED BUILDING AND PARKING AREA: MOTION by Councilmember Bolkcom to approve the Variance Request, VAR #00-30 with the ' seven stipulations as follows: 1) he petitioner shall submit written verification that all tanks have been removed and all soil remediation completed; 2) Approval of ZOA #00-02; 3) All � development over this easement area including landscaping, driveways, parking surfaces, architectural features, etc. must be approved by appropriate St. Paul Waterworks personnel prior to commencement of construction; 4) Appropriate signage and pavement striping shall be provided on site to eliminate conflicts for motorists entering and exiting the site; 5) Additional cosmetic enhancements shall be made to the rear of the building so that it does not appear as a rear of the building that has a prominent position along the service drive. Enhancements to be reviewed and approved by staff, prior to issuance of the building permit; 6) All building doors must meet all applicable Building Codes; and 7) In the event that the bikeway/walkways are FRIDLEY CITY COUNCIL MEETING MINUTES OF NOVEMBER 20, 2000 PAGE 16 plowed, the petitioner shall manage the snow storage on site or have it removed as necessary. Seconded by Councilmember Billings. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR JORGENSON DECLARED THE MOTION CARRIED UNANIMOUSLY. MOTION by Councilmember Bolkcom to amend Stipulation No. 3 to read: "All development over the St. Paul Waterworks easement area including landscaping, driveways, parking surfaces, architectural features, etc. must be approved by appropriate St. Paul Waterworks personnel prior to commencement of construction." Seconded by Councilmember Billings. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR JORGENSON DECLARED THE MOTION CARRIED UNANIMOUSLY. 16. INFORMAL STATUS REPORTS: Mr. Burns, City Manager, stated that two important public hearings were coming up. One is the Truth in Taxation hearing on the 2001 City of Fridley budget. The meeting would be on December 11 in the City Council Chambers at 7:30 p.m. The Northstar Corridor group is having a public hearing on the commuter rail Environmental Impact Statement on December 14 between 5:00 p.m. to 7:00 p.m. probably in Council Chambers. Councilmember Barnette asked if letters were being sent out to the people on Starlite Boulevard. Mr. Burns stated that they were going to be sent out. Councilmember Bolkcom stated that the letters should be sent out to everyone who attended the meetings. Ms. Dacy stated that was correct and they will. Councilmember Bolkcom stated that meeting for Springbrook Creek residents would be on November 28 for the five homes affected in the conference room at 7:00 p.m. If possible, could we also talk about the railroad crossing at 77`� Way. Mayor Jorgenson stated that was possible. Councilmember Wolfe stated that he wanted to congratulate Councilmember Barnette and Mr. Lund on their election to Councilmember-at-Large and the new Mayor. Mayor Jorgenson also congratulated them. ADJOURN: MOTION by Councilmember Barnette to adjourn the meeting. Seconded by Councilmember Wolfe. FRIDLEY CITY COUNCIL MEETING MINUTES OF NOVEMBER 20 2000 PAGE 17 UPON A VOICE VOTE, ALL VOTING AYE, MAYOR JORGENSON DECLARED THE NOVEMBER 20, 2000, CITY COUNCIL MEETING ADJOURNED AT 9:21 P.M. Respectfully submitted, Signe L. Johnson Nancy J. Jorgenson Recording Secretary Mayor � AGENDA ITEM � CITY COUNCIL MEETING OF DECEMBER 11, 2000 cmr oF FRIDLEY Date: 12/06/00 To: William Burns, City Manager �� ��i From:Barbara Dacy, Community Development Director Scott Hickok, Planning Coordinator Paul Bolin, Ptanner RE: Second Reading of ZOA #00-02 M-00-199 INTRODUCTION East Ranch Estates, petitioner, is seeking to rezone Lot 1, Block 2, 3rd Addition of East Ranch Estates, from C-3, General Shopping to C-2, General Business. This property is the "turn back" parcel generally located at the northwest corner of University Avenue and Osborne Road. PLANNING COMMISSION & CITY COUNCIL ACTION At the November 1, 2000, Planning Commission meeting, a public hearing was held for ZOA 00-02. After reviewing the proposal, a motion was made to recommend approval of the rezoning request subject to the six stipulations recommended by staff. The motion passed unanimously. The City Council held the first reading of this rezoning ordinance at their November 20, 2000, meeting. PLANNING STAFF RECOMMENDATION City staff recommends that the City Council hold the second reading of the ordinance to rezone the property. � ORDINANCE NO. ORDINANCE TO AMEND THE CITY CODE OF THE CITY OF FRIDLEY, MINNESOTA BY MAKING A CHANGE IN ZONING DISTRICTS SECTION 1. Appendix D of the City Code of Fridley is amended hereinafter indicated. SECTION 2. The tract or area within the County of Anoka and the City of Fridley and described as: Lot 1, Block 2 of the 3rd Addition of East Ranch Estates, as recorded at the office of the Anoka County Recorder, generally located at 7610 University Avenue. SECTION 3. That the Zoning Administrator is directed to change the official zoning map to show said tract or area to be rezoned from Zoned District C-3, General Shopping to C-2, General Business. PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS 11TM' DAY OF DECEMBER, 2000. ��1�� DEBRA A. SKOGEN - CITY CLERK Public Hearing: First Reading: Second Reading Publication: November 20, 2000 November 20, 2000 December 11, 2000 December 21, 2000 2 NANCY J. JORGENSON - MAYOR 0 .. � � . _-.--� � , � � CRY OF FRIDLEY ro: FROM: DATE: SUBJECT: AGENDA ITEM CITY COUNCIL MEETiNG OF DECEMBER 11, 2000 William W. Burns, Ci Mana er �� �Y g � Jon H. Ha�aas, Acting Public Works Director December 11, 2000 2001 TriCity GIS Contract PW00-145 Attached is the 2001 TriCity GIS contract with P1anSight LLC. The only change from last year is a three percent (3%) cost of living increase added to the contract. Recommend the City Council approve the contract with PlanSight LLC. Upon approval by the three involved City Councils, original contracts will be circulated for proper signature. JHH:cz Attachment 3 �.: CONSULTING SERVICES AGREEMENT This Contract is made and entered into between the Tri-City GIS Joint Powers - Organization, consisting of the Cities of Fridley, Columbia Heights and Andover, hereinafter "Tri-City" and PlanSight LLC., Suite 201, 3625 Talmage Circle, Vadnais Heights, Minnesota, 55110, hereinafter "Contractor". WHEREAS, Tri-City requires services to be provided for the staffing of a GIS Range Rider to provide GIS technical assistance to the Cities of Andover, Columbia Heights and Fridley; WHEREAS, Contractor desires to and is capable of providing the necessary services according to the terms and conditions stated herein; NOW, THEREFORE, in consideration of the mutual promises and agreements contained herein the parties agree as fotlows: 1. TF,RM fl�i � _•� � �_ The term of this Contract shall be from January 1, 2001 to and including December 31, 2001 unless earlier terminated . by law or according to the provisions of this Contract. 2, r(1NTR A f'T(1R' C(1RT .i(;' A TT(1NC • 2.1 Contractor shall provide the following services generally described as: 14 - � 2.2 Sixty-Six and Two-Thirds weeks (Person Hour Equivalents) of full time onsite GIS technical assistance to the communities of Fridley, Andover and Columbia Heishts. The services will be in the form of one or more GIS Range Riders that would spend approximately 82 hours per month per city in Andover and Fridley, respectively, and approximately 54 hours per month in the City of Columbia Heights over the course of the Contract. Services provided shall meet or exceed the tasks outtined in the Tri-City GIS Technical Assistance Request for Proposal set out in Ezhibit A which is attached hereto and incorporated herein by reference. � • �►�� . 3.1 Tuial_Cost. The total amount to be paid by Tri-City pursuant to this Contract shall be $67,499.34: (Andover-$25,406.67, Fridley-$25,406.67, Columbia Heights- $16,686.00) 3.2 In�cnices. Contractor shall, within fifteen (15) working days following the last day of each calendar month in which services were provided, submit an invoice and request for payment on an invoice form acceptable to Tri-City. This invoice shall itemize 1) the hours of services rendered listed by classification, 2) the date such . services were provided, 3) a general description of the services provided, 4) the 0 name of c(ient receiving services, 5) the amount and type of all reimbursable expenses being charged to the Contract, 6) the dates of the performance period covered by the invoice. 25 3.3 3.4 Tri-City shall make payment to Contractor within thirty-five (35) days of the date on which the invoice is received. If the invoice is incorrect, defective, or otherwise improper, Tri-City will notify Contractor within ten (10) days of receiving the incorrect invoice. Upon receiving the corrected invoice from Contractor, Tri-City will make payment within thirty-five (35) days. Tri-City may refuse to pay any claim which is not specifically aathorized by this Contract. Payment of a claim shall not preclude Tri-City from questioning the propriety of the claim. Tri-City reserves the right to offset any overpayment or disallowance of claim by reducing future payments. •►ll' :► .I Y. _ . _►11_' 1 4.1 �eneral. 4.2 Contractor shall abide by all Federal, State or local laws, statutes, ordinances, rules and regulations now in effect or hereinafter pertaining to this Contract or to the facilities, programs and staff for which Contractor is responsible. This Contract shall be governed by and construed in accordance with the substantive and procedural laws of the State of Minnesota, without giving effect to the principles of conflict of laws. All proceedings related to this Contract shall be venued in the State of Minnesota. ►11 ' ►11 ► • ► Y! _ • ' _ Y Contractor is an independent contractor and nothing herein contained shall be construed to create the relationship of employer and employee between Tri-City and Contractor. Contractor shall at all times be free to exercise initiative, judgment and 36 � � � � 0 discretion as to how to best perform or provide services. Contractor acknowledges and agrees that Contractor is not entitled to receive any of the benefits received by Tri-City employees and is not eligible for workers' or unemployment compensation benefits. Contractor acknowledges and agrees that no withholding or deduction for State or Federal income taxes, FICA, FUTA, or otherwise, will be made form the � payments due Contractor and that it is Contractor's sole obligation to comply with the 0 applicable provisions of all Federal and State tax laws. � i.0 u�.0 • . Any and all claims that arise or may arise on behalf of Contractor, its agents, servants or employees as a consequence of any act or omission on the part of Contractor or its agents, servants, employees while engaged in the performance of the Contract shall in no way be the obligation or responsibility of Tri-City. Contractor shall indemnify, hold harmless and defend Tri-City, its members, officers and employees against any and ali liability, loss, costs, damages, expenses, ciaims or actions, including attorneys' fees which Tri-City, its officers or employees may hereafter sustain, incur or be required to pay, arising out of or by reason of any negligent or willful act or omission of Contractor, its agents, servants or employees, in the execution, performance, or failure to adequately perform Contractor's obligations pursuant to this Contract. 1► 1! � . 7.1 �en�ns. In order to protect itself and to protect Tri-City under the indemnity provisions ' set forth above Contractor shall, at Contractor's expense, procure and maintain policies of insurance covering the term of this Contract, as set forth below. Such policies of insurance shall apply to the extent of, but not as a limitation upon or in satisfaction of, the indemnity provisions herein. All retentions and �I deductibies under such policies of insurance shall be paid by Contractor. Each such policy shall not be canceled by fhe issuing insurance company without at least ten (10) days written notice to Tri-City of intent to cancel. 7.2 ra�er.age. The policies of insurance to be obtained by Contractor pursuant to this section shall be purchased from a licensed carrier and shall include the following: A) Professional Liability (1) A professional liability insurance policy covering personnel of Contractor, if any, who provide professional services under this Contract, which shall inciude the following coverages at a minimum: Personal Injury/Damage: $200,000 per person $600,000 per occurrence B) Workers' Compensation If applicable, Contractor shall procure and maintain a policy that at least meets the statutory minimum. 7.3 �Gertifira.tes. Prior to or concurrent with execution of this Contract, Contractor shall file certificates or certified copies of such policies of insurance with Tri-City. 7.4 Tri-City may withhold payments or immediately terminate this Contractor or _ failure of Contractor to furnish proof of insurance coverage or to comply with the insurance requirements as stated above. 7.5 A�au�ai�cex. Nothing in this Contract shall constitute a waiver by Tri-City of any statutory limits or exceptions on liability. : :� � ,: 1:_ • ► ! 1► Contractor shall not enter into any subcontract for the performance of the services contemplated under this Contract nor assign any interest in the Contract without prior written consent of Tri-City. 9, nTFATTT T 9.1 Inahili�to_per.foxm. Contractor shall make every reasonable effort to maintain staff, facilities, and equipment to deliver the services to be purchased by Tri-City. Contractor shall immediately notify Tri-City in writing whenever it is unable to, or reasonably believes it is going to be unable to, provide the agreed upon quatity of services. Upon such notification, Tri-City shall determine whether such inability requires a modification or cancellation of this Contract. 9.2 D.ubjr�tolYlitiga,te. Both parties shall use their best efforts to mitigate any damages which might be suffered by reason of any event giving rise to a remedy hereunder. I r ►�u. _ � . 101 This Contract may be terminated, with or without cause, by Tri-City upon thirty (30) days written notice. 10.2 Either party may terminate this Contract for cause by giving ten (10) days written notice of its intent. Said notice shall specify the circumstances warranting termination of this Contract. 69 _ 10.3 If the party in default fails to cure the specified circumstances as described by the notice given under the above paragraph within the ten (10) days, or such additional time as may be authorized by the party giving notice, then the whole or any part of this Contract may be terminated by written notice. 10.4 Notice of Termination shall be made by certified mail or personal delivery to the authorized agent of the party. Notice of Termination is deemed effective upon delivery to the address of the party as stated in paragraph 12. 10.5 Termination of this Contract shall not discharge any liability, responsibility or right of any party which arises from the performance of or failure to adequately perform the terms of this Contract prior to the effective date of termination. •► Y: _ ' . I! ul 1 1 11.1 Riahtc ('umnl�y�, All remedies available to either party under the terms of this Contract or by law are cumulative and may be exercised concurrently or separately, and the exercise of any one remedy shall not be deemed an election of such remedy to the exclusion of other remedies. • 11.2 �Y_aixec. Waiver for any default shall not be deemed to be a waiver of any subsequent � default. Waiver or breach of any provision of this Contract shall not be construed to be modification for the terms of this Contract unless stated to be � � such in writing and signed by authorized representatives of Tri-city and contractor. _ �. �. � . �. . �� Notification required to be provided pursuant to this Contract shall be provided to the following named persons and addresses unless otherwise stated in this Contract, or in a modification of this Contract. To Contractor: Jerry Happel Suite 201 3625 Talmage Circle Vadnais Heights, MN 55110 i ►�•� •. To Tri-City: Dave Carlberg City of Andover 1685 Crosstown Blvd Andover, MN 55304 Any alterations, variations, modifications, or waivers of the provisions of this Contract shall only be vatid when they have been reduced to writing, and signed by authorized representatives of Tri-City and Contractor. 14. RF.VFRARTT.TTV The provisions of this Contract shall be deemed severable. If any part of this Contract is rendered void, invalid, or unenforceable, such rendering shall not affect the validity and enforceability of the remainder of this Contract unless the part or parts which are void, invalid or otherwise unenforceable shall substantially impair the value of the entire Contract with respect to either party. 15. MFR(iF,R 15.1 Eui This Contract is the final expression of the agreement of the parties and the complete and exclusive statement of the terms agreed upon, and shall �1 supersede all prior negotiations, understandings or agreements. There are not representations, warranties, or stipulations, either oral or written, not herein contaiaed. IN WITNESS WHEREOF, the parties hereto have executed this Contract on the date(s) indicated below. CONTRACTOR sy: _ Title: Date: file: g/data/staff/padadmin/contracdgis � � TRI-CITY GIS ORGAIVIZATION By: Title: Date: By: _ Title: Date: By: _ Title: Date: � � . � � y f r � ClTY OF FRIDLEY � TO: ' FROM: DATE: SUBJECT . AGENDA ITEM CITY COUNCIL MEETING OF DECEMBER 11, 2000 William W. Burns, City Manager n!�r A1 Jon H. Haukaas, Acting Public Works Director December 11, 2000 Representation to SiY Cities Watershed Management Organization PW00-144 The attached resolurion names Jon Haukaas as the alternate representative for the City to the SiY Cities Watershed Management Organization (WMO). John Flora, as a citizen of Fridley, will remain as the primary representative to the Su� Cities WMO, thereby maintaining continuiry of representation without a vacancy. Recommend the City Council adopt the resolution appointing Jon Haukaas as the alternate representative to the Six Cities Watershed Management Organization. JHH:cz Attachment 13 � > RESOLUTION NO. - 2000 RESOLUTION A1�NDING TFIE CITY REPRESENTATIVE TO THE SIX CITIES WATERSHED MANAGE1r�NT ORGANIZATION WHEREAS, the City of Fridley entered into the Joint Powers Agreement establishing the Six Cities Watershed Management Organization, and " WHEREAS, the City is to appoint one representative and one alternate representative as a member of the Six Cities Watershed � Organization, and WHEREAS, the appointed member is also to be designated as the Subdistrict Representative of the Six Cities Watershed Organization, and WHEREAS, Resolution 14-1993 appointed John Flora as the City representative and Scott Erickson as the alternate representative to the Six Cities Watershed Organization, and WHEREAS, Scott Erickson has since left employment with the City of Fridley and is not a resident of the City of Fridley. NOW, THEREFORE, BE IT RESOLVED THAT, the City Council of the City of Fridley, Anoka County, Minnesota, Jon Haukaas is appointed as the alternate Representative to the Six Cities Watershed Management Organization. PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS 11TH DAY OF DECEMBER, 2000. ATTEST: DEBRA A. SKOGEN - CITY CLERK NANCY J. JORGENSON, MAYOR 14 � f CRY OF FRIDLEY TO: FROM: AGENDA ITEM COUNCIL MEETING OF DECEMBER 11, 2000 WILLIAM W. BURNS, CITY MANAGER��a" RICHARD D. PRIBYL, FINANCE DIRECTOR PAUL R EISENMENGER, ACCOUNTANT SUBJECT: STATE LEGISLATIVE PROPOSAL TO SELL WINE IN GROCERY STORES DATE: December 7, 2000 As you might have heard, a proposed bill has been drafted that would put wine in grocery stores. As I understand it, the draft bill is currently looking for a sponsor to take it to the next legislative session. If this is the case, it is the beginning of the end for municipal liquor. A large portion of the profit margin would be lost in all of the liquor stores, if this bill were to pass. We would also see, in a few years, the extension of the concept allowing other alcoholic beverages into grocery stores. A number of cities are passing a resolution in opposition to this concept and we would like to follow the other cities by doing the same. We would like to propose a resolution for consideration by the Fridley City Council opposing the sale of wine or other alcohol within grocery or convenience stores. The sale of wine or other alcohol, other than 3.2 beer, should be available for sale only in off-sale liquor stores or bars owning off-sale liquor licenses. The reasons for offering this resolution include: • We believe it is this city council's goal to prevent youth access to alcohol and to control the sale of alcohol. • We believe that the sale of alcohol in grocery and convenience stores will have a negative effect on the prevention of druriken driving. • We believe that the sale of alcohol in grocery and convenience stores will have a detrimental economic impact on the Fridley's Off-Sale Municipal Liquor Operation and ultimately the General Fund. The 2001 HRA budget calls for transferring $300,000 of municipal liquor store income into the General Fund. With the levy limit now required by the City Charter, this liquor revenue is essential. Currently, the City of Fridley does not allow persons under 21 years of age into our off-sale liquor stores to purchase any product, especially alcohol, unless a parent or guardian, at lease 21 years of age, accompanies them. RDP/me cc: Barb Dacy 15 RESOLUTION NO. - 2000 A RESOLUTION OPPOSING TI� CONCEPT OF ALLOWING FURTI�R PROLIFERATION OF LIQUOR SALES FROM DISPENSAR�S OTI�R THAN DULY AUTHORIZED OFF-SALE LIQUOR STORES WHEREAS, the sale of 3.2 beer by convenience stores, grocery stores, gas stations, and othe� associated retail ouUets for off premise consumption is currentiy allowed under Minnesota law; and WHEREAS, the clerks at the afo�ementioned types of retaii outiets are not generally fully trained to recognize fake identification or in other alcohol management techniques normally required for the employees of duly authorized off-sale liquor dispensaries; and WHEREAS, there is a proposal before the Minnesota Legislature that, if adopted and made law, would allow convenience stores, grocery stores, gas stations and other similar retail outlets to sell wine including sweet °pop" wines, wine coolers and associated products for off premises consumption; and WHEREAS, the City of Fridley is endeavoring to curtail youth access to alcohol and tobacco products; and WHEREAS, the proliferation of the types of outlets where the sale of alcohol provide:s additional opportunities for youth to have access to alcohol; and WHEREAS, if the proposal is adopted and made law, would cause a substantial e.conomic loss to the City of Fridley and a possible impact to the level of service provided to its residents. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Fridley opposes the concept of allowing the further proliferation of liquor sales from dispensaries o�ther than duly authorized off-sale liquor stores. PASSED AND ADOPTED BY TI� CITY COUNCIL OF THE CITY OF FRIDLEY THIS DAY OF , 2000. ATTEST: DEBR.A A. SKOGEN - CITY CLERK 16 NANCY J. JORGENSON - MAYOR : AGENDA ITEM COUNCIL MEETING OF DECEMBER 11, 2000 CITY OF FRIDLEY CLAIMS 967� � - 97037 17 . � GTY OF FRIDLEY AGENDA ITEM CITY COUNCIL MEETING OF DECEMBER 11, 2000 Type of License: � LICENSES CHRISTMAS TREE LOT Bob's Produce Ranch Thomas Freund 7620 University Ave Fridley, MN 55432 MOTOR VEHICLE BODY REPAIR Beech Street Collision, Inc. Reza Asad 7869 Beech St Fridley, MN 55432 GAS SERVICES Earth & Air 8685 Burton Place NW Rice MN 56317 Don Zieglmeier Fire Works Fireplace Installation Inc 253 Horizon Ave Sartell MN 56377 Harlan Hall Vito Mechanical Inc 1128W7St St Paul MN 55102 HEATING Check Equipment Inc 8401 73 Ave N STE 42 Brooklyn Park MN 55428 Earth & Air 8685 Burton Place NW Rice MN 56317 Mike DeVito Stacy Czech Don Zieglmeier Fire Works Fireplace Installation Inc 253 Horizon Ave Sartell MN 56377 Harlan Hall : Approved By: Fees: Community Development $200 Fire Inspector $100 Public Safety Deposit Community Development $150 Fire Inspector Public Inspector RON JULKOWSKI Building Official Same Same RON JULKOWSKI Building Official Same Same i � � � i Type of License: HEATING (CONTINUED) Grendahl Mechanical Inc 6135 Kellogg Ave S Minneapolis MN 55424 Vito Mechanical Inc 1128W7St St Paul MN 55102 PLUMBING Conner Plumbing Co Inc 2365 Louisiana Ave N Minneapolis MN 55427 Nygard Plumbing 7435 Hwy 65 NE Fridley MN 55432 Vito Mechanical Inc 1128W7St St Paul MN 55102 LICENSES (CONT/NUED): � Jerry Grendahl Mike DeVito Mark Conner Nils Nygards Mike DeVito � Approved By: Same Same STATE OF MINN Same Same Fees: � � CIT'Y OF FRIDLEY AGENDA ITEM CITY COUNCIL MEETING OF DECEMBER 11, 2000 ESTIMATES Frederic W. Knaak, Esq. Holstad and Knaak, P.L.C. 4255 White Bear Parkway Suite 1300-A Vadnais Heights, MN 55127 Services Rendered as City Attorney for the Month of November, 2000 ............................................ Carl J. Newquist, Esq. Newquist & Ekstn�m, Chartered 301 Fridley Plaza Office Building 6401 University Avenue N.E. Fridley, MN 55432-4381 Services Rendered as City Prosecuting Attorney for the Month of August, 2000 ........................... 20 ..................................... $ 5,000.00 ................................................ $19,364.00 � . , � 0 � � C7TY OF FRIDLEY TO: FROM: AGENDA ITEM COUNCIL MEETING OF DECEMBER 11, 2000 WILLIAM W. BURNS, CITY MANAGER ��Y� RICHARD D. PRIBYL, FINANCE DIRECTOR CRAIG ELLESTAD, ACCOUNTANT SUBJECT: PUBLISHED NOTICES & PUBLIC HEARING DATE: DECEMBER 7, 2000 The 2001 Notice of Proposed Taxes & Public Hearing was published in the Fridley Focus on December 7, 1999. This information is required by the Department of Revenue and fulfills a requirement as set out in the Truth in Taxation Legislation. The 2001 City of Fridley, Budget Public Notice appeared in the Fridley Focus on September 14 and October 5, 2000 in accordance with Section 7.04 of the City Charter. Per the Truth in Taxation Checklist provided by the Department of Revenue, the following items need to be addressed at the December 11, public hearing: - The proposed property tax levy & proposed budget w�ere discussed at the hearing. - The percentage increase (if any) in property taxes proposed, and the reasons for the increase aze discussed. - The public is invited and allowed to speak and to ask questions concerning the budget and proposed property taxes. - If the public hearing can not be completed, the date, time, and place for the continuation of the hearing is announced prior to the adjournment of the initial hearing. (It was decided at the August 28 Council Meeting that the continuation meeting, if needed, would be held on Monday December 18 at 730 pm in the Council Chamber). - Prior to adjournment of the public hearing, the City must announce the date, time, and the place for the subsequent tax levy adoption hearing. (Ours will be Monday December 18 at 7:30 pm in the Council Chambers). If a continuarion hearing is needed, then the adoption hearing will take place immediately after it. - The fmal property tax levy was adopted prior to adopting the fmal budget. RDP/ce Attachments 21 � t UTY OF FRIDLEY AGENDA ITEM CITY COUNCIL MEETING OF DECEMBER 11, 2000 � TO: . S, CITY MANAGER ,�('� ` FROM: DATE: SUBJECT: DAVID H. SALLMAN, DIRECTOR OF PUBLIC SAFETY DECEMBER 7, 2000 LOCAL LAW ENFORCEMENT BLOCK GRANT The City of Fridley has been selected to receive funds in the amount of $22,734 in connection with the Local law Enforcement Block Grant. In order to receive funds, this grant has a required match of $2,526. In addition, the following conditions need to be met: 1. On Thursday, November 16, 2000, an advisory board consisting of the recommended agencies and/or representatives met and discussed the use of funds. The attached sheet contains the recommended expenditures proposed by the Police Department. 2. Upon completion of the advisory board's recommendations, a public hearing needs to be held. The public hearing notice was submitted for inclusion in the November 23 and November 30, 2000, issues of the Focus News. The public hearing date was scheduled for Monday, December 11, 2000. We do not anticipate a large response to this non- controversial issue. - - - Give the limited amount of funds available through this block grant and the other grant funding already in place, we feel that purchasing equipment is the best use of these funds. Staff recommends that Council hold the public hearing in this matter. 22 0 PUBLIC HEARING BEFORE THE CITY COUNCIL Notice is hereby given that there will be a public hearing of the Fridley City Council at the Fridley Municipal Center, 6431 University Avenue N.E. on Monday, December 11, 2000, at 7:30 p.m. for the purpose of: Consideration of proposed expenditures for the 2000 Local Law Enforcement Block Grant. Proposed expenditures have been limited to the purchase of equipment as designated in Purpose Area l of the seven possible areas. Any and all persons desiring to be heard shall be given an opportunity at the above- stated time and place. Any questions related to this item may be referred to Myra I. Harris, Special Projects Coordinator at 763-572-3638. Hearing impaired persons planning to attend who need an interpreter, or other persons with disabilities who require auxiliary aids should contact Roberta Collins at (763) 572-3500. The TDD number is 763-572-3534. Publish: November 23, 2000 November 30, 2000 �, N�r�cy J. Jorgenson Mayor AGENDA ITEM CITY COUNCIL MEETING OF DECEMBER 11, 2000 CRY OF FRIDLEY � W u i Mana er � PW00-149 TO: Wilham . B rns, C ty g�:� , - FROM: Jon H. Haukaas, Acting Public Works Director DATE: December 11, 2000 SUBJECT: Springbrook Creek Channelization Project The public hearing on the Springbrook Creek Channelization project was opened on November 20, 2000. At this meeting the hearing was continued until the December 11, 2000 City Council meeting. Since the original public hearing date we have had a neighborhood meeting on November 28 at City Hall and scheduled an on-site neighborhood meeting for December 9`�. At that time we can talk about specific site issues and hopefully come to a conclusion. Recommend the City Council open the public hearing on the Springbrook Creek Channelizaaon project as scheduled and continue it to an indefinite meeting at which time a final proposal acceptable to all affected properties can be presented. JHH:cz 25 � AGENDA ITEM � CITY COUNCIL MEETING OF DECEMBER 11, 2000 CfTY OF FRIDIEY DATE: December 6, 2000 R} � �( T0: William W. Burns, Executive Director of HRA ;� FROM: Barbara Dacy, Community Development Director Grant Fernelius, Housing Coordinator SUBJECT: Consider Resolution to Create Tax Increment Financing District No. 17 and Adoption of the Tax Increment Financing Plan for Gateway East Proiect. l�pdate On December 7, 2000 the HRA will consider approval of the development agreement with Real Estate Equities for the Gateway East Project. In addition, the Authority will also take action to establish the tax increment financing ; district. Assuming that the HRA approves the agreement and TIF district, on December 11, 2000 the Council will need to approve the TIF district as well. As of the date of this memo, staff is continuing to finalize the project details and we will have an update for the Council on Monday night. TIF Plan Overview The attached TIF Plan is required by state law and spells out the details of the TIF district. The TIF Plan includes the traditional "but for" test, plus an estimated budget, a cash flow analysis with tax increment projections and an estimate of the impacts on the other taxing jurisdictions. The TIF plan anticipates that the new development will have an estimated market value of $4,480,000 and generate $70,820 in new taxes. After deducting the original tax capacity ($4,816) the project will produce about $65,144 in tax increment per year. Over the life of the district (25 years) the cumulative tax increment is estimated to be $2,113,124, less $211,312 for administrative charges which results in $1,901,812 of net available tax increment. Using a 26 Gateway East TIF Memo December 6, 2000 Page 2 7.5% present value factor, the tax increment revenue stream has a present value of $646,162. There are a number of assumptions in the financial analysis that should be noted. First, the cash flow projection assumes a 2% annual rate of inflation, beginning in 2005/2006. Second, the average sales price is estimated to be $160,000. In our previous analysis we have used an average sales price of $135,000. However, for purposes of the TIF Plan it is important to error on the liberal side and over-estimate revenue since a conservative projection could mean a loss of tax increment to the Authority (any increment over the projected level would have to be returned). From a practical standpoint, the Gateway East project already has a significant shortfall and whatever tax increment is generated will simply "soften" the net cost to the Authority. Intended Use of TIF Legally, all of the tax increment that is generated must be used to pay for eligible expenses incurred after the date the district is certified. In other words, the TIF revenue cannot be used to reimburse the Authority for any expenses incurred to date. However, the funds can be used for the site improvements that have been identified. For example, the �-oads, utilities, storm ponding, fencing and lighting are all eligible expenses. We have received preliminary estimates that these costs could exceed $600,000 or more. The TIF plan contemplates that 100% of the tax increment will be used to pay for eligible expenses. Need for TIF Creating the tax increment district is needed in order to facilitate redevelopment of this important corner. The traditional "but for" test is met due to the fact that the Gateway East area would not be redeveloped without public involvement. The tax increment will help reduce the net cost to the Authority, which will have invested over $1,200,000 in the project for such things as acquisition, relocation, demolition and site improvements. Without the HRA's assistance, a redevelopment project would not take place. It would be too costly for a private developer to acquire the sites and create a cohesive development site. In all likelihood the project area would continue to adversely affect the surrounding neighborhood and become a further blighting influence on a highly visible corridor. 27 Gateway East TIF Memo December 6, 2000 Paqe 3 . Other Issues The Gateway East TIF district would be seventeenth TIF district created by the Ciry, however the number of active TIF districts is far less. For example, Districts No. 4, 5, 8 and 10 have all expired, and Districts No. 2 and 3 are restricted. In the ca"se of the last two districts, no additional expenditures can be made except inside those districts. Using TIF for the Gateway East project is consistent with state statutes and clearly meets the legislative intent of a redevelopment district. Recommendation Staff recommends that the City Council approve the attached resolution which creates Tax Increment Financing District No. 17 and adopts the Tax Increment Financing Plan for said district. M-00-200 :� � RESO�UTION NO. A RESOLUTION MODIFYING THE REDEVELOPMENT PLAN FOR REDEVELOPMENT PROJECT NO. 1 AND THE TAX INCREMENT FINANCING PLANS FOR TAX INCREMENT FINANCING DISTRICTS NOS. 1, 2, 3, 6, 7, 9, 10, 11, 12, 13, 14, 15 AND 16 TO REFLECT INCREASED PROJECT COSTS WITHIN REDEVELOPMENT PROJECT NO. 1, AND CREATING TAX INCREMENT FINANCING DISTRICT NO. 17 AND ADOPTING A TAX INCREMENT FINANCING PLAN RELATING THERETO BE IT RESOLVED by the City Council (the "Council") of the City of Fridley, Minnesota (the "City"), as follows: Section 1. Recitals. 1.01. It has been proposed by the Housing and Redevelopment Authority (the "Authority") that the Council modify, approve and adopt a Modified Redevelopment Plan relating to Redevelopment Project No. 1 to reflect increased project costs, pursuant to and in accordance with Minnesota Statutes, Sections 469.001 to 469.047, inclusive, as amended and supplemented from time to tim�. 1.02. It has been further proposed by the Authority that the Council modify, approve and adopt Modified Tax Increment Financing Plars for Tax Increment Finarcing Districts Nos. 1, 2, 3, 6,7, 9, 10, 11, 12, 13, 14, 15 and 16 (the "Existing TIF Districts") to reflect increased project costs within Redevelopment Project No. 1, pursuant toMinnesota Statutes, Section 469.174 through 469.1791, inclusive, as amended and supplemented from time to time. 1.03. It has been further proposed by the Authority that the Council create proposed Tax Increment Financing District No. 17 (the "Proposed TIF District") and approve and adopt a proposed Tax Increment Financing Plan relating thereto, pursuant to and in accordance with Minnesota Statutes, Section 469.174 to 469.1791, inclusive, as amended and supplemented from time to time. 1.04. The Authority has caused to be prepared, and this Council has investigated the facts with respect thereto, a Modified Redevelopment Plan for Redevelopment Project No. 1 and Modified Tax Increment Financing Plans for the Existing TIF Districts to reflect increased project costs within Redevelopment Project No. 1 and a proposed Tax Increment Financing Plan for the Proposed TIF District, defining more precisely the property to be included, the public costs to be incurred, and other matters relating thereto. 1.05. The Council has performed all actions required by law to be perFormed prior to the modification, approval and adoption of the Modified Redevelopment Plan, the Modified Tax Increment Financing Plans and the proposed Tax Increment Financing Plan. 29 Page 2 - Resolution No. 1.06. The Council hereby determines that it is necessary and in the best interests of the City and the Authority at this time to modify, approve and adopt the Modified Redevelopment Plan and the Modified Tax Increment Financing Plans to reflect increased project costs within Redevelopment Project No. 1 and to create the Proposed TIF District and app�ove and adopt the proposed Tax Increment Financing Plan relating thereto. Section 2. Findinqs. 2.01. The Council hereby finds, determines and declares that the assistance to be provided through the adoption and implementation of the Modified Redevelopment Plan, Modified Tax Increment Financing Plans and proposed Tax Increment Financing Plan are necessary to assure the development and redevelopment of Redevelopment Project No. 1. 2.02. The Council hereby finds, determines and declares that the Modified Redevelopment Plan, Modified Tax Increment Financing Plans and proposed Tax Increment Financing Plan conform to the general plan for the development and redevelopment of the City as a whole in that they are consistent with the City's comprehensive plan. 2.03. The Council hereby finds, determines and declares that the Modified Redevelopment Plan, Modified Tax Increment Financing Plans and proposed Tax Increment Financing Plan afford maximum opportunity consistent with the sound needs of the City as a whole for the development and redevelopment of Redevelopment Project No. 1 by private enterprise and it is contemplated that the development and redevelopment thereof will be carried out pursuant to redevelopment contracts with private developers. 2.04. The Council hereby finds, determines and declares that the approval and adoption of the Modified Redevelopment Plan for Redevelopment Project No. 1, the Modified Tax Increment Financing Plans for the Existing TIF Districts and the proposed Tax Increment Financing Plan for the Proposed TIF District by the City is intended and, in the judgement of this Council, its effect will be to promote the purposes and objectives specified in this Section 2 and otherwise promote certain public purposes and accomplish certain objectives as specified in the Modified Redevelopment Plan, Modified Tax Increment Financing Plans and proposed Tax Increment Financing Plan. 2.05. The Council hereby finds, determines and declares that the Proposed TIF District constitutes a"tax increment financing district" as defined in Minnesota Statutes, Section 469.174, Subdivision 9, and further constitutes a type of "redevelopment district" as defined in Minnesota Statutes, Section 469.174, Subdivision 10. 30 Page 3 - Resolution No. ��_� 2.06. The Council hereby finds, determines and declares that the proposed development or redevelopment in the Proposed TIF District, in the opinion of this Council, would not occur solely through private investment within the reasonably foreseeable future and, therefore, the use of tax increment financing is deemed necessary. 2.07. The Council hereby finds, determines and declares that the City made the above findings stated in this Section 2 and has set forth the reasons and supporting facts for each determination in the Modified Redevelopment Plan, the Modified Tax Increment Financing Plans, the proposed Tax Increment Financing Plan and Exhibit A of this Resolution. Section 3. Modification Approval and Adoption of Modified Redevelopment Plan. 3.01. The modification to the Redevelopment Plan relating to Redevelopment Project No. 1 reflecting increased project costs is hereby approved and adopted by the Council of the City of Fridley. Section 4. Modification Approval and Adoption of Modified Tax Increment Financinq Plans. 4.01. The modifications to the Tax Increment Financing Plans for the Existing TIF Districts reflecting increased project costs within Redevelopment Project No. 1 are hereby approved and adopted by the Council of the City of Fridley. Section 5. Creation of Tax Increment Financinq District and Adoption of Tax Increment Financinq Plan. 5.01. The creation of the Proposed TIF District within Redevelopment Project No. 1 and the proposed Tax Increment Financing Plan relating thereto are hereby approved and adopted by the Council of the City of Fridley. Section 6. Election of City Contribution. 6.01. The Council hereby elects to make a qualifying local contribution equal to 5.00% of the tax increment generated from the Proposed TIF District, as set forth in Minnesota Statutes, Section 273.1399. Section 7. Filinq of Plans. 7.01. Upon approval and adoption of the Modified Redevelopment Plan, Modified Tax Increment Financing Plans and proposed Tax Increment Financing Plan (collectively the "Plans"), the City shall cause said Plans to be filed with the Commissioner of Revenue. 31 Page 4 - Resolution No. PASSED AND ADOPTED BY THE COUNCIL OF THE CITY THIS 11TH DAY OF DECEMBER, 2000. I_������ DEBRA SKOGEN - CITY CLERK . NANCYJORGENSON-MAYOR � CERTIFICATION I, Debra Skogen, the duly qualified Clerk of the City of Fridley, County of Anoka, Minnesota, hereby certify that the foregoing is a true and correct copy of Resolution No. passed by the City Council on the 11 th day of December, 2000. DEBRA SKOGEN - CITY CLERK . 32 Page 5 - Resolution No. _� EXHIBIT A TO RESOLUTION NO. The reasons and facts supporting the findings for the Tax Increment Financing Plan (the "TIF Plan") for Tax Increment Financing District No. 17 (the "TIF District") as required pursuant to Minnesota Statutes, Section 469.175, Subdivision 3, are as follows: 1. Finding that the TIF District is a"redevelopment district" as defined in Minnesota Statutes. The TIF District consists of nine parcels of land which qualify as a"redevelopment district" under Minnesota Statutes, Section 469.174, subd. 10. Parcels comprising at least 70 percent of the area of the TIF District are occupied by improvements. All buildings located within the TIF District were deemed blighted, as evidenced by reports on file with the Authority. 2. Finding that the proposed development or redevelopment, in the opinion of the Council, would not occur solely through private investment within the reasonably foreseeable future and, therefore, the use of tax increment financing is deemed necessary. The redevelopment project consists of the acquisition, relocation, remediation, utility and street relocation and site preparation for the construction of a 28 unit, owner-occupied townhouse facility. Because of the substantial costs of acquisition, demolition, remediation, public improvements, and site preparation, it would not be economically feasible for the redeveloper to proceed with this project without the Authority's assistance. City staff has determined that the increased market value realized from a project receiving no TIF assistance would be considerably less than the increased market value (less the present value of tax increment receipts) from a project utilizing TIF assistance. (see attached Schedule). 3. Finding that the TIF Plan conforms to the general plan for the development or redevelopment of the municipality as a whole. The Authority and Council have reviewed the TIF Plan and determined that it conforms to the future land use plan of the City. 4. Finding that the TIF Plan will afford maximum opportunity, consistent with the sound needs of the City as a whole for the development or redevelopment of Redevelopment Project No. 1 by private enterprise. Development of the townhouse facility will improve the currently underutilized property that is located in a highly visible area of the Ciry along University Avenue and will provide a buffer between existing commercial and single-family, residential areas within the neighborhood. In addition, the project will increase the City's tax base by approximately $4,000,000. 33 Page 6 - Resolution No. � SCHEDULE 1 TO EXHIBIT A RESOLUTION NO. REDEVELOPMENT WITHOUT TIF ASSISTANCE The TIF District includes nine parcels. Due to thei� size and zoning several parcels would have to be combined to create buildable sites. Under this scenario, four duplex units and one small commercial building (7,500 square feet) could be constructed. Estimated Market Value Original Market Value Increased Market Value REDEVELOPMENT WITH TIF ASSISTANCE The TIF District includes the same nine parcels, all of which would be combined and re-platted into a single development site. Under this scenario twenty-eight new units of owner-occupied housing could be constructed with a projected market value of $4,480,000. Estimated Market Value Original Market Value Increased Market Value Less Present Value of the Tax Increment Generated at 7.50% for 25 tax increment Years. (See attached Exhibit 1) Net Increased Market Value G:\WPDATA\F\fRIDLEY\30\TIF\COUNCIL TIF RES.DOC C_� $1,262,000 $501,578 $760,422 $4,480,000 $501,578 $3,978,422 $715,645 $3,262,777 � . . SECTION XVIII TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 17 (GATEWAY EAST PROJECT) Subsection 18.1. Statement of Obiectives. See Section I, Subsection 1.5, Statement of Objectives. Subsection 18.2. Modified Redeveloqment Plan. See Section I, Subsections 1.2 through 1.15. Subsection 18.3. Parcels to be Included. The boundaries of Tax Increment Financing District No. 17 are described on the attached Exhibit XVI11-A and illustrated on Exhibit XVIII-B. Subsection 18.4. Parcels in Acquisition. The Authority may publicly acquire and reconvey any or all of the parcels in Tax Increment Financing District No. 17 identified on the attached Exhibit XVI I I-A. The following are conditions under which properties not designated to be acquired may be acquired at a future date: (1) The Authority may acquire property by gift, dedication, condemnation or direct purchase from willing sellers in order to achieve the objectiv�s of the Tax Increment Financing Plan; and (2) Such acquisition will be undertaken only when there is assurance of funding to finance the acquisition and related costs. Subsection 18.5. Development Activitv for which Contracts have been Siqned• As of the date of adoption of the Tax Increment Financing Plan, the Authority intends to enter into a Redevelopment Agreement with respect to the activities discussed below. Subsection 18.6. Sqecific Development Expected to Occur. At this time it is anticipated that an approximately 28 unit owner-occupied, residential housing townhouse development with an estimated market value of $4,480,000, will be constructed beginning in 2001 and will be completed in 2002. Subsection 18.7. Prior Planned Improvements. The Authority shall, after due and diligent search, accompany its request for certification to the County Auditor or its notice of district enlargement with a listing of all properties within Tax Increment Financing District No. 17 for which building permits have been issued during the _ eighteen (18) months immediately preceding approval of the Tax Increment Financing Plan by the Authority. The county Auditor shall increase the original tax capacity of Tax Increment Financing District No. 17 by the tax capacity of each improvement for which the building permit was issued. If said listing does not accompany the aforementioned request or notice, the absence of 35 � such listing shall indicate to the County Auditor that no building permits were issued in the eighteen (18) months prior to the Authority's approval of the Tax Increment Financing Plan. Subsection 18.8. Fiscal Disqarities. The Council hereby elects the method of tax increment computation set forth in Minnesota Statutes, Section 469.177, Subdivision 3, clause (a) if and when commercial/industrial development occurs with Tax Increment Financing District No. 17. Subsection 18.9. Estimated Public associated with Redevelopment Project No. 1.10. Improvement Costs. The estimated costs 1 are listed in Section I, Subsections 1.9 and Subsection 18.10. Estimated Amount of Bonded Indebtedness. It is anticipated that $1,599,861 of bonded indebtedness could be incurred with respect to this portion of Redevelopment Project No. 1. Pursuant to Minnesota Statutes, Section 469.178, Subdivision 1, General Obligation Tax Increment Bonds may be used as required to amortize the costs identified in Section I, Subsections 1.9 and 1.10. The Authority reserves the right to pay for all or part of the activities listed in Section I, Subsections 1.9 and 1.10 relating to Redevelopment Project No. 1 as tax increments are generated and become available. Subsection 18.11. Sources of Revenue. The costs outlined in Section I, Subsection 1.9 will be financed through the annual collection of tax increments as well as grants received from the State of Minnesota and the Metropolitan Council. Subs�ction 18.12. Estimated Ori inal and Captu�ed Tax Capacities. The tax capacity of all taxable property in Tax Increment Financing District No. 17, as most recently certified by the Commissioner of Revenue of the State of Minnesota on January 2, 2000, is estimated to be $5,016. The estimated captured tax capacity of Tax Increment Financing District No. 17 upon completion of the proposed improvements on January 2, 2002 is estimated to be $55,072. All the captured net tax capacity is necessary to finance the improvements to be undertaken within Tax Increment Financing District No. 17, therefore the Authority chooses to retain all the captured net tax capacity for purposes of tax increment financing. Subsection 18.13. Tax Increment. Tax increment has been calculated at approximately $64,908 upon completion of the improvements assuming a static tax capacity rate and a valuation increase of two percent (2%) compounded annually. Subsection 18.14. Tax CapacitY Rate. The estimated 1999/2000 total tax capacity rate is estimated at 117.859%. Subsection 18.15. Tvpe of Tax Increment Financinq District. Tax Increment Financing District No. 17 is, pursuant to Minnesota Statutes, Section 469.174, Subdivision 10, a Redevelopment District. Subsection 18.16. Duration of Tax Increment Financinq District. The duration of Tax Increment Financing District No. 17 is expected to be twenty five (25) years from receipt of the first tax increment. The date of receipt of the first tax increment is estimated 36 to be July, 2003. Thus, it is estimated that Tax Increment Financing District No. 17, including any modifications for subsequent phases or other changes, would terminate in the year 2028. Subsection 18.17. Estimated Impact on Other Taxinq Jurisdictions. The estimated impact on other taxing jurisdictions assumes construction would have occurred without the creation of Tax Increment Financing District No. 17. If the construction is a result of tax increment financing, the impact is $0 to other entities. Notwithstanding the fact that the fiscal impact on the other taxing jurisdictions is $0 due to the fact that the financing would not have occurred without the assistance of the City, the attached Exhibit XVIII-E reflects the estimated impact of Tax Increment Financing District No. 17 if the "but for" test was not met. Subsection 18.18. Election of C� Contribution. The Council hereby elects a qualifying local contribution equal to five percent (5.00%) of the tax increment generated from Tax Increment Financing District No. 17, as set forth in Minnesota Statutes 273.1399. Subsection 18.19. Modification of Tax Increment Financinq District and/or Tax Increment Financinq Plan. On December 11, 2000, no modifications to Tax Increment Financing District No. 17 or the Tax Increment Financing Plan therefore has been made, said date being the date of initial approval and adoption thereof by the City Council. G:1W PDATA\F\FRI DLEY130\T I F1TI FPLAN. D OC 37 EXHIBIT XVIII — A PARCELS TO BE INCLUDED IN TAX INCREMENT FINANCING DISTRICT NO. 17 AS ORIGINALLY ADOPTED DECEMBER 11, 2000 P I N 23-30-24-24-0014 PIN 23-30-24-24-0072 PIN 23-30-24-24-0073 P i N 23-30-24-24-0074 P I N 23-30-24-24-0075 P I N 23-30-24-24-0076 P I N 23-30-24-24-0101 P I N 23-30-24-24-0102 P I N 23-30-24-24-0103 Including all adjacent rights-of-way. XVIII—A-1 : EXHIBIT XVIII - B BOUNDARY MAP OF TAX INCREMENT FINANCING DISTRICT NO. 17 AS ORIGINALLYADOPTED DECEMBER 11, 2000 XVIII-B-1 39 s.' 2a�! .:� J i �; P'^ �' � _ � l � �I. � y71RA�E 2 � 57fN0. I ( �M� II ��,I I � � � �' �1 1 �� y;:? :`` � ����'' , ��� '_ � City of Fridley Redevelopment Project Areas and Tax increment Financing� Districts �u�s�1i � h-r� i � rr � � , �:, ,�'� � � �� ���...;:::�i�v,���iiiii�i =��'-i 101�f� � �- � � ,iUl � 1 � ;�IFJ � � �� ��'� � . — � �� � ,.`,� r � - � Il - 'ryafFriNe� � ��__'__. - ... t: , � - €=: . , _; . _ � O , _' �. ���.�� C I �:. �� I._.' ., �•ji �nrn -,. _ ir���ti���ti,u I ',(1�118tiflr..11���Ili��ll� � I�Ifll�lll�flll�l���l � wiwnu uuuuun I4�I P �J ; �� � � � i�,�. _Ill" ;�;�� IiE�: � �, . .,:i� I iti �II al i I I I_� � �1����� � ii ; II �I �I�I I ll f I'�������� �a�il���,���1 � i iil�ii �� �IIIIH111(�;�� n imn; ��i u i �lillllill ." IIJCI '� � �ull l �� !• -��rn�urtnmr.- ii !�li���i�i�i1L'il! al� � �i�� i i � ,� ��� � Il �,Tl - =��_. iii,i ' - � ,I iii�ii���rjl�l�lll'i�ii i�,i ��4IlIIII �: �� � ���� 'I I I�I,IIa,I � Ila �I� il � ��II � III' i I� I��'�� i� I I � 1 u I I�II ��I' TmrrK ��� � i �.I'l�i�`�IIIII�IIPlfS'�� � � �,w�; ������� � ;�:�: ��i�;!i�u�,� .'';,��1 I � ;� ���y(�� _ ;;,:... , � �I���r�,��, ' � ; I ���;;,, i�u � `: ;1�„ . su����i � � _.,. <.j�uiii;�:.:. � ,{ t� � -'f:f�;iiii;tui ��nnl��f�I ,���� :::;�l14titi'� �( � �iii u� ii •.; r�i ��I ( ` I :; .: � , :`:.;iill7��). �{ _ ,}.I ii4:•r �, � n li � iuf.,J��)� . muti{1fHlfllll i ��'� � �il ip;.:::: ��� 1 ...,•,iniu'��I.i'1���- ',�::'I��Lo � >��. �„ r: r :, : e !!f II[H _�i� � �, � � �E �.� ��:,,, �� ..,, ��° " _� �,......_ �, , nf. �'�'. . .._ ■ ��••fJ111 \L ----- -- --... __ _ --._...._. � Existing T1F Distrid � Exis6ng Redevelopment Project Area �] Railroad Corridor � Pro� TIF District #17 ., Q Water F�ture W�,; ttF. - t:so.000 ` zaoo o Z000 a000 �---- ---�--- Map Date: SeDtember 27, 2000 i+n+n«�:�fxvnamnrsnr�i�x»�a v��i�nw„ mw�siuuwM+nrt�cv+�arcrs�rnroRr.�rn nM.p�wue: tmo�irw�o m:�e.�son . a • 4 • . • 9 EXHIBIT XVIII - C CASH FLOW ANALYSIS FOR TAX INCREMENT FINANCING DISTRICT NO. 17 AS ORIGINALLY ADOPTED DECEMBER 11, 2000 XVIII-C-1 41 Original Market Value PID # 23-30-24-24-0014 23-30-24-24-0072 23-30-24-24-0073 23-30-24-24-0074 23-30-24-24-0075 23-30-24-24-0076 23-30-24-24-0101 23-30-24-24-0102 23-30-24-24-0103 Original Tax Capacity CITY OF FRIDLEY ' _ GATEWAY EAST - TOWNHOMES Real Estate Equities Proposal � ASSUMPTIONS Land Area �d Buildina 25,974 58, 500 115,901 11,240 33,720 24,900 5,620 16,860 • 11,240 30,000 5,620 27,000 11,240 30,000 85,897 16,800 58,800 5,600 (right of way) 10,000 5,600 (right of way) 10,000 98,934 sq. ft. 274,880 226,698 1.00% <= 76,000 1.65% > 76,000 # of townhouse owners 28 PHASEI Estimated Market Value 14 units Estimated Tax Capacity 14 units 1.00% <= 76,000 1.65% > 76,000 Estimated Taxes 14 units Estimated Tax Increment Construction 2001 Valuation 2002 Taxes Payable 2003 PHASE II - cumulative Estimated Market Value 28 units Estimated Tax Capacity 28 units 1.00% <= 76,000 1.65% > 76,000 Estimated Taxes 28 units Estimated Tax Increment Construction 2002 Valuation 2003 Taxes Payable 2004 Admin/Program Fees Pay 2000 Tax Rate Inflation 2005 / 2006 P. V. Rate 12/01/00 Prepared by Kra s Monreo, P.A. @ 160,000 /unit = @ 2,529 /unit = 50% @ 160,000 /unit = @ 2,529 /unit = 100% Gateway East TIF.xIs TOTAL 174,401 58,620 16,860 30,000 27,000 115,897 58,800 10,000 10,000 501,578 5,016 2,240,000 30,044 35,410 29,498 4,480,000 60,088 70,820 64,908 10.00% 1.17860 2.00% 7.50% 10/27/2000 � i , � s v t � <-__-_--_--_ ANNUAL (a) (b) (c) Original Estimated Tax Tax Date Capacity Capaciry (see assumptions) 2.0% Inflation 06/01 /00 12/01/00 06/01 /01 12/01/01 06/01 /02 12/01/02 06/01 /03 12/01/03 06/01 /04 12/01/04 06/01 /05 12/01/05 06/01 /06 12/01/06 06/01 /07 12/01/O7 06/01 /08 12/01/08 06/01 /09 �vo��os 06/01/10 12/01/10 06/01 /11 12/01/11 06/01/12 12/01/12 06l01 /13 12/01/13 06/01/14 12/01 /14 06/01/15 12/01 /15 06/01/16 12/01/16 O6/01 /17 12/01/17 06/01 /18 12/01/18 O6/01 /19 12/01/19 06/01 /20 12/01 /20 06/01 /21 12/01 /21 06/01 /22 12/01/22 06/01 /23 12/01/23 06/01 /24 12/01/24 06/01 /25 12/01 /25 06/01 /26 12/01/26 06/01/27 12/01/27 06/01 /28 12/01 /28 5,016 5,016 5,016 5,016 5,016 5,016 5,016 5,016 5,016 5,016 5,016 5,016 5,016 5,016 5,016 5,016 5,016 5,016 5,016 5,016 5,016 5,016 5,016 5,016 5,016 5, 016 5,016 5,016 5,016 5,016 5,016 5,016 5,016 5,016 5,016 5,016 5,016 5,016 5,016 • 5,016 5,016 5,016 5,016 5,016 5,016 5,016 5,016 5,016 5,016 - 5,016 5,016 5,016 5,016 5,416 5,016 5,016 5.016 5,016 Gateway East TIF.xIs 5,016 5,016 5,016 5,016 30,044 30,044 60,088 60,088 60,088 60,088 61,290 61,290 62,516 62,516 63,766 63,766 65,041 65,041 66,342 66,342 67,669 67,669 69,022 69,022 70,403 70.403 71,811 71.811 73,247 73,247 74,712 74,712 76,206 76,206 77,730 77,730 79,285 79,285 80,871 80.871 82,488 82.488 84.138 84,138 85,820 85,820 87,537 87,537 89,288 89,288 91,073 91,073 92.895 92,895 94,753 94,753 94,753 94,753 EXHIBIT 1 GATEWAY EAST - TOWNHOMES Real Estate Equities Proposal CASH FLOW AND PRESENT VALUE ANALYSIS �..---> I < - SEMI - ANNUAL - (d) (e) (� Captured Estimated Less: Tax Tax Admin Capacity Increment Fees (c) - (b) (d) x (e) x prev. vear) 1.1786 0.00% 0 0 25,028 25,028 55,072 55,072 55,072 55,072 56,274 56,274 57,500 57,500 58,750 58,750 60,025 60,025 61,326 61,326 62,653 62,653 64,006 64,006 65,387 65, 387 66,795 66,795 68,231 68,231 69,696 69,696 71,190 71,190 72,714 72,714 74,269 74,269 75,855 75,855 77,472 77.472 79,122 79,122 80,805 80,805 82.521 82,521 84,272 84,272 86,058 86,058 87.879 87,879 89,737 89,737 0 0 0 0 0 0 14,749 14,749 32,454 32,454 32,454 32,454 33,162 33,162 33,885 33,885 34,621 34,621 35,373 35,373 36,140 36,140 36,921 36,921 37,719 37,719 38,532 38,532 39,362 39,362 40,209 40,209 41,072 41,072 41,952 41,952 42,851 42,851 43,767 43,767 44.701 44,701 45,654 45,654 46,627 46,627 47,618 47,61 S 48,630 48,630 49,661 49,661 50,714 50,714 51,787 51,787 52,882 52,882 0 0 0 0 0 0 Q 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 (9) (h) Available Cumulative Tax Avail. Tax Increment Increment (e) - (� Total of (g) 0 0 0 0 0 0 14,749 14,749 32,454 32,454 32,454 32,454 33,162 33,162 33,885 33,885 34,621 34,621 35,373 35,373 36,140 36,140 36,921 36,921 37,719 37.719 38,532 38,532 39,362 39,362 40,209 40,209 41,072 41,072 41, 952 41, 952 42,851 42,851 43,767 43,767 44,701 44,701 45,654 45,654 46,627 46,627 47,618 47,618 48,630 48,630 49,661 49,661 50,714 50.714 51,787 .51,787 52,882 52,882 Prepared by Kr'��onroe, P.A. 0 0 0 0 0 0 14,749 29,498 61,952 94,406 126,860 159,314 192.477 225,639 259,524 293,408 328,030 362,651 398,024 433,397 469,537 505,676 542,598 579,519 617,238 654,957 693,490 732,022 771,384 810,747 850,955 891,164 932,236 973,308 1,015,260 1,057,213 1,100,063 1,142,914 1,186,681 1,230,447 1,275,149 1,319,850 1,365,504 1,411,158 1,457,785 1,504,412 1,552,030 1,599,648 1.648.278 1,696,907 1,746,569 1,796,230 1,846,944 1,897,657 1,949,445 2,001,232 2,054,114 2,106,996 > (�) G) <- Present Value -> Semi Annual Cumulative Balance Balance P.V. of (g) Total of (i) 7.50•/. 1 Z/01/00 0 0 0 0 0 0 12,269 11,826 25,081 24,175 23,301 22,459 22.119 21,320 20,997 20,238 19,931 19,210 18,918 18,234 17,956 17,307 17,042 16,426 16,175 15,590 15,351 14,796 14,568 14,041 13,825 13,325 13,119 12,645 12,449 11,999 11,813 11,386 11,209 10,804 10,636 10,252 10,092 9,727 9,575 9,229 9,085 8,756 8.619 8,308 8,177 7,882 7,758 7,477 7,860 7,094 6,982 6,729 0 0 0 0 0 0 12.269 24,095 49,177 73,352 96,653 119.112 141,231 162,551 183,548 203,786 223.717 242.927 261,845 280,079 298,035 315,342 332,385 348,811 364,986 380,576 395,926 410,722 425,290 439,331 453,156 466,482 479,601 492,246 504,696 516,695 528,508 539,895 551,104 561,909 572,545 582.796 592,888 602,615 612,190 621,419 630,504 639,260 647,879 656,187 664,364 672,246 680,003 687,481 694,840 701,934 708,916 715,645 10/27/2000 EXHIBIT XVIiI — D "BUT FOR" ANALYSIS TAX INCREMENT FINANCING DISTRICT NO. 17 The proposed redevelopment district consists of nine parcels, three of which contained structures. The City Council and the Authority adopted resolutions determining that those three parcels were occupied by structurally substandard buildings and such parcels were to be included within a tax increment financing district. The substandard structures were demolished in 2000. The street pattern in this area is also inefficient. Four of the nine parcels are "double frontage" lots. The structurally substandard buildings consisted of J.R. Automotive, Cash `n Pawn (a former service station) and a duplex. The property proposed to be included within the district is also blighted due to incompatible land uses and contamination. It is proposed that 28, owner-occupied, townhouse units be constructed within the district and will be sold at prices starting at $126,000. It is expected the City's tax base will increase by approximately $4,000,000. The proposed tax increment district contains parcels that have land uses that are incompatible with each other and with adjacent parcels, have required remediation and require major infrastructure improvements. The new construction will improve the currently underutilized property that is located in a highly visible area of the City along University Avenue and will provide a buffer befinreen existing commercial and single-family, residential areas within the neighborhood. The existing University Avenue frontage road will be reconstructed in a more conducive alignment for efficient development and double frontage lots will be eliminated. Because of the substantial costs of acquisition, relocation, demolition�_remediation, and utility and street relocation, all of which substantially exceed the market value of the land, this redevelopment project could not proceed without the financial assistance of the Authority. G:�WPDATA\F\FRIDLEY\30\TIF\TIFPLAN.DOC XVIII—D-1 .. • ■ ,► EXHIBIT XVIII - E ESTIMATED IMPACT OF TAX INCREMENT FINANCING DISTRICT NO. 17 IMPACT ON TAX BASE ORIGINAL ESTIMATED CAPTURED DISTRICT TAX TAX TAX TAX AS % ENTITY BASE CAPACITY CAPACITY CAPACITY OF TOTAL City of Fridiey 25,967,424 5,016 60,088 55,072 0.212% County of Anoka 200,812,271 5,016 60,088 55,072 0.027% ISD #14 11,740,431 5,016 60,088 55,072 0.469% I M PACT ON TAX RATE TAX % OF TAX TAX RATE ENTITY RATE TOTAL INCREMENT INCREASE City of Fridley 0.17070 14.48% 9,401 0.036% County of Anoka 0.30861 26.18% 16,996 0.008% ISD #14 0.61655 52.31% 33,955 0.291% Other 0.08273 7.02% 4,556 1.17859 100.00% 64,907 * Assumes construction would have occurred without the creation of a Tax Increment Financing District. If construction is a result of Tax Increment Financing, the impact is $0. XVIII-E-1 45 : AGENDA ITEM CITY COUNCIL MEETING OF DECEMBER 11, 2000 CRY OF FRIDLEY • I NFORMAL STAT US REPORT'S .� 4 I �w- � � �