CCM 11/12/2019
CITY COUNCIL MEETING
CITY OF FRIDLEY
NOVEMBER 12, 2019
The City Council meeting for the City of Fridley was called to order by Mayor Lund at 7:02 p.m.
MEMBERS PRESENT: Mayor Lund
Councilmember Ostwald
Councilmember Tillberry
Councilmember Eggert
Councilmember Bolkcom
OTHERS PRESENT: Wally Wysopal, City Manager
Dan Tienter, Finance Director
Jay Karlovich, City Attorney
APPROVAL OF PROPOSED CONSENT AGENDA:
APPROVAL OF MINUTES:
1. City Council Meeting Minutes of October 28, 2019.
Councilmember Bolkcom requested this item to be removed from the Consent Agenda.
THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA AND PLACED ON THE
REGULAR AGENDA.
OLD BUSINESS:
2. Second Reading of an Ordinance Under Section 12.06 of the Fridley City Charter and
Minnesota Statutes, Section 465.035, Regarding Certain Real Estate and Authorizing the
Conveyance Thereof (Transfer Property Located at 6431 University Avenue N.E.)
(Ward 1)
APPROVED.
NEW BUSINESS:
3. Approve Memorandum of Understanding Between the City of Fridley and Kennedy &
Graven Chartered and Andrew M. Biggerstaff for Legal Services.
APPROVED.
4. Claims (187014 - 187177).
APPROVED.
FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 12, 2019 PAGE 2
ADOPTION OF PROPOSED CONSENT AGENDA:
MOTION by Councilmember Barnette to adopt the proposed consent agenda with the removal of
the October 28, 2019 meeting minutes. Seconded by Councilmember Tillberry.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY.
OPEN FORUM, VISITORS:
No one from the audience spoke.
ADOPTION OF AGENDA:
MOTION by Councilmember Bolkcom to adopt the agenda as presented. Seconded by
Councilmember Eggert.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY.
PUBLIC HEARINGS:
5. Consider Liquor Manufacturing License Application by Matthew J. Asay to Operate
Forgotten Star Brewing Company, Located at 38 Northern Stacks Drive N.E.
and
Motion to Approve a Liquor Manufacturing License and Other Required Business
Licenses for Forgotten Star Brewing Company (Ward 3).
MOTION by Councilmember Bolkcom to open the public hearing. Seconded by Councilmember
Eggert.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED AND THE PUBLIC HEARING OPENED AT 7:08 P.M.
Captain Ryan George, Deputy Director Police Division, stated Matthew J. Asay, applicant, has
applied for a Brewery Taproom On-Sale License and a Small Brewer Off-Sale License to operate
a craft brewery at 38 Northern Stacks Drive N.E. Lillian R. Altemose has applied for a Managerial
Liquor Dispensing License and will act as the Taproom Manager. The building in which the
brewery will be located is the former boiler room for the Northern Pump Company, which has
been redeveloped by Hyde Development.
Captain George noted that Section 610.07 of the Fridley City Code requires a public hearing be
held to consider approval of a liquor manufacturing license. The notice for the public hearing was
FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 12, 2019 PAGE 3
published in The Life on November 1, 2019, which meets the ten-day advance notice requirement.
After the public hearing, the City Council has the ability to approve the license at the same meeting.
Captain George stated that Matthew J. Asay is the Vice President and Head Brewer of Forgotten
Star Brewing Company, LLC, which has the following officers: Nathan J. Zuidema (Chief
Manager), Corey C. Weber (Chief Financial Manager), and Andrew Risvold (Secretary). Mr. Asay
has previous experience dating back to 2010 as a brewer for The Freehouse and Moto-I, both in
the City of Minneapolis. Ms. Altemose has previous restaurant and brewpub experience dating
back to 2014 with Buffalo Wild Wings in Lakeville and The Freehouse in Minneapolis. A
background investigation has been conducted on the applicants and the business partners, with no
areas of concern found. Forgotten Star Brewing Company holds a Micro Brewer License issued
by the MN Department of Public Safety – Alcohol and Gambling Enforcement Division (#72683),
a Wholesale Malt Beverage License issued by the MN Department of Public Safety – Alcohol and
Gambling Enforcement Division (#72733), and a Brewery Notice approved by the U.S.
Department of the Treasury. The brewery passed a Food Establishment Inspection and a Good
Manufacturing Practice Inspection conducted by the MN Department of Agriculture. At this time,
staff recommends Council hold a public hearing for a Liquor Manufacturing License for Matthew
J. Asay, Applicant, to operate Forgotten Star Brewing Company located at 38 Northern Stacks
Drive N.E.; and approve the liquor manufacturing and other required business licenses for
Forgotten Star Brewing Company.
Andy Risvold and Matthew Asay, owners, said they want to have food trucks on site and
production hours are earlier than consumption hours. The tap room will open from 3:00 pm to
10:00 p.m. on weekdays and until midnight on Fridays and Saturdays. Open hours will be limited
but will increase with demand.
MOTION by Councilmember Barnette to close the public hearing. Seconded by Councilmember
Tillberry.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED AND THE PUBLIC HEARING CLOSED AT 7:17 P.M.
MOTION by Councilmember Bolkcom to approve the Liquor Manufacturing License and Other
Business Licenses for Forgotten Star Brewing Company (Ward 3). Seconded by Councilmember
Tillberry.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY.
NEW BUSINESS:
6. First Reading of an Ordinance Amending the Fridley City Code, Chapter 1. Legislative
Body, Pertaining to Ward Map.
Dan Tienter, Finance Director, said the ward boundaries are established after each decennial
census of the United States. Fridley is comprised of three wards and 12 precincts. Each precinct
FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 12, 2019 PAGE 4
has a polling location, which are typically churches and schools. Occasionally polling locations
change due to various reasons, such as building renovations, transfer of ownership or logistical
issues.
Mr. Tienter said when the need arises for a polling location to change, staff work with Anoka
County to ensure the polling location satisfies State Statute. City staff will then request approval
from City Council. Upon approval, Anoka County notifies the Minnesota Secretary of State and
mails a post card to all addresses affected by a polling location change. Fridley City Code (City
Code) Section 1.03 contains language referencing an exhibit, which is a precinct map of the City.
Currently, the map lists the Fridley Municipal Center (6431 University Avenue) as a polling
location for Ward 1 Precinct 3. In 2018, upon the relocation of city offices, the polling location for
Ward 1 Precinct 3 changed to the Fridley Civic Campus (7071 University Avenue). Amending
Section 1.03 will alleviate the need for a City Code amendment to replace the Voting Precinct Map
when a polling location changes.
Mr. Tienter noted that according to State Statute 204B.16, Subd. 1, municipalities must designate
polling locations for the following calendar year. Staff will present a resolution at the Council
meeting on November 25, 2019 to approve the 12 polling locations for the City. Staff recommends
the City Council make a motion to hold the first reading of the ordinance.
MOTION by Councilmember Tillberry to waive the reading of the ordinance and adopt the
ordinance on first reading. Seconded by Councilmember Bolkcom.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY.
7. Resolution Providing for the Sale of $10,000,000 General Obligation Tax Increment
Bonds, Series 2019A;
and
Resolution Providing for the Sale of $5,215,000 General Obligation Tax Increment
Bonds, Series 2020A
Dan Tienter, Finance Director, said in 2011, the Fridley Housing and Redevelopment Authority
(HRA) executed the first of a series of agreements with Hyde Development, Inc. (Developer) to
redevelop the area known generally as Northern Stacks (Project). In order to assist in the
redevelopment process, the HRA established a Tax Increment Financing (TIF) District to support
eligible costs associated with the Project. As part of the financing plan for the Project, the HRA,
through a limited revenue tax increment, pledged 90% of the tax increment revenue generated by
the TIF District to the Developer, which used it as collateral for loans to support certain site
improvement costs. In total, the TIF Plan authorized such expenditures for up to $15,775,000.
These improvements are now substantially complete and the HRA began payment on the note as
of August 1, 2016.
FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 12, 2019 PAGE 5
Mr. Tienter said since the inception of the project, the HRA and the developer contemplated the
potential issuance of bonds by the HRA and/or City to refinance the note. In effect, the proceeds
of the bond would pay off the note by providing the balance of its obligation in a lump sum, as
opposed to payments over a series of years. The HRA and/or City would then use the tax increment
revenue that would have otherwise been used for the note to support the ongoing debt service. On
July 3, 2019, the HRA guided staff to further examine a potential bond issue. Following a series
of internal meetings, staff identified a 15–year, tax–exempt, general obligation bond issued by the
City through two separate sales as the best issuance strategy. With this approach, the HRA would
pledge the tax increment revenue generated by the TIF District to the repayment of the bonds,
which is estimated to be more than adequate to repay it, even in the event of recession or a
downturn in property values.
Mr. Tienter said the bond issues would allow the HRA to refinance the current note at a lower
interest rate, from 4.69% to no more than an estimated 2.37%, which would save the HRA
approximately $1,487,000 over the compared life of the obligations. The bond issue would also
allow the HRA to extend the life of the TIF District and build a fund balance to support other
potential redevelopment projects. Based on current estimates, the HRA would accrue
approximately $16,900,000 by the year 2035. These funds could be used to support many of the
21 potential redevelopment projects identified in the City’s 2040 Comprehensive Plan.
Mr. Tienter stated at the September 23 and October 14, 2019, conference meetings, staff reviewed
the potential bond issues with the City Council. As a result of those discussions, the City Council
guided staff to begin the process for issuing the two bonds, including: November 12, 2019 – a call
for sale for both bond issues by the City; December 5, 2019 – a tax increment revenue pledge by
the HRA; and December 9, 2019 – an award of sale for both bond issues by the City. Based on the
Pre–Sale Reports. The Series 2019A and Series 2020A bonds will be $10,000,000 and $5,215,000,
respectively, for a total obligation of $15,215,000. The HRA will use existing tax increment
revenue from the TIF District and a one– time payment of $45,000 from the Developer to refinance
the remaining portion of the note and support the cost of issuance. Staff recommend the City
Council adopt the two resolutions providing for the sale of both the Series 2019A and Series 2020A
bonds.
MOTION by Councilmember Bolkcom to adopt Resolution No. 2019-67 and approve the sale of
$10,000,000 General Obligation Tax Increment Bond Series 2019A. Seconded by
Councilmember Eggert.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY
MOTION by Councilmember Bolkcom to adopt Resolution No. 2019-68 and approve the sale of
$5,215,000 General Obligation Tax Increment Bonds Series 2020A with the change in the
resolution amount to $5,215,000.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY.
FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 12, 2019 PAGE 6
8. Informal Status Reports:
Mayor Lund presented a certificate of appreciation from the Fridley Charter to Councilmember
Ostwald, in recognition of his service on the commission from October 2014 through September
2019.
Councilmember Bolkcom said that the Banfill Locke Center for the Arts has been repainted, and
all the floors are redone. She asked people to stop by to see the renovations. The gift shop also
has a new look and will kick off in December. The Center is open 10 a.m. to 4:00 p.m.
ADJOURN:
MOTION by Councilmember Ostwald to adjourn. Seconded by Councilmember Eggert.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY AND THE MEETING ADJOURNED AT 7:47 PM.
Respectfully submitted,
Krista Peterson Scott J. Lund
Recording Secretary Mayor