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HomeMy WebLinkAbout1984 11-19 CCM Regular Session MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA REGULAR SESSION NOVEMBER 19, 1984 CITY HALL CALL TO ORDER The Brooklyn Center City Council met in regular session and was called to order by Mayor Dean Nyquist at 7:02 p.m. ROLL CALL Mayor Dean Nyquist, Councilmembers Gene Lhotka, Celia Scott, Bill Hawes, and Rich Theis. Also present were City Manager Gerald Splinter, Director of Public Works Sy Knapp, Director of Finance Paul Holmlund, Director of Planning & Inspection Ron Warren, City Attorney Richard Schieffer, and Administrative Assistants Brad Hoffman and Tom Bublitz. INVOCATION The invocation was offered by Councilmember Celia Scott. OPEN FORUM Mayor Nyquist noted the Council had not received any requests to use the Open Forum session this evening. He inquired if there was anyone present in the audience who wished to address the Council. There being none, he continued with the regular agenda items. CONSENT AGENDA Mayor Nyquist inquired if any Council members requested any items removed from the Consent Agenda. Councilmember Hawes requested items 7a and 12 be removed from the Consent Agenda. APPROVAL OF MINUTES - SEPTEMBER 24, 1984, REGULAR SESSION There was a motion by Councilmember Scott and seconded by Councilmember Hawes to approve the minutes of the September 24, 1984 City Council meeting as submitted. Voting in favor: Mayor Nyquist, Councilmembers Lhotka, Scott, Hawes, and Theis. Voting against: none. The motion passed unanimously. APPROVAL OF MINUTES - NOVEMBER 6, 1984, SPECIAL SESSION There was a motion by Councilmember Scott and seconded by Councilmember Hawes to approve the minutes of the special November 6, 1984 City Council meeting as submitted. Voting in favor: Mayor Nyquist, Councilmembers Lhotka, Scott, Hawes, and Theis. Voting against: none. The motion passed unanimously. RESOLUTIONS RESOLUTION NO. 84 -171 Member Celia Scott introduced the following resolution and moved its adoption: RESOLUTION ESTABLISHING CITY GARAGE /7- ELEVEN STORE FUEL TANK RECONDITIONING PROJECT NO. 1984 -16, AND ACCEPTING PROPOSAL FOR WORE: THEREON The motion for the adoption of the foregoing resolution was duly seconded by member 11 -19 -84 - 1 - p Bill Hawes, and upon vote being taken thereon, the following voted in favor thereof: Dean Nyquist, Gene Lhotka, Celia Scott, Bill Hawes, and Rich Theis; and the following voted against the same: none, whereupon said resolution was declared duly passed and adopted, AUTHORIZATION FOR MAYOR AND CITY MANAGER TO ENTER INTO AN AGREEMENT FOR LEASE EXTENSION ON HUMBOLDT SQUARE LIQUOR STORE There was a motion by Councilmember Scott and seconded by Councilmember Hawes to authorize the Mayor and City Manager to enter into An Agreement for the Extension of the Lease on the Premises Occupied by the Humboldt Square Liquor Store. Voting in favor: Mayor Nyquist, Councilmembers Lhotka, Scott, Hawes, and Theis. Voting against: none. The motion passed unanimously. AUTHORIZATION FOR MAYOR AND CITY MANAGER TO ENTER INTO AN AGREEMENT FOR THE 1984 AUDIT � r There was a motion by Councilmember Scott and seconded by Councilmember Hawes to authorize the Mayor and City Manager to enter into An Agreement with Seifert, Betts and Company, Ltd. Certified Public Accountants for the 1984 City Audit. Voting in favor: Mayor Nyquist, Councilmembers Lhotka, Scott, Hawes, and Theis. Voting against: none. The motion passed unanimously. RESOLUTIONS (CONTINUED) The City Manager introduced a Resolution Approving Agreement with Lindberg - Pierce, Inc, for Architectural Services Relating to Remodeling of the Former 7- Eleven Convenience Store. He explained that the resolution provides for architectural services related to the remodeling of the former 7- Eleven Store which was recently purchased for use as a Municipal Liquor Store. Councilmember Hawes inquired why the project was not put out on bids. The City Manager explained that for smaller projects the City does not use a bid procedure and also the particular firm being recommended has done considerable work for the City, including a significant amount of remodeling and has established a very good track record. RESOLUTION NO. 84 -172 Member Bill Hawes introduced the following resolution and moved its adoption: RESOLUTION APPROVING AGREEMENT WITH LINDBERG- PIERCE, INC. FOR ARCHITECTURAL SERVICES RELATING TO REMODELING OF THE FORMER 7- ELEVEN CONVENIENCE STORE The motion for the adoption of the foregoing resolution was duly seconded by member Rich Theis, and upon vote being taken thereon, the following voted in favor thereof: Dean Nyquist, Gene Lhotka, Celia Scott, Bill Hawes, and Rich Theis; and the following voted against the same: none, whereupon said resolution was declared duly passed and adopted, CONTINUATION OF PUBLIC HEARING ON MULTIFAMILY HOUSING BOND FOR EARLE BROWN FARM APARTMENTS The City Manager explained the publid hearing was continued from the November 5, 1984 City Council meeting to allow time for the staff and the applicant to prepare additional information for the City Council. With regard to staff recommendations, the City Manager recommended that the Council consider Multifamily Housing Bond requests on a case by case basis with the provision that the City inspect the buildings in order to give another opinion and appraisal on what 11 -19 -84 -2- rehabilitation actually needs to be performed. He added that he does not believe generalized guidelines would serve much purpose or have much value in review of Multifamily Housing Bond requests. Administrative Assistant Hoffman explained that the City's Housing Advisory Commission has reviewed the policy on Multifamily Housing Bonds and has indicated that they want to review it further. He added also that the Housing Commission recommends the Council consider federal legislative goals with regard to maintaining a City's housing stock and the supply of low and moderate income housing in Brooklyn Center. Administrative Assistant Hoffman also pointed out that, if the Multifamily Housing Bonds are issued in the same manner as Industrial Revenue Bonds, the federal government will likely look at this process with a great deal of scrutiny and may place a cap on these types of bonds as they have done with the IRB's. In conclusion, Administrative Assistant Hoffman pointed out that approval is recommended contingent on a follow up inspection by the City and the development of a list of mandatory rehabilitation items in order to qualify for a bond. Mayor Nyquist commented he agrees that the need for rehabilitation should be established by City staff. Councilmember Hawes expressed a concern that it appears the Council is asked to approve a plan which they have not seen. Administrative Assistant Hoffman pointed out that any plans for remodeling or new development must be brought to the City's Planning Commission and that the financing for the project does not disallow this procedure. He explained the money for the project won't be available without site and building plan approval. Administrative Assistant Hoffman then proceeded to review the City's inspection policies authorized under the Housing Maintenance Ordinance. Councilmember Theis inquired what percentage of existing rental units in the City are in poorer condition than those in the Earle Brown Farm Apartments. Administrative Assistant Hoffman explained that in his estimation the Earle Brown Farm Apartments was one of the better rental complexes in the City and ranked in at least the upper third. Councilmember Theis then requested an explanation of the intent of the federal legislation. Administrative Assistant Hoffman explained the intent of the legislation was to assure housing to low and moderate income persons, and pointed out that 20% of the units must be occupied by persons of low and moderate income. In response to a question from Councilmember Lhotka, Administrative Assistant Hoffman replied that the Housing Commission intends to review the Multifamily Housing Bond Program further and recommend a policy. Mayor Nyquist recognized Marcia Cohodes, of Miller & Schroeder, and representing the applicant. Ms. Cohodes explained that she has reviewed the intent of the legislation and believes that the purpose of the program is to maintain a supply of low and moderate income housing and also the maintenance of the existing housing stock in the City. She explained the rehabilitation of one project provides incentive for other developments to do likewise. She noted that the buildings in the Earle Brown Farm Apartments are between 12 and 20 years old and buildings in this age group do not always show the need for maintenance outwardly. She explained that the Multifamily Housing Bond Program is the only vehicle of financing the City has which will allow a City to influence what will be done to maintain structures. Councilmember Scott inquired how much money the developers must contribute to the project. Ms. Cohodes explained that, generally developers look for an institution to guarantee the bonds, and the lender usually looks at the appraised value of the 11 -19 -84 -3- buildings and will generally fund 80% of the appraised value, therefore, the developer usually contributes 20 %. Councilmember Theis asked what the current interest rates on a project of this nature would be. - Ms. Cohodes explained that the interest rates for tax exempt AA bonds is 9 /4% and with credit enhancement 10 /4 fixed rate. She e that 3 3 � p the current conventional every two a rates are 13 1/2% to 14% and they are renegotiated e e y years. She added that, with regard to the time line for the project, the developer is looking for preliminary approval of the project this evening. Mayor Nyquist recognized Mr. Phil Cohen, representing the City's Housing Commission. Mr. Cohen stated that the issue of Multifamily Housing Bonds was reviewed by the City's Housing Commission. He explained the City has already issued bonds for the Brookwood Project which had a requirement that 20% of the residents of the project must be of low and moderate income. He explained that the current debate in Congress on the housing bonds was one item that held up passage of a tax bill. He explained that the groups representing low and moderate income persons testified that this program was one of the only sources of financing, for housing. He added that he believes the proposal before the Council this evening follows the letter of the law and that it is the intention of law to provide housing for low and moderate income persons and elderly persons. He concluded by stating that Congress will examine what the public purpose is in this legislation and will review municipal activities in this regard. Mayor Nyquist stated that he was unsure of the definition of rehabilitation, and suggested that perhaps some of the problems which require rehabilitation are related to poor construction in the first place, and added that he would not like to reward it with this type of program. Councilmember Lhotka expressed a concern over one of the owners of the project who will continue to be involved. He also stated that items such as the roof, windows, and appliances are normal maintenance items, and suggested that these could have been dealt with earlier. Mayor Nyquist recognized the applicant Mr. Gary Holmes who stated that in the past people have held properties for six to seven years then passed them along to the next owners and there has never been a continuity of ownership. Councilmember Theis inquired of the applicant how the level of rents have acted over the past 13 years. Mr. Holmes stated he assumes that the rents were kept current with market place supply and demand. He explained the rental market in the Twin Cities is very tight and that rents have gone up. Councilmember Theis and Mr. Holmes then discussed the financing of the project both under the Multifamily Housing Program and in the normal market place. Mr. Holmes contended that the normal market place financing would not allow the rehabilitation of the project, financially speaking. Mayor Nyquist inquired of the applicant whether he would create a reserve fund for maintenance in future years, if the project was approved. He explained that by maintenance he meant a set aside for continued maintenance other than the 15% required by the program. Mr. Holmes replied that 15% of the total bond money must be spent within the first five years, but that he believes a maintenance program as suggested by the Mayor could be worked out. Mayor Nyquist inquired if there was anyone else present in the audience who wished to speak at the public hearing. No one requested to speak and he entertained a motion to close the public hearing. 11 -19 -84 -4- There was a motion by Councilmember Hawes and seconded by Councilmember Scott to close the public hearing on the Multifamily Housing Bond for Earle Brown Farm Apartments. Voting in favor: Mayor Nyquist, Councilmembers Lhotka, Scott, Hawes, and Theis. Voting against: none. The motion passed unanimously. There was a motion by Councilmember Lhotka and seconded by Councilmember Theis to deny the request for a Multifamily Housing Bond for the Earle Brown Farm Apartments. In discussion of the motion, Councilmember Hawes suggested that rather than denial the staff could develop some guidelines for instituting a maintenance fund as suggested by Mayor Nyquist. Mayor Nyquist suggested that the Council may want the Housing Commission to review any guidelines. Councilmember Theis then stated that the guidelines should tell the Council what it needs to know about a particular piece of property and in the future may find a method to use the law. Councilmember Lhotka inquired whether, if the project is denied this evening could the applicant bring the project back later. The City Attorney stated he believes there is nothing in the law which prevents it and the Council could request the staff to prepare a resolution of denial for this project. Councilmember Scott stated that she was not against the intention of the Multifamily Housing Bond Program but without guidelines she was not prepared to approve a project. She added that she is not against this particular project but without guidelines she felt she could not approve it. Councilmember Lhotka stated that these are the same thoughts expressed at the last Council meeting, and emphasized the fact that, in his opinion, he could not approve the project because he did not know where the law was taking the City in terms of an overall maintenance and redevelopment program. Upon a vote being taken on the motion, the following voted in favor thereof: Mayor Nyquist, Councilmembers Lhotka, Scott, Hawes, and Theis. Voting against: none. The motion passed unanimously. There was a motion by Councilmember Scott and seconded by Councilmember Hawes to direct the City staff and Housing Commission to review the Multifamily Housing Bond Program and develop guidelines regarding the City's role in determining rehabilitation requirements for projects approved under the Program. Voting in favor Mayor Nyquist, Councilmembers Lhotka, Scott, Hawes, and Theis. Voting against: none. The motion passed unanimously. RECESS The Brooklyn Center City Council recessed at 8:03 p.m. and reconvened at 8:20 p.m. DISCUSSION ITEMS ASSOCIATION OF METROPOLITAN MUNICIPALITIES 1985 -86 LEGISLATIVE POLICY RECOMMENDATIONS The City Manager explained that the Association of Metropolitan Municipalities Policies was developed by various committees of the organization and the staff can respond to any comments the Council may have about the proposed policies. He noted that the policies will be voted on at the Association of Metropolitan Municipalities general meeting held on December 6, 1984. RYAN LAKE DETACHMENT /ANNEXATION 11 -19 -84 -5- The City Manager pointed out that the Minneapolis Park Board has purchased the north portion of Ryan Lake and surrounding property from Mr. & Mrs. Salitros on October 1, 1984. He noted that a resolution regarding the detachment and annexation had h it Council of the City Minneapolis. lis. He then been passed b the C Po already y Y Y P proceeded to review a transparency of the property and states: that much of the property is under water or in a swanpy area. He explained that a small portion of the property is usable if it is platted and could possibly hold a single house. He explained that the property has been purchased by the Minneapolis Park Board for park use only, and explained that the property is not accessible for services from the City of Brooklyn Center. He stated he is recommending passage of the resolution which would start the process and would bring the detachment and annexation before the Minnesota Municipal Commission. RESOLUTION NO. 84 -173 Member Gene Lhotka introduced the following resolution and moved its adoption: RESOLUTION DETACHING PROPERTY FROM CITY OF BROOKLYN CENTER AND ANNEXING TO CITY OF MINNEAPOLIS The motion for the adoption of the foregoing resolution was duly seconded by member Celia Scott, and upon vote being taken thereon, the following voted in favor thereof: Dean Nyquist, Gene Lhotka, Celia Scott, Bill Hawes, and Rich Theis; and the following voted against the same: none, whereupon said resolution was declared duly passed and adopted. CHARTER AMENDMENTS REGARDING EVEN YEAR ELECTIONS The City Manager explained that the proposed revision to the City Charter has been recommended by the City's Charter Commission, and he proceeded to review the adjustment of Council terms necessary to implement a change to even year elections for municipal offices. He explained that the Charter Commission requested the recommended ordinance revisions not be brought before the Council until appropriate publicity on the recommended changes had been completed. He added that if a change is to occur it must be a unanimous vote by the City Council. Mayor Nyquist recognized Mr. Donn Escher, Chairman of the City Charter Commission. Mr. Escher addressed the Council and explained that he has been on the Charter Commission for six years and that much of the recommended amendments to the Charter in the past have been of a housekeeping nature, but that the recommended revision to the City Charter before the Council this evening is a substantive change. He noted that the impetus for the change originated with citizens and election judges. He explained that in May of this year there was a unanimous vote of the Charter Commission for the change in the Charter presented this evening. He reviewed the publicity prepared for the proposed Charter change, and noted that in June the Brooklyn Center Post printed an article on the proposed changes to an even year election and also the City Manager's newsletter contained an article on the proposed change. Mr. Escher, explained that, at the September 26, 1984 Charter Commission meeting, Charter Commission members were polled individually with regard to any comments they had received from the community in regard to the proposed Charter change. Essentially, he pointed out, there had been no comment from the community at large. He noted that he did receive personally a comment from a candidate for State office and a former City Council member that a certain group within the community had concerns regarding the proposed change. He pointed out that the City of 11 -19 -84 -6- Minneapolis submitted a similar proposition to the voters at the last election and it passed. Mr. Escher then proceeded to review the voter turn -out from 1973 through 1984. He stated he believes the proposal submitted by the Charter Commission for even year elections is practical given the voting trend of the past few years, and cited the low voter turn -out for municipal elections in comparison to the even year State and Federal elections. He added that the Charter Commission has certain qualms about the extension of terms resulting from the change but such a change could not be implemented without the extension of terms. The City Manager (( stated that he had received no more than four phone calls regarding the proposed change and they dealt primarily with the extension of terms. He added that when he explained the reason that the terms had to be extended people calling understood the transition process. Mr. Escher noted that the Charter Commission debated whether both Council and Mayor should have the same term and the result is that they recommended the Mayor's term should be kept at two years, therefore, voters have the opportunity to change the Council every two years. Councilmember Hawes stated that the objections he has heard from a number of people are that if the elections are changed to even year elections local issues may be lost in an even year election. Mr. Escher stated that he believes in even year elections the voter interest is greater than in off year elections. The Council continued its discussion of the proposed Charter revision and Councilmember Theis expressed a concern that because of the holiday season holding a public hearing in December may not be advisable. The City Manager suggested that perhaps January 14 or January 28 of 1985 be set for the public hearing date, if the Council approves the ordinance this evening. Councilmember Theis suggested that the date be January 28, and stated that the issue he wrestles with is that the current system works and the current length of terms at three years appears reasonable. The City Manager stated that without a unanimous vote the Charter Commission could request that the issue be put on the ballot or the change could be put on by petition. He pointed out there are many options in this issue. Councilmember Theis stated that he would want to give any groups concerned ample time to review the proposed revision. Councilmember Lhotka stated that he was in favor of the proposal as suggested by the Charter Commission. There was a motion by Councilmember Lhotka and seconded by Councilmember Scott to approve for first reading An Ordinance Amending the Brooklyn Center City Charter and to set the public hearing on the ordinance and second reading for January 14, 1985. Voting in favor: Mayor Nyquist, CounciLmembers Lhotka, Scott, Hawes, and Theis. Voting against: none. The motion passed unanimously. There was a motion by Councilmember Theis and seconded by Councilmember Hawes to amend the public hearing date for the Ordinance Amending the Brooklyn Center City Charter to January 28, 1985. Voting in favor: Councilmembers Scott, Hawes, and Theis. Voting against: Mayor Nyquist and Councilmember Lhotka. The motion passed. 11 -19 -84 -7- COUNCIL MEETING SCHEDULE FOR 1985 There was a motion by Councilmember Lhotka and seconded by Councilmember. Theis to approve the Council meeting schedule for 1985 as submitted by staff. Voting in favor: Mayor Nyquist, Councilmembers Lhotka, Scott, Hawes, and Theis. Voting against: none. The motion passed unanimously. LICENSES Councilmember Hawes inquired why the food license was being issued to the Hennepin Technical Center in Brooklyn Center when the Center is located in Brooklyn Park. The City Manager stated that he believed the license was issued for an itinerant food license for a display conducted at Brookdale. LICENSES There was a motion by Councilmember Hawes and seconded by Councilmember Scott to approve the following list of licenses CHRISTMAS TREE SALES LOT P.Q.T. Company 4007 58th Ave. N. CIGARETTE LICENSE B. C. American Legion Post 4307 70th Ave. N. Canteen Company of MN 6300 Penn Ave. S. FMC 1800 Freeway Blvd. Iten Chevrolet 6701 Brooklyn Blvd. M.T.C. 6845 Shingle Cr. Pkwy. Country Club Market 5715 Morgan Ave. N. M & S Drug Emporium 5900 Shingle Cr. Pkwy. Minnesota Vikings Food Service 5200 W. 74th St. LaBelle's 5925 Earle Brown Dr. Northwest Microfilm 1600 67th Ave. N. Twin City Vending Co. 1065 E. Highway 36 Earle Brown Farm Ind. Park 6100 Summit Dr. Uncle Bob's Food Shop 6600 Lyndale Ave. N. Wes' Standard 6044 Brooklyn Blvd. Yen Ching Restaurant 5900 Shingle Cr. Pkwy. COMMERCIAL KENNEL LICENSE Brooklyn Pet Hospital 4902 France Ave. N. COURTESY BENCH LICENSE U.S. Bench Corporation 3300 Snelling Ave. ITINERANT FOOD ESTABLISHMENT LICENSE Hennepin Technical Centers 9000 77th Ave. N. OFF -SALE NONINTOXICATING LIQUOR LICENSE Brooks Superette 6804 Humboldt Ave. N. Country Club 5715 Morgan Ave. N. Super America Stations 6545 W. River Road Super America Stations 1901 57th Ave. N. RE NTAL DWELLING LICENSE Initial: 11 -19 -84 -8- James & Yvonne Lyons 5303 Emerson Ave. N. Arthur & LaVonne Cahill 4715 France Ave. N. Arvey & Penny Rice 7208 Fremont Ave. N. Dale & Rose Ketelboeter 4207 Lakeside Ave. #338 Daniel & Georgette Kitchin 5601 Logan Ave. N. Matthew & Kelly Guzik 7009 Unity Ave. N. Wallce & Dorothy Arneson 3513 53rd Pl. Diane & Eugene Wright 4408 69th Ave. N. Renewal: Gary Lyons Humboldt Court Harrington Properties Hi Crest Apartments (Humboldt Ave.) Kenneth L. Bergstrom Hi Crest Apartments (67th Ave. N.) Edstrom Associates Twin Lake North Apartments Randall B. Cook 5347 Brooklyn Blvd. David Jensen & Gordon Wellens 5501 Brooklyn Blvd. Ronald L. Nyberg 5301 Dupont Ave. N. James & Wanda Storie 5339 Emerson Ave. N. Jerry Tyson & Randall Tyson 5137, 39 France Ave. N. Patrick Menth 5302 Fremont Ave. N. Dennis F. Deering 5409 Fremont Ave. N. Thomas & LaDonna Pfingsten 6706 Grimes Ave. N. Peter & Joan Neururer 6737, 43 Humboldt Ave. N. Robert J. Beugen 7001 Humboldt Ave. N. Aquila Partners 5407 Lyndale Ave. N. Mr. & Mrs. John W. Schroeder 5312 Oliver Ave. N. Allan & Vicki Olson 7111 Riverdale Road Duane L. Christiansen 5400 Sailor Lane Mrs. Paul Enge 4748 Twin Lake Ave. Tom Castle 5256 E. Twin Lake Blvd. Richard Dawson 3955 69th Ave. N. Marlyn & Gayle Kruse 2101 71st Ave. N. Voting in favor: Mayor Nyquist, Councilmembers Lhotka, Scott, Hawes, and Theis. Voting against: none. The motion passed unanimously. REPORT ON COST OF 1984 FIREWORKS DISPLAY The City Manager explained that the amount required by the Earle Brown Days Committee for the fireworks display totals $3,200. ADJOURNMENT There was a motion by Councilmember Lhotka and seconded by Councilmember Theis to adjourn the meeting. Voting in favor: Mayor Nyquist, Councilmembers Lhotka, Scott, Hawes, and Theis. Voting against: none. The motion passed unanimously. The Brooklyn Center City Council adjourned at 9:02 p.m. f , Deputy City Clerk Mayor 11 -19 -84 -9-