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HomeMy WebLinkAboutCCMin_84Oct10 MINUTES REGULAR CITY COUNCIL MEETING OCTOBER 10, 1984 A regular meeting of the Falcon Heights City Council was called to order at 7:07 P.M. by Mayor Eggert. Playor Eggert, Councilmembers Ciernia, Baldwin, Hard, and Chestovich. Also present were Clerk Administrator Barnes, Attorney Van de North and Engineer Schunicht. None. Mayor Eggert moved, seconded by Councilmember Chestovich, that the Consent Agenda be approved as presented. Motion carried unanimously. ~~i PRESENT ABSENT CONSENT AGENDA APPROVED 1. Falcon Heights Fire Report 4~1-09184 2. Falcon Heights Ambulance Reports 4~2-06684 - ~~2-07484 3. General Disbursements 9/20/84 - 10/10/84 $18,803.39 Sinking Funds $ 545.60 4. Liquor Disbursements 9/18/84 - 10/8/84 $50,122.76 5. General Payroll 9/16/84 - 9/1/84 $ 7,316.14 6. Liquor Payroll 9/16/84 - 9/30/84 $ 1,606.46 7. Planning Commission Minutes of October 1, 1984 8. Human Rights Commission Minutes of June 12, 1984 9. Ramsey County Sheriff's Report for September, 1984 10. Liquor Store Financial Report for August, 1984 11. Bi-monthly Financial Report 12. Prosecutor's Statement for August, 184 13. Licenses: See Attached List 1 Mayor Eggert moved, seconded by Councilmember Chestovich that Item 6(d) be added to the Agenda (Scheduling of Business Meetings). Motion carried unanimously. ADDENDUN'p TO AGENDA i~ Mayor Eggert moved, seconded by Councilmember Chestovich, that the Minutes of September 19, 1984, be approved. Motion carried unanimously. Council briefly discussed the possibility of changing the November meeting dates but decided to leave them on the regularly scheduled dates. Mayor Eggert moved, seconded by Councilmember Ciernia that the request for partial payment to Austin P. Keller Construction Company for Falcon Woods No. 3 utilities and street improvements be approved ($5,998.47) as recommended by the City Engineer. Motion carried unanimously. MINUTES OF 9/19/84 APPROVED NO CHANGE IN NOV. MEETING: PARTIAL PAY- MENT TO AUS- TIN P. KELLE] CONSTRUCTION Clerk Administrator Barnes recommended that Tommy's Firehouse Associates PARTIAL PAY- be paid $7,655.50 (partial payment for equipment only) for the civil MENT ON CIVIL defense sire. He explained that the siren is now functioning but that DEFENSE SIREZ the radio installation is not complete. Mayor Eggert moved, seconded by APPROVED Councilmember Baldwin, that the recommended payment be made. Motion carried unanimously. Mayor Eggert moved, seconded by Councilmember Ciernia, that Moore and Howell be designated as streets to conform with St. Paul and Ramsey County. Motion carried unanimously. At 7:15 Mayor Eggert opened the Public Hearing on a Proposal for a Commercial Facilities Development Project (Bradford Schools) and presented the Affidavits of Publication. He explained that Bradford Schools is interested in purchasing the remaining 5.2 acres of the Iiawkins property for the purpose of construcing a new facility for the r4inneapolis School of Business, and would like to be included in MOORE & HOWE] DESIGNATED AS STREETS PUBLIC HEAR- ING ON IDB BONDS FOR BRADFORD SCHOOLS MINUTES ~~ REGULAR CITY COUNCIL MEETING OCTOBER 10, 1984 PAGE 2 The State pool for Industrial Revenue bonds. If at any time Bradford BRADFORD Schools and the City cannot agree, the application can be withdrawn, and SCHOOLS Bradford Schools must still go through regular channels as required by (cont.) ordinance. The Planning Commission reviewed the presentation at their October 5th meeting, and indicated their approval of the concept. Brad Lemberg, Bonestroo and Associates, introduced the proposal and pre- liminary layout for the School, and introduced Maggie Good, Vice President of Finance for Bradford Schools, Chris Seigal, Project Manager, Jim Zillman, President of the Minneapolis Business College, and Robyn Hanson, Bond Attorney with Briggs and Morgan. Chris Seigal gave background information on Bradford Schools including the type of training, types of students, tuition, etc. He explained that they desire to construction an office type building which will be used for classroom purposes and residential housing for approximately 160 female students. Jim Zillman gave background information on the Minneapolis Business College. He explained that the students in the school are 90% female, rules are very strict, curfews, no alcohol, and the residential townhouses would be under the supervision of a full time resident director. Mr. Lemberg then presented the four different layouts and explained that construction would probably start with the office building and three townhouse units, with the other townhouses to be construction as the need arises. Councilmember Ciernia expressed concern that there is no provision for recreational facilities. Mr. Seigal explained that some of the class room space will be used for lounge area, but due to the intensity of the study program they have found little need for recreation. Mr. Zillman felt that there would be adequate tennis in surrounding parks. Council- member Chestovich commented on increased traffic at Prior and Larpenteur. Mr. Seigal stated that classes-are staggered and there would not be a mass exodus. Residents of theabutting neigborhood to the north expressed concern over use of the park, walkway to the north, and parking, and requested that Council check with other Bradford Schools to find the impact on the neighborhood. Robyn Hansen explained that Bradford Schools must apply for Industrial Revenue Bonds by October 20 and that is the reason the matter is being handled now rather than after more definite plans have been made. Attorney Van de North recommended Council give preliminary approval. ..The matter is then subject to State approval and final approval of Council. Maggie Good explained that they would prefer a certificate of deposit rather than a letter of credit, suggested their credit references be checked by the City, and she would be willing to go through the financial background of the company. Proposed Resolution 84-35 was reviewed by Council alter which Mayor Eggert moved, seconded by Council- member Chestovich, that Resolution 84-35 be adopted with the understand- ing that this resolution does not bind the City to the approval of MINUTES REGULAR CITY COUNCIL MEETING OCTOBER 10, 1984 PAGE 3 any final proposed Bradford Schools might present, and Bradford Schools is required to observe all the procedures of the City of Falcon Heights with respect to approval of projects such as this. Motion carried unanimously. RESOLUTION 84-35 RESOLUTION RECITING A PROPOSAL FOR A COMMERCIAL FACILITIES DEVELOPMENT PROJECT GIVING PRELIMINARY APPROVAL TO THE PROJECT PURSUANT TO THE MINNESOTA MUNICIPAL INDUSTRIAL DE- DEVELOPMENT ACT AUTHORIZING THE SUBMISSION OF AN APPLICATION FOR APPROVAL OF THE PROJECT TO THE ENERGY AND ECONOMIC DE- DEVELOPMENT AUTHORITY OF THE STATE OF MINNESOTA AND AUTHOR- IZING THE PREPARATION OF NECESSARY DOCUMENTS AND MATERIALS IN CONNECTION WITH THE PROJECT Council reviewed the proposed preliminary agreement with Bradford Schools and suggested corrections. Robyn Hansen stressed the fact that the City is not paying Briggs and Morgan for the legal work being done for Bradford Schools, the firm will be billed for costs. Following a short discussion, Mayor Eggert moved, seconded by Councilmember Ciernia, that the Preliminary Agreement be approved with the corrections suggested, Motion carried unanimously. Maggie Good explained that they will have no use for the ponding area and Bradford Schools have discussed the possibility of deeding the area to the City. Council concurred that they would not object, but asked the City Attorney to check into the matter further. Mayor Eggert presented a Conditional Use Request from Wm. E. Bossard, to convert the home at 1899 W. Larpenteur to a 4-plex. Councilmember Chestovich referred to concerns to the Planning Commission and listed in their Minutes of October 5, 1984 and explained that the Commission approved the request by a 4 to 2 vote. Council questioned the plans, felt they were not detailed enough, had not been discussed with the Fire Marshall, Building Inspector or Heating Inspector. Mr. Bossard explained that he had prepared his own drawings as an architect wanted $1,000 to prepare plans and explained that he planned to match the building to the present building as much as possible. Council concurred that they were not opposed to a 4-plex but could not get a good idea of the appearance of the structure from the plans presented. Following a discussion, Mayor Eggert moved, seconded by Councilmember Chestovich, that the request be approved. Motion defeated. iii ,~ RESOLUTION 84-35 PRELIMINARY AGREEMENT WITH BRAD- FORD SCHOOLS APPROVED ATTORNEY TO REVIEW POSSIBLE., DEEDING OF PONDING AREA TO CITY REQUEST FROM W.E. BOSSARD TO CONVERT HOME AT 1899 W. LARP. TO A 4-PLEX Mayor Eggert presented a request from Winifred L. and George N. Croft, REZONING 1700 St. Mary's Street, to rezone the property from R-1 to B-2 to REQUEST FROM accommodate the proposed expansion of the Lido Italian Restaurante. Follow- CROFTS, ing a short discussion, Mayor Eggert moved, seconded by Councilmember 1700 ST. Chestovich, that the matter be referred to the Planning Commission. MARYS Mayor Eggert moved, seconded by Councilmember Ciernia, that the Planning CROFT Commission hearing on rezoning of the Croft property be schedulaifor REZONING ~', November 5, 1984 at 7:45 P.M.,-that the Council hearing on rezoning of HEARINGS ~I the Croft property be scheduled for November 14, 1984 at 7:15 P.M, and SCHEDULED that the Clerk Administrator be authorized to publish the hearing notices. Motion carried unanimously. MINUTES REGULAR CITY COUNCIL MEETING OCTOBER 10, 1984 PAGE 4 Mayor Eggert moved, seconded by Councilmember Chestovich, that a public hearing on tax increment financing for-the Lido Italian Restaurante be scheduled for November 14, 1984 at 8:00 P.M., and that the Clerk Administrator be authorized to publish the same. Motion carried unanimously. Attorney Mary Ippel, Briggs and Morgan, presented proposed Resolution 84-36 providing for public sale of $600,000 general obligation tax incre- ment bonds of 1984, Series B, and proposed Final Dote Resolution 84-37. She explained that the closing scheduled on the Industrial Revenue Bonds and the sale of the filling station, plus payment of the mortgage on the eight lots (scheduled for October ll) had been delayed due to some financing changes. Robert Collins, Attorney for Bullseye Golf, explained that costs are much higher now than anticipated due to the City's request for exterior enhancement, winter construction, and phase construction because the Flameburger lease does not expire until April 30, 1985, an increase of $100,000. For that reason, Mr. Collins stated that Bullseye plans to defer starting construction until spring after the Flameburger-lease has expired. Council expressed concern that the project would not be completed by the deadline stipulated in the development agreement (December 31, 1985), but Mr. Collins assured that there would be no problen, they anticipate con- struction being completed in 4 to 5 months. He also stated that Bullseye will make some changes to reduce costs, but National City Bank does not want the value of construction reduced. Mayor Eggert stated he had a problem with changing the dollar amount as it will change the amount of funds generated by the tax increment financing. Mr. Collins said the value of the building for tax purposes would not change. Attorney Ippel recommended that both items be approved at this time, and if the Industrial Revenue Bonds are not closed by November 5, 1984 and the filling station has not been purchased, the TIF bond sale could be cancelled. She recommended it be stipulated that if the market-value change is below what is necessary to amortize the funds, the sale must be cancelled. Councilmember Ciernia asked what the City's liability is with signing the IDB Note Resolution. Attorney Ippel stated that the City is used only as a conduit, the note will be purchased by National City Bank, and payments will be made by Bullseye under the loan agreement. The note does not con- stitute a debt to the City. PUBLIC HEARING ON TIF FINANCING FOR LIDO CAFE SCHEDULED BULLSEYE GOLF, INC. PROPOSED RESOLUTION ON TIF BONDS & IDB NOTE Councilmembers Baldwin and Ciernia inquired what equity Bullseye has in the project and Mr. Collins replied that it is approximately $40,000 after paying off the mortgage on the eight lots (mortgage held by Midway National). Other items regarding the Bullseye finances were discussed. Councilmember Baldwin then questioned why Bullseye was allowed to deposit a $20,000 cashiers check rather than a letter of credit as stipulated in the development agreement. Attorney Ippel stated that the cashier's check is better than a letter of credit, and that Miller Schroder has done a very thorough financial in- vestigation. Mr. Baldwin expressed concern that since the development agreement stipulates there must be a letter of credit, and no letter of credit was provided, they would be in violation of the agreement, and that he would not have voted in favor of the agreement if that stipulation had not been included. Attorney Van de North stated he and Attorney Gasteazoro made the decision to accept the cashier's check and that they were remiss in not polling Council. The Banking Attorney at Briggs and Morgan also felt is was proper and not a material change in the agreement. Following the discussion, Mayor Eggert moved, seconded by Councilmember Chestovich, that the $20,000 cashier's check be accepted in lieu of the letter of credit. MINUTES REGULAR CITY COUNCIL MEETING OCTOBER 10, 1984 PAGE 5 ~1 .J Upon a vote being taken, the following voted in favor thereof: Mayor Eggert, Councilmembers Ciernia, Hard and Chestovich, and the following voted against the same: Councilmember Baldwin. Motion carried. Fiscal Consultant Cheno weth inquired if the $400,000 TIF Bonds are not needed until construction starts in the spring, what will be done with the funds? Mary Ippel stated that if the bonds are issued and invested in a fund at National City Bank it would probably be agreeable to the bank, and she will check into the matter further. BULLSEYE $20,000 CASHIER CHECK IN LIEU OF LETTER OF CREDIT Mayor Eggert moved, seconded by Councilmember Chestovich, that Resolution 84-36 be adopted with the following stipulations: (1) sale of the bonds may be can- celled in the event that Staff, Ehlers and Associates, and the City Attorney determines that there has been a substantial change in the market value of the project, (2) Bullseye demonstrates to the satisfaction of the City Attorney and Staff that the project will go through in compliance with the development agree- ment, and (3) the closing on the industrial revenue bonds be prior to November 5, 1984. Mayor Eggert moved, seconded by Councilmember Chestovich, that the meeting be extended to allow completion of-the matters under discussion. Motion carried unanimously. Upon a vote being taken, the following voted in favor thereof: Mayor Eggert, Councilmembers Ciernia, Hard, and Chestovich, and the following voted against the same: Councilmember Baldwin. Motion carried. RESOLUTION 84-36 RESOLUTION PROVIDING FOR PUBLIC SALE OF $600,000 GENERAL OBLIGATION TAX INCREMENT BONDS OF 1984, SERIES B Mayor Eggert moved, seconded by Councilmember Chestovich, that Final Note Resolution 84-37 be approved. Upon a vote being taken, the following voted in favor thereof: Mayor Eggert, Councilmembers Ciernia, Hard, and Chestovich, and the following voted against the same: Councilmember Baldwin. Motion carried. RESOLUTION 84-37 FINAL PdOTE RESOLUTION - $1,400,000 COMMERCIAL DEVELOPMENT REVENUE NOTE OF 1984 (BULLSEYE GOLF CENTERS, INC. PROJECT) Mayor Eggert moved, seconded by Councilmember Hard, that the meeting be extended to allow discussion of item 5(h) dealing with liquor licenses. MEETING EXTENDED RESOLUTION 84-36 RESOLUTION 84-37 MEETING EXTENDED Mayor Eggert informed that two persons have indicated an interest in OFF SALE obtaining a license for an off-sale liquor establishment. Council concurred LIQUOR that more information is needed regarding criteria used i n issuing licenses, STORE how other communities handle such licenses, etc. Council directed the City LICENSES Attorney to research the matter and report back, and the Clerk Administrator DISCUSSED to obtain information from neighboring cities. MINUTES REGULAR CITY COUNCIL MEETING OCTOBER. 10, 1984 PAGE 6 ;~ ~ mayor Eggert moved, seconded by Councilmember Ciernia, that the meeting be ADJOURNMENT adjourned at 10:40 P.M. Motion carried unanimously. r Ronald C. Eggert, M.D., or 1 ATTEST: f,_ ,i`. Dewar B. Barnes,. Clerk Administrator Regular City Council Meeting of October 10, 1984