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HomeMy WebLinkAboutCC MINUTES 11261985 Meeting Sheet IIIIIIVIIIVIIIVIIIVIIIVIIIIIIIIIII - 101790 i Box: 21 Folder. CC MINUTES AND AGENDAS 1985 Document: CC MINUTES 11261985 CITY OF ST. ANTHONY • COUNCIL MINUTES November 26, 1985 The meeting was opened at 7:30 P.M. with the Pledge of Allegiance led by Mayor Sundland. Present for roll call : Marks, Ranallo, Sundland, Enrooth, and Makowske. Also present: David Childs, City Manager. Motion by Councilmember Marks and seconded by Councilmember Ranallo to approve as submitted the November 5, 1985 City election results minutes. Motion carried unanimously. Motion by Councilmember Makowske and seconded by Councilmember Enrooth to approve the minutes of the Council 's special work session on the Kenzie Terrace Redevelop- ment Project which was held November 11 , 1985, with the following change: Page 3, para. 6: Substitute "but not" for "and never" i-n line 3. Motion carried unanimously. Tony Martin, 3421 Edward Street N.E. , presented Mayor Sundland with a check for $500 from the Fridley B.V.M. Council of the Knights of Columbus as a donation • towards the purchase of a Heart Aid defibrillator for the use of the City Fire Department in cardiac emergencies. Mr. Martin also acknowledged the involvement of Councilmembers Ranallo and Enrooth, who also belong to that same Knights Council , in the donation. The Mayor expressed the City' s gratitude for the donation and told those present the same organization had also donated equipment for the use of the Police Department in the past. The Mayor next presented a Certificate of Appreciation from the Council in recog- nition of his outstanding service to the community to Gary Willmer, Principal of St. Charles Borromeo School and recipient of the National Catholic Education Association Principal of the Year Award in 1985. Mayor Sundland stated the Council had wanted to give special recognition to Mr. Willmer because they perceived St. Charles to be a very strong member of the City's educational community. As he accepted the plaque, Mr. Willmer indicated that, after 14 years as principal of St. Charles, it was his hope that he could be able to continue that service in "this beautiful community of which I feel so very much a part". Motion by Councilmember Ranallo and seconded by Councilmember Makowske to grant the following licenses as listed in the November 26th Council agenda packet: Heating Midwestern Mechanical , Blaine Cheyenne Plumbing Co. , Inc. , Cedar, MN • Contractors Standard Water Control , Brooklyn Park _ Arwidsen Builder, Inc. , Edina Walker Roofing, Minneapolis -2- Motor Vehicle Starting Apache Mobil Service Rubbish Hauling Twin Cities Sanitation Motion carried unanimously. Motion by Councilmember Marks and seconded by Councilmember Ranallo to approve pay- ment of all verified claims listed for October 31 and November 26, 1985 in the November 26th Council agenda packet. Motion carried unanimously. Motion by Councilmember Marks and seconded by Councilmember kanallo to approve payment of $2,000 to the Roger S. Moore Co. , as final payment for services on the Roseville water connection on County Road C. Motion carried unanimously. Motion by Councilmember Makowske and seconded by Councilmember Enrooth to approve payment of $1 ,825 to the Edward J. Hance firm for prosecuting services from. October 3 through November 6, 1985. Motion carried unanimously. • Action on the League of Minnesota Cities billing was deferred until later in the agenda. Motion by Councilmember Marks and seconded by Councilmember Enrooth to approve payment of $9,000 to School District #282 for the City' s use of the Park View facilities during the last three months of 1985. Motion carried unanimously. Motion by Councilmember Marks and seconded by Councilmember Ranallo to approve payment of $29,272 to the League of Minnesota Cities Insurance Trust for the second and third quarter premiums due for the City's participation in the League's -Self Insured Worker' s Compensation Program. Motion carried unanimously. Motion .by Councilmember Makowske and seconded by Councilmember Enrooth to approve payment of $587.65 to Dorsey and Whitney for legal services during September, 1985. Motion carried unanimously. William Soth, the City Attorney, arrived at 7:40 P.M. William Bowerman opened his report of the November 19th Planning Commission minutes • by indicating there had been a four to one Commission vote to recommend the Council grant the variance to the City Sign Ordinance which would allow the St. Anthony National Bank to erect the 9 square foot monument type sign they proposed at the northeast entrance to their building on the corner of Lowry Avenue and Stinson -3- ` Boulevard N.E. to advertise the availability of a Cirrus automatic teller machine • on the bank premises. The Commissioner identified himself as the lone dissenter, saying his reasons for opposing a second free standing sign for the bank had been well documented in the minutes . He indicated he perceived the overriding reason the other Com- missioners had voted in the affirmative had been because they perceived the precedent for granting a second variance for signage of this type for financial institution's had :already been set, specifically, when the .City had let Twin City Federal add to what was already a non-conforming free standing sign to advertise the availability of a 24 hour instant cash machine inside their building at 3819 Silver Lake Road. All the documentation related to the bank's request, including a sketch of what was estimated would be a little over five foot high by four foot wide sign had been included in the Council 's agenda packet and Councilmember Enrooth commented he had seen for himself that the sign would be positioned "snug up" to the build- ing near the bank's east entrance. Councilmember Ranallo reminded the other Councilmembers that he had been the only one to vote against a second variance for. the TCF sign and therefore, he said, he now had to agree with the majority of the Commissioners that the City couldn't refuse a second variance for the same purpose for the bank at the other end of the City. Motion by Councilmember Marks and seconded by Councilmember Makowske to grant the St. Anthony National Bank, 2401 Lowry Avenue N.E. , the variance-to-the City Sign Ordinance which would allow them to erect the 9 ,square,Joot free standing monument-type sign they proposed at the northeast corner of their bank building which would carry the message "Instant Cash (Cirrus) " on it as illustrated in the. sketch included in the Council agenda packet and initialed by the Planning Commission Chair. In granting this variance, the Council finds, as did the Planning Commission, that: 1 . No objections to the sign had been expressed by the public at, either the November 19th Commission hearing or Council consideration of the variance request or to staff prior to either of those meetings; 2. The sign would be sited in an inoffensive, recessed location, next to the bank entrance and not adjacent to the street, and would be generally small in size; 3. Precedents had already been established for granting similar variances to other lending institutions in the City, namely, to Twin City Federal and Midwest Federal Savings and Loan Associations; and 4. The three questions required by Minnesota statutes and City--ordinances to be answered affirmatively by the petitioner, had been done so in general terms by this applicant. Motion carried unanimously. • Commissioner Bowerman then reported there had been unanimous Commission agreement that the Council should grant the requested conditional use permit for the pro- posed addition to the west side of the existing Nativity Lutheran Church building at 3312 Silver Lake Road as well as a 38 space parking lot to be constructed on the property the church had acquired on the corner of Silver Lake Road and 33rd Avenue N.E. -4- Two members of the Nativity- Building Committee, John Hensel , Chairman, and Richard Carlson, were present to discuss the church's proposal and to respond to the conditions having to do with drainage, landscaping, screening and type of building materials which the Commission had placed on their recommendation for approval . Mr. Carlson requested that condition Cb) be modified to permit the use of asphalt rather than concrete in the construction of the new parking lot curbings, except in locations where concrete would abut existing concrete. It was his contention that asphalt could be expected to do the same job of water retention, provide as effective buffer between properties, and would be just as repairable as concrete which the church spokesman indicated, would add between $2,000 and $2,500 to the amount the church would have to pay for the parking lot expansion. Commissioner Bowerman told Councilmember Makowske he perceived the reasoning behind the Commission recommendation for concrete had a lot to do with the fact that the church's closest neighbor to. their west parking lot had indicated the bituminous curbings next to his home were in a state of disrepair. The Commissioner also, indicated he was presuming that the Commissioners had perceived concrete might be more durable than bituminous and would then present a more aesthetic appearance to a location which. would be more visible on a major intersection of the City. Mr. Hensel stated that, except for .the question about the material to be used for curbings in the parking lot, the Building Committee had generally agreed with the Commission recommendations related to the project. He told Councilmember Enrooth _"the curbing which was being discussed would serve as the border of the property on the west side -'but would be constructed on the higher elevations of the property with the lot graded to divert runoff to .the center and out on the street. The • Committee Chair indicated his committee had noted a widespread use of asphalt in parking lots and anticipated the curbs would, no doubt, last as long as the lot surface itself. Mr. Hensel then reported that since the Commission meeting a week ago there had been three meetings with Jim McNulty, the neighbor who lives just west of the prop- osed parking lot, to work out what the church representative said, he perceived had been an agreement agreeable to both the church and Mr. McNulty which should provide the visual screening the neighbor had indicated he desired for his property. Mr. Hensel said the agreement which he had with him thatevening provided for the construction of a 150 foot long fence of P'A 8" or 10"'_vertical boards- which, oards > which, as an extra bonus, could also serve as a physical barrier against having snow piled on the property line. Mr. McNulty indicated he was not prepared that evening to sign the agreement which had been given to the Mayor but had noted that the height of the fence had not been included. With the dropoff which exists between the two properties, it was Mr. McNulty's opinion, a three or four foot fence would probably never provide the type of buffer the church representatives had promised when they first approached him about the project three or four years ago.. He said if the fence were built on the lot line, as suggested by some church representatives, it would probably have to be 12 feet high to provide screening for his own property. Mr. McNulty said he would also like the agreement to state that the fence would be treated or stained and he urged the Councilmembers to put themselves in his place with a parking lot going in next door, when they made their final decision • on the request because he said, he agreed with the Mayor that the conditions the Council put on the permit would be as legally binding as any agreement between the church and himself. -5- Mr. Hensel said the omission of the height of the proposed fence had only been an oversight on his own part because he had intended to state that the proposed fence would be between 5 or 6 feet tall depending on what 's necessary to construct it on the crest of the church property on that side. There would also be .several . shrubs planted on the west side of the fence to define the property line, he added. Mr. McNulty indicated he recognized the budgetary -restrictions the church was facing in this project and, as long as the church takes the necessary steps to allow him to enjoy his own property, it would make no difference to him what materials were used in the curbing, especially if providing concrete would cause the church to cut. back on the quality of the buffer between their properties . Mayor Sundland said the condition imposed by the Council gave Mr. McNulty the right to complain if he had any problems with the existing tree on the parking lot property. The Mayor also indicated he perceived the church had provided a satisfactory solution to the drainage problems experienced in the past on the west parking lot. Mr. Childs said he so far had been unable to find a record of any landscaping plan between Mr. Porter and the church 30 years ago. Mayor. Sundland indicated he perceived it would be more important for the church to show Mr. McNulty the grading plan they have for the new parking 1-ot because the protection that would provide, not the type of curbing used, would make all the difference. Motion by Councilmember Marks and seconded by Councilmember Ranallo to grant the • request from Nativity Lutheran Church for a conditional use permit in an R-1 , single family residence district, which would allow the construction of the proposed addition to the west side of the existing church building at 3312 Silver Lake Road, and the expansion of their parking facilities onto the property which had been acquired for that purpose on the corner of Silver Lake Road and 33rd Avenue N.E. , as presented in the building, site, and parking plans for the project which had been included in the November 19, 1985 Planning Commission and Council November 26th agenda packets, finding that the petitioners had affirmed that the following conditions required by Minnesota statutes and City ordinances � o 'be satisfied before a conditional use permit can be authorized, had been satisfied: 1 . The proposed conditional use is •one- of=the c_ onditional use specifically �.r• listed for the zoning district in which it is located; 2. The proposed conditional use is necessary or desirable at the above location to provide a service or a facility :which is in the interest of the public convenience and will contribute to the general welfare •of the neighborhood or community; and 3. The proposed conditional use will not be detrimental to the health, safety, or general welf are' of persons residing or working in the vicinity, or injurious to property values or improvements in the vicinity, as long as the following conditions, attached as a part of this motion, are met: a. that a landscaping plan be submitted by the Nativity Lutheran Church a showing and addressing screening of the west side of the new parking lot and, the Council recommends that consideration be also given to providing landscaping for the northern portion of the west parking lot, as had reportedly been agreed to previously; -6- b. that a six inch asphalt curb be constructed around the perimeter of the . new parking lot; c. that a quality engineered 8 inch diameter, or greater, storm drain pipe be installed with cleanouts to drain the north parking lot; d. that an information sign be placed on the exit on the south side of the south parking lot requiring only right hand turns (_only westbound traffic) out of the driveway; e. that a lighting plan for the parking lot be similar, or at the same standard of lighting, normally accepted in a residential area; f. that the parking lot expansion and building addition be constructed as one unit; g. that any problems perceived by the adjoining neighbor with the existing large overhanging tree centered on the south parking lot property, be ameliorated; and h. that a six foot stained, wooden fence be constructed up to four feet west of the asphalt curbing and running southerly to within 35 feet north of the back of the 33rd Avenue N.E. curbing and northerly to the end of the parking lot. Motion carried unanimously. • Commissioner Bowerman indicated the Planning Commission had unanimously recommended Council approve the requested rezoning of Bernard Blanske's property on the corner of Silver Lake Road and Silver Lane for an eight unit townhome project. As he had at the Commission meeting, the absent petitioner was again represented by his brother, Bob. Blanske, who reported his brother had instructed him by phone from Tucson, Arizona to reiterate';, that a quality project would be constructed which would meet all codes and ordinances. Mr. Soth had advised that a new ordinance would have to be written for the project but no further- public input, other than the November 19th hearing, would be necessary. Motion by Councilmember Marks and seconded by Councilmember Enrooth to direct the City Attorney to prepare an ordinance which would authorize the rezoning of .76 acres of land owned by Bernard Blanske on the southeast- corner of Silver Lake Road and Silver Lane, generally described as the Blanske Addition (that part of Lot 1 , except the east 137.8 feet lying North of Lot 2, and its extension west being in South Lot 1 , Block 1 )- from an R-2, two family residence district, to an R-3, townhouse residence district, for the purpose of constructing eight townhome units on that parcel , finding, as did the Planning Commission that: 1 . The use of the property for townhomes would be compatible with the R-3 development in the surrounding area; 2. The applicant had proposed in his October 21 , 1985 letter, a copy of which had • been included in the November 19th Planning Commission and November 26th Council agenda packets, to provide landscaping, trees_, and shrubs in front of the project, and the Council agrees with the Planning Commission recommenda- tion, that, to separate the new construction from the traffic on Silver Lake Road, the land in front of the buildings be bermed in a manner similar to the St. Anthony Townhomes, just south of the Blanske project; and -7- 3. There was no opposition to the rezoning expressed during either the Planning • Commission hearing or Council consideration of the proposal , or to staff prior to those meetings. Motion carried unanimously. The matter of the proposed lot split in the Johnson Manor project had been dis- cussed briefly during the Council ' s October 22nd meeting. Eddie Fuerenstenberg, the proponent, was present but no f urther.input was required of him. Motion by Councilmember Ranallo and seconded by Councilmember Enrooth to approve the subdivision without platting which would permit the transfer of two feet of land from Lot 9 in the Johnson Manor project to Lot 8, resulting in Lot 9 (.2612- 34th Avenue N.E. ) becoming 78.95 feet wide and Lot 8 (.2608-34th Avenue N.E. ) being increased to 77 feet wide, to enable a better fit of structures on those two lots. In approving the lot split,. the Council finds, as did the Planning Commission, that: 1 . The proposed change would result in lots of more equal size in the project; 2. The change would only be minor; 3. By permitting the subdivision without platting, the City would be expediting the redevelopment of this tornado damaged addition; and 4. No objections to the lot split had been raised during the November 19th Planning Commission hearing, the November 26th Council consideration, or to staff prior to either meeting. Motion carried unanimously. Commissioner Bowerman indicated he would not anticipate any Council action would be required related to the last item on the Commission agenda, the question of a viable use of the Mikkelson lot east of the vacant Clark station property, since the Commissioners had been unable to give the owner any direction as to how he might develop .a 16 foot wide by 150 foot long lot which is zoned for a duplex. The Council concurred with that assumption. At 8:35 P.M. , the Mayor opened the public hearing to consider approval of the Multifamily .Rental Housing Program for the construction of 300 units of market rate rental housing for persons over 55 by Arkell Development Company for Phases IIB and III of the Kenzie Terrace Redevelopment Project, commenting that the notice of hearing had been published as required in the November 6, 1985 Bulletin. Mr. Childs summarized the sequence of actions which would be taking place almost simultaneously because staff had perceived the City' s ability to issue Tax Incre- ment and Housing Revenue Bonds might be affected by possible changes in federal legislation after December 31st. To expedite the project before that deadline, the Council had scheduled the hearing that evening to be followed by a public hearing conducted by the Planning Commission, Monday evening, December 2nd, on the Development Concept Plan changes in the current P.U.D. for the final phases • of the project which would allow the developers to construct 300 units of market rate rental housing for the elderly renting for an average rate of $800 a unit, in lieu of the same number of market rate condominiums which had been proposed -8- by the developers and approved by the City for that site several years ago. Public • input would also be sought during the Commission hearing related to the 33,000 square feet of service oriented commercial the developers were now proposing for the first building, proposed to be started in the spring of 1987. If the Commission reaction to these changes is positive, the Council would be acting on their recommendations the following evening, December 3rd, and the sale of;.the tax increment bonds would be held late in the afternoon the following day, .December 4th, Mr. Childs said. However, if approval is not gained for any portion of the proposal , the bond sale could be cancelled, he added. Before turning the discussion over to,:the developers, the Manager commented, that, as with the housing revenue bonds just issued for the Chandler Place project, the City would only be lending the City's tax exempt status to the investors to purchase the bonds tax free and allowing a lower rate of interest for the developers. Councilmember Ranallo indicated he had gotten a different perspective related to the urgency of action from what he had recently heard during a meeting of the League of Cities Federal Legislative Committee, which made him think December 31st might only be a "presumptive deadline" since there had been speculation that the change in legislation might not come as early as December. John Arkell , President, and Pat Brinkman of Arkell Development as well as the architect for the redevelopment project, Gary Tushie, were present and Mr. Brink- man responded to comments about the December 31st date being a "presumptive date" by agreeing that the Chairman of the Congressional Tax Committee had said the effective date of the legislative changes might be pushed forward to July 1st, • but adding that the uncertainty until after the first of the year, would effective- ly cause bond counsels. such a degree of discomfort that in all probability they would hesitate to advise issuance of bonds after December 31st and until the actual effective date is determined, whether it be December 31st or June 30th . Councilmember Makowske said she wanted assurance that the merchants in the exist- ing St. Anthony Shopping Center had been alerted to the possibility that there might be 33,000 square feet of commercial space added to this project. Mr. Childs told her the developers and staff would be meeting with the merchants the next day and would be seeking their reaction to the change at that meeting. Mr. Arkell commented that he perceived a Council decision on the commercial was not being sought that evening, but only the use of the City's power to issue housing bonds which would result in lower interest rates for the developers, which, he added, would in turn enable them to charge lower rental rates to make the project viable. To prove this point, the developer drew the Council 's attention to their neighbor, Roseville, where he said, similar projects of between 500 and 600 units are going up, with the anticipation of charging rents ranging from $1 ,000 to $1 ,500 for each unit. Mr. Arkell said his company' s ability to use revenue bonds for this project would make about $100 or $150 difference in the amount the developers would be passing through to the renters, in addition to the service package Arkell was also proposing. Councilmember Ranallo indicated he perceived the Council would only be giving preliminary approval to the issuance of the bonds that evening because the • action they would take December 3rd could be greatly affected by the reaction of the merchants the following day and of the Planning Commission the following Monday. Mr. Brinkman added that the final bond approval would not be given until the Council 's December 17th meeting. -9- No one present offered any input from the public to the proposal and the Mayor • closed the hearing at 8:50 P.M. for Council action. Motion by Councilmember Marks and seconded 'by Councilmember Makowske to adopt the resolution which would give preliminary approval to the issuance of Housing Revenue Bonds and the housing program for the final phases of the Kenzie Terrace Redevelopment Project. RESOLUTION 85-051 RESOLUTION RELATING TO THE ISSUANCE OF REVENUE BONDS PURSUANT TO CHAPTER 462C, MINNESOTA STATUTES, FOR THE PURPOSE OF FINANCING A MULTIFAMILY HOUSING DEVELOPMENT; GIVING PRELIMINARY APPROVAL TO THE- DEVELOPMENT, APPROVING A MULTIFAMILY HOUSING PROGRAM AND AUTHORIZING PREPARATION OF NECESSARY DOCUMENTS Motion carried unanimously. Councilmember Marks reported attendance at the November 21st meeting of the Sub- urban Youth Service Bureau Board of Director's meeting where the Bureau's programs directed toward adolescent grief and shoplifting were discussed. He indicated he had copies of brochures advertising counselling for those types of adolescent problems for the other Councilmembers. The Councilmember reported he had been issued a certificate of appreciation for his own service on the bureau at that • meeting. * Councilmember Ranallo reported the League of Minnesota Cities would be going to the National League of Cities conference in Seattle with the intention of object- ing to .the proposed elimination of both federal and state deductions for interest on bonds which would affect Minnesota and California taxpayers the most. The Councilmember said the perception of both the League and Coungressman Frenzel , who serves on that particular legislative committee, was that the law would not be changed, at least this year, but the Congressman had urged the League not to let down on its lobbying efforts against the elimination of the deduction. The Mayor reported Council participation in the groundbreaking ceremonies for both Chandler Place and Walker on Kenzie. Councilmember Enrooth said he had attended another Rice Creek Watershed District meeting where the final changes in the surface water management plan had been made for distribution to the cities shortly. Councilmember Makowske asked for Council support for her reelection to the Board of Directors of the Ramsey County League of Local Governments which would take place at the next meeting December 18th. She indicated anyone who attended that meeting would be allowed to vote. Mr. Childs was requested to prepare a letter to be signed by the Mayor and Councilmembers which would advocate Councilmember Makowske's reelection. • The Councilmember then reported she had attended the November 6th session of the Hennepin County Municipal Court (_St. Anthony Day) with Pat O'Meara who had handled the City's prosecutions that day and Councilmember Makowske said, in looking over -10- the November 8th report from the Hance firm it had almost seemed as though her presence in court that day might have had some effect on the severity of the • sentences and fines handed down by the judge at that session. Following a brief consideration of the Hance report, it and the October Fire Department and Financial reports were ordered filed as informational . Mr. Childs reported Planning Commissioners Franzese and Wagner had informed':him that they would like to be reappointed to the Commission next year and the Manager said there had been eight other applications to fill Commissioner Bjorklund' s seat as well . Council interviews of applicants were scheduled to be held during a work session at 7:00 P.M. , January 7th at which swearing in ceremonies would be held for Mayor Sundland and Councilmembers Ranallo and Enrooth who had been relected to off ice;__November 5th. The Manager indicated he had not yet received the names of those persons who would be requesting they be appointed to serve on the City's Chemical Awareness Com- mittee so that matter would have to be deferred to a later Council agenda. The City's Liquor Manager, Ray Nelson, was present to discuss his proposal that the empty space in the- liquor warehouse be utilized for a cheese and delicatessan shop to be operated by City employees. Mr. Childs indicated that, since he had not gotten the formal minutes of the work session with Mr. Nelson in writing, he would like to refresh the Council ' s memories about what happened at that meeting on what decisions would have to be made regarding the liquor operation because of the impending redevelopment of the shopping center in which the warehouse operation • is located. The Manager said the Council had at that meeting directed staff to proceed with a study of a number of alternative actions the City should take in regard to the liquor operation, whether it would be (a) the construction of a new location, (_b). leasing new facilities, or (c) whether or not to close one opera- tion. He told the Council he was not prepared to deliver those recommendations at that meeting, but did want to give Mr. Nelson an opportunity to present his suggestions for a cheese/deli type operation to be instituted at the SAV Liquor Warehouse in the meantime. The Manager said he perceived the person who had tried to operate a similar business in the space constructed for that purpose in the warehouse had been unsuccessful in the venture to some degree because the rebuilding of her other cheese and deli shop in tornado damaged Apache Plaza pre- vented her from giving her full attention to the warehouse operation. Since then he said, the space she had occupied had become an eyesore and had prompted many questions of why it wasn't being utilized by the City. The Manager concluded his overview of what had happened at the work session with Mr. Nelson by indicating staff was now seeking Council direction as to what was to be done. Mr. Nelson indicated he -agrees with the Manager's assessment of the appearance of the empty space and said he perceived the City now would have the opportunity to expand the space and put in a little cheese and deli with the proper person retained to run it. The Liquor Manager said he had attempted to lease the space to the Four Seasons but the Manager had backed out because he said he was overextended. In any event, Mr. Nelson added, it might be very difficult to lease a space which would have to be vacated in a year or so for a redevelopment project. He said it -would be too late to attempt to do anything before the holiday season and since the first three months of the year are always poor liquor sales periods anyway; • Mr. Nelson said he was suggesting no action be taken for at least four months . Mr. Nelson concluded his presentation by indicating he had come away from the work session with a strong impression that the Council certainly wanted to continue the .warehouse operation in another location and his proposal included taking the new project with them when the move was made. He said, in his own opinion, a little temporary food operation in that location wouldn't hinder any other facility, but rather, might improve another cafe's business by offering an alternative food service to attract more potential customers . Mayor Sundland said he had discussed the project with the Manager of the Town and Country Food store, suggesting the store might provide the warehouse operation with the food materials they might need and that person had indicated an interest in doing that even though the grocery store had recently started a deli service for its own customers . Mr. Nelson said the former operator of the warehouse cheese house had offered only cheeses for sale, which in his own opinion-, "just wouldn't cut it" . Instead, he perceived the potential for a successful combination cheese and sandwich shop, with beer or wine served with the sandwich, to 'accommodate all the people who would be coming into that area like the construction workers, etc. He said the hours of operation would be limited to only from 11 :00 A.M. to 8:00 P.M. week days at the latest, and Mr. Nelson said he hated to tear down the walls and try to do anything else with that space in the short time left for the warehouse to be down there. Councilmember Ranallo said unfortunately he had been unable to attend the work session where the proposal had been brought up before, but he had asked staff to convey the opposition he had then, and continues to retain, to the City getting into any type of retail business which would offer competition -to the private sector. He said it is his own personal philosophy that "when cities, the state, or the federal government get involved in any retail business, it starts to • destroy the free enterprise system this country is built on". Councilmember Ranallo indicated the City had been in the liquor business long before he was a resident in St. Anthony. However, he said, he certainly would support the continuation of the liquor operation now because, with the restrictions the state has placed on the City's levying abilities, he perceived no other source of revenue for replacing the $300,000 the City gets from the liquor business to pay its bills from now on, but he said, he would strenuously object to the addi- tion of any further retail to the current liquor operation. The Councilmember added that another reason he had for supporting the City's opera- tion of the liquor business- was that by doing so, the City could control that use. He then continued by saying This Council has been accused many times of being 'anti ' business", and to support that 'assumption, the Councilmember related his own experience with a businessman who had visited his home, who had stated, "You people with all your restrictive sign ordinances, goofy license requirements, etc. , have almost made i.t impossible for a business to exist in the City". In the same vein, Councilmember Ranallo recalled he had in the past opposed the City trying to sell water control devices for showers -to encourage less water usage, perceiving that could be handled instead by the City hardware stores.. If the .Liquor operation is permitted to expand its retail in the manner proposed by Mr. Nelson, the Councilmember wondered, -what's to stop the Fire Department from. requesting to sell fire alarms or the.Police Department from wanting to sell burglar alarms. The Councilmember said he would perceive the proposed shop would • .be in direct competition with a number of City cheese and deli shops which are already being operated not too far from the liquor warehouse. Councilmember Ranallo told Mr. Nelson he had been the first to approve the Speakeasy bar in the Stonehouse, -12- which he perceived had been a "disaster" and, he said, he had opposed the cheese • shop addition to the warehouse operation from the very beginning. Mr. Nelson responded by saying that he didn't feel that it had been the times and economy which had eventually made the Speakeasy less than successful and he indicated he perceived that rather than taking taxes away from the residents, the proposed operation would be adding to the City's revenues. He disputed another of the Councilmember's statements that the new operation would have to be kept completely separated from the City' s liquor business by saying the state had passed legisla- tion in 1978 which permitted the sale of food along with an off sale liquor operation. The Liquor Manager pointed to the Surdyk store where the owner had perceived the cheese and deli sales had been a big factor in his store' s success, as a reason, Mr. Nelson perceived the cheese and deli sales would enhance the liquor operation. Mr. Nelson said he was not promising any great increase in revenues from the proposed project which would only involve a 400 foot space, but he said, as the one who is responsible for raising those revenues, he believed, anything he could do to offset taxes would be a big plus. He said from his own perspective as a merchant, he had to do anything he can to meet the stiff competition he encounters in the current market. Councilmember Marks commented that there were already some food products like potato chips, soda pops, canned dips, and non-alcoholic wines and beers being sold in the City' s liquor operation nowwhich led him to believe the City was already in the non-alcoholic retail business already. • Mr. Nelson agreed, saying that the warehouse operation has a section devoted to only non-alcoholic beverages which has worked out only moderately well because those products are fairly expensive. However, he said it had always been his operation's policy to promote the use of non-alcoholic as well as alcoholic beverages. The Liquor Manager confirmed that the sale of food and pop which could be perceived as competition for the -grocery stores had been part of the liquor operation for as long as it had been in existance. Councilmember Makowske indicated that, of course, she was interested in increasing the liquor revenues,, but she could somewhat appreciate Councilmember Ranallo'-s perspective on competition with the private sector having been personally out- raged when the University, a tax exempt institution, had operated its own travel bureau which competed with private tax paying agencies. Councilmember Ranallo said he perceived his point of view was shared by a good number of people in- St. Anthony, most of whom would probably vote to get the City out of the liquor business until they realized that operation made $300,000 in revenues which they would have to make up in taxes if that source were taken away. Councilmember Marks told him he believed the Council'man's statement about the free enterprise system being destroyed was a little too strong because he per- ceived the little cheese and deli Mr. Nelson was proposing would only be an extension of what had been started a long time ago. Mr. Childs recalled that at the previous work session one of the factors supporting the operation which had been discussed had been the sale of non-salty wholesome • food products in conjunction with the sale of liquor to lessen the impact of the liquor. s -13- The Mayor indicated his own remembrance of the work session had been that the • Council had recognized that the same type of project had failed in that location and that Mr. Nelson had indicated he would not be recommending the project be tried again unless he was certain the City would make some money with it. Mayor Sundland then stated that he did not wish to be part of what the general public could perceive to be a disruptive debate about the merits or demerits of an activity in 400 square feet of retail . He also indicated he would not want to give the general public the impression that the Council perceived the liquor operation had been anything but beneficial to the welfare of the community. Mr. Nelson said he agreed that it wasn 't worth the controversy the discussion had started. He had only come to them with his proposal because he believed the liquor operation could do a better job than the business which had been in that space before. Mr. Nelson withdrew his proposal saying he had come to the Council only because he had been unable to lease that space because no one was really interested in starting a business there -that was going to be torn down eventually. It .was his suggestion that the Council look at his proposal again after the ware- house operation is relocated and said, he perceived the City could utilize the empty space for something else in the meantime. Councilmember Ranallo indicated he had certainly never meant to give the impression that he was in any way "anti=liquor" but, on the contrary, wanted the Liquor Manager to devote all his efforts to making the sale of liquor successful to the point where it would make $450,000 instead of only $300,000 for the City to offset taxes. • Councilmember Enrooth indicated he perceived that it had .been Mr. Nelson's goal all along to build up the liquor sales which everybody recognizes are not going to increase with present trends in the market'. He said he believed the Liquor Manager was only trying to wring every cent of revenue out of the liquor operation and believed he could enhance those efforts with his proposal . Mr. Nelson told the Council the City is doing well right now in the liquor business, but sales at the warehouse had droPPed the last few months, except for October when the" ncrea.se _in sales" taxes`-had prompted'peo7Te_to-stock ,up 'ohead• He said he knew of a number of municipal liquor. operations which were going private just because of the diminishing returns and he told Councilmember Ranallo he per- -ceived the assumption that liquor", not food, was where the profits would be made, was no longer true today. Councilmember Marks indicated he would feel more comfortable with having a "business plan" to work with which would estimate the revenues, costs, etc. of such an operation and the matter was deferred at least until the time when the rest of the staff study on alternatives for the liquor operation came in. There was a brief discussion about whether the City should have to pay the "voluntary assessment" requested by the League of Minnesota Cities to support the continuation of the League' s and the National Association of Housing and Redevelopment Officials' - tax increment finance study and lobbying efforts . The Mayor- said it might be thought of as just an extension of the fees to belong to the League. Councilmember Ranallo indicated that because of his membership on the League's Federal Legislation Committee, where he is pushing those lobbying efforts, he • would have to recommend City participation in that effort. The Councilmember indicated he agreed with Mr. Childs that a major effort was being put forth by the League to save tax increment financing perceiving this to be one of the last tools cities have for redevelopment. The Councilmember added • -14- that Mayor Latimer, a good Democrat, would be hand delivering the Committee's recommendation to the two state Republican Senators, Boschwitz and Durenberger, • pleasing with them to help the cities. Councilmember Marks indicated he perceived it would be very important for tax increment financing to be continued to give the cities some sense of being in control of their own futures and giving them the means of improving their own state and condition. Motion by Councilmember Marks- and seconded. by Mayor Sundland to approve payment of $227.05 to the League of Minnesota Cities. Motion carried unanimously. The Manager had distributed copies of the November 21st letter from the Metropolitan Pollution Control Agency: asking whether St. Anthony wanted_ to do its .own feasibility study to identify long-term water supply alternatives for the City in face of the Minnesota Health Department's concern about the rising levels of solvent contamination being detected in Well #4, or to have MPCA request $25,000 or $35,000 from EPA to have MPCA do the study for the City. 'Mr. Childs told Councilmember Makowske there was no certainty the City would be reimbursed for doing its own study. .and he added, the MPCA could conceiveably have to do another study anyway to -verify the City's figures. The Manager also told her the EPA would probably not accept .the City' s contention that some of the residents who use the Roseville water in the summer are less than enthusiastic about its quality as a reason for not selecting. such an alternative, if it proved the most cost effective- choice. • Motion by Councilmember Ranallo-and seconded by Councilmember Makowske to authorize the MPCA to request that the EPA give them the funds to conduct a feasibility study on water supply alternatives for St. Anthony. Motion carried unanimously. The Manager' s November update on the Ramsey County plans for County Road D this winter was accepted as informational . Motion by Councilmember Marks and seconded by Councilmember Ranallo to accept the low bid of $1 ,732 from Crysteel District, .Inc. , for the purchase of an eight foot Fischer snowplow for the City's one ton GMC truck in 1986, as recommended by the Public Works Director in his November 20th memorandum to the Council . Motion carried unanimously. Motion by Councilmember Ranal.lo and seconded by Councilmember Marks to adopt the resolution which authorizes the signing of the agreement with Ramsey County under which the City would continue to provide winter street maintenance on County roads this winter. RESOLUTION 85-048 A RESOLUTION AUTHORIZING THE MAYOR AND CITY MANAGER TO EXECUTE THE AGREEMENT BETWEEN RAMSEY COUNTY • AND THE CITY OF ST. ANTHONY FOR 1985-86 WINTER ROAD MAINTENANCE SERVICES Motion carried unanimously. Motion by Councilmember Marks and seconded by Councilmember Enrooth to adopt the • resolution authorizing the sale of bonds for the Chandler Place Project. RESOLUTION 85-049 RESOLUTION AUTHORIZING THE SALE AND ISSUANCE OF MULTIFAMILY HOUSING REVENUE BONDS (_ST. ANTHONY NURSING HOME PROJECT) , SERIES 1985, OF THE CITY, FOR THE PURPOSE OF FINANCING A MULTIFAMILY RENTAL HOUSING PROJECT, AND AUTHORIZING THE EXECUTION OF NECESSARY DOCUMENTS Motion carried unanimously. Motion by Councilmember Ranallo and seconded by Councilmember Marks to adopt the resolution which approves the amendment to the redevelopment plan for the Chandler Place which would provide for an alternative use of tax increments revenues for the bond resserve rather than to provide for the additional soil corrections costs encountered on the project property. RESOLUTION 85-050 A RESOLUTION APPROVING AMENDMENT NO. 1 TO THE REDEVELOPMENT PLAN FOR THE HOUSING AND REDEVELOPMENT AUTHORITY OF ST. ANTHONY, MINNESOTA, ENTITLED "CHANDLER PLACE REDEVELOPMENT PLAN AND TAX INCREMENT PLAN"; ORIGINALLY DATED OCTOBER 8, 1985 • Motion carried unanimously. Motion by Councilmember Ranallo and seconded by Councilmember Enrooth to adjourn the meeting at 9:49 P.M. for the meeting of the Housing and Redevelopment Authority which followed immediately. Respectfully submitted, Helen Crowe, Secretary Mayor ATTEST: City Clerk