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Approved Minutes 5-26-1999 SUMMARY MINUTES OF THE SAINT PAUL CITY COUNCIL Wednesday, May 26, 1999 - 3:30 - 5:00 P.M. Public Hearings 5:30 - 6:30 p.m. CITY COUNCIL CHAMBERS, 3RD FLOOR City Hall and Court House 15 West Kellogg Boulevard The meeting was called to order by Council President Bostrom at 3:33 p.m. Present- 7 - Benanav, Blakey, Bostrom, Coleman, Harris, Lantry, Reiter Absent - 0 CONSENT AGENDA (Items 1 - 23) Councilmember Lantry requested Item 11 be removed for discussion. Councilmember Harris moved approval of the Consent Agenda as amended. Yeas- 7 Nays - 0 FOR ACTION 1. Approval of minutes of April 21, 1999. Adopted Yeas - 7 Nays - 0 2. Claim of Larry Lipscomb. Referred to the Employee/Risk Management Office 3. Letter from the Citizen Service Office declaring 20 Douglas Street as nuisance property and setting date of Legislative Hearing for June 1, 1999 and City Council Hearing for June 9, 1999. 4. Administrative Orders: D001704 Authorizing payment, not to exceed $5,000.00, for relocation expenses for Tom Riddering, Building Code Official during the period May, 1999 to July, 1999. D001705 Authorizing payment, not to exceed $2,000.00 to Events by Design for food service for outside agencies participating in the Street Safe Officer Survival course. Noted as on file in the City Clerk's Office 5. Resolution - 99-436 - Approving the appointments of Sherri Mortenson Brown and Ray VinZant, and the reappointment of Dan Fleischhacker, by Mayor Coleman, to the Truth-In-Sale of Housing Board of Evaluators. Adopted Yeas - 7 Nays - 0 May 26, 1999 City Council Summary Minutes Page 2 6. Resolution - 99-437 - Approving the appointments of A. Emma Corrie and Amy Rudolph, and the reappointment of Brian McClung, by Mayor Coleman, to the Saint Paul Neighborhood Network Board of Directors. Adopted Yeas - 7 Nays - 0 7. Resolution - 99-438 - Approving the January 1, 1999 through December 31, 2000 Collective Bargaining Agreement between the City of Saint Paul and Local Union 1842, District Council 14 of the American Federation of State, County and Municipal Employees, AFL CIO. (To be laid over one week for adoption) Laid over to June 2 for adoption Yeas - 7 Nays - 0 8. Resolution - 99-439 - Approving the January 1, 1999 through December 31, 2000 Collective Bargaining Agreement between the City of Saint Paul and Local 2508, District Council 14 of the American Federation of State, County and Municipal Employees, AFL CIO. (To be laid over one week for adoption) Laid over to June 2 for adoption Yeas - 7 Nays - 0 9. Resolution - 99-440 - Approving the January 1, 1999 through December 31, 2000 Collective Bargaining Agreement between the City of Saint Paul and the City of Saint Paul Professional Employees Association. (To be laid over one week for adoption) Laid over to June 2 for adoption Yeas - 7 Nays - 0 10. Resolution - 99-441 - Approving a contract with Craig Ayers and Leonard, Street and Deinard, P.A. for labor consulting services. Adopted Yeas - 7 Nays - 0 11. (Discussed after the Consent Agenda) 12. Resolution - 99-443 - Finalizing City Council action taken April 7, 1999, granting the appeal of the District 7 Community Council to a decision of the Planning Commission approving a special condition use permit for CAPP Industries to allow operation of a Ryder Truck rental facility at 1061 University Avenue West. Adopted Yeas - 7 Nays - 0 13. Resolution - 99-444 - Transferring $15,000.00 from contingency to the City Attorney's Office Budget for a new criminal case management system. Adopted Yeas - 7 Nays - 0 14. Resolution - 99-445 - Changing the Rate of Pay for the classification entitled "Bridge Crew Leader." Adopted Yeas - 7 Nays - 0 May 26, 1999 City Council Summary Minutes Page 3 15. Resolution - 99-446 - Authorizing the proper City officials to reimburse Saint Paul residents who lost trees during the summer storms of 1998 half the cost of a new tree up to $200.00. Adopted Yeas - 7 Nays - 0 16. Resolution - 99-447 - Establishing a 1999 financing and spending plan in the Police Department for the Thomas/Dale Weed and Seed grant. Adopted Yeas - 7 Nays - 0 17. Resolution - 99-448 - Establishing a 1999 financing and spending plan in the Police Department for the Cops More Technology grant. Adopted Yeas - 7 Nays - 0 18. Resolution - 99-449 - Establishing a 1999 financing and spending plan in the Police Department for the Cops Network II grant. Adopted Yeas - 7 Nays - 0 19. Resolution - 99-450 - Approving the use of assessment financing for sewer connection charges (advance payment) for the property at 550 Arlington Avenue East. Adopted Yeas - 7 Nays - 0 20. Preliminary Order - 99-451 - In the matter of installation of above standard twin lantern style lighting system on East Seventh Street from Sinnen Street to Mounds Boulevard, and setting date of public hearing for July 7, 1999. (File #18897) Adopted Yeas - 7 Nays - 0 21. Preliminary Order - 99-452 - In the matter of operating costs for the above standard twin style street lighting system on East Seventh Street from Mounds Boulevard to Sinnen Street for the months of November 1, 1999, to December 31, 2000, and setting date of public hearing for July 7, 1999. (File #18898) Adopted Yeas - 7 Nays - 0 22. Preliminary Order - 99-453 - In the matter of sidewalk reconstruction on both sides of West Central Avenue from North Chatsworth Street to North Victoria Street; both sides of Charles Avenue from Arundel Street to Mackubin Street; both sides of Edmund Avenue from North Oxford Street to North Chatsworth Street; both sides of Fuller Avenue from North Chatsworth Street to North Victoria Street; both sides of Fuller Avenue from North Victoria Street to North Grotto Street; and the west side of North Victoria Street from West Central Avenue to Aurora Avenue, and setting date of public hearing for July 14, 1999. (File #S99087-S99092) Adopted Yeas - 7 Nays - 0 May 26, 1999 City Council Summary Minutes Page 4 23. Preliminary Order - 99-454 - In the matter of sidewalk reconstruction on both sides of South Milton Street from Randolph Avenue to James Avenue; both sides of East Idaho Avenue from Wheelock Ridge Road to Edgerton Street; and both sides of Walsh Street from East Hawthorne Avenue to East Orange Avenue, and setting date of public hearing for July 14, 1999. (File #S99093-S99095) Adopted Yeas - 7 Nays - 0 FOR DISCUSSION 11. Resolution - 99-442 - Approving the decision of the Legislative Hearing Officer on Property Code Enforcement Appeals for property located at 800 Third Street East, 2124 and 2130 Como Avenue, 2076 Como Avenue, 1899 Selby Avenue, 1761 Englewood Avenue, 384 and 388 Laurel Avenue, 1401-1403 Midway Parkway, and 1430 Englewood Avenue. Gerry Strathman stated the recommendation for 1401-1403 Midway Parkway should be changed to read "deny the appeal" as the owner has not made the progress he had indicated. Councilmember Lantry moved to deny the appeal on 1401-1403 Midway Parkway. Adopted as amended Yeas - 7 Nays - 0 (Note: this item was reconsidered later in the meeting.) 24. Resolution - 98-566 - Ordering the owner to remove or repair the building at 674 Wells Street within fifteen (15) days from adoption of resolution. (Legislative Hearing Officer recommends approval) (Laid over from February 24, 1999) Councilmember Lantry moved to lay over eight weeks at the request of Council President Bostrom. Laid over to July 21 Yeas - 7 Nays - 0 25. Resolution- 99-321 - Approving application for Auto Repair Garage and Second Hand Dealer- Motor Vehicle Licenses by Nasseh Ghaffari, dba Heartland Auto Sales, 1236 Arcade Street. (Legislative Hearing Officer recommends approval with conditions) (Laid over from May 12) Council President Bostrom stated that Bob Kessler of the Office of License, Inspections, and Environmental Protection, requested a one week layover as there are still issues to be resolved. Councilmember Reiter moved to lay over one week. Laid over to June 2 Yeas - 7 Nays - 0 May 26, 1999 City Council Summary Minutes Page 5 26. Report from the Department of Planning and Economic Development on the implementation over the last ten years of the City's Replacement Housing Policy, Chapter 93 of the Administrative Code. (Requested by the Council on March 24, 1999, C.F. 99-260) Brian Sweeney, Department of Planning and Economic Development (PED) appeared. He stated that in 1999, the Council passed Chapter 93. For four years through 1994, PED prepared annual reports. With the repeal of the State Replacement Housing legislation, PED did not submit the yearly reports, and the City Council did not request them. The City embarked on an emphasis of preserving affordable housing. As staff prepared the analysis of Chapter 93 it became clear that the focus of Chapter 93 was probably more narrow than the specific request of the Council. Chapter 93 only applies to housing commercial office and industrial development where the Housing and Redevelopment Authority (HRA) provides fmancing. It was clear Chapter that Chapter 93 does not apply to other City projects involving Parks, Public Works, Public Health, Code Enforcement, and schools. Over the last ten years, the numbers of units that were replaced were related to some of these areas. For example, the expanded roadways at Dale Street took out ten houses. The Jimmy Lee Recreation Center will take out 55 to 65 housing units. The school district has taken out a number of affordable housing units for expansion of public schools: Arlington High School, 22 units; Jackson School, 13 units; and York Achievement School, 56 units. Over the last ten years, there was a net increase of 168 units under Chapter 93 category. RECONSIDERED ITEM Councilmember Lantry moved to reconsider Item 11, 800 Third Street East. Roll Call Yeas - 7 Nays - 0 11. Resolution - 99-442 - Approving the decision of the Legislative Hearing Officer on Property Code Enforcement Appeals for property located at 800 Third Street East, 2124 and 2130 Como Avenue, 2076 Como Avenue, 1899 Selby Avenue, 1761 Englewood Avenue, 384 and 388 Laurel Avenue, 1401-1403 Midway Parkway, and 1430 Englewood Avenue. Councilmember Lantry moved to deny the appeal on 800 Third Street East. Yeas - 7 Nays - 0 DISCUSSION (CONTINUED) 27. Update by the Department of Planning and Economic Development on the proposed merger of the Saint Paul Workforce Development Program and the Ramsey County Job Training Program. (Monthly updates were requested by the Council on April 14) Craig Blakely, Department of Planning and Economic Development, appeared and stated everything is moving forward. The next monthly update will be presented at the Policy Session on July 21. May 26, 1999 City Council Summary Minutes Page 6 ORDINANCES 28. Final Adoption - 99-396 - An ordinance finalizing City Council action approving a petition for Friends School of Minnesota to rezone property at 1365 Englewood Avenue from RM-3 to OS-1 to allow expansion of the existing school. Councilmember Benanav moved approval. Adopted Yeas - 7 Nays - 0 29. Third Reading - 99-416 - An ordinance finalizing City Council action approving the application of Michael Nadeau to rezone property at 377 West Maryland Avenue from B-3 to R-4 to reflect current use of the property. (Public hearing held January 27, 1999) Laid over to June 2 for final adoption 30. Third Reading- 99-417 - An ordinance finalizing City Council action approving the application of Cayuga Street, LLC to rezone property at 199/201 Cayuga Street from RT-1 to I-1 to allow development of surface parking. (Public hearing held January 27, 1999) Laid over to June 2 for final adoption SUSPENSION ITEM Councilmember Harris moved for suspension of the rules and approval of the following resolution: Resolution 99-461 - Accepting the contribution of Capital City Partnership, Minnesota Street Rod Association, KOOL 108, St. Paul Pioneer Press, Radisson Hotel, Nemer Fieger & Associates, and the Friends of the Mounted Police in defraying costs of the "Classic Cruisers" every Friday and Saturday from June 4 through October 2, 1999, and declaring it a public purpose event. Adopted Yeas - 7 Nays - 0 (The meeting was recessed from 3:50 to 5:30) Present - 5 Absent - 2 (Blakey, Coleman - arrived later in the meeting) PUBLIC HEARINGS Council President Bostrom announced that the public hearing on Item 32 would be held at 6:00 p.m. when Councilmember Coleman arrives. May 26, 1999 City Council Summary Minutes Page 7 31. Resolution - 99-455 - Granting a sound level variance to Jane and Joe Anfang for a live music concert on June 4, 1999, from 7:00 p.m. to 9:00 p.m. on the front yard of 2099 Selby Avenue. No one appeared in opposition; Councilmember Benanav moved to close the public hearing and approval. Adopted Yeas - 5 Nays - 0 (Blakey & Coleman not present for vote) (Blakey and Coleman were not present for the votes on Items 34 through 44) 34. Third Reading- 99-395 - An ordinance to establish a distance limitation between establishments licensed to sell 3.2 percent malt liquor at off-sale. Robert Kessler, Office of License, Inspections and Environmental Protection(LIEP), appeared and urged the Council not to adopt this ordinance as he said there are no documented problems that this would address and it would be difficult to enforce. Mr. Kessler said he understands there are some issues and problems with a few isolated 3.2 license locations, but that is not a significant problem and a measure of this nature is not warranted. No one appeared in opposition; Councilmember Harris moved to introduce a substitute ordinance and to close the public hearing. Substitute introduced and laid over to June 2 for fmal adoption Yeas- 5 Nays - 0 35. Resolution - 99-425 - Making certain determinations and findings necessary for acquisition of a parcel at the northeast corner of Pelham Boulevard and Myrtle Avenue. (Public hearing continued from May 12) No one appeared in opposition; Councilmember Benanav moved to introduce an amendment and to close the public hearing. Amended and laid over to June 2 Yeas - 5 Nays - 0 36. Resolution - 99-335 - Ordering the owner to remove or repair the building at 659 Van Buren Avenue within fifteen (15) days from adoption of resolution. (Legislative Hearing Officer recommends approval) (Laid over from April 14) Gerry Strathman, Legislative Hearing Officer, stated that no one representing the property appeared at the Legislative Hearing. No one appeared in opposition; Councilmember Harris moved to close the public hearing and approval. Adopted Yeas - 5 Nays - 0 May 26, 1999 City Council Summary Minutes Page 8 37. Resolution - 99-456 - Ordering the owner to remove or repair the building at 310 George Street West within fifteen (15) days from adoption of resolution. (Legislative Hearing Officer recommends approval) Gerry Strathman, Legislative Hearing Officer, stated that no one representing the property appeared at the Legislative Hearing. Councilmember Harris moved to close the public hearing and approval. Adopted Yeas - 5 Nays - 0 38. Resolution- 99-419 - Concerning adverse action against the application of Gerald Grossman for an Auto Repair Garage and Second Hand Motor Vehicle Dealer's License at 349 545 University Avenue. (Uncontested) (Laid over from May 12) Virginia Palmer, City Attorney's Office representing the Office of License, Inspections and Environmental Protection(LIEP), appeared and requested this item be laid over to July 14 because Mr. Grossman made application for a special condition use permit. Councilmember Blakey indicated he had no opposition to a layover. Councilmember Reiter moved to lay over to July 14. Laid over to July 14 Yeas - 5 Nays - 0 39. Resolution- 99-421 - Concerning adverse action against the application for an Auto Body Repair Shop License by Richard Diaz, dba Rick Diaz Auto Services, 933 Atlantic Street. (Uncontested) (Laid over from May 12) Virginia Palmer, City Attorney's Office representing the Office of License, Inspections and Environmental Protection(LIEP), appeared and requested this matter be laid over to June 9 at the request of the applicant. She indicated that there may be a way to settle the matter without adverse action. Councilmember Harris moved to lay over to June 9. Laid over to June 9 Yeas - 5 Nays - 0 40. Resolution - 99-457 - Concerning adverse action against licenses held by Camdi Company, dba Willow Gate Restaurant, 767 Cleveland Avenue South. (Uncontested) Virginia Palmer, City Attorney's Office representing the Office of License, Inspections and Environmental Protection(LIEP), appeared and requested this matter be withdrawn because the applicant paid part of the license fees and set up a payment plan. Councilmember Harris moved to withdraw the resolution. Withdrawn Yeas - 5 Nays - 0 May 26, 1999 City Council Summary Minutes Page 9 41. Resolution - 99-458 - Concerning the application for a Second Hand Dealer-Motor Vehicle Parts license by Timothy S. Wilson, dba Payne Avenue Radiator & Tire Service, 933 Payne Avenue. (Uncontested) Virginia Palmer, City Attorney's Office representing the Office of License, Inspections and Environmental Protection (LIEP), appeared and stated the applicant came into the office on this date and provided all the necessary information for the license. Ms. Palmer requested this adverse action be withdrawn. Withdrawn Yeas - 5 Nays - 0 42. Public hearing to consider the report of the Administrative Law Judge (ALJ) concerning adverse action against licenses held by Michael Bartelmy, dba Mike's Towing, 847 Hudson Road. Virginia Palmer, City Attorney's Office representing the Office of License, Inspections and Environmental Protection(LIEP), appeared and stated the recommendation is for revocation of the license. The licenses were previously suspended for 30 days with 15 days stayed and there was another violation in January of this year. Mr. Bartelmy's conditions on the license are not being complied with and he is not doing anything to effectively deal with the problems, Ms. Palmer reported. Mr. Bartelmy admitted at the ALJ hearing that he does not count the cars on his lot on a regular basis and he does have outdoor storage. Given the number of adverse actions already taken, revocation of his license is a reasonable sanction, she said. Michael Bartelmy, owner, appeared and stated he had a fire at his business and had some items laying outside. About the same time, there was a snow emergency. The property is in reasonable condition at this time. He said that sometimes he has few cars and other times there is a larger number of vehicles. Councilmember Lantry moved to close the public hearing and approval. Adopted Yeas- 5 Nays - 0 Mr. Bartelmy requested his license be put on hold. He may retire in six months anyway. Councilmember Lantry moved to adopt the findings of fact, conclusions, and recommendations of the ALJ and revoke the license of Mike's Towing. Adopted Findings of Fact, Conclusions and Recommendation of the Administrative Law Judge (license revoked). Yeas - 5 Nays - 0 43. Final Order - 99-459 - In the matter of sidewalk reconstruction on the south side of Como Avenue from Kent Street to North Dale Street at 616 Como Avenue only, aka Easy Streets West Bar, and the east side of North Dale Street from Burgess Street to Front Avenue; the north side of Watson Avenue from South Syndicate Street to South Hamline Avenue at 1311 Watson Avenue only; the south side of East Fifth Street from Minnesota Street to North Robert Street, the east side of Minnesota Street from East Fourth Street to East Fifth Street, and the west side of North Robert Street from East Fourth Street to East Fifth Street at 322 Minnesota Street; and the south side of May 26, 1999 City Council Summary Minutes Page 10 West Fifth Street from North Wabasha Street to St. Peter Street at 350 St. Peter Street. (File #S99007-S99010) No one appeared in opposition; Councilmember Harris moved to close the public hearing and approval. Adopted Yeas - 5 Nays - 0 44. Final Order - 99-460 - In the mater of sidewalk construction and reconstruction in Wards 1, 2, 3, and 6. (File #S99017-599028) Councilmember moved to lay over File #S99023 and approval of the remaining items. Adopted as amended Yeas - 5 Nays - 0 (S99023 - East side of South Snelling Avenue from Ford Parkway to Highland Parkway laid over to June 9) RECONSIDERED ITEM 35. Councilmember Benanav moved to reconsider Item 35. Roll Call: Yeas - 5 Nays - 0 Donna Drummond, Department of Planning and Economic Development (PED), appeared and stated 2356 University Avenue, Limited Partnership, are the developers of a specialty building at Raymond and University. PED has been working with the developers to ford additional parking so more of the building can be developed for office space instead of office storage. PED has been working to acquire four parcels at 750 Pelham. Ms. Drummond showed the Council photographs. (Coleman arrived) Nel McClung, real estate broker, appeared and stated she has been managing the property at 2500 University Avenue. Ms. McClung fords the possibility of 30 new jobs an opportunity; however, she continues to struggle with the concept of taking land from one owner who has worked to create jobs in the community to give to another owner without a proven track record. She noted that Mr. Seiden was present at this meeting and Mr. Spagette lives in Illinois. They were interested in owning property after buying a company in the 1980's. At that time, they employed 28 employees locally. Fifteen years ago, they purchased the building at 2500 University Avenue, which will be affected by the taking of this land. The property was predominantly warehouse and storage. The property now houses 53 small businesses, all adding resources to the Midway area. In the last few years, Mr. Spagette and Mr. Seiden have spent $91,000 in upgrades. Seven years ago, they purchased 1821 University Avenue. Over the last seven years, $2 million in private funds have moved this project forward to almost an 80% occupancy rate. There are 143 small businesses contributing to the community. An estimated 300 jobs have been added to the community. May 26, 1999 City Council Summary Minutes Page 11 Ms. McClung went on to say that Ms. Jordan told her she needed a ten-year lease. Ms. Jordan was given a ten-year lease and is here tonight saying that is not good enough. Mr. Tison, Ms. Jordan's attorney, came up with an idea that since they already own Lots B and C, a lease is given to Lot D, while the City continues to figure out what will happen with Lot A. Both individuals should work to solve those needs. Ms. McClung asked that the Council reconsider taking this land from Mr. Seiden and Mr. Spagette. They have had land taken away from them before for City development. Jerry Seiden, owner, appeared and stated they have spent hundred of thousands of dollars renovating the building. The City has taken away their prime parking area and put them across the street, which is now getting very busy because of development and it is difficult for the tenants. Ms. Jordan will be unwinding her current partnership and then the building will be for sale, stated Ms. McClung. Paula Maccabee, 1961 Selby, appeared and stated she has been trying to have the special buildings redeveloped since 1990 but it has been difficult to get anyone to do the rehab. More than $4.5 million of public money has gone into this building. The public money will clean up the brush, put in a sidewalk, put in a retaining wall. The investors are local and committed to this area. This company designs websites and is one of the biggest producers in the country. These are good, technical jobs. It is difficult to ask high technical businesses to stay in the inner city, Maccabee said, and she urged the Council to proceed with eminent domain. Ms. McClung stated she met with Ms. Jordan's attorney and they came up with a possible solution: a lease with an option to buy. Councilmember Benanav stated he would prefer to reach an agreement. Negotiations have been going on for a number of months. The city could lose a business that can bring from 60 to 200 jobs. There has been a fair amount of private investment in this building, it is an empty parcel of land, and if they do not get the parking, the business will be lost to the suburbs. Mr. Bostrom suggested the group meet and attempt to work out something before the end of the meeting. Councilmember Benanav moved to lay over to the end of the meeting. Yeas - 6 Nays - 0 32. Third Reading - 99-383 - An ordinance designating the Coney Island Buildings as a Heritage Preservation Site. (Laid over from May 5) (A substitute ordinance will be introduced ) Councilmember Lantry introduced a substitute at the request of Council President Bostrom Yeas - 6 Nays - 0 May 26, 1999 City Council Summary Minutes Page 12 Bob Kessler, Office of License, Inspections, Environmental Protection (LIEP), appeared and stated that last summer, the Heritage Preservation Commission (HPC) discussed the issue of Items 32 and 33. The recommendation of the HPC and the Planning Commission was before the Council at this time. Brian Sweeney, Department of Planning and Economic Development (PED), appeared and gave a staff report. The Planning Commission incorporated the provisions within the Comprehensive Plan, the Saint Paul and Mississippi Development Framework, and the recent reuse studies that date back to 1980, 1992, and 1997. The discussion included the understanding that if the Coney Island was at a different site, the historic significance should be considered. Councilmember Harris asked if the Administration was supporting the designation and Mr. Kessler responded in the affirmative. Aaron Rubenstein, HPC staff person, appeared and stated the Commission found both buildings have historic and architectural significance to Saint Paul. One building was built in 1858, which is the oldest building downtown and the oldest in the City. Both buildings are significant as markers of the large German American community in Saint Paul and their involvement in the building and hostery trades in the early decades. These are two of the few 19th century buildings remaining on what has historically been one of the city's major thoroughfares. The 448 St. Peter building was a state arsenal in the final year of the Civil War: 1865-1880. The upper two floors contain the best preserved antebellum interiors of the Twin Cities. 448 St. Peter was built in 1888 as a hotel. The following people spoke in support of the ordinance: Steve Buetow, HPC Chair; Louie Arvanitis, owner, representing the Arvanitis family Mary Arvanitis, representing the Arvanitis family George Edwards, Executive Director of Preservation Alliance of Minnesota; Bill Englund, Pastor of the First Baptist Church; Jim Savatich, HPC organizer; Edward Rose, 1151 Matilda Street. The following people spoke in opposition to the ordinance: Larry Dahl, President of Chamber of Commerce Councilmember Harris moved to close the public hearing. Yeas - 6 Nays - 0 (Blakey not present for vote) Laid over to June 2 for final adoption May 26, 1999 City Council Summary Minutes Page 13 33. Third Reading - 99-384 - An ordinance designating the Seventh Place Buildings as a Heritage Preservation Site. (A substitute ordinance will be introduced) Councilmember Lantry moved to introduce a substitute ordinance Yeas - 6 Nays - 0 (Blakey not present for vote) Robert Kessler reported this nomination follows the same process. This is a recommendation by the Heritage Preservation Commission for designation and a review of the Planning Commission not for designation. Brian Sweeney, Planning and Economic Development (PED), reported the Planning Commission recommended against historic designation of the Seventh Place Properties. While the comprehensive plan gives some support for preservation of historic resources, its land use chapter is very specific. The plan places a high priority on economic development and job growth in the downtown. Wabasha is Saint Paul's main street and is characterized by numerous buildings of architecture and historic significance. It also recognizes there is an area of decline. The framework suggested to encourage people to live and work around Wabasha, establish a range of issues and activities along Wabasha, and encourage major corporations to open along Wabasha. Studies concluded the renovation of the Orpheum and/or the Seventh Place Residence would be extremely expensive. Over the years, two developers have defaulted on financing on the properties resulting in repossession by the Port Authority. Public assistance to redevelop the property included $2.4 million from the HRA Downtown Tax Increment District from 1991 to 1993. The property has substantial deferred maintenance and requires a new roof, new windows, and new electrical service at an estimated cost of$580,000. The Port Authority has put in $7,000 in maintenance. The conclusion of the Planning Commission is that the designation and preservation for Seventh Place Properties could be a major obstacle in redevelopment and would not serve a purpose consistent with the comprehensive plan, and may serve to continue to present situations negative to the surrounding area. Councilmember Coleman stated the framework also mentions housing and he asked if Seventh Place the only housing along Wabasha between Seventh and Kellogg. Mr. Sweeney responded in the affirmative. Councilmember Reiter asked is there is housing at the Lowry to which he received an affirmative response. Councilmember Harris questioned how much in taxes has gone into the property in the last 10 to 12 years. Mr. Sweeney responded that public assistance to redevelop the property is up to $2.4 million from the HRA. The Port Authority also has put additional dollars into it. Mr. Harris asked if the $2.4 million was to rehab the theatre. Mr. Sweeney responded a good deal of that was to rehab the facade at one point over the last eight years. He will provide information on this before the vote on June 2. Councilmember Benanav asked if the St. Paul Companies indicated they are not interested in that site at this point. Brian Sweeney responded that PED has taken the St. Paul Companies comments May 26, 1999 City Council Summary Minutes Page 14 in the paper at face value that they are no longer interested. If the Council designates Seventh Place as historic, Mr. Benanav asked what would prevent someone from coming forward with a plan to demolish it. Mr. Kessler responded it would be a very lengthy process. (Harris left and returned) Aaron Rubenstein, HPC staff person, reviewed the HPC's fmdings on the historic significance of the New Palace Theatre and St. Francis Hotel, now known as the Orpheum Theatre and Seventh Place Residence. They are architecturally significant and they have cultural significance as one of only two remaining downtown vaudeville movie theaters of the first part of the twentieth century and the sole Seventh Street survivor of the bustling entertaining district that once settled on Seventh and Wabasha Street. It is significant in terms of city planning and development. It is a mixed use building combining hotel, theater and retail spaces and a marker of old Seventh Street, formerly one of downtown's major thoroughfares. They are eligible for local designation as a heritage preservation site under Criteria 1, 4, 5 of Legislative Code Chapter 73. The following appeared in support of the ordinance: Steven Buetow, 1288 Como Boulevard East; George Edwards, Executive Director of Preservation Alliance of Minnesota; Doug Lamb, owner of CandyLand, 435 Wabasha Street North; Annette Blazek, 9 Seventh Place West #324; James Sazevich, 454 Smith Avenue North; James Sullivan, 531 Brainerd Avenue #2. The following appeared in opposition to the ordinance: Larry Dowell, President of Saint Paul Area Chamber of Commerce; Reverend Bob Battle; Xang Vang, 315 Aurora Avenue; Victor Gomez, 66 Ninth Street East, Suite 1605; Richard Wolfgram, 336 Robert Street North; Pastor Earl Miller, Progressive Baptist Church; Johnny Howard, 638 Van Buren Avenue. Councilmember Harris moved to close the public hearing. Yeas - 6 Nays - 0 Substitute laid over to June 2 for final adoption Councilmember Benanav moved to reconsider Item 35, close the public hearing, and layover for one week. May 26, 1999 City Council Summary Minutes Page 15 35. Public hearing closed and laid over to June 2 Yeas - 6 Nays - 0 Councilmember Lantry moved to adjourn the meeting Yeas - 6 Nays - 0 ADJO D T 7:45hhP..M. /yC Daniel Bostrom, Council President ATTEST: Minutes approved by Council Nancy d-, • Assistant Co.... 1 Secretary m/mce (-4 N 0 ‘,v ,%.- C) e).° C:( ) \ V, t‘ N 1 s� `�' '' c M ti N N yvl. ,(\' '. ,L - 4 ,x. u,k 2 \ 6 '� ` S 1 - w — ''3 s : s) \ a) N VA \ du i..� •) _, e5 • Z J ._ �� ' ' `� <�\ Al . d yc °4 J 1 f x 3 �. o z JLi ..��, . �? i \. k, J�