Approved Minutes 2-11-1998 SUMMARY MINUTES OF THE SAINT PAUL CITY COUNCIL
• Wednesday, February 11, 1998 - 3:30-5:00 p.m.
CITY COUNCIL CHAMBERS, 3RD FLOOR
City Hall and Court House
15 West Kellogg Boulevard
The meeting was called to order at 3:30 p.m. by Council President Bostrom.
Present - 7 - Benanav, Blakey, Bostrom, Coleman, Harris, Lantry, Reiter
Absent - 0
CONSENT AGENDA
Councilmember Harris requested Item 5, D001441, be laid over for one week.
Councilmember Harris requested Item 14 be laid over for one week.
Councilmember Blakey moved to approve the Consent Agenda as amended.
Yeas - 7 Nays - 0
FOR ACTION
• 1. Approval of minutes of November 5, 1997.
Adopted Yeas - 7 Nays - 0
2. Claims of Margaret Ballard, Richard Bearth, James Carlson, Richard and Gail Christian, Janet
Coleman, James Griesgraber, William Heek, Muriel Johanson, Kristin Lindquist, Charlene
Rafowitt, Saint Paul Neighborhood Energy Consortium, Karen Seaton, Scott Stankey, Theodore
Svea, David Thompson, Jamie VanZee, and Michael Warren.
Referred to Employee/Risk Management Division
3. Summons and Complaint in the matter of Wax `n Works vs. the City of Saint Paul.
Referred to the City Attorney's Office
4. Letter from the Office of License, Inspections and Environmental Protection announcing a public
hearing before the City Council on February 25. 1998 to consider the appeal of Michel & Scot
Taylor to a decision of the Board of Zoning Appeals denying a variance of the minimum lot size
requirements in order to add a fifth apartment unit to an existing four unit building at 1328 North
Dale Street.
5. Administrative Orders:
D001428 Amending the 1997 budget in the Office of Human Rights by transferring funds from
a staff vacancy to cover unanticipated expenditures.
• D001435 Amending the 1997 budget in the Department of Fire and Safety Services for the
Truth-In-Sale of Housing and Nuisance Housing Abatement activities for the Housing
Code Enforcement Division.
February 11, 1998 City Council Summary Minutes Page 2
• D001436 Addition of$1,140.00 to the contract for demolition/site clearance at 358 Erie Street.
D001437 Authorizing payment, not to exceed $15,000, to various vendors for expenses
associated with the Winter Carnival Reception on February 7, 1998.
D001438 Authorizing Lisa Nasseff to sign, on behalf of the Mayor, any contract under
$25,000.00.
D001439 Amending the 1997 budget in the Department of Planning and Economic
Development by approving 1997 financing for Downtown TIGO Refunding as a
transfer from HRA Tax Increment Fund.
D001440 Authorizing payment of$100.00 each to two architects for making presentations to
the Midway Development Collaborative at its February 3, 1998 meeting.
Noted as on file in the City Clerk's Office
D001441 Addition of$24,023.00 to the contract for Rice & Arlington Sports Dome Support
Building.
Laid over to February 18 Yeas - 7 Nays - 0
6. Resolution - 98-96 - Approving the January 1, 1997 - December 31, 1998 Agreement between the
City of Saint Paul and the Saint Paul Supervisors Organization. (To be laid over one week for
adoption)
Laid over to February 18 for adoption Yeas - 7 Nays - 0
IP7. Resolution - 98-97 - Approvingthe Memorandum of between
Agreement the City of Saint Paul
and Local Union #1842, District Council No. 14 of the American Federal of State, County and
Municipal Employees AFL-CIO allocating Water Meter Repairers to Grade 30 of AFSCME
Technical and changing the classification title to Water Meter Technician. (To be laid over one
week for adoption)
Laid over to February 18 for adoption Yeas - 7 Nays - 0
8. Resolution - 98-98 - Accepting a grant from the Minnesota Department of Public Safety for the
Railroad Island Weed and Seed Program and setting up spending authority for the grant money.
Adopted Yeas - 7 Nays - 0
9. Resolution - 98-99 - Accepting the State of Minnesota Auto Theft Prevention Program and setting
up spending authority for the Police Department.
Adopted Yeas - 7 Nays - 0
Councilmember Harris requested Gerry Strathman get more information on this item.
10. Resolution - 98-100 - Accepting the State of Minnesota appropriation for the Victim Intervention
Project and adopting a budget to establish spending authority.
Adopted Yeas - 7 Nays - 0
• 11. Resolution - 98-101 - Agreeing to hold Macalester College harmless for the City's use of
Macalester's track.
Adopted Yeas - 7 Nays - 0
February 11, 1998 City Council Summary Minutes Page 3
S12. Resolution - 98-102 - Directing the Division of Parks and Recreation to enter into an agreement
with the Ramsey County Sheriffs Office for its after school reading program.
Adopted Yeas - 7 Nays - 0
13. Resolution - 98-103 - Authorizing City officials to apply for grant funds through the Minnesota
Amateur Sports Commission (MASC).
Adopted Yeas - 7 Nays - 0
14. Resolution - 98-104 - Amending the Capital Improvement Budget for Capital Center Plaza
Reconstruction.
Laid over to February 18 Yeas - 7 Nays - 0
15. Resolution - 98-105 - Conveying easement rights to Viking Automatic Sprinkler for storm sewer
and watermain purposes.
Adopted Yeas - 7 Nays - 0
FOR DISCUSSION
16. Update by the Administration on the progress of the Electronic Computerized License Inspection
and Permit System (ECLIPS). (An update was requested by the Council on December 17, 1997)
• Councilmember Coleman moved to layover to February 25 at the request of Robert Kessler,
Office of License, Inspections, and Environmental Protection.
Laid over to February 25 Yeas - 7 Nays - 0
17. Update by the Department of Planning and Economic Development (PED) on a proposed model
for training 100 low income Saint Paul residents for hi-tech industry positions. (Sean Kershaw,
PED) (An update was requested by the Council on September 24, 1997)
Councilmember Blakey moved to layover to February 25.
Laid over to February 25 Yeas - 7 Nays - 0
18. Report by the Mayor's Administration, through the Director of Human Rights, on an action plan
to address housing discrimination in the City of Saint Paul. (A report was requested by the
Council on January 14. 1998. C.F. 98-31)
A report was disseminated to the Council.
Tyrone Terrill. Office of Human Rights. stated the Office of Human Rights is doing outreach in
the community so individuals will have better access to the investigating staff. Human Rights is
also doing more in the area of education and working with Fair Housing, which is a group of
agencies, realtors, and other organizations.
• Councilmember Blakey asked for suggestions to counteract housing discrimination. Mr. Terrill
responded that education is important because many people do not intentionally plan to
February 11, 1998 City Council Summary Minutes Page 4
• discriminate but do because of their own lack of knowledge. The Saint Paul Human Rights
ordinance was recently revised to add stronger language to allow Saint Paul to be eligible for fair
housing money. Presently, the ordinance is not compatible with state statutes. Mr. Blakey asked
if there would be a testing process to see if a difference has been made. Mr. Terrill responded
there will be tests done throughout the community. Metro Fair Housing Center already has a
testing mechanism of their own, but Mr. Terrill would like Human Rights to have its own testing
program.
Councilmember Harris asked about the application fees. He said he knew of one example where
someone was charged $150 to apply for affordable housing. Mr. Terrill responded that he has not
received a complaint about this practice. Mr. Harris stated he feels there may be a problem
nonetheless. Mr. Terrill stated part of the package will go to each Councilmember and their ward
to discuss housing and other forms of discrimination.
Mr. Terrill said they receive about 25 complaints a year. Councilmember Coleman asked how
many of those complaints were sustained. Mr. Terrill responded he did not have the exact number
but estimated that about 75% can be sustained. Most people do not want to remain in their
building after a complaint but want a monetary settlement. In response to a statement from Mr.
Coleman that there are not any hard numbers in the report and no enforcement mechanism, Mr.
Terrill said there is no particular company or individual discriminating.
• Councilmember Benanav feels there are more than 25 discrimination incidents in Saint Paul and
suggested putting up a sign in rental buildings about housing discrimination. Mr. Terrill
responded there are no laws that require apartment buildings to post that type of information.
Councilmember Lantry stated people may go to other agencies such as the Urban League and the
State of Minnesota with complaints and she suggested finding out what other agencies are doing
with enforcement. Much of the housing discrimination information is available through referral
agencies, Lantry said. Mr. Terrill said Minneapolis has low numbers of housing complaints as
well. Also, a referral agency will not voluntarily give out information.
Councilmember Blakey said there is no requirement for someone to give a reason for denying
housing to an applicant.
Council President Bostrom suggested the Council lay this over for three weeks in order to give
Mr. Terrill an opportunity to digest the comments and address them.
Councilmember Coleman moved to lay over to March 4 for additional information from Mr.
Terrill.
Laid over to March 4 Yeas - 7 Nays - 0
•
February 11, 1998 City Council Summary Minutes Page 5
• ORDINANCES
19. Final Adoption - 97-1568 - An interim ordinance preserving the status quo with respect to
advertising signs in the City of Saint Paul pending the completion of studies of possible
amendments to the City's comprehensive plan and zoning regulations relating to advertising signs.
(Substitute introduced and laid over from February 4)
Councilmember Benanav moved to introduce a substitute ordinance that says district councils are
the appropriate body to provide a special sign district and recognizes the authority of the City to
do that.
Substitute introduced and laid over to February 18 for final adoption
Yeas - 7 Nays - 0
20. Second Reading - 98-89 - An ordinance amending Chapter 33 of the Saint Paul Legislative Code
to correct obsolete language.
Laid over to February 25 for third reading/public hearing
21. Second Reading - 98-90 - An ordinance amending the definition section of Chapter 369 of the
Saint Paul Legislative Code.
Laid over to February 25 for third reading/public hearing
• 22. Second Reading - 98-91 - An ordinance amending Chapter 370 of the Saint Paul Legislative Code
correcting obsolete references and reducing the journeyman examination fees for trades other than
plumbers.
Laid over to February 25 for third reading/public hearing
23. Second Reading - 98-92 - Amending Chapter 409 of the Saint Paul Legislative Code to clarify the
distance restrictions between off-sale liquor establishments.
Laid over to February 25 for third reading/public hearing
Councilmember Coleman moved for suspension of the rules and approval of the following resolution:
Resolution - 98-117 - Requesting that the City Attorney's Office and the Finance Department
prepare a report with regard to the policies, expenditures and budget related to the hiring of
private legal and lobbying services on behalf of the City of Saint Paul for presentation to the City
Council on March 11, 1998.
Adopted Yeas - 7 Nays - 0
(The meeting was recessed from 4:05 to 5:30 p.m.)
Roll Call: Present - 7 Absent - 0
•
February 11, 1998 City Council Summary Minutes Page 6
• PUBLIC HEARINGS
24. Resolution - 98-15 - Approving application for On-Sale Malt (3.2) and Restaurant (A) Licenses by
Inside Sports, Inc. (Gerald Freeman), 1500 Rice Street. (ID#15406) (Laid over from February 4)
Withdrawn by Councilmember Reiter.
Yeas - 7 Nays - 0
25. Resolution - 98-33 - Approving application for Off-Sale Malt, Cigarette & Grocery C Licenses by
Ahmad Alkousa, dba Kings Market, 920 Selby Avenue. (ID #36792) (Laid over from February 4)
Councilmember Blakey presented a substitute resolution which had conditions placed on the license
and addressed his concerns about loitering around this property.
Kris Schweinler, License, Inspections and Environmental Protection (LIEP), appeared and stated she
talked to the attorney for the applicant and he indicated he would be present at this meeting to
address the Council about the conditions.
Ahmad Alkousa, 6800 West Old Shakopee Road, Bloomington, appeared. Mr. Ahmad talked about
the loitering issue saying there is a camera on site and many phone calls have been made to the
police when necessary. As a business owner, he said he can do nothing about the loitering.
Councilmember Blakey expressed deep concern about the loitering and that the owner should be
• calling the police on a regular basis. Kristine Schweinler stated the police do not ticket for loitering,
but can only tell people who are loitering to move along.
Council President Bostrom suggested laying this item over for one week to clear up some of the
language in the amendment as well as issues with the police department.
Councilmember Blakey moved to close the public hearing and lay over to February 18.
Substitute laid over to February 18 Yeas - 7 Nays - 0
26. Resolution - 98-106 - Approving application for a Malt Off Sale License by Elsie Mayard, dba
Frogtown Market, 631 University Avenue West. (ID #0024690)
Michael Samuelson, District 7 Planning Council. appeared and stated they recommend this license
application be investigated as they are concerned about the growth and proliferation of off sale malt
liquor. This particular property is located within 300 feet of a church and next door to the Catholic
Charities Center that has a large number of vulnerable people. District 7 would like to see that
single containers of liquor not be allowed to be sold.
Kris Schweinler responded that the application is for an off sale license: therefore, the law pertaining
to the distance of 300 feet from a church or school does not apply.
• Councilmember Blakey moved to lay over one week.
Laid over to February 18 Yeas - 7 Nays - 0
February 11, 1998 City Council Summary Minutes Page 7
• 27. Resolution - 98-107 - Approving application for Malt Off Sale, Grocery (C), and Cigarette/Tobacco
Licenses by Hammadeh Alkousa, dba Kings Market II, 842 White Bear Avenue North. (ID _
#0013819)
No one appeared in opposition; Councilmember Harris moved approval.
Adopted Yeas - 7 Nays - 0
28. Resolution - 98-108 - Approving application for a Liquor Off Sale License by Selby Wines &
Spirits, 774 Selby Avenue. (ID #19970000201)
No one appeared in opposition; Councilmember Blakey moved approval.
Adopted Yeas - 7 Nays - 0
29. Resolution - 98-109 - Approving application for a Second Hand Dealer-Motor Vehicle (1st) License
by Import Auto Enterprises, Inc., 830 Robert Street South. (ID #19970000049)
No one appeared in opposition; Councilmember Coleman moved approval.
Adopted Yeas - 7 Nays - 0
30. Resolution - 98-110 - Approving the decision of the Legislative Hearing Officer on Property Code
Enforcement Appeals for property located at 1865 Wilson Avenue, #305 (laid over from November
12, 1997), 635 Prior Avenue North, 708 Hague Avenue, 649 Grand Avenue, 203 Forbes Avenue,
various addresses on Inner Drive, Village Lane and Cleveland Avenue South; various addresses on
Inner Drive, 885 Cleveland Avenue South and 2099, 2105 Village Drive; 577 St. Clair Avenue, and
• 195 Exchange Street.
No one appeared in opposition; Councilmember Blakey moved approval.
Adopted Yeas - 7 Nays - 0
31. Appeal of Mary Dabney to a summary abatement order for property at 790 Laurel Avenue.
(Legislative Hearing Officer recommends denial) (Laid over from December 10, 1997)
No one appeared in opposition; Councilmember Blakey moved to lay over four weeks.
Laid over to March 11 Yeas - 7 Nays - 0
32. Appeal of Arthur Morrison to a summary abatement order for property at 1173 Bradley Street.
(Legislative Hearing Officer recommends denying the appeal but allowing the owner until February
9, 1998 to clean up the yard and until March 3, 1998 to remove the rear exterior stairs and the
storage shed).
No one appeared in opposition; Councilmember Reiter moved to deny the appeal.
Appeal Denied(per recommendation of the Legislative Hearing Officer)
Yeas - 7 Nays - 0
•
February 11, 1998 City Council Summary Minutes Page 8
• 33. Resolution - 97-1491 - Ordering the owner to remove or repair the building at 9 Acker Street West
within fifteen (15) days from adoption of resolution. (Legislative Hearing Officer recommends
laying over to the May 5, 1998 Legislative Hearings) (Laid over from December 10, 1997)
No one appeared in opposition.
Gerry Strathman, Legislative Hearing Officer, reported this property has been acquired by a bank
which needs more time to sell it. Public Health expressed no objection to this request at the
Legislative Hearing.
Councilmember Reiter moved approval of the Legislative Hearing Officer's recommendation.
Laid over to May 5 Legislative Hearing and May 13 City Council Meeting
Yeas - 7 Nays - 0
34. Resolution - 98-111 - Ordering the owner to remove or repair the building at 83 Douglas Street
within fifteen (15) days from adoption of resolution. (Legislative Hearing Officer recommends
approval)
Gerry Strathman, Legislative Hearing Officer, reported this property has been vacant since March of
1996 and there has been no contact with the owner.
No one appeared in opposition; Councilmember Coleman moved approval.
• Adopted Yeas - 7 Nays - 0
35. Resolution - 98-112 - Ordering the owner to remove or repair the building at 758 Lafond Avenue
within fifteen (15) days from adoption of resolution. (Legislative Hearing Officer recommends
approval)
Gerry Strathman, Legislative Hearing Officer, reported that the property was condemned in August
1997 and there is a mortgage and liens against the property. The heir to the property has not
indicated her intent.
No one appeared in opposition. Councilmember Blakey moved approval and stated he received a
call concerning the property on this date.
Adopted Yeas - 7 Nays - 0
36. Resolution - 98-113 - Ordering the owner to remove or repair the building at 1107 Suburban Avenue
within fifteen (15) days from adoption of resolution. (Legislative Hearing Officer recommends
allowing the owner four months to complete rehabilitation provided a S2.000 bond is posted by
noon February 11, 1998)
Gerry Strathman, Legislative Hearing Officer, reported that the bond was posted. The owners
purchased this property and found it was in a more serious state of disrepair than they originally
• thought. They reported that they have nearly completed the rehabilitation and are almost ready for
another code compliance inspection.
February 11, 1998 City Council Summary Minutes Page 9
• Councilmember Lantry moved approval of the Legislative Hearing Officer's recommendation.
Councilmember Harris asked about the summary abatements for yard work and snow removal.
Reneta Weiss, Public Health, appeared and responded the most recent summary abatements were
from December and the owner acted on those immediately.
Adopted as amended (per recommendation of the Legislative Hearing Officer)
Yeas - 7 Nays - 0
37. Resolution - 98-114 - Ordering the owner to remove or repair the building at 2125 Waukon Avenue
within fifteen (15) days from adoption of resolution. (Legislative Hearing Officer recommends
laying over to the May 5 Legislative Hearings)
Councilmember Lantry moved approval of the Legislative Hearing Officer's recommendation.
Laid over to May 5 Legislative Hearing and May 13 City Council Meeting
Yeas - 7 Nays - 0
38. Resolution- 98-76 - Approving public acquisition of 915-917 Ashland Avenue, Summit University
District 8. (Laid over from February 4)
Councilmember Blakey stated the owner of this property lives in Illinois and has been unresponsive
• to phone calls and letters. The roof has been open for some time so there is concern about the
structural integrity. He said there is interest in saving the building; however, the issue is the value
and how to obtain it legally without spending too many public dollars. Council President Bostrom
suggested the Housing and Redevelopment Authority (HRA) and Planning and Economic
Development (PED) be contacted to look at the property.
Cindy Carlson, PED, appeared and stated that pictures of the house were sent to an appraiser and the
appraiser felt the property would have a negative value due to the inside condition. The appraised
value of the land is between$8,000 and $10,000.
Phil Byrne, Assistant City Attorney, stated there is a process for taking the property by eminent
domain but there is no statute or ordinance which allows government to go into a private property to
appraise it for rehabilitation work. Mr. Byrne explained the eminent domain process.
Councilmember Harris asked if there was an order for demolition. Gerry Strathman responded that
there was an order to demolish the house in 1996 but since then there was community interest in
rehabilitating the building, and the order was withdrawn. The home has been vacant for at least four
years. Mr. Harris further questioned if there has been an offer to buy it. Phil Byrne said there are
liens on the property and an inability to untangle who is the actual owner.
Curt Miller. PED, appeared and stated there are about three individuals who are interested in
• rehabilitating the property, but there is presently no way to obtain the right to access. Phil Byrne
noted that there is no justification for going into the building.
February 11, 1998 City Council Summary Minutes Page 10
• Councilmember Blakey moved to lay over four weeks and requested that PED work with interested
parties on the issue.
Laid over to March 11 Yeas - 7 Nays - 0
39. Resolution - 98-115 - Approving the vacation of a part of the east-west alley in Block 2, Mackubin
and Marshall's Addition and to release certain utility easements therein.
Tuan Joseph Pham, owner of Capitol Market at 478 University Avenue, appeared and requested
approval to close the alley for a parking lot to prevent crime. He indicated his neighbors were in
support.
No one appeared in opposition.
Councilmember Blakey moved approval.
Adopted Yeas - 7 Nays - 0
40. Resolution - 98-116 - Approving District Energy's and District Cooling's request to amend the
heating and cooling rates.
Jim Snyder, Accounting Division, appeared and recommended approval.
No one appeared in opposition; Councilmember Blakey moved approval.
• Adopted Yeas - 7 Nays 0
41. Final Order - 98-38 - In the matter of improving the alley in Block 19, Merriam Park Addition
(bounded by Iglehart, Wilder, Carroll and Moore) by grading and paving with bituminous material.
(File#18865) (Laid over from January 14)
No one appeared in opposition; Councilmember Coleman moved to lay over two weeks.
Laid over to March 11 Yeas - 7 Nays - 0
42. Final Order- 98-39 - In the matter of improving the alley in Block 19, Merriam Park Addition
(bounded by Iglehart, Wilder, Carroll and Moore) by grading and paving with bituminous material.
Also, condemning and taking an easement in the land necessary for the slopes, cuts and fills in the
grading and paving of said alley. (File #18865-S) (Laid over from January 14)
No one appeared in opposition: Councilmember Coleman moved to lay over two weeks.
Laid over to March 11 Yeas - 7 Nays - 0
43. Public hearing to consider the appeal of Baillon Company to a decision of the Heritage Preservation
Commission (HPC) denying approval of a permit to demolish the Crane Building at 281 East Fifth
Street (Lowertown).
Aaron Rubenstein, License. Inspections and Environmental Protection (LIEP). appeared and stated
• the owner of the Crane Building sought approval from the HPC to demolish the building. At the
meeting, Paul Baillon and another person spoke in favor of the demolition and four people spoke in
opposition. The HPC voted unanimously to deny approval of the demolition permit.
February 11, 1998 City Council Summary Minutes Page 11
• Paul Baillon, representing Baillon Companies, appeared and stated he had requested that this matter
be laid over so that he could prepare further; however, his request was denied. Phil Byrne, Assistant
City Attorney, responded that the Council is not obligated to grant a continuance. Councilmember
Coleman noted that the decision of the HPC was made in December, notice of the hearing on this
date went out some time ago, and there was no need to continue the hearing.
Paul Baillon stated the Crane Building was purchased in 1978 and Baillon Company has made an
extensive effort to lease, develop, rehabilitate, or sell the building. A lot of uses for the building
have been considered: rehabilitating it themselves, looking at historic tax credit, facade easements,
etc. Experts have been employed in the areas of architecture, consulting, and engineering. For
most of the last ten years, the building has remained empty producing zero rent with two exceptions.
The City is now requesting rainleaders be disconnected which will cost $20,000. The Baillon
Company would like to make some use of the property and eliminate the economic losses. They
would like to take the building down and use the lot for parking. They have explored combining the
site with the parking lot they presently own to the north of the building for a two layered parking
facility with a net increase of 120 more parking spots. This would be done with private financing at
no cost to the City.
Councilmember Lantry asked what the estimated market value of the property is to which Mr.
Baillon responded$207,000. Councilmember Benanav pointed out that the property has been listed
for sale at $1.4 million and he asked Mr. Baillon if he has tried to sell it for less than $1.4 million.
• Mr. Baillon responded not in the recent past, but the building has been offered for lease at $1.50 per
foot which is a very reasonable rental rate for Saint Paul and no interest was shown by anyone.
Paul Baillon discussed the errors made at the HPC hearing. The HPC said the demolition may
physically jeopardize surrounding buildings. This contradicts the staff report, which says there will
not be a detrimental effect. The HPC report said economic information was not provided, but
information was provided that the building is losing money. The HPC committed error in factoring
the asking price for the building. The HPC improperly noted Baillon Co. did not supply a net figure
after tax deductions of how much was lost. There were comments that there were hundreds of
parking spots available. This is not true because there is a waiting list for the parking lot his
company owns. It was misstated that there would be 28 to 29 stalls if the building was made in to a
parking lot. Mr Baillon's computations are that there would be 35 stalls.
The HPC stated there was a high price on the building: however, that is not a relative criteria within
the HPC review procedures. The HPC said the applicant cannot reasonably claim ownership of the
building is an economic hardship and the applicant is responsible for that because the elevator does
not work. building permits have not been issued and work has not been done on the building. Mr.
Baillon stated this is contrary to testimony he had given as repair work had been done on the boiler
and the roof as well as other work. There needs to be a tenant before they would fix the elevator and
turn the heat on. The HPC further stated that comparable buildings in Lowertown are selling for S2
to S20 per square foot. There was no foundation laid for that number.
February 11, 1998 City Council Summary Minutes Page 12
• Councilmember Harris asked what the bid was for demolition. Mr. Baillon responded $145,000.
Mr. Harris noted that the staff report indicated it would cost $112,000. Mr. Harris asked Mr. Baillon
what he thought the building was worth to which he replied $1.4 million.
Charles Skreif, 773 Goodrich Avenue, appeared in support of the HPC decision. He said Mr.
Baillon did not supply the HPC with information on the 35 parking spots. PED supplied the number
of spaces based on the square footage which amounts to a 2% increase in available parking. A
rehabilitated Crane Building could generate significant property taxes. If developed as light
industrial and warehouse space, the County Assessor estimates annual taxes in the range of$43,000.
Higher cost office space use could multiply that figure twice over. A parking lot would generate
$8,700 a year in property taxes. He said the applicant has not explained the basis for his price of
$1.4 million. Testimony from other witnesses indicated the market value is between $119,000 and
$595,000 and the County assesses the property at $207,000. Testimony before the HPC indicated
the reason the applicant cannot rent the building is because the building is without heat and the
elevator is broken. The applicant argued the building is an economic burden. The HPC noted that
the applicant has not pulled a building permit in 20 years. A building permit is required when work
is over $300. The applicant argues that the property cannot be redeveloped, however, he supplied
no information on this.
Weiming Lu, Lowertown Redevelopment Corporation, appeared and spoke in support of the HPC
decision. When the Lowertown program was started, many of the buildings were empty and
• deteriorating. Now, almost three-fourths of the buildings have been rehabilitated and the Crane
Building is in better shape than some of the others were. More than $420 million has been put into
Lowertown and the tax base has been broadened four times. There are 3,000 people living there and
8,000 people working there. There are ways to save these buildings and put them to good use, he
said. There are at least two offers to purchase this building. Mr. Lu has contacted Mr. Baillon and
would like to work with him.
Michael Koop, Minnesota Historical Society, appeared and said he would like the appeal denied.
This building is listed on the National Register of Historic Places and is designated as part of the
Lowertown Historic District. Turning the building into a parking lot does not make economic sense,
Mr. Koop said.
Brian Gorecki, Artspace Projects, appeared. He noted that the Tilsner Building was once scheduled
for demolition as well for a service parking lot and the same arguments were made. Mr. Gorecki
urged the Council to not allow demolition of the Crane Building.
Councilmember Coleman moved to close the public hearing.
Yeas - 7 Nays - 0
•
February 11, 1998 City Council Summary Minutes Page 13 --
IICouncilmember Coleman moved to deny the appeal and uphold the findings of the HPC. He said it
is proper for the HPC to consider the economics and questioned the $1.4 million selling price. He
said that parking lots cannot be developed at the expense of demolishing historic buildings
Motion of Intent - Appeal Denied Yeas - 7 Nays - 0
44. Public hearing to consider a petition which alleges a public nuisance at 556-558 Blair Avenue.
(Public hearing will be laid over to March 11, 1998)
Councilmember Blakey moved to lay over to March 11.
Public hearing laid over to March 11 Yeas - 7 Nays - 0
Councilmember Harris moved to adjourn the meeting.
Yeas - 7 Nays - 0
AD U ED AT 7:05 P.M.
i,,,,,
Daniel Bostrom, Council President
• ATTEST:
-lr Minutes approved by Council
Nancy An son \P S \ °i\C S'
Assistant Council Secretary
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