Approved Minutes 1-29-1997 SUMMARY MINUTES OF THE SAINT PAUL CITY COUNCIL
Wednesday, January 29, 1997 - 3:30 PM
CITY COUNCIL CHAMBERS, 3RD FLOOR
City Hall and Court House
15 West Kellogg Boulevard
The meeting was called to order by Council President Thune at 3:42 p.m.
Present - 6 Absent- 1 (Rettman arrived shortly after roll call)
CONSENT AGENDA
Councilmember Megard requested Item 45 be laid over for two weeks.
Councilmember Bostrom moved approval of the Consent Agenda as amended.
Yeas - 7 Nays - 0
FOR ACTION
1. Approval of minutes of December 11 and December 18, 1996.
Adopted Yeas - 7 Nays - 0
2. Claims of Carl Bolander & Sons Co., Kendell Coker, Kurtis Hallstrom, Beverly Jones, Alan
Kaup, Maryann Kinning, Bonnie Kollmann, Steven Nelson, Maria Maldonado-Pareja, Rick
Schumann, Timothy Trooien, Ia Vang, Neng Yang, and Chalmer Zabrok.
Referred to Risk/Employee Benefit Management Division
3. Complaint and Jury Demand in the matter of Alter Trading Corporation vs. the City of Saint Paul.
Referred to the City Attorney's Office
4. Notice of Filing Report of Commissioners and Affidavit of Service in the matter of the Port
Authority of the City of Saint Paul vs. the City of Saint Paul, et al.
Referred to the City Attorney's Office
5. Letter from the Minnesota Department of Human Rights in the matter of Robert Burks vs. the
City of Saint Paul Police.
Referred to the City Attorney's Office
6. Letters from Saint Paul Public Health declaring 689 Conway Street, 1030 Oxford Street North,
and 608 York Avenue as "nuisance properties", and setting date of Legislative Hearings for
February 4, 1997 and City Council Hearings for February 12, 1997.
January 29, 1997, City Council Summary Minutes Page 2
7. Letter from Saint Paul Public Health declaring 1134 Edgerton Street as "nuisance property." (For
notification purposes only; public hearing will be scheduled at a later date if necessary.)
8. Letter from the Office of the City Attorney announcing a hearing before an administrative Law
Judge on February 14, 1997, 9:30 a.m., Room 41 St. Paul City Hall, to consider adverse action
against licenses held by James Kennedy, dba Kennedy Pharmacy, 334 Robert Street North.
9. Letter from the Office of the City Attorney announcing a public hearing before the City Council
on February 5, 1997, concerning adverse action against licenses held by American & Asian
Grocery, 33 George Street East. (Uncontested)
10. Letter from the Office of the City Attorney announcing a public hearing before the City Council
on February 5, 1997, concerning adverse action against licenses held by Thomas & Mary Silva,
dba El Burrito Market & Bakery, 175 Concord Street. (Uncontested)
11. Letter from the Office of the City Attorney announcing a public hearing before the City Council
on February 5, 1997, concerning adverse action against licenses held by Monkey Boys, Inc., dba
Dixie's Bar & Smokehouse Grill, 695 Grand Avenue. (Uncontested)
12. Letter from the Office of the City Attorney announcing a public hearing before the City Council
on February 5, 1997, concerning adverse action against licenses held by Meg-Ali, Inc., dba
Gabe's by the Park, 991 Lexington Parkway North. (Uncontested)
13. Letter from the Office of the City Attorney announcing a public hearing before the City Council
on February 5, 1997, concerning adverse action against licenses held by Grand Tavern, Inc., 656
Grand Avenue. (Uncontested)
14. Letter from the Office of the City Attorney announcing a public hearing before the City Council
on February 5, 1997, concerning adverse action against licenses held by Joseph G. Bienat, Jr.,
dba J & L Tobacco, 425 Robert Street North. (Uncontested)
15. Letter from the Office of the City Attorney announcing a public hearing before the City Council
on February 5, 1997, concerning adverse action against licenses held by Utecht Foods, Inc., dba
Jubilee Foods, 2481 7th Street West. (Uncontested)
16. Letter from the Office of the City Attorney announcing a public hearing before the City Council
on February 5, 1997, concerning adverse action against licenses held by Sophy Lim, dba Jubilee -
St. Marie's, 101 5th Street East, #221. (Uncontested)
17. Letter from the Office of the City Attorney announcing a public hearing before the City Council
on February 5, 1997, concerning adverse action against licenses held by Just Truffles, Inc., 350
Market Street. (Uncontested)
18. Letter from the Office of the City Attorney announcing a public hearing before the City Council
on February 5, 1997, concerning adverse action against licenses held by Moiz Akhtar, dba Korner
Store, 53 Cleveland Avenue South. (Uncontested)
January 29, 1997, City Council Summary Minutes Page 3
19. Letter from the Office of the City Attorney announcing a public hearing before the City Council
on February 5, 1997, concerning adverse action against licenses held by Pearson, Inc., dba
Marshall & Cretin Standard, 2178 Marshall Avenue. (Uncontested)
20. Letter from the Office of the City Attorney announcing a public hearing before the City Council
on February 5, 1997, concerning adverse action against licenses held by Peter Witt, dba Maryland
Avenue Unocal, 406 Maryland Avenue East. (Uncontested)
21. Letter from the Office of the City Attorney announcing a public hearing before the City Council
on February 5, 1997, concerning adverse action against licenses held by Merlin Richardson, dba
Mike's Downtown Standard, 542 Robert Street North. (Uncontested)
22. Letter from the Office of the City Attorney announcing a public hearing before the City Council
on February 5, 1997, concerning adverse action against licenses held by Morelli's Discount
Liquor, 535 Tedesco Street. (Uncontested)
23. Letter from the Office of the City Attorney announcing a public hearing before the City Council
on February 5, 1997, concerning adverse action against licenses held by Thai Yang, dba
Neighbor's Grocery Store, 469 Anita Street. (Uncontested)
24. Letter from the Office of the City Attorney announcing a public hearing before the City Council
on February 5, 1997, concerning adverse action against licenses held by Parrish's, Inc., 2176 7th
Street West. (Uncontested)
25. Letter from the Office of the City Attorney announcing a public hearing before the City Council
on February 5, 1997, concerning adverse action against licenses held by Patricia Karels, dba Pat's
Smoke Shop, 55 5th Street East. (Uncontested)
26. Letter from the Office of the City Attorney announcing a public hearing before the City Council
on February 5, 1997, concerning adverse action against licenses held by Shinder Book News,
Inc., 389 Wabasha Street North. (Uncontested)
27. Letter from the Office of the City Attorney announcing a public hearing before the City Council
on February 5, 1997, concerning adverse action against licenses held by Crown Coco, Inc., dba
Smith Avenue E-Z Stop, 778 Smith Avenue. (Uncontested)
28. Letter from the Office of the City Attorney announcing a public hearing before the City Council
on February 5, 1997, concerning adverse action against licenses held by Snyder Drug, 2083 Ford
Parkway. (Uncontested)
29. Letter from the Office of the City Attorney announcing a public hearing before the City Council
on February 5, 1997, concerning adverse action against licenses held by SuperAmerica #4414,
2065 Randolph Avenue. (Uncontested)
January 29, 1997, City Council Summary Minutes Page 4
30. Letter from the Office of the City Attorney announcing a public hearing before the City Council
on February 5, 1997, concerning adverse action against licenses held by Tom Thumb Market
#118, 626 Larpenteur Avenue West. (Uncontested)
31. Communication from Saint Paul Animal Control dated January 21, 1997, announcing a request
from the University of Minnesota Research Lab for unclaimed dogs and cats.
32. Administrative Orders:
D001112 Budget transfer to release a portion of the authority from the Mayor's Contingency
and provide the budget for the approved objects within the Innovations Fund.
D001113 Extending the contract time for the Albert-Eleanor Storm Sewer and Paving Project.
D001114 Addition of$359,642.13 to the contract for the Albert-Eleanor Sewer and Paving
Project.
D001115 Addition of$85,751.62 to the contract for Davern Outlet Phase B.
D001116 Addition of$124,251.33 to the contract for the Hampden-University Sewer
Separation Project.
D001117 Moving West Side NHS funding to a new project code in the Department of Planning
and Economic Development Grants Management.
D001118 Addition of$162,652.00 to the contract for the Hazelwood-McLean Sewer and
Paving Project.
D001119 Addition of$122,687.41 to the contract for Davern Outlet Phase C.
Noted as on file in the City Clerk's Office
33. Resolution - 97-27 - Approving the reappointments of Katherine Barron, Sister Frances Mary
Benz, Mark Flahavan, Dennis Gerhardstein, Harold Hebl, Kenneth Lawrence, Dean Lemke,
Nicole Otto, Steven Sarrazin, Richard Taylor and Jamie Warndahl, and the appointments of
Jacqueline Heintz, Michelle Johnson, Greta Brockhausen Michaels and Jane Royse, by Mayor
Coleman, to the Advisory Committee on Aging. (Laid over from January 22 for adoption)
Adopted Yeas - 7 Nays - 0
34. Resolution - 97-28 - Approving the reappointments of Brian Alton and Frank Scherman, by
Mayor Coleman, to the Board of Zoning Appeals. (Laid over from January 22 for adoption)
Adopted Yeas - 7 Nays - 0
35. Resolution - 97-29 - Approving the reappointment of Terry Garvey, by Mayor Coleman, to the
PHA-City (HRA) Pension Plan Administrative Committee. (Laid over from January 22 for
adoption)
Adopted Yeas - 7 Nays - 0
36. Resolution - 97-30 - Approving the reappointment of Councilmember Roberta Megard, by Mayor
Coleman, to the Ramsey County League of Local Governments. (Laid over from January 22 for
adoption)
Adopted Yeas - 7 Nays - 0
January 29, 1997, City Council Summary Minutes Page 5
37. Resolution - 97-31 - Approving the reappointment of Ruth Appelhof, by Mayor Coleman, to the
Saint Paul Cultural Capital Investment Program. (Laid over from January 22 for adoption)
Adopted Yeas - 7 Nays - 0
38. Resolution - 97-32 - Approving the appointment of Councilmember Mark Mauer, by Mayor
Coleman, to the Water Board of Commissioners. (Laid over from January 22 for adoption)
Adopted Yeas - 7 Nays - 0
39. Resolution - 97-33 - Approving Amendment No. 2 to the 1994-1996 Collective Bargaining
Agreement between the City of Saint Paul and the Saint Paul Professional Employees Association.
(Laid over from January 22 for adoption)
Adopted Yeas - 7 Nays - 0
40. Resolution - 97-64 - Approving the appointments of Dr. Mary Thornton Phillips and Amy
Stedman, by Mayor Coleman, to the Saint Paul Workforce Development Council. (To be laid
over one week for adoption)
Laid over to February 5 for adoption
41. Resolution - 97-65 - Approving the appointment of Cathy Nordin and the reappointments of
Carole Faricy, Litton Field, Jr., Anne Geisser, Frank Gurney, Richard Kramer, and Dick
Nowlin, by Mayor Coleman, to the Saint Paul Planning Commission. (To be laid over one week
for adoption)
Laid over to February 5 for adoption
42. Resolution - 97-66 - Approving the appointments of Therese Cermak, Thomas Guelcher, Gar
Hargens, and Judith Trent and the reappointments of Steven Buetow and Richard Murphy, Sr., by
Mayor Coleman, to the Heritage Preservation Commission. (To be laid over one week for
adoption)
Laid over to February 5 for adoption
43. Resolution - 97-67 - Approving payment of$17,500.00 to Patricia McBeath and Stuart McBeath
in full settlement of their claim against the City of Saint Paul.
Adopted Yeas - 7 Nays - 0
44. Resolution - 97-68 - Authorizing submittal of an application to the Metropolitan Council for
Mississippi National River and Recreation Area Plan funding assistance in the amount of
$25,000.00.
Adopted Yeas - 7 Nays - 0
45. Resolution - 97-69 - Authorizing financing in the amount of$2,340,000.00 for the purchase of
Civic Center Equipment.
Laid over to February 12 Yeas - 7 Nays - 0
46. Resolution - 97-70 - Establishing the rate of pay for the Police Park Ranger class in the Salary
Plan and Rates of Compensation Resolution.
Adopted Yeas - 7 Nays - 0
January 29, 1997, City Council Summary Minutes Page 6
47. Resolution - 97-71 - Accepting the recommendations of the Joint Debt Advisory Committee and
adopting the recommendations of the 1996 Capital Investment and Debt Management for Saint
Paul Local Governments report.
Adopted Yeas - 7 Nays - 0
48. Preliminary Order - 97-72 - In the matter of construction and/or reconstruction of sidewalks at
906 Juno Avenue, 2135 Bayard Avenue, 2117 Highland Parkway, 2173 Scheffer Avenue, 2180
Knapp Street, 2315 and 2394 Valentine Avenue, and 2082 and 2084 East Fourth Street, and
setting date of public hearing for March 26, 1997.
Adopted Yeas - 7 Nays - 0
FOR DISCUSSION
49. Resolution - 97-38 - Approving the Joint and Cooperative Agreement establishing the Middle
Mississippi River Watershed Management Organization including the City of Saint Paul, City of
Minneapolis, Village of Saint Anthony, City of Lauderdale, City of Falcon Heights, Minneapolis
Park and Recreation Board and the University of Minnesota. (Laid over from January 22)
Councilmember Rettman moved approval.
Adopted Yeas - 7 Nays - 0
ORDINANCES
50. Second Reading - 97-52 - An ordinance amending Chapter 366 of the Saint Paul Legislative Code to
require permits for use of downtown parks for community festivals and special events.
Councilmember Megard moved a 4 week layover for referral to the Parks Commission.
Laid over to February 26 for third reading/public hearing Yeas _7 Nays - 0
51. Second Reading- 97-53 - An ordinance amending the Saint Paul Administrative Code and the Saint
Paul Legislative Code reorganizing the budget and finance functions; amending Administrative Code
Chapters 2, 5, 21, 34, 57, 64 and 86, amending Legislative Code Chapters 6, 7, 34, 77, 430, and
Appendix H, and repealing Legislative Code Chapter 430.021 and 430.022.
Laid over to February 5 for third reading/public hearing
Councilmember Harris moved for suspension of the rules and approval of the following resolution:
Resolution - 97-73 - Approving application for a new Class C Gambling Location License by B B
Dixon's, Inc., dba B B Dixon's Tavern &Grill, 1834 St. Clair Avenue. (ID#58600)
Adopted Yeas - 7 Nays -0
Councilmember Rettman moved for suspension of the rules and approval of the following resolution:
Resolution - 97-76 - Accepting donated funds in the amount of$8,500 for the annual Winter
Carnival Reception for Mayors to be held on February 1, 1997.
Adopted Yeas - 7 Nays - 0
January 29, 1997, City Council Summary Minutes Page 7
Councilmember Rettman moved for suspension of the rules and approval of the following resolution:
Resolution - 97-77 - Approving application for a Restaurant-A, Entertainment-B, Sunday On Sale
Liquor and Liquor On Sale-B License by Jackson Venture, Inc., dba Artists Quarter, 366 Jackson
Street. (ID#21678)
Council President Thune stated this business has been in operation, but needs a separate license as
opposed to being operated by another bar.
Adopted Yeas - 7 Nays - 0
Councilmember Harris moved for suspension of the rules and approval of the following resolution:
Resolution - 97-78 - Authorizing the submission of a grant application from the Minnesota Historical
Society for the development of educational materials to promote and explain the requirements of the
historic preservation activities in the City of Saint Paul.
Adopted Yeas - 7 Nays - 0
Councilmember Harris moved for suspension of the rules and approval of the following two resolutions:
Resolution - 97-74 - Approving application for a new State Class B Gambling Premise Permit by
Camden Neighborhood Gym at B B Dixon's Tavern & Grill, 1834 St. Clair Avenue. (ID#B-03067)
Adopted Yeas - 7 Nays - 0
Resolution - 97-75 - Approving application for a new Gambling Manager's License by Richard M.
Hendricks, dba Camden Neighborhood Gym at B B Dixon's Tavern &Grill, 1834 St. Clair Avenue.
(ID#77002)
Adopted Yeas - 7 Nays - 0
52. POLICY SESSION - Business Plan: Implementation of a Comprehensive Housing Strategy
I. Staff Presentation - Pam Wheelock and Gary Peltier
Pam Wheelock stated that the Department of Planning and Economic Development is the agency that
implements programs to provide funds to stimulate housing renovation and improvements. PED works in
partnership with a number of organizations. From 1994 to 1996, there was an investment of over$100
million in total development costs in housing, home improvements, rehabilitation, home construction, and
rental activity. In 1997, it is estimated another$42 million in total development costs will be engaged with
$7.5 million of City funds. PED is working to prepare Saint Paul's position to partner with the grant
application for the MCDI grant funds.
Ms. Wheelock stated the following would be helpful in the discussion: 1)Whether there is a comfort level
with the priorities and the budget for 1997 activities, 2) Whether there is a comfort level among the elected
officials about the specific role that is being suggested for the public entity in partnership with the other
organizations, 3) Whether there is some modification of that, 4) If there is a strong sense of commitment to
the goals and programs previously established by the City and endorsed by the City Council.
January 29, 1997, City Council Summary Minutes Page 8
Gary Peltier, PED, stated the Business Plan is a supplement to the housing action program for 1996 and
1997 that was adopted last year. It is also a supplement to the activity performance plan that is part of the
budget document the Council approved.
Mr. Peltier explained that Attachment A deals with how PED defines quality housing. Attachment B is
Policy Principles and is directly from the existing policy plan. It questions what kind of neighborhoods the
City is striving for, what kind of economic profile the City is striving for, and whether it is appropriate for
Saint Paul. Attachment C, Implementation Principles, is an attempt to outline principles PED feels are
important when getting involved with housing programs.
Page 4 has strategies and priorities which are important to govern work this year. The broad strategies are:
1) supporting strategic neighborhood improvements, 2) increasing home ownership, 3) maintaining existing
housing stock, 4) maintaining and providing rental housing. For the substrategies, there were highlights of
nine priorities that are significant: 1) Facilitating collaborations that support neighborhood improvements
with CDCs, private lenders, and other neighborhood organizations; 2) Implementing the community
development agenda; 3) Revising the selection activity for the demolition of rehabilitation for vacant
houses; 4) Identifying ways to decrease the volume of rehabilitation and the redevelopment of vacant lots
after demolition; 5) Provide an opportunity to implement a housing replacement tax increment financing
district specifically to address vacant housing and lots; 6) Identifying potential redevelopment sites for new
ownership step-up housing; 7)Work to increase the activity of private lenders and home improvement; 8)
Reposition significant existing rental housing projects; 9) Initiating a continuum of chair planning with
Ramsey County for special populations.
II. Community Perspective on the Plan
(Note: Steve Thomas, Corporation for Support Housing, and Dick Brusted, Brighton Development
Corporation, were not present.)
A. Scott Brownley, local Realtor, and chair of the Saint Paul Area Association of Realtors (spoke in
place of John Periard, Government Affairs Director, Saint Paul Area Association of Realtors)
Scott Brownley stated the Saint Paul Area Association of Realtors has a membership of over 2,000
professionals. The association is encouraged by the comprehensive housing strategy.
Mr. Brownley talked about the ideas that most directly affect the industry. He said the association was glad
to see the rental tax equity mentioned in the plan and they look forward to getting the plan reinstated. It
provides incentives for rental property owners to maintain quality housing. The association supports the
City's efforts to develop the old housing stock and encourages the City to find ways to make vacant and
condemned housing available to the private sector more quickly. The City's mortgage programs have great
merit and should be continued. The middle income mortgage program is a great tool to help sell the City.
The association supports the Council's efforts to attract good jobs to the City; good housing and good jobs
go hand in hand, Brownley said.
The association would like to provide sales statistics to the Council periodically to keep them informed of
trends in home sales. Mr. Brownley presented preliminary numbers for 1996 which showed housing sales
remain strong and values continue to rise.
January 29, 1997, City Council Summary Minutes Page 9
B. Susan Kimberly, Executive Director, Coalition of Community Development Corporations
Susan Kimberly stated the Coalition of Community Development Corporations consists of 28 non-profit
community organizations.
Saint Paul is in good shape she said and most of the neighborhoods are substantial and stable. American is
not good at maintaining assets but is better equipped to deal with crises and catastrophe. The Business Plan
presents a good framework for dealing with housing in Saint Paul.
Susan Kimberly had reorganized the document. The public sector and the private sector are defined in
Attachment C. Ms. Kimberly suggested adding a non-profit sector definition. Under Public Sector, she
suggested some of the credit reforms initiated in the last couple of years should be evaluated and
reconsidered as they are producing the results.
Item K, the City needs to understand how "increasing the tax base should be a primary public benefit" will
work.
The last time the Implementation Activities was presented to the Council, the Council generally supported
this proposal but had some concerns. Ms. Kimberly presented 12 recommendations with the Community
Development agenda. About facilitating the construction of new ownership housing, there has been some
creative work in Cleveland and something similar could be done in Saint Paul. The "Flexibility of
Resources" will make the system work better. When looking at increasing production, it is worth noting in
the initial phases, the problem is not more money.
Susan Kimberly stated the coalition urges the Council to move ahead with this document.
C. Paul Fate, Executive Director, Local Initiatives Support Corporation (LISC)
Paul Fate stated LISC is a financial and technical assistance intermediary that provides a number of forms of
assistance to neighborhood based development organizations and works in poor neighborhoods to stabilize
and revitalize the communities. All funds come from the private sector: 35 local corporations and
foundations. LISC has provided over$80 million in funding and financing for over 2,500 units of housing
in the Twin Cities since they started in 1988. They have provided capacity building and technical assistance
for CDC's as well.
Paul Fate stated he would like to focus on the intersection between the housing business plan and the
community development agenda. It called for doubling the scale of housing investment activity by the year
2000 in order to stabilize and build confidence in the inner city and working class neighborhoods. With the
current level of activities, the City cannot turn the corner and build the level of confidence that is needed in
these neighborhoods nor protect the assets in the residential housing stock.
There are key elements explicit in this housing strategy. 1) There is a complementary range of housing
investment tools from home improvements to purchasing rehabilitated homes and infill construction to
rental housing. 2) There is a need to target resources in some areas to level other investments and
demonstrate impact. 3) There is a need to better coordinate the housing activity with economic development
and public infrastructure improvement. What often happens is the people working in housing are not
January 29, 1997, City Council Summary Minutes Page 10
conversing with people working in economic development and Public Works. 4) There is a need to look at
more strategies where chunks of money are used so people can draw these neighborhoods together
effectively.
There are a number of factors involved in lowering housing construction and rehabilitation costs. 1) If there
are systems in place and predictability in the system, housing costs can be lowered because the private sector
players will lower their cost when they can predict outcomes. 2) Unreasonable building license or
permitting requirements should be explored with new technologies for construction.
There is an opportunity for the Council in that is time sensitive. The National Community Development
Initiative is a consortium of national foundations and corporations that have provided some money to
selected cities around the country. Saint Paul is in a position to pull down $3 million from MCDI if it can
demonstrate a high level of City buy-in and support and four guiding principles of MCDI: increase
production and tangible results in neighborhoods; promote systems change which support successful
community development; promote productive and well run neighborhood based development organizations;
and promote community, building broader than physical development.
Council President Thune asked for more specifics on ways to cut cost. Paul Fate responded there is no
specific agenda but from cost cutting reports from other city, those are areas that are being looked at. From
some discussion Mr. Fate has had, there may be opportunities.
Pamela Wheelock stated the CDC's and PED would put together a list with feedback from other individuals
or parties and bring it back to the Council.
Councilmember Megard asked Mr. Fate what his impression is of the wait among rehabilitation, home
ownership, rental, etc. if the Business Plan is followed. Mr. Fate responded to achieve the increase in
production over time, the City will outstrip the current City resources. There are a lot of potential rental
projects which require reconfiguration and some downsizing. Those can be very expensive propositions.
Ms. Megard said Saint Paul has rental needs and Mr. Fate said the demand outstrips the market for good,
affordable rental housing.
Councilmember Harris asked what percentage of people in Saint Paul live in a property they own. Pamela
Wheelock responded the total housing units in Saint Paul are 117,000, roughly 70,000 are rehabilitated,
owner occupant units. The remainder are rental. Gary Peltier responded 70% of the units in the
metropolitan area are owner occupied.
Councilmember Megard stated this Council has a policy for 70% home ownership, which has acted as a
disincentive to repairing and upgrading rental housing. It is a policy that is focusing more toward home
ownership. The question becomes whether that meets the housing needs of the people that are here.
Councilmember Rettman stated Saint Paul needs an all income city, not just rental housing or home
ownership. Senior housing is also needed. The question is whether there are enough opportunities for all
income levels.
January 29, 1997, City Council Summary Minutes Page 11
D. Bill Sands, Chairman and Executive Officer, Western Bank
Bill Sands was present as a representative of the private sector, but also someone highly committed to
production and maintenance of affordable housing in the Twin Cities through involvement with the Family
Housing Fund. The City needs rental housing for a variety of people moving into Saint Paul, he said.
The future of Saint Paul is dependent on large amounts of private investment. Mr. Sands suggested the
following to stimulate more private investment: 1) The City and the private sector should target their
resources in ways to encourage more private investment by individual home buyers, private landlords,
private lenders, and private developers. 2) The private sector will be more likely to invest in Saint Paul if
the City has the vision of what it wants to accomplish in housing; a clear set of objectives and strategies for
achieving that vision. 3) It is important for Saint Paul to form and maintain strong partnerships and
collaborations with neighborhood groups, Community Development Corporations, business communities,
and the philanthropic sector in order to achieve objectives. 4) Saint Paul has to maintain its rental stock.
Individual homeowners are more likely to remain in their homes or purchase new homes in Saint Paul if the
nearby rental housing is well maintained and well managed. 5) The City must work with private and non-
profit sector so a full range of services are available for people taking advantage of affordable financing
programs. 6) Saint Paul should link affordable rental housing with services for people to access jobs that
pay a livable wage. 7) Saint Paul is an economically and racially diverse community. The City's policies
must recognize the value of diversity by including a provision of a full range of housing choices.
Mr. Sands stated the Business Plan has specific and measurable objectives, which is something a manager
likes to see, but resources are needed.
Minneapolis has a greater variety of condominiums, town homes, apartments. Mr. Sands was concerned
that the City is losing a lot of retirement-age people. Council President Thune asked if there are statistics
about where people locate when they reach retirement age. Pamela Wheelock responded that people
looking for a carefree environmental in Saint Paul have a hard time finding it. It is difficult to find large
tracts of land to attract developers. It is also an issue for people who lived in a suburban location and decide
to come back to Saint Paul when reaching retirement age. The Wilder development is an example of a
successful one.
Bill Sands stated many people from Minneapolis moved into Landmark Towers which is at the high end.
Councilmember Megard stated whenever there is news about housing development on the river, she
receives calls from people wanting to be put on the list. There needs to be more high end housing
downtown, she said, as there are no units available in some of the higher level rental units. Councilmember
Megard said she would like to see more energy focused on the housing aspect in redevelopment of the City.
Bill Sands stated Western Bank has taken risks on some properties. Property values can fall fast if a
building is trashed and after a few losses, the bank steps back to decide if they should be doing this.
III. Public Input
Gerald Frisch, 960 Caren Road, Mendota Heights, appeared and stated he spends most of his days in Saint
Paul as a lawyer and developer. The comprehensive resolution fails to mention private developers in the
strategies and priorities section. Currently,Mr. Frisch is developing under the infill housing program and
January 29, 1997, City Council Summary Minutes Page 12
building homes and neighborhoods on lots that previously could not be developed. Mr. Frisch just
completely remodeled a home at 830 Juno Avenue. As soon as it was finished, it was sold. There are a
number of homes under construction at this time and additional homes to submit shortly to PED. There is a
shortage of funds in all these programs, but if Saint Paul wants to encourage redevelopment of
neighborhoods, the funds have to be made available to build single family homes. Mr. Frisch stated he has
owned, developed and managed apartments for 35 years. Developers need strategic planning to include
them and there is an opportunity to create partnerships. Mr. Frisch said he will have a matter coming before
the Council concerning a senior development. He will submit a list to the Council as to what he thinks will
save costs for development.
Councilmember Megard asked if Gerald Frisch was the only developer using Houses to Homes subsidies for
new infill housing. Pamela Wheelock responded that Mr. Frisch is the only private developer participating
in the Houses to Homes program. Some large firms have contacted PED wanting to look at some sites.
Some of the suburban municipalities are becoming much more developed and it is not as easy to find large
tracts of land. Developers have become more interested in reevaluating opportunities in the core city. There
is also an increased confidence in investment in Saint Paul.
IV. Council Discussion
Councilmember Megard was concerned where the Council was going with this. Pamela Wheelock
suggested putting some of the broad policy objectives in the front of the document and a consensus on the
policy objectives would be a good place to start.
Councilmember Harris said his impression of the Business Plan was to identify some tangible goals. The
priorities need to be more specific. The overall policy objectives are fine but unless there are some tangible
goals and a way to measure the goals, then the Council is talking at a higher level than it needs to be. The
plan needs some work. If it is a policy plan, some things should be stripped out to have some simpler
objectives.
Council President Thune suggested laying this item over for one month.
Councilmember Blakey said he was not prepared to vote on the resolution today as he would like to see
some accountability issues and objectives.
Pamela Wheelock suggested the Council meet consensus on some of the broad policy objectives so there
will not be a problem reaching conclusions on specific strategies. Councilmember Megard concurred.
Councilmember Megard stated she was hoping to put together the top five priorities for housing
development for the first twelve months and she would like to see some goals about step up housing. She
said she would also like to see some initiative on the part of PED, that they will solicit private developers.
Ms. Megard stated she has one developer in her community who has given up because Saint Paul does not
have resources or goals in place. It is important for the Council to come forward with specifics so it can say
it is actually going to do this, here is the money available to facilitate that, here are the lots available for
infill housing, or here are the units to be rehabilitated. Pamela Wheelock stated the timing is important.
This plan was developed in October. Since that time, the Council has adopted the budget and embraced
priorities. One of them was to market sites for step-up housing. The document was prepared before the
January 29, 1997, City Council Summary Minutes Page 13
conversation took place at the Council meeting.
Councilmember Megard requested that PED come back to the Council on February 5 with what is in place
as far as the resolution prepared for direction for the Business Plan or what has to be put in place. At the
end of 1997, the Council should be able to specifically say what was done, show what dollars were spent,
and actually see progress in some areas. Councilmember Rettman stated the activity performance section in
the business plan has some specifics.
Councilmember Blakey asked for time lines from PED.
Chair Rettman stated this is a PED plan and not referencing the other plans and other agencies. PED needs
to make sure the public housing agency is not part of the City. The plan left out some of the key players.
Gary Peltier responded the Housing Action Program does include public housing. When thinking of the
public sector's role in housing, the Housing Action Program recognizes the Public Housing Agency as a
City agency. This business plan does not include anything about PHA.
Pamela Wheelock stated this was a discussion document. It was not envisioned to be something that is
adopted. At the February 5th meeting, the discussion should include what the Council would want this
document to be.
Resolution - 97-2 - Accepting and adopting the "Business Plan: Implementation of a Comprehensive
Housing Strategy" developed by the Department of Planning and Economic Development. (Laid
over from January 2)
Councilmember Mauer moved to lay over the resolution for one week.
Laid over to February 5 Yeas - 6 Nays -0 (Thune not present for vote)
Councilmember Bostrom moved to adjourn the meeting
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ADJ e RNED 11t 51 P.M.
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I l avid Th e, Council President
ATTEST:
Minutes approved by Council
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Nancy Anderan , t \d `l i
Assistant Council Secretary
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