2023.04.18 Work Session Packet
4141 Douglas Drive North • Crystal, Minnesota 55422-1696
Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov
Posted: April 14, 2023
City Council Work Session Agenda
Tuesday, April 18, 2023, at 6:30 p.m.
Council Chambers/Zoom
Pursuant to due call and notice given in the manner prescribed by Section 3.01 of the City Charter,
the work session of the Crystal City Council was held on Tuesday, April 18, 2023, at ______ p.m. in
the Council Chambers at City Hall, 4141 Douglas Dr. N., Crystal, MN and via Zoom. If the agenda
items are not completed in time for the regular City Council meeting at 7 p.m., the work session
will be continued and resumed immediately following the Economic Development Authority
meeting. The public may attend the meeting via Zoom by connecting to it through one of the
methods identified on the City Council Meeting Schedule for Tuesday, April 18, 2023.
I. Attendance
Council members Staff
____ Budziszewski ____ Bell
____ Cummings ____ Gilchrist
____ Eidbo ____ Therres
____ Kamish ____ Elholm
____ Kiser ____ Larson
____ Adams ____ Ray
____ Revering
____ Sutter
____ Serres
II. Agenda
The purpose of the work session is to discuss the following agenda items:
1. Rental licensing of state-licensed facilities.
2. City manager monthly check-in.
3. City Council liaison reports.*
4. Constituent issues.*
5. New business.*
6. Announcements.*
III. Adjournment
The work session adjourned at ______ p.m.
* Denotes no supporting information included in the packet.
Auxiliary aids are available upon request to individuals with disabilities by calling the city clerk at
(763) 531-1145 at least 96 hours in advance. TTY users may call Minnesota Relay at 711 or 1-800-627-3529.
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___________________________________________________________________________
FROM: John Sutter, Community Development Director
TO: Adam R. Bell, City Manager (for April 18 City Council Work Session)
DATE: April 13, 2023
SUBJECT: Discuss potential change to existing rental license exemption for state-
licensed residential facilities
A. BACKGROUND
On Nov. 1, 2016, the City Council adopted an ordinance amending Chapter 4 which,
among other changes, added the following three exemptions from the city’s rental
licensing requirement:
425.17 Subd. 2. Exemptions. The following properties are exempt from having to obtain
a rental license from the city:
a) Properties that have applied for and received Relative Homestead status for
property tax purposes;
b) Properties that are exempt from property taxes under Minnesota Statute, section
272.02 because they are a church parsonage; or
c) Supportive housing facilities that are licensed and inspected by the State of
Minnesota.
This memo concerns the highlighted exemption c) above.
With this change, 34 state-licensed supportive housing facilities (group homes) that the
city had previously licensed and inspected as rentals became exempt from rental
licensing. All of these were licensed by the Mn. Dept. of Human Services as Home and
Community Based Services.
Around the same time, there was rapid growth in another category defined by the state
as “Housing with Services” and registered (but not licensed or inspected) by the Mn.
Dept. of Health. While these properties were registered with the state, they were not
COUNCIL STAFF REPORT
Rental Licensing of State-Licensed Facilities
Page 2 of 4
licensed or inspected by the state. The city continued to require rental licenses and
inspections of these properties.
Due to numerous complaints statewide about lax oversight of Housing with Services
establishments, the state has phased out that classification and transitioned them to a
new Assisted Living license classification which includes a state inspection.
Upon researching these two classifications, both the Dept. of Human Services (2016
exemption) and Dept. of Health (until recently not exempt), staff determined that neither
agency’s inspection truly supplants the need for a city inspection:
• Both state departments’ inspections do not cover the same things as the city’s rental
inspection. We inspect the entire structure as well as the garage and yard
conditions. Sometimes the state inspectors miss life safety issues, such as one
house where window cranks had been removed from bedroom windows. The state
also does not check if critical equipment such as new furnaces and water heaters
had the required permit and inspection.
• The state licenses are on two year cycles whereas the City’s is annual. This would
mean exempted properties are only inspected every other year by the state, if that.
Multiple property owners have told city staff that sometimes more than 2 years pass
between state inspections. For example, one property licensed by the Dept. of
Human Services since 2016, 6505 40th Ave. N., has not been inspected since
January 2021.
• None of the cities surrounding Crystal exempt state-licensed properties, whether
under the Dept. of Human Services or the Dept. of Health.
B. OPTIONS
1. Continue the approach adopted in 2016
This would require an ordinance amendment to limit the exemption to the specific
type of state license that was in place when we adopted the exemption in 2016:
a) Properties that have applied for and received Relative Homestead status
for property tax purposes;
b) Properties that are exempt from property taxes under Minnesota Statute,
section 272.02 because they are a church parsonage; or
c) Supportive housing facilities that are licensed and inspected by the State
of Minnesota Department of Human Services as Home and Community
Based Services.
Page 3 of 4
Advantages:
• Continues the city’s practice since 2016
Disadvantages:
• The Department of Human Services inspections are infrequent and
do not cover the same things as city rental inspections. Ideally these
would be licensed and inspected by the city just like all other rental
dwellings.
2. Go back to the city’s pre-2016 approach and resume rental licensing of all
state-licensed dwellings
This would require an ordinance amendment the rental licensing requirement to
completely remove the exemption for state-licensed facilities:
425.17 Subd. 2. Exemptions. The following properties are exempt from having to
obtain a rental license from the city:
d) Properties that have applied for and received Relative Homestead status
for property tax purposes; or
e) Properties that are exempt from property taxes under Minnesota Statute,
section 272.02 because they are a church parsonage. ; or
f) Supportive housing facilities that are licensed and inspected by the State
of Minnesota.
Advantages:
• Applies the same city inspection standards to all rental dwellings
• General Fund revenue increase of approximately $5,000 per year
Disadvantages:
• Currently exempt Dept. of Human Services licensees may not
appreciate having to get rental licenses and city inspections
• More work for city staff
3. Do not change the ordinance
Upon their next rental license renewal cycle, the properties previously licensed
as rentals because they were Housing with Services establishments would be
informed that they are exempt from the city’s rental license requirement:
Advantages:
• Less work for city staff
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Disadvantages:
• Department of Health and Department of Human Services
inspections are infrequent and do not cover the same things as city
rental inspections
• General Fund revenue reduction of approximately $6,000 per year
C. REQUESTED CITY COUNCIL DISCUSSION
Depending on Council discussion, staff intends to prepare an ordinance amendment for
first reading on May 2 and second reading on May 16.
Address and Business Name City Rental License?
8204 33rd Ave N ‐ Dungarvin Banaher No (Exempt since 2016)
6809 36th Ave N ‐ Homeward Bound No (Exempt since 2016)
6505 40th Ave N ‐ Meridian Edgewood No (Exempt since 2016)
5720 43rd Ave N ‐ Homeward Bound No (Exempt since 2016)
7020 45th Pl N ‐ Seek Crystal Place No (Exempt since 2016)
4709 58th Ave N ‐ Dungarvin 58th #9 No (Exempt since 2016)
4717 58th Ave N ‐ Dungarvin 58th #17 No (Exempt since 2016)
3609 Brunswick Ave N ‐ Living Well Disability Services No (Exempt since 2016)
4367 Colorado Ave N ‐ Restart Inc. Yes (also licensed as Assisted Living)
4523 Colorado Ave N ‐ Cobbo Douglas No (Exempt since 2016)
4600 Colorado Ave N ‐ Meridian Colorado South No (Exempt since 2016)
4602 Colorado Ave N ‐ Meridian Colorado North No (Exempt since 2016)
3941 Douglas Dr N ‐ REM Hennepin Inc. ‐ Douglas Dr No (Exempt since 2016)
4563 Douglas Dr N ‐ Unlimited Possibilities Douglas Yes
3925 Georgia Ave N ‐ REM Hennepin Inc. ‐ Georgia No (Exempt since 2016)
3812 Hampshire Ave N ‐ Opportunity Partners ‐Hampshire No (Exempt since 2016)
4025 Jersey Ave N ‐ Homeward Bound No (Exempt since 2016)
4807 Jersey Ave N ‐ Dungarvin Jersey No (Exempt since 2016)
3535 June Ave N ‐ Homeward Bound No (Exempt since 2016)
5330 Kentucky Ave N ‐ Mary T Inc. No (Exempt since 2016)
3529 Lee Ave N ‐ Homeward Bound No (Exempt since 2016)
2742 Louisiana Ave N ‐ Mains'l Services Inc. No (Exempt since 2016)
3249 Louisiana Ave N ‐ Seek Home Inc. No (Exempt since 2016)
3501 Louisiana Ave N #110 ‐ Dungarvin Louisiana Yes (part of apartment complex)
3400 Quail Ave N ‐ REM Hennepin Inc No (Exempt since 2016)
4710 Quail Ave N ‐ Beacon Specialized Living Quail No (Exempt since 2016)
5558 Unity Ave N ‐ Dungarvin Unity No (Exempt since 2016)
5431 Welcome Ave N ‐ Hammer Welcome No (Exempt since 2016)
3109 Winnetka Ave N ‐ Mary T Inc. No (Exempt since 2016)
PROPERTIES LICENSED AS HOME AND COMMUNITY BASED SERVICES (29)
(Licensed by Mn Dept of Human Services)
Address and Business Name City Rental License?
6727 46th Ave N ‐ Empathy Home Care Inc. Yes
6825 46th Ave N ‐ Dis‐Generation Group Inc. Yes
6428 46th Pl N ‐ Empathy Home Care Inc. Yes
5127 53rd Ave N ‐ Peace Homecare Services LLC No, owner occupies and is homesteaded
5724 56th Ave N (Bass Lake Rd) ‐ Amazing Love Assisted Living Yes
5802 56th Ave N (Bass Lake Rd) ‐ Grace Home Yes
6501 57th Ave N ‐ Thrive Health Services LLC Yes
7600 59th Pl N ‐ Benedetta Home Care Services Yes
6600 Cloverdale Ave N ‐ Fantium Home Health Care LLC Yes
3648 Colorado Ave N ‐ Golden Pond Crystal Yes
3703 Colorado Ave N ‐ Empathy Home Care Inc. Yes
4367 Colorado Ave N ‐ Restart Inc. Yes
3000 Douglas Dr N ‐ Heathers Manor Yes
3501 Douglas Dr N ‐ Suite Living Senior Care Yes
2817 Hampshire Ave N ‐ Partners in Care Inc. ‐ Yes
4024 Idaho Ave N ‐ Esteem Home Health Services No, submitted copy of state license
3513 Kyle Ave N ‐ Senative Services Inc. Yes
3524 Kyle Ave N ‐ Attentive Care Yes
3428 Lee Ave N ‐ Loving Homes Inc. Yes
3537 Lee Ave N ‐ First Light Residential Care Yes
4757 Louisiana Ave N ‐ Push Services Inc. Yes
3525 Noble Ave N ‐ Olydia Home Care Inc. Yes
5857 Perry Ave N ‐ Azalea Homes LLC No, never applied for rental license
5202 Quail Ave N ‐ American Volunteer Homes LLC Yes
5737 Regent Ave N ‐ Joyful Home Healthcare LLC Yes
5748 Regent Ave N ‐ Chez Michael Care LLC Yes
4301 Welcome Ave N ‐ Belevo Health Services Yes
5517 Welcome Ave N ‐ Midwest Living Group Inc. Yes
5825 West Broadway ‐ YM Care Inc. Yes
3264 Xenia Ave N ‐ Journeys Home Care LLC Yes
4843 Yates Ave N ‐ Careview Yates Home Yes
5630 Yates Ave N ‐ Park Point Inc. Yes
PROPERTIES PREVIOUSLY REGISTERED AS HOUSING WITH SERVICES (32)
(Now licensed by Mn Dept of Health as Assisted Living)
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4141 Douglas Drive North • Crystal, Minnesota 55422-1696
Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov
CITY MANAGER
MONTHLY CHECK IN - APRIL 2023
Objective 1 - Strategic planning for continued implementation of Council priorities:
• Thriving Business Community
o Community Development staff continuing to work with developers regarding
redevelopment opportunities
o Continuing to work through and advocate for city and community's interest with Blue
Line Extension
o Staff is participating in the New Hope Business Association (CBA 2.0)
o Worked to assist the Women-Owned Business Expo
• Strong Neighborhoods
o Promoting No-Mow May
o Continued implementation of Master Parks System Plan improvements
o Responsive to resident complaints/concerns and working with residents to
attain compliance
• Sound fiscal policies and practices
o Staff is discussing budget preparation
o 2022 Audit prep ongoing – Abdo working with Auditors for field work
o Implementing and reviewing updates for long term plan (2023 - 2032)
o Pursuing additional grant funding for park improvements.
o Provided testimony at MN House and Senate hearings for Crystal Cove Aquatic
Center State Bond Funding
o Staff is discussing budget preparation
o Pursuing grant funding for pool lifeguards through county
• Welcoming and inclusive community
o Inclusion & Diversity Commission – April 5 meeting was held despite lack of a quorum.
Mike Peterson gave his city communications/outreach practices presentation. Mike will
return to present it to the entire commission again in May.
Objective 2 - Work-life balance
• Employee appreciation/recognition program is being held April 19
• Supporting staff with family, health, and personal issues
• Support staff’s continuing professional growth and development
• Spent day off with family this month
• Connecting with neighboring city managers on various local issues
• Participate in metro and state professional organization to stay current
• Continuing participation in city manager leadership group
Objective 3 - Monitor difficult conversations regarding Council effectiveness
• Continue to work with council on finding common ground and develop mutual trust.
• Worked with Council to build consensus and eventually select candidate to fill vacancy