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2023.10.03 Council Meeting Packet 4141 Douglas Drive North • Crystal, Minnesota 55422-1696 Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov Posted: Sept. 29, 2023 City Council Meeting Schedule Tuesday, Oct. 3, 2023 Time Meeting Location 6:30 p.m. Economic Development Authority (EDA) meeting Council Chambers/ Zoom 6:45 p.m. City Council work session to discuss: 1. Constituent issues. 2. New business. 3. Announcements. Council Chambers/ Zoom 7 p.m. City Council meeting Council Chambers/ Zoom Immediately following the City Council meeting Continuation of City Council work session, if necessary Council Chambers/ Zoom The public may attend the meetings via Zoom by connecting through one of the methods identified below. Topic: Crystal Economic Development Authority meeting, City Council work session, City Council meeting, and continuation of City Council work session, if necessary. Time: Oct. 3, 2023, at 6:30 p.m. Central Time (US and Canada) Join Zoom Meeting: https://us02web.zoom.us/j/83235470491?pwd=NzQ0enFMSGFIWHlPZ0VCekk4aGJIZz09 Meeting ID: 832 3547 0491 Passcode: 414141 One tap mobile: +19292056099,,83235470491#,,,,*414141# US (New York) +13017158592,,83235470491#,,,,*414141# US (Washington DC) Dial by your location: +1 929 205 6099 US (New York) +1 564 217 2000 US +1 301 715 8592 US (Washington DC) +1 669 444 9171 US +1 305 224 1968 US +1 669 900 6833 US (San Jose) +1 309 205 3325 US +1 689 278 1000 US +1 312 626 6799 US (Chicago) +1 719 359 4580 US +1 646 931 3860 US +1 253 205 0468 US +1 360 209 5623 US +1 253 215 8782 US (Tacoma) +1 386 347 5053 US +1 346 248 7799 US (Houston) +1 507 473 4847 US Find your local number: https://us02web.zoom.us/u/kefAdH6TPJ 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. AGENDA ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL • REGULAR MEETING • TUESDAY, OCTOBER 3, 2023 6:30 P.M. CRYSTAL CITY HALL COUNCIL CHAMBERS 1. Call to order * 2. Roll call * 3. Consider approval of minutes from the September 5, 2023 regular meeting 4. Consider approval of a façade improvement deferred loan repayment agreement for 3600 Douglas Dr. N. (Wine Thief & Ale Jail) 5. Property status update * 6. Other business * 7. Adjournment * *Items for which no materials are included in the packet Page 1 of 3 Minutes of the Economic Development Authority of the City of Crystal Regular Meeting Council Chambers September 5, 2023 1. Call to Order President Kiser called the meeting of the Economic Development Authority of the City of Crystal (EDA) to order at 6:30 p.m. 2. Roll Call Upon call of the roll, the following Commissioners were present: Jim Adams, David Cummings, Forest Eidbo, Traci Kamish, Therese Kiser and Taji Onesirosan. Commissioner John Budziszewski arrived at 6:51 p.m. The following staff were present: Executive Director Adam Bell, Deputy Executive Director John Sutter, Police Chief Stephanie Revering and City Attorney Troy Gilchrist. 3. Approval of Minutes Moved by Commissioner Kamish (Adams) to approve the minutes from the August 15, 2023 regular meeting. Motion carried. 4. Consider a resolution adopting a proposed 2024 EDA budget and HRA tax levy. Staff presented information about the 2024 budget and tax levy, answered questions from the board and requested board approval of the resolution. Moved by Commissioner Kamish (Cummings) to approve a resolution adopting a proposed 2024 EDA budget and HRA tax levy. Motion carried. 5. Consider approval of an amendment to the Purchase and Development Agreement for 4741 Welcome Avenue North. Staff presented information about the amendment, answered questions from the board and requested board authorization. Moved by Commissioner Eidbo (Kamish) to approve an amendment to the Purchase and Development Agreement for 4741 Welcome Avenue North. Motion carried. Page 2 of 3 6. Property Status Update Staff updated the board on the status of Wine Thief and Ale Jail building renovations/addition at 3600 Douglas Dr. N. 7. Other Business There was no other business. 8. Adjournment Moved by Commissioner Budziszewski (Kamish) to adjourn the meeting. Motion carried. The meeting adjourned at 6:53 p.m. Page 3 of 3 These minutes of the August 15, 2023 meeting of the Crystal Economic Development Authority were approved by the Authority on ________________ ____, 20___. ______________________________ Therese Kiser, President ATTEST: ______________________________ Forest Eidbo, Secretary ___________________________________________________________________________ FROM: John Sutter, Community Development Director DATE: September 27, 2023 TO: Adam R. Bell, Executive Director (for October 3 EDA meeting) SUBJECT: Consider approval of a façade improvement deferred loan repayment agreement for 3600 Douglas Dr. N. (Wine Thief & Ale Jail) BACKGROUND In 2021 Hennepin County granted $30,000 to the city/EDA for storefront/façade improvements in particular business districts along Bass Lake Road, 42nd Ave. N. and Douglas Dr. N. Summary of program guidelines:  Assistance is provided in the form of a deferred, forgivable, no interest loan for 50% of the project cost, subject to a maximum forgivable loan of $12,500.  The deferred loan has a 10-year term with the balance reduced by 10% each year.  If the property is sold during the 10-year term, full repayment of the remaining loan balance would be required. Any repayments would be used to capitalize a revolving loan fund for Crystal to continue the program after the county funding is exhausted.  The minimum project is $10,000 (meaning a $5,000 forgivable loan).  There is no maximum project but the maximum forgivable loan is $12,500 even if the eligible project costs exceed $25,000. Previously approved recipients:  Elision Playhouse at 6105 42nd Ave. N. received $12,500 in 2022  B&R Transmission at 6304 42nd Ave. N. was approved for $12,500 in May 2023. Payment is awaiting receipt of final closeout documentation from property owner. EDA STAFF REPORT Façade Improvement Assistance Wine Thief & Ale Jail - 3600 Douglas Dr. N. APPLICATION RECEIVED Ron and Mejken Thompson, as property owner Mejron Properties LLC and owners of the business, Wine Thief and Ale Jail (“WTAJ”), submitted an application for façade improvement assistance for exterior improvements that are part of a much larger building renovation and extension project. $ 42,280 Estimated Cost of Eligible Improvements: $ 6,500 Exterior siding repairs 1,900 Removal of decorative wings from exterior walls 12,000 Exterior Paint 7,800 Exterior electric and lighting 3,400 Railing for accessibility ramp 4,650 New parapet cap 2,780 Rebuild block landscaping wall on west side 3,250 New landscaping on west side Estimated Grant Calculation: $ 21,140 50% of Estimated Total Cost of Eligible Improvements $ 12,500 Maximum Grant $ 12,500 Estimated Grant Funds* (lesser of Maximum Grant or 50% of Total Eligible Improvements). * The assistance is structured as a 10-year deferred, forgivable loan with no interest and the balance reduced by 10% each year. See attached Repayment Agreement. WTAJ anticipates completing the work in November 2023. EDA ACTION REQUESTED Approval of the attached Repayment Agreement with Mejron Properties LLC. Wine Thief & Ale Jail - 3600 Douglas Dr. N. April 2021 Aerial Photo ▲ NORTH Page 4 of 6 Wine Thief & Ale Jail - 3600 Douglas Dr. N. Street Views South Wall facing 36th Ave. N. - September 2022 West Wall facing Douglas Dr. N. - August 2021 Page 5 of 6 Wine Thief & Ale Jail - 3600 Douglas Dr. N. Preliminary Architectural Rendering Floor Plan Page 6 of 6 Wine Thief & Ale Jail - 3600 Douglas Dr. N. Site Plan ▲ NORTH 1 \ REPAYMENT AGREEMENT ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL STOREFRONT AND FAÇADE IMPROVEMENT ASSISTANCE PROGRAM THIS REPAYMENT AGREEMENT (“Agreement”) is made and entered into this ____ day of _____________, 20___ (the “Effective Date”), by and between Mejron Properties, LLC, a Limited Liability Company under the laws of the State of Minnesota (the "Owner"), and the Economic Development Authority of the City of Crystal, a public body corporate and politic under the laws of Minnesota, located at 4141 Douglas Dr. N., Crystal, MN 55422 (the "EDA”). A.On or about September 22, 2023, the Owner submitted to the EDA an application (the “Application”) for grant money under the EDA’s Storefront and Façade Improvement Assistance Program (the “Program”). B.The Program was established and funded pursuant to that certain Business District Initiative Grant Agreement, Contract No. PR0003544 (the “Grant Agreement”), between the City of Crystal (the “City”) and Hennepin County (the “County”). C.To facilitate the EDA’s ability to administer the Program, the City assigned all of its rights and obligations contained in the Grant Agreement to the EDA. D.On October 3, 2023, the EDA determined that the Owner met Program eligibility requirements and agreed to grant the Owner (“Grant Funds”) through the Program. E.The Grant Funds are solely for the purpose of funding 50 percent, and no more than $12,500, of the cost of certain exterior improvements, as described in Exhibit A attached hereto (the “Eligible Improvements”), to the Owner’s real estate located on the property legally described on Exhibit B attached hereto (the “Property”), all in accordance with this Agreement and the Program guidelines. F.The issuance of the Grant Funds is conditioned on the Owner’s execution of this Agreement. 2 NOW THEREFORE, in consideration of said Grant Funds, the parties do hereby agree as follows. 1. The Owner covenants and agrees that the Grant Funds will not be paid by the EDA to the Owner until the improvements described in the Application are completed and full payment has been made to the contractors performing the work, and the Owner shall provide to the EDA any documentation or other evidence that may be reasonably required by the EDA to prove the same. Additionally, the parties acknowledge that this Agreement and the improvements contemplated to the Property are subject to all Program guidelines, as contained in Attachment A of the Grant Agreement, which guidelines are incorporated into this Agreement as if fully set forth herein. 2. The Owner covenants and agrees that, to receive the Grant Funds, Eligible Improvements shall be completed and required documentation submitted to the city no later than Dec. 15, 2023. 3. The Owner covenants and agrees with the EDA that if the Property is sold, transferred or otherwise conveyed (including a sale by contract for deed), voluntarily or involuntarily to any third party within a period of ten (10) years after the Effective Date (a “Triggering Event”), the Owner or its heirs, executors, or representatives, as the case may be, shall repay to the EDA a sum equal to the full amount of the Grant Funds, provided, however, that on each annual anniversary of the Effective Date, the total balance owed following a subsequent Triggering Event shall be reduced by 10% of the total amount of Grant Funds paid hereunder. Accordingly, any repayment that is required under this paragraph following a Triggering Event shall total such reduced amount, pursuant to the aforementioned annual reductions of 10% of the Grant Funds. Repayments required herein shall be made to the EDA no later than the 30th day following the Triggering Event, or on such later date or dates as the EDA, in its sole discretion, may designate. If no Triggering Event occurs within ten years following the Effective Date, no repayment of the Grant Funds shall be required and the entire balance will be considered forgiven in accordance with Program guidelines. 4. As security for the Owner’s obligation above to make repayment to the EDA following a Triggering Event, the Owner hereby grants and the EDA shall and hereby does have, a lien on the Property in the full amount necessary to satisfy said repayment obligation and any costs, including reasonable attorneys’ fees, incurred by the EDA for collecting the same. 5. Prior to the date of any Triggering Event, at least 20 days’ notice thereof shall be provided by the Owner or its heirs, executors, or representatives, as the case may be, to the EDA at the address contained in the preamble to this Agreement. 6. In the event the Owner or its heirs, executors or representatives, as the case may be, fails or refuses to make the repayment required under paragraph 2 of this 3 Agreement following a Triggering Event, the EDA may, with or without notice to the Owner or its heirs, executors or representatives, as the case may be, foreclose said lien in the same manner as an action for the foreclosure of mortgages upon the Property, as by statute provided. 7. The lien created by this Agreement shall terminate and shall be of no further force or effect 126 months following the Effective Date, unless the EDA has, on or before that date, (a) commenced an action the manner provided by statute for the foreclosure of the lien, and (b) filed for record a notice of said action, or a power of attorney to foreclose mortgage, or a lis pendens referring to the same, in the office of the County Recorder or Registrar of Titles, as the case may be, in Hennepin County, Minnesota. The EDA may, in its sole discretion, extend said termination date of said lien by filing for record, on or before said termination date, a signed agreement with the Owner or its heirs, executors or representatives evidencing such extension. 8. This Agreement shall run with the Property and shall inure to the benefit of and be binding upon the parties hereto and their respective heirs, executors, representatives, successors, and assigns. This Agreement will be recorded against the Property by the EDA and, to that end, the parties hereto agree to make any revisions that may be necessary to facilitate such recording. 9. This Agreement shall be governed by the laws of the State of Minnesota. In the event that any provision or clause of this Agreement shall conflict with applicable law, such conflict shall not affect the other provisions of this Agreement which can be given effect without the conflicting provision, and to this end the provisions of the Agreement are declared to be severable. IN TESTIMONY WHEREOF, the parties have executed this Agreement as of the day and year first written above. 4 OWNER MEJRON PROPERTIES, LLC By: Its: STATE OF ______________ ) ) ss. COUNTY OF ____________ ) The foregoing instrument was acknowledged before me this ____ day of _______________, 20___, by as of Mejron Properties, LLC, a Limited Liability Company, on behalf of the Limited Liability Company. Notary Public 5 EDA _____________________________ _____________________________ President Executive Director STATE OF MINNESOTA ) )ss COUNTY OF HENNEPIN ) On this ____ day of ________________, 20___, before me, a Notary Public within and for said County, Therese Kiser and Adam R. Bell, President and Executive Director of the Economic Development Authority of the City of Crystal, respectively, personally appeared to me known to be the person(s) described herein and who executed the foregoing instrument and acknowledging that they executed the same as their own free act and deed, on behalf of the Economic Development Authority of the City of Crystal, a public body corporate and politic under the laws of Minnesota. ______________________________ Notary Public This document was drafted by: Kennedy & Graven, Chartered 150 Fifth Street South, Suite 700 Minneapolis, MN 55402 612-337-9300 EXHIBIT A Improvements Eligible for Grant 1. Estimated Costs of Eligible Improvements $ 6,500.00 Exterior siding repairs 1,900.00 Removal of decorative wings from exterior walls 12,000.00 Exterior Paint 7,800.00 Exterior electric and lighting 3,400.00 Railing for accessibility ramp 4,650.00 New parapet cap 2,780.00 Rebuild block landscaping wall on west side 3,250.00 New landscaping on west side --------------- $ 42,280.00 Estimated Total Cost of Eligible Improvements 2. Estimated Grant Calculation: $ 21,140.00 50% of Estimated Total Cost of Eligible Improvements $ 12,500.00 Maximum Grant $ 12,500.00 Estimated Grant Funds (lesser of Maximum Grant or 50% of Total Eligible Improvements) 3. Actual Cost of Eligible Improvements: $____________ 4. Actual Grant Funds (lesser of Maximum Grant or 50% of Actual Cost of Eligible Improvements): $____________ Grant Funds paid to Owner by EDA on ____________________. A-1 EXHIBIT B Legal Description of the Property Lot 7, Block 1, Schwartz Addition, Hennepin County, Minnesota. B-1 4141 Douglas Drive North • Crystal, Minnesota 55422-1696 Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov Posted: Sept. 29, 2023 City Council Work Session Agenda Tuesday, Oct. 3, 2023 6:45 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, Oct. 3, 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 City Council meeting at 7 p.m., the work session will be continued and resumed immediately following the City Council 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, Oct. 3, 2023. I. Attendance Council members Staff ____ Eidbo ____ Therres ____ Kamish ____ Gilchrist ____ Kiser ____ Bursheim ____ Onesirosan ____ Elholm ____ Adams ____ Larson ____ Budziszewski ____ Ray ____ Cummings ____ Revering ____ Sutter ____ Serres II. Agenda The purpose of the work session is to discuss the following agenda items: 1. Constituent issues.* 2. New business.* 3. 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. Page 1 of 2 4141 Douglas Drive North • Crystal, Minnesota 55422-1696 Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov Posted: Sept. 29, 2023 City Council Meeting Agenda Tuesday, Oct. 3, 2023 7 p.m. Council Chambers/Zoom Meeting The city manager’s comments are bolded. 1. Call to Order, Roll Call, and Pledge of Allegiance 2. Approval of Agenda The Council will consider approval of the agenda. 3. Appearances 3.1 Police Chief Revering will introduce Jennifer Dickerson, Legal Services Advocate for Tubman, and explain the services they provide with regard to domestic assault. Police Chief Revering will also discuss October being Domestic Abuse Awareness Month. 4. Consent Agenda The Council will consider the following items, which are routine and non-controversial in nature, in a single motion: 4.1 Approval of the minutes from the following meetings: a. The City Council work session on Sept. 14, 2023. b. The City Council meeting on Sept. 19, 2023. c. The City Council work session on Sept. 19, 2023. 4.2 Approval of the list of license applications submitted by the city clerk to the City Council, a list that is on file in the office of the city clerk. 4.3 Adoption of a resolution authorizing execution of an agreement with the Minnesota Department of Public Safety for the 2024 Multicultural Adult Driver Education project. 5. Open Forum The City Council appreciates hearing from citizens about items of concern and desires to set aside time during each meeting for Open Forum. To provide ample opportunity for all, speaking time is limited to three minutes and topic discussion is limited to 10 minutes. The Mayor may, as presiding officer, extend the total time allowed for a topic. By rule, no action may be taken on any item brought before the Council during Open Forum. The Council may place items discussed during Open Forum onto subsequent council meeting agendas. Page 2 of 2 6. Regular Agenda 6.1 The Council will consider approval of disbursements of more than $25,000 submitted by the finance department to the City Council, a list that is on file in the office of the finance department. Recommend approval of disbursements over $25,000. 6.2 The Council will receive a presentation on the 2024 budget and levies as well as provide an opportunity for public input. To promote public engagement and transparency, the City Council provides an additional opportunity for public input on the proposed budget before the required December Truth- in-Taxation public hearing. Assistant Finance Director Jodi Bursheim will present the proposed 2024 budget at the Oct. 3 meeting. No action is needed. 7. Announcements a. October is Domestic Violence Awareness Month. The Crystal Police Building will display purple lighting from Oct. 1 – 31 to support domestic violence. The City of Crystal strongly encourages everyone to break the silence on domestic violence and view the purple lights in October as an encouraging message of help, hope, and healing. If you, or someone you know, has been the victim of domestic violence, call 9-1-1. Additional resources are available through the Crystal Police at 763-531-1020 or Tubman at 612-825-0000. b. The Police Tri-City (Crystal, New Hope, Robbinsdale) Community Engagement Forum is Wednesday, Oct. 11 from 6:30 p.m. – 8 p.m. at the Crystal Community Center. c. The City of Crystal will hold a work session on Thursday, Oct. 12 at 6:30 p.m. in the Council Chambers at City Hall and via Zoom. d. The next City Council meeting is Tuesday, Oct. 17 at 7 p.m. in the Council Chambers at City Hall and via Zoom. e. City Council meetings and work sessions are open to the public. Current and previous meetings are available for viewing and listening at www.crystalmn.gov. 8. Adjournment Have a great weekend. As a reminder, Asst. City Manager Therres will be at Tuesday’s meeting while I am attending the ICMA Conference. OCTOBER 2023 If you, or someone you know, has been the vicƟ m of domesƟ c violence, call 9-1-1. AddiƟ onal resources are available through the Crystal Police at 763-531-1020 or Tubman at 612-825-0000. The Crystal Police Building The Crystal Police Building will display purple lighting will display purple lighting from Oct. 1 – 31 to from Oct. 1 – 31 to support domestic support domestic violence awareness.violence awareness. DOMESTIC VIOLENCEDOMESTIC VIOLENCE AWARENESS MONTHAWARENESS MONTH Break the silence on domestic violence.Break the silence on domestic violence. 3.1 Crystal City Council work session minutes Sept. 14, 2023 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 at 6:34 p.m. on Sept. 14, 2023 in the Council Chambers at City Hall, 4141 Douglas Dr. N., Crystal, MN and via Zoom. Mayor Adams called the meeting to order. I.Attendance The city manager recorded the attendance for city council members and staff: Council members present: Budziszewski, Cummings, Eidbo, Kamish and Adams. Council members Kiser and Onesirosan were absent. City staff present: City Manager A. Bell, Community Development Director J. Sutter and City Planner D. Olson. II.Agenda The Council and staff discussed the following agenda item: 1.Unified Development Code (UDC) amendments. III.Adjournment The work session adjourned at 7:50 p.m. Jim Adams, Mayor ATTEST: Adam R. Bell, City Manager 4.1(a) Crystal City Council meeting minutes Sept. 19, 2023 Page 1 of 2 1.Call to Order Pursuant to due call and notice thereof, the regular meeting of the Crystal City Council was held on Sept. 19, 2023, at 7 p.m. in the Council Chambers at City Hall, 4141 Douglas Dr. N. in Crystal, MN and via Zoom. Mayor Adams called the meeting to order. Roll Call Mayor Adams asked the city clerk to call the roll for elected officials. Upon roll call, the following attendance was recorded: Council members present: Cummings, Eidbo, Kamish, Kiser, Onesirosan, Adams and Budziszewski. City staff present: City Manager A. Bell, City Attorney J. Hill, West Metro Fire-Rescue District Chief S. Larson, Public Works Director M. Ray, Community Development Director J. Sutter and City Clerk C. Serres. Assistant City Manager K. Therres, Police Chief S. Revering and Engineering Project Manager B. Perkey were present via Zoom. Pledge of Allegiance Mayor Adams led the Council and audience in the Pledge of Allegiance. 2.Approval of Agenda The Council considered approval of the agenda. Moved by Council Member Budziszewski and seconded by Council Member Kamish to approve the agenda. Motion carried. 3.Consent Agenda The Council considered the following items, which are routine and non-controversial in nature, in a single motion: 3.1 Approval of the minutes from the following meetings: a.The City Council work session on Sept. 5, 2023. b.The City Council meeting on Sept. 5, 2023. 3.2 Approval of the list of license applications submitted by the city clerk to the City Council, a list that is on file in the office of the city clerk. 3.3 Acceptance of Shaz Ahmadi’s resignation from the Parks and Recreation Commission. 3.4 Adoption of Res. No. 2023- 89, authorizing the city manager to approve and execute the Joint Water Commission Wholesale Agreement renewal with the City of Minneapolis. Moved by Council Member Kiser and seconded by Council Member Onesirosan to approve the consent agenda. Motion carried. 4.Open Forum No public comment was given during open forum. 4.1(b) Crystal City Council meeting minutes Sept. 19, 2023 Page 2 of 2 5. Public Hearing 5.1 Mayor Adams announced the purpose of the public hearing: To receive comment, and Council consideration of new off-sale liquor license for Ashley’s Liquor, Inc. d/b/a Ashley’s Liquor located at 4920 West Broadway. City Clerk Chrissy Serres addressed the Council. Applicant Ashley Smith also addressed the Council. Mayor Adams opened the public hearing for testimony. There being no one wishing to appear before the Council to give testimony, Mayor Adams declared the public hearing closed. Moved by Council Member Budziszewski and seconded by Council Member Eidbo to approve the off-sale liquor license for Ashley’s Liquor, Inc. d/b/a Ashley’s Liquor located at 4920 West Broadway. Voting aye: Cummings, Eidbo, Kamish, Kiser, Onesirosan, Adams and Budziszewski. Motion carried. 6. Regular Agenda 6.1 The Council considered approval of disbursements over $25,000 submitted by the finance department to the City Council, a list that is on file in the office of the finance department. Moved by Council Member Kamish and seconded by Council Member Cummings to approve the list of disbursements over $25,000. Voting aye: Cummings, Eidbo, Kamish, Kiser, Onesirosan, Adams and Budziszewski. Motion carried. 8. Announcements The Council and staff made announcements about upcoming events. 9. Adjournment Moved by Council Member Budziszewski and seconded by Council Member Kiser to adjourn the meeting. Motion carried. The meeting adjourned at 7:12 p.m. ___________________________________ Jim Adams, Mayor ATTEST: _____________________________________ Christina Serres, City Clerk 4.1(b) Crystal City Council work session minutes Sept. 19, 2023 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 at 6:30 p.m. on Sept. 19, 2023 in the Council Chambers at City Hall, 4141 Douglas Dr. N., Crystal, MN and via Zoom. Mayor Adams called the meeting to order. I.Attendance The city clerk recorded the attendance for city council members and staff: Council members present: Cummings, Eidbo, Kamish, Kiser, Onesirosan, Adams and Budziszewski. City staff present: City Manager A. Bell, City Attorney J. Hill, West Metro Fire-Rescue District Chief S. Larson, West Metro Fire-Rescue District Assistant Fire Chief J. Kunde, Public Works Director M. Ray, Community Development Director J. Sutter and City Clerk C. Serres. Assistant City Manager K. Therres, Police Chief S. Revering and Engineering Project Manager B. Perkey were present via Zoom. II.Agenda The Council and staff discussed the following agenda items before the City Council meeting: 1.2024 Utility Reconstruction Project sidewalk and parking. Mayor Adams continued the work session to resume immediately after the City Council meeting. Mayor Adams reconvened the work session at 7:12 p.m. to continue discussion of the 2024 Utility Reconstruction Project sidewalk and parking and the following remaining agenda items: 2.West Metro Fire-Rescue District Staffing for Adequate Fire and Emergency Response (SAFER) grant. 3.Update on the 42nd Ave. N. utility undergrounding project. 4.City Council liaison reports. 5.City manager monthly check-in. 6.Constituent issues. 7.New business. 8.Announcements. III.Adjournment The work session adjourned at 9:07 p.m. Jim Adams, Mayor ATTEST: Christina Serres, City Clerk 4.1(c) Page 1 of 1 City of Crystal Council Meeting Oct. 3, 2023 Applications for City License Liquor – Temporary On-Sale West River Racing, 1983 29th Ave. NW, New Brighton, MN 55112 (Nov. 11 - 12, 2023 at Bassett Creek Park). Refuse Haulers (pre-approved by City Manager Adam R. Bell on 9/28/2023) Republic Services dba Allied Waste, 8661 Rendova St. NE, Circle Pines, MN 55014 Sanimax USA, 505 Hardman Ave., So. St. Paul, MN 55075 Walters Recycling, 2830 101st Ave. NE, Blaine, MN 55449 Waste Management, 10050 Naples St. NE, Blaine, MN 55449 Rental – New 4553 Hampshire Ave. N. – Sokari Afonya (Conditional) 3546 Xenia Ave. N. – Lacey Mwaura (Conditional) Rental – Renewal 4631 Adair Ave. N. – Shong Moua (Conditional) 5333 Byron Ave. N. – Premium Property Group 3960 Douglas Dr. N. – Ruth Klatte 4237 Douglas Dr. N. – Drew Kabanuk (Conditional) 5115 Douglas Dr. N. – Joy Joyce LLC (Conditional) 5153 Douglas Dr. N. – Bonnie McVeigh (Conditional) 5306 Hampshire Ave. N. – Qz Funding LLC 5700 Hampshire Ave. N. – Todd Campbell 5913 Hampshire Ave. N. – Lance Rosenberg 6701 Lombardy La. – Iron Eagle Farms LLC 4757 Louisiana Ave. N. – Princess Yanforth Wilson 4806 Louisiana Ave. N. – Shea Nelson (Conditional) 3250 Nevada Ave. N. – William Norberg (Conditional) 5607 Regent Ave. N. – Herman Capital Partners 5817 Regent Ave. N. – Lien Lam (Conditional) 3300 Welcome Ave. N. – Bridge SFR IV Seed Borrower LLC (Conditional) 4433 Welcome Ave. N. – Lien Lam (Conditional) 4755 Welcome Ave. N. – Independent Properties LLC (Conditional) 5002 Welcome Ave. N. – William Griswold Rev Trust 4724 Xenia Ave. N. – Liem Lam (Conditional) 3237 Zane Ave. N. – MJA Capital Management LLC (Conditional) 3703 Zane Ave. N. – Mark Butler (Conditional) 5600 35th Ave. N. – Nothome Properties LLC 6215-6217 47th Ave. N. – Vallinayaki Palanisami (Conditional) 6610-6614 50th Ave. N. – Jeff Petersen (Conditional) 6619 50th Ave. N. – Quyen North 5416 51st Ave. N. – Moncia Sharma Hanssen (Conditional) Solicitor Elwin Detzler for Legacy Restoration, 15350 25th Ave. N., Suite 114, Plymouth, MN 55447 Tobacco Ashley’s Liquor, Inc. dba Ashley’s Liquor, 4920 West Broadway, Crystal, MN 55429 4.2 “Service with Compassion, Integrity, & Professionalism” TO: FROM: CC: DATE: Mayor and Council Members Stephanie K. Revering, Chief of Police Adam R. Bell, City Manager September 28, 2023 SUBJECT: Consent Agenda: October 3, 2023 Council Meeting ___________________________________________________________________________ MMEEMMOORRAANNDDUUMM BACKGROUND Last year, our police department partnered with our school district (Adult Academic Learning Center) and the Office of Traffic Safety to enter into a grant agreement regarding a project called Multicultural Adult Driving Education. This is a program focused on new immigrants and our officers teaching them how to drive and obtain their MN Driver’s License. We would like to participate in this grant once again which is completely paid for by the State of Minnesota through the Office of Traffic Safety (Department of Public Safety). OUR ASK Approve the resolution before you. As always, please let me know if you have any questions. Thanks. CCCRRRYYYSSSTTTAAALLL PPPOOOLLLIIICCCEEE DDDEEEPPPAAARRRTTTMMMEEENNNTTT 4.3 CITY OF CRYSTAL MINNESOTA RESOLUTION NO. 2023 - ____ RESOLUTION AUTHORIZING EXECUTION OF AGREEMENT WITH THE MN DEPARTMENT OF PUBLIC SAFETY, OFFICE OF TRAFFIC SAFETY WHEREAS, the City Council has authorized the City of Crystal Police Department to enter into a grant agreement with the Minnesota Department of Public Safety, Office of Traffic Safety for the project entitled 2023 Multicultural Adult Driver Education during the period from October 1, 2023 through September 30, 2024. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Crystal as follows: 1.The Deputy Police Chief is hereby authorized to execute such agreements and amendments as are necessary to implement the project on behalf of the City of Crystal Police Department and to be the fiscal agent and administer the grant. Adopted by the Crystal City Council this 3rd day of October 2023. BY THE CITY COUNCIL _________________________________ Jim Adams, Mayor ATTEST:____________________________ Christina Serres, City Clerk 4.3 DATE: September 27, 2023 TO: Adam R. Bell, City Manager City of Crystal City Council FROM: Jean McGann, Contracted Finance Director RE: Expenditures over $25,000 Payee Amount LMCIT Q4 2023 workers compensation insurance $155,133.00 Metropolitan Council Environ Svs Wastewater services for October $138,936.19 Northdale Construction Company 2023 Utility Reconstruction AFP #5 $292,091.68 West Metro Fire Rescue District September contribution to West Metro Fire $123,281.10 Ziegler Inc.New/Replacement tractor backhoe $212,656.68 IRS - EFTPS Federal & FICA withholding taxes for 9/15/23 pay date $66,451.34 MN PERA Employee & city required contributions for 9/15/23 pay date $68,284.55 $1,056,834.54 Description 6.1 Memorandum DATE: September 25, 2023 TO: Mayor and City Council Adam Bell, City Manager FROM: Jodi Bursheim, Abdo Financial Solutions SUBJECT: Provide opportunity for public input on the Proposed 2024 Property Tax Levies, 2024 Preliminary General Fund budget, and the 2024 EDA levy. Background The City Council has held work sessions to discuss property tax levies and budget proposals. The outcomes of these budget work sessions are to provide for a preliminary property tax levy increase of $1,515,022 recognizing the City has the opportunity to reduce the overall property tax levy before the final certification is due on December 28, 2023; however, the property tax levy may not be increased. The overall levy is proposed to increase by 10.0%. The emphasis for the 2024 budget has been to focus on meeting current service demands of the community and legislative mandates while striving for minimal impact on taxpayers, providing competitive wages and benefits to retain quality people, providing effective and efficient services to our residents and businesses, continuing to invest in future capital needs including Parks and Street Improvements, and planning for increases in fund balance to meet target levels. W hile property taxes support approximately 75% of General Fund activity, they also support parks, street reconstruction, and the police revolving fund throughout the city. In addition, property taxes support, through internal service fund allocations, fleet, buildings, and information technology. Throughout the last couple of months, staff and council continued to refine overall revenues and expenditures resulting in a decrease from the original proposed levy of 13.06% to a revised levy increase of 10%. Significant changes included the City leveraging one-time state funding for public safety to offset the costs of the new crime analyst position that was proposed in the 2024 Police budget. In addition, the capital funding levy for the Police Equipment Revolving Fund (PERF) was reduced to invest additional dollars to increase general fund balance reserves (the long-term plan projects adequate funding for this reduced PERF amount). Increased Local Government Aid (LGA) also contributed to additional revenue to offset the planned increase in overall expenditures. It is important to maintain healthy reserves as local governments rely heavily on property tax revenue and need to have sufficient cash flow between property tax collection cycles to maintain operations. The 2024 revised budget reflects an increase of $488,233 to general fund reserves. This amount, as well as existing reserves, could fluctuate based on actual operations. Public Input At the September 5th meeting, the City Council announced December 5th as the date for the 2024 budget and tax levy Truth-in-taxation public input meeting. The City Council also set aside October 3rd as an additional date to receive public comment. During these meetings, citizens are encouraged to provide input on the budget and property tax levy being proposed for 2024. 6.2 Conclusion The City Council is requesting public input on the 2024 proposed property tax levy, 2024 preliminary General Fund Budget, and the 2024 proposed EDA levy. 2024 Revised 2024 Increase (Decrease) 2024 % Change General levy 14,818,719$ 1,278,514$ 9.44 % Capital Improvements Police Equipment Revolving 92,211 (68,987) -42.80 Park Improvement 882,753 141,696 19.12 Street Construction 529,047 144,826 37.69 Total Capital Improvements levy 1,504,011 217,536 16.91 EDA 335,172 18,972 6.00 Total levy 16,657,902$ 1,515,022$ 10.00 % 6.2 2024 Budget October 3, 2023 6.2 Agenda Budget Goals Council Goals Budget Timeline 2024 Budget factors General Fund Summary of revenue and expenditures Overview of Increase EDA Summary Property Tax Levy Tax Impacts Council Comments and/or Questions 6.2 Budget Goals Meet service demands of the community and legislative mandates while striving for minimal impact to taxpayers. Meet Council’s four priorities. Provide sound financial planning for a two-year budget that ensures continued core services. Continue to fund future capital needs including Parks & Street Improvements. Monitor economic challenges. Provide competitive wages and benefits to attract and retain quality people to provide effective and efficient services to our residents and businesses. 6.2 Council Goals Thriving Business Climate Beautification and branding (seasonal planters, banners, litter clean-up along major corridors) Outreach to prospective businesses and promotion of new business openings Strong Neighborhoods Implementation of Parks Master Plan Home improvement grants and loans Code enforcement Public safety Sound Financial Policies Biennial budget Long term plan Utility Study Welcoming/Inclusive Community Inclusive play areas Joint Community Police Partnerships Continued partnership with embedded domestic advocacy group Community events Partnership with Hennepin County –mental health programming 6.2 Budget Timeline October 3rd Public input presentation December 5th Receive Public Input and Council to consider final budget and levies 6.2 Impacts for 2024 •Utilities staffing increase –one person for meter maintenance and replacements (Paid for by Utility Funds NOT General Fund) •Police staffing increase –Crime Analyst position •Three Elections •Planned capital levy increases •Worker compensation and insurance premium increases •Settled Union Contracts (Police officers and Police Supervisors) •Additional LGA funds •One-time Public Safety/Police Aid •Invest in increased fund reserves •Unsettled labor agreements (Public Works) •City Manager wage allocation change -(50% GF / 50% EDA to 75% GF / 25% EDA) •Property value impacts 6.2 General Fund Summary 2022 2022 2023 2024 2024 % Increase Adopted Actual Adopted Original Revised 2024 REVENUES (2024 Revised over 2023) Property taxes - operations 12,586,094$ 12,488,689$ 13,697,548$ 15,271,008$ $ 14,892,219 9% Special assessments and other 52,000 27,432 71,950 51,950 31,950 -56% Licenses and permits 850,960 850,950 932,660 903,860 918,460 -2% Intergovernmental revenues 1,777,489 1,927,302 1,655,044 1,559,485 3,015,473 82% Charges for services 863,853 876,702 778,475 796,195 752,595 -3% Fines & forfeits 275,000 184,396 186,500 186,500 188,876 1% Investment income 125,000 (173,505) 100,000 100,000 47,000 -53% Miscellaneous 68,000 41,054 44,500 44,500 24,500 -45% Other (interfund servcies transfers-in)505,185 505,214 671,295 704,173 711,601 6% TOTAL REVENUES 17,103,581$ 16,728,234$ 18,137,972$ 19,617,671$ $ 20,582,674 13% EXPENDITURES General Government 2,353,195$ 2,420,396$ 2,573,075$ 2,838,141$ $ 2,747,113 7% Public safety 8,515,723 9,082,615 9,167,039 9,960,740 10,377,741 13% Community Development 742,832 735,302 823,802 862,680 854,612 4% Public works 3,239,980 3,347,970 3,349,558 3,558,026 3,615,761 8% Recreation 2,251,851 2,399,397 2,224,498 2,398,084 2,499,214 12% Other Financing Uses - Transfers Out - - - 488,233 TOTAL EXPENDITURES 17,103,581$ 17,985,680$ 18,137,972$ 19,617,671$ $ 20,582,674 13% 6.2 General Fund Expenditures General Government 13% Public safety 51% Community Development 4% Public works 18% Recreation Other -Transfers Out 2% 6.2 2024 General Fund Increase - $2,444,702 REVENUES Property taxes $ 1,194,671 Special assessments & other $ (40,000) Licenses & Permits $ (14,200) Intergovernmental revenues $ 1,360,429 Charges for services $ (25,880) Fines & forfeits $ 2,376 Investment income $ (53,000) Miscellaneous $ (20,000) Other $ 40,306 Total $ 2,444,702 EXPENDITURES General Government $ 174,038 Public safety $ 1,210,702 Community Development $ 30,810 Public works $ 266,203 Recreation $ 274,716 Other Financing Uses -Transfers Out $ 488,233 Total $ 2,444,702 6.2 EDA Budget Summary Revenue 2020 Actual 2021 Actual 2022 Actual 2023 Adopted 2024 Proposed Property Taxes - Adopted Levy 282,744$ 300,000$ 310,122$ 316,200$ 335,172$ Prior Years' Delinquent Taxes 1,191$ 1,471$ 1,605$ -$ -$ Special Assessments*20,107$ 20,003$ 32,839$ 32,834$ 32,834$ Interest Income 79,686$ (10,026)$ (39,171)$ 8,000$ 8,000$ Miscellaneous Revenue -$ 273$ 14,533$ -$ 26,800$ Total Revenue 383,728$ 311,720$ 319,927$ 357,034$ 402,806$ Expenditures 2020 Actual 2021 Actual 2022 Actual 2023 Adopted 2024 Proposed Personnel Services 312,634$ 330,071$ 299,173$ 271,358$ 232,708$ Professional, Audit & Legal Services 17,163$ 8,160$ 31,306$ 26,000$ 32,000$ Contractual Services*5,136$ 77,980$ 3,484$ 5,000$ 15,000$ Internal Service Fund Charges -$ 4,568$ 5,186$ 5,215$ 7,354$ Home Improvement Grant Program 40,511$ 91,470$ 33,625$ 25,300$ 26,800$ Branding and Beautification 10,550$ 12,228$ 6,251$ 20,050$ 40,550$ Façade Improvement Grants -$ -$ 12,500$ -$ 40,000$ Miscellaneous Operating Expenses 3,127$ 2,437$ 5,849$ 5,000$ 7,100$ Total Expenditures 389,119$ 526,914$ 397,374$ 357,923$ 401,513$ Net Revenue Over (Under) Expenditures 2020 Actual 2021 Actual 2022 Actual 2023 Adopted 2024 Proposed (5,392)$ (215,194)$ (77,447)$ (889)$ 1,293$ Fund Balance at Year End 2020 Actual 2021 Actual 2022 Actual 2023 Adopted 2024 Proposed Actual* / Forecast based on budget 2,438,443$ 2,310,250$ 2,232,803$ 2,231,914$ 2,233,207$ *Proceeds from property sales go into the fund balance but do not show up as revenue. This means the year-to-year change in the fund balance may not match that year's net revenue over (under) expenditures. *Special assessments are the method of repayment for EDA financing of installation of fire protection systems. 2024 special assessment revenue is comprised of $20,000 from 6105 42nd Ave N and $12,834 from 5600 56th Ave N. *2021 contractual services expenditures included $64,170 for installation of a fire protection system at 5600 56th Ave N. 6.2 Property Tax Levy 2022 Adopted 2023 Adopted 2023 Increase (Decrease) 2023 % Change 2024 Proposed 2024 Increase (Decrease) 2024 % Change 2024 Revised 2024 Increase (Decrease) 2024 % Change General levy 12,508,518$ 13,540,205$ 1,031,687$ 8.25 % $ 15,222,508 $ 1,682,303 12.42 %14,818,719$ 1,278,514$ 9.44 % Capital Improvements Police Equipment Revolving 158,037 161,197 3,160 2.00 164,421 $ 3,224 2.00 92,211 (68,987) -42.80 Park Improvement 606,999 741,057 134,058 22.09 882,753 $ 141,696 19.12 882,753 141,696 19.12 Street Construction 245,926 384,221 138,295 56.23 529,047 $ 144,826 37.69 529,047 144,826 37.69 Total Capital Improvements levy 1,010,962 1,286,475 275,513 27.25 1,576,221 $ 289,746 22.52 1,504,011 217,536 16.91 EDA 310,000 316,200 6,200 2.00 322,524 $ 6,324 2.00 335,172 18,972 6.00 Total levy 13,829,480$ 15,142,880$ 1,313,400$ 9.50 % $ 17,121,253 $ 1,978,373 13.06 %16,657,902$ 1,515,022$ 10.00 % 6.2 Tax Impacts 2023 2024 Percent of Change Levy * not including HRA $14,826,680 $16,322,730 10.09% Levy - including HRA $15,142,880 $16,657,902 10.00% Net Tax Capacity $27,087,605 $28,903,880 6.71% Tax Rate 46.43%48.28%3.98% Percentile Home Value Estimated Annual Increase Percentage of Increase 10th $242,900 $88 8.47% 30th $269,700 $97 8.31% 50th $293,400 $121 9.51% 70th $320,640 $143 10.25% 90th $374,380 $178 10.81% Proposed Tax Impact for 2024 6.2 2024 Revised Budget reflects Council work session objectives Reduction in Levy increase Revised from 2024 original increase of 13.06% to 10.00% Invest in Long-term Capital Funds Includes additional investment of $217K to capital funds Invest in increasing Fund Balance targets Includes proposed transfer to fund balance of $488K 6.2 Unassigned Fund Balance $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 ACTUAL YE 2019 ACTUAL YE 2020 ACTUAL YE 2021 ACTUAL YE 2022 FORCASTED YE 2023 FORCASTED YE 2024 Unassigned Fund Balance Policy Benchmark (45% of next year's budget)State Auditor 35% Benchmark 6.2 Questions & Comments 6.2