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HomeMy WebLinkAboutCity_Council_Packet_5-22-19CITY OF FALCON HEIGHTS Regular Meeting of the City Council City Hall 2077 West Larpenteur Avenue AGENDA May 22, 2019 at 7:00 P.M. A. CALL TO ORDER: B. ROLL CALL: Vacant ___ LEEHY____ HARRIS____ MIAZGA ___ GUSTAFSON___ STAFF PRESENT: THONGVANH____ C. PRESENTATION 1. Year End 2018 Annual Audit Report D. APPROVAL OF MINUTES: 1. May 8, 2019 City Council Meeting Minutes E. PUBLIC HEARINGS: F. CONSENT AGENDA: 1. General Disbursements through: 5/16/19 $173,909.26 Payroll through: 5/15/19 $19,718.64 2. 6-Month Performance Evaluation for Justin Markon, Community Development Coordinator 3. City Hall Summer Hours 4. Increase Petty Cash for Parks and Recreation Programs G: POLICY ITEMS: 1. Conduit Bonding – Amber Union (1667 Snelling Ave-Formally TIES Building) 2. State Bonding Application for Falcon Heights Community Park H. INFORMATION/ANNOUNCEMENTS: I. COMMUNITY FORUM: J. ADJOURNMENT: BLANK PAGE  REQUEST FOR COUNCIL ACTION Families, Fields and Fair __________________________ The City That Soars! Item Year End 2018 Annual Audit Report Description Matt Meyer of KDV will present the Comprehensive Annual Financial Report for the Year Ended December 31, 2018. The Financial Report is a complex document that includes evaluation and analysis of the financial stability of the City as it relates to General Fund, Capital Funds, Proprietary Funds, and Debt Service Funds. Mr. Meyer will provide a high-level overview of the financial stability of the City for year-end 2018. Communication Letter Compliance Report Comprehensive Annual Financial Report (CAFR) 2018 Budget Impact N/A Attachment(s) N/A Action(s) Requested Motion to accept and approve the Year End 2018 Annual Audit Report Meeting Date May 22, 2019 Agenda Item Presentations C1 Attachment CAFR Documents Submitted By Sack Thongvanh, City Administrator 1 of 56 BLANK PAGE  2 of 56 Page 1 | 5 CITY OF FALCON HEIGHTS Regular Meeting of the City Council City Hall 2077 West Larpenteur Avenue AGENDA May 8, 2019 at 7:00 P.M. A. CALL TO ORDER: B. ROLL CALL: Vacant ___ LEEHY__X__ HARRIS_X___ MIAZGA _X__ GUSTAFSON___ STAFF PRESENT: THONGVANH_X___ Mayor Pro-Tem Leehy Mayor Gustafson is not here today and is out of town. He communicated to us that he would not be in tonight’s meeting. C. PRESENTATION D. APPROVAL OF MINUTES: 1. April 10, 2019 City Council Meeting Minutes Approved 3-0 E. PUBLIC HEARINGS: F. CONSENT AGENDA: 1. General Disbursements through: 5/03/19 $240,929.03 Payroll through: 4/30/19 $36,472.90 2. Approval of City License(s) 3. Resignation of Alyssa Schmeling from the Falcon Heights Park and Recreation Commission 4. Park Program Fund Donation(s) 5. Pavement Condition Assessment Quote Council Member Harris The city license that we are approving is All Season’s Tree Services and Snowplowing, Inc. The city received a donation from James Kernick D.D.S. ($200). Mayor Pro-Tem Leehy If you have a tree service contractor who is not license in Falcon Heights, please contact City Hall. They will help you with the process. I want to thank you, Alyssa Schmeling, for her hard work and time in the Park and Recreation Commission. 3 of 56 Page 2 | 5 Council Member Harris Moved, Approved 3-0 G: POLICY ITEMS: 1. Minnesota State Horticultural Society: Garden –In-A-Box Vegetable Garden Kits City Administrator Thongvanh The Garden-In-A-Box program was created by the Minnesota State Horticulture Society (MSHS) in 2008. MSHS distributes vegetable gardening kits to community groups and their mission is to teach vegetable gardening to children and families. The program provides opportunities to affordable healthy food, outdoor activity, education, and community building. The City of Falcon Heights will be collaborating with the MSHS for the Garden-In-A-Box Program. The boxes will be place at Falcon Heights Elementary, City Hall, Larpenteur Manor apartments, and senior apartment complexes. Mayor Pro-Tem Leehy Before this meeting, Nalisha and I were at Falcon Heights Town Square and met with the senior residents. They suggested an idea to have raised garden beds and allow them to garden. Nalisha was able to find Garden- In-A-Box and spread the word out. It will help bring in the intergenerational aspect of people from within the community and working together. The Garden-In-A-Box will help students at Falcon Heights Elementary school to transition into the summer programs, and they are thrilled to have it there. This is an informational announcement for the city and no need for action. No Action Needed 2. Consider Changes to City Code Regarding Building Height City Administrator Thongvanh One of the goals for 2019 is to clean outdated sections of City Code. The sections are building height definition, clarification for the R1 single-family district, and a more straightforward description for accessory buildings (primarily, detached garages). Planning Commission expressed support for changing the definition of building height to be more in line with regulations of nearby cities. This definition would provide a higher height allowance for pitched roofs, as height would be measured from the midpoint of the highest gable. The Planning Commission held a Public Hearing during their meeting on April 24, 2019, to consider these changes. Commissioners voted unanimously to recommend these changes. Council Member Harris By changing the definition, it allows more space for building within the house. We did not raise the house’s height limits but changed the definition, which could allow more building and occupancy. It will also help residents to renovate their homes and align with other surrounding cities. Council Member Miazga Moved, Approved 3-0 4 of 56 Page 3 | 5 3. Domestic Partner Registry Fees City Administrator Thongvanh In 2011, the City Council adopted Ordinance 11-03, which authorized a domestic partnership registry in the city. The fee was never included in the city fee schedule. Recently, the city has been receiving calls about domestic partner registry in Falcon Heights. City staff contacted the City Attorney and those who advocated for the registry in 2011. A domestic partner registration may still be a relevant decision for some couples, and therefore the city should keep the registry. Council Member Miazga asked if the city received any domestic partner registry in the last two years rather than getting married. City Administrator Thongvanh stated that in the previous 4 years the city never received any domestic partner registry. Council Member Harris stated that it was adopted in 2011 before the legislature made same-sex marriage legal. People were thrilled when we passed the Domestic Partner Registry and she is surprised to see it relevant again. Mayor Pro-Tem Leehy also added that it would affect people’s employers, out of state and federal level, insurance, and hospital visiting. I want to thank City Administrator Thongvanh and city staff for the fast response for our residents. Council Member Harris Moved, Approved 3-0 H. INFORMATION/ANNOUNCEMENTS: • Cultivating a Caring Community Speakers i. Ron Rabinovitz “Letters from Jackie” – Baseball Hall of Fame Jackie Robinson May 23 at 7:00 pm at City Hall ii. Panelists –“Healing and Understanding” July 6 from 6:30pm to 8:00 pm at City Hall 1. Valerie Castile – Mother of Philando Castile and Activist 2. John Thompson – Nonprofit Director 3. Hawa Samatar – Active Resident, Community Volunteer and Falcon Heights Planning Commissioner Council Member Miazga • I will be traveling for work from May 15 - 22 and will be back in time for the May 23 event. I will not make it to the July 6 event because I will be out of town. If it is acceptable, I want to make a donation for food and beverages. • City Administrator Thongvanh and I continue to work on the bonding application. We do have a resolution of support. I hope that it will be in the next city council meeting agenda. We are also working with the U of M to write a resolution support. • Environment Commission is going great. We are looking at grant money, and Jim Wassenberg has been attending other Environment Commission’s meetings to get ideas for our city. • NYFS annual gala went very well. I am sad to announce that President Jerry Hromatka will be stepping down in the next 13 months. • The Hendrickson project is looking great and getting bigger. • I ordered 20 copies of The Mueller Report. I think it is vital for our citizens to know about the facts. If you are interested in wanting a free copy, please give me a call or send an email. 5 of 56 Page 4 | 5 Council Member Harris • No report tonight. City Administrator Thongvanh • Planning Commission is holding a PUD public hearing with Buhl Investors for the TIES Building (1667 Larpenteur Ave). Buhl Investors officially owns the building and are looking at 106 affordable housing units. In the next two weeks, Buhl Investors will be at the city council meeting and present a resolution in support of bonding for them. They also applied for state bonding and a Met Council grant. • The mural at Falcon Heights Elementary is complete. CTV would like to do a recording with the school board and city council. I will reach out to everyone for his or her availability for a ribbon cut. • I will meet with Mike Bradbury from the Parks and Recreation Commission and discuss the basketball court in Curtiss Field. The court is not up yet because the ground is not dry enough. • In the last couple of years, I have had my Community Development Coordinator work on a Code Corner that consists of informational items. The Environment Commission has been working on their corner. This week’s E-news will have a publication of an Environment Corner. • Public Works will be doing street sweeping again and clean up the streets. We try to notify residents as much as possible so residents can move their vehicles. Mayor Pro Tem Leehy • I encourage residents to sign up on our Listserv to get information from the city. The city will send email regarding what is happening in your neighborhood, newsletters, crime alerts, and announcement from the City Administrator. • Ron Rabinovitz “Letters from Jackie” – Baseball Hall of Fame Jackie Robinson will be on May 23 at 7:00 pm at City Hall • “Healing and Understanding” will be on July 6 from 6:30pm to 8:00 pm at City Hall. The speakers are Valerie Castile – Mother of Philando Castile and activist, John Thompson a nonprofit director and friend of Philando Castile, and Hawa Samatar, a community volunteer and Falcon Heights Planning Commissioner. July 6 is also the second annual Restoration Day. • In order to increase CTV’s communication strategies, the city added a CTV section on the website and residents could have access to city council meetings, events, and announcements. In regards to the mural, CTV will also be there to broadcast the grand opening. The city wants to thank Melodee Strong for her hard work and dedication to get it completed. • Parks and Recreation Commission meeting is on Monday, June 3, at 6:30pm. We have some very active commissioners who are coming up with ideas to engage with the community. I. COMMUNITY FORUM: 6 of 56 Page 5 | 5 J. ADJOURNMENT: 7:40 P.M. ________________________________ Melanie Leehy, Mayor Pro Tem Dated this 8th day of May, 2019 _________________________________ Sack Thongvanh, City Administrator 7 of 56 BLANK PAGE  8 of 56 REQUEST FOR COUNCIL ACTION Families, Fields and Fair __________________________ The City That Soars! Item General Disbursements and Payroll Description General Disbursements through: 5/16/19 $173,909.26 Payroll through: 5/15/19 $19,718.64 Budget Impact The general disbursements and payroll are consistent with the budget. Attachment(s) • General Disbursements and Payroll Action(s) Requested Staff recommends that the Falcon Heights City Council approve general disbursements and payroll. Meeting Date May 22, 2019 Agenda Item Consent F1 Attachment General Disbursements and Payroll Submitted By Roland Olson, Finance Director 9 of 56 BLANK PAGE  10 of 56 11 of 56 12 of 56 13 of 56 14 of 56 15 of 56 16 of 56 17 of 56 18 of 56 19 of 56 BLANK PAGE  20 of 56 REQUEST FOR COUNCIL ACTION Families, Fields and Fair __________________________ The City That Soars! Item Community Development Coordinator Justin Markon’s 6 Month Employee Step Adjustment Description Justin Markon was appointed by the City Council on September 11, 2018 with a start date of September 17th, 2018. Justin has completed his first 6 months with the City. It is the practice of the City to reward after the 6 month probationary period with up to a 5% step increase in their base salary. Budget Impact There are available funds for this step adjustment. Attachment(s) N/A Action(s) Requested I recommend that the Falcon Heights City Council approve a 5% step adjustment for Justin Markon effective March 17, 2019. Meeting Date May 22, 2019 Agenda Item Consent F2 Attachment N/A Submitted By Sack Thongvanh, City Administrator 21 of 56 BLANK PAGE  22 of 56 REQUEST FOR COUNCIL ACTION Families, Fields and Fair __________________________ The City That Soars! Item City Hall Summer Hours Description For the past several years, the City has implemented a modified schedule during summer months. During the summer months, especially on Fridays, the amount of walk-in and phone call requests for service drops off dramatically. Many cities use this as an opportunity to employ alternative hours of operation, commonly known as “summer hours”. Currently, normal hours of operation are Monday – Friday, 8:00 a.m. – 4:30 p.m. Staff is proposing that the City of Falcon Heights use the following schedule between Memorial Day and Labor Day: Monday – Thursday 7:30 am – 5:00 pm Friday 7:30 am - noon This would allow for City Hall to still be open the same number of hours per week (42.5) and for employees to still work the same number of total hours (40, with one ½ hour break each day). It would also allow City Hall customers the ability to come in a ½ hour earlier and later in the day to conduct business. We will publicize this through our normal methods (email, website, flyers, newsletters, and social media). We would also insert a notice on all permit applications so that contractors and/or residents do not come to city hall on Friday afternoon hoping to pick up permits for their weekend projects. Notice will also be given to those who rent facilities that building keys will need to be picked up before noon on Friday. Budget Impact N/A Meeting Date May 22, 2019 Agenda Item Consent F3 Attachment N/A Submitted By Sack Thongvanh, City Administrator 23 of 56 Attachment(s) None Action(s) Requested Staff recommends that the Falcon Heights City Council adopt the summer hours schedule explained above from Memorial Day to Labor Day. 24 of 56 REQUEST FOR COUNCIL ACTION Families, Fields and Fair __________________________ The City That Soars! Item Increase Petty Cash for Park & Recreation Programs Description The recreational sports program needs flexibility in procuring needed supply items for its programs. For example, fresh food for the cooking classes from the local farmers market and a local super market. Also, program supplies are often needed from stores such as Michaels and other craft supply stores with which the city doesn’t have an account. It is impractical to pay for these items in any other manner. Staff recommends increasing the current petty cash fund from a $250 level up to a $500 level. Nalisha Nandkumar, assistant to the city administrator and recreation supervisor would oversee use of this additional $250. Original Receipts for all expenditures of funds would be required. Claims to replenish this petty cash fund would be presented to the city council for approval. At the conclusion of the recreational sports season, the petty cash fund would be reduced to the $250 level. Budget Impact NA Attachment(s) NA Action(s) Requested Staff recommends a motion to increase the petty cash fund from a level of $250 to a level of $500 to be used in the recreational sports program. Meeting Date May 22, 2019 Agenda Item Consent F4 Attachment N/A Submitted By Nalisha Nandkumar, Recreation Supervisor 25 of 56 BLANK PAGE  26 of 56 REQUEST FOR COUNCIL ACTION Families, Fields and Fair __________________________ The City That Soars! Item Conduit Bonding for Amber Union -1667 Snelling Ave (Formally Known as TIES) Description The City received a request from Buel Investments for the issuance of Conduit Revenue Bonds for a multifamily housing development bonds to finance the purchase and renovation of an existing historic office building into an approximately 106-unit multifamily housing facility located at 1667 Larpentuer Ave. State and federal laws allow local government units to enter into arrangements to issue bonds and loan the proceeds to private developers to finance or refinance affordable housing projects. This project will also take advantage of low-income housing tax credits. The issuance of the Bonds will not affect the Issuer’s credit rating on bonds it issues for municipal purposes. Unlike the 501(c)(3) bonds that the City is familiar with, multifamily housing development bonds are not applied against the City’s $10,000,000 calendar year limit on bank qualified bonds. Therefore, the City may issue the Bonds, which currently anticipated not to exceed $40,000,000. An application for volume cap allocation will be made to the Minnesota Management and Budget (MMB) later this summer. Prior to that, the City must adopt an inducement resolution. Such resolution will allow the Borrower to reimburse itself out of Bond proceeds for cost incurred prior to the issuance of the Bonds. The attached resolution will include four parts: 1. Calling for a Public Hearing on a Proposal for a Housing Finance Program 2. Giving Preliminary Approval to the Issuance of Housing Facility Revenue Bonds 3. Authorizing the Publication of a Notice of the Hearing 4. Authorizing an Inducement Resolution Meeting Date May 22, 2019 Agenda Item Policy G1 Attachment N/A Submitted By Sack Thongvanh, City Administrator 27 of 56 Budget Impact N/A Attachment(s) Action(s) Requested Staff recommends that the Falcon Heights City Council adopt the summer hours schedule explained above from Memorial Day to Labor Day. 28 of 56 11736387v1 Catherine J. Courtney (612) 977-8765 ccourtney@briggs.com May 15, 2019 BY E-MAIL Sack Thongvanh City Administrator City of Falcon Heights 2077 Larpenteur Ave. W Falcon Heights, MN 55113-5551 Re: Issuance of Conduit Revenue Bonds by the City of Falcon Heights for Multifamily Affordable Housing Project at 1667 Snelling Avenue Dear Mr. Thongvanh: This letter is provided to follow-up on discussions that we have had regarding the City of Falcon Heights (the “City” or “Issuer”) acting as the issuer of multifamily housing development bonds (the “Bonds”) to finance the acquisition and renovation of an existing historic office building into an approximately 106-unit multifamily housing facility, to be known as Amber Union Apartments, for low- and moderate-income individuals and families to be located at 1667 Snelling Avenue, which is on the southwest corner of Snelling Avenue and Larpenteur Avenue, in the City, at the request of Buhl GTA, LP, a Minnesota limited partnership (the “Borrower”), with Buhl GTA GP, LLC, a Minnesota limited liability company, as the general partner. Briggs and Morgan, Professional Association would act as bond counsel on the issuance of such Bonds. Dougherty & Company, LLC will act as underwriter or placement agent. State and federal laws allow local government units to enter into arrangements to issue bonds and loan the proceeds to private developers to finance or refinance affordable housing projects. This assistance reduces borrowing costs for such borrowers and enables them to provide affordable housing for the residents of the City more cost effectively. It is a fairly common means of obtaining necessary financing for such projects. Oftentimes such projects will also take advantage of low-income housing tax credits, which I believe is anticipated with this project. To accomplish this purpose, the Issuer will enter into a Loan Agreement with the Borrower under which the Borrower will agree to pay all principal and interest on the Bonds. The Issuer will assign all of its rights to payments under the Loan Agreement to a lender or trustee and loan the purchase price of the Bonds directly to the Borrower. The Issuer is merely a conduit and the money and obligations flow only between the lender or trustee and the Borrower. 29 of 56 11736387v1 Sack Thongvanh May 15, 2019 Page 2 The Bonds and the resolutions adopted by the Issuer will recite that the Bonds, if and when issued, will not to be payable from or charged upon any of the Issuer’s funds, other than the revenues received under the Loan Agreement and pledged to the payment of the Bonds, and the Issuer is not subject to any liability on the Bonds. No holder of the Bonds will ever have the right to compel any exercise by the Issuer of its taxing powers to pay any of the principal of the Bonds or the interest or premium thereon, or to enforce payment of the Bonds against any property of the Issuer except the interests of the Issuer in payments to be made by the Borrower under the Loan Agreement. The Bonds will not constitute a charge, lien, or encumbrance, legal or equitable, upon any property of the Issuer, except the interests of the Issuer in payments to be made by the Borrower under the Loan Agreement. The Bonds are not moral obligations on the part of the State or its political subdivisions, including the Issuer, and the Bonds will not constitute a debt of the Issuer within the meaning of any constitutional or statutory limitation. The issuance of the Bonds will not affect the Issuer’s credit rating on bonds it issues for municipal purposes. Unlike the 501(c)(3) bonds that the City is familiar with, multifamily housing development bonds are not applied against the City’s $10,000,000 calendar year-limit on bank-qualified bonds. Therefore, the City may issue the Bonds, which are currently anticipated not to exceed $45,000,000, while still maintaining its ability to issue up to $10,000,000 of bank-qualified bonds for itself or 501(c)(3) organizations. The City’s one-time issuer administration fee would be calculated based on the principal amount of the Bonds actually issued. The Bonds will be issued in accordance with Minnesota Statutes, Chapter 462C. An application for volume cap allocation will be made to Minnesota Management and Budget (“MMB”) later this summer. Prior to that, the City must adopt an inducement resolution, which will be included with the application. Such resolution will also allow the Borrower to reimburse itself out of Bond proceeds for costs incurred prior to the issuance of the Bonds. That is particularly important in this case, as the Borrower has already acquired the building and will want to be able to reimburse itself for the purchase price. As the acquisition occurred in mid-April, the inducement resolution must be adopted soon in order to preserve this reimbursement capability. A copy of the proposed inducement resolution is enclosed and it is proposed that it be adopted by the City Council at its May 22nd meeting. Following the award of an allocation by MMB, the Issuer will also hold a public hearing on the housing program. The housing program will be submitted to the Metropolitan Council for its review. As the schedule for the overall transaction has not yet been determined, instead of setting a specific date for the public hearing at this time, the proposed inducement resolution grants the City Administrator the authority to set the public hearing date at an appropriate time. Briggs and Morgan will be responsible for submitting the public hearing notice to the newspaper and the housing program to Met Council. 30 of 56 11736387v1 Sack Thongvanh May 15, 2019 Page 3 Please feel free to contact me if you have any further questions or comments. The Borrower appreciates the consideration of the City in this matter. Very truly yours, Catherine J. Courtney CJC Enclosure 31 of 56 BLANK PAGE  32 of 56 11721771v2 Extract of Minutes of a Meeting of the City Council of the City of Falcon Heights, Minnesota Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Falcon Heights, Minnesota, was duly called and held at the City Hall in said City on Wednesday, the 22nd day of May, 2019, at 7:00 p.m. The following members were present: and the following were absent: Member _________ introduced the following resolution and Member __________moved its adoption: RESOLUTION CALLING FOR A PUBLIC HEARING ON A PROPOSAL FOR A HOUSING FINANCE PROGRAM AND GIVING PRELIMINARY APPROVAL TO THE ISSUANCE OF HOUSING FACILITY REVENUE BONDS TO FINANCE A MULTIFAMILY HOUSING PROJECT PURSUANT TO MINNESOTA LAW, AND AUTHORIZING THE PUBLICATION OF A NOTICE OF THE HEARING (AMBER UNION APARTMENTS PROJECT) The motion for the adoption of the foregoing resolution was fully discussed thereof and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. 33 of 56 11721771v2 2 CITY OF FALCON HEIGHTS COUNCIL RESOLUTION May 22, 2019 No. 19-18 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - RESOLUTION CALLING FOR A PUBLIC HEARING ON A PROPOSAL FOR A HOUSING FINANCE PROGRAM AND GIVING PRELIMINARY APPROVAL TO THE ISSUANCE OF HOUSING FACILITY REVENUE BONDS TO FINANCE A MULTIFAMILY HOUSING PROJECT PURSUANT TO MINNESOTA LAW, AND AUTHORIZING THE PUBLICATION OF A NOTICE OF THE HEARING (a) WHEREAS, Minnesota Statutes, Chapter 462C (the "Act"), confers upon a city the power to issue revenue obligations to finance multifamily housing developments within the boundaries of the city; and (b) WHEREAS, the City Council of the City of Falcon Heights, Minnesota (the "City") has received a proposal from Buhl GTA, LP, a Minnesota limited partnership (the "Borrower"), with Buhl GTA GP, LLC, a Minnesota limited liability company, as general partner, that the City assist in financing a Project hereinafter described, through the issuance of revenue bonds or obligations (in one or more series) (the "Bonds") to be issued in 2019 or a subsequent year pursuant to the Act; and (c) WHEREAS, the City desires to facilitate the maintenance and development of multifamily rental housing within the community; encourage the development of affordable housing opportunities for residents of the City; encourage the development and maintenance of housing facilities designed for occupancy by persons or families of low and moderate incomes; and encourage the development of blighted or underutilized land and structures within the boundaries of the City; and the Project will assist the City in achieving these objectives; and (d) WHEREAS, the Project to be financed by the Bonds consists of acquisition and renovation of an existing historic office building into an approximately 106-unit multifamily housing facility for low- and moderate-income individuals and families to be located at 1667 Snelling Avenue, which is on the southwest corner of Snelling Avenue and Larpenteur Avenue, in the City (the "Project"). The Borrower will be the owner and operator of the Project; and (e) WHEREAS, no public official of the City has either a direct or indirect financial interest in the Project nor will any public official either directly or indirectly benefit financially from the Project; and (f) WHEREAS, before proceeding with final consideration of the request of the Borrower it is necessary for the City to hold a public hearing on the housing finance program and proposal pursuant to the Act: 34 of 56 11721771v2 3 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Falcon Heights, Minnesota, as follows: 1. A public hearing on the housing finance program and proposal of the Borrower will be held at the time and place as determined by the City Administrator and as set forth in a Notice of Public Hearing substantially in the form attached hereto as Exhibit A. 2. The general nature of the proposal and an estimate of the principal amount of Bonds to be issued to finance the proposal are described in the attached form of Notice of Public Hearing. 3. A draft copy of the housing finance program with proposed forms of all attachments and exhibits shall be on file in the office of the City Administrator on the date the Notice of Public Hearing is published. 4. The City Administrator is hereby authorized and directed to cause notice of the hearing to be given one publication in the official newspaper of the City and a newspaper of general circulation available in the City, not less than 15 days nor more than 30 days prior to the date fixed for the hearing, substantially in the form of the attached Notice of Public Hearing with such changes as required or approved by Briggs and Morgan, Professional Association, acting as bond counsel. 5. The City hereby gives preliminary approval to the proposal of the Borrower that the Borrower undertake the Project, and the City undertake the program of financing therefor, pursuant to the Act, consisting of financing the acquisition and renovation of the Project pursuant to the Borrower's specifications and to a loan agreement between the City and the Borrower on such terms and conditions with provisions for revision from time to time as necessary, so as to produce income and revenues sufficient to pay, when due, the principal and interest on the Bonds to be issued in a total principal amount not to exceed $40,000,000 pursuant to the Act to finance the Project; and said agreement may also provide for the entire interest of the Borrower therein to be mortgaged to the purchasers of the Bonds, or a trustee for the purchasers and subsequent holder(s) of the Bonds; and the City, acting by and through the City, hereby undertakes preliminarily to issue the Bonds in accordance with such terms and conditions. 6. At the option of the City, the financing may be structured so as to take advantage of whatever means are available and are permitted by law to enhance the security for, or marketability of, the Bonds; provided that any such financing structure must be consented to by the Borrower. 7. On the basis of information available to the City it appears, and the City hereby finds, that the Project constitutes a multifamily housing development within the meaning of subdivision 5 of Section 462C.02 of the Act; that the availability of the financing under the Act and the willingness of the City to furnish such financing will be a substantial inducement to the Borrower to undertake the Project, and that the effect of the Project, if undertaken, will be to encourage the development of new multifamily rental housing opportunities for residents of the City, and to promote more intensive development and use of land within the City. 8. The Project and the program to finance the Project by the issuance of revenue obligations, are hereby given preliminary approval by the City subject to holding a public hearing 35 of 56 11721771v2 4 thereon and final approval by the City, the Borrower, and the purchasers of the Bonds as to ultimate details of the financing of the Project. 9. Briggs and Morgan, Professional Association, acting as bond counsel, is hereby directed to prepare a housing program for financing the Project in accordance with the provisions of Minnesota Statutes, Section 462C.03. 10. The Borrower has agreed and it is hereby determined that any and all costs incurred by the City in connection with the financing of the Project whether or not the Project is carried to completion will be paid by the Borrower. 11. Briggs and Morgan, Professional Association, acting as bond counsel, is authorized to assist in the preparation and review of necessary documents relating to the Project, to consult with Borrower and the purchasers of the Bonds as to the maturities, interest rates and other terms and provisions of the Bonds and as to the covenants and other provisions of the necessary documents and submit such documents to the City for final approval. 12. Nothing in this Resolution or the documents prepared pursuant hereto shall authorize the expenditure of any municipal funds on the Project other than the revenues derived from the Project or otherwise granted to the City for this purpose. The Bonds shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property or funds of the City except the revenue and proceeds pledged to the payment thereof, nor shall the City be subject to any liability thereon. The holders of the Bonds shall never have the right to compel any exercise of the taxing power of the City to pay the outstanding principal on the Bonds or the interest thereon, or to enforce payment thereon against any property of the City, except such property as may be expressly pledged for the security of the Bonds. The Bonds shall recite in substance that the Bonds, including the interest thereon, are payable solely from the revenue and proceeds pledged to the payment thereof. The Bonds shall not constitute a debt of the City within the meaning of any constitutional or statutory limitation. 13. Subject to final approval of the Project by the City and in anticipation of the approval by all necessary entities of the housing program and the issuance of the Bonds to finance all or a portion of the Project, and in order that completion of the Project will not be unduly delayed when approved, the Borrower is hereby authorized to make such expenditures and advances toward payment of that portion of the costs of the Project to be financed from the proceeds of the Bonds, as the Borrower considers necessary, including the use of interim, short term financing, subject to reimbursement from the proceeds of the Bonds, if any, when delivered but otherwise without liability on the part of the City. 36 of 56 11721771v2 5 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Moved by: Approved by: ________________________ Randall Gustafson Mayor Vacant GUSTAFSON ____ In Favor HARRIS Attested by: ________________________ LEEHY ____ Against Sack Thongvanh MIAZGA City Administrator 37 of 56 11721771v2 A-1 EXHIBIT A NOTICE OF PUBLIC HEARING ON A PROPOSAL FOR A HOUSING FINANCE PROGRAM AND THE ISSUANCE OF MULTIFAMILY HOUSING REVENUE BONDS TO FINANCE A MULTIFAMILY HOUSING DEVELOPMENT Notice is hereby given that the City Council of the City of Falcon Heights, Minnesota (the "City"), will meet in the City Council Chambers of City Hall, 2077 Larpenteur Avenue W, in the City of Falcon Heights, at 7:00 p.m. on Wednesday, ____________ __, 2019, to consider a housing finance program of the City and the proposal of Buhl GTA, LP, a Minnesota limited partnership (the "Borrower"), with Buhl GTA GP, LLC, a Minnesota limited liability company, as general partner, that the project described below be assisted by the issuance of housing revenue bonds under Minnesota Statutes, Chapter 462C (the “Bonds”). The "Project" consists of the acquisition and renovation of an existing historic office building into an approximately 106-unit multifamily housing development to be known as Amber Union Apartments located at 1667 Snelling Avenue, which is on the southwest corner of Snelling Avenue and Larpenteur Avenue, in the City. The Project will be owned and operated by the Borrower. The Project consists of approximately the following units: Units Square Footage Estimated Initial Rents 8 – Studio 423 $1,021 14 – 1–bedroom 736 $1,094 56 – 2-bedroom 1,059 $1,311 24 – 3-bedroom 1,344 $1,515 4 – 4–bedroom 1,656 $1,690 The maximum aggregate estimated principal amount of the Bonds or other obligations to be issued in one or more series to finance the Project pursuant to the housing finance program will not exceed $40,000,000. Subsequent to approval of a housing finance program, the City may issue revenue obligations to finance the housing finance program. The Bonds or other obligations, as and when issued, will not constitute a charge, lien, or encumbrance upon any property of the City except the Project and the revenues to be derived from the Project. Such Bonds or obligations will not be a charge against the City's general credit or taxing powers but are payable from sums to be paid by the Borrower pursuant to a revenue agreement. A draft copy of the housing finance program is available for inspection at City Hall during normal business hours. At the time and place fixed for the public hearing, the City Council of the City will give all persons who appear at the hearing an opportunity to express their views with respect to the housing finance program and proposal. Written comments will be considered if submitted at the above City office on or before the date of the hearing. 38 of 56 11721771v2 A-2 BY ORDER OF THE CITY COUNCIL OF THE CITY OF FALCON HEIGHTS, MINNESOTA By Sack Thongvanh Its Administrator 39 of 56 11721771v2 STATE OF MINNESOTA COUNTY OF RAMSEY CITY OF FALCON HEIGHTS I, the undersigned, being the duly qualified and acting Administrator of the City of Falcon Heights, Minnesota, DO HEREBY CERTIFY that I have compared the attached and foregoing extract of minutes with the original thereof on file in my office, and that the same is a full, true and complete transcript of the minutes of a meeting of the City Council of said City duly called and held on the date therein indicated, insofar as such minutes relate to calling for a public hearing on and giving preliminary approval to housing facility revenue bonds to finance a housing finance program. WITNESS my hand this ___ day of ____________, 2019. _______________________________________ City Administrator 17291314v1 40 of 56 REQUEST FOR COUNCIL ACTION Families, Fields and Fair __________________________ The City That Soars! Item Community Park State Bonding Application Description The Community Park Building is in need of costly repairs if the City continues to utilize the facility for rentals, events, and park programming. The City Council and City Staff have been trying to find creative ways to develop options to repair or replace the aging building. Community Park parks play a vital role in building healthy communities and in attracting much-needed younger workers and families and retaining retirees. Budget Impact N/A Attachment(s) • Draft Application • Resolution 19-18 Support of State Bonding Money for Falcon Heights Community Park • Pictures of Community Park Building Action(s) Requested Staff recommends approval of attached resolution and authorize the submittal of the State Bonding Application for Falcon Heights Community Park. Meeting Date May 22, 2019 Agenda Item Policy G2 Attachment Supporting Documents Submitted By Sack Thongvanh, City Administrator 41 of 56 BLANK PAGE  42 of 56 1 City of Falcon Heights, Minnesota Bonding Request for Community Park 1) Requested amount of funding: $1,000,000 2) Summary of request: Falcon Heights Community Park is located in the upper northwest corner of Falcon Heights near the intersection of Roselawn Avenue and Cleveland Avenue. This is the largest park in the city and used as a central playground for numerous children in the Falcon Heights, Roseville, and Saint Paul communities. It is also the central gathering place for numerous community events in and around Falcon Heights and summer Recreation on The Go events serving Roseville and Falcon Heights. The park is also rented for parties, reunions, picnics, and events. As the central park in the Falcon Heights area which includes the University of Minnesota the park serves a broader purpose than neighborhood parks by focusing on meeting community-based recreational needs as well as preserving unique landscapes and open spaces. The park provides an appropriate blend of active and passive amenities to service a broad spectrum of interests and age groups. The park is also the main gathering place for the city of Falcon Heights. After hearing numerous concerns from residents regarding various issues with the city’s parks in general and with Community Park in particular the city of Falcon Heights in 2013 undertook the bold step of commissioning a study facilitated by WSB and Associates Inc. WSB produced a report entitled Falcon Heights Park Improvement Study on May 21, 2014. WSB recommended potential improvement costs for improvements as listed ranging from $600,000 to $800,000 depending on the building costs and the extent of changes to the site layout. Almost six years have gone by since that report and no substantive or significant improvements have been made to the issues in Community Park identified in the report. The specific issues have only worsened including widening gaps in the concrete making it difficult for users, particularly seniors and individuals with disabilities, to safely navigate the pavement in and around the park building where a variety of community events serving Falcon Heights and neighboring cities and the University of Minnesota are held. The City of Falcon Heights seeks to address specific issues identified the report and is asking for $1,000,000 to cover these costs based on the worsening conditions identified in the 2014 report, inflation, and a more detailed assessment of what is needed for renovation and repair. 3) Detailed description of the project: The City of Falcon Heights is seeking bonding money for renovation and repair of Community Park as follows: 43 of 56 2 • Full replacement of the park building and pavement. • Full replacement of the basketball court. • Full replacement of tennis court • Repair or replace pavement utilizing concrete curb and gutter. • Create a rain garden as part of a display/educational piece. • Installing fence sections and piers and colorful plantings between the street and parking lot for an enhanced park entrance. • Create entrance orientation gathering spaces from the parking lot. • Asphalt and concrete walks/trails should be repaired as necessary to ensure proper accessibility. • Replace fitness equipment • Enhance landscape to keep natural appearance and allow for varying age stands of plant materials. Focus on native trees, shrubs, and perennials that will offer habitat and food for wildlife, birds, and insects. 4) Rationale for why the project is needed: According to the National Recreation and Parks Association, parks and recreation have three values that make them essential services to communities: 1. Economic value 2. Health and Environmental benefits 3. Social importance Among the values making them essential services are the following: • Parks improve the local tax base and increase property values. Private property values increase the value of privately owned land the closer such land is to parks. This increase in private property value due to the proximity to parks increases property tax revenues and improves local economics. • Parks and recreation programs and services contribute to the health of children, youth, adults, and seniors. • Parks provide gathering places for families and social groups, as well as for individuals of all ages and economic status, regardless of their ability to pay for access. • Access to parks and recreation opportunities has been strongly linked to reductions in crime and to reduced juvenile delinquency. • Parks have a value to communities that transcend the amount of dollars invested or the revenues gained from fees. Parks provide a sense of public pride and cohesion to every community. Falcon Heights already has fewer parks per acre than most communities in Minnesota. According to the Trust for Public Land, 2017 City Parks Facts: 44 of 56 3 The Median amount of park land as a percentage of adjusted city area is between 8.1 to 12.1%. According to the City of Falcon Heights, 2040 Comprehensive Plan only 2% of City area is consider park land, with a percentage drop to 1.3% by 2040. Community Park makes up over 55% of all Falcon Heights’s park land. Community Park is the central gathering point for most community functions and a social gathering point for many in the community and its’ adjacent communities. The parks need for repairs and replacement is nearing a point where portions of the park such as the park building and pavement may need to be shut down in the near future shuttering an integral gathering point for a great deal of community cohesion. The Park is also our ground zero In the wake of the Philando Castile shooting in Falcon Heights, the community, city staff, and city leadership are already doing everything they can to promote community cohesion and cultivate a caring community. Further deterioration of the park and the possible closing of the park building and other amenities only makes the cultivating of a caring community and enhancing community cohesion more difficult. The city has faced additional financial challenges in moving its’ police force to a new force in the last two years increasing that portion of the budget by almost $400,000 for a small, aging community. The increased tax levy needed this past year to cover police costs and other costs was over 24%. During the first year of the new police contract, the City was facing a 34% tax levy increase, the City Council reluctantly used reserves to bring down the levy to a level that was acceptable. This is not a sustainable tool to use for future needs. The city’s aging community does not appear to support an added burden of additional taxes to cover the needs to the park on top of the 24% increase in the levy for FY2019 along with the added costs to cover the Roseville Area School Districts 2017 building bond referendum which adds approximately $39 per month in property tax increases to a $250,000 residence in Roseville and Falcon Heights according to the Roseville Area Schools November 2017 Bond Referendum Information (https://www.isd623.org/our- district/welcome/building-bond-2017/cost). Furthermore, the park is needed to support active lifestyles and to support the concept of aging in place by giving seniors a safe area to walk and participate in physical activities. In short, the community has seen increases in assessments, taxes, and fees of over $60 a month in the past two years while watching its’ central community park deteriorate rapidly after already having been documented as being in serious need of repair viz’ a 2014 consultant assessment. Since that assessment the community has endured a fatal shooting and worked hard to build community in the aftermath of the shooting. Our work resulted in the League of Minnesota Cities 2018 City of Excellence Award for cities with a population of 5,000-19,999. We have been a fortunate city in having so many residents, staff, and leadership come forward to pour a great deal of time into improving the community. However, in order for this progress to continue, for our residents and neighbors to have a central gathering point, for our seniors to have an anchor for activity to help age in place, for our children to continue to have strong park programming, and finally for our residents to obtain some needed financial relief while living in a high quality city we think this project deserves a very high priority ranking of projects to be funded in the current session. 45 of 56 4 5) Timeline for project: 2018: Preliminary planning, public engagement viz’ city survey (Completed) 2018-2019: Predesign, Plan, Specifications, Bidding February-July 2020: Engineering and design construction document development July 2020-September 2020: Permitting May 2021-October 2021: Construction 6) Other relevant background information: This application has the support of the University of Minnesota as our partner through a lease and use agreement and as the lessor of the property to the city and a letter of support indicating that the existing lease will be extended for a minimum of ten additional years to serve the needs of Falcon Heights, the University of Minnesota, and adjacent communities. 7) All funding sources (past and requested) The city has received a great deal of feedback over the past few years regarding Community Park through Park Commission initiatives, the 2018 city survey, and resident feedback to city leadership and staff. The overwhelming amount of feedback related to funding sources has been that the city cannot afford to cover these costs do to its’ unique situation as a small city with the need to partner with other communities for services and need to focus much of city time, leadership, and resources on recovering from a tragic shooting within the city limits in 2016. 8) Detailed listing of costs: Full removal and replacement of main park building and pavement: Tennis Court Full removal and replacement of basketball court: Replacement of pavement utilizing concrete curb and gutter: Create a rain garden as part of a display/educational piece: Install fence sections and piers and paintings between the street and parking lot for an enhanced park entrance: Create entrance orientation gathering spaces from the parking lot: Replace backstop in ballfield: Repair asphalt and concrete walks/trails to ensure proper accessibility: Replace fitness equipment: Enhance landscape to keep natural appearance and allow for varying age stands of plant materials. Focus on native trees, shrubs, and perennials that will offer habitat and food for wildlife, birds, and insects. 46 of 56 5 9) Answers to applicable statutory requirements: Is this project exempt from legislative review under M.S. 16B.335 subd. 1a? No Predesign Review (M.S. 16B.335 subd. 3): Does this request include funding for predesign? Yes Has the predesign been submitted to the Department of Administration? No Has the predesign been approved by the Department of Administration? No Will the project design meet the Sustainable Building Guidelines under M.S. 16B.325? Yes Will the project designs meet applicable requirements and guidelines for energy conservation and alternative energy sources (M.S. 16B.335 subd. 4 and 16B.32)? Yes The following requirements will apply to projects after adoption of the bonding bill. Will the project meet public ownership requirements (M.S. 16A.695)? Yes Will a use agreement be required (M.S. 16A.695 subd. 2)? Yes Will program funding be reviewed and ensured (M.S. 16A.695 subd. 5)? Yes Will the matching funds requirements be met (16A.86 subd. 4)? N/A Will the project be fully encumbered prior to the Cancellation Deadline (M.S. 16A.642): December 31, 2024? Yes M.S. 16A.502 and M.S. 16B.31(2): Full Funding Required: Yes M.S. 174.93: Guideway Project: No Is this a Guideway Project? No Is the required information included in this request? N/A Has the governing body of the political subdivision passed a resolution of support, which indicates this project’s priority number if the applicant is submitting multiple requests? Yes • City of Falcon Heights State Tax ID#: 8030098 • City of Falcon Heights Federal Tax ID#: 4-6007644 10) Resolution of support from the governing body: 11) Other Considerations: Who will own the park? The University of Minnesota will continue to own the facility. The university currently owns the land and park through a lease with the City of Falcon Heights who operates the facility to meet city and university demands. 47 of 56 6 Who will operate the park? The City of Falcon Heights will continue to operate the facility. The city currently operates the land and park through a lease with the University of Minnesota which has been in place and continued for nearly fifty years. Who will use or occupy the park? Falcon Heights, Saint Paul, Roseville, and Minneapolis residents as well as University of Minnesota staff and faculty, visitors to the area, and visitors driving through the area. Project Contact Person: Sack Thongvanh City Administrator 651-796-7611 Sack.thongvanh@falconheights.org 48 of 56 49 of 56 50 of 56 51 of 56 52 of 56 53 of 56 BLANK PAGE  54 of 56 CITY OF FALCON HEIGHTS COUNCIL RESOLUTION May 22, 2019 No. 19-19 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - -- A RESOLUTION IN SUPPORT OF STATE BONDING MONEY FOR FALCON HEIGHTS COMMUNITY PARK WHEREAS, parks are an essential part of our city; and WHEREAS, parks play a vital role in building healthy communities and in attracting much-needed younger workers and families and retaining retirees; and WHEREAS, parks and recreation programs and services contribute to the health of children, youth, adults, and seniors; and WHEREAS, according to a George Mason University study, local and regional parks in Minnesota generated an estimated $2.8 billion in direct, indirect and induced economic activity in Minnesota; and WHEREAS, Falcon Heights Community Park is the largest park in the city, accountable for over 55% of the city’s park space, and is considered a central gathering place for numerous community events in and around Falcon Heights; and WHEREAS, a 2014 report entitled Falcon Heights Park Improvement Study found, among other needs, the need to replace the park building, pavement, and basketball court in Community Park along with upgrading park amenities to make them accessible based on ADA guidelines; and WHEREAS, the 2014 report recommended potential improvement costs of up to $800,000; and WHEREAS, the condition of Community Park has steadily deteriorated since the 2014 report; and WHEREAS, the Trust for Public Land 2017 City Park Facts document states that the median percentage of parkland as a percentage of adjusted city area regardless of density classification was between 8.1% and 14.1% and Falcon Heights’ parkland percentage of adjusted city area is currently only 2.0% and slated to drop to 1.3% according to the 2040 Falcon Heights Comprehensive Plan; and WHEREAS, Falcon Heights residents faced an increased tax levy in the past two years of over 20% each year along with property tax increases for the Roseville Area Schools November 2017 Bond Referendum of approximately $39 per month; and WHEREAS, Community Park is the central gathering point for most community functions and a social gathering point for many in the community and its’ adjacent communities; and 55 of 56 WHEREAS, the Falcon Heights community, staff, and leadership are making strides to promote community cohesion and cultivating a caring community in the wake of the 2016 Philando Castile shooting; and WHEREAS, further deterioration of the park and the possible closing of the park building and other amenities makes cultivating of a caring community and enhancing community cohesion efforts more difficult; and WHEREAS, the project cannot be possible without the assistance of state bonding given the costs of the overall project, the size of our community, recent increases in taxes and levies, and our limited financing options. The City of Falcon Heights is committed to moving forward. NOW THEREFORE BE IT RESOLVED that the City of Falcon Heights hereby requests state bonding in the amount of $1,000,000 for changes to Falcon Heights Community Park that include but are not limited to the following: full replacement of the park building, pavement, basketball court, tennis court, and walks and trails and upgrading the park amenities currently not considered accessible according to ADA guidelines. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - Moved by: Approved by: ________________________ Randall Gustafson Mayor Vacant ____ In Favor Attested by: ________________________ GUSTAFSON Sack Thongvanh HARRIS ____ Against City Administrator LEEHY MIAZGA I hereby certify that the foregoing is a true and correct copy of a resolution adopted by the Falcon Heights City council at a duly authorized meeting held on May 22, 2019. _________________________________ Sack Thongvanh City Administrator 56 of 56