HomeMy WebLinkAbout11-08-1989 Council AgendaAGENDA
CITY OF LITTLE CANADA
REGULAR COUNCIL MEETING
NOVEMBER 8, 1989
A. 1. CALL TO ORDER - 7:30 P.M.
2. Roll Call
Mayor Mr. Michael Fahey
Councilwoman Mrs. Beverly Scalze
Councilman Mr. Bill Blesener
Councilman Mr. Rick Collova
Councilman Mr. Jim LaValle
Attorney Mr. Thomas Sweeney
Engineer Mr. Don Carley
Recording Secretary Mrs. Kathy Glanzer
3. Approval of the Minutes - October 25, 1989 Regular Council Meeting
4. Announcements
B. PUBLIC HEARINGS -
5. Creation of Economic Development Authority
Appearing Mary Ippel, Briggs and Morgan
Correspondence Pages 1 through 27
Comments:
Motions:
This agenda is subject to change by additions and deletions.
Page 1
AGENDA
CITY COUNCIL
NOVEMBER 8, 1989
C. PRESENTATIONS:
5. 1990 Budget - Certification of Proposed Levy to the County
Scheduling of Budget Hearing
City Auditor appearing. Information will be forwarded to the
Council from the Auditor's office.
6. Bill Stenger, Jr. - Concerns regarding future sign for Slumberland,
loss of property stakes, and rezoning of his
property to I -P District.
0. CONSULTANT REPORTS
7. CITY ENGINEER
A. Improvement No. 88-7, Payne Avenue, Bid Tabulation
Correspondence Page 28
8. CITY ATTORNEY
E. COUNCIL REPORTS
9. Economic Development - Mr. Fahey
10. Public Safety - Mr. Fahey
A. Participation in Cities Against Drugs Week
Correspondence Page 29
11. Utilities - Mr. Blesener
12. Parks & Recreation - Mrs. Scalze
13. Administration - Mr. LaValle
A. Gambling License Renewal - No. Ramsey Lions Club
Correspondence Pages 30 and 31
B. Hiring City Administrator
C. Citizens Advisory Committee to study City Hall Addition
List of applicants pending.
14. Adjourn
CORRESPONDENCE TO THE AGENDA
CITY OF LITTLE CANADA
NOVEMBER 8, 1989
PAGES CORRESPONDENCE
1 -27 Economic Development Authority
28 Payne Avenue Bid Tabulation
29 Cities Against Drugs Week
30 -31 Gambling License Renewal - North Ramsey Lions Club
NOTICE OF PUBLIC HEARING ON A PROPOSED ENABLING RESOLUTION
TO CREATE AN ECONOMIC DEVELOPMENT AUTHORITY
NOTICE IS HEREBY GIVEN that the governing body of
the City of Little Canada, Minnesota (the "City ") will meet on
Wednesday, November 8, 1989 at 7:30 P.M. at the City Hall in
the City of Little Canada, Minnesota, for the purpose of
conducting a public hearing on a proposed enabling resolution
authorizing the creation of an economic development authority.
In 1986, the Minnesota Legislature enacted legislation
authorizing cities to establish economic development
authorities for the purpose of promoting and assisting
economic development and redevelopment, and, in 1988, the
Minnesota Legislature enacted legislation authorizing the City
of Little Canada to establish an economic development
authority.
To create an economic development authority, the
City must adopt an enabling resolution which must set forth,
at minimum, the number of commissioners constituting the
economic development authority.
The draft enabling resolution establishing an
economic development authority for the City (the "Authority ")
will provide for the five members of the City Council to be
the Commissioners of the Authority and for the Authority to
have the ability to exercise all powers available to an
Authority, unless otherwise specifically restricted by the
City in an amendment to the enabling resolution. A draft copy
of the enabling resolution is available for public inspection
at the City Hall. All persons interested may appear and be
heard at the time and place set forth above.
September 27, 1989
BY ORDER OF THE CITY COUNCIL
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Deputy Clerk
Page 1
ENABLING
RESOLUTION
ENABLING RESOLUTION ESTABLISHING AN ECONOMIC DEVELOPMENT
AUTHORITY
WHEREAS, Laws of Minnesota, 1988, Chapter 678
authorizes the City of Little Canada to establish an economic
development authority (the "Authority ") with specified powers
and obligations to promote and to provide incentives for
economic development;
WHEREAS, the City Council of the City of Little
Canada, Minnesota (the "City ") has determined that it is in
its best interest to establish the Authority in order to
preserve and create jobs, enhance its tax base, and to promote
the general welfare of the people of the City; and
WHEREAS, the City has provided public notice and
conducted a public hearing on the proposed adoption of this
enabling resolution on November 8, 1989, and has fulfilled all
other legal requirements for the establishment of the
Authority.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL
OF THE CITY OF LITTLE CANADA:
1. An economic development authority to, be known as
the "Economic Development Authority of the City of Little
Canada" with all of the powers, rights, duties, and
obligations as set forth in Minnesota Statutes, Sections
469.090 to 469.108 and any other law is hereby established in
and for the City.
2. The Authority shall be governed by a board of
five (5) commissioners who shall be the members of the City
Council. The Commissioners shall be elected and qualified in
the same manner as the City Council.
3. Nothing shall prevent the City from modifying
this enabling resolution to impose limits on the powers of the
Authority or for providing for other matters as authorized by
Minnesota Statutes, Sections 469.090 to 469.108 or any other
law.
Adopted by the City Council this day of
1989.
ATTEST:
City Clerk- Treasurer
Mayor
Page 2
BRIGGS AND MORGAN
ECONOMIC DEVELOPMENT AUTHORITIES
Responding to the requests of many Minnesota cities for
broader powers in the area of economic development, in 1986
the Minnesota Legislature passed a law authorizing home rule
charter or statutory cities to establish economic development
authorities. In 1987, the Legislature recodified the statutes
pertaining to economic development into one large chapter,
Chapter 469. Economic Development Authorities may draw on the
purposes and powers contained in several different sections of
Chapter 469. Sections 469.091 to 469.108 constitute the
principal body of legislation pertinent to EDAs.
This memo . addresses many of the questions cities have
raised concerning the formation, uses, and powers of economic
development authorities (referred to herein as an "EDA" or an
"Authority "). The statutes concerning EDAs are complicated
and somewhat ambiguous, and the various "cross- fertilization"
provisions used in the EDA sections of Chapter 469, allowing
the EDA to exercise powers granted to other entities for a
wide variety of purposes, lead to further confusion and
uncertainty. Nevertheless, we believe the underlying purpose
of the law - the promotion of economic development - is clear
and that reasoned conclusions can be drown about the scope and
intent of the law. The following is an effort to outline the
steps that must be taken to form and operate an EDA, the
powers that an EDA may exercise once formed, and the
constitutional concerns that may arise in connection with the
use of EDA powers.
A. FORMATION AND OPERATION OF AN EDA
1. Reasons for Forming an EDA. Forming an economic
development authority (the "Authority" or "EDA ") will provide
a great deal of flexibility to a City to pursue economic
development. Economic development authorities may exercise
their own powers, the powers of housing and redevelopment
authorities, the powers of cities in connection with city
development districts and the powers of municipalities or
redevelopment agencies in connection with municipal industrial
development. The purpose for which these powers may be
exercised is expanded to embrace economic development
throughout a City and not just in areas which may be deemed to
be blighted. The concentration of various economic
development powers and purposes in one Authority therefore
provides a valuable tool to a City for the promotion and
financing of economic development.
Page 3
Procedure for Establishing an EDA.
The City Council creates an Economic Development
Authority by passing a written resolution called an enabling
resolution. Before adopting an enabling resolution, the City
Council must conduct a public hearing. Notice of the time and
place of hearing, a statement of the purpose of the hearing
and a summary of the resolution must be published in a
newspaper of general circulation within the city once a week
for two consecutive weeks, with the first publication appear-
ing less than thirty days from the date of the public hearing.
Minn. Stat. 5469.093.
Each year, prior to the anniversary of the passing of the
enabling resolution, the EDA must submit a report to the City
Council stating whether and in what respects the enabling
resolution should be modified. Within thirty days of receipt
of the report, the City Council must consider the
recommendations and make any modifications it deems
appropriate. Minn. Stat. S469.092, Subd.3. Modifications to
the enabling resolution must be by written resolution and may
be adopted only after notice and public hearing as required
for the adoption of the original enabling resolution. Minn.
Stat. 9469.093, Subd 2.
Once established, an EDA is a public body corporate and
politic and a political subdivision of the State. It may sue
or be sued in its own right. Section 469.091, Subd. 2
characterizes an EDA as a body which "carries out an essential
governmental function when it exercises its power...."
Nevertheless, sovereign immunity does not apply -- an EDA is
not immune from liability because of its function.
2. Limiting the Powers of the Authority.
(a) The City, through the enabling resolution, may
impose the following limits upon the actions of the Authority:
1. The enabling resolution may provide that the EDA may
not exercise any specified power contained in the
EDA law or that the EDA may not exercise a specified
power without the prior approval of the City
Council;
2. The City Council may require that any unpledged
reserves generated by activities of the EDA and not
needed for its successful operation be transferred
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to the Debt Service Fund of the City and be used to
reduce tax levies for bonded indebLedness;
3. The City Council may require that the EDA obtain
City approval before selling any bonds or
obligations issued by the EDA (and prior approval is
required in any case for general obligation bonds);
4. The City may impose other limitations on an EDA's
budget process, administration and management, and
other activities, and may require an EDA to comply
with the City's comprehensive plan, and may impose
any other limitation the City Council deems
appropriate.
Minn. Stat. 1469.092
(b) There are, in addition to the above limitations,
other means by which a City Council may limit the powers of
the Authority:
A. City Council as Commissioners of Authority. The
authorizing legislation states that at least one (and in
some cases, two) city council members must be included
among the EDA commissioners. A City Council can provide
in the enabling resolution, however, that the members of
the City Council shall serve as all the commissioners of
the Authority. This approach would ensure absolute City
Council control over EDA activities. If a City elected
to take this route, it could establish a separate
advisory committee to assist it with economic development
matters. As an alternative, a City Council could provide
(as is provided in the proposed enabling resolution) that
some but not all (in this case two) commissioners be city
council members.
B. Limitations on EDA Powers. If a City Council
chooses not to act as the governing body of the
Authority, it may, in the enabling resolution, place
specific restrictions on the exercise of powers by the
EDA. These restrictions could take several forms.
(i) Restrictions on Exercise of Powers. The
enabling resolution may provide that the Authority
may not exercise certain specified powers without
the prior approval of the City Council. Such a
restriction might be placed on the power to issue
general obligation or revenue bonds on the power to
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grant or loan EDA funds, on the power to enter into
limited partnerships, or any other specific power
over which the City Council wishes to exercise
control.
(ii) Budgetary Control. The EDA law already
requires that the EDA annually submit to the City
its budget. Apart from the obvious control the City
Council has in appropriating city money to help fund
the budget, the enabling resolution may require City
Council approval of the Authority budget, and
compliance with the budget as approved (as provided
in the proposed enabling resolution).
(iii) Other Monetary Restrictions. A City may
place monetary limits on exercise of EDA powers.
Monetary limitations could be imposed on a
per - project basis, or may be placed on aggregate
spending on projects by the EDA. Project based
limitations would require approval by the City
Council of expenditures on any proposed project over
a certain monetary amount. An aggregate restriction
would provide for City Council approval once the
Authority had expended its aggregate approved amount
in a fiscal year.
(iv) Other Controls. In addition to the
foregoing controls, an enabling resolution may also
provide for City Council control of EDA activity by
the following means:
(a) All official actions of the Authority
must be consistent with the adopted Comprehen-
sive Plan of the City and any official controls
(e.g., zoning ordinances) implementing the
Comprehensive Plan.
(b) The Authority shall submit all
planned activities for influencing the action
of other governmental agencies, subdivisions,
or bodies to the City Council for approval.
(c) The Authority shall submit its
administrative structure and management
practices to the City Council for approval.
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3. Commissioners.
The Economic Development Authority governing body may
consist of 3, 5 or 7 commissioners. The enabling resolution
must state the number of commissioners. The mayor appoints
the commissioners with the approval of the City Council. A 3
member authority must include at least one member of the City
Council, and a five or seven member authority must include at
least two members of the City Council. Members of the City
Council in numbers greater than those mentioned above may
serve as the commissioners of the EDA. The enabling
resolution may provide that the members of the City Council
shall serve as the commissioners. Further, an EDA may be
increased from three to five or seven or from five to seven
members by resolution of the City Council following the same
notice and hearing procedures required for adoption of the
enabling resolution.
Original appointees to the EDA serve for terms varying
from one to five years, and subsequent commissioners serve six
year terms. Commisioners may be paid for attending meetings
of the EDA in an amount determined by the City Council.
Commissioners may be removed for cause following written
notice and hearing on the matter. Minn. Stat. S 469.095.
4. Officers.
The EDA may adopt bylaws and rules of procedure and must
adopt an official seal. The EDA must elect a President, a
Vice President, a Treasurer, a Secretary, and an Assistant
Treasurer. The Authority must elect the President, Treasurer,
and Secretary annually. Although a commissioner can not serve
as President and Vice President at the same time, the other
offices may be held by the same commissioner. Further, the
offices of Secretary and Assistant Treasurer need not be held
by a commissioner. Minn. Stat. % 469.096.
5. Employees.
The Authority may employ an Executive Director, a Chief
Engineer, other technical experts and agents, and other
employees as it requires, and it may determine their duties,
qualifications, and compensation. Further, the Authority may
contract for the services of consultants, agents, public
accountants, and other persons needed to perform its duties
and exercise its powers. The Authority may use the services
of the City Attorney or hire a general counsel for its legal
needs. Minn. Stat. §469.097.
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6. City Facilities, Services.
The City may furnish offices, structures, space,
clerical, engineering, or other assistance to the Authority.
The Authority may use the City's purchasing department in
connection with construction work and to purchase equipment,
supplies or materials. Minn. Stat. 1 469.097.
7. Existing Development Agencies and Projects.
The City may divide any economic, housing or redevelop-
ment powers granted under the HRA and EDA sections of Chapter
469 between the Authority and any other authority or
commission established under statutes or City Charter for
economic development, housing, or redevelopment. Minn. Stat.
1469.094. The City may also, by resolution, transfer the
control, authority and operation of any project as defined in
the Municipal Industrial Development sections of Chapter 469
or program authorized by the HRA or Municipal Development
District sections of Chapter 469 from the agency that
established the project to the Authority.
8. Budgets and Reports.
The Authority must submit an annual budget to the City
including a detailed written estimate of the amount of money
the Authority expects to need from the City during the next
fiscal year. The Authority must also submit to the City a
detailed account of its activities, and its receipts and
expenditures during the preceding calendar year. The
Authority's financial statements must be audited annually, and
the audits must be filed with the State Auditor. Minn. Stat.
9 469.100.
9. Conflict of Interest.
An independent anti - conflict -of- interest provision
applies to EDAs. It prohibits any commissioner, employee or
agent of an EDA from having any direct or indirect financial
interest in any project (or property included in a project) or
in any contract for materials or supplier in connection with a
project.
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B. POWERS OF AN EDA
The Authority is granted several different types of
powers in the EDA statutes. First, it is granted powers that
it may exercise only within or in conjunction with an economic
development district. Second, the EDA sections of Ch. 469
grant directly powers that the Authority may exercise outside
an economic development district. Finally, the statutes grant
the Authority by cross - reference the powers that may be
exercised by housing and redevelopment authorities ( "HRAs "),
cities in connection with Development Districts, or
municipalities or redevelopment agencies in connection with
Municipal Industrial Development. The broadest of these
powers are those contained in the HRA and the Industrial
Development sections of Chapter 469, making the "cross -
fertilization" in Chapter 469 invaluable to Economic
Development Authorities.
1. Powers that must be exercised within or in conjunc-
tion with an Economic Development District.
The following is a list of the specific powers granted to
the Authority which must be exercised within or in conjunction
with an economic development district. These powers allow the
Authority to create an economic development district, acquire
land by various means within that district, improve the land
to make it suitable for development, sell the land so acquired
(with development stipulations) or develop the land itself as
a public facility.
(a) Creation of Economic Development District.
The Authority may create, following notice and
hearing, an economic development district at any place
within the city. Under Minn. Stat. i469.101 Subd. 1, the
district must satisfy the requirements of section 469.174
Subd. 10 (a provision which is part of the Tax Increment
Financing Law), except that district boundaries must be
contiguous. Section 469.175, Subd. 10 defines a
"redevelopment project" and, in general, requires
structurally substandard buildings, health or safety
hazards, deficient soil conditions, underutilized air
rights, vacant or underutilized railroad property or an
industrial park with a contaminated sewage lagoon.
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(b) Acquisition of Property.
In order to create an economic development district,
the Authority may acquire by lease, purchase, gift,
demise or condemnation proceedings any necessary right,
title or interest in property. Property acquired for
this purpose is exempt from taxation by the state or
political subdivisions, but only while the Authority
holds the property for its own use. Minn. Stat.
8469.1_01, Subd. 2.
(c) Acquisition of Rights and Easements.
The Authority may acquire rights and easements for
development of an economic development district. Minn.
Stat. 5469.101 Subd. 7.
(d) Receipt of Assistance.
The Authority may accept land, money or other
assistance from the federal or state government or an
agency of either to acquire and develop an economic
development district. Minn. Stat. 8469.101 Subd. 9.
(e) Sale or Lease of Land.
The Authority may sell or lease land held by the
Authority in economic development districts. Minn. Stat.
8469.101, Subd. 10.
The Authority may, after notice of hearing, sell
property owned by it if the sale or conveyance is in the
best interest of the City and furthers the Authority's
general plan of economic development. The sale may be by
private or public sale. The terms of the sale of
property must include the intended use of the land and
may not be consummated until the purchaser delivers the
plans and specifications covering the development of the
property to the Authority for approval. If the purchaser
fails to devote the property to its intended use or fails
to begin work on improvements in one year from the date
of the purchase, the Authority may cancel the sale, and
title to the property will revert to the Authority. The
Authority may extend the one year deadline for good
cause. The purchaser of the land may not transfer title
within one year after the sale without the consent of the
Authority. Minn. Stat. 8469.105.
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(f) Public Facilities.
The Authority may maintain and operate a public
parking facility or other public facilities to promote
development in an economic development district. Minn.
Stat. 1469.101, Subd. 13.
(g) Government Agent.
The Authority may cooperate with or act as an agent
for the federal or state government in the area of
economic development district improvement. Minn. Stat.
1469.101, Subd. 14.
(h) Acceptance of Public Land.
The Authority may accept conveyances of land from
all other public agencies, commissions, or other units of
government if the land can be properly used by the
Authority in an economic development district. Minn.
Stat. 1469.101, Subd. 17.
(i) Development and Improvement.
The Authority may carry out EDA law to develop and
improve land in an economic development district. The
Authority may fill, grade and protect property and do
anything necessary and expedient after acquiring property
in an economic development district to make it suitable
and attractive for development. Minn. Stat. 1469.102
Subd. 18.
2. Powers that need not be exercised within or in
conjunction with an Economic Development
District.
The Act also grants to Authorities various powers that
need not be exercised within or in conjunction with an
economic development district. These powers are a great deal
broader than those outlined above, and they represent the true
value of an economic development authority to a City. These
powers include not only those granted directly by the EDA
sections of Chapter 469, but also those granted to an
Authority by cross- reference to other sections of Chapter 469.
The Authority also has the power to issue various types of
obligations.
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(a) Eminent Domain.
The Authority may exercise the power of Eminent
Domain. Minn. Stat. 5469.101 Subd. 4.
(b) Power to Contract.
The Authority may enter into contracts for the
purpose of economic development and may contract to
purchase and sell real and personal property. Any
obligation or expense of the Authority May not be
incurred unless there is an existing appropriation and
reasonably expected revenue of the Authority from other
sources sufficient to discharge the obligation or pay the
expense when due. Minn. Stat. 5469.101 Subd. 5
(c) Limited Partner.
The Authority may act as a limited partner in a
partnership whose purpose is consistent with the
Authority's purposes. Thus, the Authority may invest
directly in a business and will be protected from
liability because of the form of the investment. The
Authority's liability will be limited to the amount of
contributions it has made to the partnership. Limited
partner status, however will prevent the Authority from
taking an active role in the operation and management of
the business. Minn. Stat. 5469.101, Subd. 6.
(d) Supplies and Materials.
The Authority may buy the supplies and materials it
needs to carry out economic development. Minn. Stat.
9469.101 Subd. 8.
(e) Foreign Trade Zone.
The Authority may apply for Foreign Trade Zone
powers alone or with another Authority. Minn. Stat.
8469.101, Subd. 11.
(f) Studies, Analysis, Research.
An Authority may study and analyze economic
development needs in the City and ways to meet the needs
and may engage in research and dissiminate information on
economic development within the City. Minn. Stat.
9469.101, subd. 15.
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(g) Cross - Fertilization.
An Authority may exercise the powers and duties of a
redevelopment agency under sections 469.152 to 469.165
(Municipal Industrial Development) for a purpose in
sections 469.001 to 469.047 (Housing and Redevelopment
Authorities) or 469.090 to 469.108 (Economic Development
Authorities). The Authority may also use the powers and
duties in sections 469.001 to 469.047 (Housing and
Redevelopment Authorities) and 469.090 to 469.108
(Economic Development Authorities) for a purpose in
sections 469.152 to 469.165 (Municipal Industrial
Development). The Authority also has the powers of a
City under sections 469.124 to 469.134 (City Development
Districts). Minn. Stat. SS 469.091, 469.101, subd. 12.
A summary of the purposes and powers of Housing and
Redevelopment Authorities, City Development Districts and
Municipal Industrial Development will follow.
(h) Levy of Taxes for Economic Development Authority.
The City may, at the request of the Authority, levy
a tax in any year for the benefit of the Authority in an
amount not less than 0.75 mill times the assessed
valuation of the taxable property in the City. An
increase in the levy is allowed if the City follows
certain procedures and subject to reverse referendum.
The levy may be increased by resolution of the City
Council after published notice. The resolution is not
effective if a petition requesting a referendum is filed
with the City Clerk within 30 days after publication of
the resolution. The petition must be signed by voters
equalling at least 5% of the vote cast in the last
general election. The election called for by to the
referendum must be held as specified in section 275.58.
Minn. Stat. $469.107.
(i) Advances.
An Authority may advance (loan) its general fund
money or credit without interest, for the objects and
purposes of the Act. The advances must be repaid from
the sale or lease of land. If the money advanced for the
development or redevelopment was obtained from the sale
of the Authority's general obligation bonds, then the
advances must have not less than the average annual
interest rate on the Authority's general obligation bonds
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that are outstanding at the time the advances are made.
Advances made to acquire land and to construct facilities
for recreation purposes, if authorized by law, need not
be reimbursed. Minn. Stat. S469.106. The repayment
provisions of this section imply that advances can only
be made by way of an installment sale or financing lease,
which necessarily limits the type of costs which can be
financed under this provision to property susceptible of
being leased or sold.
3. Issuance of Obligations.
(a) Issuance of General Obligation Bonds.
The Authority may issue general obligation bonds in
anticipation of income from any source, in the principal
amount authorized by a two thirds vote of the City
Council, for the purpose of acquiring property or for any
other purpose set forth in the Act. The bonds must be
sold by public sale, and the form and interest rate must
be set by the City Council. The issuance of the bonds is
governed by the Act, except for matters that are not
covered in the Act, which are governed by Chapter 475
(Public Indebtedness). An election is required for the
issuance of the general obligation bonds unless the bonds
otherwise qualify for an exception from the election
requirement under the provisions of Chapter 475. The
election requirement may only be avoided for general
obligation bonds if at least 20% of the debt service will
be paid from tax increments, in which case the procedures
of the Tax Increment Financing Law must be followed. The
bonds must mature within 20 years from the date of
issuance. The City Council must, by ordinance, give
specific consent to the pledge of its full faith and
credit to the bonds. The bonds are payable from taxes
levied by the Authority on all taxable property in the
city, which taxes must be in an annual amount at least 5%
in excess of the annual principal and interest on the
bonds. Minn. Stat. 5469.102.
(b) Issuance of Revenue Bonds.
Revenue Bonds may be issued by the Authority to
acquire land, to purchase or construct facilities, to
purchase, install or furnish capital equipment, or to
extend, improve, or enlarge a project under its control.
The bonds issue may also include a reserve to secure the
payment of principal and interest on the bonds. The
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bonds must mature within 20 years from the date of
issuance, may be sold at public or private sale and may
be secured by any revenue from the facility financed by
the bonds. Revenue bonds are not a debt of the Authority
or the City but are payable only from the revenues
pledged to their payment. If the revenue bonds are
taxable bonds, the project financed with them does not
have to be approved by the Energy and Economic
Development Authority and certain public hearing and
reporting requirements under the industrial development
bond provision of Ch. 469 do not apply. In addition, the
industrial development bond provisions of Chapter 469
which prohibit the financing of property to be sold for
housing facilities to be rented or used as permanent
residence do not apply. Minn. Stat. 9469.103. However,
the bonds will be subject to the limitations set forth in
Sections 462C.01- 462C.07.
(c) Tax Increment Bonds.
Under Minn. Stat. S469.103, Subd. 8, the Authority
may issue tax increment bonds payable from tax increment
revenues. The issuance of tax increment bonds are
subject to the provisions of the Minnesota Tax Increment
Financing Act. Minn. Stat. 99469.174 to 469.179. The
proceeds of tax increment bonds are subject to the same
use limitations as tax increments. Minn. Stat. §469.176,
subd. 4.
(d) Pledge of Revenues.
The Authority may pledge and grant a lien on
revenues of the Authority to secure the payment of its
general obligation or revenue bonds. The revenue must
come from the facility to be acquired, constructed or
improved with bond proceeds or from other facilities
named in the resolution authorizing the bonds. Minn.
Stat. 9469.103, Subd. 5.
(e) Borrowing Money.
After authorizing general obligation or revenue
bonds, the Authority may borrow money for the purpose for
which the bonds are to be issued in an amount not to
exceed the amount of the bonds to be issued. The loans
must be evidenced by negotiable notes due not more than
12 months after the date of the loan, which notes are to
be repaid from the proceeds of the bonds. Minn. Stat.
9469.101, Subd. 19.
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4. Optional Use by Existing Port Authorities.
Any city that has established a port authority by special
law or that has been granted the power to establish a port
authority by special law may elect to use any of the powers
granted in the Act, however, the provisions of the Act must be
used exclusively and, upon an election to use the power set
forth in the Act, any powers granted in the special law may no
longer be used.
5. Cross - Fertilization Powers.
As noted previously, the Authority may exercise Indus-
trial Development powers (contained in SS 469.152 to 469.165)
for HRA or EDA purposes, and it may also use HRA or EDA powers
for Industrial Development purposes. The Authority may also
exercise the powers of a City contained in SS 469.124 to
469.134 (City Development Districts). This "cross- fertiliza-
tion" gives Authorities great latitude in using the various
powers contained in the statutes for various purposes within
the statutes.
A. Purposes
1. HRA Purposes
The purposes of HRAs are to provide adequate housing and
to clear and redevelop blighted areas. Minn. Stat. S 469.001
et seq. A "blighted area" means an area with buildings or
improvements which are detrimental to the safety, health,
morals or welfare of the community. Minn. Stat. $ 469.002,
subd. 11.
2. EDA Purposes
The purposes of EDAs are not made altogether clear by the
statutes. Although the statutes make frequent references to
EDA purposes, the statutes do not specify those purposes; in
fact, the Legislature entangled, almost inextricably, the
concept of purposes with the concept of powers. However, it
does appear that one purpose of an EDA is to make land
suitable and available for economic development uses and
purposes and to encourage the location or expansion of
economic development facilities.
14
Page 16
3. Industrial Development Purposes
The broadest purposes are those which underlie municipal
industrial development. Those purposes are the active
promotion, attraction, encouragement and development of
economically sound industry and commerce through governmental
action for the purpose of preventing the emergence of blighted
and marginal lands and areas of chronic unemployment. In
essence, industrial development purposes are those necessary
to encourage economic development.
B. Powers
Because the list of powers that may be exercised by a
given Authority is so long, only those powers which seem most
suited to economic development will be listed below.
1. HRA Powers
The HRA statutes give powers to both the HRA and the City
to exercise in connection with redevelopment.
(a) HRA Powers as to Projects.
The schedule of powers contained in the HRA law states
that an authority shall have all the powers necessary or
convenient to carry out the purposes of the HRA law. Those
powers include the power:
(1) To establish a redevelopment project under Minn.
Stat. S469.002, subd. 14, which may be to conduct an "urban
renwal project" for elimination or prevention of blighted or
deteriorated areas. The term project may be applied to all
real and personal property, assets, cash, or other funds, held
or used in connection with the development or operation of the
project..
To establish a redevelopment project, the Authority must
prepare a redevelopment plan, which the City must then
approve. Minn. Stat. S 469.028. The City may approve the
redevelopment plan after a public hearing for which at least
ten (10) but not more than thirty (30) days published notice
was given. The City must make the following findings in
connection with its approval of the plan:
(i) the land in the project area would not be made
available for redevelopment without the financial aid to
be sought;
15
Page 17
(ii) the redevelopment plans for the redevelopment
areas in the locality will afford maximum opportunity,
consistent with the needs of the locality as a whole, for
the redevelopment of the areas by private enterprise; and
(iii) the redevelopment plan conforms to a general plan
for the development of the locality as a whole.
Minn. Stat. 5469.028, subd.2.
(2) To undertake, prepare, carry out, and operate
projects and to provide for the construction, reconstruction,
improvement, extension, alteration, or repair of any project
or any part thereof; Minn. Stat. 5469.012, Subd. 1(4);
(3) To give, sell, transfer, convey or otherwise dispose
of real or personal property or any interest therein and to
execute leases, deeds, conveyances, negotiable instruments,
purchase agreements, and other contracts or instruments and
take action that is necessary or convenient to carry out the
purposes in the HRA law; Minn. Stat. 5469.012, Subd. 1(5);
(4) To acquire real or personal property or any interest
therein by gifts, grants, purchase, exchange, lease, transfer,
bequest, or otherwise, and by the exercise of the power of
eminent domain; Minn. Stat. 5469.012, Subd. 1(6);
(5) To borrow money or other property and accept
contributions, grants, gifts, services or other assistance
from the federal government, the state government, state
public bodies, or from any other public or private sources;
Minn. Stat. 5469.012, Subd. 1(13);
(6) To issue bonds of a type determined by the Authority
for any of its corporate purposes. The Authority may secure
the bonds by mortgages upon property held or to be held by the
Authority or by pledge of its revenues, or a pledge of grants
or contributions from the federal government or any other
source; Minn. Stat. 5469.012, Subd. 1(15), 5469.034;
(7) To develop and administer an interest reduction
program to assist the financing of the construction,
rehabilitation, and purchase of housing units which are
intended primarily for occupancy by individuals of low or
moderate income and related and subordinate facilities. Minn.
Stat. 5469.012, Subd. 7. The authority to authorize payment
of interest reduction assistance expires on January 1, 1989;
Minn. Stat. §469.012, Subd. 10;
16
Page 18
(8) To levy a special tax each year upon all property,
both real and personal, within the taxing district (which
includes all of the territory included within the area of
operation of the Authority). The taxes will be kept in a
separate fund known as the "housing and redevelopment project
fund ". The money in the fund may be used for HRA purposes and
no other purpose. The tax may not exceed ten cents on each
$100 of taxable valuation in the area of operation; Minn.
Stat. S469.033, Subd. 6;
(9) An HRA may exercise the powers of a City under
Sections 459.31 to 959.33 if the City, by ordinance,
authorizes it. Under Sections 459.31 to 459.33, a city may
establish and provide for the administration of a commercial
building loan program to rehabilitate and preserve small and
medium sized commercial buildings within its boundaries.
(b) City Powers as to Projects.
A state public body (which includes cities) may aid and
cooperate in the planning, undertaking, construction or
operation of projects by doing any of the following things:
(i) Dedicate, sell, convey, or lease any of
its interest in any property or grant easements,
licenses or other rights or privileges therein to
an Authority; Minn. Stat. S469.041 (1).
(ii) Pay the bonds of or make loans or
contributions for redevelopment projects; Minn.
Stat. 9469.041(1).
(iii) Do any and all things necessary or
convenient to aid and cooperate in the planning,
undertaking, construction or operation of projects;
and
(iv) Furnish funds available to it from any
source, including the proceeds of bonds, to an
authority to pay all or any part of the cost to the
authority of the activities authorized by section
469.012, subd. 1, clause (7) (acquiring real
property, demolishing, removing or rehabilitating,
or reconstructing the buildings or improvements,
constructing new buildings or improvements thereon,
or to prepare the site for improvements), Minn.
Stat. 9469.041(9).
17
Page 19
2. EDA Powers
See Section B, 1 -5 of this outline.
3. City Development District Powers
A city may designate development districts within
the city boundaries. After consulting with its planning
agency and conducting a public hearing within a development
district, the city may adopt a development program, acquire
land or easements through negotiation or powers of eminent
domain, adopt ordinances regulating traffic (pedestrian or
automobile) in facilities constructed within the development
district, and exercise certain other powers. Minn. Stat.
5 469.126.
4. Industrial Development Powers
A municipality or redevelopment agency may:
(a) acquire, construct and hold any lands,
buildings, easements, water and air rights, improvements
to land and buildings, and capital equipment to be
located permanently or used exclusively on a designated
site and solid waste disposal or pollution control
equipment and inventory, regardless of where located,
that are deemed necessary in connection with a project to
be situated within the state and construct, reconstruct,
improve, better and extend the project (Minn. Stat.
5 469.155, Subd. 2);
(b) pay part or all of the cost of an acquisition
and construction by a contracting party under a revenue
agreement (Minn. Stat. 5 469.155, Subd. 2);
(c) enter into revenue agreements with any public
or private entity to ensure revenue sufficient to pay
principal interest on bonds issued under the statute
(Minn. Stat. 5 469.155, Subd. 5);
(d) pledge the revenues of one or more projects to
payment of bonds, and it may mortgage or permit to be
mortgaged a project and its revenues in favor of the city
or authority, the bondholders, or a trustee therefor
(Minn. Stat. 5 469.155, Subd. 6 and Subd. 7);
18
Page 20
(e)- make contracts, execute instruments, and do all
things necessary or convenient in the exercise of powers
granted in the Municipal Industrial Development section
(Minn. Stat. S 469.155, Subd. 8).
It may not operate a project as a business, and it
may not expend funds on a project other than the revenues
of the project or the proceeds of revenue bonds and notes
or other funds granted to the municipality or authority
for industrial development purposes. Since an EDA may
exercise HRA powers for the purpose of "industrial
development, and since an HRA has clear authority to
operate a project, this limitation has been overridden by
other provisions of the statute.
C. Constitutional Concerns
1. Public Purpose Doctrine
Public funds may be used only for public purposes.
Minnesota Constitution, Article X, S1. ( "taxes shall be .
levied and collected for public purposes "). Minnesota
Constitution, Article XII, Si. ( "The Legislature shall pass
no local or special laws . . . authorizing public taxation for
a private purpose. ")
The Minnesota Supreme Court has given a broad
interpretation to the meaning of public purpose, holding that
such meaning "is ever evolving in light of contemporary
conditions." Minnesota Energy & Economic Development
Authority v. Printy, 351 N.W.2d, 319, 338 (Minn. 1984).
Moreover, legislative determinations of public purpose, while
not binding on the courts, are entitled to great weight. In
fact, the Minnesota Supreme Court has held that "a reviewing
court should overrule a legislative determination that a
particular expenditure is made for a public purpose only if
that determination is manifestly arbitrary and capricious."
R.E. Short Co. v. City of Minneapolis, 269 N.W.2d, 331, 337
(Minn. 1978).
In making its determination, the court need not consider
"extraneous factors such as the mode of financing ", for such
factors "have no bearing on the issue of public purpose.
Lifteau v. Metropolitan Sports Facilities Commission, 270
N.W.2d 749, 754 n.6. (Minn. 1978) Instead, the court must
focus on whether the expenditures will benefit the community
as a whole and are related to the functions of government.
Visina v. Freeman, 252 Minn. 177, 184 -85, 89 N.W.2d 635, 643
(1958).
19
Page 21
2. "But for" Finding
In addition to finding a public purpose for a project or
program, it will be necessary to determine that the proposed
project would not go forward within the City "but for" the
assistance to be provided by the EDA. The City and /or
Authority must demonstrate need for public assistance to the
private entity and must make specific findings supporting that
need.
The public purpose and "but for" determinations will have
to be made on a case by case basis, looking at the particular
facts of a proposed project or program.
3. Loan of Credit
Article Xi, S2 of the Minnesota Constitution provides
that,
The credit of the state shall not be given or
loaned in aid of any individual, association
or corporation . . .
The Minnesota Supreme Court has consistently held that
this provision applies only to the state, and not to its
political subdivisions. Visina v. Freeman, 89 N.W.2d at 649;
Davidson v. County Commissioners of Ramsey County, 18 Minn.
482. Accordingly, an Authority need not be concerned that a
given project or program will be considered an impermissible
loan of the City's or Authority's credit.
D. Availability and Appropriate Utilization of Revenue
Sources
An EDA has several options for funding its activities.
These include use of excess tax increments, general fund
moneys of the City, proceeds of Bonds, proceeds from the levy
of taxes and others. Crucial to the use of any of these
revenue sources is that the Authority be able to find that
"but for" such use, the economic development project the
Authority is thereby trying to facilitate would not have
occurred.
1. Tax Increments. A city may use excess tax increments
to fund its Economic Development Authority. However, the use
of such tax increments carries with it limitations that make
it somewhat less useful than other sources of funds.
20
Page 22
a. Revision of Plan. First, revenues derived from
tax increments may be used only in accordance with a tax
increment financing plan. This means, at a minimum, that
existing development programs and tax increment financing
plans may have to be revised to provide for use of tax
increment by an Authority for the purposes contemplated
by the Authority.
b. Limitation on Use of Tax Increment. Further,
revenues derived from such tax increments may only be
used by an economic development authority to finance or
otherwise pay costs specifically listed in 5469.176,
subd. 4, which include:
(i) The "capital and administrative costs"
for projects undertaken in a "development district"
created pursuant to the City Development District
law. Tax increments derived from any existing tax
increment districts created by the City would be
subject to such a limitation. Unless the EDA could
reconstitute the development district as a
"redevelopment project area" under HRA law,
limitation of the use of tax increments to the
payment of "capital costs" would permit use of tax
increments to acquire a limited partnership
( "equity ") interest in a company only if the money
paid for the partnership interest were spent on a
"capital cost" of the project. Hence, the tax
increments could not be used to fund working capital
loans, whether or not funded directly or through an
"equity" investment.
(ii) The "cost of redevelopment" for projects
undertaken in an "economic development district"
pursuant to the EDA law. The EDA law defines "cost
of redevelopment" to mean acquiring property,
demolishing or removing structures on acquired
property, correcting soil deficiencies on acquired
property, construction or installing public
improvements, providing relocation benefits to
occupants of acquired properties, planning,
engineering, legal and other services necessary to
carry out the above, and the allocated administra-
tive expenses of the authority for the project.
Clearly such costs do not include working capital
loans, nor, for that matter, the cost of construct-
ing or equipping a building. Furthermore, such
21
Page 23
costs must be incurred in an economic development
district which in turn must satisfy the stringent
"redevelopment district" requirements of the Tax
Increment Financing Act.*
(iii) The "public costs of redevelopment" for
projects undertaken pursuant to the HRA law in a
"project redevelopment area ". Unlike the cost
restrictions on other projects discussed above, the
HRA restriction does not limit the use of tax
increments to capital costs. Thus," if the projects
were undertaken pursuant to the HRA laws and were
qualified as "any work or undertaking to provide
housing for persons of moderate income and their
families" or an "undertaking . for the
elimination or for the prevention of the development
or spread of slums or blighted or deteriorating
areas" and if any underlying land to be acquired as
part of the public costs of redevelopment is either
a "blighted area" or satisfies the conditions set
forth in Minnesota Statutes, Section 469.028,
Subdivisions 3 or 4, then there is little statutory
restraint on how tax increments could be used to aid
such projects so long as appropriate hearings are
held and findings as to need are made by the City
Council and the EDA.
(iv) The cost of financing or otherwise
paying premiums for insurance or other security
guaranteeing the payment when due of debt service on
housing revenue bonds issued under Chapter 462C or
industrial or commercial development revenue bonds
issued under the Municipal Industrial Development
Act or to fund and maintain a debt reserve for such
bonds (not to exceed after five years from date of
issuance 20% of the outstanding principal amount of
such bonds).
c. Transfer of Projects. In order to allow the EDA
to use tax increments and other revenues derived from any
development districts created under the City Development
The "redevelopment district" requirements, which are
already stringent, may become even more so if pending
amendments to the Tax Increment Financing Act are enacted
into law.
22
Page 24
District law or from projects undertaken by any City or
HRA, a City may elect, by resolution of the City Council,
to transfer control of such projects and any underlying
tax increment financing districts to the EDA. After the
transfer, the EDA may exercise all powers the City or HRA
had with respect to the project. The EDA must covenant
and pledge to perform the terms, conditions and covenants
of the bond indenture or other agreements executed for
the security of any bonds issued by the City with respect
to the program, and the EDA will become obligated on the
bonds when the program is transferred. Such transfer,
however, will not relieve the City of its full faith and
credit pledge and tax levying responsibilities with
respect to the bonds issued by the City. If the City
should decide to retain jurisdiction over any development
district, the City Council could still transfer the tax
increments to the EDA pursuant to the annual budget so
long as the tax increments are used in a manner
consistent with the development district plan and tax
increment financing plan adopted by the City.
2. General Fund Moneys of City. The Authority is
required to send its budget to the City Council with an
estimate of the amount of money the Authority expects to need
from the City to do Authority business during the next fiscal
year. This is the procedure under which the City may give to
the Authority money from the City's general fund for the
Authority to use. The benefit of using City general fund
moneys lies in the fact that such moneys are not as limited in
use as moneys from other sources. In short, general fund
moneys may be contributed by the City to the Authority and
used for any economic development purpose, so long as
appropriate findings are made and safeguards are imposed to
show that such use will be made to promote economic
development within the City. Such use includes write - downs,
grants or loans (including working capital loans) to companies
to induce them to locate or expand in the City and the
purchase of limited partnership interests.
3. Bonds. An Authority may use the proceeds of various
types of bonds to fund its activities.
a. Tax Supported General Obligation Non -Tax
Increment Bonds of the City. The City could issue tax
supported general obligation ( "G.O. ") bonds which are not
secured by tax increments and give the Authority the
proceeds of its G.O. bonds to use in connection with
development activity. The bonds would be subject to
23
Page 25
approval pursuant to an election. The bond proceeds
could be used for any purpose for which the City's
general fund moneys may be used except the payment of any
current expenses of the Authority or the project.
b. Tax Supported General Obligation Bonds Issued by
the Authority. An Authority could issue G.O. bonds which
pledge the full faith and credit of the City, but only if
approved by an ordinance adopted by the City Council.
While those bonds would also be subject to the election
requirement, the proceeds could be used for any purpose
for which the City's general fund moneys may be used,
including payment of current expenses, so long as
provision is made to reimburse the Authority for such
expenditures, plus interest at a rate equal to the
average interest rate on the bonds.
c. Revenue Bonds of the Authority. The Authority
could issue revenue bonds and use those funds for any
purpose for which the City's general fund moneys may be
used, without requirement for reimbursement. The
revenues of the projects financed (and other revenues of
the Authority) would be pledged to the repayment of the
bonds. The Authority may also secure payment of the
bonds by either a mortgage on certain Authority
properties or a pledge of the Authority's, but not the
City's, full faith and credit, or both. The Authority
could also issue revenue bonds under the Municipal
Industrial Development Act or housing revenue bonds under
Chapter 462C and use tax increments to pay for any
security guaranteeing payment of the bonds or to fund or
maintain a reserve therefor. See paragraph lc. above.
d. Tax Increment Bonds. Either a City or its
Authority could issue either G.O. bonds or tax increment
revenue bonds secured by a pledge of tax increments
without an election. Use of the proceeds of tax
increment bonds would be subject to the same limitations
as tax increment funds. (The Authority could also secure
payment of the bonds in the same fashion allowed for
revenue bonds discussed above.)
e. Using Credit of Sister Authority. Under the
Joint Powers Act, the Authority could enter into a joint
powers agreement with some other authority having
substantially common power (e.g., the St. Paul Port
Authority) under which the other authority could issue
bonds and thereby lend its credit to finance a project in
the City.
24
Page 26
4. Tax Levy. An Authority may have its City levy a tax
of .75 mill times the assessed valuation of taxable property
in the City for the benefit of the Authority. The City may
increase this levy by following the "reverse referendum"
procedure specified in the statute. In addition, the EDA
could exercise its HRA powers and levy a tax of one third of
one mill times the assessed valuation of taxable property in
the City for the benefit of the Authority. This levy also
requires City Council approval. The money obtained from the
levy could be used for any purpose for which the City's
general fund moneys could be used.
5. Reimbursement Tax Increment Money. Even if excess
tax increments are restricted as to use, that restriction is
removed once the tax increments are used to reimburse the City
for general fund expenditures (including administrative costs)
which could have been paid from tax increments.
6. Utility Taxes. We are unaware of any authority under
which the City may impose any "utility tax" as a surcharge on
rates and charges imposed for sewer and water to help finance
economic development projects. Rates and charges may be
increased, however, or a surcharge used, to raise the money
required to expand the sewer and water system to accomodate
economic development. On the other hand there is at least
some authority for including a reasonable profit relating to
the City's utility system. This "profit" could be transferred
to the City's general fund and inturn used in the same manner
as other general fund monies. Similarly, any franchise fee
charged for the granting of a franchise to an investor owned
utility (e.g., NSP) could be contributed in the same manner as
other general fund moneys could be used.
7. Miscellaneous Sources of Revenue. The City could use
developer payments in lieu of taxes or developer loan
repayments for any purpose for which the City's general fund
moneys could be used.
Despite the broad interpretation given the public purpose
doctrine, it remains crucial to demonstrate that public funds
will be used for a public purpose. Public benefits such as
the addition of jobs, the retention of jobs, the addition or
retention of tax base, or the prevention or cure of blight
will demonstrate that a project has the requisite public
purpose. In any given project, providing for penalties if
certain job or tax base criteria are not met will bolster a
public purpose argument.
Dated March 9, 1988.
25
Page 27
LITTLE CANADA STREET IMPROVEMENT -- PAYNE AVENUE 88 -7
ALBER CONSTRUCTION, INC.
ALEXANDER CONSTRUCTION CO., INC. 0 105,280 10
ARNT CONSTR. CO. INC.
ASHBACH CONSTRUCTION CO. /` 92,272,0
( .0
BARBER CONSTRUCTION CO., INC. '! 122 070.00
BITUMINOUS CONSULTING &
CONTRACTING CO., INC.
FOREST LAKE CONTRACTING, INC.
F. M. FRATTALONE EXCAVATING
& GRADING, INC. 90,105.00
GAMMON BROS., INC. //����
MIDWEST ASPHALT CORP. 103,877.00
/lam/
SHAFER CONTRACTING CO., INC. � 86 880.00
TOWER ASPHALT, INC. 98 116.00
TRAXLER CONSTRUCTION, INC.
VALLEY PAVING, INC. b 104,994.90
T.A. Schifsky
91,266.10
Page 28
1
Federal Update
NLC urges cities to participate in Cities Against
Drugs Week
The National League of Cities (NLC) is
urging all cities to join together to over-
come drug addiction and drug- related
violence during Cities Against Drugs
Week, December 3 -9.
In letters to city officials, NLC President
Terry Goddard, mayor of Phoenix, is en-
couraging broad -based community
response to demand that the federal
government provide immediate, adequate,
and direct financial assistance to cities
to combat drug abuse.
What cities can do
• Prepare a resolution proclaiming the
week of December 3 -9 as Cities Fight
Back Against Drugs Week (see sample
resolution);
• Cities should send copies of the resolu-
tion to President Bush, members of the
Minnesota congressional delegation, the
press, Governor Perpich, and to NLC;
• Identify activities that cities could im-
plement to draw attention to efforts to
halt the threat of drug abuse;
• Send letters to President Bush and
members of the Minnesota congressional
delegation to urge action to help cities;
• Invite local congressman, senator, and
state lawmakers to participate in local
anti-ding rallies; and
• Let members of Congress know your
views on how to address the drug prob-
lem;
• Make members of Congress under-
stand that the local perspective must be
reflected in the availability of resources
to combat the problem;
• Meet with local press to publicize local
concerns and actions;
• Get the attention of the press by hold-
ing briefings or press conferences when
appropriate;
• Meet with editorial boards, appear on
radio or TV talk shows; and
• Conduct a poster campaign to get com-
munity involvement in identifying the
problem at the local level.
The League urges city officials to con-
tact members of the state's congressional
delegation to get them to cosponsor reso-
lutions proclaiming December 3 -9 as
National Cities Fight Back Against Drugs
Week.
Goddard's call to action on drugs en-
courages all city officials to help rededi-
cate local energies and community ef-
forts to create a "national crusade against
drugs." It is time for
communities to crusade
for legislative remedies
and to send the follow-
ing messages to Presi-
dent Bush and members
of Congress:
* Cities need at least $5-
6 billion nationally to
upgrade law enforce-
ment, community pre-
vention, treatment, and
other measures to com-
bat the effects of drug
abuse;
* Cities need direct, flex-
ible federal funding - -a
block grant program to
provide assistance di-
rectly to cities;
* Cities must receive
assistance that does not
divert funds from cur-
rent municipal programs;
and
page 10
* There must be a comprehensive ap-
proach to the problem of drug abuse that
includes education, treatment, preven-
tion, law enforcement, housing, and
research.
NLC suggestions for state league activi-
ties include: identifying local initiatives,
publicizing innovative ideas, holding
workshops to focus attention on anti-
drug programs, distributing press state-
ments and conducting letter writing
campaigns, and organizing statewide anti-
drug rallies or forums.
NLC wants to keep track of local re-
sponse and activities in this effort. Please
contact Julio Barreto, at the National
League of Cities, 1301 Pennsylvania
Avenue N.W., Washington, D.C. 20004
to let NLC know what activities your
city has done. AH
1
SAMPLE RESOLUTION
CTIES MCUT BACK AGAINST DRUGS WEEK
Dubs 3.1,01*
WHEREAS ,b prance sidings m weeds le our society b• mated in maanble problems of
lama masertery. ,o •Sri: diem: and
WHEREAS Me bmepmaal druarnitMp.sH® re itemised lass baba.. Bees, the ire.
of .meonia producd,im. the Music. of public remoras to adsea man problem on W fromu and
.e thna•a W lough of oar pesple: of
WHEREAS, me tl.aud*. of a bmir. o irad.wa• education rem, poverty. wwp%mo..us
Pad all combos to Blyel dne w: N
W HEAFAS me demand Ire meal mop It e Mme problem that Naas all segments of oar beery,
ecludiog pa•alo•,l and •m a. people: ad
W HEREAS GY W dvp pIY* totem abmba end rvN me®idos of MI icon ad regions: ad
WEED 9M. Illegal droop tm.dm• •ptbk. bee csmaWry sad lead b• lea of problems suds es
bomleds. subbases. MvdWis ad abet reset- domaee violate; ad
WHFRESS a adoelw m drop ha bee declared to combos me lmporwioa uNrdiol ale end
Muse or deep: ad
WHEREAS our aCa t deco ad pun on to dos RxOlan dam .v on dive: ad
WHEREAS bmtt& of Amaba damea.d public stream b., died and Dowadr of abed rW
their tiro duly b Babe m e-e' IbO,iAai beta wino maps di.p ad me rtiaiai activities mom-
midst bemdltel tap,
NOW. THEREFORE BE IT RESOLVED that (dryM.o mine) declare December papa 'Odes
ngMBW Apba Drop W ma" and
BE R FURTHER RESOLVED ma *Mrs ma col Me tlrysoa,rmsponsor-
BE R EVRT ER RESOLVED Ma tits toeseben of me dryfo.n will go on need urging community
Dome aba4 ad babes ds der o pemdons to appon and patidMre in medal emeriti.; during
bawl to den community .rtaw'O b rill *At
Wes
Page 29
LMC Cities Bulletin
Department of Revenue - Gaming Division
Mail Station 3315
St. Paul, MN 55146 -3315
(612) 297 -5300
GAMBLING LICENSE RENEWAL APPLICATION
For Board Use Only
Paid Amt:
Check No.
Date:
LICENSE NUMBER:
A -11818 -111
/ EFF. DATE:
11111/89
/ AMOUNT OF FEE:
$201.10
1. Applicant -Legal Name of Organization 2
2. Street Address
3. City, State, Zip 4
4. County 5
5. Business Phone
6. Name of Chief Executive Officer
7
7. Business Phone
18. If Bingo will be conducted with this license, please specify days and times of Bingo.
Days Times Days Times
Days
Times
19. Has license ever been: ❑ Revoked Date:
20. Have internal controls been submitted previously?
21. Has current lease been filed with the board?
22. Has current sketch been filed with the board?
❑ Suspended Date: 0 Denied Date: N
,Yes 0 No (If "No,' attach copy)
AYes ❑ No (If "No," attach copy)
g Yes ❑ No (If "No," attach copy)
GAMBLING SITE AUTHORIZATION
By my signature below, local law enforcement officers or agents of the Board are hereby authorized to enter upon the site, at any time, gambling is
being conducted, to observe the gambling and to enforce the law for any unauthorized game or practice.
BANK RECORDS AUTHORIZATION
By my signature below, the Board is hereby authorized to inspect the bank records of the General Gambling Bank Account whenever necessary to
fulfill requirements of current gambling rules and law.
OATH
I hereby declare that:
1. I have read this application and all information submitted to the Board;
2. All information submitted is true, accurate and complete;
3. All other required information has been fully disclosed;
4. I am the chief executive officer of the organization;
5. I assume full responsibility for the fair and lawful operation of all activities to be conducted;
6. I will familiarize myself with the laws of the State of Minnesota respecting gambling and rules of the board and agree, if licensed, to abide by those
laws and rules, including amendments thereto.
23. Official Le al Name of Organization Signature (Chief Exe utive Officer) Date
L /0/6 Le `/ / /o ' &7
Men/ tlr/d E / Coat / I L / . !� r -- 2.(1(Y
/ ACKNOW EDG MENT OF NOTICE BY LOCAL GOVERNING BODY
I hereby acknowledge receipt of a copy of this ap. ication. By acknowledging receipt, I admit having been served with notice that this application will
be reviewed by the Charitable Gambling Control Board and if approved by the Board, will become effective 60 days from the date of receipt (noted
below), unless a resolution of the local governing body is passed which specifically disallows such activity and a copy of that resolution is received by
the Charitable Gambling Control Board within 60 days of the below noted date.
24. City /County Name (Local Governing Body) Township: If site is located within a township, please complete items 24
and 25:
Signature of Person Receiving Application: 25. Signature of Person Receiving Application
Title Date Received (this date begins 60 day period) Title:
Name of Person Delivering Application to Local Governing Body: Township Name
CG- 00022 -01 (4/89)
White Copy -Board Canary - Applicant Pink -Local Governing Body
Page 30
00
73;
CG- 00022 -01 (4/89)
White Copy -Board Canary - Applicant Pink -Local Governing Body
Page 30
00
73;
l• sirs Jx•e lvla,e'. Vlt,s1111.11\l• 1,1:.tt.11. H. trlth,l'.1V11',111
1•IIIS LEASE AG It E:E :M ENT, made us id the 721--:. day of /7/.._.�_,. 197e9, by n let ecn7 /!(,F r /d' 1 /i//('�
• (herein after rcicrred 10 as "Lessor", and 21/4146.dtk a /f�'%j)` /f %f F7/TS y See / /4ratLe herci nailer referred to as the "Organization.).
p WITNESSET I1: _
•
W II ERE AS, Lessor is it, eS774CPA/Yr hiving its principal placey�u(busin•ss at 7P/ 2 /(/et '�C� .__ and maintains n
hcensv 10 sell intoxicating beverages issued by the City of 2_211,�fLY(// /YH� , MIirr Wsulu, wXhieh liccuu k u __,_.. . _, uuthariling soles m
,22/! M &[ f andyr t he name of 7 ,"4 -Z—. 4 ,v d44/ 2 c • uud
WHEREAS, the Organization is a $e4'v /'Zfr r' /A,eorirf40ari n organized under the laws of /79 ',t-47 Irtving its principal place of
business at and which Organization is authorized by the laws oI the State of Minnesota to conduce lawful
gambling within the State upon iissuan4c of the appropriate gambling license; and
W II 111 LAS, Lessor desires to lease to the Organization, and the Organization desires to lease from Lessor. certain space for the pm pose of conducting lawful
gambling:
NOW, THEREFORE, in consideration of the mutual covenants and undertakings contained herein, the parties agree as follows
1. Lease of Portion of Premises. Lessor, inconsideration of the rents and covenants hereinafter described, does hereby demise, lca.�Jc.md let to the Organization,
and the Organization does hereby hire and take front the Lessor, the following - described premises located in the County of t`4_ Nn S e Y State of
Minnesota:
Legal l )esrnpliutc _ .. ..___. -
Slreet Adthess: , S I / �f`� � 5 f (C.<.' • ( /
Demised Portion it 1 A -) 'Li a; foti y— C4.0 0, j ii CO /117 e, ( to COCJ 6'e1/41, r ce i )
which demised premises represents a portion of the above business' premises as more fully described on the Premises Site Phu attached hereto and incorporated
herein by reerence as Exhibit A.
sr
2. Term of Lease. The term of this Lease shall begin on the day nl To_ to 1976) subject to the terms and on& moss set forth herein. The
term of this Lease shall end at midnight on the sane calendar date as the beginning date one year thereafter.
3. Lease Conditioned upon Llcenvure. The duties of Lessor and Organization under this Lease Agreement are expressly conditioned upon the issu/a,�tce to the
Organization of a gambling license by the Minnesota Charitable Gambling Conrol Hoard for a Class A I iecnse to conduct {-' J rJ d /1-c- -c-; S (z✓�/
_ /
Unless and until said license is issued to the Orgwniz salon, the Organization shall have no duty to pity lent. Unless and until said
license is issued to the Organization, L.essm shall have no duty to convey to Organization the uhuve- demised premises.
4. Itenl.l he Organization shall pay to Lessor during the term of this Lease annual rent of 200 in monthly payments of t each if the
first and last mom hs of the lease tern) are not complete calendar months, the rent for those months shall be adjusted pro rata. Lessor is not required to send
statements for rent to the Organization. Neither party may deduct claims against the other from the rent payments.
5• Payment. The Organization shall pay all monthly rent to Lessor al Lessor's principal place of business. Lessor may from time to time designate in writing
another address for the payment of rent.
6. Tales. Lessor shall pay all real estate taxes. The Organization .shall pay all gambling taxes.
7. Liability and Insurance. Lessor will not be liable for injury, deal 11 or damage to or loss of personal property occurring upon the above - demised premises, nor
to the Organization, its agents, employees or invitees, for injury, dean h or damage to or Ins of personal property occurring within t he above- demised premises. The
Organization will hold lessor harmless front any such claims or any other claims or expenses arising out of the Organization's use, ahctation or occupation of the
demised premises. The Organization will also keep in effect, at its cost, public liability insurance naming both Lessor and the Organization as insureds in the
minimum amount of Twenty -Five Thousand and no/ 100 Dollars ('25.000 "t) combined single -limit for comprehensive general liability.
8. Right to Make A Iterations. Lessor construct or rcha hi Mute the above -de to ised premises, alter or replace structural elements and mechanical syste ns or
make other changes in the demised premises without the consent of the Organization, so long as the use) ulness of the demised piemists is not significantly
diminished. The Organization may instill at its own expense leasehold improvements and alterations set forth on the Premises Improvt men) Plan attached hereto
and incorporated herein by reference as Exhibit H.
9. Subordination. Lessor shall have the right to sell the above-demised preen ises or to snake this Lease subject to any existing or nut ore mortgages so long its
such sale or l oreclosure of the mortgage will not terminate this Lease, if the Organization is_uot then in delauh. 1 he Organization will execute documents to this
effect at Lessor's s request.
10. Surrender of the Premises. Whenever the Lease expires or terminates, the Oa go nizal ion will removeall trade fixtures and property belonging to it, its agents
or employees (but not leasehold improvements and alter a lions), repair any da nmatgecaused by removing dent affixed to the shove- deposed premises and leave the
demised premises in a reasonably Endo ly condition.
11. Amendments to Lease Agreement. l his Agreement may he amended upon mutual, written consent and approval of but pm tics.
12. Conduct of Gambling. Lessor hereby agrees that it, and any employee nr agent of the LlssOr shall not participate in the selling, distributing, conduct,
assisting or playing of lawful gambling at the demised premises. l'he Organization agrees to adhere to all ordinances governing gambling in Lessor's municipality
and the regulations pertaining to gambling issued by the Minnesota Charitable (rambling Control Board and the laws of the State of Minnesota.
13. Agreement. This Lease may not be assigned by either party except upon mutual written consent and approval of both parties.
14. Interpretations. If any provisions of this Lease are in conflict with any statute, ordinance or rule of law nl this Slate or any municipality wherein it may he
soughs to be implemented, then such provisionsshall be deemed null and void to the extent than they may conflict therewith, but without invalidating the remaining
provisions thereof. This Lease shall he governed by the laws of the Slate of Minnesota. '1 This Lease shall he binding upon Lessor and the Organization and their
respective legal representatives, successors and assigns.
IN WITNESS W H ER EO E', and intending to be bound hereby, the Organization has caused this Lease to be executed by a duly authorized personas of the day
and year fast above written, and Lessor ha>1pcceptcd the same as set forth below.
ACCEPTED by 1.essor as of the 3 i day of CST 19,
LESSO • ORGANIZA'f1ON:
By:
Its:
By'
It
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