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HomeMy WebLinkAbout07-21-81 CCMLAKE ELMO CITY COUNCIL - July 21, 1981 Mayor Eder called the meeting to order at 7:10 p.m. PRESENT - Fraser, Morgan, Mottaz, Novak; City Administrator Whittaker. AGENDA - Motion was made to adopt the agenda as amended; seconded and carried. MINUTES - Novak moved the June 30 public hearing minutes be accepted as written. Mottaz seconded; motion carried (4 ayes). Eder moved the July 7 minutes be accepted as amended: Page 7, second to last line, and page 8, "Ffaser.Mottaz moved, . . . Motion carried 5-9 4-0 (Fraser abstained). Fraser seconded; motion carried (4 ayes). CLAIMS - Novak moved approval of Claims 81561 thru 81597 (81597 was additional, Fire Chief's Conference, $75). Fraser seconded; motion carried (4 ayes). INTERFUND AUDIT ADJUSTMENTS - After discussion and upon recommendation of the auditor, Fraser moved to adopt Resolution 81-53*: A RESOLUTION ORDERING INTERFUND AUDIT ADJUSTMENTS. Mottaz seconded; motion carried (4 ayes). Whittaker noted that 2nd sheet of resolution, "City of Lake Elmo Fund Balances," should be titled "Adjusting the Reserve Balances in the { General Fund." To be transferred from General Fund to Building Reserve are $131,071.13 from road find. in order to merely straighten out books (other funds have already been designated into reserve). This item deferred to next meeting. (Morgan arrived.) EMS SUBSIDY - Tom Cropp, owner of Stillwater Ambulance, was present to solicit contract ($3,028.00 for balance of 1981) with Lake Elmo to subsidize ambulance/emergency services with his Company due to County formula change in funding. (REF: Whittaker memo to City Council re 7/21/81 City Council Agenda.) Mr. Cropp pointed out that he loses about $5,o00-$6,000 a year making uncollectable runs to Lake Elmo, or about 20% of runs to ALL areas. Comments: .Whittaker - Lake Elmo is not in the business of financing Medicare, welfare clients, etc; money should come from the State. ...Cropp answered question that Federal and State grant money was stopped (for equipment, etc), but not money for services. ..:Fraser - How can we use money that is already appropriated? We should speak emphatically to County and apply appropriate pressure to County to dispense money from their level. ...Mottaz - County is passing the buck. General consensus of Council was that more information should be ( provided to make contract decision—i.e. how money is presently being spent; total amount of Country distributed dollars; collections from Lake Elmo in 1979, 1980, 1st half 1981; total number of uncollectable * attached. LAKE ELMO CITY COUNCIL - 7/21/81 Page 2 calls, broken into welfare, Medicaid, etc; and loss dollars. Whittaker will supply this list of information needed to Cropp for his input. Mottaz moved that EMS Subsidy discussion be deferred to 8/4/81 meeting. Morgan seconded; motion carried (5 ayes). DEMONTREVILLE ACCESS_ A. Tow -away Zones (REF: Whittaker memo to City Council re agenda) - Comments were: ...Gary Swanson, Deputy Sheriff - noted that 45 tickets have come back from Clerk of Court in last 2 months, with others outstanding. ...Whittaker - Tow -away zone unduly ties up officers' time and doesn't accomplish what we want. ...Fraser - Let it go as is. ...Greg Fouks (7864 Demont. Tr.) - Even with tow -away, problem is still there; if access not barricaded, seriousness of problem will increase. ...James Ruppecht (7910 Demont. Tr.) - Takes acception to "not very many repeaters"; number of tickets issued shows problem is bigger than we thought. Ticketing is not doing the job; if towing is too hard, barricade is even more important. ...Gary Swanson - Guideline he Uses for issuing tickets is that if previous officer has tagged vehicle, he'll tag it again but will not tag his own tickets twice. ...Fraser - Since. County Courtssets fines, County could review their fines for possible increases. ...Whittaker - Cost for barricades is expensive; possibility that DNR will provide parking soon. In order to put up tow -away signs, we have to ask County Board, and if County Sheriff doesn't support that request it won't go anywhere. ...Mottaz - Has inquiry been made of County Engineer to put up post and cable? (Whittaker - haven't talked to him yet.) Whittaker will pursue this problem with the County, and cable will be pursued. B. DNR Acquisition_- Mottaz moved Resolution 81-54*: A RESOLUTION RECOMMENDING THAT THE MINNESOTA DEPARTMENT OF NATURAL RESOURCES CONDEMN LOT 6, DEMONTREVILLE HIGHLANDS, 5TH ADDITION, FOR A PUBLIC LAKE ACCESS. Morgan seconded. Discussion: ...Whittaker - Best route to go, according to DNR official, would be to have Kubicheck agree to friendly condemnation. Otherwise Commissioner of DNR would have to recommend "non -friendly" condemnation to Executive Committee (Governor, Attorney General, & State Auditor -included), and there's remote possibility for approval of condemnation. ( MbrSan - should provide only the minimum number of parking places that DNR standards allow. * attached LAKE ELMO CITY COUNCIL - 7/21/81 Page 3 ...Whittaker - If parking places designed according to their present ( standards (500 sq.ft. ea car -with -trailer and 200 sq.ft. ea car), they would cover less than a quarter of the lot if they used 23 cars. Might be wise to provide 10 additional places for fishermen. ...David Garloff (7856 Demont. Tr.) - As we've discussed before, we're talking about 13 spaces for vehicles w/trailers, knowing that some people are bringing their boats without a trailer, so we're actually providing parking for more than 13. We're expecting a certain configuration from DNR; we should make sure that we get that. If Council does anything outside that configuration, believes it'll be a disservice to the people in that area. ...Eder - We're aware of the concerns of area residents; We know once we get past the condemnation, we have to have a better sketch plan. Eder has said he wanted DNR to move on the plan; if not, we would think about closing the access... this fall. No further discussion; motion carried (5 ayes). KRAMER VARIANCE - Mottaz moved that a variance be granted to Evelyn Kramer to replace destroyed garage —including variance for sideyard setback, distance between proposed building and road, and acknowledging that it has no impact on drainage. Novak seconded; motion carried (5 ayes). Whittaker will notify east neighbor (Schwartz) of variance including sideyard setback, and hold permit until his approval. SEWER SYSTEM ON CITY LOT. LEMIRE - Council feels two options are open: (a) sell it or deed it with provision that drainfield/on-site sewer could be put on property by someone else, or (b) retain ownership and give neighbors easement. Jerry LeMire expressed willingness to buy land and give right to someone else to put drainfield-on property if necessary. Mottaz moved that Lake Elmo sell the property and maintain easements for additional drainfields. Morgan seconded. Mottaz withdrew motion. Mottax moved that item be tabled until next 'meeting pending more information —copies of plat, land value, asking price, liability to City, etc. Novak seconded; motion carried (5 ayes). INDUSTRIAL REVENUE BONDS, Brookfield II Project, Final Action) - Fraser moved passage of Resolution 81-55*: RESOLUTION AUTHORIZING THE ACQUISITION AND CONSTRUCTION OF A PROJECT UNDER THE MINNESOTA MUNICIPAL INDUSTRIAL DEVELOPMENT ACT AND THE SALE AND ISSUANCE OF A COMMERCIAL DEVELOPMENT REVENUE NOTE TO FINANCE THIS PROJECT, AND APPROVING AND AUTHORIZING THE EXECUTION OF VARIOUS DOCUMENTS. Novak seconded; motion carried (5 ayes). attached LAKE ELMO CITY COUNCIL - 7/21/81 Page 4 ENGINEER'S REPORT, Larry Bohrer A. Drainage Study, Old Village - Bohrer presented proposal for drainage study in Old Village area of Downs Lake Watershed. (REF: ltr dated 7/17/81 and attachments to Honorable Mayor & City Council, Lake Elmo, MN from Larry D. Bohrer, P.E..) ...Fraser - recommended that Bohrer mail referenced letter to people on the businessmen's committee; she'll supply addresses to Bohrer and he agreed to mail out letters w/information. ...Eder - Suggested that Council should have been advised of proposal prior to presentation. .Fraser - What are ways in which this study could be financed? ...Whittaker - They're trying to decide if they want a petition for this drainage project or to build a pond in the Brookfield Addition. Could prepare typical assessment procedures; also previously discussed was willingness of Brookfield people to pay at least as much as it would cost to put in their own pond. Raleigh is to come back to 8/4/81 meeting with response: B. ; Kroy - No response yet to letter with 4 or 5 considerations. Bohrer said the Watershed District had no concerns; they're willing to grant permit as proposed. ( C. Tablyn Park II - Lake Elmo is withholding escrow of $750 for some work in 1980 that they have yet to do (cleaning the sediments out of one pond and seed banks). Eder - They're story is that it has been cleared but settles back in. Letter is to be drafted. D. Olinger Survey Whittaker suggested he notify Olinger to put $125 in escrow before Larry proceed. MSA PROJECT CALENDAR - "Proposed Schedule, 1981 MSA Improvements, Lake Elmo, Minnesota" dated 7/21/81 was handed out to Councillors. ...Eder - Suggested Council make negotional 'review session with all property owners, not to negotiate value but to show people plan and seek their opinions. Frank Myers should be contacted before he goes to Arizona, at least to set up negotiations. ...Bohrer - By September 1, we'd be ready to know exact dimensions of the easement requirements and be prepared to start talking to the property owners at that time. ...Whittaker - Plans have to be approved by State before any negotiations take place. Council was in agreement with Engineer's timetable for improvements— i.e. project construction not to be started this fall, recommends preparing plans and specs, letting & receiving bids this fall, start early spring of 1982, and complete by mid summer. BREAK - 9:30 to 9:45 p.m. LAKE ELMO CITY COUNCIL - 7/21/81 Page 5 ARCHITECT, CITY OFFICE - Steve Erban of be Architects showed slides regarding past projects. Price estimate given by Mr. Erban was a maximum budget of $150,000 for a 3-phase, fixed fee contract: Phase I - $2,500 to work through preliminary design —design decisions, cost estimate, and "ghost working" drawings. Phase II - $4,000 after approval by Council to finalize drawings. Phase III - $,1,500, bid letting and supervision of construction. Costs could be reduced (basically in area of materials), and alternatives could be provided to that effect. Architectural plans would include landscaping, parking area, and use of two buildings. Eder said one other architectural firm would like to present their proposal; Council could meet briefly with other firm at 8/4/81 meeting. Whittaker will list parameters we're trying to meet for next meeting when decision will be made. OLD BUSINESS A. Sign Permit, Fairview Sign Company - Mottaz moved the sign be denied because it does not meet standards. Morgan seconded; motion carried (5 ayes). Written notice will be sent to Robert Hoster, Fairview Sign Co., by Whittaker. B. Huff'n Puff Liquor_License - Mottaz moved that the application for a beer license be granted. Morgan seconded; motion carried (5 ayes). Whittaker will check with fire department to make sure arrangements have been made for polka dancing in fire hall area. C. Cable, T:V. - 1. Joint Powers Agreement - Whittaker had asked attorney if it was okay if Council approved this subject to his recommenda- tion (same Joint Powers Agreement considered a year ago; no problem - with form of it). Fraser moved Resolution 81-56*: A RESOLUTION AUTHORIZING THE MAYOR AND CITY ADMINISTRATOR TO EXECUTE A JOINT POWERS AGREEMENT WHICH PROVIDES FOR MEMBERSHIP IN THE RAMSEY/WASHINGTON COUNTY CABLE COMMUNICA- TIONS COMMISSION. Eder seconded; motion carried (4 ayes, Novak nay). 2. Appoint Representatives - Whittaker provided names of .citizens who were interested in serving on commission. About 8 hours a month would be involved in committee time (next meeting is August 13, 7:30 p.m., White Bear Lake City Hall). Decisions will be taken up at 8/4/81 meeting so that representatives can attend 8/13 meeting. 3. Adopt Resolution - See C-1 above. Whittaker said the Resolution on delegates not required, * attached LAKE ELMO CITY COUNCIL - 7/21/81 Page 6 BUDGET PRIORITIES & CALENDAR - Whittaker provided Councillors with calendar, which members decided to read for next meeting. Morgan suggested Whittaker draft a preliminary proposed budget for discussion at next meeting. RICHERT RECOGNITION - Date of August 28 or 29 was confirmed with Council for Elmer Richert's retirement party at Ben's. COUNCIL REPORTS A. Councillor. Fraser - Personnel Committee met. Remaining jobs and salaries - the administrator is polishing them up to give to the Council. Next meeting we expect to deliver to you a package with those job descriptions.we thought should be changed with salary recommenda- tions for inclusion into the budget and, in addition, the job description for position of Foreman/Superintendent of the Maintenance Department. B. Councillor Morgan - Novak moved the closing hours for all parks be 10:00 p.m., and tennis courts 11:00 p.m. Mottaz seconded; motion carried (5 ayes). ADMINISTRATOR'S REPORT A. Council Booth at Huff'n Puff Days will be looked into next year. B. Licenses: Mottaz moved that the following licenses be granted: •,3.2 Beer License - Green Acres Recreation: 1) K-G Research, Inc., 6996 55th St. Nd'-,. St_. Paul, MN.55'1'09:_ (150 people 8/15/81, 11 a.m. - 11130 p.m.) 2) Deluxe Check Printers, 1020 W. Cty. Rd. F, St. Paul 55164 (300 people 8/1/81, 10 a.m. - 10 p.m.) 3) Burlington Northern Airomotive, Kevin.Swanson, 8810 55th-St. No., Lake Elmo (150-200 people 8/16/81, 12 noon - 6 p.m.) •-General._Contractors License: 1) Notch Building Systems,_660 Transfer Road, St. Paul 55114. 2) Schulz Builders, Inc., 4504 Wild Canyon Drive, Woodbury, MN 55125• • Excavating Contractor: Maynard McManus, 2168 65th St. E., Inver Grove Heights 55075• • Heating Installers License: Hovaldt Heating & Air Conditioning, 16141 22nd Street No., Stillwater 55082. ( Morgan seconded; motion carried (5 ayes) Discussed was liability of City in granting licenses to those without insurance; question -already being pursued. LAKE ELMO CITY COUNCIL - 7/21/81 Page 7 ( C. Report on Adiustments to Inspector's Salary - Lake Elmo will be paying two-thirds of the Inspector's pay for balance of 1981 (can be readjusted monthly if necessary as contract calls out). Eder moved that the share of salary be adjusted. Morgan seconded; motion carried (5 ayes). D. Letter from Cimmaron re: Surface Water Storage - To be put on 8/4/81 agenda. E. Recommendation Vallev Branch Watershed District - Whittaker wanted To know if there were any suggestions for Advisory Committee. Morgan suggested item be put in newsletter in order to get someone from central business district/residential area involved. F. Land Acquisition - Whittaker provided list and map of lands to be forfeited and auctioned off due to unpaid taxes; City is able to get land for nothing if used for public purposes. Morgan moved that Whittaker notify owners and users of properties in question that their land.is to be forfeited... due to unpaid taxes, and the City would be interested in acquiring land if they don't pay them. Mottaz seconded; motion carried (5 ayes). The meeting was adjourned at 10:22 p.m. Submitted by: Ilene Johnson, Acting Secretary. LIST OF RESOLUTIONS ADOPTED 81-53 Re: interfund audit adjustments 81-54 Re: DNR condemnation for public lake access 81-55 Re: industrial revenue bonds 81-56 Re: Joint Powers agreement/membership 'had' RESOLUTION CITY OF LAKE ELMO WASHINGTON COUNTY, MINNESOTA A RESOLUTION AUTHORIZING THE MAYOR AND CITY ADMINISTRATOR TO EXECUTE A JOINT POWERS AGREEMENT PROVIDING FOR MEMBER- SHIP OF THE CITY IN THE RAMSEY-WASHINGTON COUNTY CABLE COMMUNICATIONS COMMISSION. WHEREAS, the City of Lake Elmo has conducted various discussions with the affected agencies regarding the possibility of City membership in the proposed Ramsey -Washington County Cable Communications Commission; and WHEREAS, there appears to be significant benefit to the City which would result from City membership in this body; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lake Elmo as follows: 1. The Mayor and City Administrator are hereby authorized and directed to execute the Joint Powers Agreement which provides for membership of the City in the Ramsey -Washington County Cable Communications System. Adopted by the City Council this 21st day of July, 1981. Maynard L. Eder, Mayor ATTEST: Laurence Whittaker, City Administrator R-81-47 -" RESOLUTION CITY OF LAKE ELMO WAS14INGTON COUNTY, MINNESOTA A RESOLUTION GRANTING A VARIANCE FROM THE SIXTY PERCENT RULE FOR LOT AREA FOR RICHARD GROBNER. WHEREAS, Richard Grobner has made application to the City of Lake Elmo for a variance from the sixty percent rule for lot area on the following -described real estate located in the City of Lake Elmo, Washington County, Minnesota, legally described as follows, to -wit: All that part of Lot Four (4), Block 'Three (3) of Lake Elmo Park, in the Village of Lake Elmo, Minnesota, described as follows: Commence at the Northeast corner of Lot 4 of Block 3 of Lake Elmo Park as now -of record and on file in the Office of the Register of Deeds in and for the County of Washington, State of Minnesota.; thence South along the East lane of said Lot 4 for 366.2 feet to the point of beginning of this description; thence continuing on said East line of. Lot 4 for 153.9 feet; thence West at right angle for 125 feet; thence North at right angle for 153.9 feet; thence East at right angle for 125 feet to the point of beginning, and WHEREAS, it appears the above -described parcel was at the time of the application a separately described parcel of record; and WHEREAS, the parcel has two adequate drainfield sites and over one hundred percent (100%) of -the average lot size area in the neighborhood; and WHEREAS, said parcel. meets all the requirements of the City Code except the lot area requirement; and WHEREAS, there does not appear to be any reason relating to the public health, safety and welfare which would require a ( denial of said variance; and WHEREAS; £fie parcel in question would be unbuildable without the granting of the applied for variance; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lake Elmo as follows: 1. The application of Richard Grobner for a variance on the above -described parcel be, and the same hereby is, granted. Adopted by the City Council of the City of Lake Elmo this 7th day of July, 1981. ATTEST,., Laurence Whittaker, City Administrator. Maynard./L. Eder, Mayor -2- R-81-49 I t RESOLUTION CITY OF LAKE ELMO WASHINGTON COUNTY, MINNESOTA A RESOLUTION ORDERING THE IMPROVEMENT AND PREPARATION OF PLANS AND SPECIFICATIONS AND CALLING BIDS. WHEREAS, pursuant to Resolution of the City Council adopted May 1.9, 1981, a report has been prepared by the City Engineer with reference to the 1981. M.S.A. improvements and this report has been received by the Council; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lake Elmo as follows: 1. The 1981 M.S.A. improvements are hereby ordered as proposed in the City Council Resolution adopted May 19, 1981, as Resolution R-81-38. 2. The City Engineer is hereby designated Engineer for this improvement and he shall proceed to prepare plans and specifications for the making of such improvement with all deliberate speed. 3. The City Administrator shall, upon the receipt of the plans and specifications from the Engineer, prepare and cause to be inserted in the official City Newspaper and such other newspapers as he shall deem appropriate, an advertisement for bids upon the making of such improvement under such approved plans and specifications. Adopted by the City Council of the City of Lake Elmo this 7th day of July, 1981. Maynaro/ L. Eder, Mayor ATTEST: IA I Tt aurence Whittaker, City Administrator R81-51 RESOLUTION CITY OF LAKE ELMO ,00 WASHINGTON COUNTY, MINNESOTA A RESOLUTION CONFIRMING AN INCREASE OP $3,000 IN THE CON ICTMEN7.'IDt THE CITY OF LARE ELM TOWARDS THE PRE- LIMINARY FUND FOR PROJECT 1006 WHEREAS, the City of Lake Elmo authorized a petition for Valley Branch Watershed District Project 1006 by Resolution R80-28A; and, WHEREAS, the City of Lake Elmo limited its participation in the costs of the Preliminary Fund for said project to $6,000 in the petition for said project; and, WHEREAS, the Board of Managers of the Valley Branch Watershed District are confident the project will be ordered and find that an additional guar- antee of $3,000 may be necessary to insure completion of the preliminary studies and information to take this project to public hearing; and, WHEREAS, the City of Lake Elmo believes the project is necessary and the additional commitment is necessary to assure that the project is ordered; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LAID; EIS THAT, the City of Lake Elmo hereby agrees to an additional commitment of $3,000 for the Preliminary Fund for Valley Branch Watershed District Pro ect 1006, which brings the total commitment of the City of Lake Elmo to 19,000, should a project fail to be ordered. ADOPTED, this the 7th day of July, 1981, by the City Council of the City of Lake Elmo, Washington County, Minnesota. SIGNED: ATTEST: La ence E. Whittaker, City Achnnistrator R 81-53 R E S O L U T I O N CITY OF LAKE ELMO WASHINGTON COUNTY, MINNESOTA A RESOLUTION ORDERING INTERFUND AUDIT ADJUSTMENTS WHEREAS, the firm of Moen and Penttila, Ltd., Certified Public Accountants, examined the financial statements of the City of Lake Elmo for the year ending December 31, 1980; and WHEREAS, the Council of the City of Lake Elmo accepted the resulting audit report submitted by Moen and Penttila, Ltd.; and WHEREAS, Moen and Penttila, Ltd. made certain recommendations in their audit report: NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Lake Elmo, County of Washington, State of Minnesota, authorized the following Interfund Audit Adjustments: FUND GENERAL FUND PARK - DEBT SERVICE FUND WATER IMPROVEMENT BOND FUND FLOOD ASSESSMENTS FUND EQUIPMENT CERTIFICATE FUND CAPITAL PROJECTS FUND Totals ADOPTED this the 21st day of July, 1981 ATTEST: au( rr l�1,Q/41>( ( C� U Laurence E. Whittaker City Administrator DUE FROM OTHER FUNDS $ 62,050.37 18,386.06 1,351.09 32,368.24 43,573.40 DUE TO OTHER FUNDS $ 95,678.79 37,185.17 24,865.20 $ 157,729.16 $ 157,729.16 SIGNED: Mama&Mayna L. Eder, Mayor P R81-54 RESOLUTION CITY OF LAKE ELM WASHINGTON COUNTY, MINNESOTA A RESOLUTION REQUESTING CONDEMNATION OF LOT 6, BLOCK 1 DEMONTREVILLE HIGHLANDS 5TH ADDITION BY THE MINNESOTA DEPARTMENT OF NATURAL RESOURCES FOR A PUBLIC LAIT ACCESS AND PARKING AREA WHEREAS, it is the stated policy of the DNR to acquire a public access to Lake Demontreville; and the Lake Demontreville access has been on the Metropolitan Council list of accesses for immediate acquisition and development; and WHEREAS, the public is taking access to Lake Demontreville over an inadequate City access, which has created traffic hazards and extreme nuisances to adjacent property owners and over private property all along the westerly shore of Lake Demontreville causing damage to the shore, the private property, and an extreme nuisance and safety hazard; and, WHEREAS, the City of Lake Elmo and the Minnesota Department of Natural Resources (DNR) have been negotiating for access to Lake Demontreville for over five years; and, WHEREAS, the last remaining parcel of vacant land on or near Lake Demontreville is now platted and under contract for new housing; and, WHEREAS, despite City, DNR, and public pressure, the DNR could not reach agreement with the owner of Lot 6, Block 1, Demontreville Highlands, 5th. Addition, on a purchase price; and, WHEREAS, the present owner has stated his intention to develop this lot in the immediate future; and, WHEREAS, the DNR already owns land across the street from the proposed parking area which is suitable for the public access but not large enough for public parking; and, WHEREAS, the rearing pond already acquired by the DNR is adjacent to this property also; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LAKE ELMO THAT, the City of Lake Elmo hereby requests that the Minnesota Department of Natural Resources employ the power of eminent domain, specifically authorized by the State Legislature for the purpose of acquiring lake accesses, to acquire Lot 6, Block 1, Demontreville Highlands, 5th. Addition for a public lake access parking area for R81-54 Lake Demont-reville in the City of Lake Elmo. ADOPTED, this the 21st., day of. July, 1981, by the City Council, City of Lake E1mo,Washington County, Minnesota SIGNED Maynar, er, Mayor AtTst: W LA -A --to-. Ll _L- Laurence Whittaker City Administrator C CERTIFICATION OF MINUTES RELATING TO $400,000 COMMERCIAL DEVELOPMENT REVENUE NOTE (Brookfield II Project) Issuer: City of Lake Elmo, Minnesota Governing Body: City Council Kind, date, time and place of meeting: A regular meeting, held on �Ju�l.�.. ., 21 1981, at 7:00 o'clock P.M., at the City Hall Members present: Mayor Eder, Councilmembers: Dave Morgan, Laura Fraser, Jess Mottaz, Jeannie Novak Members absent: None Documents Attached: Minutes of said meeting (pages): RESOLUTION NO. 81-55 RESOLUTION AUTHORIZING THE ACQUISITION AND CONSTRUCTION OF A PROJECT UNDER THE MINNESOTA MUNICIPAL INDUSTRIAL DEVELOPMENT ACT AND THE SALE AND ISSUANCE OF A COMMERCIAL DEVELOPMENT REVENUE NOTE TO FINANCE THE PROJECT, AND APPROVING AND AUTHORIZING THE EXECUTION OF VARIOUS DOCUMENTS I, the undersigned, being the duly qualified and acting recording officer of the public corporation issuing the bonds referred to in the title of -this certificate, certify that the documents attached hereto, as described above, have been carefully compared with the original records of the corporation in my legal custody, from which they have been transcribed; that the documents are a correct and complete transcript of the minutes of a meeting of the governing body of the corporation, and correct and complete copies of all resolutions and other actions taken of all documents approved by the governing body at the meeting, insofar as they relate to said bonds; that the meeting was duly held by the governing body at the time and place and was attended throughout by the members indicated above, pursuant to call and notice given as required by law; and that Resolution No. 81-55 has not of this date been amended or repealed. WITNESS my hand officially as such recording officer this 23 day of July , 1981. Laurence E. Whittaker City Administrator Member Laura Fraser introduced the following resolution and moved its adoption: RESOLUTION No. 81-55 RESOLUTION AUTHORIZING THE ACQUISITION AND CONSTRUCTION OF A PROJECT UNDER THE MINNESOTA MUNICIPAL INDUSTRIAL DEVELOP- MENT ACT AND THE SALE AND ISSUANCE OF A COMMERCIAL DEVELOPMENT REVENUE NOTE TO FINANCE THE PROJECT, AND APPROVING AND AUTHORIZING THE EXECUTION OF VARIOUS DOCUMENTS BE IT RESOLVED by the City Council of the City of Lake Elmo, Minnesota (the City), as follows: 1. It has been proposed that the City issue its Commercial Development Revenue Note (Brookfield II Project) (the Note), in the principal amount of $400,000, to finance the cost of acquiring land and constructing and equipping a facility thereon for use as a commercial office facility in the City (the Project), on behalf of Lake Elmo Associates, Ltd., a Minnesota limited partnership (the Partnership). This Council gave preliminary approval to the proposal by resolution duly adopted May 5, 1981. It is proposed that the City issue the Note and loan the proceeds thereof to the Partnership to provide funds to finance the costs of the Project. The Partnership will -agree to make payments sufficient to pay the principal of and interest on the Note. Pursuant to the preliminary resolution and to document this financing, the following documents relating to the Project have been submitted to the Council and 'are now, or shall be placed, on file in the office of -the City Administrator: (a) a Loan Agreement (the Loan Agreement), proposed to be made and entered into between the City and the Partner- ship; (b) an Assignment of Loan Agreement (the Assignment), proposed to be made from the City to the First National Bank of Stillwater (the Lender); (c) a Construction Loan Agreement (the Construction Loan Agreement), proposed to be made and entered into among the City, the Lender and the Partnership; (d) a combination Mortgage, Security Agreement and Fixture Financing Statement (the Mortgage), proposed to be made and entered into between the 'Partnership and the Lender; and (e) a Form of Note. 2. It is hereby found, determined and declared that: (a) the Project to be financed constitutes a "project" as defined in Minnesota Statutes, Section 474.02, Subdivision la; (b) the purpose of the Project is, and the effect thereof will be, (i) to encourage the development of economically sound commerce in the City, (ii) to increase the tax base of the City and overlapping taxing jurisdictions, and (iii) to provide additional employment opportunities for residents of the City and surrounding areas; (c) the Project has been approved by the Commissioner of Securities of the State of Minnesota as tending to further the purposes and policies of the Minnesota Municipal Industrial Development Act (the Act); (d) it is desirable that the Partnership be authorized, in accordance with the .provisions of Minnesota Statutes, Section 474.03(7), and subject to the terms and conditions set forth in the Construction Loan Agreement and Loan Agreement, which terms and conditions the City determines to be necessary, desirable and proper, to provide for the construction of the Project by such means as shall be available to the Partnership and in the manner determined by the Partnership, and with or without advertisement for bids as required for the construction and acquisition of other municipal facilities; (e) it is desirable that the Note in the amount of $400,000 be issued by the City to the Lender, and that the City's interest in the Loan Agreement and the payments receiv- able pursuant thereto be pledged to the Lender pursuant to the Assignment as security for the payment of principal of and interest on the Note; (f) the payments required by the Loan Agreement are fixed, and required to be revised from time to time as necessary, so as to produce income and revenue sufficient to provide for prompt payment of the principal of and interest on the Note, and the Loan Agreement and Mortgage also provide that the Partnership is required to pay all expenses of the operation and maintenance of the Project including, but without limita- tion, adequate property damage insurance thereon and insurance against all liability for injury to persons or property arising from the operation --hereof, and all taxes and special assessments levied upon or with respect to the Project and payable during the term of the Loan Agreement; and (g) under the provisions of Minnesota Statutes, Section 474.10, and as provided in the Loan Agreement and Note, the Note is not to be payable from nor charged upon any funds other than the revenue pledged to the payment thereof; the City is not subject to any liability thereon; no holder of the Note shall ever have the right to compel any exercise of the taxing powers of the City to pay the Note or the interest thereon, nor to enforce payment thereof against any property of the City except the Project mortgaged by the Note; the Note shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the City except the Project; the Note shall recite that it is payable solely from the revenue pledged to the payment thereof; and the Note shall not constitute a debt of the City within the meaning of any constitutional or statutory limitation. 3. The form of Loan Agreement, Assignment, Construc- tion Loan Agreement and Note referred to in paragraph 1 hereof are approved. Each such document, with such variations, insertions and additions as the City Attorney may hereafter deem appropriate, are directed to be executed in the name and on behalf of the City by the Mayor and City Administrator. In the absence or disability of the Mayor any of the documents authorized by this Council to be executed shall be executed by the Acting Mayor and in the absence of the City Administrator by an officer of the City who in the opinion of the City Attorney has authority to execute such documents. Copies of all of the documents shall be delivered, filed and recorded as provided therein. The form of Mortgage is also approved and the issuance of the Note is hereby conditioned upon execution and delivery of the Mortgage by the Partnership. 4. In anticipation of the collection of revenues of the Project, the City shall proceed forthwith to issue the Note in the principal amount of $400,000 to the Lender; which is hereby authorized to disburse the proceeds to the parties entitled thereto in payment of or reimbursement for costs of the Project in accordance with the terms of the Construction Loan Agreement and Loan Agreement. 5. The Mayor, City Administrator and other officers of the City are authorized and directed to prepare and furnish to the Lender and bond counsel certified copies of all proceed- ings and records of the City relating to the Note, and such other affidavits and certificates as may be required by bond counsel, and approved by the City Attorney, to show the facts relating to the legality and marketability of. the Note. Approved: ' P• � 'L� Mayor At to s t : (Ra,vpW P City Administrator The foregoing resolution was duly seconded by r Member Jeannie Novak , and upon vote being t taken thereon, the following voted in favor: Mayor Maynard Eder, Councilmembers: Dave Morgan, Laura Fraser, Jess Mottaz, Jeannie Novak and the following voted against the same: None whereupon the resolution was declared duly passed and adopted, and was signed by the Mayor which signature was attested by the City Administrator. CLAIMS TO BE APPROVED AT JULY 21, 1981 COUNCIL MEETING 81561 State Treasurer - Building Surcharge $ 901.47 81562 Comnissioner of Revenue - Minn. Sales Tax 31.64 81563 G. A. Meyer Mercantile - General $ 98.73 Park 87.33 186.06 81564 Lillie Suburban - Foreman ad 24.64 81565 St. Paul Dispatch - Foreman ad 57.60 81566 Metro Waste Control Commission - monthly charge 125.92 81567 Mollie Hedges - 7/14/81 newsletter 175.00 81568 Moen & Penttila - 10% of audit withheld 609.00 81569 City of North St. Paul - Animal Vehicle charge 125.00 81570 Lake Elmo Repair - Truck parts $66.36 Labor 20.00 86.36 81571 First National Bank of St. Paul - Helma Bond- 22,425.00 81572 Pegboard Accounting Controls - checks 129.87 81573 Capitol Electronics - Fire Dep't radio repair 54.48 81574 Lampert Building Center - Park repair picnic tables 9.40 81575 Washington County - 3rd Quarter Police Contract 14,997.50 81576 Lawson, Raleigh & Marshall - General $ 1,470.00 Pass Thru 18.00 1,488.00 81577 Moelter Construction - Gravel 86.12 81578 Vern's G.T.C. - Truck Battery 68.65 81579 International Harvester - Truck Parts 379.39 81580 Kern's North Star 115.09 81581 Brockman Motor Sales - Fire Dept truck repair 124.00 81582 Washington County Planning - Bldg. Insp.- L.E. $150.00 Mahto. 120.00 270.00 81583 A.M.M. - Levy Limit Seminar - 4 people @ $5.00 20.00 81584 Laurence Whittaker - Conference Balance 51.50 8158je thru 815967 July 24th payroll 4,500.00 :r Total $ 47,041.69