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City Council Regular Meeting Minutes 05 June 8, 2004 Page 5 1 8. Prepayment can occur at any time without penalty 2 9. Full repayment is expected in spring of 2007 when development is finalized. 3 However, the City/HRA can repay at anytime 4 10. Debt is General Obligation to the City 5 11. The City/HRA can not utilize any other Fannie Mae funds to repay the loan 6 12. All legal fees of Fannie Mae to be paid by the City/HRA at closing(whether the 7 loan closes or not). Legal fees generally are between$2,500 and $5,000 8 13. City/HRA has to pay origination fee of 100 basis points at closing($33,500) 9 14.. City/HRA is required to submit financial statements annually for Fannie Mae 10 review until the loan is repaid and submit the annual TIF reports required by the 11 State of Minnesota. 12 13 Ms. Kvilvang stated it should be noted that all out of pocket expenses incurred by the City/IRA 14 will be reimbursed by the Developer and/or through Tax Increment (TIF). 15 16 Councilmember Stille asked if this had become a commonplace program. Ms. Kvilvang replied 17 this was a commonplace program that Fannie Mae had started to aid developers. 18 19 Motion by Councilmember Thuesen, seconded by Councilmember Horst, to adopt Resolution 20 04-047—Authorizing Execution of Loan Documents with Fannie Mae for$3,350,000 Loan. 21 22 Motion carried unanimously. 23 24 C. Consider Ordinance 2004-002; re Charitable Gambling. Ord Reading) 25 City Attorney Gilligan reviewed with the Council an amendment to the charitable gambling 26 ordinance based on the fact that the current ordinance allows charitable gambling to on-sale 27 municipals only. He indicated that with the closing of the Stonehouse, the City no longer owned 28 an on-sale municipal. With Spectators located where the Stonehouse sued to be,he felt it was 29 important to get the ordinance changed prior to the opening of the restaurant. 30 31 City Attorney Gilligan indicated that this was the 3rd reading with the 1St and 2nd readings taking 32 place on May 11 and 25, 2004. He added that he also passed the ordinance onto some of the 33 Sports Boosters that he has been working with on the charitable gambling license for Spectators. 34 He stated that this is the final reading of this ordinance and that all of the suggestion and 35 concerns from previous meeting have been incorporated into this final ordinance. 36 37 City Attorney Gilligan reviewed his May 19, 2004 memorandum reading: 38 39 At its meeting on May 11th the City Council gave first recording to an ordinance amending 40 Section 535.02 to permit charitable gambling to be conducted in restaurants in the City holding 41 an on-sale liquor license. At that meeting the City had various questions concerning the City's 42 authority to regulate this activity. 43 44 Under Minnesota Statutes, Section 349.213, the City has the authority to adopt more stringent 45 regulation of lawful gambling than provided by Minnesota law, including the prohibition of 46 lawful gambling. The City may not require that an organization licensed by the Minnesota 47 Gambling Control Board obtain a license or permit from the City as a condition for it to conduct