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City Council Regular Meeting Minutes September 9, 1997 • Page 4 1 Mayor Ranallo stated that due to the anticipated request for direct assistance to the property 2 owners whose property was damaged as a result of the July storms, the City has asked for a 3 legal opinion from the City Attorney as well as the League of Minnesota Cities as to whether 4 or not the City can use public money to, in effect, donate funds to voluntarily reimburse the 5 property owners for their damages. 6 It is the opinion of the City Attorney that the City cannot legally make such an.expenditure. 7 A valid municipal expenditure must be for a public purpose, which means it must: (1) 8 benefit the community as a whole; (2) be directly related to the functions of government; 9 - and the City Legal Counsel feels there does not appear to be any legal authority for the City 10 to give money to citizens who have suffered property damage resulting-from the July- storms. 11 In terms of buying homes, the City can buy and sell real estate, providing the City has a 12 public purpose for the property such as a ponding area or a park, etc. The purchase of 13 property may be one of the Task Force's long term solutions. 14 Mrs. Lockrem asked the legal opinion in regard to the City's response in terms of 15 condemnation. She stated the property is not livable. FEMA has determined it is not livable 16 and the SBA has determined that the structural damage is more than they would give funds to 17 fix. She stated the City is the only one authorized to condemn the property. She felt this was 18 a different issue than asking the City to give her money. 09 City Attorney Jerry Gilligan stated he believed a condemnation of the property is basically a 20 purchase of the property. It is not different. The City has the authority to purchase a 21 property directly or through a condemnation process. 22 Mrs. Lockrem again stated that if the City were to condemn the property (if the City would 23 say that they have to involuntarily leave the property) the SBA could possibly provide 24 relocation funding. She stated there is a difference between giving people public money that 25 is not for the benefit of the general public and condemning a property. 26 Mayor Ranallo asked the City Attorney if he could investigate this and his time frame for 27 doing so. 28 Mr. Gilligan stated he would research and report back to the City within a week. 29 Mrs. Lockrem requested a copy of the statement made by Mayor Ranallo with regard to the 30 legal opinion of reimbursement to property owners. City Manager distributed copies to the 31 audience. 32 Councilmember Marks noted that when the City had condemned property in the past it was 33 for redevelopment purposes. There is nothing like that proposed for this property. Ted Lockrem, 2716 St. Anthony Boulevard, suggested his property could be purchased now 5 for future ponding use. He also stated that he had sent letters to Senators, Representatives,