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HomeMy WebLinkAboutCC MINUTES 03272012I 2 3 4 5 6 7 8 9 10 I I 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 CITY OF ST. ANTHONY CITY COUNCIL REGULAR MEETING MINUTES MARCH 27, 2012 CALL TO ORDER. Mayor Faust called the meeting to order at 7:00 p.m. PLEDGE OF ALLEGIANCE. Mayor Faust invited the Council and audience to join him in the Pledge of Allegiance. ROLLCALL. Present: Absent: Also Present: Guest: Mayor Faust; Councilmembers Gray, Jenson, Roth, and Stille. None. City Manager Mark Casey, City Attorney Jay Lindgren, Police Chief John Ohl, Liquor Operations Manager Mike Larson, and Public Works Director Jay Hartman. Stacie Kvilvang (Ehlers & Associates). CONSIDERATION, DISCUSSION, AND POSSIBLE ACTION ON ALL OF THE FOLLOWING ITEMS. I. APPROVAL OF MARCH 27, 2012, CITY COUNCIL MEETING AGENDA. Motion by Councilmember Gray, seconded by Counc ilmember Jenson, to approve the City Council Meeting Agenda of March 27, 2012. Motion carried unanimously. II. PROCLAMATIONS AND RECOGNITIONS. 33 None. 34 35 III. CONSENT AGENDA. 36 37 38 39 40 41 42 43 44 45 46 47 A. Consider March \3, 2012, Counci l meeting minutes; B. Consider licenses and permits; C . Consider payment of claims; and D. Consider Resolution 12-038 ; Requesting an Advance from the Municipal State Aid Street Fund for Calendar Year 2012 for the City ofSt. Anthony Village, Minnesota. Motion by Councilmember Jenson, seconded by Councilmember Gray, to approve the Consent Agenda items. Motion carried unanimously. 48 IV. APPEAL HEARING. 49 I 2 3 4 5 6 7 8 9 10 I I 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 City Council Regular Meeting Minutes March 27 ,2012 Page 2 A. Revocation of Cigarette & Tobacco License for Flamezz Hookah Lounge located at 3805 Stinson Blvd. Mayor Faust opened the public hearing at 7:05 p.m. Police Chief Ohl presented a timeline of enforcement actions related to the April 26 , 20 II, adoption by the City Council of an Ordinance disallowing sampling. He advised that throughout 20 II and 2012 , the Police Department conducted multiple compliance checks at Flamezz Hookah Lounge. He stated that on June 2, 20 II , and June 10 , 20 II , officers found individuals smoking fTom hookahs and Mr. Kiblawi was charged by formal complaint and citation. He indicated on December 8, 20 II , the City received a favorable ruling from Hennepin County that the City's Ordinance was in compliance with State law and on December 15 ,2011 , another compliance check found individuals smoking from hookah pipes inside the business. He advised that following a compliance check on February 13 ,2012, Mr. Kiblawi was charged with an Ordinance violation and on February 25 , 2012 , Mr. Kiblawi was charged with a violation of the State 's Clean Indoor Air Act. He added that on March 10,2012, a plainclothes check by officers for one hour found people smoking from hookahs including refilling of the hookah pipes . Mr . Eric Brever, 2812 Anthony Lane South , appeared before the City Council and stated he represents Flamezz Hookah and Mr . Kiblawi. He stated they oppose the City 's recommended motion and urged the City Council to continue his client's license. He explained this issue began in February 2010 when his client met with City staff to explain he wanted to open a hookah lounge ; durin g that meeting, they discussed the Clean fndoor Air Act as well as sampling and ultimately , the City gave its okay as other cities have allowed sampling and it is permitted under the Clean Indoor Air Act. He indicated his client installed a special HV AC ventilation system to mitigate the second hand smoke as required by City staff and in late May, a Certificate of Occupancy was issued followed by a tobacco license on June 24, 20 I O. He stated that the June 22 ,2010 City Council agenda was the first mention his client had that there was an issue with the indoor smoking, after he had spent considerable money and after his license was issued. He stated in early 20 II, the City provided notice of an amendment to the tobacco ordinance, which Flamezz Hookah opposed at three separate readings, including his client 's belief that the Ordinance may not be upheld or enforceable. He stated that the 20 II charges were tried last week and his client was acquitted by a jury of the misdemeanor violations of the City 's tobacco ordinance. He indicated they have long protested the City 's position on the ordinance and felt the ordinances were targeted to eliminate his client's business. He stated that his client retains all legal rights, including attorney 's fees , based on the City Council's action this evening, and urged the City Council to reissue the tobacco license to his client. Ms. Rosalie Hall , 3850 Stinson Boulevard, appeared before the City Council and stated she lives across the street from Flamezz Hookah. She expressed frustration about the amOlmt of noise coming from the business at I :30 or 2:00 a.m. when a number of customers come out of the building and use their beeping remote controls to unlock their cars, as well as the amount of talking and laughing. She stated she lives in a senior building and they cannot have their windows open in the summer because of all the noise. She indicated the Police Department has been great but frequently by the time the Police arrive, the customers have left the parking lot. She indicated a lot of their residents are disabled and they are afraid to call the Police because City Council Regular Meeting Minutes March 27 , 2012 Page 3 I they fear that someone at the Flamezz Hookah will find out they called the Police and might 2 damage their cars in the parking lot. She recited a portion of the City Ordinance regarding 3 obnoxious noises and noted it is a violation to operate any device between the hours of 8:00 p .m. 4 and 7 :30 a.m. in a manner so as to be audible at the property line . She indicated this was a 5 nuisance all last summer and as neighbors, they deserve the r ight to be considered. She also 6 expressed concern about the young people who are smoking in the hookah lounge , which is 7 apparently worse than smoking cigarettes. 8 9 Mayor Faust closed the public hearing at 7:24 p.m. \0 II City Attorney Lindgren reminded the City Council that its role in a public hearing is to determine 12 whether violations of the City's tobacco license ordinance has occurred. He stated it is not a 13 question of whether these are criminal actions because this is a license hearing and the City 14 Council needs to be reasonable and deliberate. He opined that the Criminal Court decision is not 15 relevant to this discussion because the criminal proceeding involved a question of whether 16 something occurred beyond a reasonable doubt. He summarized the evidence, which includes 17 the Police Chiefs report of violations as well as incident reports showing smoking in the 18 business, not just sampling. He stated there has been a clear indication of tobacco use and 19 specifically pointed out the City's license as granted requires compliance with the State 's Clean 20 Indoor Air Act and the City Council needs to consider whether a violation of that law has 21 occurred. He noted the Clean Indoor Air Act is a law even broader than the City 's Ordinance 22 and pertains to any smoking. He reminded the City Council that this is an annual license 23 designed to be renewed on an annual basis and any changes to the standards are known to any 24 licensee. He stated the City Council's options include adopting a motion revoking the license 25 immediately or adopting a motion to extend the license to its full duration of March 15,2012. 26 27 Mayor Faust asked if State statute allows the City to be more stringent. 28 29 City Attorney Lindgren replied in the affirmative and stated the statute allows cities to adopt a 30 more stringent standard specifically with regard to prohibiting sampling of tobacco products, 31 which the City did in 20 II. 32 33 Councilmember Roth asked if the statute defines sampling. 34 35 City Attorney Lindgren advised the statute does not specifically define sampling, which is why 36 the Police Chiefs report includes examples of incident reports where tobacco was being sampled 37 for extended durations of time. 38 39 Councilmember Stille requested confirmation that the City's ability to be more stringent was 40 upheld in the court case in December. 41 42 City Attorney Lindgren replied this was correct and the question of whether the City had the 43 authority to adopt its Ordinance was upheld by the Court . He noted the recent acquittal ofMr. 44 Kiblawi was related to criminal charges brought for alleged violations of the City'S Ordinance 45 and the Court found him not guilty beyond a reasonable doubt. He explained that the criminal City Council Regular Meeting Minutes March 27, 2012 I 2 3 4 5 6 7 8 9 10 II 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Page 4 27 V. 28 29 30 31 VI. 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 action is separate from the actions taken to determine whether the City's Ordinance was proper and the City Council has a responsibility to act in accordance with its Ordinance. Motion by Councilmember Stille, seconded by Council member Jenson , to revoke the cigarette and tobacco license for Flamezz Hookah Lounge located at 3805 Stinson Boulevard, effective 2400 hours (midnight) on March 27, 2012. Councilmember Stille stated the statute indicates that lighting tobacco products is allowed for the specific purpose of sampling and the Flamezz Hookah business model is based on smoking. He noted the statute allows sampling which represents the crux of why the City changed its Ordinance and tonight's action represents the City 's ability to act on that Ordinance. He added there has been some rhetoric about the value of the improvements made to the building and the City 'S building pennit application indicates the value of these improvements was about l/61h of the amount claimed. Councilmember Roth stated he has struggled with the definition of sampling and he did not understand how a business model could be created around something you sample. He indicated in his opinion, this is indoor smoking and does not represent sampling. Mayor Faust stated the City Council does not take lightly revoking someone 's license. He indicated revisions to the City 's Ordinance began last April so this has not been sprung on anyone without advance notice. He added this is not an easy decision but the City Council is charged with the betterment of the community. Motion carried nnanimously. REPORTS FROM COMMISSION AND STAFF. None. GENERAL BUSINESS OF COUNCIL. A . Resolution 12-039; Approve a Re~uest to Keep No More Than Five Female Chickens in an R-I Zoning District at 3013 2911 Avenue NE. Mark City, City Manager, presenting. City Manager Casey presented Mr. Eric Moore 's request to keep no more than five female chickens. Mr. Eric Moore , 3013 291h Avenue NE, appeared before the City Council and stated the City recently approved his neighbor 'S request to keep female chickens. He stated his nine-year-old daughter has expressed a desire to keep chickens and they see this as a great opportunity to teach responsibility to their children as well as understanding the science of keeping chickens. Miss Trinity Moore appeared before the City Council and stated she would be thankful if the City Council approved their request to have chickens. I 2 3 4 5 6 7 8 9 10 II 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 City Council Regular Meeting Minutes March 27, 2012 Page 5 Motion by Councilmember Gray, seconded by Councilmember Roth , to approve Resolution 12- 039; Approve a Request to Keep No More Than Five Female Chickens in an R-I Zoning District at 3013 29th Avenue NE. Councilmember Stille noted that the City Council will be discussing this issue in the future and there may additional rules imposed as part of the City's current Ordinance to provide additional structure to this process . Motion carried unanimously. B. Resolution 12-040; Authorizing Issuance. Awarding Sale, Prescribing the Form and Details and Providing for the Payment of $9.660.000 General Obligation Bonds. Series 2012A . Stacie Kvilvang, Ehlers & Associates. presenting. Ms . Kvilvang explained the City previously authorized the sale of$9,660,000 in General Obligation Bonds and the sale was held today . She noted the bond size was reduced to $9 ,495,000 and includes refunding the City's 2003 HRA Leave Revenue Bonds, refunding the City 's 2006A and 2007A bonds, and new money for the City's 2012 road reconstruction project. She presented the sales report indicating Baird as the lowest responsible bidder with a true interest cost of 1.93%. She pointed out the City 's overall savings is over $700,000 over the life of the bonds representing a present value of$637,000 and annual savings of$66,000 over the next 10-12 years for the City. She added that a rating call with S&P upheld the City's AA rating. Motion by Councilmember Stille, seconded by Councilmember Roth, to approve Resolution 12- 040; Authorizing Issuance, Awarding Sale, Prescribing the Form and Details and Providing for the Payment of$9,495,000 General Obligation Bonds, Series 2012A. Motion carried unanimously. C. St. Anthony Liquor Operations Annual Report. Mike Larson, Liquor Operations Manager. presenting. Liquor Operations Manager Larson presented the City 'S Liquor Operations 20 II annual report. He stated the City owns two off-sale liquor stores and the municipal liquor operation's profits are used to reduce the property tax levy, provide funds for special projects, and provide funds for equipment purchases . He noted the liquor operation successfully passed all compliance checks performed in 20 II. He reviewed 20 II sales noting an increase in sales of $167,873 or 2.46% to $6.9 million , representing a net profit of$471 ,247 for 2011. He discussed operating expenses and stated the City's 2010 liquor operations were once again below the Statewide average of 17.1 %. He explained the tum ratio represents how many times inventory is turned over and the City'S tum ratio was 8.12 times per year compared to a typical tum ratio of six to eight times per year. He stated that labor costs typically run 10% and the City 's labor costs for its liquor operations was 9%. He indicated that sales per square foot were $764 compared to an average of $600 per square foot and the City ranked 7th in the State for total sales and 6 th in the metro for net profits. He stated that 92% of the customer survey results rated employee relations, store I 2 3 4 5 6 7 8 9 10 II 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 City Council Regular Meeting Minutes March 27, 2012 Page 6 VII. appearance, and product selection as excellent or good overall and 80% of people are aware that the liquor operations profits reduce taxes. Mayor Faust expressed the City Council's thanks to Liquor Operations Manager Larson and all of the employees for their efforts. Councilmember Stille congratulated Liquor Operations Manager Larson on the favorable operating expense ratio . D. St. Anthony Public Works Annual Report. Jay Hartman, Public Works Director, presenting . Public Works Director Hartman presented the Public Works 2011 annual report and reviewed the department's mission statement and organizational structure. He advised the City's streets were swept II times in 20 II, approximately 100 tons of blacktop was used for asphalt repair, and there were 12 snow plowing events in 20 II. He noted that no sand was used in the City for plowing operations in 2011. He stated the Parks Division is responsible for maintenance and repair of City parks and storm water retention ponds and noted that 20 II was the first time the City was unable to open its warming houses due to the warm weather. He reviewed the Water/Sewer Division 2011 activities and stated the City purchased and installed a computer in the utility truck to aid employees with maps when responding to sewer and main breaks. He explained the Vehicle Maintenance Division provides the necessary vehicle maintenance and repair of all in-house vehicles and also supports the Police Department and Liquor divisions . He reviewed the training of employees and stated they worked with MWMO to provide a seminar for ice control as well as a turf maintenance seminar. He discussed the 2011 street and utility improvement program and noted the City's goal is to complete all City streets in 2024. He also reviewed (he lui i and LOil Slree( recunslfudiurt prujt:d.s as wdi (t~ liu; '2v12 LED l1cJI;~i.liaJl safety enhancements, which include installation of a flashing stop sign at 29th Avenue and Crestview and 33'd Avenue and Rankin Road. He stated that in-pavement crosswalks are planned for 34th Avenue and Silver Lake Road and Kenzie Terrace at Pentagon Drive. He advised the City was recognized at the League conference as a Green Step 2 City and the City will be working toward Step 3 in 2012. He stated in 2012, the City will continue working on the building energy audit to improve the efficiency of public buildings , as well as the annual street maintenance and construction, providing funding for the Lowry treatment system for the storm sewer that leaves the City, Silver Lake TMDL phosphorus reduction plan, and dredging projects. He outlined the 2012 upcoming events and noted further information will be included in the newsletter. He stated that the Public Works department was able to achieve all 20 II goals within each division and attributed the success of the department to the employees. Mayor Faust expressed the City Council's thanks to the Public Works Department for their servIce. REPORTS FROM CITY MANAGER AND COUNCIL MEMBERS. City Manager Casey -No report . City Council Regular Meeting Minutes March 27, 2012 Page 7 I Councilmember Stille reported on his attendance at the March 20th meeting with the Planning 2 Commission where he presented the City Council goals in his role as liaison to the Planning 3 Commission, followed by ajoint City CouncillPlanning Commission meeting. He commended 4 the Planning Commissioners for a difficult meeting on March 20th and wanted to publicly thank 5 them. 6 7 Councilmember Gray reported on his attendance at a St. Anthony Lions event on March 24th 8 which included a tour of the Lions eye clinic at the University of Minnesota. 9 10 Councilmember Jenson reported on his attendance at the March 26th St. Anthony Historical II Society meeting and indicated that another book is being published to supplement the History of 12 St. Anthony book and will feature stories from WWlI veterans. He asked if anyone has stories 13 they would like to share, they should contact the historical society. He also reported on his 14 attendance at the March 20th joint City CouncillPlanning Commission meeting. 15 16 Councilmember Roth reported on his ride-along with Police Officer Jim South on Friday 17 evening, March 23'd He thanked ChiefOhl and Officer South for their professionalism. 18 19 Mayor Faust reported on his attendance at the following: 20 • March 20th presentation to the Chamber of Commerce to provide a City update and goals 21 presentation. 22 • March 20th joint City COlmcillPlanning Commission meeting. 23 • March 22nd local government legislative conference that included Gov . Dayton and 24 leadership from the House. He stated he also had an opportunity to speak to several 25 legislators and senators. 26 • March 23'd meeting at the University hosted by the Alliance for Sustainability. 27 28 VIII. COMMUNITY FORUM. 29 30 Mayor Faust invited residents to come forward at this time and address the Council on items that 31 are not on the regular agenda. 32 33 Ferdinand Peters, 842 Raymond Avenue, St. Paul, appeared before the City Council and stated 34 he represents Abu Huraira Islamic Center, the applicant that came before the City for a 35 conditional use permit in February . He stated they followed the City's procedures for obtaining 36 a CUP because they entered into a Purchase Agreement to buy the St. Anthony Business Center. 37 He indicated his client plans to use 15,000 square feet of basement space for an assemb ly area. 38 He stated they attended the February Planning Commission meeting for a concept review and 39 only two issues came up at that time. He indicated the Planning Commission asked if the 40 building would be taken off the real estate tax rolls and he informed the Planning Commission 41 that it would not and they plan to get more business tenants in the building. He indicated the 42 other question raised by the Planning Commission was whether the site had adequate parking 43 and about what happens when there is a religious assembly. He stated that they paid the $130 44 CUP filing fee on February 14th and following the concept review they were told they would be 45 on the Planning Commission agenda in March. He indicated they attended the March 20th 46 Planning Commission meeting and were told they were not on the agenda and the Planning 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 City Council Regular Meeting Minutes March 27,2012 Page 8 Commission Chair would not tell them why they were pulled from the agenda. He indicated it was pointed out to them in a letter that on March 13 1h , the City Council passed an ordi nan ce based on a March 6 memo from the City Attorney that it had been proposed to consider amending the Zoning Code w ith respect to allowing assembly halls as conditional uses in the City'S Light Industrial and Commercial Zoning Districts. He stated he did not know at the time that la st October, a Christian church came to the City and on October 25, 2011 , this church went through a concept review and the Planning Commission recommended approval for an assembly area in the Light Industrial zone . He recited portions of the City Council meeting minutes and indicated that in October, the City Co uncil allowed a religious institution that had paid its $130 filing fee to go through the process and the City Council did not pass a moratorium at that time. He asked if the C ity Council will now pass a resolution to consider his client 's CUP application and referenced the Zoning Code which allows assembly areas as a conditional use in the Light Industrial area. He also referenced the Religious Land Use Act and felt the City 'S actions were questionable. He discussed the City 's criteria for conditional uses and indicated that the proposed use is not a mosque but an assembly area for prayer. He again asked the City Council whether it will allow this CUP to go forward now and not try to run out the clock on the 60 days. Khada Kader Abdi , 1249 St. Anthony Avenue, St. Paul , appeared before the City Council and asked the City Council to approve the CUP. He stated the Abu Huraira Islamic Center is not a mosque and will be a prayer center in a space that is not being used now. He urged the City Council to approve their CUP for the sake of diversity, for the sake of strengthening their communities, for fulfilling their dreams, and building a brighter future for their children. He felt their center would contribute positively to the Village of St. Anthony. He stated they continue to be law ab idin g c iti zens who should enjoy the same rights and privileges as others . He expressed thanks to all who came here tonight and others who have showed their support. Michael Bird, 3416 Edward Street, appeared before the C ity Council and expressed concern that the property would somehow end up off the tax rolls after the purchase and the City would lose about $80,000 per year in real estate taxes. He felt that taxes are too high in the City and was concerned that taxes will go higher as a result of this purchase. Bill Flemer, appeared before the City Council and stated he has been practicing Islam since 1974. He agreed with Mr. Peters's and Mr. Abdi 's statements and stated that he would like to see St. Anthony include itself on the list to not be biased and that is willing to show people its intentions are nothing but good . He stated that the Muslims just want a sma ll place to pray and they will rent out the other areas in the building. Jennifer Nelson, 3329 Belden Drive, appeared before the City Council and stated that one of the things she lik ed about St. Anthony was the small town feel and that it is a welcoming place in the middle of such a large area. She feared that St. Anthony would gain a reputation that betrays the we lcom in g feeling she had when she moved here and wanted to officially state that she would welcome Muslim neighbors to join and be a part of the community . She stated there is so much division now, politically, culturally, and religiously, and urged the City Council to ask itself what kind of community it wants to be and would this proposed use get the City on the path to becoming that community. She felt that approving this CUP would be a great step in that direction. I 2 3 4 5 6 7 8 9 10 II 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 City Council Regular Meeting Minutes March 27, 2012 Page 9 Mayor Faust thanked everyone for their comments. He stated that the issue of whether or not this property is on the City's tax rolls has not entered into any discussion by the City Council. He advised there are two parallel actions going on at the same time, the first is the application for a conditional use permit by Abu Huraira Islamic Center, and the law provides 60 days for the C ity to act on the CUP request and also provides an additional 60 day extension. He stated that the City happened to put a moratorium in place on any applications that might come after the Abu Huraira Islamic Center's applicat ion because the City Council felt it needed to take the time to do the right thing regarding land uses. He stated this has never been about religion or a church and is strictly about land use. He indicated the City Council will make a decision in a timely manner and with all available information and will do so without fear, without public opinion, without anything other than what is good for the community because that is the charge of the City Council. IX. INFORMATION AND ANNOUNCEMENTS. None. X. ADJOURNMENT. Mayor Faust adjourned the meeting at 9: I 0 p.m. Respectnilly submitted, Barbara Hughes TimeSaver Off Site Secretarial, [nco A TIEST: Pattt2di{f1Lit ( City C lerk ",~J-Z ... T IVtayor Meeting sneer 103696 III I VIII VIII VIII VIII VIII IIII IIII Bax: 31 Folder: NES 3011 Document: CC MINUTES 03272012 CERTIFICATION OF MINUTES RELATING TO PUBLIC FACILITIES LEASE REVENUE BONDS (CITY OF ST. ANTHONY, MINNESOTA LEASE OBLIGATION) SERIES 2003 Issuer: Housing and Redevelopment Authority of the City of St. Anthony Governing Body: Board of Commissioners Kind, date, time and place of meeting: A regular meeting held on March 27, 2012, at 7:00 o'clock p.m., at the City Hall, St. Anthony, Minnesota. Members present: Fwd , Ile_ Members absent: Na o'L Documents Attached: Minutes of said meeting (including): Pages 1 through 4 RESOLUTION RELATED TO PUBLIC FACILITIES LEASE REVENUE BONDS, SERIES 2003 (CITY OF ST. ANTHONY ANNUAL APPROPRIATION LEASE OBLIGATIONS); APPROVING THE REDEMPTION THEREOF AND THE EXECUTION OF AN ESCROW AGREEMENT WITH RESPECT THERETO 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 said corporation in my legal custody, from which they have been transcribed; that said documents are a correct and complete transcript of the minutes of a meeting of the governing body of said corporation, and correct and complete copies of all resolutions and other actions taken and of all documents approved by the governing body at said meeting, so far as they relate to said Bonds; and that said 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 of such meeting given as required by law. WITNESS my hand officially as such recording officer on Marct'1?—,%, 2012. Executive Director Commissioner Roth introduced the following resolution and moved its adoption, which motion was seconded by Commissioner Stille: RESOLUTION RELATED TO PUBLIC FACILITIES LEASE REVENUE BONDS, SERIES 2003 (CITY OF ST. ANTHONY ANNUAL APPROPRIATION LEASE OBLIGATIONS); APPROVING THE REDEMPTION THEREOF AND THE EXECUTION OF AN ESCROW AGREEMENT WITH RESPECT THERETO BE IT RESOLVED by the Board of Commissioners of the Housing and Redevelopment Authority of the City of St. Anthony (the "Authority"), as follows: Section 1. Recitals. The Authority has issued its $5,530,000 Public Facilities Lease Revenue Bonds, Series 2003 (City of St. Anthony Annual Appropriation Lease Obligations) dated, as originally issued, as of July 1, 2003 (the "Series 2003 Bonds"), to finance the construction of the public works facility and fire station (the "Facilities") which are leased by the Authority to the City of St. Anthony(the "City"), pursuant to a Lease Agreement, dated July 1, 2003 (the "Lease"),between the Authority, as lessor, and the City, as lessee. The City is issuing its General Obligation Bonds, Series 2012A (the "Series 2012 Bonds"), and upon the issuance of the Series 2012 Bonds will purchase the Facilities from the Authority as provided in the Lease. The purchase price of the Facilities received by the Authority will be applied to pay all principal and interest due on the Series 2003 Bonds to and including February 1, 2013 (the "Redemption Date"), and to pay and redeem all Series 2003 Bonds maturing on or after February 1, 2013 on the Redemption Date. Section 2. Payment and Redemption of Series 2003 Bonds. Upon receipt by the Authority of the purchase price of the Facilities from the City, the Authority shall deposit the purchase price of the Facilities in accordance with the Escrow Agreement (the "Escrow Agreement"), between the City, the Authority and U.S. Bank National Association, as escrow agent (the "Escrow Agent"). The funds deposited shall be invested in securities authorized for such purpose by Minnesota Statutes, Section 475.67, subdivision 8, maturing on such dates and bearing interest at such rates as are required to provide funds sufficient, with cash retained in the escrow account, to pay all principal and interest to become due on the Series 2003 Bonds to and including the Redemption Date and to pay and redeem the outstanding principal of the Series 2003 Bonds maturing on or after February 1, 2013 on the Redemption Date. The redemption of the Series 2003 Bonds maturing after February 1, 2013 on the Redemption Date is hereby approved. The Chair and Executive Director are hereby authorized to enter into the Escrow Agreement with the City and the Escrow Agent. Upon vote being taken thereon, the following voted in favor thereof: Faust, Gray, Jenson, Roth, Stille and the following voted against the same: None whereupon the Resolution was declared duly passed and adopted.