HomeMy WebLinkAboutCC PACKET 08251992 f
� Meeting Sheet
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Box: 30
Folder: CC PACKETS 1990-1994
Document: CC PACKET 08251992
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DORSEY & WHITNEY
A P�... 1NCLODI NO PHOR681OPLL COHPoWTON6
350 PARE AVENUE 2200 FIRST BANK PLACE EAST 201 FIRST AVENUE,S.W.,SUITE 340
NEW YORH..NEW YORK 10022 ROCHESTER,MINNESOTA 55902
(212)415-9200 MINNEAPOLIS, MINNESOTA 35402-1498 (507)258-3156
1330 CONNECTICUT AVENUE.N.W. (612) 340-2600 1200 FIRST INTERSTATE CENTER
WASHINOTON,D.C.20036 TELEX 29'060$ BILLINGS,MONTANA 59103
(202)657-0700 FAX(612)340-2868 (406)252-3800
3 GRACECHURCH STREET 507 DAVIDSON BUILDING
LONDON EC3V OAT,ENOLAND GREAT PALLS,MONTANA 59401
44.71-929-3334 (406)727-3632
36,ROE TRONCHET 127 EAST FRONT STREET
76009 PARIS,FRANCE MISSOULA,MONTANA 59602
33-1-42.66-59-49 nLL AM IL SCYM (406)721-6025
U
35 SQUARE DE MEES (6=)340-29M 801 GRAND,SUITE 3900
B-1040 BRUSSELS,BELGIUM DES MOINES,IOWA 50309
32-2-504-46-11 (315)253-1000
August 19, 1992
Mayor Ranallo and Members
of the City Council
City of St. Anthony
3301 Silver Lake Road
St. Anthony, MN 55418
Re: Francis Cheng Property
3316 Skycroft Circle
Dear Mayor Ranallo and Members of the City Council:
The City Manager has requested that I advise you with respect to the problems
the City is having with the property at 3316 Skycroft Circle. As you probably know,
these problems extend over a period of years. I have correspondence in my file
going back to 1988 in connection with this property, where we have notified the
owner, who lives in California, that action must be taken by her to maintain the
property. As far as I know, we still have had no response or action from the owner.
The City has proceeded to perform certain maintenance at the property and has
assessed the costs of the work back against the property. As far as I know, all of these
assessments have been paid without.objection by the owner.
A question has arisen as to whether there is anything further the City can do
with respect to this property. Minnesota Statutes, Sections 463.16-463.26 deal with
hazardous and substandard buildings. Section 463.151 provides as follows:
J
DORSEY 8c WHITNEY
Mayor Ranallo and Members August 19, 1992
of the City Council Page 2
463.151 REMOVAL BY MUNICIPALITY;CONSENT;COST.
The governing body of any city or town may remove or raze any
hazardous building or remove or correct any hazardous condition of
real estate upon obtaining the consent in writing of all owners of
record, occupying tenants, and all lien holders of record; the cost shall
be charged against the real estate as provided in Section 463.21, except
the governing body may provide that the cost so assessed may be paid
in not to exceed five equal,annual installments with interest thereon,
at eight percent per annum.
In.talking with the City Manager, it appears that although the maintenance of
this property has been totally ignored by the owner for a number of years, and
although it is aesthetically a nuisance,.there probably is not deterioration or health
or safety considerations sufficient to conclude that it is a hazardous structure under
Minnesota Statutes, Section 463.15, Subd. 3:
Subd. 3. Hazardous building or hazardous property. "Hazardous
building or hazardous property" means any building or property,
which because of inadequate maintenance, dilapidation, physical
damage, unsanitary condition, or abandonment, constitutes a fire
hazard or a hazard to public safety or health.
For this reason,it does not appear that the City could demolish the building or take
other actions under Sections 463.16-463.26 to deal with it.
A question has also arisen as to whether the City could acquire this property
by purchase or condemnation and convey it to a new owner. I have not done
research on the question, but I believe that this would not meet the public use
requirements of condemnation under Minnesota Statutes, Chapter 117. Ordinarily,
a City must.acquire such property for a public use or for reconveyance for
redevelopment purposes. I do not believe it would be a sufficient public use or
public purpose simply to acquire it in order to convey it to a new owner. Minnesota
Statutes, Section 463.152 gives the City the power of eminent domain to acquire
property which is "found to be hazardous within the meaning of Section 463.17,
DoRSEY 8e WHITNEY
Mayor Ranallo and Members August 19, 1992
of the City Council Page 3
Subd. 3, and the acquisition of such buildings and real estate is hereby declared to be
a public purpose." As indicated above, however, this property.probably does not fall
under the definition of "hazardous". If you would like me to research this further,
however, I would be happy to do so.
For the above reasons, I believe there is nothing further that can be done with
this property, except to have the City maintain it at the owner's expense by assessing
the costs of the maintenance against the property. Perhaps at some point, the
owner, a relative of the owner, or a new owner will undertake the proper care and
maintenance of this property.
V tr y yours,
William R. Soth
WRS:gle
' I
CONSULTING ENGINEERS PHONE 612-571-2500
Dig• FAX 612-677.1166
ULTEIG ENGINEERS, INC.
Z945201 EAST RIVER ROAD,SUITE 308 MINNEAPOLIS,MN 55421
August 25, 1992
Housing Redevelopment Authority
of St. Anthony, Minnesota
City of St. Anthony
3301 Silver Lake Road
St. Anthony, MN 55418
Subject: Apache Mall Structural Evaluation
UEI Project #92506
Ladies and Gentlemen:
Ulteig Engineers, Inc. (UEI) is an independent engineering
firm and was asked to complete a conditions report of the
buildings in the Apache Mall complex on August 6, 1992 . The
following report presents UEI 's findings.
Introduction
The Apache Mall complex consists of five (5) buildings. The
largest building is the Apache Mall. The remaining buildings
consist of a New Market Grocery building, a Sports and Health
Club building, a Mobil Service Station building, and a Tires
Plus building. The buildings were constructed at various
times throughout the past 30 years.
The Owner wishes to renovate the buildings in the complex and
in connection with the proposed renovation has requested tax
increment financing assistance from the St. Anthony HRA. It
has been proposed that the St. Anthony HRA establish a tax
increment financing district which will qualify as a
redevelopment district under the Minnesota Tax Increment
Financing Act. In order to qualify as a redevelopment
district under the Minnesota Tax Increment Financing Act, at
least 50% of the buildings must be "structurally substandard
to a degree requiring substantial renovation or clearance" .
UEI was retained to assist in the qualification of the New
Market Grocery building, the Sports and Health Club building,
and the Mobil Service Station. The qualification process
will generally include a site visit, an evaluation of the
remedial work necessary, assignment of costs for renovation
work, and the conclusion that the three (3) buildings meet
the TIF requirements.
C E��
Apache Mall Structural Evaluation
Page 2
Executive Summary
The New Market Grocery building, the Sports and Health Club
building, and the Mobil Service Station building are
"structurally substandard" based on site observations,
definition of remedial work necessary to bring the buildings
back into code compliance and the cost of the remedial work.
Renovation for the New Market Grocery building will cost
approximately 31. 0% of new construction costs for a similar
building. Renovation costs for the Sports and Health Club
will be approximately 33 .7% of the replacement costs.
Renovation costs for the Mobil Service Station will be
approximately 22 . 0% of the cost to build a new facility of
similar size and function. Three (3) of the five buildings
in the main Apache Mall complex are substandard.
Definition of "Structurally Substandard"
The Minnesota Statute covering Tax Increment Financing has
the following language:
"structurally substandard shall mean containing defects
in structural elements or a combination of- deficiencies
in essential utilities and facilities, light and
ventilation, fire protection including adequate
egress, and condition of interior partitions, or
similar factors, which defects or deficiencies are of
sufficient total significance to justify substantial
renovation or clearance.
A building is not structurally substandard if it is in
compliance with the building code applicable to new
buildings or could be modified to satisfy the building
code at a cost of less than 15 percent of the cost of
constructing a new structure of the same square footage
and type on the site. "
Apache Mall Structural Evaluation
Page 3
Site Observations
Site visits were made to the three buildings on August 6,
1992 and on August 11, 1992 . The following was observed:
New Market Grocery Building:
The New Market Grocery building is a 90, 500 square foot
warehouse type building presently used for commercial
businesses. The building houses the New Market Grocery,
the Salvation Army Thrift Store, and Slick' s Alternative
Lounge. The building was constructed in 1961. Walls
are constructed of 8" block with 4" brick veneer. The
roof support system uses standard steel bar joists with
steel wide flange beams and columns for support. The
roof deck is Tectum attached to purlins which span
between the bar joists. The roof system initially was a
3-ply pitch and gravel roof. This system has been
overlayed with an EPDM with ballast roof system. The
floor is a 4" slab-on-grade. Other aspects of the
building are similar to standard construction of
office/warehouses in the Twin City area.
1. Several code requirements related to exits,
firewall ratings, and landings were noticed. A
tabulation of .these is included in the Architect's
report in the Appendix.
2 . Significant water damage has occurred to the roof
deck system at various locations throughout the
building. The EPDM roof has been repaired many
times. Large areas of the membrane are not covered
by ballast.
3 . The east and west walls show significant outward
movement at the top. Temporary remedial action to
hold the walls in place has occurred within each
bay at sometime in the past. The movement appears
to ..have occurred due to the lack of adequate
connections between the roof deck and the walls.
Calculations show that the 8" block walls require
reinforcing steel to resist lateral wind forces.
Verification that reinforcing steel was in place
could not be made.
Apache Mall Structural Evaluation
Page 4
4 . The HVAC system, plumbing, sprinkler system, and
sewer system have certain code deficiencies. These
are addressed in the Mechanical Engineer's report
in the Appendix.
5. The exterior wall has significant vertical cracks
on the interior at several locations.
6. The slab-on-grade floor is in generally good
condition considering the life of the building.
7 . The electrical service for the building appears to
be relatively new and according to the Facilities
Manager for the building is in compliance with code
requirements.
8. The nailer board and flashing at the top of the
parapet around the perimeter of the building has
pulled away and needs repair.
9. Calculations show that the existing bar joists,
beams, and columns are adequate to support standard
dead and snow loads. However, the weight of both
the three ply system and the EPDM system decrease
the available snow load capacity to approximately
500 of the required capacity per the 1992 Minnesota
Building Code.
10. A small amount of leaking oil was noted at the
trash compactors outside the south wall of the
building.
Sports and Health Club Building:
The Sports and Health Club building is a steel frame
building having steel bar joists for roof support. The
roof is a standard pitch and gravel roof system. The
present walls are a curtain wall system using a material
containing asbestos. The mechanical systems within the
building are similar to those which would be installed
in a typical health club with a swimming pool, exercise
room, changing rooms, and weight equipment room. The
floor system is a slab-on-grade with the pool areas
excavated below grade.
Apache Mall Structural Evaluation
Page 5
1. The exterior walls are generally in poor condition
and need replacement.
2 . The roof system appears to be in generally good
condition with only isolated spots where water
leakage may have occurred.
3 . The HVAC system shows substantial corrosion and
will need replacement.
4 . The Architect's report presents deficiencies
observed during his review of the building.
Mobil Service Station Building:
The Service station - is of standard construction using
masonry block walls and a flat roof supported by wood
roof joists. The roof system is a standard pitch and
gravel system. A flammable waste trap exists in the
building and is vented to the outside. The building has
been closed due to contaminated soil on site from the
fuel storage tanks.
1. The Architect's report presents deficiencies
observed in the building.
2 . No structural framing deficiencies were noted.
3 . No areas of water penetration on the inside of the
building were noted. Some efflorescence was noted
on the outside of the west wall which may indicate
water penetration into the block.
4 . Repaving of the area around the building will be
required.
Renovation Work
The following is a tabulation of the renovation work which
UEI has determined is required at each building.
Apache Mall Structural Evaluation
Page 6
New Market Grocery Building:
.1. Remove all existing roofing and replace with a new
roof system.
2. Install tapered insulation under the new roof
system to accommodate the 1992 State Building Code
requirement of 1/4" per foot of roof slope to
interior roof drains.
3 . Remove the Tectum roof deck and replace it with a
standard metal roof deck.
4 . Add roof drains and scuppers as required to meet
State Building Code requirements for drainage and
overflow.
5. Plumb and reinforce the east and west walls
replacing brick facing as necessary.
6. Add insulation to the exterior walls.
7. Repair code deficiencies presented in the
Architect's report.
8 . Repair mechanical systems per the Mechanical
Engineer's report.
9. Connect the roof diaphragm to the east and west
masonry walls.
Sports and Health Club:
1. Remove and replace the exterior wall covering.
2 . Remove and replace a portion of the mechanical
systems.
3 . Repair the roof system as necessary.
4 . Repair the deficiencies presented in the
Architect's report.
Apache Mall Structural Evaluation
Page 7
Mobil Service Station:
1. Remove contaminated soil and replace with clean
engineered fill.
2 . Repave the areas on all sides of the building which
have been disturbed by removal of contaminated
soils.
3 . Repair the deficiencies presented in the
Architect's report.
Cost of Remedial Work
Tabulations of cost estimates for the remedial work have been
prepared and are presented in the Appendix. Replacement
costs were calculated on a square foot basis for new
construction of similar facilities. Renovation costs were
estimated using historical data received from the Architect,
Mechanical Engineer, and a Contractor. Estimating this type
of work is a difficult process. The estimated costs and the
extent of repairs needed are based on opinion and visible
conditions. other conditions may exist which were not
visible or readily apparent which may result in increased
repair costs. Therefore, estimates can change in the future
due to economic conditions, time of construction, extent of
repair, etc.
Conclusions
The three (3) buildings evaluated are all "structurally sub-
standard" and require significant renovation to upgrade them
to code compliance. Replacement cost for the New Market
building is approximately $2, 534, 000. 00. Renovation cost is
approximately $906, 641 or 35.8% of replacement cost.
Replacement cost for the Sports and Health Club is
approximately $353 ,790. Renovation cost is estimated to be
$119, 352 or 33 .7% of replacement cost. Replacement of the
service station is approximately $107, 175. Renovation costs
are estimated at $22, 600 or 21. 0% without addressing the
contaminated soil issue.
Apache Mall Structural Evaluation
Page 8
Each of these buildings qualifies under the TIF definition.
In addition, since three of the five buildings in the complex
are "structurally substandard" and they represent 60% of the
total number of buildings in the complex, the complex meets
the TIF "redevelopment district" criteria.
The observations and conclusions expressed in this report are
my own based on my professional practice, engineering
judgement, and the data collected during visual inspections.
Finished materials on the interior of the buildings were not
removed during inspections. Therefore, any structural
distress hidden by finished surfaces could not be noted.
If you have any questions, please call.
Very truly yours,
Glenn J. Gauger, P.E.
Minnesota Registration #10951
GJG/tlm
enclosures
c: Patrick W. Pelstring, Business Development Services Inc.
Tom Burt, City of St. Anthony
Dennis Cavanaugh, C.G. Rein Company
APPENDIX
Exhibit A: Architect' s Report
Exhibit B: Mechanical Engineer's Report
Exhibit C: New Market Grocery Building Cost Estimate
Exhibit D: Sports and Health Club Building Cost Estimate
Exhibit E: Mobil Service Station Building Cost Estimate
COST ESTIMATES
NEW MARKET GROCERY BUILDING
ASSUMPTIONS:
1. Hazardous material removal is not included.
2 . The space is unoccupied by tenants during repairs.
Replacement: 90, 500 sq ft x $28/sq ft = $ 2 , 534, 000
Renovation Costs:
1. Remove old roof systems: $ 104, 075
2 . Remove tectum deck: $ 41, 630
3 . Install metal roof deck: $ 78, 056
4 . Install new roof and flashing: $ 265, 000
5. Install roof drainage and
tapered insulation: $ 19, 650
6. Insulate walls and store fronts: $ 43 , 625
7 . Accessibility and Exits: $ 8, 500
8 . Repair structural integrity of
masonry walls: $ 93 ,840
9 . Provide connection of roof deck to
masonry walls: $ 70, 265
10. Repair interior fire walls: $ 2 , 000
11. Replace deteriorated mechanical
systems: S 180, 000
TOTAL: $ 906, 641
Renovation cost as a % of replacement cost: 35. 8%
COST ESTIMATES
SPORTS AND HEALTH CLUB BUILDING
ASSUMPTIONS:
1. Hazardous material removal is not included.
Replacement: 1862 x $45/sq. ft. _ $ 353 ,790
Renovation Costs:
1. Remove old wall system: $ 11, 616
2 . Install new wall system: $ 42, 592
3. Handicapped access: $ 3, 000
Exits: $ 10, 600
Toilets and Shower: $ 4,000
Pool Access $ 2,500
4. Disinfecting: $ 2 , 500
5. New Mechanical System: $ 30, 000
6. Roof System Repair: $ 12 ,544
TOTAL: $ 119, 352
Renovation. cost as a % of replacement cost: 33 .7%
COST ESTIMATES
MOBIL SERVICE STATION
ASSUMPTIONS:
1. Hazardous material removal is not included.
2 . Removal of contaminated .soils is not included.
Replacement Costs: 1429 sq ft x $75 sq ft = $ 107, 175
Renovation Costs:
1. Provide rated roof structure: $ 2, 000
2 . Handicapped access: $ 500
3 . Pavement: $ 9, 500
4 . Toilet Rooms: $ 4, 500
5. Repair Roof Flashing: $ 2, 100
6. Install Mechanical System: $ 4, 000
TOTAL: $ 22, 600
Renovation cost as a of replacement cost: 21.0%
FORTIER & ASSOCIATES, INC.
August 12, 1992 ARCHITECTURE PLANNING INTERIOR DESIGN
Mr . Glen Gauger
Ulteig Engineers, Inc.
5201 East River Road
Suite 308
Minneapolis, MN 55421
Re: APACHE MALL EVALUATION
Comm: 92-10
Dear Mr. Gauger:
As requested, I have conducted an on-site observation the three (3)
buildings in the Apache Mall area. These buildings are referred to
as "The New Market Building, " "The Sports and Health Building" and
"The Automobile Service Station. " The purpose of the observation was
to assess existing conditions and assist in preparing an estimated
cost to repair the facilities ' structurally substandard elements.
To a great extent, this report restricts structurally substandard
elements to strict code compliance issues. However, it is recognized
that defects and deterioration of basic building elements can
effectively preclude the use of the facility while not presenting a
Code violation. To the extent such elements are an integral part of
the building and not, mere leasehold improvements, they are considered
as structurally substandard.
Currently all three facilities are in an obviously structurally
substandard condition. The continuation of these conditions will
undoubtedly cause, or has caused, considerable damage to all elements
of the construction. Much of the damage is or will be concealed and
can only be fully identified during the remodeling process or with
selective removal of materials and testing. Such testing and
investigations are beyond the scope of this report.
The extent of work required reflects my considered opinion of
existing, visable conditions. As' with* any remodeling, a sizeable
contingency should be allowed for concealed conditions.
Yo s ru
Yo
. For ier
Registered Architect
DPF/sf
408 Turnpike Road, Golden Valley, Minnesota 55416 (612) 593-1255
FORTIER & ASSOCIATES, INC.
ARCHITECTURE PLANNING INTERIOR DESIGN
APACHE MALL EVALUATION August 12, 1992
Comm: 92-10
NEW MARKET BUILDING
The major and most notable deficiency in this facility is the lack of
structural integrity in the exterior walls. Damage is significant
and will worsen. Extent of repairs involve replacement of
substantial sections of exterior masonry, brick faced walls and
re-anchoring the steel framing to a plumb and true condition. (These
costs will be addressed by Structural. ) All of the roof flashing
must be removed and replaced as must substantial portions of the roof
decking, which is now supporting mold growth. Appropriate patching
of roof will be required as will be tapered insulation to provide a
1/4 per foot slope. It is also anticipated that new interior roof
drains and overflows will be repaired. It will probably be more
practical to replace the entire roof; thus assuring performance
continuity.
This building also fails to meet Energy Code compliance. The masonry
walls require insulation and the window wall systems are extremely
poor. It is recommended that new roof insulation be added; wally be
insulated with .1-1/2" rigid insulation and vapor barrier and covered
with gypsum board; and that a thermally broken insulated wall system,
including doors, replace the existing.
Other Code - issues include the following: Handicapped accessibility
and facilities, which are marginal. At a minimum, the entry
threshhold and concrete landing at Slick ' s must be reparied. Exit
signs and interior illumination are required at four locations. Four
exit locations also require landings with steps and railings.
Parking must be relocated away from obstructing the exit doors. The
exit from the vacant. space must be re-opened and made operable as it
currently swings inward. The area separation walls are required to
be 1-hour rated. The numerous holes and untaped joints require
repair. It was . also noted that there appears to be about 1,200 S.F.
of asbestos-based floor tile in deteriorating, exposed condition. A
hazardous products specialist should be contacted to remove and
dispose of this material.
408 Turnpike Road, Golden Valley, Minnesota 55416 (612) 593-1255
APACHE MALL EVALUATION ,Page 2
Comm: 92-10
SPORTS AND HEALTH BULDING
This building is currently vacant and is uninhabitable in its present
condition.. Due to the amount of moisture entering the facility, it
is highly probable that repairs will be much more extensive than a
visual observation can detect.
The major deficiency is the failure of the exterior wall system to
resist water and air penetration., in addition to failing to comply
with the Energy Codes. The walls are a pre-engineered component
system of a thin mineral fiber board and exterior metal cladding.
Several panels have failed and must be replaced. Additionally, ' all
panels require new sealant. To address the Energy Conservation Code
would require insulation be fitted in existing wall cavities: This
is easiest to achieve by removing the panels from the exterior,
rather than demolishing the interior walls, some of which are tiled.
The portions of the building where the walls are exposed or have
damaged gypsum board interiors are best repaired by removing the
gypsum board, installying appropriate insulation, vapor barrier and
new gypsum board. The windows are 1/4" glass in wood stick frames.
These should be replaced with an insulated glass and weather proofed
frame with appropriate sealants.
Due to discontinuation of wall system and the extent of work, it is
most feasible to simply install a new, insulated panel system,
complete with windows and doors.
Handicapped access must be addressed at all exits. New hardware and
exterior ramps are required. The toilet and showers also require
revisions. This will involve demolition of 2 stalls in each toilet
and shower room to enable a larger handicapped stall to be
constructed. New fixtures, grab bars and vanities are also
required. Access to the pool will be required via a lift. Building
requires disinfecting and removal of molds, etc.
APACHE MALL EVALUATION Page 3
Comm: 92-10
AUTOMOTIVE SERVICE STATION
This building is currently vacant. We understand there may be soil
contamination due to past releases of contaminants. Remedial costs
for such repairs are best left to a specialist in the field of
environmental mitigation.
The major Code issue is a deficit roof structure. This simple span
2x wood joist roof does not comply with the requirements for a B-1
Occupancy (Gasoline Service Station) , which require heavy timber or
1-hour fire resistive construction. Accordingly, it should be rated,
which can be done by applying an appropriate gypsum board ceiling.
Handicapped accessiblity requires a ramp be constructed and the
sidewalk widened. Also, that the toilet room doors and hardware be
replaced. The toilet rooms will require new fixtures and vanity.
Also significantly deteriorated is the drive and parking surface.
While not a Code issue, it is sufficiently essential to the service
station operation where its present condition would preclude leasing
the space. The paved areas should be cleaned, prepared and
resurfaced with 2" of bituminous paving.
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4979.OLSON MEMORIAL HIGHWAY MINNEAPOLIS,MINNESOTA 55422 PHONE 612/546-3355
August 17, 1992
Mr. Glenn Gauger
Ulteig Engineers, Inc.
5201 East River Road
Suite 308
Minneapolis, MN 55421
Re: Apache Mall Evaluation
Mechanical Systems
File: L9253COl
Dear Mr. Gauger:
The purpose of this letter is to outline the Mechanical system improvements for the New
Market Building, Sports and health Club Building, and Mobile Service Station Building at the
Apache Mall Complex. The Mechanical system improvements are separated into two
categories; those required by code and those that we recommend prior to tenant occupancy.
NEW MARKET BUILDING - 90,250 SQ FT
Code Requirements:
There are two major code violations that require modification of the existing systems.
1. Relocate two exhaust fans and one flue. There are two exhaust fans and one flue
within the minimum required 20 foot distance from an outside air intake.
2. Install eight smoke detectors. Each of eight heating, ventilating, and cooling units
require a smoke detector in the return air stream to shut the fan down upon detection of
smoke.
A new sprinkler system has recently been.-installed and requires no modifications for code
compliance other than those that may result from specific tenant needs or re-partitioning of the
building.
Mechanical .System Improvements:
1. Replace each of four existing indoor heating, cooling, and ventilating units with new
rooftop units. The existing units were installed with the original building in 1962 and
are near the end of their useful life. The existing units also are not capable of cooling in
an economizer cycle.
a •
` A
o
clu11'. .
Apache Mall Evaluation
Mechanical Systems
File: L9253COI
Page 2
2. Replace each of four rooftop. heating, cooling, and ventilating units. with four new
rooftop heating, cooling, and ventilating units. The existing units were installed shortly
after the building was constructed and are near the end of their useful.life.
3. Install new rooftop relief hoods to relieve excess air when the units are-running in their
economizer cycle. All of the existing relief hoods should be removed as part of the roof
replacement.
4. Replace all existing rooftop exhaust fans serving toilet rooms. All other exhaust fans
should be removed as part of the roof replacement.
All other building modifications such as adding exhaust systems or plumbing are specific to
new tenant needs. The building water and sewer services appear adequate for any plumbing
needs typical for a building of this type.
SPORTS AND HEALTH BUILDING - 7,862 SQ FT
Mechanical System Improvements:
1. Replace the heating, cooling, and ventilating system with new rooftop units. The
existing heating, cooling, and ventilating units are near the end of their useful life.
2. Replace the existing exhaust systems for the toilet room and locker room areas. The
existing exhaust fans are near the end of their useful life.
3. Exhaust and make-up air for whirlpool area..
MOBILE SERVICE STATION BUILDING - 19429 SQ FT
Mechanical System Improvements:
1. Replace the existing heating and ventilating systems with new heating and ventilating
systems.
Yours very truly,
CHASNEY ASSOCIATES, INC.
Stanley M. Chasney P.E.
*W a / CONSULTING ENGINEERS
wl Maier Stewart & Associates Inc.
August 21, 1992
File No: 490-010-30
Mr. Larry Hamer
Director Public Works
St. Anthony Village
3301 Silver Lake Road
St. Anthony, MN 55418
RE: KENZIE TERRACE SIDEWALK CONSTRUCTION - PHASE II
CITY OF ST. ANTHONY, MINNESOTA
Dear Mr. Hamer:
Please find attached the bid.tabulation on the above project. The low bidder is Norsk
Concrete Construction was $9,970 our engineering estimate was $8,900. Although
the low bidder is higher than our estimate, we understand that you have worked with
Norsk before and you are comfortable with their performance.
Small projects like these are often difficult to estimate because we do not always
know how. A contractor perceives the cost of compiling with the use of CDBG mo-
nies.
Since this project is under $25,000, under state law you can issue a purchase order to
perform the work. We are not sure of your licensing or bonding requirements for
purchase orders but at a minimum you should identify on the purchase order form that
all work will be done in 30 calendar days.
Before the purchase order is issued, the following forms must be submitted by the
contractor as part of the requirements for using CDBG monies.
1). Contractor/subcontractor certificate
2). Section & Compliance Certificate
3). EEOC Certificate
4). Construction Contractor I.D. data
Your's truly,
M�AIEERnSTEWART & ASSOCIATES, INC.
lA'��'v'
rV1 - " l
Thomas J. Madigan, P.E.
Consultant City Engineer
TJM/bks
1959 SLOAN PLACE, SUITE 200, ST. PAUL, MINNESOTA 55117 612-774-6021
9800 SHELARD PARKWAY,SUITE 102,MINNEAPOLIS,MINNESOTA 55441 612-546-0432 • Equal Opportunity Employer
IST91 :'ON 138 NN
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F.
PLAN HOLDERS LIST
BID OPENING DATE: _f0 'mm Ave PLAN & SPEC. AMOUNT:
PROJECT: K45NzJ&55 T�p�2,sG S/4 _w,4t.K PAW-5E �V PROJECT N0. -4-1qO-D/O-ZO
i
OWNER: ST. ANTHoA) Y ENGINEER: M 5,4 ESTIMATE:$ 0&00
NAME/ADDRESS DATE SENT/COURIER BID BOND BID AMOUNT
lq�.arelJq -- Ton" CDASf:
33241 sKye-roC-f- C r4a- g/05-1qZ
Sf AA4-ho^y,pMAJ Osl-4i$
Po g3ope �oC-7 �t-z
7
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PA6Volren rev ee4e- 1nG.
N6
i
I
I
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� goc FINANCIAL sYaTcm ST. ANTHONY VILLAGE
08/21/92 �z:zs Check Register sLo*OR-vO«.V8 gxsc z
---------'- '--- s r --- --- - r-
`
BANK v2hDon cnEcs" DATE AMOUNT
�----Fz RS- Fres TAR-sT�'ANTHONY cuEcorNo---- - - - ---------- --
-
� 000238 x T u r cosozr CORP 3126 ou/ua/yo 296.88
�-----�-000020 -Ka-oArrEnr co - --' 3127-08/26/82-----------57-54' ------
�- 000120 AMERICAN LINEN 3138 08/26/82 14.35
�
000115 Auoa enoTo FzNzsa 3129 08/26/82 12.61
- - ----'000038 -ANIMAL comraoL yo -- ------------'3zan 08/26/92 180.00
----------------------------------- --------
- ' oOOzO �� a T 3zoz n8/2O/8u �8
� . 95^
� .00004 BRAKE & EQUIP waoceonoE 3132 08/26/92 25'34
�-------U00537 BURT/THOMAS--- -----------------3 133-0 8/26/e2'---------8 6�-.*5-
008108 nzzY OF sr PAUL 3134 08/26/82 107.55
.00001 oLunY aoszwEss MACH co 3135 08/26/92 979.80
�--------000625 -COPY noPL' PR000cTs --3z35-0 8/2 6792---------'75-.0 0---
)� OO?zor oaowc/ocLom x 3137 08/26/92 399.68
005048 opc zwoosTozos zmn 0138 08/30/92
��--------�oOOzy --�/owAoo-wAUczAK------ TI39-oU7rU79o----------sn�on-- �
'00003 umFnorcMomT PnuoocT CO 3140 08/20/92 15446
�
000920 FEED ezrz cnwTaoLs 3141 08/25/92 1,742'85
��-------'000950 '-nzoEoroNE-TzoE-no-- o zu%-O8/%Uy92-------�--I3'�uo- ----- �
001080 noATraLLomcs oaaowAoo 3143 08/26/82 20. 10
�
001030 o & o scovznEs 3144 08/26/92 ao.«a
�-----�00005--'-ao�z�----'------- z_45-ng7usy9% n�zz- �
.00018 000aoo uoswacKo 3146 08/26/92 5'54
�
001145 oLEmW000 zwsLcWoun 5147 08/20/92 34'45
- -'------ooz23o '--ooeoEa' oTArE-nNo oAc IxD-OD/2O79u---------�-2 n'.00-
� 005017 oommEpzm 000mTY Tozasnmo 3149 08/26/82 62.50
oUuozs z z y c 150 08/28/92 80.00
____091601 -INGuAN ���'----------- 15l-O8728792---------7?-OO-
nozauo x n Aoro SUPPLY 3152 08/26/92 48. 10
'000z* JEAN xnumson uznu 08/26/92 15.00
�--------_'00013 JonrEaY oozosz ------------3154---O87%8/92----------5U-OO -'' ---- �
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---------------------'-----
---oou3S5 '-M-rz ozsr co 5T 08/26/92 '- --- -86-7r '-----'--------- �
/
008138 M.A.B. oNrsRPozsss' INC. 3158 08/20/92 260'84
002240 uErno WASTE comTonL uzoy oo/es/se aa'zuo.00
-
002280 mzoncaT ASPHALT cnRp-----------'--Jz6O 08/26/9e - _'---103.53 -----------'
002380 yzwxEaxScm INC 3181 08/26/82 484. 77
.00007 mm ocpr or cnanccrzoNS_ __ ___ozsr 08/26/92 za.s?
.00008 xm pcAymzws Assoc --- - 3l�O3 08/26/92 10.0 0
008149 NzTTz ozsposAL` INC. 3164 08/26/92 572.00
002680 mnnTecRN STATES Povca azss oo/os/ye zu.uc
----938.00
ooue*o posTyAsTEo 3166 08/20/92 '
.00009 RAwscY cmrr cnnczLzArIow 3107 08/20/92 179.00
.00010 eAmsc TECH. coLLcsc 316A 08/26/92 80.uo
003200 sAvuzE oopgLY co 3169 08/26/92 §7. 73
' 003315 ococu LAoouAronzss 3170 08/28/92 25.00
.00012 srovc oLsny 3171 08/26/92 38.28
007181 'snounaAw pooPAxs - -- ___3172 08/26/92 - - 69.29 - - --- '- -' -'----- -----� �
oouo*o raAcr pnzwTzwo 3173 08/26/92 147.00
ST. ANTHONY VILLAGE
BRC FINANCIAL SYSTEM
08/21/92 11 : 16 Check Register GL540R-VO4 .09 PAGE 2
BANK VENDOR CHECK# DATE AMOUNT
FIRS-FIRSTAR-ST.---ANTHONY-CHECKING---
008010 UNIFORMS UNLIMITED , 3174 08/26/92 56.07
-"008133—'-URBIA/DAVID ----3175-08-/2679Z -2317.8
002700 US WEST COMMUNICATIONS 3176 08/26/92 811.30
FIRSTAR- ST-
/ CONSULTING ENGINEERS
Maier Stewart & Associates Inc.
August 21, 1992
File No: 490-010-30
Mr. Larry Hamer
Director Public Works
St. Anthony Village
3301 Silver Lake Road
--St. Anthony, MN 55418
:X
RE: KENZIE TERRACE SIDEWALK CONSTRUCTION - PHASE II
CITY OF ST. ANTHONY, MINNESOTA
Dear Mr. Hamer:
Please find attached the bid tabulation on the above project. The low bidder is Norsk
Concrete Construction was $9,970 our engineering estimate was $8,900. Although
the low bidder is higher than our estimate, we understand that you have worked with
Norsk before and you are comfortable with their performance.
Small projects like these are often difficult to estimate because we do not always
know how. A contractor perceives the cost of compiling with.the use of CDBG mo-
nies.
Since this project is under $25,000, under state law you can issue a purchase order to
perform the work. We are not sure of your licensing or bonding requirements for
purchase orders but at a minimum you should identify on the purchase order form that
all work will be done in 30 calendar days.
Before the purchase order is issued, the following forms must be submitted by the
contractor as part of the requirements for using CDBG monies.
1). Contractor/subcontractor certificate
2). Section & Compliance Certificate
3). EEOC Certificate
4). Construction Contractor I.D. data
Your's truly,
M7-AIIEER�STEWART & ASSOCIATES, INC.
Thomas J. Madigan, P.E.
Consultant City Engineer
TJM/bks
1959 SLOAN PLACE, SUITE 200, ST. PAUL, MINNESOTA 55117 612-774-6021
9800 SHELARD PARKWAY,SUITE 102,MINNEAPOLIS,MINNESOTA 55441 612-546-0432 • Equal Opportunity Employer -
19191 :'ON 138 NO
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NOI1V108V1 OI8
N
PLAN HOLDERS LIST
BID OPENING DATE: /Q qm AV-Q- 1y-7. l-qqZ PLAN & SPEC. AMOUNT:
PROJECT: T2,dG PAW545 XT PROJECT NO. 4:!�Pp p/p-Zp
OWNER: ST. ANTHOti Y ENGINEER: m 5.4 ESTIMATE:$ g(o0O
NAME/ADDRESS DATE SENT/COURIER BID BOND BID AMOUNT
1gcarellq -- Son" cros�: , /nc.
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134-5 157 174 , N6
CITY OF ST. ANTHONY
i CITY COUNCIL AGENDA
AUGUST 25, 1992
7:30 P.M.
CITY COUNCIL CHAMBERS
I. CALL TO ORDER/PLEDGE OF ALLEGIANCE.
II. ROLL CALL.
III. APPROVAL OF AUGUST 25, 1992 COUNCIL AGENDA.
IV. APPROVAL OF AUGUST 11, 1992 COUNCIL MINUTES.
V. LICENSES/PERMITS/PETITIONS.
VI. PRESENTATION OF CLAIMS.
A. NORWEST BANKS - $34,238.75.
B. HENNEPIN COUNTY - $20,424.15.
C. BARR ENGINEERING - $294.60.
D. F. F. JEDLICKI, INC. !- $8,559.00.
E. MAIER STEWART & ASSOCIATES - $1,300.27.
F. VERIFIED.
VII. REPORTS.
A. COUNCIL.
B. CITY MANAGER.
VIII. PUBLIC HEARING.
A. PROPOSED APACHE PLAZA REDEVELOPMENT PLAN AND TAX INCREMENT
FINANCING PLAN (RESOLUTION 92-040).
IX. NEW BUSINESS.
A. RESOLUTION 92-039, RE: SALE OF $405,000 LIQUOR STORE REVENUE
REFUNDING BONDS.
X. UNFINISHED BUSINESS.
A. ORDINANCE 1992-007, RE: STORM WATER DRAINAGE UTILITY (2ND READING).
XI. ADJOURNMENT.
1 CITY OF ST. ANTHNOY
REGULAR COUNCIL MEETING
4
5 AUGUST 11 , 1992
6
7
8 1 . CALL TO ORDER/PLEDGE OF ALLEGIANCE
9
10 The meeting was called to order at 7 : 30 p.m. and the Pledge of
11 Allegiance was led by Mayor Ranallo.
12
13
14 2 . ROLL CALL
15
16 Council Present : Mayor Ranallo and 'Councilmembers Marks,
17 Fleming and Wagner
18
19 Council Absent : Councilmember Enrooth
20
21 Staff Present : City Manager Burt , City Attorney Soth and
22 Management Assistant Urbia
23
24
25 3 . APPROVAL OF AUGUST 11 , 1992 COUNCIL MEETING AGENDA
26
7 Motion by Marks , second by Wagner to approve the agenda for
August 11 , 1992 Regular Council Meeting with the following
additions :
30
31 7 . REPORTS
32
33 A. Report by Jeff Hansen, 2704 Pahl Avenue, regarding
34 safety on Pahl Avenue.
35
36 8 . NEW BUSINESS
37
38 C. Bowling Alley - City Manager
39
40 D. Committee - Councilmember Fleming
41
42
43 Motion carried unanimously
44
45
46 4 . APPROVAL OF JULY 28 , 1992 COUNCIL MEETING MINUTES
47
48 Motion by Marks , second by Fleming to approve the minutes of
49 the July 28, 1992 Regular Council Meeting with the following
50 corrections:
•
1 REGULAR COUNCIL MEETING
2 AUGUST 11 , 1992 •
3 PAGE 2
4
5
6
7 page 3, line 11 : Delete "of the" and insert "and"
8 page 3, line 48 : Correct "Mark" to "Mac" and include after
9 "Hardin" the phrase, "Executive Director of the Retail
10 Hardware Association. "
11
12 Motion carried unanimously
13
14
15
16 5. LICENSES/PERMITS/PETITIONS
17
18 Contractor ' s Licenses
19
20 Motion by Marks, second by Fleming to approve the contractor' s
21 license for Acme Glass, Inc. of Minneapolis , Mn.
22
23
24 Motion carried unanimously
25
26
27 Motion by Marks, second by Fleming to approve the contractor' s •
28 license for R J Ryan Construction of Minneapolis , Mn.
29
30 Motion carried unanimously
31
32
33 Heatina Licenses
34
35 Motion by Marks , second by Fleming to approve the heating
36 license for Suburban Air of Minneapolis, Mn.
37
38
39 Motion carried unanimously
4'0
41
42 Motion by Marks , second by Fleming to approve the heating
43 license for Thermex Corporation of Minneapolis, Mn.
44
45 Motion carried unanimously
46
47
48
49
50
•
1 REGULAR COUNCIL MEETING
46 AUGUST 11 , 1992
PAGE 3
4
5
6
7 Temporary 3 . 2 Beer Permits
8
9 Motion by Fleming, second by Wagner to approve the 3. 2
10 temporary beer license for Douglas Parker for August 20 , 1992
11 in Central Park.
12
13 Roll call : Fleming, Wagner, Ranallo - aye
14 Marks - nay
15
16 Motion passes
17
18 Motion by Fleming, . second by Wagner to approve the 3 . 2
19 temporary beer license for Patricia A. Mans for August 22 ,
20 1992 in Central Park .
21
22 Roll call : Fleming, Wagner, Ranallo - aye
23 Marks - nay
24
25 Motion passes
26
27
0 Motion by Fleming, second by Wagner to approve the 3. 2
30 temporary beer license for Robert Davies for September 13,
31 1992 for Central Park.
32
33 Roll call : Fleming, Wagner, Ranallo - aye
34 Marks - nay
35
36 Motion passes
37
38
39 Motion by Fleming, second by Wagner to approve the 3 . 2
40 temporary beer license for Michael Robarge for August 19, 1992
41 for Central Park.
42
43 Roll call : Fleming, Wagner, Ranallo - aye
44 Marks - nay
45
46 Motion passes
47
48
49
50
•
1 REGULAR COUNCIL MEETING
2 AUGUST 11 , 1992 •
3 PAGE 4
4
5
6
7 6. PRESENTATION OF CLAIMS
8
9 A. Dorsey and Whitney Law Firm
10
11 Motion by Marks, second by Wagner to approve a claim in the
12 amount of $1 ,088 . 80 to Dorsey and Whitney Law Firm for legal
13 services rendered through June 30, 1992 regarding various
14 matters.
15
16 Motion carried unanimously
17
18
19 B. Hance and LeVahn Law Firm
20
21 Motion by Marks , second by Wagner to approve a claim in the
22 amount of $2, 400 . 00 to Hance and LeVahn Law Firm for legal
23 services rendered for the month of August , 1992 , relative to
24 St . Anthony prosecutions .
25
26 Motion carried unanimously
27 •28 C. Braun Intertech
29
30 Motion by Marks , second by Wagner to approve a claim in the
31 amount of $1 , 19.2 . 00 to Braun Intertech for professional
32 services rendered for the pavement management and program
33 installation.
34
35 The City Manager advised that the complete report on the
36 pavement management has been received from Braun Intertech.
37
38 Motion carried unanimously
39
40
41 D. Calgon Carbon Corporation
42
43 Motion by Wagner, second by Marks to approve a claim in the
44 amount of $85, 380 . 00 to Calgon Carbon Corporation.
45
46 In response to a question from Mr. Frank Budnicki , a resident
47 of St . Anthony, the City Manager advised that this charge
48 reflects a twelve month period of service. He noted that these
49 charges are not taken from property taxes but rather 'are
50 reimbursed by the Army. This financial obligation was
•
I
i
1 REGULAR COUNCIL MEETING
• AUGUST 11 , 1992
PAGE 5
4
5
6
7 determined through a lawsuit brought by the City against the
8 Army.
9
10 The filtration system is expected to be completely cleaned in
11 twenty years . The first ten years of charges are eighty
12 percent reimbursed.
13
14 Motion carried unanimously
15
16 E. Verified Claims
17
18 Motion by Wagner, second by Marks to approve the two and one
19 half pages of verified claims as submitted by the Finance
20 Director.
21
22 Motion carried unanimously
23
24
25 7 . REPORTS
26
A. Report by Jeff Hansen - Pahl Avenue Resident
Mr. Hansen stated his purpose in appearing before the City
30 Council is to respond to some statements made by his neighbor,
31 Mr. Tom Hoban., at the July 28th Council Meeting. His intent is
32 to also respond to some inaccurate information which appeared
33 in the August 4th edition of the Focus newspaper and the
34 August 5th edition of the Bulletin newspaper.
35
36 Mr. Hansen prefaced his remarks by stating that his roommate,
37 Glenn Brown, had no involvement with the activities noted by
38 Mr. Hoban.
39
40 He feels much of the problems which were addressed by Mr.
41 Hoban resulted from failure to communicate involving the
42 neighbors , his landlord, city staff and himself .
43
44 Mr. Hansen addressed the issues of his parking his vehicle for
45 long periods of time in front of his neighbors ' homes ; a
46 refrigerator left outside on his property; washing of his
47 vehicles ; and a potential health hazard from chemicals which
48 residents claimed were on his property.
49
50
•
I
1 REGULAR COUNCIL MEETING
2 AUGUST 11 , 1992
3 PAGE 6
4
5
6
7 He noted that when one of his neighbors mentioned the long
8 term parking of his vehicles in front of her home he has
9 ceased that activity. Noting that he is also concerned with
10 safety, Mr. Hansen stated he left the refrigerator on his
11 property only one day. He was advised that five complaints had
12 been received about this appliance by the Police Department ,
13 with some of the complaints coming after it had been removed.
14
15 Mr. Hansen contacted the Minnesota Department of Agriculture
16 regarding the possible health hazard which could result from
17 the residue coming from his washing of vehicles. He was
18 advised this residue involved no health hazard as it was
19 diluted.
20
21 Some complaints had been made regarding the 100 gallon drums
22 of Purac. Mr . Hansen corrected the capacity of the drums to
23 fifty-five gallons . Purac is eighty-eight percent lactic acid
24 which is sour milk. He is using the drums to store recycled
25 aluminum and they do not contain Purac.
26
27 Regarding the light on the top of his truck, Mr'. Hansen stated •
28 this was used only once to perform an experiment for an
29 astronomy class .
30
31 Mr. Hoban had also charged that Mr . Hansen had used a chipper
32 to chip some trees . Mr. Hansen stated he does not own a
33 chipper nor has used one on his property. Regarding the bottle
34 rocket incident , Mr. Hansen said he was not at home when this
35 incident occurred.
36
37 Mr. Hoban felt the Police Department was not doing its job
38 regarding his complaints of Mr . Hansen' s activities . Mr.
39 Hansen disagreed with this assessment and felt they had been
40 doing what they are supposed to be doing.
41
42 Mr. Hansen stated he does not appreciate Mr. Hoban' s .constant
43 surveillance of his activities, both at his home and at
44 various work sites . He . has found the incorrect and untrue
45 statements made by Mr. Hoban annoying and feels the statement
46 "Renters run down the community" unfair to him as a renter.
47 He also felt his accuracy as to when the business equipment
48 was removed from his property was questioned by Councilmember
49 Fleming.
50
1 REGULAR COUNCIL MEETING
0 AUGUST 11 , 1992
PAGE 7
4
5
6
7 Mr. Hansen has lived in St . Anthony for twenty -three years
8 and has been actively involved in community affairs . He serves
9 as a Fire Department volunteer, was employed on a seasonal
10 basis by the City' s Public Works Department for eight years,
11 and had participated in the Chamber of Commerce Lighting
12 Contest for three years .
13
14 Councilmember Fleming suggested that Mr. Hansen did not
15 respond to the first letter from the City dated April 23, 1992
16 in a timely manner and noted that a second letter was sent on
17 May 27 , 1992 regarding removal of equipment .
18
19 Councilmember Marks inquired if all of Mr. Hansen ' s business
20 equipment is completely removed from his house and the
21 property. Mr. Hansen responded that it has all been removed as
22 of July 15, 1992 . The refrigerator is also removed.
23
24 Councilmember Wagner commended Mr. Hansen on making his
25 statements and felt it was well worth it to set the record
26 straight .
0 B. Council Reports
29
30 1 . Report of Councilmember Wagner
31
32 Councilmember Wagner had nothing to report at this time.
33
34 2 . Report of Councilmember Fleming
35
36 Councilmember Fleming reported that the Village Fest
37 wrap-up meeting and supper was held on August 10th.
38
39 She noted that some very critical and positive
40 suggestions were made to improve the Village Fest next
41 year. She reinforced her statement to reflect there will
42 definitely be a Village Fest held in 1993.
43
44 The profit made from this year ' s celebration is yet to be
45 determined.
46
47 The Police Chief attended the wrap-up meeting and
48 reported there were no problems during the Village Fest .
49 It had been recommended the Kiddie Parade be held on
50 Silver Lake Road next year.
•
1 REGULAR COUNCIL MEETING
2 AUGUST 11 , 1992
3 PAGE 8
4
5
6 A Volunteer Thank You Party is scheduled at Mayor
7 Ranallo' s home.-
8
9 3 . Report of Councilmember Marks
10
11 Councilmember Marks thanked all of the staff who worked
12 so diligently to host the visitors from Salo, Finland. He
13 also recognized the work of the members of the Sister
14 City Committee.
15
16 No wrap-up meeting has been scheduled for the Sister City
17 Committee, but Councilmember Marks expects this to be
18 scheduled within a month.
19
20 4 . Report -o- Mayor Ranallo
21
22 Mayor Ranallo has received many phone calls from
23 residents of Northeast Minneapolis regarding comments
24 made by a resident of St . Anthony which included the
25 phrase "Northeast Creeping Crud" and appeared in local
26 newspapers .
27
28 He wanted the record to reflect this comment was not made
29 by a city official and he apologized to all of the
30 callers .
31
32
33 C. Report of the City Manager
34
35 The City Manager advised that all of the playback
36 equipment for the City' s cable system has been received.
37 He is presently seeking tapes which would be appropriate
38 to play on the community access channel .
39
40
. 41 8 . NEW BUSINESS
42
43 A. Proposed Election Judge List for the State Primary
44 Election
45
46 Motion by Marks , second by Wagner to approve the list of
47 judges for the September 15, 1992 State Primary Election as
48 submitted by the City Clerk.
49
50 Motion carried unanimously
•
1 REGULAR COUNCIL MEETING
AUGUST 11 , 1992
PAGE 9
4
5
6 B. Ordinance No 1992-007 ; Re: Storm Water Utility (First
7 Readina)
8
9 The City Manager advised that the purpose of establishing this
10 storm water utility fund is when .projects need to be done
11 regarding storm water funds will be available. It is the
12 feeling of the Council that this type of dedicated fund is
13 more equitable than assessing benefitted property owners . The
14 assessments would be very costly for property owners.
15
16 The City Manager felt the proposed rates should be ready by
17 the time the ordinance receives its second reading. A flat
18 rate is being proposed for residential property and a
19 different charge, such as by acreage, is being considered for
20 larger properties such as shopping centers and large apartment
21 buildings .
22
23 A storm drainage plan is mandated by the State of Minnesota.
24
25 The City Manager suggested uses for some of these dedicated
26 funds could be the diversion of water going into Silver Lake,
general replacement and repair of roads and possible
replacement of storm sewers, correction of problems
9 associated with Highcrest , 31st Avenue and the Mirror Lake
30 spillway, maintenance of Silver Lake and Mirror Lake, future
31 purchase of land for holding ponds, and installation of
32 appropriate sewer . system size. The City Manager also noted
33 that this fund could be used to bond against .
34
35 Dennis Cavanaugh, 2909 St . Anthony Boulevard, drafted a list
36 of comments and questions regarding the proposed storm water
37 drainage utility. The draft addressed such matters as the
38 authority to establish a storm water drainage utility,
39 expansion of the present taxing authority to cover the
40 operation of the present sewer system, . land use, exemptions,
41 adjustments , public hearing notices, need for this utility,
42 establishments of rates for residential and commercial
43 properties , development of a master storm drainage plan and
44 disposition of funds received from this utility.
45
46 Mr . Cavanaugh was of the opinion that State Statute does not
47 grant the City the authority to establish a storm water
48 drainage utility. The City Attorney responded that the statute
49 authorizes various utilities and drainage utilities and
50 charges for same.
•
1 REGULAR COUNCIL MEETING
2 AUGUST 11 , 1992
3 PAGE 10
4
5
6
7 Mr. Cavanaugh stated he sees the uti 1 i ty as just another layer
8 of taxes and requested the ordinance be tabled.
9
10 The City Attorney advised he will review Mr. Cavanaugh ' s
11 written comments and consider the affect of these comments on
12 the ordinance before the second reading.
U Councilmember Marks requested a clarification of the hearing
15 notice requirement as stated in the ordinance.
16
17 Councilmember Wagner responded to Mr. Cavanaugh' s draft of
18 comments in observing that he had interpreted the ordinance in
19 a way in which it was not intended. The Councilmember
20 suggested that by mentioning some projects which could be done
21 with funds from this utility did not mean that they were
22 guaranteed to be done. He felt that in time some of the fund
23 could be used to reduce assessments.
24
25 The City Manager felt the storm sewer system fund had been
26 neglected in the past years . He thinks the establishment of
27 this fund could avoid hills and valleys in taxes to fund
28 projects .
29
30 Mayor Ranallo recalled that the Council had received criticism
31 in the past in not reacting faster in alleviating water
32 problems. He thinks this slow reaction was a direct reflection
33 on there being no funds available to make corrections. Also,
34 the Council was held to a three percent cap on tax increases .
35
36 Councilmember Marks noted that Mr. Cavanaugh raised an issue
37 of storm water runoff . He inquired if he were objecting to
38 combining managing runoff and establishing . this fund.
39
40 Mr. Cavanaugh responded that half of the recommended projects
41 were capital projects . He felt these projects can clearly be
42 defined as management projects in a soft definition and, would
43 leave a number of projects open for interpretation.
44
45 The City Manager noted that the issue of managing water is the
46 reponsibility of St . Anthony no matter from where the water is
47 shed. There is also the water quality issue. He stated that
48 the new EPA standards will soon force St . Anthony to comply
49 with. the same regulations as those of EPA for c.ities of -the
50 first class .
•
1 REGULAR COUNCIL MEETING
AUGUST 11 , 1992
PAGE 11
4
5 City Manager Burt stated that twenty-one percent of the
6 population in St . Anthony is sixty-five years or older. He
7 noted that senior citizens can predict stable costs and would
8 prefer to not have to deal with "swings" in taxes . He also
9 felt assessments are difficult to prove as to benefitting
10 property owners and that flat rates are more equitable.
11
12 It is the position of the City Manager that it is preferable
13 to have a constant revenue stream rather than try to do
14 projects by assessments or tax increases . He noted that to
15 maintain the City ' s current level of services may mean an
16 increase in property taxes .
17
18 Councilmember Marks felt the study done by Barr Engineering
19 was a very comprehensive study but indicated that there are
20 very limited options . He also felt the computer modelling was
21 very effective but if it were used to compute costs per
22 household, per project it could become very complicated.
23
24 Mr . Cavanaugh felt property owners should be advised of how
25 many problems and projects have been receiving deferred
26 maintenance. Councilmember Wagner stated that deferred
00 maintenance was not correct .
Councilmember Marks observed that the ordinance will supply a
30 certain amount of funding coming in each year. He inquired how
31 long it would take to go through the list of proposed
32 projects .
33
34 The City Manager felt it may be a very long time and that some
35 of the proposed projects would just be too expensive. He
36 thinks the first year may realize about $40 , 000 and he
37 anticipates that the first road project will be before the
38 Council this winter .
39
40 Councilmember Marks estimated that the funds received the
41 first year would probably cover the planning phase. The City
42 Manager concurred with this conclusion . Councilmember Marks
43 also felt this issue required a good deal more discussion
44 especially regarding planning.
45
46 Motion by Wagner, second by Marks to approve the first reading
47 of Ordinance No. 1992-007 ; being an ordinance establishing a
48 storm water drainage utility.
49
50 Motion carried unanimously
1 REGULAR COUNCIL MEETING
2 AUGUST 11 , 1992 •
3 PAGE 12
4
5
6 C. Bowlina Alley Appearance
7
8 Councilmember Fleming had recently visited the Walker
9 Apartments . While there she was advised by some of the
10 residents that the appearance of the rear of the building
11 where the bowling alley is housed is quite unsightly.
12
13 The back of this building is in essence the front yard for
14 those living in the Walker Apartments .
15
16 Some of the residents stated that last year this area had been
17 cleaned up and the brush' has been trimmed. So far this year
18 there appears to be no maintenance and the debris and
19 overgrown brush is a nuisance.
20
21 The City Manager advised that city crews had been in the area
22 this week.
23
24 Councilmember Fleming noted that some of the activity which
25 takes place in that area by both adults and children is less
26 than acceptable. She spoke to the Police Chief about some of
27 this activity and he agreed that the height of the brush makes •
28 it difficult to police the area.
29
30 Councilmember Fleming visited the owner of the bowling alley
31 to discuss the matter of cleaning up behind the building and
32 that some of the residents of the Walker Apartments are
33 disturbed with its appearance. He responded it is quite
34 expensive to keep this area groomed. She recommended it be
35 done more often and it may not be so expensive.
36
37 Councilmember Fleming stated she is planning to recommend that
38 a mural be painted on the bowling alley building which would
39 make it more aesthetically pleasing to the apartment
40 residents .
41
42 The potholes on Coolidge Avenue and the general disrepair of
43 the streets in the area were discussed. Although there is a
44 "No Thru Traffic" sign posted on the street , vehicles use it
45 as if it were for through traffic .
46
47 The City Manager advised that this street has been included in
48 the Pavement Management Plan.
49
50
1 REGULAR COUNCIL MEETING
0 AUGUST 11 , 1992
PAGE 13
4
5
6 Councilmember Fleming recalled there had been a fence in the
7 area at one time but it was removed by youngsters . She has
8 contacted Audrey Wagner regarding the Village Gardeners doing
9 something creative with the "triangle" piece of property.
10 Fixing up this area could be a volunteer project .
11
12 Councilmember Marks observed that there appears to be some
13 conflict for using this street for access to the shopping
14 center . He has personally seen little traffic activity
15 although there are numerous docks behind businesses in the
16 center where there is some truck traffic . He felt the owner of
17 the bowling alley could consider doing some landscaping.
18
19 The Mayor suggested that the path to the Town & Country Store
20 should be a consideration when improving this area.
21
22 D. Committee - Improvement of City Appearances/Standards
2.3
24 Councilmember Fleming recommended that a committee be formed
25 which would address City standards and the vision of the City.
26 Some examples of issues this committee could address would be
removal of substandard/abandoned houses , clean up of brush
around Rosie ' s Cafe, enhancement of the Neighborhood Crime
29 Watch Program, painting of areas around Silver Point Park,
30 etc. She noted there were no open houses for the National
31 Night Out in the City this year.
32
33 She felt the committee could have the flavor of a round table
34 which would discuss and resolve conflicts and the end result
35 would be ordinances which would be trimmed.
36
37 Councilmember Marks suggested this idea could be discussed at
38 the Council ' s annual planning session.
39
40 Mayor Ranallo felt what is being suggested for a committee is
41 what the City Council is supposed to be doing. The Council
42 should be addressing these problems when there is an awareness
43 that they exist . He was of the opinion that the City Council
44 would be moving its responsiblity to this committee.
45
46 Councilmember Fleming inquired as to the activity of the
47 City' s Human Rights Commission . Mayor Ranallo noted the
48 Commission had ceased functioning as there were not many
49 projects for it to address . It could have used_ some
50 revitalization.
1 REGULAR COUNCIL MEETING
2 AUGUST 11 , 1992
3 PAGE 14
4
5
6 10 . UNFINISHED BUSINESS
7
8 A. South End Moratorium Extension
9
10 A memo from the City Manager recommended a six month extension
11 of the south end moratorium.
12
13 He noted that much of the expansion plans of Roger Bona, owner
14 of the service station in the area, hinge on the alignment of
15 the roadway. He felt if Mr. Bona desires to do something on
16 his property this winter the matter can be brought before the
17 Council .
18
19 The appraisal for Rosie ' s Cafe was received today. The
20 appraisal for the Good Luck Cafe should be coming in shortly.
21
22 Councilmember Marks inquired if an extension for six months is
23 really needed. He is uneasy with what amounts to a one and one
24 half year moratorium.
25
26 The City Manager advised that there is a provision in the
27 ordinance whereby the moratorium can be terminated by the
28 Council at any time within that six months .
29
30 Roger Bona stated he has decided his- plans for the west side
31 of his building. He may need to shift his focus to the east
32 side of the building depending on if the roadway shifts . He
33 stated his intention is to add character to the building as
34 his property is part of the gateway to the City. Mr. Bona
35 noted he intends to work with the City very cooperatively and
36 needs no funding for his project .
37
38 When he purchased the adjoining meat market six years ago, Mr.
39 Bona replaced a worn fence with a rustic fence and resurfaced
40 the area. He feels these improvements have been beneficial to
41 the area.
42
43 Noting that Mr. Bona has been a good resident , the Mayor
44 inquired if he had any problem with the moratorium extension.
45
46 Mr. Bona noted that winter weather would prohibit most
47 improvements he has in mind but he stated he desires access
48 from the back of the meat market to his service station.
49
50
I REGULAR COUNCIL MEETING
AUGUST 11 , 1992
PAGE 15
4
5
6 The City Manager felt there were many issues which still need
7 to be addressed and that the six month extension would be very
8 helpful .
9
10 Motion by Fleming, second by Wagner' to extend the south end
11 moratorium for six months .
12
13 The City Manager requested Mr . Bona to bring in his plans for
14 the improvements to the service station and the meat market
15 project . The City Manager noted his concern with the
16 "temporary" nature of the meat market , the load bearing
17 structural wall and with the desired access to 27th Avenue.
18 The City Manager stated that 27th Avenue is being looked at as
19 a buffer from the abutting residential area.
20
21 Motion carried unanimously
22
23
24 B. Ordinance No 1992-006 , Re: Solid Waste (Third Readina)
25
26 Motion by Marks , second by Wagner to adopt Ordinance No. 1992-
006, being an ordinance requiring mixed municipal solid waste
collection for all residential and commercial properties
within the boundaries of the City of St . Anthony; amending the
30 1973 Code of Ordinances to add new subsections 560 . 06, 560 . 07 ,
31 and 560 . 08 .
32
33 Motion carried unanimously
34
35 On August 18th at 6 : 00 p.m. there will be a joint meeting
36 between the City Council and the Planning Commission in the
37 Council Chambers .
38
39 On August 25th at 6: 00 p.m. there will be a joint meeting
40 between the City Council and the School Board in Wilshire
41 School .
42
43 10 . ADJOURNMENT
44
45 Motion by Marks , second by Wagner to adjourn the meeting at
46 9 : 25 p.m.
47
48 Motion carried unanimously
49
50
1 REGULAR COUNCIL MEETING .
2 AUGUST 11 , 1992 •
3 PAGE 16 - ..
5
6
7 Respectfully submitted,
8
9
10 Jo-Anne Student ,- Council Secretary
it
12
13
14
15
16 Mayor Clarence Ranallo
17
18
19
20
21 ATTEST.
22 City Clerk
23
24 _-
25
26 _
27
28
29 -
30
31
32
33 :.
34
35
36
37
38
39
40
41-
42
43
44
45
46
47
48
49
50
Nwh1aff Norwest Bank Minnesota, N.A. Billing Statement
II1I1 Norwest Center
„BANK$ Sixth and Marquette Attn: Corporate Trust Operations
II Ivan Minneapolis, Minnesota 55479 -0113 612-667-0945
Sequential number
Important:Include this number when remitting payment 915 7 9 7
. Admin: CTO STAN1088GOSR Ninneapolis Separate
LTXMR:08/03/92-1306 R
Rev:1494:
CITY:OF ST. ANTHONY ' Collection-. No(s) :
CITY. CLERK -TREASURER M-08104/92-178
CITY_ HALL
33M SILVER :LAKE ROAD
ST- ANTHONY_ MN . 55418
*' Check: Payments : 0ue .3: Days.. Prior: to.�Payable. Date- *
* Wire 'Payments. Due :1 Day:Prior_to=Payable Date.
CITY. ST. .ANTHONY;MN GO SEWER :.- REVI- 10-1-88-
WIRING: INSTRUCTIONS: ABA. 091000019
- ACCOUNT 0840237
REFERENCE NUMBER: : . 4386
ATTN'. : . CORPORATE:TRUST..OPERATIONS
e0ebt Ser.vice. Payment . Due. 10/01/1992
:Registvred .Principal: $30.000.00
Registered .Interest $4.238.75
Please return the PINK copy with your payment.
———————————————————————————————————————————————————————————————————————
• PLEASE PAY - THIS AMOUNT----------------> _---$34238_75
A LATE FEE WILL BE ASSESSED IF YOUR PAYMENT DOES. NOT MEET THE REQUIRED
DEADLINE.
Return yellow copy with remittance
A'C 6,1163 OPR(6.35.1265)
HCSW2t7.e91 INVOICE NO. 20482
HENNEPIN COUNTY
• BUREAU OF PUBLIC SERVICE
320.WASHINGTON AVENUE SOUTH
HOPKINS, MINNESOTA 55343
BILLED TO: City of St. Anthony DATE August 10 19 -92-
8801 Silver Lake Road N.E. os , y � 9cy - �70
a � S�
St. Anthony, MN 55418
Attn: L. Hammer, Director of Public Works
DATE DESCRIPTION AMOUNT
City of St. Anthony's participation inAgreement No.
PW 34-89-89, County Project 8905 on CSAH 27 at 37th
Avenue Northeast
Contractor: Ridgedale Electric Inc.
Contract Amount: $337,413,00
City's share based on contract unit prices
Contract construction 25% of $69,100.00 - $17,275.00
County furnished materials 25% of
$12,000.00 3,000.00
Subtotal $20,275.00
Engineering @ 14% of $17,275.00 2,418.50
Total $22,693,50
90% of $22,693.50 and due on or before August 29, 1992 $20,424.15
Remittance by Check,Money Order,or Draft
Payable to: Hennepin County Treasurer
Hennepin County Bureau of Public Service
320 Washington Avenue South
Hopkins,Minnesota 55343
Attention: Alice Markham
WHITE - ORIGINAL CANARY ALPHA PINK - FINANCE GOLD - ACCOUNTING
FTDEPARTMENT OF PUBLIC WORKS
320 Washington Avenue South
HENNEPIN Hopkins, Minnesota 55343-8468
PHONE: (612) 930-2500
LFU FAX (612) 930-2513
TDD: (612) 930-2696
August 10, 1992
Mr. Larry Hammer, Director of Public Works
City of St. Anthony
8801 Silver Lake Road, N.E.
St. Anthony, MN 55418
AGREEMENT NO. PW 34-89-89
COUNTY PROJECT 89.05 ON CSAH 27
AT 37TH AVENUE NORTHEAST
TRAFFIC SIGNAL
Dear Mr. Hammer:
The Hennepin County Board of Commissioners awarded the contract for the above
referenced project to the low bidder, Ridgedale Electric, Inc. , Long Lake, MN.
The contract amount is $337,413.00. The award date was June 30, 1992 and the
approval date was July 31, 1992. The surety company is Fidelity Deposit
Company of Maryland.
We have enclosed in reference to the above agreement:
1 . A copy of the Abstract of Bids.
2. A copy of the initial division of cost between the City and the County.
3. Invoice No. 20482 in the amount of $20,424.15 for 90% of the City's
estimated cost share of contract construction, County furnished
signal materials and engineering as per terms of the agreement.
Sincerely,
i
Luther D. Nelson, P.E.
Construction Engineer
LDN/JFB:srn
Enclosure
HENNEPIN COUNTY
an equal opportunity employer
• Barr
Engineering Company Page # 1
Invoice # 13415-3360
8300 Norman Center Drive Project # 23/27-522
Minneapolis,MN 55437.1026
Phone: (612)832.2600 July 20, 19 9 2
Fax: (612)835-0186
City Of St. Anthony
3301 Silver Lake Road
Minneapolis, MN 55418
Attn: Larry Hamer
RE: Highcrest Street Outlet
Statement of Account with
BARR ENGINEERING CO.
For professional services during the period of
March 1, 1992 through June 27, 1992
Measurement of final quantities; estimate value of completed work; preparation
• of deficiencies list.
Dana R. Gauthier, Professional Engineer
3.0 hours @ $70.00 per hour . . . . . . . . $ 210.00
Technical
2.0 hours @ $25.00 per hour . . . . . . . . $ 50.00
Administrative
0.8 hours @ $35.00 per hour . . . . . . . $ 28.00
Expenses
Mileage . . . . . . . . . . . . . . . . $ 6.60
Total Payable $ 294.60
Dennis E. Palmer
•
ESTIMATE FOR PAYMENT ON CONTRACT
1-31-92
DATE 7-1-9 2 ESTIMATE NO. 2 & t NAWR PERIOD FROM TO 7-1-92
FINAL
*NER:__ CITY OF ST. ANTHONY FILE NO.
NAME AND NATURE OF PROJECT HIGHCREST STREET STORM SEWER
COMPLETED AFTER THIS ESTIMATE 100
ORIGINAL CONTRACT AMOUNT. . . . . . . . . . . . . . . . . . . . . . . . .$ 43,040.00
Change Orders:
No. Date Approved Additions Deductions OLc 4- c G P7
(*mod N
Q Rot e^
Total Additions. . . . . . . . . . . . . . . . . . . . . . . $
Sub Total. . . . . . . . . . . . . . . . . . . . . . . . . . $
Total Deductions. . . . . . . . . . . . . . . . . . . $ A -040-00
Contract Amount to Date. . . . . . . . . . . . . . . . . . . . . . . . . $
Total Completed to Date. . . . . . . . . $ 46,844.00
Materials Stored. . . . . . . . . . . . . . . . . . . . . . $ 0
loptal Completed and Stored. . . . . . $-463844.00
Less Retaina;e 0 %• $ 0
Total *Earned Less Retainage. . . . . $ 46,844.00
Less Previous Payments. . . $ 38,285.00
Est. No. 1 Amt. 38, 285.00
Est. No. Amt.
Est, No. Amt.
Total Estimates 38, 285.00
AMOUNT DUE THIS ESTIMATE. $ 8, 559.00
Payment requested this 8 day of JULY
.19 92
F.F. JEDLICKI ,_INC.
Contct
By_--! ��
Maier Stewart & Associates
1959 Sloan Place
St. Paul, Minnesota 55117
Invoice number 7799
August 11, 1992
Page number 1
Project 490-009-20 WATER SYTEM
PLANS & SPECIFICATIONS
City of St. Anthony
Mr. Roger Larson
3301 Silver Lake Road
St. Anthony, MN 55418
For Engineering Services Rendered From June, 28 through August 1, 1992
-----------------------------------------------------------------------
Professional Services Hours Rate Multiplier Amount
--------------------- ------- ------ ---------- ----------
Principal Engineer
• Thomas J. Madigan
Project Design
7-18-92 3 . 00 28 . 42 2.45 208. 89
7-25-92 8. 00 28. 42 2.45 557 . 03
8-01-92 1 . 00 28.42 2.45 69 . 63
Registered Professional Engr.
Virgil G. Hawkins
Project Meeting
7-18-92 3 . 00 20 . 28 2.45 149 . 06
Chester J. Harrison
Plan & Plat Review
8-01-92 1 . 00 29 . 26 2. 45 71 . 69
Word Processor
Kimberly C. Schloemer
Pay Estimates
7-18-92 . 25 15 . 52 2 .45 9 . 51
7-25-92 . 25 15 . 52 2.45 9 . 51
Clerical
Barbara K. Shaw
Clerical
7-18-92 1 .75 11 . 24 2.45 48 . 19
7-25-92 3 . 00 11 . 24 2.45 82 . 61
Invoice number 7799
. August 11, 1992
Page number 2
Project 490-009-20 WATER SYTEM
-----------------------------------------------------------------------
Professional Services Hours Rate Multiplier Amount
---=----------------- ------- ------ ---------- ----------
Staff Labor Expense: 21. 25 1, 206. 12
Direct Expenses Amount
PHOTOCOPYING
8-01-92 20. 25
REPRODUCTION
8-01-92 55 . 60
PERSONAL TRUCK
7-18-92 12. 30
COMPANY TRUCK
7-18-92 6. 00
Direct Expenses Total: 94 . 15
•
Invoice Total: 1, 300 . 27
NOTICE OF PUBLIC HEARING ON PROPOSED
REDEVELOPMENT PLAN AND
TAX INCREMENT FINANCING PLAN .
OF THE HOUSING AND REDEVELOPMENT AUTHORITY
OF THE CITY OF ST. ANTHONY, MINNESOTA
NOTICE IS HEREBY GIVEN that the City Council of-the City of St.
Anthony (the "City") will hold a public hearing on a proposed Redevelopment Plan
(the "Redevelopment Plan") and Tax Increment Financing Plan (the "Financing
Plan") of the Housing and Redevelopment Authority of St. Anthony (the "HRA") at
7:30 p.m. on Tuesday, August 25, 1992, in the City Council Chambers, City
Administrative Offices in the City of St. Anthony, Minnesota.
Under the proposed Redevelopment Plan the City and HRA would
undertake certain activities in connection with the redevelopment of Apache Plaza
Shopping Center located at 37th Avenue Northeast and Silver Lake Road in the
City. The Financing Plan will establish a tax increment financing district (the
"District") and provide for the payment of certain costs incurred directly by the HRA
and the City related to the redevelopment of Apache Plaza Shopping Center or the
reimbursement to the owner of Apache Plaza Shopping Center of certain
redevelopment costs paid by such owner.
Accompanying this notice is a map showing the area proposed to be
included in the District which is the area from which tax increments may be
collected and the area in which it may be expended.
All who wish to be heard as to the Redevelopment Plan and the
Financing Plan will be given an opportunity to express their views at the time of the
public hearing or may file written comments with the City Manager prior to the
public hearing.
Publish: August 12, 1992 By /s/Thomas Burt
City Manager
of i
o � '
,L
1,TM NLMIL 4
0
�
o .
• Member . introduced the following
resolution and moved its adopted:
RESOLUTION NO. 92-040
RESOLUTION APPROVING REDEVELOPMENT PLAN
FORREDEVELOPMENT PROJECT AREA NO. 3 -
RAMSEY COUNTY AND THE REDEVELOPMENT PROJECT
TO BE UNDERTAKEN PURSUANT THERETO AND
TAX INCREMENT FINANCING PLAN FOR TAX
INCREMENT FINANCING DISTRICT NO. 3 - RAMSEY
COUNTY, AND MAKING FINDINGS WITH RESPECT
THERETO
BE IT RESOLVED by the City Council of the City of St. Anthony,
Minnesota as follows:
1. The Housing and Redevelopment Authority in and for the City of
St. Anthony (the HRA) has approved a redevelopment plan, as defined in
Minnesota Statutes, Section 469.002, subdivision 16, designated as Redevelopment
Plan for Redevelopment Project Area No. 3 - Ramsey County (the Redevelopment
Plan), and a redevelopment project, as defined in Minnesota Statutes, Section
• 469.002, subdivision 14, to be undertaken pursuant thereto, designated as
Redevelopment Project No. 3 - Ramsey County (the Redevelopment Project), and in
order to finance the public redevelopment costs to be incurred by the HRA in
connection with the Redevelopment Plan and Redevelopment Project, the HRA
has approved a tax increment financing plan, pursuant to Minnesota Statutes,
Section 469.175, designated as Tax Increment Financing Plan (the Financing Plan)
which establishes a tax increment financing district, as defined in Minnesota
Statutes, Section 469.174, subdivision 9, designated as Tax Increment Financing
District No. 3 - Ramsey County (the District). The HRA has requested that this
Council approve the Redevelopment Plan, Redevelopment Project and Financing
Plan following a public hearing thereon. The HRA has furnished to this Council a
copy of the Redevelopment Plan and Financing Plan and the written opinion of the
City Planning Commission as to the Redevelopment Plan, the Redevelopment
Project and the Financing Plan, and this Council on August 25, 1992, held a public
hearing on the same after notice of the public hearing was published in-the official
newspaper of the City, not less than 10 days prior to the date of the hearing. All
persons desiring to be heard.-were heard.
2. The Redevelopment Plan, Redevelopment Project, Financing Plan
and establishment of the District are hereby approved.
- 3. .This Council finds that the District is a redevelopment district
• within the scope of Minnesota. Statutes, Section 469.174, subdivision 10, for the
following reasons: (i) parcels consisting of 70% of the area in the District are
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• Passed by the Council this 25th day.of August, 1992.
Mayor
Attest:
City Clerk
City Manager
The motion for the adoption of the foregoing resolution was duly
seconded by Member and upon vote being taken
thereon, the following voted in favor thereof:
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted, and was signed by
the Mayor, whose signature was attested by the City Clerk.
r
OFFICIAL STATEMENT DATED AUGUST 11, 1992
I ,
NEW ISSUE Rating: Not Rated
In the opinion of Dorsey & Whitney. Bond Counsel, on the basis of laws in effect on the date of issuance of the
Bonds,interest on the Bonds is not includable in gross income of the recipient for federal income tax putposes or in
taxable net income of individuals, estates and trusts for Minnesota income tax purposes, but is includable in taxable
I income of corporations and financial institutions for purposes of the Minnesota franchise tax. (For a discussion of
related issues see°Tax Exemption"herein.)
$405,000
City of St. Anthony, Minnesota
Liquor Store Revenue Refunding
Bonds, Series 1992A
Dated Date: October 1, 1992 Interest Due: Each January 1 and July 1,
commencing July 1, 1993
The Bonds will mature January 1 as follows:
1994 $70,000 1996 $80,000 1998 $90,000
1995 $80,000 1997 $85,000
The Bonds will not be subject to payment in advance of their respective stated maturity dates.
The Bonds will be special obligations of the City payable solely from net revenues of the City's
municipal liquor stores and shall not constitute a debt for which the faith and credit or taxing
powers of the City will be pledged. The proceeds of this Issue will be used to refund all of the
outstanding bonds maturing in the years 1994-1998 of the City's Liquor Store Revenue Bonds,
Series 1987.
Proposals shall be for not less than $400,140 and accrued interest on the total principal
amount of the Bonds and must be accompanied by a good faith deposit in the form of a
certified or cashier's check or a Financial Surety Bond in the amount of $4,500, payable to the
order of the City. Rates shall be specified in integral multiples of 5/100 or 1/8 of 1% and must
be in ascending order.
The Bonds will be bank-qualified tax-exempt obligations pursuant to Section 265(b)(3) of the
Internal Revenue Code of 1986, as amended, and will not be subject to the alternative minimum
tax for individuals.
The Bonds will be issued in integral multiples of $5,000, as requested by the Purchaser, and
will be fully registered as to principal and interest. The Bonds will be delivered without cost to
the Purchaser within 40 days following the date of their award. The City will name the Registrar
and pay for registration services.
PROPOSALS RECEIVED: August 25, 1992 (Tuesday) at 11:00 A.M., Central Time
AWARD: August 25, 1992 (Tuesday) at 7:30 P.M., Central Time
Further information may be obtained from
SPRINGSTED SPRINGSTED Incorporated, Financial Advisor to
the Issuer,85 East Seventh Place,Suite 1.00,Saint
PUBLIC FINANCE ADVISORS Paul,Minnesota 55101 (612)223-3000.
'4
For purposes of compliance with Rule 15c2-12 of the Securities and Exchange Commission,
this document, as the same may be supplemented or corrected by the Issuer from time to time
(collectively, the "Official Statement"), may be treated as an Official Statement with respect to
the Obligations described herein that is deemed final as of the date hereof (or of any such
supplement or correction) by the Issuer, except for the omission of certain information referred
to in the succeeding paragraph.
The Official Statement, when further supplemented by an addendum or addenda specifying the
maturity dates, principal amounts and interest rates of the Obligations, together with any other
information required by law, shall constitute a "Final Official Statement" of the Issuer with
respect to the Obligations, as that term is defined in Rule 15c2-12. Any such addendum shall,
on and after the date thereof, be fully incorporated herein and made a part hereof by reference.
By awarding the Obligations to any underwriter or underwriting syndicate submitting a Proposal
therefor, the Issuer agrees that, no more than seven business days after the date of such
award, it shall provide without cost to the senior managing underwriter of the syndicate, to
which the Obligations are awarded copies of the Official Statement and the addendum or
addenda described in the preceding paragraph in the amount specified in the Terms of
Proposal.
The Issuer designates the senior managing underwriter of the syndicate to which the
Obligations are awarded as its agent for purposes of distributing copies of the Final Official
Statement to each Participating Underwriter. Any underwriter delivering a Proposal with
respect to the Obligations agrees thereby that if its bid is accepted by the Issuer (i) it shall
accept such designation and (ii) it shall enter into a contractual relationship with all
Participating Underwriters of the Obligations for purposes of assuring the receipt by each such
Participating Underwriter of the Final Official Statement.
No dealer, broker, salesman or other person has been authorized by the Issuer to give any
information or to make any representations with respect to the Obligations other than as
contained in the Official Statement or the Final Official Statement, and, if, given or made, such
other information or representations must not be relied upon as having been authorized by the
Issuer. Certain information contained in the Official Statement and the Final Official Statement
may have been obtained from sources other than records of the Issuer and, while believed to
be reliable, is not guaranteed as to completeness or accuracy. THE INFORMATION AND
EXPRESSIONS 'OF OPINION IN THE OFFICIAL STATEMENT AND THE FINAL OFFICIAL
STATEMENT ARE SUBJECT TO CHANGE, AND NEITHER THE DELIVERY OF THE OFFICIAL
STATEMENT OR THE FINAL OFFICIAL STATEMENT NOR ANY SALE MADE UNDER EITHER
SUCH DOCUMENT SHALL CREATE ANY IMPLICATION THAT THERE HAS BEEN NO CHANGE
IN THE AFFAIRS OF THE ISSUER SINCE THE DATE THEREOF.
References herein to laws, rules, regulations, resolutions, agreements, reports and other
documents do not purport to be comprehensive or definitive. All references to such
documents are qualified in their entirety by reference to the particular document, the full text of
which may contain qualifications of and exceptions to statements made herein. Where full texts
have not been included as appendices to the Official Statement or the Final Official Statement,
they will be furnished on request.
TABLE OF CONTENTS
Page Us
Terms of Proposal
...................................................................................................................... i-iii
Scheduleof Bond Years ........................................................................................................... iv
Introductory Statement .............................................................................................................. 1
Authorityand Purpose .............................................................................................................. 1
Securityand Financing ............................................................................................................. 1-2
Liquor Store Funds and Accounts ........................................................................................... 2-3
AdditionalBonds ....................................................................................................................... 3
Audited Financial Statements and Coverage Statement ....................................................... 3
FutureFinancing ........................................................................................................................ 3
Litigation ..................................................................................................................................... 3
Legality ....................................................................................................................................... 3-4
TaxExemption ........................................................................................................................... 4
Bank-Qualified Tax-Exempt Obligations .................................................................................. 5
FinancialAdvisor ....................................................................................................................... 5
Certification ................................................................................................................................ 5
CityProperty Values .................................................................................................................. 6-7
CityIndebtedness ...................................................................................................................... 8-10
City Tax Rates, Levies and Collections .... 10-11
Funds on Hand .....................
General Information Concerning the City ................................................................................ 11-13
Governmental Organization and Services ............................................................................... 13-14
Proposed Form of Legal Opinion .................:................................................................. Appendix I
Pertinent Sections of the Resolution for
the1987 Bonds ............................................................................................................ Appendix II
Pertinent Sections of the Resolution Relating To
$405,000 Liquor Store Revenue Refunding Bonds, Series 1992A:
Awarding the Sale, Fixing the form and Details, Providing for the
Execution and Delivery Thereof and the Security Therefor ...................................... Appendix III
Liquor Fund Financial Statements ................................................................................. Appendix IV
ProposalForms ............................................................................................................... Attached
THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE
ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS:
TERMS OF PROPOSAL
$405,000
CITY OF ST. ANTHONY, MINNESOTA
LIQUOR STORE REVENUE REFUNDING
BONDS, SERIES 1992A
Proposals for the Bonds will be received by Springsted Incorporated on behalf of the City on
Tuesday, August 25, 1992, until 11:00 A.M., Central Time, at the offices of Springsted
Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota, after which time they
will be opened and tabulated. Consideration for award of the Bonds will be by the City Council
at 7:30 P.M., Central Time, of the same day.
DETAILS OF THE BONDS
The Bonds will be dated October 1, 1992, as the date of original issue, and will bear interest
payable on January 1 and July 1 of each year, commencing July 1, 1993. Interest will be
computed on the basis of a 360-day year of twelve 30-day months. The Bonds will be issued in
the denomination of $5,000 each, or in integral multiples thereof, as requested by the
purchaser, and fully registered as to principal and interest. Principal will be payable at the main
corporate office of the registrar and interest on each Bond will be payable by check or draft of
the registrar mailed to the registered holder thereof at the holder's address as it appears on the
books of the registrar as of the close of business on the 15th day of the immediately preceding
month.
The Bonds will mature January 1 in the years and amounts as follows:
1994 $70,000 1996 $80,000 1998 $90,000
1995 $80,000 1997 $85,000
OPTIONAL REDEMPTION
The Bonds will not be subject to payment in advance of their respective stated maturity dates.
SECURITY AND PURPOSE
The Bonds will be special obligations of the City payable solely from net revenues of the City's
municipal liquor stores and shall not constitute a debt for which the faith and credit or taxing
powers of the City will be pledged. The proceeds will be used to refund all the outstanding
Bonds maturing in the years 1994-1998 of the City's Liquor Store Revenue Bonds, Series 1987.
TYPE OF PROPOSALS
Proposals shall be for not less than $400,140 and accrued interest on the total principal
amount of the Bonds. Proposals shall be accompanied by a Good Faith Deposit ("Deposit") in
the form of a certified or cashier's check or a Financial Surety Bond in the amount of $4,500,
payable to the order of the City. If a check is used, it must accompany each proposal. If a
Financial Surety Bond is used, it must be from an insurance company licensed to issue such a
bond in the State of Minnesota, and preapproved by the City. Such bond must be submitted to
- i -
Springsted Incorporated prior to the opening of the proposals. The Financial Surety Bond
must identify each underwriter whose Deposit is guaranteed by such Financial Surety Bond. If
the Bonds are awarded to an underwriter using a Financial Surety Bond, then that purchaser is
required to submit its Deposit to Springsted Incorporated in the form of a certified or cashier's
check or wire transfer as instructed by Springsted Incorporated not later than 3:30 P.M.,
Central Time, on the next business day following the award. If such Deposit is not received by
that time, the Financial Surety Bond may be drawn by. the City to satisfy the Deposit
requirement. The City will deposit the check of the purchaser, the amount of which will be
deducted at settlement and no interest will accrue to the purchaser. In the event the purchaser
fails to comply with the accepted proposal, said amount will be retained by the City. No
proposal osal can be withdrawn or amended after the time set for receiving,proposals osals unless the
meeting of the City scheduled for award of the Bonds is adjourned, recessed, or continued to
another date without award of the Bonds having been made. Rates shall be in integral
multiples of 5/100 or 1/8 of 1%. Rates must be in ,ascending order. Bonds of the same
maturity shall bear a single rate from the date of the Bonds to the date of maturity. No
conditional proposals will be accepted.
AWARD
The Bonds will be awarded on the basis of the lowest dollar interest cost to be determined by
the deduction of the premium, if any, from, or the addition of any amount less than par, to the
total dollar interest on the Bonds from their date to their final scheduled maturity. The City's
computation of the total net dollar interest cost of each proposal, in accordance with customary
practice, will be controlling.
REGISTRAR
The City will name the registrar which shall be subject to applicable SEC regulations. The City .F
will pay for the services of the registrar.
CUSIP NUMBERS
If the Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the
Bonds, but neither the failure to print such numbers on any Bond nor any error with respect
thereto will constitute cause for failure or refusal by the purchaser to accept delivery of the
Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers
shall be paid by the purchaser.
SETTLEMENT
Within 40 days following the date of their award, the Bonds will be delivered without cost to the
purchaser at a place mutually satisfactory to the City and the purchaser. Delivery will be
subject to receipt by the purchaser of an approving legal opinion of Dorsey & Whitney of
Minneapolis, Minnesota, which opinion will be printed on the Bonds, and of customary closing
papers, including a no-litigation certificate. On the date of settlement payment for the Bonds
shall be made in federal, or equivalent, funds which shall be received at the offices of the City
or its designee not later than 12:00 Noon, Central Time. Except as compliance with the terms
of payment for the Bonds shall have been made impossible by action of the City, or its agents,
the purchaser shall be liable to the City for any loss suffered by the City by reason of the
purchaser's non-compliance with said terms for payment.
OFFICIAL STATEMENT
The City has authorized the preparation of an Official Statement containing pertinent
information relative to the Bonds, and said Official Statement will serve as a nearly-final Official
Statement within the meaning of Rule 15c2-12 of the Securities and Exchange Commission.
- ii -
For copies of the Official Statement or for any additional information, prior to sale, any
prospective purchaser is referred to the Financial Advisor to the City, Springsted Incorporated,
85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101, telephone (612) 223-3000.
The Official Statement, when further supplemented by an addendum or addenda specifying the
maturity dates, principal amounts and interest rates of the Bonds, together with any other
information required by law, shall constitute a "Final Official Statement" of the City with respect
to the Bonds, as that term is defined in Rule 15c2-12. By awarding the Bonds to any
underwriter or underwriting syndicate submitting a proposal therefor, the City agrees that, no
more than seven business days after the date of such award, it shall provide without cost to the
senior managing underwriter of the syndicate to which the Bonds are awarded 50 copies of the
Official Statement and the addendum or addenda described above. The City designates the
senior managing underwriter of the syndicate to which the Bonds are awarded as its agent for
purposes of distributing copies-of the Final Official Statement to each Participating Underwriter.
Any underwriter delivering a proposal with respect to the Bonds agrees thereby that if its
proposal is accepted by the City (i) it shall accept such designation and (ii) it shall enter into a
contractual relationship with all Participating Underwriters of the Bonds for purposes of
assuring the receipt by each such Participating Underwriter of the Final Official Statement.
Dated July 28, 1992 BY ORDER OF THE CITY COUNCIL
/s/Thomas Burt
City Manager
SCHEDULE OF BOND YEARS
$405,000
CITY OF ST. ANTHONY, MINNESOTA
LIQUOR STORE REVENUE REFUNDING BONDS, SERIES 1992A
Cumulative
Year Principal Bond Years Bond Years
1994 $70,000. 87.5000 87.5000
1995 $80,000 180.0000 267.5000
1996 $80.,000 260.0000 527.5000
1997 $85,000 361 .2500 888.7500
1998 $90,000 472.5000 1 ,361 .2500
Average Maturity: 3.36 Years
Bonds Dated: October 1 , 1992
Interest Due: July 1 , 1993 and each January 1 and July 1 to maturity.
Principal Due: January 1 , 1994-1998 inclusive.
Optional Call: None.
- iv -
(This page was left blank Intentionally.)
OFFICIAL STATEMENT
$405,000
CITY OF ST. ANTHONY, MINNESOTA
LIQUOR STORE REVENUE REFUNDING BONDS, SERIES 1992A
Introductory Statement
This Official Statement contains certain information relating to the City of St. Anthony,
Minnesota (the "City") and its issuance of $405,000 Liquor Store Revenue Refunding Bonds,
Series 1992A (the "Bonds" or the "Issue"). The Bonds will be special obligations of the City
payable solely from net revenues of the City's municipal liquor stores and shall not constitute a
debt for which the faith and credit or taxing powers of the City will be pledged.
Authority and Purpose
The Bonds are being issued pursuant to Minnesota Statutes, Section 426.19. The proceeds of
the Bonds, together with $69,000 the City will contribute from the Reserve Account on the 1987
Bonds, will be used to refund the 1994-1998 principal maturities, totaling $415,000, of the City's
$690,000 Liquor Store Revenue Bonds, Series 1987, dated July 1, 1987 (the 1987 Bonds" or
the "Refunded Bonds"). The 1994-1998 maturities of the 1987 Bonds will be called for
redemption by the City on January 1, 1993 at a price of par. The January 1, 1993 principal and
interest payment on the 1987 Bonds will be paid when due. The 1987 Bonds were originally
issued to finance the construction of improvements to one of the City's three municipal liquor
stores.
Security and Financing
The Bonds will be special obligations of the City payable solely from net revenues of the City's
municipal liquor stores and shall not constitute a debt for which the faith and credit or taxing
powers of the City will be pledged. Net revenues are defined as gross revenues less all
expenses of operation and maintenance, including a reasonable reserve for emergencies. The
City anticipates a net savings of approximately $19,300 due to the refunding. This Issue has
been structured to provide even debt service payments, with an average annual savings of
approximately $9,170.
The Bonds are being issued on a parity of lien with the 1987 Bonds. The proceeds of the
Bonds, net of the underwriter's discount, costs of issuance and amounts to be deposited in the
Reserve Account, will be deposited into a City held escrow account at the time of settlement of
the Bonds and will be used to redeem the principal amount of the 1994-1998 maturities of the
1987 Bonds on January 1, 1993 at a price of par. The City will deposit in the Reserve Account
securing this.Issue and the 1987 Bonds $40,500 from Bond proceeds. The City expects to fully
fund the Reserve Account to a level equal to the maximum annual debt service (estimated to be
$96,000) within two years from net revenues of its municipal liquor stores.
The City pledges, as long as any Bonds are outstanding, to continue its ownership and
operation of the liquor enterprise as a revenue-producing entity in the manner authorized and
subject to restrictions imposed by the statutes and laws of the State of Minnesota. In addition,
the City pledges that it will at all times maintain operating policies necessary to assure that net
revenues will always be sufficient to meet all payments of principal of and interest on the Bonds
- 1 -
as they become due. The trend of net revenues generated by the City's liquor store operations
for the past five years is shown on page 3 of this Official Statement.
The City further covenants to maintain all buildings,furnishings, equipment and merchandise in
good condition and free from all liens; to not sell or dispose of any of the capital assets of the
liquor enterprise unless any such proceeds are used to procure equivalent capital assets or are
applied toward payment of the principal of and interest on the Bonds; to carry adequate
insurance; and to keep proper books, records and accounts.
Uquor Store Funds and Accounts
The foregoing is a summary of certain covenants in the "Resolution Relating To $405,000
Liquor Store Revenue Refunding Bonds, Series 1992A: Awarding the Sale, Fixing the Form
and Details, Providing for the Execution and Delivery Thereof and the Security Therefor" which
incorporates the provisions of the resolution adopted May 26, 1987 upon the sale of the 1987
Bonds (the "Resolution"). This is not to be considered a full statement of the provisions of the
Resolution and is qualified by reference to the Resolution. Pertinent sections of the proposed
resolution, as well as portions of the resolution for the 1987 Bonds, are included as
Appendices II and III of this Official Statement.
The Resolution will provide for the continuation of the Liquor Store Fund into which shall be
deposited all income and receipts from the operation of the City's three municipal liquor store
facilities, and in which the following accounts shall be maintained:
Costs of Issuance Account into which shall be deposited that portion of the Bond proceeds
which has been established to be used for costs of issuance and unused discount, if any. Any
balance remaining after payment of all costs of issuance of the Bonds will be transferred to the
Revenue Bond Account and the Costs of Issuance Account will then be closed.
Operation and Maintenance Account into which all payments received by the City from its
ownership and operation of its liquor enterprise will be deposited. These gross revenues shall
be used to pay all those disbursement items which, according to generally accepted
accounting principles, constitute normal, reasonable and current costs of operation and
maintenance of the liquor enterprise, including employee compensation, insurance, utilities and
maintenance of inventory, but excluding depreciation, capital improvements, extraordinary
repairs and debt service. Any gross revenues received in excess of amounts necessary to fund
the operation and maintenance of the liquor enterprise are considered the net revenues of the
enterprise.
Revenue Bond Account into which initially will be deposited any accrued interest on the Bonds.
Net revenues will also be credited to this account monthly in an amount equal to at least one-
sixth of the total interest due within the next six months and one-twelfth of the total principal
due during the next 12 months on the Bonds. Moneys in the Revenue Bond Account shall be
used only for the payment of principal of and interest on the Bonds and any additional
obligations payable therefrom in accordance with the Resolution. Provided the Reserve
Account is fully funded, as described in the ensuing paragraph, all net revenues remaining after
satisfaction of the above requirements may be used for any lawful corporate purpose selected
by the City.
Reserve Account into which $40,500 will be deposited from proceeds of the Bonds. Thereafter,
all available net revenues remaining after the required monthly deposit to the Revenue Bond
Account shall be deposited in the Reserve Account until the balance therein equals the
maximum annual debt service requirement on the Bonds. The money in the Reserve Account
shall be used to pay the principal of and interest on the Bonds payable from the Revenue Bond
Account whenever the amount on hand in the Revenue Bond Account is insufficient, but, if
- 2 -
i;.
used for such purpose, it shall be restored to the required balance as soon as possible out of
available net revenues.
Additional Bonds
Additional parity bonds may not be issued by the City unless the net revenues of the liquor
enterprise in the last complete fiscal year shall have been at least equal to 125% of the
maximum amount of principal and interest to come due in any future fiscal year during the
remaining term of the outstanding Bonds, on all of the outstanding Bonds and on the
additional obligations then proposed to be issued.
Audited Financial Statements and Coverage Statement
The Liquor Fund is audited by an independent certified public accounting firm, as part of the
City's financial statements. The Liquor Fund is audited on an accrual basis of accounting.
Presented in Appendix III of this Official Statement, are the audited balance sheets and
statements of operations of the City's liquor enterprise for the years ended December 30, 1986
through 1991.
The net operating revenues generated by the City's liquor store I operations for the past five
years is shown below. The 1991 net revenues of the Liquor Store Fund available for debt
service are 4.65 times the projected combined maximum debt service of $97,500 on the 1987
Bonds and this Issue (due on January 1, 1993).
1987 1988 1989 1990 1991
Operating Revenues $1,044,611 $ 1,204,438 $ 1,218,035 $ 1,389,888 $ 1,434,643
Operating Expenses (963,488) (1,036,730) (1,014,100) (1,203,359) (1,190,585)
Add Back: Depreciation 56,149 93,163 98,934 113,080 112,088
Add: Nonoperating
Revenue 51,775 87.835 94,098 97.012 97.594
Net Revenues Available
for Debt Service $ 189,047 $ 48
3 ,706 $ 396,967 $ 396,621 $ 453,740 4!'
Future Financing
The City may issue approximately $2,000,000 of general obligation tax increment bonds within
the next 12 months.
Litigation
The City is not aware of any threatened or pending litigation affecting the validity of the Bonds
or the City's ability to meet its financial obligations.
f'
Legality
The Bonds are subject to approval as to certain matters by Dorsey & Whitney of Minneapolis,
Minnesota as Bond Counsel. Bond Counsel has not participated in the preparation of this
Official Statement except for guidance concerning the following section, 'Tax Exemption," and
will not pass upon its accuracy, completeness, or sufficiency. Bond Counsel has not examined
- 3 -
i
i
nor attempted to examine or verify, any of the financial or statistical statements, or data
contained in this.Official Statement, and will express no opinion with respect thereto. A legal
opinion substantially in the form as set out in Appendix I herein will be delivered at closing.
Tax Exemption
In the opinion of Dorsey.& Whitney, as Bond Counsel, under federal and Minnesota laws,
regulations, rulings and decisions in effect on the date of issuance of the Bonds, interest on the
Bonds is not includable in gross income for federal income tax purposes or in taxable net
income of individuals, estates and trusts for Minnesota income tax purposes. Interest on the
Bonds is includable in taxable income of corporations and financial institutions for purposes of
the Minnesota franchise tax. Certain provisions of the Internal Revenue Code of 1986, as
amended (the "Code"), however, impose continuing requirements that must be met after the
issuance of the Bonds in order for interest thereon to be and remain not includable in federal
gross income and in Minnesota taxable net income. Noncompliance with such requirements
by the City may cause the interest on the Bonds to be includable in gross income for purposes
of federal income taxation and in taxable net income for purposes of Minnesota income
taxation, retroactive to the date of issuance of the Bonds, irrespective in some cases of the
date on which such noncompliance is ascertained. No provision has been made for
redemption of or for an increase in the interest rate on the Bonds in the event that interest on
the Bonds becomes includable in federal gross income or Minnesota taxable income.
Interest on the Bonds is not an item of tax preference includable in alternative minimum taxable
income for purposes of the federal alternative minimum tax applicable to all taxpayers or the
Minnesota alternative minimum tax applicable to individuals, estates and trusts, but is
includable in adjusted current earnings in determining the alternative minimum taxable income
of corporations for purposes of the alternative minimum tax and the environmental tax imposed
by Section 59A of the Code. Interest on the Bonds may be includable in the income of a
foreign corporation for purposes of the branch profits tax imposed by Section 884 of the Code
and is includable in the net investment income of foreign insurance companies for purposes of
Section 842(b) of the Code. In the case of an insurance company subject to the tax imposed
by Section 831 of the Code, the amount which otherwise would be taken into account as
losses incurred under Section 832(b)(5) of the Code must be reduced by an amount equal to
fifteen percent of the interest on the Bonds that is received or accrued during the taxable year.
Section 86 of the Code requires recipients of certain Social Security and railroad retirement
benefits to take into account, in determining the taxability of such benefits, receipts or accruals
of interest on the Bonds. Passive investment income, including interest on the Bonds, may be
subject to federal income taxation under Section 1375 of the Code for a Subchapter S
corporation that has Subchapter C earnings and profits at the close of the taxable year if
greater than twenty-five percent of the gross receipts of such Subchapter S corporation is
passive investment income. Section 265 of the Code denies a deduction for interest on
indebtedness incurred or continued to purchase or carry the Bonds or, in the case of a
financial institution, that portion of the holder's interest expense allocated to interest on the
Bonds, except with respect to certain financial institutions (within the meaning of Section 265(b)
of the Code).
The foregoing is not intended to be an exhaustive discussion of collateral tax consequences
arising from receipt of interest on the Bonds. Prospective purchasers or holders of the Bonds
should consult their tax advisors with respect to collateral tax consequences, including without
limitation the calculations of alternative minimum tax, environmental tax or foreign branch
profits tax liability or the inclusion of Social Security or other retirement payments in taxable
income.
- 4 -
Bank-Qualified Tax-Exempt Obligations
Prior to the adoption of the Tax Reform Act of 1986 (the "Act"), financial institutions were
generally permitted to deduct 80% of their interest expense allocable to tax-exempt obligations.
Under the Act, however, financial institutions are generally not entitled to such a deduction for
tax-exempt obligations purchased after August 7, 1986. However the City has designated the
Bonds as "qualified tax-exempt obligations" pursuant to Section 265(b) of the Code which
would permit financial institutions to deduct interest expenses allocable to the Bonds to the
extent permitted under prior law.
Financial Advisor
The City has retained Springsted Incorporated, Public Financial Advisors, of St. Paul,
Minnesota, as financial advisor (the "Financial Advisor') in connection with the issuance of the
Bonds. In preparing the Official Statement, the Financial Advisor has relied upon governmental
officials who have access to relevant data to provide accurate information for the Official
Statement, and the Financial Advisor has not been engaged, nor has it undertaken, to
independently verify the accuracy of such information. The Financial Advisor is not a public
accounting firm and has not been engaged by the City to compile, review, examine or audit any
information in the Official Statement in accordance with accounting standards. The Financial
Advisor is an independent advisory firm and is not engaged in the business of underwriting,
trading or distributing municipal securities or other public securities and therefore will not
participate in the underwriting of the Bonds.
Certification
The City has authorized the distribution of this Official Statement for use in'connection with the
initial sale of the Bonds.
As of the date_ of the settlement of the Bonds, the Purchaser will be furnished with a certificate
signed by the appropriate officers of the City. The certificate will state that as of the date of the,
Official Statement, it did not and does not as of the date of the certificate contain any untrue
statement of material fact or omit to state a material fact necessary in order to make the
statements made therein, in light of the circumstances under which they were made, not
misleading.
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�I
Although the full faith and credit and taxing power of the City is not pledged to the ,
payment of the Bonds, the following is provided for informational purposes.
CITY PROPERTY VALUES
•f
1991 Indicated Market Value of Taxable Property: $324,378,870*
* Calculated by dividing the county assessors' 1991.estimated market value of $310,106,200 by the
aggregate 1991 sales ratio of 95.6%for the City as determined by the State Department of Revenue.
1991 Estimated Market Value of Taxable Property: $310,106,200
i
Hennepin County Ramsey County Total
_Real Estate $224,571,800 $82,823,800 $307,395,600
Personal Property 1,847,500 863,100 2,710.600
Total $226,419,300 $83,686,900 $310,106,200
1991 Taxable Net Tax Capacity: $6,495,623 ,
1991 Net Tax Capacity $6,787,221
Less: Captured Tax Increment Tax Capacity (708,409)
Contribution to Fiscal Disparities (430,627)
Plus: Distribution from Fiscal Disparities 847,438
1991 Taxable Net Tax Capacity $6,495,623
1991 Taxable Net Tax Capacity by Property Class
Real Estate:
Residential Homestead $2,988,756 46.0%
Non-Homestead Residential 1,282,578 19.7
Commercial/Industrial,
Public Utility* .2,075,611 32.0
Other 21,574 0.3
Personal Property 127,104 2.0
Total $6,495,623 100.0%
* Reflects adjustments for fiscal disparities and captured tax increment tax capacity.
- 6 -
I
Trend of Values
Indicated Estimated Taxable Taxable Tax
Market Value(a) Market Value Assessed Value Ca aci (c)
1991 $324,378,870(b) $310,106,200 N/A $6,495,623(4)
1990 332,032,967 302,150,000 N/A 7,018,833
1989 329,536,324 301,196,200 N/A 7,041,340
1988 311,628,889 280,466,000 N/A 8,202,795
1987 293,994,317 269,004,800 $64,550,178 6,036,042
(a) Calculated by dividing the county assessor's estimated market value by the sales ratio determined for
the City each year by the State Department of Revenue.
(b) The reduction in indicated market value in 1991 is due primarily to an increase in the sales ratio from
91.0%in 1990 to 95.6%in 1991.
(c) For property taxes payable in 1989, assessed value of property was replaced with gross tax capacity
in determining properly taxes. Gross tax capacity was approximately 12.5% of assessed value for
most property classes and, like assessed value, was calculated by applying a statutory formula to the
estimated market value of the property. Beginning with taxes payable in 1990, net tax capacity has
replaced gross tax capacity as the basis on which taxes are levied. Net tax capacity differs from gross
tax capacity primarily by having lower values for homestead residential and certain agricultural
property(see Appendix 11).
(4) The reduction in taxable tax capacity in 1991 is due primarily to a reduction in commerciallindustrial
property class rates for taxes payable in 1992.
Ten of the Largest Taxpayers In the City
1991 Net
Taxpayer Type of Property Tax Capacity
Apache Plaza Investment Company Shopping Center $ 533,648
St. Anthony LaNel Apartment Buildings 270,375
Equinox Properties Apartment Buildings 235,872
St. Anthony Nursing Home/Chandler
Place Health Facility 208,509
Individual Industrial 141,335
Firstar Bank of Minnesota Bank 114,630
Northern Gopher Enterprises, Inc. Apartment Buildings 107,396
Individual Apartment Buildings 105,457
St. Anthony Minneapolis, Inc. Commercial 99,763
Northern States Power Company utility 83,366
Total $1,900,351
Represents 29.3%of the City's total 1991 taxable net tax capacity.
- 7 -
CITY INDEBTEDNESS
Legal Debt Limit
Legal Debt Limit (2%of Estimated Market Value) $6,202,124
Less: Outstanding Debt Subject to Limit (255.000)
Debt Margin as of July 2, 1992 $5,947,124
General Obligation Debt Supported by Taxes
Principal
Date Original Final Outstanding
of Issue Amount Purpose Maturi As of 7-2-92
4-1-90 $315,000 Equipment Certificates* 2-1-1995 $255,000
This issue is subject to the statutory debt limit.
General Obligation Debt Supported by Tax Increments
Principal
Date Original Final Outstanding
of Issue Amount Purpose Maturity As of 7-2-92
6-1-85 $ 545,000 Tax Increment 2-1-2001 $ 255,000
12-1-85 2,125,000 Tax Increment 2-1-1993 275,000
1-1-9.1 1,550,000 Tax Increment Refunding 2-1-1998 1.550,000
Total $2,080,000
General Obligation Debt Supported by Revenues
Principal
Date Original Final Outstanding
of Issue Amount Purpose Maturi As of 7-2-92
7-25-88 $874,703 Water System (Capital Appreciation) 7-1-1993 $ 874,703
10-1-88 210,000 Sewer Revenue 10-1-1995 130,000
Total $1,004,703
Revenue Debt
Principal
Date Original Final Outstanding
of Issue Amount Purpose Maturi As of 7-2-92
7-1-87 $690,000 Liquor Store 1-1-1998 $ 480,000'
10-1-92 405,000 Liquor Store Refunding (this Issue) 1-1-1998 405,000
r
Subtotal $ 885,000
Less: Refunded Bonds (415,000)
Total $ 470,000
The 1994-1998 maturities are being refunded by this Issue.
- 8 -
i
Annual Debt Service Payments Including this Issue
and (Excluding the Refunded Bonds
G.O. Debt Supported G.O. Debt Supported
by Taxes by Tax Increments
Principal Principal
Year Princi al & Interest Princi al & Interest
1 992 (at 7-2) (Paid) $ 7,71 6.25 (Paid) $ 20,365.00
1993 $ 80,000 93,032.50 $ 295,000 370,442.50
1994 85,000 93,061.25 330,000 430,617.50
1995 90,000 92,745.00 355,000 435,592.50
1996 375,000 433,842.50
1997 400,000 435,405.00
1998 220,000 236,240.00
1999 30,000 37,945.00
2000 35,000 40,100.00
2001 40,000 41,780.00
Total $255,000 $286,555.00 $2,080,000 $2,482,330.00
G.O. Debt Supported
by Revenues Revenue Debt
Principal Principal
Year Principal & Interest Principal & Interest(b)
1992 (at 7-2) $ 30;000 $ 34,238.75 (Paid) (Paid)
1993 904,703(x) 1,221,572.50(a) $ 65,000 $ 97,497.50
1994 35,000 39,637.50 70,000 87,470.00
1995 35,000 37,345.00 80,000 94,275.00
1996 80,000 90,635.00
1997 85,000 91,672.50
1998 90,000 92,295.00
Total $1,004,703 $1,332,793.75 $470,000 $553,845.00
(a) Includes Capital Appreciation Bonds with a total maturity value of$1,185,000, which amount will be
paid at maturity on July 1, 1993 from investments currently held by the City in the Water Utility Fund.
(b) Includes this Issue at an assumed annual rate of 4.65%, and excludes the 1994-1998 maturities of the .
Refunded Bonds.
Indirect Debt
Debt Applicable to
1991 Taxable G.O. Debt Tax Capacity in City
Taxing Unit(a) Net Tax Capacity As of 7-2-92(b) Percent Amount
Hennepin County $1,004,056,028 $ 78,680,000 0.40% $ 314,720
Ramsey County 361,281,921 112,310,000 0.68 763,708
Metropolitan Council 1,931,451,484 43,730,000(x) 0.34 148,682
Metropolitan Transit
District 1,770,007,609 51,485,000 0.37 190,495
Hennepin Parks 694,767,248 8,350,000 0.58 48,430
Total $1,466,035
(a) Only those taxing units which have outstanding debt are presented here.
(b) Excludes general obligation debt supported by revenues and revenue debt.
(c) Metropolitan Council also has outstanding$477,545,000 of general obligation sewer bonds and loans
which are supported by sewer system revenues.
- 9 -
Debt Ratios
G.O. G.O. Indirect &
Direct Debt* Direct Debt
To 1991 Indicated Market Value 0.72% 1.17%
Per Capita (7,802 - 1991
Metropolitan Council Estimate) $299 $487
Excludes general obligation debt supported by revenues and this Issue, which is supported solely by
revenues.
I
CITY TAX RATES, LEVIES AND COLLECTIONS
Tax Capacity Rates for a City Resident in Hennepin County
1991/92
198818 1989190 1990/91 Total For Debt Only
Hennepin County 27.101% 27.916% 30.114% 34.327% 2.025%
City of St. Anthony 15.218 16.852 21.296 19.972 0.941
ISD 282 (St. Anthony) 59.728 33.188 58.686 53.664 -0-
Special Districts* 5.797 5.631 7.365 5.996 0.829
Total 107.844% 83.587% 117.461% 113.959% 3.795%
* Includes Metropolitan Council, Regional Transit District, Mosquito Control District, Hennepin Parks,
Park Museum and County Regional Railroad Authority.
NOTE: For property taxes payable in 1989, taxes were determined by multiplying the gross tax capacity
by the tax capacity-rate, expressed as a percentage. This replaced the use of assessed value
multiplied by mill rates. Beginning with taxes payable in 1990, net tax capacity has replaced
gross tax capacity as the basis on which taxes are levied(see Appendix 11).
Historic Trend of Mill Rates per $1,000 of Assessed Value
for a City Resident in Hennepin County
1983184 1984/85 1985/86 1986187 1987188
Hennepin County 29.689 29.262 29.688 29.356 31.667
City of St. Anthony 11.359 12.906 14.727 15.543 19.987
ISD 282 53.748 51.423 60.818 63.304 62.310
Special Districts* 5.318 5.181 5.878 5.959 6.738
Total 100.114 98.772 111.111 114.162 120.702
* Includes Metropolitan Council, Regional Transit District, Mosquito Control District, Hennepin Parks,
Park Museum and County Regional Railroad Authority.
NOTE: The foregoing mill rates are computed on the basis of total levies and do not reflect reductions
for State-paid property tax credits.
- 10 -
City Tax Levies and Collections
Collected During Collected
Amount Collection Year As of 12-1-91
Levy/Collect of Lew Amount Percent Amount Percent
1991/92 $1,618,684* (In Process of Collection)
1990/91 1,585,003 $1,543,639 97.4% $1,543,639 97.4%
1989/90 1,497,267 1,476,915 98.6 1,483,955 99.1
1988/89 1,251,225 1,229,744 98.3 1,250,111 99.9
1987/88 1,262,747 1,243,381 98.5 1,259,776 99.8
* The 1991192 gross tax levy includes $302,625 of Homestead and Agricultural Credit Aid (HACA').
The net levy of$1,316,059 after subtracting HACA is the basis for computing the 1991192 tax rates.
FUNDS ON HAND
As of July 13, 1992
Fund Cash and Investments
General $ 168,344
Special Revenue 2,439,626
Capital Equipment (68,618)
Debt Service 144,804
Revolving 898,902
Community Center (25,629)
Enterprise 4,957,056
Investment 6,281,295*
Retirement 124.665
Total $14,920,445
* Represents pooled investment funds for all City funds except the HRA Fund (Special Revenue) and
the Liquor Fund(Enterprise Fund).
GENERAL INFORMATION CONCERNING THE CITY
The City of St. Anthony is located in both Hennepin and Ramsey Counties, immediately north
of the City of Minneapolis. The City encompasses an area of 1,600 acres or 2.5 square miles.
St. Anthony experienced its greatest population growth between 1960 and 1970 as
demonstrated by the following:
Percent
U.S. Census Population Increase/(Decrease)
1960 5,084 ---
1970 9,239 82%
_ 1980 7,981 (14%)
1990 7,727 (3%)
The Metropolitan Council estimates that St. Anthony's 1991 population is 7,802.
- 11 -
i
Employment
The City is centrally located within the Minneapolis/St. Paul metropolitan area which provides
City residents with easy access to employment opportunities throughout the metropolitan area.
Some of the larger employers within the City limits are:
Approximate
Number
Employer Product/Service of Employees
Apache Plaza Mall Shopping Center (60 tenants) 625
St. Anthony Health Center 150-Bed Nursing Home 250
Independent School District 282 Education 155
Herbergers Merchandise Sales 120
Apache New Market Food Sales 108
Source: St. Anthony Community Profile, Minnesota Department of Trade and Economic Development,
May 1992.
St. Anthony's industrial park has approximately 25 small- to medium-sized businesses, each
with employment ranging up to 50.
Labor Force Data
May 1992 May 1991
Civilian Unemployment Civilian Unemployment
Labor Force Rate Labor Force Rate
Hennepin County 621,672 4.8% 634,066 4.8%
Ramsey County 277,450 4.6 282,993 4.6
State of Minnesota 2,431,500 5.5 2,461,100 5.4
Source: Minnesota Department of Jobs and Training. 1992 data is preliminary.
Summary of Building Permits
Total Permits Commercial/Industrial New Housing
Year Number . Value Number Value Number Value
1992 (to 7/1) 105 $ 1,072,100 15 $ 376,700 4 $ 453,000
1991 197 2,654,350 21 615,250 19 1,218,000
1990 183 4,110,450 17 633,500 28 2,748,000
1989 216 10,316,838 63 9,062,638 5 572,000
1988 154 2,393,225 4 93,000 9 878,000
1987 150 2,915,650 14 971,000 13 1,369,000
1986 147 8,767,080 10 526,500 7 6,604,000
1985 193 12,235,097 4 1,062,500 10 1,046,000
Financial Institutions
The Firstar St. Anthony Bank reported total deposits of$74,894,000 as of December 31, 1991.
Source: 'Northwestern Bank Directory of the Upper Midwest, Spring 1992 Edition.
- 12 -
Education
The City is within the jurisdiction of Independent School District 282 which is headquartered in
St. Anthony. The City constitutes 85% of the District's valuation. The District had a 1991/92
enrollment of 1,060 in kindergarten through grade 12. The District employs a total staff of 155,
of which 81 are teachers and administrators.
Parochial education is available at St. Charles Borromeo School, which currently has 400
students in kindergarten through grade eight.
GOVERNMENTAL ORGANIZATION AND SERVICES
,1
The City of St. Anthony has been a municipal corporation since 1946 and is a statutory City
operating under the council-manager plan. The City Council is composed of the Mayor and
four Council members, all elected at large. The current Council members are:
Expiration of Term
Clarence J. Ranallo Mayor December 31, 1995
Richard A. Enrooth Member December 31, 1993
Dorothy Fleming Member December 31,,_1995
George E. Marks Member.: December 31, 1995
George Wagner Member December 31, 1993
The City Manager, Mr. Thomas D. Burt, is responsible for the daily administration and operating
function of the City and implementation of Council directives. The Financial Director, Mr. Roger
Larson is responsible for maintaining the records and accounts of the City's operations. The
City has a total of 50 full-time employees..
City Services
Municipal water is available to nearly all residents. One mobile home park has its own private
well and several residents are supplied water by the City of Minneapolis. St. Anthony has a
water system of three wells and two storage facilities with'capacity of 2,175,000 gallons. The
City's last increase in water rates was effective April 1, 1992 for the July 1, 1.992 billing, raising
the rate from 800 per 1,000 cubic feet to 830 per 1,000 cubic feet.
Interceptor sewer lines and wastewater treatment plants in the metropolitan area are owned
and operated by the Metropolitan Waste Control Commission ("MWCC"), an agency of the
Metropolitan Council. MWCC finances its operations through user charges to each of the
participating municipalities based on measured volume of use. The City is responsible for the
construction and maintenance of sewer laterals.
Protective services are provided by the City through 12 police officers and seven full-time and
23 volunteer fire fighters.
The City owns and operates three municipal liquor stores: one with both on and off-sale, one
off-sale warehouse, and one on-sale store. The Liquor Fund transferred $146,500 to the
General Fund in 1991 and $100,000 in 1990.
- 13 -
Employee Pensions
All full-time and certain part-time employees of the City of St. Anthony are covered by defined
benefit pension plans administered by the Public Employees Retirement Association of
Minnesota (PERA). The PERA administers the Public Employees Retirement Fund (PERF) and
the Public Employees.Police and Fire Fund (PEPFF) which are cost-sharing multiple-employer
public employee retirement plans. PERF members belong to either the Coordinated Plan or
the Basic Plan. Coordinated members are covered by Social Security and Basic members are
not. All new members must participate in the Coordinated Plan. All police officers, fire fighters
and peace officers who qualify for membership by statute are covered by the PEPFF. The
City's contribution for employees covered by PERA for the year ended December 31, 1991 was
$141,937, as compared to a contribution of$109,289 in 1990.
The St. Anthony Firefighters Relief Association is the administrator of a single employer
retirement system established to provide pension and other benefits to its membership in
accordance with Minnesota Statutes. The Association maintains a separate Special Fund to
accumulate assets to fund the retirement benefits earned by its membership. Funding of the
Association is derived primarily from an insurance premium tax in accordance with the
Volunteer Firefighter's Relief Association Financing Guidelines Act of 1971. As of
December 31, 1991, assets of the Special Fund totaled approximately $222,000 (market value
of approximately $212,000) and the liability for pension benefits was estimated at $284,000.
r-
- 14 -
APPENDIX I
PROPOSED FORM OF LEGAL OPINION
DORSEY & WHITNEY
s
A P.rrnxwei►Iro.wtro PRo►928.0w.t Ci0Rr04TtOf.•
2200 FIRST BANK PLACE EAST
MINNEAPOLIS, MIT'NESOTA 55402
(612)340-2600
TELEX 29-0605
TELECOPIER (612)340-2666
$405,000 Liquor Store Revenue Refunding Bonds, Series 1992A
City of St. Anthony, Hennepin and Ramsey Counties, Minnesota
We have acted as Bond Counsel in connection with the issuance by the
City of St. Anthony, Hennepin and Ramsey Counties, Minnesota (the City), of the
` obligations described above, dated originally as of October ,1, 1992, in the total
principal amount of $405,000 (the Bonds). For the purpose of giving this opinion we
have examined certified copies of certain proceedings taken by the City in the
authorization, sale and issuance of the Bonds, including the form of the Bonds, and
certain other proceedings and documents furnished by the City and others. From
our examination of such proceedings and other documents, assuming the
authenticity thereof, the.genuineness of the signatures thereon and the accuracy of
the facts stated therein, and based upon laws, regulations, rulings and decisions in
effect on the date hereof, it is our opinion that:
1. The Bonds are in due form, have been duly authorized, executed
and delivered, and are valid and binding special obligations of the City enforceable
in accordance with their terms, except to the extent to which enforceability thereof
may be limited by the exercise of judicial discretion or by federal or state laws
relating to bankruptcy, reorganization, insolvency, moratorium or creditors' rights.
2. The principal of and interest on the Bonds are payable solely and
exclusively from the net revenues of the municipal liquor store of the City pledged
to the payment thereof. The Bonds are a first and prior lien upon the net revenues
of the municipal liquor store on a parity with the lien on said net revenues to pay
the Liquor Store Revenue Bonds, Series 1987 of the City (the 1987 Bonds), except that
the City is authorized under certain circumstances to issue additional revenue
obligations on a parity of lien with the Bonds and the 1987 Bonds. The Bonds are
not general obligations of the City and the taxing power of the City is not to be used
to provide money for -the payment of principal thereof or interest thereon.
3. Interest on the Bonds (a) is not includable in gross income for
federal income tax purposes or in taxable net income of individuals, estates or trusts
for Minnesota income tax purposes; (b) is includable in taxable income of
corporations and financial institutions for purposes of the Minnesota franchise tax;
(c) is not an item of tax preference includable in alternative minimum taxable
F:
income for purposes of the federal alternative minimum tax applicable to all
taxpayers or the Minnesota alternative minimum tax applicable to individuals,
-1
1
n
DOBSEY 8c WHITNEY z
r..
i
$405,000 Liquor Store Revenue City of St. Anthony, Hennepin and
Refunding Bonds, Series 1992A Ramsey Counties, Minnesota
estates and trusts; and (d) is includable in adjusted current earnings of corporations
in determining alternative minimum taxable income for purposes. of the federal
alternative minimum tax imposed on corporations.
4. The City has designated the Bonds as "qualified tax-exempt
obligations" within the meaning of Section 265(b)(3) of the Code, and financial
institutions described in Section 265(b)(5) of the Code may treat the Bonds for
purposes of Sections 265(b)(2) and 291(e)(1)(B) of the Code as if they were acquired on r;
August 7, 1986.
LJ
The opinions expressed in paragraphs 3 and 4 above are subject to the
condition of the City's compliance with all requirements of the Code that must be
satisfied subsequent to the issuance of the Bonds in order that interest thereon may '+
be, and continue to be, excluded from gross income for federal income tax purposes
and that the Bonds be and continue to be .qualified tax-exempt obligations. The City
has covenanted to comply with these continuing requirements; its failure to do so
could result in the inclusion of interest on the Bonds in federal gross income and in
Minnesota taxable net income, retroactive to the date of issuance of the Bonds:
Except as stated in this opinion, we express no opinion regarding federal, state or
other tax consequences to holders of the Bonds.
We have not been asked and have not undertaken to review the
accuracy, completeness of sufficiency of any offering materials relating to the Bonds,
and accordingly, we express no opinion with respect thereto.
Dated this day of October, 1992.
1-2
APPENDIX II
PERTINENT SECTIONS
OF THE RESOLUTION FOR
THE 1987 BONDS
Section 3. Funds and Accounts Additional Bonds. For the proper
administration of the moneys so to be borrowed and to make adequate and specific
security to the purchaser of the Bonds and to the owners thereof from time to time,
and the owners of any other bonds issued and made payable on a parity with the
Bonds, the City shall, at least until the Bonds and interest thereon are fully paid,
establish and maintain its Liquor Store Fund and maintain financial records of the
receipts and disbursements relating to said-Fund in accordance with this resolution.
In such records there shall be established and maintained subdivisions of the Liquor
Store Fund for the purposes and in the amounts as follows:
3.01. Capital Ex]2enditures Account. There is hereby established within
the Liquor Store Fund a "Capital Expenditures Account," into which shall be paid all
of the proceeds of the Bonds with the exception of accrued interest paid by the
purchaser at the time of delivery of the Bonds and the amount deposited in the
Reserve Account. There shall be charged to and paid from this Account all, but
only, the items of capital expenditures to be made for the Project as described in
Section 1.02 hereof, provided that upon completion of the Project any moneys
remaining in said Capital Expenditures Account-shall be transferred to the
Operation and Maintenance Account described below.
3.02. Operation and Maintenance Account. There is hereby established
within the Liquor Store Fund an "Operation and Maintenance Account," to which
there shall be charged and from which there shall be paid all, but only, those items
of disbursement which, by generally accepted accounting principles, constitute
normal, reasonable and current costs of operation and maintenance of the Store,
including compensation of Store employees, insurance, utility services and costs of
maintenance of a reasonable stock of merchandise, but excluding allowance for
depreciation, capital improvements, extraordinary repairs and debt service. All
moneys received by the City from its ownership and operation of the Store,
including any addition thereto and improvement thereof and including all receipts
from the sale of intoxicating liquor and from the sale of other merchandise and
services on Store premises, and from the rental of any portion of the Store, and
from the sale of equipment or furnishings purchased for the Store and not needed
. to be retained, are herein called "gross revenues" and shall be paid into the Liquor
Store Fund and apportioned monthly to the several accounts therein. Upon each
such apportionment there shall be credited to the Operation and Maintenance
Account such portion of the gross revenues as shall be needed, together with the
` balance then on hand therein, to pay all claims then due and to become due within
the succeeding.month in respect of expenses of operation and maintenance,
` including a reasonable reserve for emergencies. All gross revenues from time to
time received in excess of the amounts hereby appropriated to the Operation and
Maintenance Account are herein termed the 'Net Revenues."
3.03. Revenue Bond Account. There is hereby established within the
Liquor Store Fund a "Revenue Bond Account," to which there shall be credited all
accrued interest received from the purchaser of the Bonds. To this Account there
. II-1
shall also be credited monthly out of the Net Revenues an amount equal to at least
one-sixth of the interest to become due. on the next succeeding interest payment date
plus one-twelfth of the principal to become due on the next two succeeding interest
payment dates on the Bonds and nay other obligations which may, in accordance
with the provisions of this resolution, be issued and made payable from the
Revenue Bond Account. Moneys in the Revenue Bond Account shall be used only
for the payment of such principal and interest when due. So long as the Reserve
Account created pursuant to Section 3.04 hereof is fully funded, all Net Revenues
remaining after satisfaction of the above requirements may be used for any lawful
corporate purpose selected by the City Council.
3.04. Reserve Account. There is hereby established within the Liquor
Store Fund a 'Reserve Account." The Reserve Account shall be initially funded
with $69,000 from the proceeds of the Bonds. Thereafter, all available Net Revenues
remaining after the required monthly deposit to the Revenue Bond Account shall
be deposited in the Reserve Account until the balance therein equals $106,387.50,
which is the maximum annual debt service due in any future fiscal year on the
Bonds. The money in the Reserve Account shall be used to pay principal and
interest on the Bonds payable from the Revenue Bond Account whenever the
amount on hand in the Revenue Bond Account is insufficient, but if used for such
purpose it shall be restored to the required balance as soon as possible out of
available Net Revenues. Should additional bonds payable from the Revenue Bond
Account be issued pursuant to Section 3.06 hereof, the City shall increase the balance
in the Reserve Account to an amount equal to maximum annual debt service
payable in any future fiscal y ear during the remaining term of the bonds then
outstanding on all bonds (including the additional bonds) payable from the
Revenue Bond Account. Such increase shall be funded to the maximum extent
feasible from the proceeds of the additional bonds, and, to the extent necessary, from
the periodic deposit of available Net Revenues.
3.05. Issuance of Refunding Bonds. The City reserve the right and
privilege of issuing and selling refunding certificates or bonds if and to the extent
needed to refund maturing bonds payable from the Revenue Bond Account, if
moneys in the Liquor Store Fund are at any time insufficient for the payment in full
of the principal and interest due thereon, which refunding obligations shall be
payable from the Revenue Bond Account on a parity with the outstanding bonds
payable therefrom, but shall not mature earlier than the final maturity of all bonds
then outstanding. Nothing herein shall require the holder of any bond to accept a
refunding obligation in exchange therefor.
3.06. Additional Bonds. the City hereby agrees that it will not issue any
additional obligations payable from the Net Revenues of the Store or constituting a
lien or charge thereon superior to or on a parity with the bonds previously issued
unless it has first retired, or placed in escrow with a depository bank, moneys or
II-2
securities sufficient to discharge the outstanding bonds pursuant to.Section 6 hereof
prior to the issuance of such additional obligations or unless the Net Revenues of
the Store in the last complete fiscal year immediately preceding the issuance of such
additional obligations shall have been at least equal to 125% of the maximum
amount of principal and interest to come due in any future fiscal year, during the
remaining term of the outstanding bonds, on all of the outstanding bonds and on
the additional obligations then proposed to be issued. Notwithstanding the above
provisions, nothing in this resolution shall be construed to preclude the City from
issuing additional bonds, whether constituting a general obligation of the City or
payable solely from liquor store revenues, for construction, reconstruction or
improvement of the Store, provided such additional bonds are expressly made a
lien and charge on the Net Revenues of the Store subordinate and junior to that of
the bonds payable form the Revenue Bond Account.
Section 4. Covenants. The City of St. Anthony hereby certifies and
represents to and covenants and agrees with the purchaser and holder from time to
time of-each bond payable from the Revenue Bond Account as follows:
4.01. Ownership and Operating As long as any bonds payable from the
Revenue Bond Account are outstanding, the City will continue its ownership and
operation of the Store as a revenue-producing utility and convenience, in the
manner authorized and subject to the restrictions imposed by the statutes and laws
of the State of Minnesota. The City will maintain the buildings, furnishings,
equipment and merchandise constituting the Store in good condition, and free from
all liens, provided that purchase money liens may be created on merchandise
acquired for resale, or such merchandise may be acquired subject to liens existing at
the time of acquisition. The City will not authorize the establishment or operation
of any other facility within the City for the off-sale of intoxicating liquors at retail,
except as may be required by law. The City reserves the right to issue licenses for the
establishment and operation of one or more facilities within the City for the on-sale
of intoxicating liquors at retail.
4.02. Disposition of Property. If any properties constituting capital
assets of the Store shall be sold and disposed of, it shall be only at their fair market
value, and the proceeds of such sale or disposition shall be used either to procure
other equivalent capital assets or deposited in the Revenue Bond Account and
applied to pay principal of and interest on bonds payable therefrom. No such sales.
or sales shall be made at times or prices such as the imperil the prompt and full
payment of bonds payable from the Revenue Bond Account and the interest
thereon.
4.03. Insurance. The City will procure and keep in force insurance on
all buildings constituting the Store and the equipment and furnishings thereof and
all stocks of merchandise, protecting against loss or damage by fire, tornado,
II-3
windstorm, flood, theft and all other causes customarily insured against for like
properties, in amounts sufficient to cover total loss thereof, and will procure and
keep in force suitable fidelity bonds covering all employees handling moneys of the
Store. In the event of loss covered by said insurance policies or bonds, the proceeds
shall be used to repair or restore the damage compensated thereby or to retire bonds
payable from the Revenue Bond Account. The City will also procure and keep in
force insurance protecting against liability of the City to any person under
Minnesota Statutes, Section 340A.801 and any laws amendatory thereof or
supplemental thereto, in such amounts as are reasonably available and are
reasonably determined by the Council to be adequate to protect against the
contingency of any claim becoming a lien in any manner whatsoever upon the Net
Revenues of the Store, and will by such insurance and by diligent enforcement of all
provisions of law relating to the operation of the Store, save the owners of all bonds
payable from the Revenue Bond Account harmless from any and all such claims.
4.04. A1212lication of Revenues. The gross revenues and Net Revenues
of the Store will be used and applied only as prescribed in Section 3 hereof and its
subdivisions. The City will at all times maintain operating policies concerning the
purchase and sale of merchandise and do and perform all other acts and things
necessary to assure that the Net Revenues collected form time to time will always be
sufficient to meet all payments of principal and interest on bonds payable from the
Revenue Bond Account as the same become due.
4.05. Application of Payments. In the event that moneys in the
Revenue Bond Account shall at any time be insufficient to pay principal and
interest then due on all obligations payable therefrom said moneys shall first be
applied to pay the accrued interest on all such obligations then outstanding, and the
balance shall be applied in payment of maturing principal in order.of maturities,
and pro rata as to obligations of the same maturity.
4.06. Books of Account. The City shall at all times keep proper and
adequate books of account showing all receipts and disbursements of moneys
derived from the operation of the Store, which books shall show the segregation
and application of revenues in accordance with the provisions of this resolution. It
will cause said books to be audited for each fiscal year by an independent certified
public accountant. Copies of such audit shall be provided upon request to the owner
of any bond payable from the Revenue Bond Account.
4.07. Rights of Owners. The owner of any bond payable from the
Revenue Bond Account may, either at law or in equity, by suit, action or other
proceedings protect and enforce the rights of all owners of bonds, or enforce and
compel the performance of any and all of the covenants and duties herein specified
to be performed by the City or its officers and agents.
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Section 5. Amendments. The City reserves the right to amend the
provisions of this resolution, on the following conditions:
5.01. Amendments Without Consent of Bondholders. The City
reserves the right to amend this resolution from time to time and at any time for
the purpose of (a) clarifying any ambiguity, curing, correcting or supplementing any
defective provision, (b) making such provisions with regard to matters or questions
arising hereunder as the City Council may deem necessary or desirable and are not
inconsistent with this resolution, and which shall not, in the judgment of the City
Council, adversely affect the interest of the owners of the bonds, (c) adding to the
covenants and agreements herein contained, or to the revenues herein pledged,
other covenants and agreements thereafter to be observed and additional revenues
thereafter appropriated to the Liquor Store Fund, (d) surrendering any right or
power herein reserved to or conferred upon the City, and (e) authorizing the
issuance of refunding bonds or additional bonds in the manner and subject to the
terms and conditions prescribed in Sections 3.05 and 3.06. Any such amendment
may be adopted by resolution, without the consent of the owners of any of the
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bonds.
5.02. Amendments With Consent of Bondholders. With the consent
of owners of bonds as provided in Section 5.03, the City may from time to time and
at any time amend this resolution by adding any provisions hereto or changing in
any manner or eliminating any of the provisions hereof, or of any amending
resolution except that no amendment shall be adopted at any time without the
consent of the owners of all bonds affected thereby which are then outstanding, if it _
would (a) extend the maturities of any such bonds, (b) reduce the rate or extend the
time of payment of interest thereon, (c) reduce the amount or extend-the time of
payment of the principal or redemption premium thereof, (d) give to any bond or
bonds any privileges over any other bond or bonds, (e) reduce the sources of
revenues appropriated to the Liquor Store Fund, (d) authorize the creation of a
pledge of said revenues prior to or on a parity with the bonds (except as is
authorized by Sections 3.05 and 3.06), or (g) reduce the percentage in principal
amount of such bonds required to authorize or consent to any such amendment.
5.03. Consents. Any amendment adopted pursuant to Section 5.02
shall be made by resolution, mailed to the registered owners of all outstanding
bonds, and shall become effective only upon the filing of written consents with the
Clerk, signed by the owners of not less than a majority in principal amount of the
bonds which are then outstanding or, in the case of an amendment not affecting all-
outstanding bonds; by the owners of not less than a majority in principal amount of
the bonds affected by such amendment. Any written consent to an amendment may
be embodied in and evidenced by one or any number of concurrent written
instruments of substantially similar tenor signed by bondholders in person or by
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agent duly appointed in writing, and shall become effective when delivered to the
Clerk. Any consent by the owner of any bond shall bind him and every future
owner of the same bond with respect to any amendment adopted by the City
pursuant to such consent, provided that any bondholders may revoke his consent
with reference to any bond by written notice received by the Clerk before the
amendment has become effective. In the event that unrevoked consents of the
owners of the required amount of bonds have not been received by the Clerk within
one year after the mailing of any amendment, the amendment and all consents
theretofore received shall be of no further force and effect.
5.04. Proof of Consent. Proof of the execution of any consent, or of a
writing appointing any agent to execute the same, or of the ownership by any person
of bonds, shall be sufficient for any purpose of this resolution and shall be
conclusive in favor of the City if made in the manner provided in this Section 5.04.
The fact and date of the execution by any person of any such consent or appointment
may be proved by the affidavit of a witness of such execution or by the certificate of
any notary public or other officer authorized by law to take acknowledgments of
deeds,, certifying that the person signing it acknowledged to him the execution
thereof. The amounts of bonds held by any person by or for whom a consent is
given, and the distinguishing numbers of such bonds, and the date of his holding
the same, shall be proved by the Bond Register. -
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APPENDIX III
PERTINENT SECTIONS OF THE RESOLUTION RELATING TO
$405,000 LIQUOR STORE REVENUE REFUNDING BONDS, SERIES 1992A:
AWARDING THE SALE, FIXING THE FORM AND DETAILS, PROVIDING FOR THE
EXECUTION AND DELIVERY THEREOF AND THE SECURITY THEREFOR
Section 4. Security Provisions; Bond Proceeds.
4.01. Authorizing Resolution. The Bonds shall be additional
obligations payable from the Net Revenues of the Store on a parity with the 1987
Bonds in accordance with Section 3.06 of the Authorizing Resolution. The Bonds
shall be payable from the Revenue Bond Account established within the Liquor
Store Fund of the City by Section 3.03 of the Authorizing Resolution on a parity
with the 1987 Bonds and any other additional obligations permitted by the
Authorizing Resolution to be payable on a parity with the 1987 Bonds and the
Bonds. The provisions of Sections 3, 4 and 5 of the Authorizing Resolution are
incorporated herein by reference and shall apply to the Bonds and the amendment
of this resolution, and the Bonds shall be secured by each and all of the covenants
and provisions contained in Sections 3, 4 and 5 of the Authorizing Resolution.
4.02. 1987 Bonds Escrow Account. There is hereby established in the
Liquor Store Fund a "1987 Bonds Escrow Account" to which shall be credited $
of the purchase price received from the Purchaser for the bonds and $69,000 from
amounts on hand in the Reserve Account established within the Liquor Store Fund
by Section 3.04 of the Authorizing Resolution. Funds in the 1987 Bonds Escrow
Account shall be invested in securities authorized by law maturing or callable at the
option of the holder thereof on such dates and bearing interest at such rates as shall
be required to provide sufficient funds together with any cash or other funds
retained in such account to pay the principal of the Refunded Bonds on January 1,
1993. The funds in said account shall be used solely for the purposes herein set forth
and for no other purpose, and said account and all securities therein and all
payments of principal and interest on said securities are hereby irrevocably pledged
to the payment of the principal of the Refunded Bonds; except that if any balance
shall remain in said account after all-principal has been paid on the Refunded Bonds
then such balance shall be transferred to the Revenue Bond Account.
4.03. Costs of Issuance Account. There is hereby established within the
Liquor Store Fund a "Costs of Issuance Account", into which shall be paid $
of the proceeds of the Bonds. There shall be charged to and paid from the Costs of
Issuance Account costs incurred by the City in connection with the issuance of the
Bonds and refunding of the Refunded Bonds, provided that any money remaining
in said Costs of Issuance Account shall be transferred to the Revenue Bond Account.
4.04. Reserve'Account. $40,500 of the purchase price received from the
Purchaser for the Bonds shall be deposited in the Reserve Account. The money in
the Reserve Account shall be used to pay the principal and interest on the 1987
III-1
Bonds and the Bonds and any other additional obligations issued pursuant to
Section 3.06 of the Authorizing Resolution payable from Net Revenues of the Store
on a parity with the 1987 Bonds and the Bonds.
4.05. Accrued Interest. Accrued interest on the Bonds paid by the
Purchaser shall be paid into the Reserve Bond Account.
Section 5. Defeasance. When any Bond has been discharged as
provided in this section, all pledges, covenants and other rights granted by this
resolution to the holders of such Bonds shall cease, and such Bonds shall no longer
be deemed to be outstanding under this Resolution. The City may discharge its
obligations with respect to any Bond thereto which is due on any date by depositing
with the paying agent on or before that date a sum sufficient for the payment thereof
in full; or, if any Bond should not be paid when due, it may nevertheless be
discharged by depositing with the paying agent a sum sufficient for the payment
thereof in full with interest accrued to the date of such deposit. The City may also
discharge its obligations with respect to any prepayable Bond according to its terms,
.by depositing with the paying agent on or before that date an amount equal to the
principal, interest and redemption premium, if any, which are then due, provided
that notice of such redemption has been duly given as provided herein. The City
may also at any time discharge.its obligations with respect to any Bonds, subject to
the provisions of law now or hereafter authorizing and regulating such action, by
depositing irrevocably in escrow, with a bank qualified by law as an escrow agent for
this purpose, cash or securities which are authorized by law to be so deposited,
bearing interest payable at such times and at such rates and maturing on such dates
as shall be required to pay all principal, interest and redemption premiums to
become due thereon to maturity or said redemption date.
Section 6. County Auditor Registration, Certification of Proceedings,
Investment of Moneys, Arbitrage, Designation of Bonds as Qualified Tax Exempt
Obligations and Official Statement.
6.01. County Auditor Registration. The City Clerk is hereby authorized
and directed to file a certified copy of this resolution with the County Auditors of
Hennepin and Ramsey Counties, together with such other information as the
County Auditors shall require, and to obtain from said County Auditors certificates
that the Bonds have been entered on his bond register as required by law.
6.02. Certification of Proceedings. The officers of the City and the
County Auditors of Hennepin and Ramsey Counties are hereby authorized and
directed to prepare and furnish to the purchaser of the Bonds and to Dorsey &
Whitney, Bond Counsel, certified copies of all proceedings and records of the City,
and such other affidavits, certificates and information as may be required to show
the facts relating to the legality and marketability of the Bonds as the same appear
III-2
from the books and records under their custody and control or as otherwise known
to them, and all such certified copies, certificates and affidavits, including any
heretofore furnished, shall be deemed representations of the City as to the facts
recited therein.
6.03. Tax Covenant. The City covenants and agrees with the holders
from time to time of the Bonds that they will not take or permit to be taken by any
of their officers, employees or agents any action which would cause the interest on
the Bonds to become subject to taxation under the Internal Revenue Code of 1986, as
amended (the Code), and the Treasury Regulations promulgated thereunder (the
Regulations), and covenants to take any and all actions within their powers to
ensure that the interest on the Bonds will not become subject to taxation under the
Code and the Regulations. The City will cause to be filed with the Secretary of
Treasury an information reporting statement in the form and at the time prescribed
by the Code. The City represents and covenants that the City is and will be the
owner of all facilities financed by the 1987 Bonds and will use such facilities to
conduct its municipal liquor business. so long as any Bonds are outstanding, the
City will not enter into any lease, or any operating, use, management or other
agreement respecting said faiclities which would cause the Bonds to be considered
"private activity Bonds" or "private loan bonds" pursuant to Section 141 of the
Code.
6.04. Arbitrage Certification. The Mayor and City Manager, being the
officers of the City charged with the responsibility for issuing the Bonds pursuant to
this resolution, are authorized and directed to execute and deliver to the purchaser
thereof a certificate in accordance with the provisions of Section 148 of the Code, and
the applicable Regulations, stating the facts, estimates and circumstances in existence
on the date of issue and delivery of the Bonds which make it reasonable to expect
that the proceeds of the Bonds will not be used in a manner that would cause the
Bonds to be arbitrage bonds within the meaning of the Code and Regulations.
6.05. Exemption from Rebate Requirement. For purposes of complying
with the requirements of Section 148(f)(4)(C) of the Code relating to the exemption
of certain small governmental units from the rebate requirements of the Code, the
City represents that:
(i) the City is a governmental unit with general taxing powers;
(ii) the 1987 Bonds and the Bonds are not "private activity bonds" as
defined in Section 141 of the Code (Private Activity Bonds);
(iii) ninety-five percent of the net proceeds of the 1987 Bonds were
used for the local governmental purposes of the City;
III-3
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(iv) the aggregate face amount of all.tax-exempt bonds (other than
Private Activity Bonds) issued by the City in calendar year 1987
did not exceed $5,000,000; and
(v) the average maturity of the Bonds does not exceed the average
maturity of the Refunded Bonds.
6.06. Interest Disallowance. The City hereby designates the Bonds as
"qualified tax-exempt obligations" for purpose of Section 265(b) of the Code relating
to the disallowance of interest expenses for financial institutions. The City
represents that in calendar year 1992 it does not reasonably expect to issue
tax-exempt obligations which are not private activity bonds (not treating qualified
501(c)(3) bonds under Section 145 of the Code as private activity bonds for purposes
of this representation) in an amount in excess of $10,000,000.
6.07 Official Statement. The Official Statement, dated August 11, 1992,
relating to the Bonds is hereby approved. The officers of the City are hereby
authorized and directed to execute such certificates as may be appropriate concerning .
the accuracy, completeness and sufficiency of the Official Statement.
6.08. Redemption of Refunded Bonds. The Refunded Bonds shall be
called for redemption on January 1, 1993, and the City Manager is authorized and
directed to take all steps necessary to provide for such redemption.
Dated: August 25, 1992.
Mayor
Attest:
City Clerk
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APPENDIX IV
LIQUOR FUND FINANCIAL STATEMENTS
The City's Liquor Fund is audited annually by an independent certified public accounting firm
.. as part of the City's combined annual financial statements. Provided in the following pages are
the audited balance sheets and combined statement of operations and changes in retained
earnings for the City's Liquor Fund for the years ended December 31, 1986 through 1991. 'For
all years presented, the accrual basis of accounting is used for the Liquor Fund.
The reader should be aware that the complete audits may contain additional information
relating to the data presented here which may interpret, explain or modify it.
}
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CITY OF ST. ANTHONY
LIQUOR FUND
BALANCE SHEET
DECEMBER 31 , 1991 AND 1990
ASSETS 1991 1990
Current Assetst
Cash and Investments $463,379 $365,692 `
Accounts Receivable 10,495 11 ,705 h
Inventory, • at Cost 391 ,054 378,,103
Prepaid Expenses 30,598 24,829
Total Current Assets 895,526 780,329
------------ ------------
Property, Plant and Equipment - At Cost F
Land and Improvements 14,022 14,022
Buildings and Structures 1 , 104,974 1 , 101 ,774
Furniture, Fixtures and Equipment 733,210 724,469
------------ ------------ c
1 ,852,206 1 ,840,265
Less Accumulated Depreciation 961 ,277 852, 120
------------ ------------
Total Property, Plant and Equipment 890,929 988, 145
------------ ------------ i
Other Assets ?
Cash and Investments - Restricted 129,628 127,303
Deferred Charges 17,582 20,513
------------ ------------
Total Other Assets 147,21.0 147,816
------------ ------------
Totals $1 ,933,665 $1 ,916,290
LIABILITIES AND FUND EQUITY
Current Liabilities
Current Maturities of Bonds Payable $65,000 $60,000 r
Accounts Payable 169,037 208,886
Accrued Payroll and Other Liabilities 52,777 50,739
Due to Other Funds 100,000 39,000 fi
Total Current Liabilities 386,814 358,625
Long-Term Debt
Bonds Payable - Net of Current Maturities 415,000 480,000
Total Liabilities 801 ,814 838,625
------------ ------------
Fund Equity - Retained Earnings
Reserved 129,628 127,303
Unreserved 1 ,002,223 950,362
------------ ------------
Total Fund Equity 1 , 131 ,851 1 ,077,665
------------ ------------
Totals $1 ,933,665 $1 ,916,290
IV-2
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CITY OF ST. ANTHONY
LIQUOR FUND
BALANCE SHEET
DECEMBER 31 , 1989 AND 1988
ASSETS 1989 1988
Current Assets
Cash and Investments $211 ,998 $317,432
Accounts Receivable 2,063 14,282
Inventory, at Cost 459,450 434,220
Prepaid Expenses 21 ,504 27,835
------------ ------------
Total Current Assets 695,015 793,769
------------ ------------
Property, Plant and Equipment - At Cost
Land and Improvements 14,022 14,022
Buildings and Structures 1 ,089,513 1 ,076,397
Furniture, . Fixtures and Equipment 713,474 536,519
1 ,817,009 1 ,626,938
Less Accumulated Depreciation 741 ,970 652,450
------------ ------------
Total Property, Plant and Equipment 1 ,075,039 974,488
------------ ------------
Other Assets
Cash and Investments - Restricted 117,843 106,099
Deferred Charges 23,443 26,373
------------ ------------
Total Other Assets 141 ,286 132,472
------------ ------------
Totals $1 ,911 ,340 $1 ,900,729
------------ ------------
------------ ------------
LIABILITIES AND FUND EQUITY
Current Liabilities
Current Maturities of Bonds Payable $55,000 $50,000
Accounts Payable 219,113 255, 145
Accrued Liabilities 43,916 41 ,699
Due to Other Funds 56,875 37,500
------ ------------
Total Current Liabilities 374,904 384,344
------------ ------------
Long-Term Debt
Bonds Payable - Net of Current Maturities 540,000 595,000
------ ------------
Fund Equity - Retained Earnings
Reserved 117,843 106,099
Unreserved 878,593 815,286
------ ------------
Total Fund Equity 996,436 921 ,385
- ------------ ------------
Totals $1 ,911 ,340 $1 ,900,729
------------ ------------
------------ ------------
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CITY OF ST. ANTHONY
LIQUOR N11ND
BALANCE SHEET
f
DECL%MM 31, 1987 AND 1986
1987 1986
ASSETS
Current Assets
Cash and Investments $338, 193 $131,641
Accounts Receivable 59031 541
Inventory, at Lower of Cost or Market 395,032 511,658
Prepaid Expenses 49,402 43,622
------------ ------------
Total Current Assets 787,658 687,462
------------ ------------
Property, Plant and Equipment - At Cost
Land and. Improvements 11, 152 11, 152
Buildings and Structures 1,039,856 582,347
Furniture, Fixtures and Equipment 532,320 377,614
------------ ------------
1,583,328 971, 113
Less Accumulated Depreciation 591 ,475 537,098
------------ ------------
Total Property, Plant and Equipment 991,853 434,015
Other Assets
Cash and Investments - Restricted 107,547 7,690
Deferred Charges 29,304
------------ ------------
Total Other Assets 136,851 7 ,690
Totals $1,916,362 $1, 129, 167
LIABILITIES AND FUND EQUITY
Current Liabilities
Current Maturities of Long-Term Debt $45,000
Accounts Payable 249,042 $176,390
Accrued 'Payroll and Related Taxes 19,072 16,203
Accrued Compensated Absences 19,721 23,303
Due to Other Funds 75,000 25,000
------------ ------------
Total Current Liabilities 407,835 240,896
Long-Term Debt - Net of Current Maturities.
Bonds Payable 645,000
Fund Equity .-Retained Earnings
Reserved 329,833 7,690
Unreserved 533,694 880,581
Total Fund Equity 863,527 888,271
Totals $1,916,362 $1 , 129, 167
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CITY OF ST. ANTHONY
LIQUOR FUND
STATEMENT OF OPERATIONS AND CHANGES IN RETAINED EARNINGS
FOR THE YEARS ENDED DECEMBER 31 , 1991 AND 1990
1991 1990
Operating Revenues
_ Sales and Cost of Sales
" Sales $4,005,405 $3,930,075
Cost of Sales 2,570,762 2,540, 187
------------ ------------
Total Operating Revenues 1 ,434,643 1 ,389,888
Operating Expenses
Personal Services 676,935 676,286
Supplies 40,901 45,288
Contracted Services and Other 360,661 370,473
Depreciation and Amortization 112,088 113,080
Total Operating Expenses 1 , 190,585 1,205, 127
------------ ------------
Operating Income 244,058 184,761
Nonoperating Revenues (Expenses)
Commissions and Other 47 , 118 56,313
Rental Income 28,800 21 ,921
Interest Income 21 ,676 18,778
Interest Expense (40,966) (44,544)
------------ ------------
Total Nonoperating Revenues (Expenses) 56,628 52,468
r ------------ ------------
Income Before Transfers 300,686 237 ,229
Operating Transfers to Other Funds (246,500) ( 156,000)
Net Income After Transfers 54, 186 81 ,229
Retained Earnings Beginning of Year 1 ,077,665 996,436
' ------------ ------------
Retained Earnings End of Year $1 , 131 ,851 $1 ,077 ,665
------------ ------------
i
IV-5
CITY OF ST. ANTHONY
LIQUOR FUND
STATEMENT OF OPERATIONS AND CHANGES IN RETAINED EARNINGS
FOR THE YEARS ENDED DECEMBER 31 , 1989 AND 1988
989 1988
Operating Revenues
Sales and Cost of Sales
Sales $3,728,012 $3,770,665
Cost of Sales. 2,509,977 2,566,227
------------ ------------
Total Operating Revenues 1 ,218,035 1 ,204,438
------------ ------------
Operating Expenses
Personal Services 563,733 555,071
Supplies 39,769 45,037
Contracted Services and Other 311 ,664 343,459
Depreciation and Amortization 98,934 93,163
------------ ------------
Total Operating Expenses 1 ,014, 100 1 ,036,730
Operating Income 203,935 167,708
------------ ------------
Nonoperating Revenues (Expenses)
Commissions 56,970 54,372
Rental Income 15,715 16,332
Interest Income and Other 21 ,413 17, 131
Interest Expense and Other (47,982) (47;685)
- ------------ ------------
Total Nonoperating Revenues (Expenses) 46, 116 40, 150
------------ ------------
Income Before Transfers 250,051 207,858
Operating Transfers to Other Funds (175,000) (150,000)
------------ ------------
Net Income After Transfers 75,051 57,858 .
Retained Earnings Beginning of Year 921 ,385 863,527
Retained Earnings End of Year $996,436 $921 ,385
------------ ------------
------------ ------------
IV-6
CITY OF ST. ANTI IONY
LIQUOR FUND
STATDIENT OF OPERATIONS AND CHANGE=S IN RF'fAINF'D EARNINGS
FOR THE ITAR.S ENDED DECEMBER 31 , 1987 AND 1986
1987 1986
Sales and Cost of Sales
Sales $3,845, 160 $:;,677,200
Cost of Sales 2,800,599 2,G76,791
------------ ------------
Gross Profit 1 ,044,611 1 ,000,409
------------ ------------
Operating Expenses
Personal Services 531,675 507,853
Supplies 36,825 35,018
Contracted Services and Other Charges 338,839 279, 113
Depreciation and Amortization 56, 149 46,766
------------ ------------
Total Operating Expenses 963,488 RG8,750
Operating Income 81 , 123 131 ,659
Other Income
Commissions 37,561 16,094
Interest and Other 14,214 11 ,255
Total Other Income 51,775 57,349
------------ ------------
132,898 189,008
Other Expense
Interest 7,642
Net Income for Year 125,256 189,008
Retained Earnings Beginning of Year 888,271 919,263
Transfer to General Fund ( 150,000) (250,000)
------------ ------------
Retained Earnings End of Year $863,527 $888,271 -
------------ ------------
IV-7
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t.
PROPOSAL
TO: Mr.Thomas Burt, City Manager SALE DATE: August 25, 1992
St. Anthony City Hall
3301 Silver Lake Road
` St. Anthony, MN 55418
(612) 789-8881
ii
RE: $405,000 Liquor Store Revenue Refunding Bonds, Series 1992A
For the Bonds of this Issue which shall mature and bear interest at the respective annual rates, as
follow, we offer a price of $ (Note: This amount may not be less than
$400,140) and accrued interest to the date of delivery.
4.
% 1994 % 1996 % 1998
% 1995 % 1997
In making this offer we accept all of the terms and conditions of the Terms of Proposal published in the
Official Statement dated August 11, 1992. In the event of failure to deliver these Bonds in accordance
with the Terms of Proposal as printed in the Official Statement and made a part hereof, we reserve the
right to withdraw our offer, whereupon the deposit accompanying it will be immediately returned. All
blank spaces of this offer are intentional and are not to be construed as an omission.
Not as a part of our offer, the above quoted prices being controlling, but only as an aid for the
verification of the offer, we have made the following computations:
NET INTEREST COST: $
NET EFFECTIVE RATE: %
Account Members
Account Manager
BY:
The foregoing offer is hereby accepted by the Issuer on the date of the offer by its following officers
duly authorized and empowered to make such acceptance.
City Manager Mayor
SURE-BID Good Faith Check Submitted
PROPOSAL
TO: Mr. Thomas Burt, City Manager SALE DATE: August 25, 1992
St. Anthony.City Hall
3301 Silver Lake Road
St. Anthony, MN 55418
(612) 789-8881
RE: $405,000 Liquor Store Revenue Refunding Bonds, Series 1992A
For the Bonds of this Issue which shall mature and bear interest at the respective annual rates, as
follow, we offer a price of $ (Note: This amount may not be less than
$400,140) and accrued interest to the date of-delivery.
% 1994 % 1996 % 1998
% 1995 % 1997
In making this offer we accept all of the terms and conditions of the Terms of Proposal published in the
Official Statement dated August 11, 1992. In the event of failure to deliver these Bonds in accordance
with the Terms of Proposal as printed in the Official Statement and made a part hereof, we reserve the
right to withdraw our offer, whereupon the deposit accompanying it will be immediately returned. All
blank spaces of this offer are intentional and are not to be construed as an omission.
Not as a part of our offer, the above quoted prices being controlling, but only as an aid for the
verification of the offer, we have made the following computations:
NET INTEREST COST: $
i;
NET EFFECTIVE RATE:
t Account Members
Account Manager
BY:
..............................................................................................................................................................................
The foregoing offer is hereby accepted by the Issuer on the date of the offer by its following officers
duly authorized and empowered to make such acceptance.
City Manager Mayor
SURE-BID Good Faith Check Submitted
D013SEY & WHITNEY
350 PARK AVENUE 2200 FIRST BANK PLACE EAST 201 FIRST AVENUE,S.W..SUITE 340
NEW YORK,NEW YOBS 10022 ROCHESTER,MINNESOTA 55902
(232141-3-9200 MINNEAPOLIS, MINNESOTA 55402-1498 (507)288-3156
1330 CONNECTICUT AVENUE.N.W. (612) 340-2600 1200 FIRST INTERSTATE CENTER
WASHINGTON,D.C.20036 TELEX 29.0605 BILLINGS,MONTANA 59103
(202)857-0700 (406)252-3800
PAX(612)340-2868
3 GRACECHURCH STREET 507 DAVIDSON BUILDING
LONDON HC3V OAT,ENGLAND GREAT PALLS,MONTANA 59401
44-71-929-3334 (406)727-3632
36.RCH TRONCHET 127 EAST FRONT STREET
75009 PARIS,PRANCE WIIJ"R.SOTS MISSOULA,MONTANA 59802
33-1-42-66-59.49 (406)721-6025
(612)34429M _
35 SOUARE DE MEECS 801 GRAND,SUITE 3900
8-1040 BRUSSELS,BELOICM DES MOINES,IOWA 50309
32-2-504-46-11 August 20, 1992 (515)283-1000
Mr. Thomas D. Burt
City Manager
City of St. Anthony ,
3301 Silver Lake Road
St. Anthony MN 55418
RE: Charges for Storm Water Facilities
Dear Tom:
• Enclosed is a revised draft of proposed Ordinance 1992-007 regarding storm
water facilities and the imposition of charges for those facilities. I have revised the
earlier draft, which I understand you based upon the Bloomington ordinance, to
more closely track the provisions of the statute, to include the charges in the
ordinance rather than handling them by separate resolution, and to attempt to
clarify some of the language in the draft based on the Bloomington ordinance.
I have also reviewed the comments from Mr. Cavanaugh regarding this
ordinance as set forth in his letter of August 11, 1992. The following are my
responses to Mr. Cavanaugh's comments according to the numbered sections in his
letter:
1. Authority.
A. I believe his references to Section 103a.231 and 103a.235 should
be to 103B.231 and 103B.235. Under Section 103B.231, the two
watershed districts (Rice Creek and Middle Mississippi) have the
responsibility for the watershed plans required under that
statute. It is not the City who adopts the watershed plan.
B. Mr. Cavanaugh asked whether St. Anthony has a water
management plan. As I understand it, the City's plan is the
DoRSEY 8c WHITNEY
•
Mr. Thomas D. Burt June 20, 1990
Page 2
"City of St. Anthony Comprehensive Drainage Report", dated
July, 1988.
C. Mr. Cavanaugh concludes that the state statutes do not give the
City the authority to establish a storm water drainage utility. In
my opinion, the statutes clearly give the City the authority to
establish the charges referred to in the ordinance. Perhaps it is
the word "utility" which Mr. Cavanaugh questions. It is true
that the statutes do not use this word, and I have accordingly
changed the ordinance throughout to refer to "charges" for
storm water facilities and a "fund" for storm water facilities.
2. Findings and Determinations.
A. Mr. Cavanaugh states that the City is expanding its taxing
authority with this ordinance. -In effect, that is correct, although •
technically these are more in the nature of utility charges than
taxes.
B. The engineer should respond to his questions about standard
rainfall.
C. Mr. Cavanaugh states that the ordinance is based on "pure
government judgment" rather than precise calculations. This is
not true. The charges are to be based on area and upon certain
assumptions, with certain residential charges being based upon
the practicalities of having a uniform residential charge.
3. Rates and Charges. Mr. Cavanaugh challenges the relationship
between the different classes of property. As I understand it, these are
based upon estimates prepared by the City's engineer.
4. Other Land Use. He suggests that the classification should be referred
to the Planning Commission and that there should be public hearings.
It would be entirely inappropriate to refer this type of matter to the
Planning Commission. It also does not seem necessary to have a public
hearing for a matter of this sort, although the Council could choose to
have a public hearing if it so desired. •
DORSEY & WHITNEY
Mr. Thomas D. Burt June 20, 1990
Page 3
5. Exemptions. It seems appropriate that roads and highways are exempt,
since taxes are not paid on such properties.
6. Adjustments. Again, it would be entirely inappropriate to have the
Planning Commission deal with such adjustments, and again, a public
hearing is not required by law.
7. Public Hearing and Notice. As explained at the last meeting, it is very
common to have a provision that states that failure to give notice will
not invalidate the proceedings. This is to avoid challenges where there
is some inadvertent error or other failure of a person to get notice.
8. I have no response to Mr. Cavanaugh's comments on the information
contained in the mailing to residents.
If you have any further questions or comments-on the ordinance, or would
like to make any further changes, please let me know.
V y y yours,
William R. Soth
WRS:gle
Enclosure
•
. CITY OF ST. ANTHONY
ORDINANCE 1992-007
AN ORDINANCE RELATING TO THE CONSTRUCTION, RECONSTRUCTION,
REPAIR AND IMPROVEMENT OF STORM SEWER SYSTEMS AND
RELATED FACILITIES AND CHARGES FOR THE USE AND AVAILABILITY
OF STORM WATER FACILITIES; AMENDING THE ST. ANTHONY 1973
CODE OF ORDINANCES BY ADDING A NEW SECTION 260
The City Council of the City of St. Anthony hereby ordains:
Section 1. The St. Anthony 1973 Code of Ordinances is amended to add a new
Section 260 to read as follows:
Section 260 - STORM WATER FACILITIES AND CHARGES
260.00. Establishment of Storm Water Facilities Fund. Pursuant to Minn. Stat. §
444.075, the City establishes a storm water facilities fund and authorizes the
imposition of just and equitable charges for the use and availability of storm sewer
facilities. For purposes of this Section 260, all provisions of Minn. Stat. § 444.075
relating to storm water facilities are incorporated by reference and are made a part of
this Section.
260.05. Findings and Determinations.
Subd. 1. In the exercise of its governmental authority and in order to
promote the public health, safety, convenience and general welfare, the City
has constructed, operated and maintained a storm sewer system, including
mains, holding areas and ponds, and other appurtenances and related
facilities (the "facilities"). This Section 260 is adopted in the further exercise
of such authority in the future, for the same purposes, and for purposes of
financing the-cost of building, constructing, reconstructing, repairing,
operating, maintaining, enlarging, improving or in any other manner
obtaining, the facilities or any portion of them (the "facilities costs").
Subd. 2. The facilities have heretofore been financed and paid for through the
imposition of special assessments and ad valorem taxes. It is now necessary
and desirable to provide an alternative method of recovering some or all of
the future facilities costs through the imposition of charges as provided in
this Section.
Subd. 3. In imposing charges for the facilities ('facilities charges"), it is.
• necessary to establish a procedure designed to make the charges just and
equitable. Taking into account the status of completion of the facilities, past
methods of recovering facilities costs, the topography of the City, and other •
relevant factors, it is determined that it would be.just and equitable to assign
responsibility for some or all of the future facilities costs on the basis of the
expected storm water runoff from the various parcels of land within the City
during a standard rainfall event. For purposes of this Section, a standard
rainfall event is defined as a 10-year rainfall of 24-hour duration, assuming
Hydrologic Soil Group W soils according to methods in the Hydrology Guide
for Minnesota, published by the Soil Conservation Service.
Subd. 4. The Council finds that assigning costs and making facilities charges
based upon expected typical storm water runoff cannot be done with
mathematical precision but can only be accomplished within reasonable and
practical limits. The provisions of this Section undertake to establish a
reasonable and practical method for imposing such charges.
260.10. Rates and Charges.
Subd. 1. Rates and charges for the use and availability of the facilities will be
determined by the use of a Residential Equivalent Factor ("REF"). For
purposes of this Section, one REF is defined as the ratio of runoff volume (in
inches) for a_particular land use, to the runoff volume (in inches) for a typical
single-family residential lot.
Subd. 2. The City Council hereby adopts the following char ges for the use and •
availability of the facilities. The charges to be made against each parcel of land
in the City will be determined by multiplying the REF for the parcel; based on
actual land use, times the parcel's acreage, times the facilities charge per acre,
except that all R-1, R-1A and R-2 residential parcels will be presumed to be 1/3
acre per dwelling unit ($12.00 per dwelling unit) on the presumption that
most such parcels in the City are approximately that size and in order to avoid
computation of the actual area of every such parcel in the City. The REF's for
the following land uses within the City and the billing classifications and
facilities charges for such land uses are as follows:
Classification Land Uses REF Charge
1 Cemeteries,parks,golf courses, .60 $21.60 per acre
railroads, vacant land
2 R-1, MA and R-2 residential 1.00 $12.00 per unit
3 R-3 residential .50 $6.00 per unit
4 Public and private schools and 1.38 $49.68 per acre
institutional uses
•
-2-
5 R4 residential, churches and 1.76 $63.36 per acre
mobile home parks
6 Commercial and industrial 2.20 $79.20 per acre
260.15. Other Land Uses. Other land uses not listed in the table in Section 260.10
will be classified by the Director of Public Works by assigning them to classes most
nearly like the listed uses from the standpoint of runoff volume for the standard
rainfall event. An appeal from.the Director of Public Work's determination of the
property classification may'be made to the City Council.
260.20. Exemptions. The following land uses are exempt from facilities charges: (a)
City, County and State road and highway rights-of-way, (b) lakes and ponds, and (c)
City-owned property.
260.25. Separate Fund. All facilities charges, when collected, and all moneys
received from the sale of any facilities or equipment or any by-products, will be
placed in a separate fund, and used first to pay the normal, reasonable and current
costs of operating and maintaining the facilities. The net revenues received in
excess of the costs may be pledged by resolutions of the Council, or may be used
though not so pledged, for the payment of principal and interest on obligations
issued as provided in subdivision 2, of Minn. Stat. § 444.075, or to pay the portion of
the principal and interest as may be directed in the resolutions.
i 260.30. Adjustment of Charges. The City Council may by ordinance adopt policies
providing for the adjustment of facilities charges for parcels or groups of parcels,
based upon land use data supplied by affected property owners, which data
demonstrates a runoff volume.for the standard rainfall event substantially different
from the REF being used for the parcel or parcels. Such adjustment will be made
only upon recommendation of the director of Public Works and will not be made
effective retroactively.
260.35. Public Hearin; and Notice. The City will hold a hearing prior to
determining whether to build, construct, enlarge or improve facilities financed in
whole or in part by the imposition of facility charges. Notice of such hearing will be
published in the official City newspaper at least 10 days prior to the date of hearing.
Owners of all property adjoining a proposed improvement will be mailed or served
with a notice at least 10 days in advance of the hearing. Failure to give mailed
notice or any defects in the notice will not invalidate the proceedings.
260.40. Establishment of a Tax Lien. Any facilities charges in excess of 90 days past
due on October 1 of any year may be certified to the County Auditor for collection
with real estate taxes in the following year pursuant to Minn. Stat. § 444.075, Subd. 3.
In addition, the City may bring a civil action or exercise other legal remedies to
collect unpaid facilities charges.
-3-
260.45. Recalculation of Charges. If a property owner or other person.responsible for
paying facilities charges questions the correctness of the charges, such person may
have the determination of the facilities charges recomputed by written request to the
Director of Public Works. Such request must be made within 30 days of the mailing
of the billing in question.
Section 2. This ordinance shall be in effect as of the date of its
publication.
First Reading: August 11, 1992
Second Reading:
Third Reading:
Mayor
ATTEST:
City Clerk
Published in the St. Anthony Bulletin on , 1992.
-4-
•
CITY OF ST. ANTHONY
HOUSING AND REDEVELOPMENT AUTHORITY AGENDA
AUGUST 25, 1992
I. CALL TO ORDER.
II. ROLL CALL.
III. APPROVAL OF AUGUST 25, 192 H.R.A. AGENDA.
IV. APPROVAL OF JULY 28, 1992 H.R.A. MINUTES.
• V. CLAIMS.
A. HENNEPIN COUNTY - $2,594.62.
B. BRUCE A. LIESCH ASSOCIATES - $2,267.97.
C. LYLE H. NAGELL Co. - $2,500.00.
D. DORSEY & WHITNEY - $1,872.75.
E. DORSEY & WHITNEY - $457.27.
F. DORSEY & WHITNEY - $2,431.75.
VI. PROPOSED APACHE PLAZA REDEVELOPMENT PLAN AND TAX INCREMENT
FINANCING PLAN (RESOLUTION 1992-005).
VII. ADJOURNMENT.
1 CITY OF Sr. ANTHONY
2 HOUSING AND REDEVELUPMEWr AUII30RITY MEETING
3 JULY 28, 1992
4
5
6 I CALL TO ORDER
7
8 The meeting was called to order by Chairman Ranallo at 9:26 p. m.
9
10 II ROLL CALL
11
12 H.R.A. present: Ranallo, Vice Chairperson Enrooth, Commissioners Fleming
13 and Wagner.
14 H.R.A. absent: Secretary Treasurer Marks.
15
16 Staff present: Executive Director Burt and Management Assistant Urbia
17
18 III APPROVAL OF JULY 28, 1992 AGENDA
19
20 Motion by Wagner, seconded by Enrooth to accept the agenda as presented.
21
22 Motion carried unanimously.
23
24 IV APPROVAL OF JULY 14, 1992 H.R. -A. MEETING MINUTES
25
26 Motion by Fleming, seconded by Wagner to approve the minutes for the
27 July 14, 1992 H.R.A. meeting as presented.
• 28
29 V CLAIMS
30
31 A. Springsted, Inc.
32
33 Motion by Enrooth, seconded by Wagner to approve payment of $6,813.00 to
34 Springsted; Inc. for financial advisory services performed from March 1,
35 1992 through July 15, 1992 related to the Apache Plaza Tax Increment
36 Financing study for which the H.R.A will be reimbursed by the developer.
37
38 Motion carried unanimously.
39
40 VI RESOLUTION 1992-04 APPROVING 1992B ASS TO THE KENZIE TERRACE
41 REDEVELOPMENT PLAN AND REQUESTING COUNCIL APPROVAL
42
43 The Executive Director drew attention to one typo "EDA" instead of "HRA"
44 in the resolution. He then explained that after the additional property
45 described in the amendment is added to the Kenzie Terrace Redevelopment
46 Plan, expenditures for public improvements Under Plan D illustrated in
47 Exhibit A are authorized to be paid from tax increment revenue derived
48 from the Kenzie Terrace Tax Increment District. The public improvements
49 will include the acquistions of the Good Luck and Rosie's properties
50 with the realignment of 27th Avenue and Coolidge as well as some improve-
51 ments to the landscaping in the property which is acquired.
52
•
1 REGULAR H.R.A. MEETING
2 JULY 28, 1992
3 PAGE 2
4
5
6 The Executive Director explained that the Kenzie Terrace Tax Increment
7 District which includes the Kenzington, the Walker, and Autumn Woods
8 housing projects is a very healthy redevelopment district with an anti-
9 cipated payback in twelve years as compared to other districts with 25
10 year paybacks. Using approximately $1,000,000.00 out of the District
11 to buy additional land, redesign roads and water and sewer lines in
12 the acquired property is a justifiable use of those moneys the Executive
13 Director said and it will only extend the District for six months.
14
15 Mr. Burt indicated he was sorry some the City residents who would have
16 been the most affected by the improvements had left when Mayor Ranallo
17 had recessed the Council meeting for the H.R.A. meeting even though the
18 Mayor had announced the Council meeting would be resumed after related
19 matters had been taken care by the H. R. A.
20
21 The Executive Director reported the City had sent notices of the proposed
22 action to School District #282 and to Hennepin County as required by law.
23 He indicated the only response had come from Hennepin County Commissioner
24 Judy Makowske who had told him the Plan had been discussed at the County
25 level and indicated that she agreed with that proposal. The 90 days re-
26 sponse time had expired with no further input from the school district or
27 county.
28
29 Chairman Ranallo asked whether the District would get back the costs •
30 of acquiring the two cafe properties. Mr. Burt said the proposed road
31 alignment would run right through the Good Luck property so there would be
32 no return on that property and the Rosie's site is going to be rezoned'
33 from Commercial to Residential to blend in better with the surrour '.ng
34 residential properties. He added that clearly the return on the E e
35 of residential would be nowhere near what it would be for commercial
36 property. The Planning Commission had even suggested holding the sites
37 for ponding but the available area would never even help with the size of
38 a pond needed to store runoff storm water from the South End.
39
40 A good deal of interest in developing the acquired property has been
41 shown, from a hospice which would be a Commercial use and unacceptable,
42 to people who would like to build a home there. The Planning Commission
43 has already perceived the need to restrict the type of home which might
44 be built on the acquired property in regard to dollar value and building
45 height. They perceived a rambler would be better than a two story
46 structure where the inhabitants would be looking down on the Stonehouse.
47
48 Motion by Wagner, seconded by Enrooth to adopt HRA Resolution 1992-04
49 which approves 1992 B Amendments to the Kenzie Terrace Redevelopment Plan
50 and the Kenzie Terrace Tax Increment Financing Plan and requests approval
51 of the City of St. Anthony Council.
52
II
�I
1 REGULAR H.R:A. MEETING
2 JULY 28, 1992
3 PAGE 3
4
5
6 Motion carried unanimously.
7
8 VII AWOURNMENP
9
10 Motion by Wagner, seconded by Enrooth to adjourn the July 28, 1992 Housing
11 and Redevelopment Authority meeting at 9:32 p. m.for resumption of the
12 City Council meeting.
12
13 Motion carried unanimously.
14
15 Respectfully submitted,
16
17
18 Helen Crowe, Acting Secretary
19
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•
BILLING FOR COUNTY TIF ADMINISTRATIVE
COSTS INCURRED .IN 1991
City of St. Anthony
TIF District Number Maintenance Costs
1950 $2 , 040. 47
1952 554 . 15
Total due Hennepin County $2 , 594 . 62
•
DEPARTMENT OF PROPERTY TAX AND PUBLIC RECORDS
A607 Government Center
HENNEPIN
Minneapolis, Minnesota 55487-0067
Crossroads To Service
July 24, 1992
Connie Kroeplin
Clerk
City of St. Anthony
3301 Silver Lake Road Northeast
St. Anthony, Minnesota 55418
Dear Ms. Kroeplin:
Enclosed is a bill for county costs incurred for administration of tax increment
districts in your city from January 1 , 1991 to December 31, 1991 . This billing is
authorized by Minnesota Statutes, section 469.176, subdivision 4h. •
TIF administration costs consist of maintenance costs for existing districts and one-
time certification costs for new districts. These costs are derived from the actual
1991 budget expenditure reports for property tax functions for the Department of
Property Tax and Public Records.
County maintenance costs totaling $149,345.30 have been charged to TIF districts
in the county for 1991 . Billings are substantially higher this year because the costs
include the entire year for the first time. The billing for last year covered only eight
months, as provided by law. One half of the maintenance cost is apportioned
equally to each TIF district or enlarged district ($379.62 each) to reflect fixed costs
per district. The remaining half of the maintenance cost is spread to each district
based on the number of parcels; a per parcel charge of $5.63 is included in the
maintenance cost.
Certification costs are included for newly certified districts to reflect the average
direct personnel costs incurred per district to compile and input tax increment data
into the computer system. This is a one-time charge for new districts.
Records of administrative costs and allocation methods are available for review in
my office by appointment. If you have any questions or comments on this billing
or on Hennepin County TIF administration in general, feel free to write or phone me •
at 343-5668.
HENNEPIN COUNTY
an equal opportunity employer
BRUCE A. LIESCH ASSOCIATES, INC.
13400 15TH AVENUE NORTH
MINNEAPOLIS, MN 55441 (612) 559-1423
INVOICE
July 31 , 1992
Project 61288.00
MR. DAVID URBIA, MANAGEMENT ASSISTANT
CITY OF ST. ANTHONY
3301 SILVER LAKE ROAD
ST. ANTHONY, MN 55418-1697
Project: ST. ANTHONY KENZIE-COOLI
Professional Services: July 1 , 1992 through July 31 , 1992
---------------------------------------------------------
PROFESSIONAL PERSONNEL
Hours Rate Amount
Davis, Steven K. 26. 3 50.00 1 , 315.00
Lichter, John 1 .0 104.00 104.00
McCoy, Alice 4.0 35.00 140.00
Olson, Kenneth 0 .5 104.00 52.00
Samberg, Linda 1 .0 27 .00 27 .00
Van De North, John 2 .0 35. 00 70.00
Winterhalter, Melissa 3 .0 27 .00 81 .00
• Totals 37 .8 ----- -
Total Labor 1 ,789 .00
SUBCONTRACTORS
Subcontractors
AP 11984 07/30 MACNEIL ENVIRONMENTA Lab Analysis 99.00
Total Subcontractors 99.00
REIMBURSABLE EXPENSES
Postage 8.72
MI 00701 07/31 Misc. Expenses Postage
MI 00701 07/31 Misc. Expense Postage 2.90
Account Subtotal 11 .62
Mileage
EX 00416 07/15 Davis, Steven K. Mileage 07/08 16. 10
Copying Costs
MI 00701 07/31 Misc. Expense Copy Cost 166. 50
MI 00701 07/31 Misc. Expense Copy Cost 95.75
Account Subtotal 262 . 25
Misc Reimbursable Expens
AP 11792 07/21 MINNESOTA POLLUTION File Search 90.00
Total Reimbursables 379 .97
• TOTAL THIS INVOICE 2, 267 .97
NET 30 DAYS
I
N2.21) WFW
LYLE H. NAGELL CO., Inc. 2543
7515 WAYZATA BOULEVARD, SUITE 115
MINNEAPOLIS, MINNESOTA 55426
Telephone: 544-8966
FAX 544-8969
TAX ID NUMBER 41-094-1600
St. Anthony Village August 11, 1992
Administrative Office
3301 Silver Lake Road
St. Anthony, MN 55418-1699
Attn: Thomas D. Burt, City Manager
Appraisal of: 2905 Kenzie Terrace, St. Anthony, MN $2,500.00
•
PLEASE - - RETURN ONE COPY OF INVOICE WITH PAYMENT, OR NOTE INVOICE NUMBER ON YOUR CHECK
•
DORSEY & WHITNEY
A P.......... I.,a t..o Pmre..m..a Co.ro.•nma
P.O. BOX 1650
.MINNEAPOLIS, MINNESOTA 55450-1650
(612) 340-2600
(Tax Identification No.41-0223777)
STATEMENT OF ACCOUNT FOR PROFESSIONAL SERVICES
Client: 178820
Housing and Redevelopment Authority of St. Anthony
Attn: Mr. Thomas D. Burt July 24, 1992
3301 Silver Lake Road Invoice No. 285034
Minneapolis MN 55418
For Legal Services Rendered Through 06/30/92
Matter: 75
City of St. Anthony HRA General
Kenzie Terrace: Draft amendment documents;
obtain TIF Plans from Hennepin County 950.25
• Clark Station Property Redev.: Letter to T. Burt
regarding telephone conference with D. Amerman and
status of proposal; conference with We Soth regarding
environmental matters; telephone conference with
M. Kaster regarding PetroFund issues; attend meeting
at City Hall with owner and City representatives;
telephone conference with D. Urbia regarding letter
to D. Fisher; prepare contract regarding same;
telephone conference with We Soth regarding
environmental consulting agreement; review same;
prepare consulting contract 871.50
Attend HRA Meeting 51.00
Total For Services $1,872.75
Total This Matter $1,872.75
WRS/615
Service charges are based on rates established by Dorsey&t Whitney. A schedule of those rates has been provided and is available upon request.
Disbursements and service charges, which either have not hecn received or processed,\ill appear on a latcr statement.
PAYAIE.NT DUE. UPON RECEIPT
DORSEY & NVHITNEY
A F.......... �...,.,., �.o...., ..,c�..o..,�,.
P.O. BOX 1680
MINNEAPOLIS, MINNESOTA 55480-1650
(612) 340-2600
(Tom ldeetl/lcelloe No. 41.0717377)
STATEMENT OF ACCOUNT FOR PROFESSIONAL SERVICES
Client: 178820
Housing and Redevelopment Authority of St. Anthony
Attn: Mr. Thomas D. Burt July 24, 1992
3301 Silver Lake Road Invoice No. 285034
Minneapolis W 55418
Page 2
For Legal Services Rendered Through 06/30/92
Matter: 83
Lang-Nelson Project
Review easement agreements with St. Anthony LaNel; record the
same in Hennepin County; prepare letter to T. Burt regarding
Autumn Wood easements; telephone conference with J. Gilligan
regarding refinancing project; letter to City regarding
easements
Total'For Services $438.75
Disbursements and Service Charges
Postage Charges 4.32
Reproduction Charges 14.20
Disbursements and Service Charges Total $18.52
Total This Matter $457.27
Service charges are based on rates established by Dorsey A Whitney. A schedule of those rates has been provided and is available upon request.
Disbursements and service charges, which either have not been received or processed,will appear on a later statement.
PAYNIENT DUE UPON RECEIPT
DORSEY & NVHITNEY
r..,.e....L . �...r.0?e..u..a ea..o..,...
P.O. BOX 1680
MINNEAPOLIS. MINNESOTA 55480-1680
(612) 340-2600
(Tea Ideatlrlcatl.■No. 41.0733337)
STATEMENT OF ACCOUNT FOR PROFESSIONAL SERVICES
Client: 178820
Housing and Redevelopment Authority of St. Anthony
Attn: Mr. Thomas D. Burt July 24, 1992
3301 Silver Lake Road Invoice No. 285034
Minneapolis MN 55418
Page 3
For Legal Services Rendered Through 06/30/92
Matter: 98
Apache Plaza TIF Proj.
Telephone conferences regarding tax increment financing
structuring; telephone conferences with Ramsey County regarding
status of title on Apache Plaza; telephone conferences with
Chicago Title regarding preparing an owner's and encumbrance
report; conference with C. Rannallo, G. Wagner, T. Burt, W. Soth
and B. Thistle on Apache Plaza TIF proposal; conferences
regarding tax increment financing alternatives for Cub store:
check status of title, mortgages, separate parcels, etc., for
Apache property; interoffice conferences regarding checking
title and mortgages on Center; telephone conferences regarding
Cub proposal; conference at St. Anthony city hall on TIF
proposal; telephone conference with J. Gilligan regarding
proposed Cub store; telephone conferences with P. Plestring and
T. Burt; begin mapping out property on half-section map and
summarizing owners and encumbrances report; draft memorandum to
City Council regarding Apache Plaza TIF proposal; telephone
conference with T. Burt; attend meeting at St. Anthony city hall
with T. Burt and P. Pelstring.
Total For Services $2,428.75
Disbursements and Service Charges
Fax Charges 3.00
Disbursements and Service Charges Total $3.00
Total This Matter $2,431.75
Service charges are based on rates established by Dorsey& Whitney. A schedule of those rates has been provided and is available upon request.
Disbumments and service charges.which either have nut been received or processed,Neill appear on a later statement.
PAYMENT DUE UPON RECEIPT
CITY OF ST. ANTHONY
H.R.A. RESOLUTION 1992-005
• Commissioner introduced the following
resolution and moved its adoption:
RESOLUTION RELATING TO REDEVELOPMENT PLAN FOR
REDEVELOPMENT PROJECT AREA NO. 3-RAMSEY COUNTY, AND
THE REDEVELOPMENT PROJECT TO BE UNDERTAKEN
PURSUANT THERETO AND TAX INCREMENT FINANCING PLAN
FOR TAX INCREMENT FINANCING DISTRICT NO. 3-RAMSEY
COUNTY; APPROVING REDEVELOPMENT PLAN FOR
REDEVELOPMENT PROJECT AREA NO. 3-RAMSEY COUNTY AND
THE REDEVELOPMENT PROJECT TO BE UNDERTAKEN
PURSUANT THERETO, TAX INCREMENT FINANCING PLAN FOR
TAX INCREMENT FINANCING DISTRICT NO. 3-RAMSEY COUNTY
AND THE ESTABLISHMENT OF TAX INCREMENT FINANCING
DISTRICT NO. 3-RAMSEY COUNTY, AND REQUESTING THE
APPROVAL OF THE CITY COUNCIL
BE IT RESOLVED, by the Housing and Redevelopment Authority in and for
the City of St. Anthony, Minnesota (the "HRA"), as follows:
1. It has been proposed that the HRA approve a redevelopment plan, as
defined in Minnesota Statutes, Section 469.002, subdivision 16, to be designated as
Redevelopment Plan for Redevelopment Project Area No. 3-Ramsey (the
"Redevelopment Plan"), and a redevelopment project to be undertaken pursuant
thereto, as defined in Minnesota Statutes, Section 469.002, subdivision 14, to be
designated as Redevelopment Project No. 3-Ramsey County (the "Project"), and that
in order to finance the public redevelopment costs to be incurred by the HRA in
connection with the Redevelopment Plan and Project, it has been further,proposed
that the HRA approve a tax increment financing plan, pursuant to the provisions of
Minnesota Statutes, Section 469.174, subdivision 9, to be designated as Tax
Increment Financing District No. 3 Ramsey County (the "District").
2. The Redevelopment Plan, the Project, the Financing Plan and the
District are described in the attached documents entitled "Redevelopment Plan For
Redevelopment Project No. 3-Ramsey County and Tax Increment Plan for Tax
Increment Financing District No. 3-Ramsey County, and the Redevelopment so
described are hereby approved. The Executive Director is further authorized and
directed to request the appropriate authorities of Ramsey County to certify the
original net tax capacity of the District pursuant to Minnesota Statutes, Section
469.177 following approval of the Financing Plan and District by the St. Anthony
City Council in accordance with Minnesota Statutes, Section 469.175, subdivision 3.
3. The Redevelopment Plan and the Project were transmitted to the St.
Anthony Planning Commission (the "Commission") for its review and opinion.
• The Commission delivered to the HRA its written opinion on the Redevelopment
Plan and the Project.
• 4. The Redevelopment Plan, the Project, the Financing Plan and the
District, together with the written opinion of the Commission, have been presented
to the City Council for a public hearing on the Redevelopment Plan and the Project
pursuant to Minnesota Statutes, Section 469.028, subdivision 1 and the Financing
Plan pursuant to Minnesota Statutes, Section 469.175, subdivision 3.
Dated the 25th day of August, 1992.
Chairman
Attest:
Executive Director
•
•
•
REDEVELOPMENT PLAN FOR
REDEVELOPMENT PROJECT AREA NO. 3
RAMSEY COUNTY
and
TAX INCREMENT FINANCING PLAN FOR
TAX INCREMENT FINANCING_ DISTRICT NO. 3
• RAMSEY COUNTY
August 25, 1992
HOUSING AND REDEVELOPMENT AUTHORITY
OF ST. ANTHONY, MINNESOTA
•
TABLE OF CONTENTS
Contents is for convenience of reference only •
This Table of Co Y and is not
part of the Redevelopment Plan or the Tax Increment Financing Plan.
Page
I. INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
A. Statement of Need and Statutory Authority . . . . . . . . . . . . . . . . . 2
B. Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
II. REDEVELOPMENT PLAN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
A. Statement of Need . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
B. Statement of Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
C. Undertaking of Redevelopment Project . . . . . . . . . . . . . . . . . . . . . 5
III. TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT
FINANCING DISTRICT NO. 3 - RAMSEY COUNTY. . . . . . . . . . . . . . . . 5
A. Statement of Objectives and Redevelopment Project . . . ... . . . . 5
.B. Property To Be Included in Tax Increment District . . . . . . . . . . . . . 6
C. Estimated Public Redevelopment Costs, Property to be
Acquired, Contracts and Development Expected to Occurr . . . . . . 6
D. Payment of Redevelopment Costs. . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 •
E. Determination and Use of Tax Increment . . . . . . . . . . . . . . . . . . . 7
F. Impact of Tax Increment Financing on Other Taxing
Jurisdictions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
IV. AMENDMENTS TO PROGRAM AND PLANS . . . . . . . . . . . . . . . . . • . 9
EXHIBITS
A. Redevelopment Project Area . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A-1
B. List of Parcels in Tax Increment Financing District No. 3 -
RamseyCounty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B-1
C. Present Estimate of Public Redevelopment Cost .. . . . . . . . . . . . . . . . . C-1
D. Report of Ulteig Engineers, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . D-1
E. Estimate of Tax Increment to be Received. . . . . . . . . . . . . . . . . . . . . . . . E-1
F. Estimate of Impact of District on Other Taxing Jurisdiction . . . . . . . F-1
-i- •
• I. INTRODUCTION
A. Statement of Need and Statutory Authority. Apache Plaza
Shopping Center (the "Shopping Center") is located at 37th Avenue North and
Silver Lake Road in the City of St. Anthony, Minnesota. The Shopping Center
consists of 5.Buildings; (i) the main center, a large multi-tenant building, (ii) a 90,500
square foot warehouse type building presently used for commercial businesses, (iii) a
sports and health club building which is presently vacant, (iv) a gas station building
which is presently vacant and (v) a building occupied by a Tires Plus store. The
buildings included in the Shopping Center were constructed at various times
throughout the past 30 years, with the main center and a 90,500 square foot
warehouse constructed in the early-1960's. The condition of the Shopping Center
and its economic viability has declined in the past decade and the Shopping Center
is in need of substantial renovation in order to halt this decline and return to
economic viability. The decline of the Shopping Center has resulted in a reduction
in the tax capacity of the Shopping Center and a resulting decline in tax revenues
from thq Shopping Center to the County and other local taxing jurisdictions. The
owner of the Shopping Center has proposed a major renovation of the Shopping
Center and has requested assistance from the Housing and Redevelopment
Authority of St. Anthony, Minnesota (the "HRA") and the City of St. Anthony,
Minnesota (the "City") in connection with such renovation. The renovation of the
Shopping Center will consist of the demolition of a portion of the Shopping
Center's main center and the construction thereon of a new grocery store, the
substantial remodeling and renovation of the remaining main center, demolition of
the closed sports and health club and various public improvements including
improved storm water drainage from the Shopping Center. The owner of the
Shopping.Center has represented to the City and HRA that the renovation of the
Shopping Center will not occur unless financial assistance is provided by the HRA
and the City. The HRA has determined that the renovation of the Shopping Center. .
is in the best interests of the residents of the City and that the HRA and the City may
be able to assist in the renovation of the Shopping Center and that in order to
provide such assistance it is necessary to approve a Redevelopment Plan to be
designated as Redevelopment Plan for Redevelopment Project Area No. 3 - Ramsey
County (the "Redevelopment Plan") covering the area included in the Shopping
Center and to take certain actions pursuant to a Redevelopment Project (the
"Redevelopment Project") to be undertaken pursuant to the Plan.
In order to finance the public redevelopment costs to be paid or
incurred by the HRA and City pursuant to the Redevelopment Plan and
Redevelopment Project, it is proposed that the HRA adopt a tax increment financing
plan (the "Financing Plan"), which provide for the creation of a Tax Increment
Financing District No. 3 - Ramsey County (the "District").
•
-2-
The Redevelopment Plan and the Financing Plan are adopted by the
City Council of the City pursuant to Minnesota Statutes, Sections 469.001 to 469.047 •
and 469.174 to 469.179.
B. Definitions. Each of the words and terms defined in'this Section
shall for all purposes of the Redevelopment Plan and the Financing Plan, have the
meanings given to them in this Section B:
"Bonds" means the tax increment bonds and any other obligations
issued by the City, the principal of and interest on which are payable in whole or in
part out of the Tax Increment, to finance or provide for the payment of the Public
Redevelopment Cost.
"Bond Resolution" means any and all resolutions, ordinances, trust
indentures or other documents under which any Bonds are sold, issued or secured.
"Captured Tax Capacity" means for the District that portion of the Tax
Capacity in excess of the Original Tax Capacity as adjusted from time to time, if any.
"City" means the City of St. Anthony, Hennepin and Ramsey Counties,
Minnesota.
"District" means Tax Increment Financing District No. 3 - Ramsey
County, established pursuant to the Tax Increment Financing Plan.
"Financing Plan" means the Tax Increment Financing Plan for Tax
Increment Financing District No. 3 - Ramsey County as approved and as
supplemented and amended from time to time by the City Council of the-City.
"HRA" means the Housing and Redevelopment Authority of St.
Anthony, Minnesota.
"Original Tax Capacity" means the Tax Capacity of all taxable property
in the Tax Increment District as most recently determined by the Commissioner of
Revenue of the State of Minnesota as of the date of certification thereof by the
County Auditor pursuant to Minnesota Statutes, Section 469.177 and as thereafter
adjusted and certified by the County Auditor pursuant to Minnesota Statutes,
Section 469.177.
"Outstanding" when used with respect to the Bonds, means Bonds
which have not been paid, redeemed or discharged in accordance with their terms
or the terms of a Bond Resolution.
-3-
"Parcel" means a lot, parcel or tract of plat of land comprising a single
unit for purposes of assessment for real estate tax purposes, as of the date of
adoption of the Financing Plan.
"Public Redevelopment Costs" means the total amount expended and
to be expended by the City on Redevelopment Activities as provided in the
Redevelopment Plan and Financing Plan.
"Redevelopment Activities" means all actions taken or to be taken by
the City or HRA in establishing, implementing and carrying out the
Redevelopment Project.
"Redevelopment Plan" means Redevelopment Plan for
Redevelopment Project Area No. 3 - Ramsey County, as_approved and amended
from time to time by the HRA pursuant to law.
"Redevelopment Project" means Redevelopment Project for
Redevelopment Project Area.
"Redevelopment Project Area" means the Land area or parcels
described in Exhibit A.
"Shopping Center" means the Apache Plaza Shopping Center located
within the Redevelopment Project Area.
"Tax Capacity" means the net tax capacity of all taxable property in the
District as determined-from time to time pursuant to state law.
"Tax Capacity Rate" means with respect to taxes payable in any year the
lesser of W the local taxing district tax capacity rates for taxes payable in such year or
00 the "original tax capacity rate" for the District as defined and calculated in
accordance with Minnesota Statutes, Section 469.177, Subdivision la.
"Tax Increment" means that portion of the ad valorem taxes generated
by the extension of the Tax Capacity Rate to the Captured Tax Capacity of taxable
property in the District.
II. REDEVELOPMENT PLAN
A. Statement of Need. There is a need for redevelopment of the
Shopping Center which will result in. the increase of employment opportunities for
residents of the City, the increase of the value of property subject to taxation by the
City and other local government units, and the increase of general economic activity
-4-
in the City, all of which will reduce unemployment, improve living conditions, •
promote desirable redevelopment of land, a portion of which is presently occupied
by buildings which contain defects in structural elements or a combination of
deficiencies in essential utilities and facilities, including, access to public sewer, light
and ventilation and fire protection, layout, which defects or deficiencies are of total
significance to justify substantial renovation or clearance, and a portion of which is
presently,occupied by buildings which require substantial renovation or clearance
because of conditions such as inadequate street layout, unusual grade conditions,
incompatible uses or land use relationships and obsolescence to the extent such
buildings are not suitable for improvement or conversion at a cost reasonably
related to the public purpose to be served without major residential clearance and
with full consideration of the preservation of beneficial aspects of the urban and
natural environment, prevent the emergence of blighted property and areas, and
encourage and enhance the general health and welfare of the residents of the City.
The actions herein proposed to be taken by the HRA and the City with respect to the
Redevelopment Project are necessary to secure the redevelopment of the property
included in the Project Area, at this time and in a manner which will best meet
those needs.
B. Statement of Objectives. The objectives sought to be accomplished
by the HRA and the City in establishing and carrying out the Redevelopment Project
and in financing of the Public Redevelopment Cost thereof, as specified herein, are
to meet the needs specified in paragraph A:
a. by promoting and securing the prompt renovation of the property in
the Project Area in a manner consistent with applicable governmental
comprehensive plans and with a minimal adverse impact on the
environment, a portion of which property is not now in productive use;
b. by promoting and securing additional employment opportunities
for residents of 'the City and surrounding area, thereby improving living
standards and reducing unemployment;
c. by correcting storm water run-off problems from the property in the
Project Area; and
d. by halting the decline and securing the increase in value of property
subject to taxation by the City, Ramsey County and Independent School
District No. 282, and other local government taxing jurisdictions, in order to
better enable such entitles to pay for public improvements and governmental
services and programs required to be provided by them.
C. Undertaking of Redevelopment Project. To meet the objectives set
forth in paragraph B, the HRA and the City will undertake the Redevelopment
-5- •
Project. Pursuant to the Redevelopment Project, the HRA will assist with the
renovation of the Project Area. Pursuant to the Redevelopment Project, the HRA
and City will either directly or through financial assistance to third parties assist in
the land acquisition, demolition of existing buildings, renovation or remodeling of
existing building and construction of public improvements which are necessary to
meet the needs specified in paragraph A. Such Redevelopment Project is expected
to occur over a number of years due to the nature of the property in the Project Area
and the continuing evolution and changes which are expected to occur with respect
to retail shopping facilities.
III. TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT
FINANCING DISTRICT NO. 3 - RAMSEY COUNTY
A. Statement of Objectives and Redevelopment Project.
See paragraphs B and C of the Redevelopment Plan.
B. Property To Be Included in Tax Increment District.
The Parcels located in the City of St. Anthony, Ramsey County,
Minnesota set forth on Exhibit B shall constitute the Parcels in the District, such
Parcels are the same Parcels initially included. in the Redevelopment Project Area.
C. Estimated Public Redevelopment Costs, Property to be Acquired,
Contracts and Development Expected to Occur.
1. Capital Proceeds. The capital proceeds of the project, comprising
the proceeds of sale of any land acquired by the HRA or the City to private
developers, are expected to be $0.00.
2. Public Redevelopment Costs. The present estimate of Public
Redevelopment Costs are expected to be as set forth on Exhibit C. plus interest to be
paid on the Tax Increment Bonds during their term (other than interest paid from
the proceeds of the Tax Increment Bonds). In addition, the HRA may use Tax
Increment to pay for additional Public Redevelopment Costs necessary to maintain
the Shopping Center once the anticipated renovation is completed. Such use of Tax
Increment is not expected to occur for at least ten (10) years and is not expected to.
exceed $750,000, and the use of Tax Increment for this purpose is authorized hereby.
3. Property to be Acquired. The HRA or City does not expect to
directly acquire land in carrying out the Redevelopment Project. However, it is
expected that it will provide financial assistance to the acquisition of land by third
parties on which improvements will be constructed. .
-6-
4. Development Contracts. No contracts have been entered into
for development activities in the Redevelopment Project Area.
5. Development to Occur. The development which the HRA
reasonably expects to occur in the Redevelopment Project Area consists of the
demolition of a portion of the main center building of the Shopping Center, the
construction of a new grocery store, the renovation of the remaining portion of the
main center to accommodate tenants relocated as a result of the demolition, the
renovation of the 90,500 square foot warehouse building, the demolition of the
vacant sports and health club building, the building of a holding pond to
accommodate storm water run-off from the Shopping Center and site
improvements and other improvements of a public nature related to the
renovation of the Shopping Center. Such redevelopment is expected to occur
within the next three years.
D. Payment of Public Redevelopment Costs.
1. In General. All Public Redevelopment Costs will be paid from
Tax Increment either directly or indirectly by payment of debt service on Tax
Increment Bonds issued to finance such cost or reimbursement for items of Public
Redevelopment Costs paid directly by the HRA, City or the owner of the property in
the Project Area.
2. Issuance of Bonds. It is presently expected that all or a portion of
the Public Redevelopment Costs will be financed by the issuance of the Tax
Increment Bonds. The Tax Increment Bonds will be issued by the HRA or the City
under authority of Minnesota Statutes, Chapter 475, and Sections 469.174 to 469.179.
The principal amount of the Bonds is expected to be $2,700,000.
The actual principal amount of the Bonds, however, may be less than or exceed this
amount, and the right to issue the Bonds in an amount greater than $2,700,000 to
finance such Public Redevelopment Costs is reserved. Similarly, the amount
allocated to capitalized interest covers interest payable on the Bonds (net of
investment income on proceeds of the Bonds) at an initial rate now estimated to be
approximately 8% per annum for a 18'-month period; and the City reserves the right
to increase or decrease the amount of capitalized interest to correspond to the
-interest actually payable on the Bonds over the 18-month period.
3. Security For Bonds. A portion of the Bonds (approximately
$1,500,000 are expected to be general obligations of the City, and the City will pledge
its full faith, credit and unlimited taxing powers to the payment of principal thereof
and interest thereon. The principal of and interest on the Bonds are payable
primarily, however, from the Tax Increments from the District and no ad valorem
-7-
tax is expected to be levied for payment of the Bonds and interest thereon in the
Bond Resolution. All Tax Increments will be pledged and appropriated to the
payment of the Bonds and the interest thereon when due. In addition, such
principal and interest will be paid from certain proceeds of the Bonds (capitalized
interest) and interest earnings thereon. In addition, a portion of the Bonds
(approximately $1,200,000) are expected to be issued as revenue bonds of the HRA or
the City payable only from excess Tax Increment from the District remaining after
the payment of the general obligation bonds. Such revenue bonds are expected to be
issued to the owner of property in the Project Area to reimburse it for Public
Redevelopment .Costs paid by such owner.
4. Bond Terms. The terms of the Tax Increment Bonds are
expected to be as set forth below; however, the right is reserved to adjust any and all
terms of the Tax Increment Bonds to secure the best interest rate obtainable and to
insure that the entire principal of and interest on the Tax Increment Bonds will be
paid when due from the sources specified in paragraph 3.
The Tax Increment Bonds will be issued in one or more series, in the
aggregate principal amount of $2,700,000, will mature serially over a period of
approximately twenty-one (21) years from the date of receipt by the City of the first
Tax Increment from the Tax Increment District, will be subject to redemption prior
to maturity, will bear a.fixed rate or rates of interest from date of issue to maturity,
• payable-semiannually commencing approximately six months after the issuance
thereof, and will be sold at public or private sale.
E. Determination and Use of Tax Increment.
1. District Eligibility as an Redevelopment District. Minnesota
Statutes, Section 469.174, Subdivision 10 defines a "redevelopment district" as a tax
increment financing district consisting of a portion of a development district which
is 70% of the Parcels in which are occupied by buildings, streets, utilities or other
improvements and 50% of the buildings are structurally substandard.
Based upon.a report of Ulteig Engineers, Inc., Minneapolis, Minnesota
attached hereto as Exhibit D, the HRA believes the District is a "redevelopment
district" since the conditions set forth in the preceding paragraph are satisfied with
respect to the District.
2. Original Tax Capacity. The Tax Capacity of all taxable property in
the District as most recently certified by the Commissioner of Revenue of the State
of Minnesota, being the certification made in 1991 with respect to the Tax Capacity of
such property as of January 2, 1991, is $ . If the request for certification of
the Original Tax Capacity is filed prior to the certification of the Tax Capacity of
-8-
property in the District to be made in 1992, such amount will be the Original Tax
Capacity.
3. Current Tax Capacity. The current Tax Capacity of property in
the District is $
4. Captured Tax Capacity-. It is expected that the Captured Tax
Capacity of all taxable property in the District, upon completion of the renovation of
the property in the Redevelopment Project Area in the District described in the
Program (taxes payable in the District, will be$ , computed as
follows:
Estimated Tax Capacity. . . . . . . . . . . . . . . . . . . . . . . . $
at Completion
Less Original Tax Capacity . . . . . . . . . . . . . . . . . . . . .
at Completion
Estimated Captured Tax . . . . . . . . . . . . . . . . . . . . . . .
Capacity at Completion . . . . . . . . . . . . . . . . . . . . . . $
5 Tax Increment Calculation. Assuming the anticipated
renovation of the property in the Redevelopment Project Area occurs as described
and provided in the Redevelopment Plan and Financing Plan, it is estimated that
the Tax Increment to be received each year for the duration of the District will be as
set forth in Exhibit E hereto. The estimated amount of Tax Increment set forth in
Exhibit E is based upon a Tax Capacity Rate of 1.19410.
6. Duration of the District. It is estimated that the District will
remain in existence until 25 years from the date of receipt by the HRA of the first
Tax Increment from the District, or until the City's obligation to pay the Tax
Increment Bonds and interest has been discharged in accordance with the Bond
Resolution.
7. Use of Captured Tax Capacity and Tax Increment. Pursuant to
Minnesota Statutes, Section 469.177, Subdivision 2, the City hereby determines that
it will use 100% of the Captured Tax Capacity of property located in the District, and
100% of the Tax Increments to be derived therefrom, for the entire duration of the
District.
8. Excess Tax Increment. The Tax Increment received from the
District in any year not.needed to.pay debt service on the Tax Increment Bonds
coming due on or before August 1 of the following year, shall be used first to reduce
any ad valorem property tax levied pursuant to and in accordance with Minnesota
w
-9-
Statutes, Section 475.61, Subdivision 3, and then shall be used to prepay or discharge
outstanding Tax Redevelopment Increment Bonds or pay additional
Redevelopment Costs.
F. Impact of Tax Increment Financing on Other Taxing
Iurisdictions.
The local government units other than the City which are authorized
by law to levy ad valorem property taxes and in which the District is located, are
Independent School District No. 282, Ramsey County, the HRA, and various
metropolitan area authorities, including the Metropolitan Council, the
Metropolitan Transit Commission, the Metropolitan Airports Commission and the
Metropolitan Mosquito Control District (the local government units).
The taxing jurisdictions encompassing the District will continue to
receive taxes as if the Original Tax Capacity of the District were unchanged. This
precludes the jurisdictions from benefiting from a portion of the increase in Tax
Capacity which results from the improvements to Parcels in the District or other .
development set forth in Exhibit F is an estimate of the impact of the Creation of the
District in the taxing jurisdiction of the taxable property in the District.
IV. AMENDMENTS TO PROGRAM AND PLANS
The HRA reserves the right to amend the Redevelopment Project and
the Redevelopment Plan and Financing Plan, subject to the provisions of state law
regulating such action.
The HRA specifically reserves the right to enlarge the geographic area
included in the District, to increase the Public Redevelopment Costs and the
principal amount of Tax Increment Bonds to be issued to finance such Public
Redevelopment Costs, by following the procedures specified in Section 469.175,
Subdivision 4, if and when it is determined to be necessary for the payment of
additional Public Redevelopment Costs.
-10-
EXHIBIT A
REDEVELOPMENT PROJECT AREA
THE PARCELS CONTAINING THE FOLLOWING PROPERTY IDENTIFICATION
NUMBERS:
31-30-23-34-0021
31-30-23-340002
31-30-23-33-0002
31-30-23-31-0019
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•
i
s EXHIBIT B
PARCELS IN TAX INCREMENT DISTRICT NO. 3 - RAMSEY COUNTY
THE PARCELS CONTAINING THE FOLLOWING PROPERTY IDENTIFICATION
NUMBERS:
31-30-23-34-0021
31-30-23-34-0002
31-30-23-33-0002
31-30-23-31-0019
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E?Q-HBIT C
ESTIMATE OF PUBLIC REDEVELOPMENT COSTS
Land Acquisition . . . . . . . . . . . . . . . . . . . . . . $1,500,000
Demolition . . . . . . . . . . . . . . . . . . . . . . . . . . . 275,000
Public Utility and Site Improvements . . . 700,000
Relocation . . . . . . . . . . . . . . . . . . . . . . . . . . . . 400,000
Administrative . . . . . . . . . . . . . . . . . . . . . . . 100,000
$2,975,000
C-1
CONSULTING ENGINEERS PHONE 612-571.2500
FAX 612.571.1168
• U LTEIG ENGINEERS, INC.
5201 EAST RIVER ROAD.SUITE 308 MINNEAPOLIS.MN 55421
August 18, 1992 DRAFT
Mr. Dennis Cavanaugh
C.G. Rein Company
949 Sibley Memorial Highway
St. Paul, MN 55118-3698
Subject: Apache Mall Structural Evaluation
UEI Project #92506
Dear Mr. Cavanaugh:
C.G. Rein Company requested that Ulteig Engineers, Inc. (UEI)
complete a conditions report of the buildings in the Apache
Mall complex on August 6, 1992 . The following report
responds to this request and presents UEI 's findings.
Introduction
• The Apache Mall complex consists of five (5) buildings. The
largest building is the Apache Mall. The remaining buildings
consist of a New Market Grocery building, a Sports and Health
Club building, a Mobil Service Station building, and a Tires
Plus building. The buildings were constructed at various
times throughout the past 30 years.
C.G. Rein Company wishes to renovate the buildings in the
complex by qualifying the area as a "redevelopment district" .
This designation will permit C.G. Rein to use tax increment
financing. (TIF) funds for renovation purposes. In order to ,
qualify as a. "redevelopment district" , at least 50% of the
buildings must be "structurally substandard" and must require
significant renovation of a value greater than 15% of the new
construction value of a similar size and use .structure. Each
qualified building must meet the 15% requirement.
UEI has been retained to assist in the qualification of the
New Market Grocery building, the Sports and Health Club
building, and the Mobil Service Station. The qualification
process will generally include a site visit, an evaluation of
the remedial work necessary, assignment of costs for
renovation work, and the conclusion that the three (3)
buildings meet the TIF requirements.
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Apache Mall Structural Evaluation
Page 2
Executive Summary
The New Market Grocery building, the Sports and Health Club
building, and the Mobil Service Station building are
"structurally substandard" based on site observations,
definition of remedial work necessary to bring the buildings
back into code compliance and the cost of the remedial work.
Renovation for the New Market Grocery building will cost
approximately 31. 0% of new construction costs for a similar
building. - Renovation costs for the Sports and Health Club
will be approximately 33.7$ of the replacement costs.
Renovation costs for the Mobil Service Station will be
approximately 22 . 0% of the cost to build a new facility of
similar size and function. Three (3) of the five buildings
in the main Apache Mall complex are substandard. Therefore,
they meet the criteria established for designation of this
area as a "redevelopment district" under the Tax Increment
Financing (TIF) requirements.'
Definition of "Structurally Substandard" •
The Minnesota Statute covering Tax Increment Financing has
the following language:
"structurally substandard shall mean containing defects
in structural elements or a combination of deficiencies
in essential utilities and facilities, light and
ventilation, fire protection including adequate
egress, and condition of interior partitions, or
similar factors, which defects or deficiencies are of
sufficient total significance to justify substantial
renovation or clearance.
A building is not structurally substandard if it is in
compliance with the building code applicable to new
buildings or could be modified to satisfy the building
code at a cost of less than 15 percent of the cost of
constructing a new structure of the same square footage
and type on the site."
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Apache Mall Structural Evaluation
Page 3
Site .Observations
Site visits were made to the three buildings on August 6,
1992 and on August 11, 1992 . The following was observed:
New Market Grocery Building:
The New Market Grocery building is a 90,500 square foot
warehouse type building .presently used for commercial
businesses. The building houses the New Market Grocery,
the Salvation Army Thrift Store, and Slick's Alternative
Lounge. The building was constructed in 1961. Walls
are constructed of 8" block with 4" brick veneer. The
roof support system uses standard steel bar joists with
steel wide flange beams and columns for support. The
roof deck is Tectum attached to purlins which span
between the bar joists. The roof system initially was a
• 3-ply pitch and gravel roof. This system has been
overlayed with an EPDM with ballast roof system. The
floor is a '4" slab-on-grade. Other aspects of the
building are similar to standard construction of
office/warehouses in the Twin City area.
1. Several code requirements related to exits,
firewall ratings, and landings were noticed. A
tabulation of these is included in the Architect's
report in the Appendix.
2. Significant water damage has occurred to the roof
deck system at various locations throughout the
building. The EPDM roof has been repaired many
times. Large areas of the membrane are not covered
by ballast.
3 . The east and west walls show significant outward
movement at the top. Temporary remedial action to
hold the walls in place has occurred within each
.bay at sometime in the past. The movement appears
to have occurred due to the lack of adequate
connections between the roof deck and the walls.
Calculations show that the 8" block walls require
reinforcing steel to resist lateral wind forces.
• Verification .that reinforcing steel was in place
could not be made.
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Apache Mall Structural Evaluation
Page 4
4. The HVAC system, plumbing, sprinkler system, and
sewer system have certain code deficiencies. These
are addressed in the Mechanical Engineer' s report
in the Appendix.
5. The exterior wall has significant vertical cracks
on the interior at several locations.
6. The slab-on-grade floor is in generally good
condition considering the life of the building.
7. The electrical service for the building appears to
be relatively new and according to the Facilities
Manager for the building is in compliance with code
requirements.
8. The nailer board and flashing at the top of the
parapet around the perimeter of the building has
pulled away and needs repair. •
9. Calculations show that the existing bar joists,
beams, and columns are adequate to support standard
dead and snow loads. However, the weight of both
the three ply system and the EPDM system decrease
the available snow load capacity to approximately
50% of the required capacity per the 1992 Minnesota
Building Code.
10. A small amount of leaking oil was noted at the
trash compactors outside the south wall of the
building.
Sports and Health Club Building:
The Sports and Health Club building is a steel frame
building having steel bar joists for roof support. The
roof is a standard pitch and gravel roof system. The
present walls are a curtain wall system using a material
containing asbestos. The mechanical systems within the
building are similar to those which would be installed
in a typical health club with a swimming pool, exercise
room, changing rooms, and weight equipment room. The
floor system is a slab-on-grade with the pool areas •
excavated below grade.
Apache Mall Structural Evaluation
Page 5
1. The exterior walls are generally in poor condition
and need replacement.
2. The roof system appears to be in generally good
condition with only isolated spots where water
leakage may have occurred.
3 . The HVAC system shows substantial corrosion and
will need replacement.
4 . The Architect's report presents deficiencies
observed during his review of the building.
Mobil Service Station Building:
• The Service station is of standard construction using
masonry block walls and a flat roof supported by wood
roof joists. The roof system is a standard pitch and
gravel system. A flammable waste trap exists in the
building and is vented to the outside. The building has
been closed due to contaminated soil on site from the
fuel storage tanks.
1. The Architect' s report presents deficiencies
observed in the building.
2 . No structural framing deficiencies were noted.
3 . No areas of water penetration on the inside of the
building were noted. Some efflorescence was noted
on the outside of the west wall which may indicate
water penetration into the block.
4. Repaving of the area around the building will be
required.
Renovation Work
The following is a tabulation of the renovation work which
UEI has determined is required at each building.
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•
Apache Mall Structural Evaluation
Page 6
New Market Grocery Building:
1. Remove all existing roofing and replace with a new
roof system.
2 . Install tapered insulation under the new roof
system to accommodate the 1992 State Building Code
requirement of 1/4" per foot of roof slope to
interior roof drains.
3 . Remove the 'Tectum roof deck and replace it with a
standard metal roof deck.
4. Add roof drains and scuppers as required to meet
State Building Code requirements for drainage and
overflow.
5. Plumb and reinforce the east and west walls •
replacing brick facing as necessary.
6. Add insulation to the exterior walls.
7. Repair code deficiencies presented in the
Architect's report.
8. Repair mechanical systems per- the Mechanical
Engineer's report.
9. Connect the roof diaphragm to the east and west
masonry walls.
Sports and Health Club:
1. Remove and replace the exterior wall covering.
2 . Remove and replace a portion of the mechanical
systems.
3 . Repair the roof system as necessary.
4 . Repair the deficiencies presented in the
Architect's report. •
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Apache Mall Structural Evaluation
Page 7
Mobil Service Station:
1. Remove contaminated soil and replace with clean
engineered fill.
2 . Repave the areas on all sides of the building which
have been disturbed by removal of contaminated
soils.
3 . Repair the deficiencies presented in the
Architect's report.
Cost of Remedial Work
Tabulations of cost estimates for the remedial work have been
• prepared and are presented in the Appendix. Replacement
costs were calculated on a. square foot basis for new
construction of similar facilities. Renovation costs were
estimated using historical data received from the Architect,
Mechanical Engineer, and a Contractor. Estimating this type
of work is a difficult process. The estimated costs and the
extent of repairs needed are based on opinion and visible
conditions. Other conditions may exist which were not
visible or readily apparent which may result in increased
repair costs. Therefore, estimates can change in the future
due to economic conditions, time of construction, extent of
repair, etc.
.Conclusions
The three (3) buildings evaluated are all "structurally sub-
standard" and require significant renovation to upgrade them
to code compliance. Replacement cost for the New Market
building is approximately $2, 534, 000,. 00. Renovation cost is
approximately $906, 641 or 35. 8% of replacement cost.
Replacement cost for the Sports and Health Club is
approximately $353, 790. Renovation cost is estimated to be
$119, 352 or 33 .7% of replacement cost. Replacement of the
service station is approximately $107, 175. Renovation costs
are estimated at $22,600 or 21. 0% without addressing the
contaminated soil issue.
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Apache Mall Structural Evaluation
Page 8
Each of these buildings qualifies under the TIF definition.
In addition, since three of the five buildings in the complex
are "structurally substandard" and they represent 60% of the
total number of buildings in the complex, the complex meets
the TIF "redevelopment district" criteria.
The observations and conclusions expressed in this report are
my own based on my professional practice, engineering
judgement, and the data collected during visual inspections.
Finished materials on the interior of the buildings were not
removed during inspections. Therefore, any structural
distress hidden by finished surfaces could not be noted.
If you have any questions, please call.
Very truly yours,
A. 4-0,-t .447402-01 •
Glenn J. Gauger, P.E.
Minnesota Registration #10951
GJG/tlm
enclosures
c: Patrick W. Pelstring, Business Development Services Inc.
Tom Burt, City of St. Anthony
•
•
APPENDIX
Exhibit A: Architect's Report
Exhibit B: Mechanical Engineer's Report
Exhibit C: New Market Grocery Building Cost Estimate
Exhibit D: Sports and Health Club Building Cost Estimate
Exhibit E: Mobil Service Station Building Cost Estimate
•
FORTIER &ASSOCIATES, INC. •
August 12, 1992 ARCHITECTURE PLANNING INTERIOR DESIGN
Mr. Glen Gauger
Ulteig Engineers, Inc.
5201 East River Road
Suite 308
Minneapolis, MN 55421
Re: APACHE MALL EVALUATION
Comm: 92-10
Dear Mr. Gauger:
As requested, I have conducted an on-site observation the three (3)
buildings in the Apache Mall area. These buildings are referred to
as "The New Market Building, " "The Sports and Health Building" and
"The Automobile Service Station. " The purpose of the observation was
to assess existing conditions and assist in preparing an estimated
cost to repair the facilities' structurally substandard elements.
To a great extent, this report restricts structurally substandard
elements to strict code compliance issues. However, it is recognized
that defects and deterioration of basic building elements can
effectively preclude the' use of the facility while not presenting a
Code violation. To the extent such elements are an integral part of
the building and not mere leasehold improvements, they are considered
as structurally substandard.
Currently all three facilities are in an obviously structurally
substandard condition. The continuation of these conditions will
undoubtedly cause, or has caused, considerable damage to all elements
of the construction.. Much of the damage is or will be concealed and
can only be fully identified during the remodeling process or with
selective removal of materials and testing. Such testing and
investigations are beyond the scope of this report.
The extent of work required reflects my considered opinion of
existing, visable conditions. As with any remodeling, a- sizeable
contingency should be allowed for concealed conditions.
Yo s ru
Daryl For ier
Registered Architect
DPF/s'f
408 Turnpike Road, Golden Valley, Minnesota 55416 (612) 593-1255
FORTIER &ASSOCIATES, INC.
ARCHITECTURE PLANNING INTERIOR DESIGN
APACHE MALL EVALUATION August 12, 1992
Comm: 92-10
NEW MARKET BUILDING
The major and most notable deficiency in this facility is the lack of
structural integrity in the exterior walls. Damage is significant
and will worsen. Extent of repairs involve replacement of
substantial sections of exterior masonry, brick faced walls and
re-anchoring the steel framing to a plumb and true condition. (These
costs will be addressed by Structural. ) All of the roof flashing
must be removed and replaced as must substantial portions of the roof
decking, which is now supporting mold growth. Appropriate patching
of roof will be required as will be tapered insulation to provide a
1/4" per foot slope. It is also anticipated that new interior roof
drains and overflows will be repaired. -It will probably be more
practical to replace the entire roof, thus assuring performance
continuity.
This building also fails to meet Energy Code compliance. The masonry
.walls require insulation and the window wall systems are extremely
poor. It is recommended that new roof insulation be added; walls be
insulated with 1-1/2" rigid insulation and vapor barrier and covered
with gypsum board; and that a thermally broken insulated wall system,
including doors, replace the existing.
Other Code issues include the following: Handicapped accessibility
and facilities, which are marginal. At a minimum, the entry
threshhold and concrete landing at Slick ' s must be reparied. Exit
signs and interior illumination are required at four locations. Four
exit locations also require landings with steps and railings.
Parking must be relocated away from obstructing the exit doors. The
exit from the vacant space must be re-opened and made operable as 'it
currently swings inward. The area separation walls are required to
be 1-hour rated. The numerous holes and untaped joints require
repair. It was also noted that there appears to be about 1,200 S.F.
of asbestos-based floor tile in deteriorating, exposed condition. A
hazardous products specialist should be contacted to remove and
dispose of this material.
408 Turnpike Road, Golden Valley, Minnesota 55416 (612) 593-1255
APACHE MALL EVALUATION Page 2
-Comm: 92-10
SPORTS AND HEALTH BULDING
This building is currently vacant and is uninhabitable in its present
condition. Due to the amount of moisture entering the facility, it
is highly probable that repairs will be much more extensive than a
visual observation can detect.
The major deficiency is the failure, of the exterior wall system to
resist water and air penetration, in addition to failing to comply
with the Energy Codes. The walls are a pre-engineered component
system of 'a thin mineral fiber board and exterior metal cladding.
Several panels have -failed and must be replaced. Additionally, all
panels require new sealant. To address the Energy Conservation Code
would require insulation be fitted in existing wall cavities. This
is easiest to achieve by removing the panels from the exterior,
rather than demolishing the interior walls, some of which are tiled.
The portions of the building where the walls are exposed or. have
damaged gypsum board interiors are best repaired by removing the
gypsum board, installying appropriate insulation, vapor barrier and
new gypsum board. The windows are 1/4" glass in wood stick frames.
These should be replaced with an insulated glass and weather proofed
frame with appropriate sealants.
Due to discontinuation of wall system and the extent of work, it is
most feasible to simply install a new, insulated panel system,
complete with windows and doors.
Handicapped access must be addressed at all exits. New hardware and
exterior ramps are required. The toilet and showers also require
revisions. This will involve demolition of 2 stalls in each toilet
and shower room to enable a larger handicapped stall to be
constructed. New fixtures, grab bars and vanities are also
required. Access to the pool will be required via a lift. Building
requires disinfecting and removal of molds, etc.
APACHE MALL EVALUATION Page 3
Comm: 92-10
AUTOMOTIVE SERVICE STATION
This building is currently vacant. We understand there may be soil
contamination due to past releases of contaminants. Remedial costs
for such repairs are best left to a. specialist in the field of
environmental mitigation.
The major Code issue is a deficit roof structure. This simple span
2x wood joist roof does not comply with the requirements for a B-1
Occupancy (Gasoline Service Station) , which require heavy timber or
1-hour fire resistive construction. Accordingly, it should be rated,
which can be done by applying an appropriate gypsum board ceiling.
Handicapped accessiblity requires a ramp be constructed and the
sidewalk widened. Also, that the toilet room doors and hardware be
replaced. The toilet rooms will require new fixtures and vanity.
Also significantly deteriorated is the drive and parking surface.
While not a Code issue, it is sufficiently essential to the service
station operation where its present condition would preclude leasing
the space. The paved areas should be cleaned, prepared and
resurfaced with 2" of bituminous paving.
. .CHASN.EY, ASSOCIATES, INC.
„C:ONSULTING ENGINEERS.,
4979 OLSON MEMORIAL HIGHWAY MINNEAPOLIS,MINNESOTA 55422 PHONE 612/546-3355
August 17, 1992
Mr. Glenn Gauger
Ulteig Engineers, Inc.
5201 East River Road
Suite 308
Minneapolis, MN 55421
Re: Apache Mall Evaluation
Mechanical Systems
File: L9253COI
Dear Mr. Gauger:
The purpose of this letter is to outline the Mechanical system improvements for the New
Market Building, Sports and Health Club Building, and Mobile Service Station Building at the
Apache Mall Complex. The Mechanical system improvements are separated into two
categories; those required by code and those that we recommend prior to tenant occupancy.
NEW MARKET WELDING- 90,250 SQ FT
Code Requirements:
There are two major code violations that require modification of the existing systems.
1. Relocate two exhaust fans and one flue. There are two exhaust fans and one flue
within the minimum required 20 foot distance from an outside air intake.
2. Install eight smoke detectors. Each of eight heating, ventilating, and cooling units
require a smoke detector in the return air stream to shut the fan down upon detection of
smoke.
A new sprinkler system has recently been installed and requires no modifications for code
compliance other than those that may result from specific tenant needs or re-partitioning of the
building.
Mechanical System Improvements:
1. Replace each of four existing indoor heating, cooling, and ventilating units with new
rooftop units. The existing units were installed with the original building in 1962 and
are near the end of their useful life. The existing units also are not capable of cooling in
an economizer cycle.
J /
f -
A
Apache Mall Evaluation
Mechanical Systems
File: L9253COl
Page 2
2. Replace each of four rooftop heating, cooling, and ventilating units with four new
rooftop heating, cooling, and ventilating units. The existing units were installed shortly
after the building was constructed and are near the end of their useful life.
3. Install new rooftop relief hoods to relieve excess air when the units are running in their
economizer cycle. All of the existing relief hoods should be removed as part of the roof
replacement.
4. Replace all existing rooftop exhaust fans serving toilet rooms. All other exhaust fans
should be removed as part of the roof replacement.
All other building modifications such as adding exhaust systems or plumbing are specific to
new tenant needs. The building water and sewer services appear adequate for any plumbing
needs typical for a building of this type.
SPORTS AND HEALTH BUILDING - 7,862 SQ FT
Mechanical System Improvements:
1. Replace the heating, cooling, and ventilating system with new rooftop units. The
existing heating, cooling, and ventilating units are near the end of their useful life.
2. Replace the existing exhaust systems for the toilet room and locker room areas. The
existing exhaust fans are near the end of their useful life.
3. Exhaust and make-up air for whirlpool area..
MOBILE SERVICE STATION BUILDING- 1,429 SQ Fr
Mechanical System Improvements:
1. Replace the existing heating and ventilating systems with new heating and ventilating
systems.
Yours very truly,
CHASNEY ASSOCIATES, INC.
Stanley M. Chasney P.E.
COST ESTIMATES
NEW MARKET GROCERY BUILDING
ASSUMPTIONS:
1. Hazardous material removal is not included.
2 . The space is unoccupied by tenants during repairs.
Replacement: 90,500 sq ft x $28/sq ft = $ 2,534, 000
Renovation Costs:
1. Remove old roof systems: $ 104, 075
2 . Remove tectum deck: $ 41, 630
3 . Install metal roof deck: $ 78, 056
4 . Install new roof and flashing: $ 265,000
5. Install roof drainage and
tapered insulation: $ 19, 650
6. Insulate walls and store fronts: $ 43, 625
7 . Accessibility and Exits: $ 8, 500
8 . Repair structural integrity of
masonry walls: $ 93 , 840
9. Provide connection of roof deck to
masonry walls: $ 70, 265
10. Repair interior fire walls: $ 2 , 000
11. Replace deteriorated mechanical
systems: $ 180, 000
TOTAL: $ 906, 641
Renovation cost as a % of replacement cost: 35. 8%
COST ESTIMATES
SPORTS AND HEALTH CLUB BUILDING
ASSUMPTIONS:
1. Hazardous material removal is not included.
Replacement: 7862 x $45/sq. ft. _ $ 353 ,790
Renovation Costs:
1. Remove old wall system: $ 11, 616
2 . Install new wall system: $ 42,592
3'. Handicapped access: $ 3, 000
Exits: $ 10, 600
Toilets and Shower: $ 4, 000
Pool Access $ 2, 500
4. Disinfecting: $ 2, 500
5. New Mechanical System: $ 30,000
6. Roof System Repair: $ 12 ,544
TOTAL: $ 119, 352
Renovation cost as a of replacement cost: 33 .7%
COST ESTIMATES
MOBIL SERVICE STATION
ASSUMPTIONS:
1. Hazardous material removal is not included.
2 . Removal of contaminated soils is not included.
Replacement Costs: 1429 sq ft x $75 sq ft = $ 107, 175
Renovation Costs:
1. Provide rated roof structure: $ 2,000
2. Handicapped access: $ 500
3 . Pavement: $ 9,500
4. Toilet Rooms: $ 4,500
5. Repair Roof Flashing: $ 2, 100
6. Install Mechanical System: $ 4, 000
TOTAL: $ 22, 600
Renovation cost as a of replacement cost: 21.0%