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HomeMy WebLinkAboutCC PACKET 05112004 Meeting Sheet IIIIII VIII VIII VIII VIII VIII IIII IIII 102916 Box: 29 Folder. CC PACKETS 2001-2004 Document: CC PACKET 05112004 CITY OF ST. ANTHONY Our Mission is to be progressive and livable community, a walkable village, which is safe and secure. CITY COUNCIL MEETING AGENDA May 11, 2004 7:00 PM Council Chambers Call to Order. Pledge of Allegiance. Roll Call. Consideration, Discussion, and Possible Action on All of the following items: I. Approval of the May 11, 2004, City Council Meeting Agenda. Action requested. II. Proclamations and Recognitions. III. Consent Agenda.. These items are considered routine and will be enacted by one motion. There will be no separate discussion of these items unless a Councilmember or citizen so requests, in which event the item will be removed from the Consent Agenda and placed elsewhere on the agenda. A. Approve-April 27, 2004, Regular Council Meeting minutes. (pp. 1-12) B. Licenses and Permits. (pp. 13) C. Claims. (pp. 14-16) IV. Public Hearings. V. Reports from Commissions. A. Parks Commission—Carol Jindra, Chair VI. General Policy Business of the Council. A. Resolution 04-039 & 04-040; Sale of GO Bonds for 2004A& B; Jim Prosser, Ehlers & Associates. (action requested) (pp. 17-64) B. Resolution 04-041; Approve New Date for Phase II of Silver Lake Village; Stacie Kvilvang, Ehlers & Associates. (action requested) (pp. 65-72) C. Charitable Gambling Ordinance, Jerry Gilligan, Dorsey &Whitney. (1st Reading) (action requested) (pp. 73-76) D. Resolution 04-027 & 04-028 Police Contracts with Falcon Heights and Lauderdale respectively. (action requested) (pp. 77-93) VII. Reports From City Manager and Councilmembers. VIII. Community Forum. Individuals may address the City Council about any item no included on the regular agenda. Speakers are requested to come to the podium,sign their name-and address.on the form at the podium, state their name and address for the Clerk's record, and limit their remarks to five minutes. Generally, the City Council will not take official action on items discussed at this time, but may typically refer the matter to staff for a future report of direct the matter to be scheduled on an upcoming agenda. IX. Information and Announcements. X. Miscellaneous Informational Documents. XI. . Adjournment. 01 1 CITY OF ST. ANTHONY 2 3 CITY COUNCIL REGULAR MEETING MINUTES 4 5 APRIL 27, 2004 6 7 CALL TO ORDER. 8 Mayor Pro Tem Thuesen called the meeting to order at 7:01 p.m. 9 10 PLEDGE OF ALLEGIANCE. 11 Mayor Pro Tem Thuesen invited the Council and audience to join him in the Pledge of Allegiance. 12 13 ROLL CALL. 14 Present: Mayor Pro Tem Thuesen; Councilmembers Horst, Stille, and Faust. 15 Absent: Mayor Hodson. 16 Also Present: City Manager Mike Morrison and City Attorney Jerry Gilligan. 17 18 CONSIDERATION,DISCUSSION, AND POSSIBLE ACTION ON ALL OF THE FOLLOWING 19 ITEMS. 20 21 I. APPROVAL OF APRIL 27,2004, CITY COUNCIL MEETING AGENDA. 22 Motion by Councilmember Horst, seconded by Councilmember Faust, to approve the City 23 Council Meeting Agenda of April 27, 2004. 24 25 Motion carried unanimously. 26 27 II. PROCLAMATIONS AND RECOGNITIONS. 28 A. Presentation of plaque to City Clerk. 29 Mayor Pro Tem Thuesen asked City Clerk Connie Kroeplin to come forward. He presented her 30 with a plaque that recognized her 24 years of service with the City and added 16 of those years 31 Ms. Kroeplin was in the position of City Clerk. He congratulated Ms. Kroeplin and stated he 32 admired the work she had done for the City. The Council wished her well. 33 34 Mayor Pro Tem Thuesen indicated the City has excellent employees who give a lot to the 35 community. 36 37 III. CONSENT AGENDA. 38 A. Approve April 13, 2004, regular Council meeting minutes. 39 B. Consider licenses and permits. 40 C. Consider payment of claims. 41 42 Motion by Councilmember Stille, seconded by Councilmember Faust, to approve the Consent 43 Agenda. 44 45 Motion carried unanimously. 46 City Council Regular Meeting Minutes 02 April 27, 2004 Page 2 1 IV. PUBLIC HEARINGS FOR IMPROVEMENT PROJECT FOR 39TH AVENUE NE AND 2 FOR SAID ASSESSMENTS FOR THE PROJECT. 3 Mayor Pro Tern Thuesen opened the public hearing at 7:05 p.m. 4 5 Todd Hubmer, WSB and Associates, Inc., noted the following resolutions were currently before 6 Council for its consideration: 7 1. A resolution ordering improvements. He explained this resolution stated that Council 8 had completed the public hearing process and ordered the project to be completed. 9 2. A resolution adopting and confirming assessments for the various public improvements. 10 He noted assessments which were calculated in accordance with the City's assessment 11 policy for the 39th Avenue Street and Utility Improvement Project were provided to 12 Council, declared the amount to be assessed at$2,205,000 and outlined the assessment 13 process in accordance with Minnesota Statutes Chapter 429. 14 3. A resolution awarding a bid for Phase 1: 39`h Avenue street and utility improvements. 15 He indicated this resolution awarded the contract for Phase 1 to the lowest bidder, which 16 was Veit and Company,Inc., with a bid amount of$399,999. 17 18 Mr. Hubmer stated this project consisted of street reconstruction, new construction and 19 replacement of water main, sanitary sewer and storm sewer on 39th Avenue NE from Stinson 20 Boulevard to Silver Lake Road. He noted the anticipated cost of the project was as follows: 21 street reconstruction at $1,320,000; sanitary sewer improvements at $231,000; water main 22 improvements at$200,000; storm sewer improvements at $280,000; pond improvements at 23 $569,000; sidewalk, pedestrian trail and street lighting at $380,000. He added the anticipated 24 total was$2,980,000. 25 26 Mr. Hubmer stated it was proposed the project would be funded from the following sources: 27 Federal grant at$750,000; special assessments at $2,205,000; a City contribution of$25,000. 28 29 Mr. Hubmer explained the adjacent property owners would be assessed according to the City's 30 assessment policy based on front footage and would be assessed 50% of the street reconstruction 31 cost from Stinson Boulevard to Silver Lake Road. He added a storm sewer assessment would 32 also be levied on those parcels. 33 34 Mayor Pro Tern Thuesen reviewed the public hearing procedures and asked if there were any 35 comments or questions from the audience. No one came forward. 36 37 Councilmember Faust indicated the City had received$750,000 from the Federal government, 38 which normally did not happen. He noted taxpayers would have needed to pay that amount 39 without the grant and stated he wanted to acknowledge the efforts of City staff and the Council 40 to obtain the funding. 41 - 42 Mayor Pro Tem Thuesen closed the public hearing at 7:15 p.m. 43 44 City Attorney Gilligan noted he had received a few letters from property owners protesting the 45 special assessments. 46 City Council Regular Meeting Minutes April 27, 2004 Page 3 03 1 Mr. Hubmer indicated he also had received letters from Equinox Apartments, as well as Cub 2 Foods and the tenants of Apache Commons, which reserved their rights to appeal the 3 assessments. 4 5 Mr. Gilligan explained there was a right to appeal special assessments under Minnesota law and 6 either an appearance before Council or the submission of a written appeal was necessary to 7 preserve that right. 8 9 A. Resolution 04-036, re: Ordering street and utility improvements 10 Mr. Hubmer indicated this resolution authorized the project to proceed and stated ten days 11 mailed notice and two weeks published notice in advance of the current hearing was given, 12 noting all persons desiring to be heard at the hearing were given an opportunity to be heard. 13 14 Motion by Councilmember Faust, seconded by Councilmember Stille, to adopt Resolution 04- 15 036 ordering improvements, which consisted of street reconstruction, new construction and 16 replacement of water main, sanitary sewer and storm sewer on 39`h Avenue NE from Stinson 17 Boulevard to Silver Lake Road. 18 19 Discussion: 20 21 Councilmember Horst stated he wanted to clarify the appeal process, as no one came forward to 22 speak against the assessments. Mr. Gilligan explained residents who wished to appeal the 23 assessments either needed to appear at the current hearing or file an appeal prior to the hearing. 24 He added only those who had filed an appeal via letters preserved their right to take the issue to 25 court for appeal, as the public hearing was closed. 26 27 _Motion carried unanimously, 28 29 B. Resolution 04-037, re: Confirming assessments. 30 Mr. Hubmer explained the assessments would be spread over a period of 15 years and the total 31 value of the assessments was $2,205,000. 32 33 Motion by Councilmember Stille, seconded by Councilmember Faust, to adopt Resolution 04- 34 037 adopting and confirming assessments for 39th Avenue street and utility improvements. 35 36 Discussion: 37 38 Mr. Hubmer stated one question that was consistently asked regarding assessments was if an 39 individual assessment could be paid without any interest being added. He explained that the 40 owner of any assessed property might, at any time prior to certification, make partial or full 41 payments toward the balance owed. He added the owner might, at any time after certification, 42 pay the entire assessment, with interest accrued to the date of payment, except no interest would 43 be charged if the entire assessment was paid by November 30 of the assessment year. 44 45 Councilmember Horst asked regarding the interest rate. Mr. Hubmer responded the rate was the 46 bond interest rate plus two points, which had been between 3% and 5%. City Council Regular Meeting Minutes April 27, 2004 •04 Page 4 1 2 City Manager Morrison noted letters were sent to the affected property owners explaining the 3 options available to them. He indicated the letters would probably be sent sometime in the fall. 4 5 Motion carried unanimously. 6 7 C. Resolution 04-038, re: Award construction bid. 8 Mr. Hubmer noted this resolution awarded a contract for Phase 1 of the 39`h Avenue 9 reconstruction, which included storm sewer, water main, sanitary sewer and appurtenant work. 10 He stated no street reconstruction would be completed with this phase of the project, as 11 requirements must be met before the Federal funds could be received. He added that was why 12 the project was in two phases, noting it was anticipated Phase 2 would begin sometime in July. 13 14 Mr. Hubmer indicated the low bidder was Veit and Company, Inc., Rogers, Minnesota, in the 15 amount of$399,999. 16 17 Motion by Councilmember Horst, seconded by Councilmember Faust, to adopt Resolution 04- 18 038 awarding a bid for Phase 1 (39`h Avenue street and utility improvements) to Veit and 19 Company, Inc., Rogers, Minnesota, in the amount of$399,999. 20 21 Discussion: 22 23 Councilmember Horst asked if it was true that street paving would not be done in the first phase. 24 Mr. Hubmer responded that was correct, as the pavement would be done as part of Phase 2. He 25 indicated Phase 1 consisted of putting in utilities from Silver Lake Road to the existing 39`h 26 Avenue and all of the road work, street work and utilities on the west side of the project would 27 be completed in Phase 2. He explained additional reasons for the phasing were as follows: 28 1. Some of the utilities needed to be installed before the foundation area of Apache Mall 29 was filled, which would save money because that area would not need to be reopened at a 30 later time. 31 2. Utilities were needed so construction could begin on the adjacent stores. 32 33 Councilmember Horst asked regarding the street that went to the liquor store. Mr. Hubmer 34 responded that street segment would be finished before the liquor store was completed, which 35 would also be part of Phase 2. 36 37 Councilmember Stille asked if the phasing of the project was because of funding. Mr. Hubmer 38 responded the project needed to be split into two phases, as it was necessary to complete the 39 approval process to receive the $750,000 Federal grant. 40 41 Councilmember Stille asked regarding the large differences between the bids. Mr. Hubmer 42 responded the project estimate was $547,000; however, he thought Veit and Company's low bid 43 indicated they wanted to keep control of the site, as they were doing the demolition of Apache 44 Mall. 45 46 Motion carried unanimously. City Council Regular Meeting Minutes April 27, 2004 Page 5 1 2 V. REPORTS. 3 A. Presentation of Police Department 2003 Annual Report by Captain Ohl. 4 Captain Ohl reviewed the Part I and II crime statistics as they had occurred in Saint Anthony 5 Village over the past five years. He noted the overall clearance rate in 2003 was 55% and 6 indicated there was a slight increase in Part II criminal offenses of approximately 1% and an 8% 7 increase in Part I offenses. 8 9 Captain Ohl noted the Department had a consistently high crime clearance rate, adding it was 10 higher than the overall rate in Hennepin and Ramsey Counties. He cited a proactive patrol force 11 as one of the reasons for the high clearance rate, noting the patrol force did pursue many of the 12 offense reports and actually cleared them. 13 14 Captain Ohl indicated Part I crimes such as burglary and larceny had increased, which was 15 typical for a first-ring suburb. He noted it was one of the prevalent problems in the City. 16 17 Councilmember Horst asked if shoplifting was considered larceny. Captain Ohl responded 18 shoplifting was essentially a theft and larceny was a type of theft. 19 20 Discussion followed regarding the definitions of larceny, theft and burglary. Captain Ohl 21 indicated most of the incidents were thefts from automobiles, shoplifting, etc. 22 23 Captain Ohl displayed a chart that listed Part I crimes per month. He noted there appeared to be 24 a higher rate of motor vehicle thefts, especially in January, and speculated that could be caused 25 by more people leaving their cars running. 26 27 Captain Ohl indicated the Department was cognizant of and working towards diminishing the 28 number of property crimes. He added crimes against persons, as they related to Part II offenses, 29 were substantially less. 30 31 Captain Ohl displayed a chart that listed Part II crimes per month. He asked Council to note the 32 wide gamut covered by Part II crimes, indicating they ranged from DWI arrests to domestic 33 assault to certain types of fraud and forgery. 34 35 Captain Ohl discussed the call load of the Police Department and gave statistics regarding the 36 calls to which the Department responded. He stated the Department appreciated calls from 37 residents regarding suspicious persons and vehicles, adding those types of calls were increasing. 38 He noted residents knew what was suspicious within their neighborhoods and stated the 39 Department needed the public's help and direction regarding its responses within specific areas. 40 41 Mayor Pro Tem.Thuesen asked if Captain Ohl had a rough estimate regarding the percentage of 42 calls from residents that prevented a crime in progress. Captain Ohl responded the vast majority 43 of the calls represented a "cousin coming into town late at night" or a neighbor who locked 44 himself out of his house and was crawling into his window. He noted he did not have a statistic 45 to give; however, he added, when a burglar was caught, it was because a neighbor knew 46 something was amiss. City Council Regular Meeting Minutes April 27, 2004 Os Page 6 1 2 Captain Ohl provided information related to the 2003 investigative totals, noting, including the 3 contract cities, there were a total of 1,097 criminal cases and 574 of them were cleared. He 4 indicated the Saint Anthony Village portion of those numbers was 676 criminal cases with 367 5 cleared, which was a respectable statistic. He commended the patrol staff for the number of 6 cases cleared by arrest and listed other ways cases could be cleared. 7 8 Captain Ohl provided a list of 2003 Department accomplishments and noted the Department had 9 kept turnover at almost zero during 2003. He noted it was expensive to bring in an officer and 10 train him/her and it was "a shame" when officers took their talents away from the City. 11 12 Captain Ohl stated the Department maintained a representation in Family Services Collaborative, 13 which had been good for the Police Department and the citizens and children in Saint Anthony 14 Village. 15 16 Captain Ohl explained the Department was working hard to address weapons of mass destruction 17 and potential terrorist incidents, stating it was getting as ready as possible. He stated each of the 18 City's officers had been through training and protective gear for first responders was obtained 19 through grants. He noted this would continue in 2004. 20 21 Captain Ohl indicated the Police Department was dedicated to a community-oriented policing 22 strategy, which was to arrest offenders, prevent criminal offenses,problem solve within the 23 community and improve the overall quality of life for the City's citizens. 24 25 Mayor Pro Tem Thuesen asked Captain Ohl to briefly discuss the police reserves, noting he was 26 impressed by the number of hours given through the police reserves. Captain Ohl responded he 27 would have a hard time putting a dollar amount on the time given through the police reserves, 28 stating it was an excellent resource for the Department. He indicated there were 10 current 29 reserves and the Department had an allotment of 14 reserves. He noted, currently, the majority 30 of the reserve officers were not interested in pursuing a career in law enforcement. He added it 31 was almost impossible to think of operating without the reserves. 32 33 Councilmember Faust stated he wished to compliment the Police Department on its 34 responsiveness during difficult budget times and thanked all the officers who were "out there" 35 every day, as they were a good connection with the community. He noted National Night Out 36 helped Police Department personnel connect residents and "put a face behind the badge." 37 38 Captain Ohl indicated the officers were supportive of the Council, the Mayor and City staff. He 39 added the officers felt "very supported"by the City Council. 40 41 Councilmember Stille stated he understood the Cities of Falcon Heights and Lauderdale 42 appreciated the work done by the City's Police Department. He added he was proud the City of 43 St. Anthony Village could offer police services to those communities, especially because of the 44 way the City's Police Department operated. Captain Ohl responded the Department received 45 many letters from Falcon Heights when it first took the contract. He added he was proud to City Council Regular Meeting Minutes April 27, 2004 07 Page 7 1 move the type of law enforcement services experienced in the City of St. Anthony Village to 2 another community. 3 4 Councilmember Horst indicated he echoed the viewpoints just given. He added the Police 5 Department was a true asset to the community and made the City a safer place. 6 7 Mayor Pro Tern Thuesen stated he appreciated the effort of all the men and women of the City's 8 police force and indicated they did a great job for the community. 9 10 B. Presentation of Fire Department 2003 Annual Report by Fire Chief Hewitt 11 Fire Chief Hewitt stated it was fitting the Fire Department was present at the same meeting as the 12 Police Department, as they worked hand in hand. He added "hats off to Captain Ohl and the 13 Police Department for assisting us." 14 15 Fire Chief Hewitt indicated the mission of the Fire Department was "to serve the City of St. 16 Anthony by protecting lives, property and the environment through quality and excellence in fire 17 and EMS services." 18 19 Fire Chief Hewitt explained the Fire Department had a staff of one fire chief and six career 20 firefighters, who staffed three shifts 24/7/365. He added the Department also had 26 paid-on-call 21 firefighters, who supported career personnel during critical incidents. He noted the paid-on-call 22 firefighters also provided additional functions for the Department on any fire incident. 23 24 Fire Chief Hewitt indicated all Fire Department personnel were professionally trained in fire and 25 EMS skills, adding the Department had six new recruits in training. 26 27 Fire Chief Hewitt stated the Department operated three pumping engines, one utility truck, a 28 utility car, a command vehicle and currently operated out of the temporary station with one 29 engine located at the Public Works building. 30 31 Fire Chief Hewitt listed the various ways in which the Fire Department was involved in the 32 community. 33 34 Fire Chief Hewitt explained there were 901 incidents in 2003, with 65% of those incidents 35 requiring EMS services. He noted the average response time in 2003 was 3 minutes and 10 36 seconds, which was a little higher than 2002 because of the Fire Department's temporary 37 location. 38 39 Fire Chief Hewitt indicated the fire loss in 2003 was $36,150 and the Department saved 90% of 40 the property to which it was called. He added the short response time was due to 24/7 staffing 41 and well-trained personnel. 42 43 Fire Chief Hewitt listed the types of training received by Fire Department personnel. He noted 44 physical fitness training was important and cited statistics regarding firefighters who died 45 because of cardiac arrest. 46 City Council Regular Meeting Minutes 08 April 27, 2004 Page 8 1 Fire Chief Hewitt showed a clip of firefighters during a training exercise. He noted such training 2 taught participants to work as teams. 3 4 Fire Chief Hewitt listed the significant incidents in the City during 2003. 5 6 Fire Chief Hewitt reviewed the following significant operational events of 2003: 7 1. Funding of$330,000 had been provided for a new pumper; however, a demonstrator was 8 found for$159,900, which enabled the Department to purchase equipment for the trucks. 9 2. Fire Department moved from its old quarters into the temporary location on August 9. 10 He stated they would hopefully be out of the temporary location by October of 2004. 11 3. Department went live on the County's 800 MHZ system on November 20. He indicated, 12 at this time, the largest quirk was that the surrounding communities were not at 800 13 MHZ. He added it worked very well but, hopefully, would become"seamless" in time. 14 4. New outdoor warning siren was installed at the south location in December. He noted the 15 siren was louder and provided better coverage to the community. 16 17 Fire Chief Hewitt listed the grants awarded to the Fire Department in 2003, which totaled 18 $186,735. He indicated the largest grant was $168,400 from FEMA Firefighters Assistance and 19 listed equipment and activities funded by this grant. 20 21 Fire Chief Hewitt stated the Fire Department had applied for the following grants in 2004: 22 1. Minnesota Department Homeland Security C.E.R.T.'s (Citizens' Emergency Response 23 Teams)Grant at$8,275. He noted this grant had been awarded the previous week. 24 2. FEMA Grant Firefighters Assistance at$397,000 to update equipment. 25 26 Fire Chief Hewitt noted the following goals for 2004: 27 1. Begin operating from the new station sometime in October. 28 2. Mandatory teambuilding sessions were held and seven different initiatives were 29 developed that would improve the organization over the next two to three years. He 30 added the document listing the initiatives would be posted in the fire station. 31 32 Fire Chief Hewitt listed the Housing Code enforcement incidents for 2003. 33 34 Fire Chief Hewitt thanked the following individuals and groups: 35 1. The firefighters and their families, as firefighting required dedication of the entire family 36 unit. 37 2. The City Council for its support over the past years and especially for its support 38 regarding the new fire station. 39 3. City Manager Momson for his support. 40 4. The citizens of St. Anthony Village. 41 42 Fire Chief Hewitt indicated his last day as Fire Chief for St. Anthony Village would be the 43 following Friday. He added he was thankful for the privilege of being the City's Fire Chief for 44 the past four years. 45 City Council Regular Meeting Minutes 09 April 27, 2004 Page 9 1 Councilmember Horst stated he wanted to personally thank Fire Chief Hewitt for his service 2 toward making the community safe. 3 4 Councilmember Stille thanked Fire Chief Hewitt for his service. He noted he attended the 5 organizational/operational assessment that was held and was impressed with the fact that 6 firefighters would take a calculated risk to save property; however, the risk taking went up 7 dramatically when a life was involved. He stated he wanted to thank all firefighters for that. 8 9 Councilmember Faust stated he was glad Fire Chief Hewitt had informed the residents of the 10 grant money received in 2003, as at times the departments were criticized for not actively 11 pursuing various funds. He added he was also pleased that the 2004 goals were outlined and that 12 "everyone bought into them." He noted the Department's goal setting happened after Council 13 had completed its goal setting and dovetailed into the City's goals. 14 15 Councilmember Faust indicated he wished Fire Chief Hewitt had highlighted the two firefighters 16 who received awards in 2003 for saving lives, as that was a significant accomplishment. 17 18 Councilmember Faust asked if the schools were relying on the external sirens for bad weather 19 warnings. Fire Chief Hewitt responded he believed most schools relied on the outdoor warning 20 system. He added he read about a request for parents to donate a Noaa radio to the principal's 21 office or clerk's staff so schools would be notified of an incident. He stated he hoped the 22 citizens would consider providing such equipment. 23 24 Councilmember Faust asked Mr. Morrison to "ask the question"regarding warning equipment 25 for the schools. 26 27 Councilmember Faust thanked Chief Hewitt for his years of service. 28 29 Councilmember Thuesen stated he knew that every classroom had a weather radio and utilized 30 the Internet for information. 31 32 Councilmember Thuesen stated teachers in childcare programs received first aid and CPR 33 training and many of those teachers were well prepared to handle a variety of emergencies until 34 medical help arrived. He thanked the Fire Department for the high quality training that was 35 given. 36 37 Councilmember Thuesen indicated he also appreciated the grant requests, as he knew it was time 38 consuming to put those proposals together. He stated he appreciated Fire Chief Hewitt's four 39 years of service, adding he would be missed. 40 41 VI. GENERAL POLICY BUSINESS OF THE COUNCIL. 42 A. Resolution 04-035, re: Adopt a hazard mitigation plan. 43 Fire Chief Hewitt noted Hennepin County Emergency Preparedness received a grant from the 44 Division of Homeland Security and Emergency Management to write a County-wide hazard 45 mitigation plan that encompassed all cities.within the County. 46 City Council Regular Meeting Minutes 10 April 27, 2004 Page 10 1 Fire Chief Hewitt explained the purpose of the plan was to identify hazards, risks, vulnerabilities 2 and measures that would prevent loss of life and damage to property while reducing future risks 3 in Hennepin County. He indicated the benefits of the hazard mitigation included but were not 4 limited to the following: saving lives and reducing injuries, preventing or reducing property' 5 damage, reducing economic losses, maintaining critical facilities in functioning order and 6 protecting critical infrastructure from damage. He added the hazards were listed and examined 7 for potential effects on Hennepin County and capabilities were analyzed, with local, state and 8 federal resources identified. 9 10 Fire Chief Hewitt stated acceptance of the plan did not incur direct costs but involved a paradigm 11 shift from the Emergency Plan being reactive to the Mitigation Plan being proactive. He noted a 12 copy of the Plan was on file in the City Clerk's office. 13 14 Fire Chief Hewitt requested Council approve acceptance of the Hennepin County Emergency 15 Preparedness Division Mitigation Plan. 16 17 Motion by Councilmember Faust, seconded by Councilmember Horst, to adopt Resolution 04- 1.8 035 to adopt by ordinance an All-Hazard Mitigation Plan. 19 20 Motion carried unanimously. 21 22 VII. REPORTS FROM CITY MANAGER AND COUNCILMEMBERS. 23 City Manager Morrison reported the following: 24 ■ Interviews for Fire Chief were taking place and a decision would be made by the end of 25 the week. 26 ■ The Public Works Department had officially taken over the Public Works building, 27 which was 98% complete. He indicated demolition of the existing building would be 28 done on Thursday, April 29. He added some of the building would be preserved for 29 storage purposes. 30 31 Mr. Mornson reported the following activities related to Silver Lake Village: 32 . A court hearing took place on April 26 regarding condemnation of certain properties, 33 which ruled in the City's favor. 34 ■ Building permits were pulled for improvements to Cub and for the liquor store.• He 35 indicated changes would be made so the entire area looked similar. 36 ■ Purchase Agreement for Tires Plus was signed. 37 ■ Plat was signed. 38 ■ PUD Agreement was signed. 39 ■ Planning Commission hearing for the final PUD on housing would be held in June or 40 July. 41 ■ A public hearing would be held on May 11 regarding condemnation of area properties. 42 ■ Ehlers' representatives would be present at the May 11 meeting to issue bonds. 43 44 Councilmember Horst reported Community Services had not held a Board meeting during the 45 current month, as a quorum was not reached. He noted there were a few positions open on the 46 Community Services Board and asked interested residents to consider serving on the Board. City Council Regular Meeting Minutes April 27, 2004 7 7 Page 11 1 2 Councilmember Horst indicated he attended a meeting for the Sister City Association and a few 3 major projects were being planned. He stated the high school choir would be making a trip to 4 Finland, where they would be performing several concerts. He noted the trip was partially . 5 funded by the Finlandian Foundation. He added St. Anthony Village would be visited by a 6 Finnish official in July. 7 8 Councilmember Horst stated the Sister City Committee was moving forward with the proposal 9 for a sculpture to be created by a Finnish artist, who would be working on the sculpture for two 10 months. He indicated the completed sculpture would be located somewhere in the City. 11 12 Councilmember Stille stated he had become a Kiwanis member since the last meeting and he 13 was willing to be an unofficial representative of the Council. 14 15 Councilmember Stille indicated he had the privilege of acting as a judge for the Villager of the 16 Year and Business of the Year competitions in March. He added the recipients were honored 17 with awards at the previous Chamber meeting. He noted Dave Halstensgard was named Villager 18 of the Year and stated Mr. Halstensgard was involved with many activities within the City. He 19 indicated Fitness Crossroads in the Saint Anthony Shopping Center received the Business of the 20 Year award for its unselfish management style and promotion of the community. 21 22 Councilmember Faust stated he attended a Mississippi Watershed organizational meeting on 23 April 16 for an initial review of 12 grants for projects within the District. He noted he talked 24 with Todd Hubmer of WSB and Associates regarding application for a grant on a worthy project 25 in Saint Anthony Village,realizing the City was a small part of that watershed district. 26 27 Councilmember Faust indicated he had discovered the City could not take homestead 28 applications for Ramsey County citizens, noting a third of the City was in Ramsey County. He 29 stated he talked with County Commissioner Wiessner regarding this issue, which resulted in the 30 applications now being available at City Hall. 31 32 Councilmember Faust reminded residents that Saturday, May 1, from 9:00 a.m. to 1:00 p.m. was 33 Cleanup Day. He indicated it was a good way for residents to dispose of those items that were 34 "hard to get rid of." 35 36 Mayor Pro Tern Thuesen cited the following activities within the City: 37 1. Village Gardeners annual plant sale was on Wednesday, May 12. He noted Village 38 Gardeners representatives would be there to answer questions. He added flyers were 39 available in the City offices. 40 2. The Grand Opening of the new Public Works facility was scheduled for Thursday, June 41 24, from 4:00 p.m. to 7:00 p.m., with a brief dedication ceremony at 5:30 p.m. He 42 encouraged residents to attend. 43 3. A garage sale was currently being held for the Patriots marching band and monies raised 44 went directly to the students who served in this organization. 45 City Council Regular Meeting Minutes 12 April 27, 2004 Page 12 1 VIII. COMMUNITY FORUM. 2 No one came forward to address Council. 3 4 IX. INFORMATION AND ANNOUNCEMENTS. 5 None. 6 7 X. MISCELLANEOUS INFORMATIONAL DOCUMENTS. 8 None. 9 10 XI. ADJOURNMENT. 11 Mayor Pro Tern Thuesen adjourned the meeting at 8:35 p.m. 12 13 14 Respectfully submitted, 15 16 17 Marjorie R. Jenkins 18 Timesaver Off Site Secretarial, Inc. 19 20 21 Mayor 22 ATTEST: 23 City Clerk 13 Saint Anthony Village DATE: May 11, 2004 Approved: TO: Mayor and Councilmembers FROM: Judy Monson, License Clerk ITEM: License and Permits for Approval: General Contractors License: Vinco, Inc., Forest Lake, MN Structures Hardscapes Specialists, Bloomington, MN Skyline Neon Inc., Minneapolis, MN Lawrence Sign Co, St. Paul, MN Heating License: Country Fireplace& Spas, Forest Lake, MN Massage Business License: Muscle &Body Massage Therapy, 3805 Stinson Blvd ACS FINANCIAL SYSTEM ST. ANTHONY VILLAGE 05/04/2004 13: Check Register GL540R-V06.60 PAGE 1 BANK VENDOR CHECK# DATE AMOUNT FIRS BREMER BANK NA 008242 AFFILIATED COMPUTER SERV 22488 05/12/04 1,037.68 008469 ALBIG TREE CARE 22489 05/12/04 450.00 007252 ALBRECHT 22490 05/12/04 1,362.87 008967 ALL-WOOD PRODUCTS 22491 05/12/04 25.00 008621. ALLIANCE MECHANICAL 22492 05/12/04 422.00 008900 APPLE BUSINESS FORMS, IN 22493 05/12/04 1,509.26 008909 ARCH WIRELESS 22494 05/12/04 21.81 008511 AT&T WIRELESS 22495 05/12/04 9.90 .00006 BLAINE LOCK & SAFE, INC. 22496 05/12/04 66.40 007253 BRAKE 6 EQUIPMENT WAREHO 22497 05/12/04 9.69 008652 CARTRIDGE CARE 22498 05/12/04 170.13 007386 CASTLE INSPECTION SERVIC 22499 05/12/04 7,711.65 002380 CENTERPOINT ENERGY MINNE 22500 05/12/04 6,417.18 000655 CLAREY'S SAFETY EQUIPMEN 22501 05/12/04 57,462.00 004107 COMPTON'S COMMERCIAL CLN 22502 05/12/04 3,860.63 008966 CULVERS 22503 05/12/04 252.28 000807 DIAMOND VOGEL PAINTS 22504 05/12/04 434.63 000200 EARL F. ANDERSEN, INC. 22505 05/12/04 594.99 000860 ENGSTROM/RICHARD 22506 05/12/04 482.66 008647 FRATTALLONE'S HARDWARE 22507 05/12/04 83.33 .00004 FREEDOM SERVICE STATION 22508 05/12/04 792.04 001030 G 6 K SERVICES INC 22509 05/12/04 448.65 007114 GENERAL SAFETY EQUIPMENT 22510 05/12/04 13.93 005121 HARTMAN/JAY 22511 05/12/04 71.08 _ 001420 HAWKINS WATER TREATMENT 22512 05/12/04 1,236.04 008924 HCMC EMS EDUCATION 22513 05/12/04 1,080.00 001505 HENNEPIN COUNTY SHERIFF 22514 05/12/04 507.72 008252 HOME DEPOT-GECF 22515 05/12/04 147.41 009062 IPOWERWEB, INC. 22516 05/12/04 95.40 008707 J. SPANJERS CO., INC. 22517 05/12/04 3,800.00 007352 KATH FUEL OIL SERVICE 22518 05/12/04 159.75 001980 LEAGUE OF MN CITIES 22519 05/12/04 20.00 008791 LEAH KLU2 DESIGN 22520 05/12/04 1,350.00 008229 LOFFLER BUSINESS SYSTEMS 22521 05/12/04 110.23 005135 LUNDEEN/RICHARD 22522 05/12/04 11.25 008263 MCLEOD USA, INC. 22523 05/12/04 1,879.19 009046 METRO SYSTEMS 22524 05/12/04 3,135.96 007835 METROCALL 22525 05/12/04 231.42 - 002240 METROPOLITAN COUNCIL 22526 05/12/04 28,251.67 002060 MINNESOTA BOLT & NUT COM 22527 05/12/04 191.68 008803 MINNESOTA FIRE SERVICES 22528 05/12/04 15.00 008269 MINNESOTA SHREDDING LLC 22529 05/12/04 54.00 005204 MN DEPT PUBLIC SAFETY 22530 05/12/04 225.00 .00002 NATIVITY CHURCH 22531 05/12/04 37.50 .00001 NELSON/ELAINE 22532 05/12/04 525.57 008993 NERTEL COMMUNICATIONS 22533 05/12/04 251.38 008820 NORTHERN TRAFFIC SUPPLY, 22534 05/12/04 245.49 008601 NORTHSTAR CHAPTER 22535 05/12/04 50.00 Sh ACS FINANCIAL SYSTEM ST. ANTHONY VILLAGE 05/04/2004 13: Check Register GL540R-V06.60 PAGE 2 BANK VENDOR CHECK# DATE AMOUNT FIRS BREMER BANK NA 000045 OFFICE DEPOT 22536 05/12/04 340.73 008527 OLSEN FIRE INSPECTION, I 22537 05/12/04 290.00 009063 P & R PRODUCTS 22538 05/12/04 1,289.00 008811 PARK CONSTRUCTION 22539 05/12/04 69,810.06 008631 PARTS PLUS ROSEVILLE 22540 05/12/04 15.40 008805 PETTY CASH - BREMER BANK 22541 05/12/04 132.57 004372 PLUNKETT'S 22542 05/12/04 43.13 007057 PRAXAIR 22543 05/12/04 25.06 008928 RAK INDUSTRIES 22544 05/12/04 147.92 008462 RAMSEY COUNTY 22545 05/12/04 22.00 008520 SENSIBLE LAND USE COALIT 22546 05/12/04 30.00 .00007 SIMPLEXGRINNELL 22547 05/12/04 408.96 003155 ST ANTHONY FIRE RELIEF A 22548 05/12/04 6,000.00 003490 STREICHER'S 22549 05/12/04 4,264.60 008681 TAMARACK MATERIALS, INC. 22550 05/12/04 122.69 007337 TIMESAVER OFF SITE SECRE 22551 05/12/04 284.55 .00003 TWIN CITY HYDRO SEEDING 22552 05/12/04 3,334.10 008336 UNITED ELECTRIC COMPANY 22553 05/12/04 45.15 008561 UNITED RENTALS COMPANY 22554 05/12/04 182.13 008227 VERIZON WIRELESS, BELLEV 22555 05/12/04 230.97 004494 WASTE MANAGEMENT - BLAIN 22556 05/12/04 443.31 008273 WSB & ASSOCIATES, INC. 22557 05/12/04 5,658.50 002680 XCEL ENERGY 22558 05/12/04 6.28 007325 YOCUM OIL COMPANY, INC. 22559 05/12/04 12,058.29 _ BREMER BANK NA 232,506.85 *** 0� i ACS FINANCIAL SYSTEM ST. ANTHONY VILLAGE 05/04/2004 14: Check Register GL540R-V06.60 PAGE 1 BANK VENDOR CHECK# DATE AMOUNT LIQR LIQUOR CHECKING ACCOUNT 009058 AMERICAN BOTTLING COMPAN 23269 05/12/04 . 67.20 008794 ARCTIC GLACIER INC. 23270 05/12/04 300.20 008511 AT&T WIRELESS 23271 05/12/04 83.13 004293 BELLBOY CORP. 23272 05/12/04 1,998.57 004080 CHISAGO LAKES DIST. CO., 23273 05/12/04 1,072.80 004085 CITY OF ST ANTHONY 23274 05/12/04 44.43 -004095 COCA COLA BOTTLING 23275 05/12/04 669.30 009017 D'VINE WINE DISTRIBUTORS 23276 05/12/04 164.20 008557 DAILEY DATA &-ASSOCIATES 23277 05/12/04 272.21 004120 EAGLE WINE CO 23278 05/12/04 524.23 . 004125 EAST SIDE BEVERAGE CO 23279 05/12/04 18,975.95 008697 EXTREME BEVERAGE 23280 05/12/04 300.00 001030 G & K SERVICES INC 23281 05/12/04 272.35 . 004172 GRAPE BEGINNINGS, INC. 23282 05/12/04 400.00 004175 GRIGGS COOPER & CO INC 23283 05/12/04 2,707.61 004207 HOHENSTEIN'S, INC 23284 05/12/04 969.85 004220 JOHNSON BROTHERS LIQUOR 23285 05/12/04 8,624.09 004230 KUETHER DISTRIBUTING CO 23286 05/12/04 16,990.85 002040 LILLIE SUBURBAN NEWSPAPE 23287 05/12/04 325.00 008229 LOFFLER BUSINESS SYSTEMS 23288 05/12/04 82.84 004265 MARK VII SALES INC 23289 05/12/04 10,197.98 ' 008263 MCLEOD USA, INC. 23290 05/12/04 314.66 _ 007120 MINNESOTA UC FUND 23291 05/12/04 4,100.62 008996 NEEDHAM DISTRIBUTING CO 23292 05/12/04 107.00 008883 NEW FRANCE WINE COMPANY 23293 05/12/04 627.00 004354 PAUSTIS & SONS 23294 05/12/04 350.90 004360 PHILLIPS WINE& SPIRITS 23295 05/12/04 2,467.58 004361 PINNACLE DIST. 23296 05/12/04 1,660.60 004376 PRIOR WINE CO 23297 05/12/04 704.99 004385 QUALITY WINE CO 23298 05/12/04 3,634.77 008316 WINE COMPANY/THE 23299 05/12/04 947.55 008310 WINE MERCHANTS INC 23300 05/12/04 948.69 004499 WORLD CLASS WINES, INC. 23301 05/12/04 439.25 LIQUOR CHECKING ACCOUNT 81,346.40 *** ACS FINANCIAL SYSTEM ST. ANTHONY VILLAGE 05/04/2004 14: Check Register GL540R-V06.60 PAGE 1 BANK VENDOR CHECK# DATE AMOUNT LIQR LIQUOR CHECKING ACCOUNT 002850 MEDICA CHOICE 23263 04/30./04 1,124.25 LIQUOR CHECKING ACCOUNT 1,124.25 *** 17 REQUEST FOR COUNCIL CONSIDERATION i . . $ IOii Report Date: May 5, 2004 �� � y Ella e C� Meeting Date: May 11 , 2004 Agenda Section: VI, A ITEM DESCRIPTION: Sale of General Obligation Temporary Bonds Series 2004B. Sale of General Obligation Improvement Bonds Series 2004A MANAGER'S REVIEW: Resolution 04-039 is a temporary improvement bond that will provide the City with the revenue needed to complete the W' Avenue Project between Silver Lake Road and Stinson Boulevard. The funds to pay back the bonds will come from Special Assessments against benefiting property owners. The Federal Government with the assistance of Congressman Sabo is providing $750,000 for the project. 'Resolution 04-040 is a General Obligation Improvement Bond in the amount of $1 ,790,000. This bond will provide the funding necessary to construct the 2004 Street Project, which consists of Belden Drive, Hilldale Avenue, 32nd Avenue, and Townview Avenue. Jim Prosser, Financial Advisor from Ehlers and Associates will present the details from the bid opening. Recommendation: Council Approval of Resolution 04-039 for Sale of General Obligation Temporary Bonds Series 2004B and Resolution 04-040 for Sale of General Obligation Improvement Bonds Series 2004A. baJ Michael Morrison City Manager 2004 STREET & UTILITY IMPROVEMENTS lam 1 Z4 Feet y _ { i 1 s. .._*.' +I k - � ':,a-•' dLmaj ��i"mj � 31a% �. _:q r:. � - t I 'F�' �y - �:L! r q } } 1 �1�♦5��L�i,--� Sa t y � � '41� A ,I 0 75 150 300 STREET RECONSTRUCTION FIGURE 2 i I °al I I I � 0 I � I ig, I IV7 I Project Location s i.' rI : i _°r x t 1[ f SILVER ANE S Y L > r L: a a I I I I w > o I Y Q' O O 2 O (� O _ 3 VE of � I o f Q SSE D I A OND , II I TERRACE a I 37TH AV E. Y R A p ) I E EW I I QI w w w I w I o o E J GO j FLU 11 1111 1 11 WE. LLJ w Z K CR I V W I V) IU W J J Iw t r AI C C i t • . AI I I , l Project Location Ma W5B Proles No. 01065.85 Date:February 2004 - 4150 Olson Memorial Highway � p ry Suite 300 WSBMinneapolis,MN 55422 39th Avenue 7635414800 Street& Utility Improvements &6ssocidex.!nc FAX 763-541-1700 for Figure 1 St. Anthony, Minnesota m:\01065-85\Feasibility\rig-01.dgn 18 Councilmember then introduced the following resolution and moved its adoption: RESOLUTION 04-039 RESOLUTION RELATING TO $2,075,000 GENERAL OBLIGATION TEMPORARY IMPROVEMENT BONDS, SERIES 2004B; AWARDING THE SALE, FIXING THE FORM AND DETAILS AND PROVIDING FOR THE EXECUTION AND DELIVERY THEREOF AND SECURITY THEREFOR AND LEVYING AD VALOREM TAXES FOR THE PAYMENT THEREOF BE IT RESOLVED by the City Council of the City of St. Anthony, Minnesota (the"City"), as follows: Section 1. Recitals, Authorization and Sale of Bonds. 1.01. Authorization. This Council has heretofore ordered the an improvement project to be constructed within the City under and pursuant to Minnesota Statutes, Chapter 429, consisting of various street improvements (collectively the "Improvements"). The present estimated total cost of the Improvements is as follows: Project Costs......................................................... $2,001,152 Issuance Expenses................................................ 25,000 Capitalized Interest............................................... 38,473 Discount Allowance ............................................. 10,375 Total................................................................ $2,075,000 This Council hereby determines to issue and sell$2,075,000 principal amount of General Obligation Temporary Improvement Bonds, Series 2004B, of the City (the`Bonds") to defray a portion of the expense incurred and estimated to be incurred by the City in making the Improvements, including every item of cost of the kinds authorized in Minnesota Statutes, Section 475.65, and$21,480 representing interest as provided in Minnesota Statutes, Section 475.56. The City has retained Ehlers &Associates, Inc. to act as financial advisor to the City in connection with the issuance and sale of the Bonds, and it is hereby determined to sell the Bonds without meeting the requirements as to public sale under Minnesota Statutes, Section 475.60, subdivision 1,pursuant to the exception from such requirement contained in clause(9) of Minnesota Statutes, Section 475.60, subdivision 2. 1.02. Sale of Bonds. The City has received L_)proposals for the purchase of the Bonds. The most favorable proposal received is that of of , (the"Purchaser"), to purchase the Bonds at a price of$ , the Bonds to bear interest at the rates set forth in Section 3.01 hereof and to be subject to the further terms and conditions set forth in this Resolution. The proposal is hereby accepted, and 19 the Mayor and the City Manager are hereby authorized and directed to execute a contract on the part of the City for the sale of the Bonds with the Purchaser. The good faith checks of the unsuccessful bidders shall be returned forthwith. 1.03. Performance of Requirements. All acts, conditions and things which are required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be performed precedent to and in the valid issuance of the Bonds having been done, existing, having happened and having been performed, it is now necessary for this Council to establish the form and terms of the Bonds, to provide security therefor and to issue the Bonds forthwith. Section 2. Form of Bonds. The Bonds shall be prepared in substantially the following form: UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTIES OF HENNEPIN AND RAMSEY CITY OF ST. ANTHONY GENERAL OBLIGATION TEMPORARY IMPROVEMENT BOND, SERIES 2004B No. R- $ Date of Interest Rate Maturity Original Issue CUSIP June 1, 2004 REGISTERED OWNER: CEDE & CO. PRINCIPAL AMOUNT: DOLLARS THE CITY OF ST. ANTHONY, Hennepin and Ramsey Counties, Minnesota (the "City"), acknowledges itself to be indebted and, for value received, hereby promises to pay to the registered owner named above, or registered assigns, the principal amount specified above, on the maturity date specified above, with interest thereon from the date of original issue specified above, or from the most recent interest payment date to which interest has been paid or duly provided for, at the annual rate specified above. Interest hereon is payable on February 1 and August 1 in each year, commencing February 1, 2005, to the person in whose name this Bond is registered at the close of business on the 15th day (whether or not a business day) of the immediately preceding month, all subject to the provisions referred to herein with respect to the redemption of the principal of this Bond before maturity. The interest hereon and, upon presentation and surrender hereof, the principal hereof, are payable in lawful money of the United States of America by check or draft of Wells Fargo Bank, National Association in Minneapolis, Minnesota, as Bond Registrar, Transfer Agent and Paying Agent (the`Bond Registrar"), or its successor designated under the Resolution described herein. -2- 20 This Bond is one of an issue in the aggregate principal amount of$2,075,000 (the . "Bonds"), issued pursuant to a resolution adopted by the City Council on May 11, 2004 (the "Resolution"), for the purpose of financing a portion of the costs of various street improvements in the City(the"Improvements"), and is issued pursuant to and in fall conformity with the provisions of the Constitution and laws of the State of Minnesota thereunto enabling, including Minnesota Statutes, Chapters 429 and 475. The Bonds are payable primarily from the 2004B Improvement Bond Fund (the"Fund") of the City. In addition, for the full and prompt payment of the principal and interest on the Bonds as the same become due, the full faith, credit and taxing power of the City have been and are hereby irrevocably pledged. The Bonds are issuable only as fully registered bonds in denominations of$5,000 or any multiple thereof, of single maturities. The Bonds are each subject to redemption and prepayment, at the option of the City and in whole or in part, and if in part, in$5,000 principal amounts selected by lot, on February 1, 2005 and on any date thereafter, at a price equal to the principal amount thereof to be redeemed plus accrued interest to the date of redemption. At least thirty days prior to the date set for redemption of any Bond,notice of the. call for redemption will be mailed to the Bond Registrar and to the registered owner of each Bond to be redeemed at his address appearing in the Bond Register,but no defect in or failure to give such mailed notice of redemption shall affect the validity of the proceedings for the redemption of any Bond not affected by such defect or failure. Official notice of redemption having been given as aforesaid, the Bonds or portions of the Bonds so to be redeemed shall, on the redemption date, become due and payable at the redemption price herein specified and from and after such date (unless the City shall default in the payment of the redemption price) such Bond or portions of Bonds shall cease to bear interest. Upon the partial redemption of any Bond, a new Bond or Bonds will be delivered to the registered owner without charge,representing the remaining principal amount outstanding. The Bonds have been designated by the City as"qualified tax-exempt obligations"pursuant to Section 265(b) of the Internal Revenue Code of 1986, as amended. As provided in the Resolution and subject to certain limitations set forth therein, this Bond is transferable upon the books of the City at the principal office of the Bond Registrar, by the registered owner hereof in person or by his attorney duly authorized in writing upon surrender hereof together with a written instrument of transfer satisfactory to the Bond Registrar, duly executed by the registered owner or his attorney; and may also be surrendered in exchange for Bonds of other authorized denominations. Upon such transfer or exchange, the City will cause a new Bond or Bonds to be issued in the name of the transferee or registered owner, of the same aggregate principal amount, bearing interest at the same rate and maturing on the same date, subject to reimbursement for any tax, fee or governmental charge required to be paid with respect to such transfer or exchange. The City and the Bond Registrar may deem and treat the person in whose name this Bond is registered as the absolute owner hereof, whether this Bond is overdue or not, for the -3- 21 purpose of receiving payment and for all other purposes, and neither the City nor the Bond Registrar shall be affected by any notice to the contrary. IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts, conditions and things required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be performed precedent to and in the issuance of this Bond in order to make this Bond a valid and binding general obligation of the City according to its terms, have been done, do exist, have happened and have been performed in regular and due form as so required; as provided by Minnesota Statutes, Section 429.091, subdivision 5, to the extent that the principal and interest on this Bond cannot be paid when due from receipts of special assessments, taxes or other funds appropriated for this purpose, they shall be paid from the proceeds of improvement bonds or additional temporary improvement bonds which the City Council of the City shall offer for sale in advance of their maturity; and that the issuance of this Bond does not cause the indebtedness of the City to exceed any constitutional or statutory limitation. This Bond shall not be valid or become obligatory for any purpose or be entitled to any security or benefit under the Resolution until the Certificate of Authentication hereon shall have been executed by the Bond Registrar by the manual signature of a person authorized to sign on its behalf. IN WITNESS WHEREOF, the City of St. Anthony, Hennepin and Ramsey Counties, Minnesota, by its City Council, has caused this Bond to be executed by the signatures of the Mayor and the City Manager and has caused this Bond to be dated as of the date set forth below. CITY OF ST. ANTHONY City Manager Mayor -4- 22 CERTIFICATE OF AUTHENTICATION This is one of the Bonds delivered pursuant to the Resolution mentioned within. Date of Authentication: WELLS FARGO BANK, NATIONAL ASSOCIATION, Minneapolis,Minnesota, as Bond Registrar By_ Authorized Representative The following abbreviations, when used in the inscription on the face of this Bond, shall be construed as though they were written out in full according to applicable laws or regulations: TEN COM——as tenants UNIF TRANS MIN ACT. . . . . . . Custodian. . . . . . . . in common (Cust) (Minor) TEN ENT——as tenants by the entireties under Uniform Transfers to Minors Act. . . . . . . . . . . . . . . . . . . . . . JT TEN—— as joint tenants (State) with right of survivorship and not as tenants in common Additional abbreviations may also be used. ASSIGNMENT FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto the within Bond and all rights thereunder, and hereby irrevocably constitutes and appoints attorney to transfer the within Bond on the books kept for registration thereof, with full power of substitution in the premises. Dated: -5- 23 PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER NOTICE: The signature(s) to this OF ASSIGNEE: assignment must correspond with the name as it appears upon the face of the within Bond in every particular, without alteration, enlargement or any change whatsoever. Signature(s)must be guaranteed by an eligible guarantor institution"tution" meeting the requirements of the Bond Registrar, which requirements include membership or participation in the Securities Transfer Association Medalion Program (STAMP) or such other"signature guaranty program" as may be determined by the Bond Registrar in addition to or in substitution for STAMP, all in accordance with the Securities Exchange Act of 1934, as amended. [End of Bond Form.] Section 3. Bond Terms Execution x ution and Deli ye . 3.01. Maturities Interest Rates Denominations Pa ent Dating of Bonds. The City shall forthwith issue and deliver the Bonds, which shall be denominated "General Obligation Temporary Improvement Bonds, Series 2004B" and shall be payable primarily from the 2004B General Obligation Improvement Bond Fund of the City created in Section 4.02. The Bonds shall be dated as of June 1, 2004, shall be issuable in the denominations of$5,000 or any integral multiple thereof, shall mature on February , 2007 shall bear interest computed on the rY � p basis of a 360-day year consisting of twelve 30-day months, from February 1, 2005 until paid or duly called for redemption at the rate of %per annum. The Bonds shall be issuable only in fully registered form, of single maturities. The interest thereon and,upon surrender of each Bond at the principal office of the Registrar described herein,the principal amount thereof, shall be payable by check or draft issued by the Registrar. Each Bond shall be dated by the Registrar as of the date of its authentication. 3.02. Interest Pavment Dates. Interest on the Bonds shall be payable on February 1 and August 1 in each year, commencing February 1, 2005,to the owners thereof as such appear of record in the bond register as of the close of business on the fifteenth day of the immediately preceding month, whether or not such day is a business day. -6- 24 3.03. Registration. The City shall appoint, and shall maintain, a bond registrar, transfer agent and paying agent (the"Registrar"). The effect of registration and the rights and duties of the City and the Registrar with respect thereto shall be as follows: (a) Re 'ster. The Registrar shall keep at its principal office a bond register in which the Registrar shall provide for the registration of ownership of Bonds and the registration of transfers and exchanges of Bonds entitled to be registered, transferred or exchanged. (b) Transfer of Bonds. Upon surrender to the Registrar for transfer of any Bond duly endorsed by the registered owner thereof or accompanied by a written instrument of transfer, in form satisfactory to the Registrar, duly executed by the registered owner thereof or by an attorney duly authorized by the registered owner in-writing, the Registrar shall authenticate and deliver, in the name of the designated transferee or transferees, one or more new Bonds of a like aggregate principal amount and maturity, as requested by the transferor. The Registrar may, however, close the books for registration of any transfer after the fifteenth day of the month preceding each interest payment date and until such interest payment date. (c) Exchange of Bonds. Whenever any Bond is surrendered by the registered owner for exchange, the Registrar shall authenticate and deliver one or more new Bonds of a like aggregate principal amount, interest rate and maturity, as requested by the registered owner or the owner's attorney duly authorized in writing. (d) Cancellation. All Bonds surrendered upon any transfer or exchange shall be promptly cancelled by the Registrar and thereafter disposed of as directed by the City. (e) Improper or Unauthorized Transfer. When any Bond is presented to the Registrar for transfer, the Registrar may refuse to transfer the same until it is satisfied that the endorsement on such Bond or separate instrument of transfer is valid and genuine and that the requested transfer is legally authorized. The Registrar shall incur no liability for its refusal, in good faith, to make transfers which it, in its judgment, deems improper or unauthorized. (f) Persons Deemed Owners. The City and the Registrar may treat the person in whose name any Bond is at any time registered in the bond register as the absolute owner of such Bond, whether such Bond shall be overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on such Bond and for all other purposes, and all such payments so made to any such registered owner or upon the owner's order shall be valid and effectual to satisfy and discharge the liability of the City upon such Bond to the extent of the sum or sums so paid. (g) Taxes, Fees and Charges. For every transfer or exchange of Bonds (except for an exchange upon a partial redemption of a Bond), the Registrar may impose a charge upon the owner thereof sufficient to reimburse the Registrar for any tax, fee or other governmental charge required to be paid with respect to such transfer or exchange. -7- 25 (h) Mutilated, Lost, Stolen or Destroyed Bonds. In case any Bond shall become mutilated or be lost, stolen or destroyed, the Registrar shall deliver a new Bond of like amount, number, interest rate, maturity date and tenor in exchange and substitution for and upon cancellation of any such mutilated Bond or in lieu of and in substitution for any such Bond lost, stolen or destroyed, upon the payment of the reasonable expenses and charges of the Registrar in connection therewith; and, in the case of a Bond lost,stolen or destroyed, upon receipt by the Registrar of evidence satisfactory to it that such Bond was lost, stolen or destroyed, and of the ownership thereof, and upon receipt by the Registrar of an appropriate bond or indemnity in form, substance and amount satisfactory to it, in which both the City and the Registrar shall be named as obligees. All Bonds so surrendered to the Registrar shall be cancelled by it and evidence of such cancellation shall be given to the City. If the mutilated, lost, stolen or destroyed Bond has already matured or been called for redemption in accordance with its terms, it shall not be necessary to issue a new Bond prior to payment. (i) Authenticating ent. The Registrar is hereby designated authenticating agent for the Bonds, within the meaning of Minnesota Statutes, Section 475.55, Subdivision 1. 3.04. Appointment of Initial Re istr ar. The City hereby appoints Wells Fargo Bank,National Association in Minneapolis, Minnesota, as the initial Registrar. The Mayor and City Manager are authorized to execute and deliver, on behalf of the City, a contract with Wells Fargo Bank, National Association, as Registrar. Upon merger or consolidation of the Registrar with another corporation, if the resulting corporation is a bank or trust company authorized by law to conduct such business, such corporation shall be authorized to act as successor Registrar. The City agrees to pay the reasonable and customary charges of the Registrar for the services performed. The City reserves the right to remove any Registrar upon thirty(30) days' notice and upon the appointment of a successor Registrar, in which event the predecessor Registrar shall deliver all cash and Bonds in its possession to the successor Registrar. On or before each principal or interest due date, without further order of this Council, the Finance Director shall transmit to the Registrar from the 2004B Improvement Bond Fund described in Section 4 hereof, moneys sufficient for the payment of all principal and interest then due. 3.05. Redemption. The Bonds are each subject to redemption, at the option of the City and in whole or in part, and if in part, in$5,000 principal amounts selected by the Registrar by lot, on February 1, 2005 and on any date thereafter, at a redemption price equal to the principal amount thereof to be redeemed plus accrued interest to the date of redemption. At least thirty days prior to the date set for redemption of any Bond,the City shall cause notice of the call for redemption to be mailed to the Registrar and to the registered owner of each Bond to be redeemed,but no defect in or failure to give such mailed notice of redemption shall affect the validity of proceedings for the redemption of any Bond not affected by such defect or failure. The notice of redemption shall specify the redemption date, redemption price, the numbers,interest rates and CUSIP numbers of the Bonds to be redeemed and the place at which the Bonds are to be surrendered for payment,which is the principal office -8- 26 of the Registrar. Official notice of redemption having been given as aforesaid, the Bonds or portions thereof so to be redeemed shall, on the redemption date,become due and payable at the redemption price therein specified and from and after such date (unless the City shall default in the payment of the redemption price) such Bonds or portions thereof shall cease to bear interest. Bonds in a denomination larger than $5,000 may be redeemed in part in any integral multiple of$5,000. The owner of any Bond redeemed in part shall receive without charge,upon surrender of such Bond to the Registrar, one or more new Bonds in authorized denominations equal in principal amount to be unredeemed portion of the Bond so surrendered. 3.06. Preparation and Delivery. The Bonds shall be prepared under the direction of the City Manager and shall be executed on behalf of the City by the signatures of the Mayor and the City Manager; provided that said signatures may be printed, engraved, or lithographed facsimiles thereof. In case any officer whose signature, or a facsimile of whose signature, shall appear on the Bonds shall cease to be such officer before the delivery of any Bond, such signature or facsimile shall nevertheless be valid and sufficient for all purposes, the same as if such officer had remained in office until delivery. Notwithstanding such execution, no Bond shall be valid or obligatory for any purpose or entitled to any security or benefit under this Resolution unless and until a certificate of authentication on such Bond has been duly executed by the manual signature of an authorized representative of the Registrar. Certificates of authentication on different Bonds need not be signed by the same representative. The executed certificate of authentication on each Bond shall be conclusive evidence that it has been authenticated and delivered under this Resolution. When the Bonds have been so executed and authenticated,they shall be delivered by the City Manager to the Purchaser upon payment of the purchase price in accordance with the contract of sale heretofore made and executed, and the Purchaser shall not be obligated to see to the application of the purchase price. 3.07. Securities Depository. (a) For purposes of this Section the following terms shall have the following meanings: "Beneficial Owner" shall mean, whenever used with respect to a Bond, the person in whose name such Bond is recorded as the beneficial owner of such Bond by a Participant on the records of such Participant, or such person's subrogee. "Cede& Co." shall mean Cede & Co., the nominee of DTC, and any successor nominee of DTC with respect to the Bonds. "DTC" shall mean The Depository Trust Company of New York, New York. "Participant" shall mean any broker-dealer,bank or other financial institution for which DTC holds Bonds as securities depository. "Representation Letter" shall mean the Representation Letter from the City to DTC with respect to the procedures of DTC presently on file with DTC. -9- 27 (b) The Bonds shall be initially issued as separately authenticated fully registered bonds, and one Bond shall be issued in the principal amount of each stated maturity of the Bonds. Upon initial issuance, the ownership of such Bonds shall be registered in the bond register in the name of Cede& Co., as nominee of DTC. The Registrar and the City may treat DTC (or its nominee) as the sole and exclusive owner of the Bonds registered in its name for the purposes of payment of the principal of or interest on the Bonds, selecting the Bonds or portions thereof to be redeemed, if any, giving any notice permitted or required to be given to registered owners of Bonds under this resolution,registering the transfer of Bonds, and for all other purposes whatsoever; and neither the Registrar nor the City shall be affected by any notice to the contrary. Neither the Registrar nor the City shall have any responsibility or obligation to any Participant, any person claiming a beneficial ownership interest in the Bonds under or through DTC or any Participant, or any other person which is not shown on the bond register as being a registered owner of any Bonds, with respect to the accuracy of any records maintained by DTC or any Participant, with respect to the payment by DTC or any Participant of any amount with respect to the principal of or interest on the Bonds, with respect to any notice which is permitted or required to be given to owners of Bonds under this resolution, with respect to the selection by DTC or any Participant of any person to receive payment in the event of a.partial redemption of the Bonds, or with respect to any consent given or other action taken by DTC as registered owner of the Bonds. So long as any Bond is registered in the name of Cede & Co., as nominee of DTC, the Registrar shall pay all principal of and interest on such Bond, and shall give all notices with respect to such Bond, only to Cede& Co. in accordance with the Representation Letter, and all such payments shall be valid and effective to fully satisfy and discharge the City's obligations with respect to the principal of and interest on the Bonds to the extent of the sum or sums so paid. No person other than DTC shall receive an authenticated Bond for each separate stated maturity evidencing the obligation of the City to make payments of principal and interest. Upon delivery by DTC to the Registrar of written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., the Bonds will be transferable to such new nominee in accordance with paragraph (d) hereof. (c) In the event the City determines that it is in the best interest of the Beneficial Owners that they be able to obtain Bonds in the form of bond certificates,the City may notify DTC and the Registrar, whereupon DTC shall notify the Participants of the availability through DTC of Bonds in the form of certificates. In such event, the Bonds will be transferable in accordance with paragraph(d)hereof. DTC may determine to discontinue providing its services with respect to the Bonds at any time by giving notice to the City and the Registrar and discharging its responsibilities with respect thereto under applicable law. In such event the Bonds will be transferable in accordance with paragraph(d)hereof. (d) In the event that any transfer or exchange of Bonds is permitted under paragraph(b) or(c)hereof, such transfer or exchange shall be accomplished upon receipt by the Registrar of the Bonds to be transferred or exchanged and appropriate instruments of transfer to the permitted transferee in accordance with the provisions of this resolution. In the event Bonds in the form of certificates are issued to owners other than Cede& Co., its successor as nominee for DTC as owner of all the Bonds, or another securities depository as owner of all the Bonds, the provisions of this resolution shall also apply to all matters relating thereto, including, without -10- 28 limitation, the printing of such Bonds in the form of bond certificates and the method of payment of principal of and interest on such Bonds in the form of bond certificates. Section 4. Security Provisions. 4.01. 2004B Improvement Construction Fund. There is hereby created a special bookkeeping fund to be designated as the "2004B Improvement'Construction Fund" (the "Construction Fund"), to be held and administered by the Finance Director separate and apart from all other funds of the City. The City appropriates to the Construction Fund (a) $ of the proceeds of the sale of the Bonds, and (b) all collections of special assessments levied for the Improvements until completion and payment of all costs of the Improvements. The Construction Fund shall be used solely to defray expenses of the Improvements, including but not limited to the transfer to the Bond Fund, created in Section 4.02 hereof, of amounts sufficient for the payment of interest and principal, if any, due upon the Bonds prior to the completion and payment of all costs of the Improvements and the payment of the expenses incurred by the City in connection with the issuance of the Bonds. Upon completion and payment of all costs of the Improvements, any balance of the proceeds of Bonds remaining in the Construction Fund may be used to pay the cost, in whole or in part, of any other improvements instituted pursuant to the Act, as directed by the City Council,but any balance of such proceeds not so used shall be credited and paid to the Bond Fund. 4.02. 2004B Improvement Bond Fund. So long as any of the Bonds are outstanding and any principal of or interest thereon unpaid, the Finance Director shall maintain a separate and special bookkeeping fund designated"2004B Improvement Bond Fund" (the"Bond Fund") to be used for no purpose other than the payment of the principal of and interest on the Bonds and on such other improvement bonds of the City as have been or may be directed to be paid therefrom. The City irrevocably appropriates to the Bond Fund(a) all amounts in excess of $2,064,625.00 received from the Purchaser,plus capitalized interest in the amount of $38,472.62, (b) the collections of special assessments and other funds to be credited and paid thereto in accordance with the provisions of Section 4.01, (c) any taxes levied in accordance with this resolution, (d) the proceeds of improvement bonds or temporary improvement bonds issued by the City to pay the principal of and interest on the Bonds, and (e) all such other moneys as shall be received and appropriated to the Bond Fund from time to time. There are hereby established two accounts in the Bond Fund, designated as the "Debt Service Account" and the"Surplus Account." All money appropriated or to be deposited in the Bond Fund shall be deposited as received into the Debt Service Account. On each February 1, the Finance Director shall determine the amount on hand in the Debt Service Account. If such amount is in excess of one-twelfth of the debt service payable from the Bond Fund in the immediately preceding 12 months, the Finance Director shall promptly transfer the amount in excess to the Surplus Account. The City appropriates to the Surplus Account any amounts to be transferred thereto from the Debt Service Account as herein provided and all income derived from the investment of amounts on hand in the Surplus Account. If at any time the amount on hand in the Debt Service Account is insufficient to meet the requirements of the Bond Fund, the Finance Director shall transfer to the Debt Service Account amounts on hand in the Surplus Account to the extent necessary to cure such deficiency. -11- 29 4.03. Full Faith and Credit Pledged. In addition to all the provisions for the security of the Bonds contained in Minnesota Statutes, Section 429.091, subdivision 5,pursuant to Minnesota Statutes, subdivision 7,the full faith and credit of the City are irrevocably pledged for the prompt and full payment of the principal of and the interest on the Bonds, and the Bonds shall be payable from the Bond Fund in accordance with the provisions and covenants contained in this resolution. If the money on hand in the Bond Fund should at any time be insufficient for the payment of principal and interest then due, this City shall pay the principal and interest out of any fund of the City, and such other fund or funds shall be reimbursed therefor when sufficient money is available to the Bond Fund. Section 5. Defeasance. When any Bond has been discharged as provided in this Section 5, 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 outstanding under this Resolution. The City may discharge its obligations with respect to any Bond which is due on any date by irrevocably depositing with the Registrar on or before that date a sum sufficient for the payment thereof in full; or, if any Bond should not be paid when due, the City may nevertheless discharge its obligations with respect thereto by depositing with the Registrar 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 called for redemption on any date when it is prepayable according to their terms, by- depositing with the Registrar on.or before that date a sum sufficient for the payment thereof in full; provided that notice of the redemption thereof has been duly given as provided in Section 3.05. 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, without reinvestment, to pay all principal and interest to become due thereon to maturity or, if notice of redemption as herein required has been duly provided for;to such earlier redemption date. Section 6. County Auditor Registration Certification of Proceedings Investment of Money, Arbitrage 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 each County Auditor a certificate that the Bonds have been entered on his bond register and the taxes described in Section 4.05 hereof have been levied 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 and to Dorsey&Whitney LLP, Bond Counsel to the City, 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 from the books and records under their custody and control or as -12- 3® 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. Covenant. The City covenants and agrees with the holders from time to time of the Bonds that it will not take or permit to be taken by any of its 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 Regulations . promulgated thereunder(the"Regulations"), as such are enacted or promulgated and in effect on the date of issue of the Bonds, and covenants to take any and all actions within its powers to ensure that the interest on the Bonds will not become subject to taxation under such Code and Regulations. The Improvements are public improvements available for use by members of the general public on a substantially equal basis. The City will not enter into any'lease, use agreement or other contract respecting the Improvements 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 Rebate. 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 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 Bonds are to be used for the local governmental purposes of the City; and (iv) the aggregate face amount of all tax-exempt bonds (other than Private Activity Bonds) issued by the City in calendar year in which the Bonds are to be issued is not reasonably expected to exceed $5,000,000. Therefore,pursuant to the provisions of Section 148(f)(4)(C) of the Code, the City shall not be required to comply with the arbitrage rebate requirements of paragraphs (2) and (3) of Section 148(f) of the Code. 6.05. Investment of Money on Deposit in the Bond Fund. The Finance Director shall ascertain monthly the amount on deposit in the Bond Fund. If the amount on deposit therein ever exceeds the aggregate amount of principal and interest due and payable from the Bond Fund through the next following February 1 plus a reasonable carryover as permitted by the Regulations, such excess shall be used to prepay and redeem Bonds or be invested at a yield less than or equal to the yield on the Bonds,based upon their amounts,maturities and interest rates on their date of issue, computed by the actuarial method. The City reserves the right to amend the provisions of this Section at any time, whether prior to or after the delivery of the Bonds, if and to the extent that this Council determines that the provisions of this Section are not necessary in order to ensure that the Bonds are not"arbitrage bonds"within the meaning of Section 148 of the Code and Regulations. -13- 31 6.06. Arbitrage Certification. The Mayor and the 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 a certification in accordance with the provisions of Section 148 of the Code, and the 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. 6.07. 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 2004 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. 6.08. Official Statement. The Official Statement relating to the Bonds, dated April 30, 2004, prepared and distributed on behalf of the City by Ehlers & Associates, Inc., is hereby approved. Ehlers & Associates, Inc., is hereby authorized of behalf of the City to prepare and distribute to the Purchaser a supplement to the Official Statement listing the offering price, the interest rates, other information relating to the Bonds required to be included in the Official Statement by Rule 15c2-12 adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934. Within seven business days from the date hereof, the City shall deliver to the Purchaser 30 copies of the Official Statement and such supplement. 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. 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. Section 7. Continuing_Disclosure (a) Purpose and Beneficiaries. To provide for the public availability of certain information relating to the Bonds and the security therefor and to permit the original purchaser and other participating underwriters in the primary offering of the Bonds to comply with amendments to Rule 15c2-12 promulgated by the Securities and Exchange Commission(the "SEC")under the Securities Exchange Act of 1934 (17 C.F.R. § 240.15c2-12), relating to continuing disclosure(as in effect and interpreted from time to time, the"Rule"),which will enhance the marketability of the Bonds, the City hereby makes the following covenants and agreements for the benefit of the Owners (as hereinafter defined) from time to time of the Outstanding Bonds. The City is the only"obligated person"in respect of the Bonds within the meaning of the Rule for purposes of identifying the entities in respect of which continuing disclosure must be made. If the City fails to comply with any provisions of this Section 7, any person aggrieved thereby, including the Owners of any Outstanding Bonds,may take whatever action at law or in equity may appear necessary or appropriate to enforce performance and observance of -14- 32 any agreement or covenant contained in this Section 7, including an action for a writ of mandamus or specific performance. Direct, indirect, consequential and punitive damages shall not be recoverable for any default hereunder to the extent permitted by law. Notwithstanding anything to the contrary contained herein,in no event shall a default under this Section 7 constitute a default under the Bonds or under any other provision of this resolution. As used in this Section 7, "Owner" or"Bondowner"means, in respect of.a.Bond, the registered owner or owners thereof appearing in the bond register maintained by the Registrar or any`Beneficial Owner"(as hereinafter defined) thereof, if such Beneficial Owner provides to the Registrar evidence of such beneficial ownership in form and substance reasonably satisfactory to the Registrar. As used herein, "Beneficial Owner"means, in respect of a Bond, any person or entity which(i)has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, such Bond (including persons or entities holding Bonds through nominees, depositories or other intermediaries), or (b) is treated as the owner of the Bond for federal income tax purposes. As used herein, "Outstanding" when used as of any particular time with reference to Bonds means all Bonds theretofore, or thereupon being, authenticated and delivered by the Registrar under this Resolution except(i)Bonds theretofore canceled by the Registrar or surrendered to the Registrar for cancellation; (ii) Bonds with respect to which the liability of the City has been discharged in accordance with Section 5 hereof; and (iii)Bonds for the transfer or exchange or in lieu of or in substitution for which other Bonds shall have been authenticated and delivered by the Registrar pursuant to this Resolution. (b) Information To Be Disclosed. The City will provide,.in the manner set forth in subsection(c)hereof, either directly or indirectly through an agent designated by the City, the following information at the following times: (1) on or before 365 days after the end of each fiscal year of the City, commencing with the fiscal year ending December 31, 2004 the following financial information and operating data in respect of the City (the"Disclosure Information"): (A) the audited financial statements of the City for such fiscal year, accompanied by the audit report and opinion of the accountant or government auditor relating thereto, as permitted or required by the laws of the State of Minnesota, containing balance sheets as of the end of such fiscal year and a statement of operations, changes in fund balances and cash flows for the fiscal year then ended, showing in comparative form such figures for the preceding fiscal year of the City,prepared in accordance with generally accepted accounting principles promulgated by the Financial Accounting Standards Board as modified in accordance with the governmental accounting standards promulgated by the Governmental Accounting Standards Board or as otherwise provided under Minnesota law, as in effect from time to time, or, if and to the extent such financial statements have not been prepared in accordance with such generally accepted accounting principles for reasons beyond the reasonable control of the City, noting the discrepancies therefrom and the effect thereof, and certified as to accuracy and completeness in all material respects by the fiscal officer of the City; and -15- I 33 (B) To the extent not included in the financial statements referred to in paragraph(A)hereof, the information for such fiscal year or for the period most recently available of the type set forth below, which information may be unaudited, but is to be certified as to accuracy and completeness in all material respects by the City's financial officer to the best of his or her knowledge, which certification may be based on the reliability of information obtained from governmental or third party sources: • Current Property Valuations • Direct Debt • Tax Levies and Collections • Population Trend • EmploymentlUnemployment Notwithstanding the foregoing paragraph, if the audited financial statements are not available by the date specified, the City shall provide on or before such date unaudited financial statements in the format required for the audited financial statements as part of the Disclosure Information and, within 10 days after the receipt thereof, the City shall provide the audited financial statements. Any or all of the Disclosure Information may be incorporated by reference, if it is updated as required hereby, from other documents, including official statements, which have been submitted to each of the repositories hereinafter referred to under subsection(b) or the SEC. If the document incorporated by reference is a final official statement, it must be available from the Municipal Securities Rulemaking Board. The City shall clearly identify in the Disclosure Information each document so incorporated by reference. If any part of the Disclosure Information can no longer be generated because the operations of the City have materially changed or been discontinued, such Disclosure Information need no longer be provided if the City includes in the Disclosure Information a statement to such effect; provided, however, if such operations have been replaced by other City operations in respect of which data is not included in the Disclosure Information and the City determines that certain specified data regarding such replacement operations would be a Material Fact(as defined in paragraph(2)hereof), then, from and after such determination, the Disclosure Information shall include such additional specified data regarding the replacement operations. If the Disclosure Information is changed or this Section 7 is amended as permitted by this paragraph(b)(1) or subsection (d), then the City shall include in the next Disclosure Information to be delivered hereunder, to the extent necessary, an explanation of the reasons for the amendment and the effect of any -16- 34 change in the type of financial information or operating data provided. (2) In a timely manner, notice of the occurrence of any of the following events which is a Material Fact (as hereinafter defined): (A) Principal and interest payment delinquencies; (B) Non-payment related defaults; (C) Unscheduled draws on debt service reserves reflecting financial difficulties; (D) Unscheduled draws on credit enhancements reflecting financial difficulties; (E) Substitution of credit or liquidity providers, or their failure to perform; (F) Adverse tax opinions or events affecting the tax-exempt status of the security; (G) Modifications to rights of security holders; (H) Bond calls; (I) Defeasances; (J) Release, substitution, or sale of property securing repayment of the securities; and (K) Rating changes. As used herein, a"Material Fact" is a fact as to which a substantial likelihood exists that a reasonably prudent investor would attach importance thereto in deciding to buy,hold or sell a Bond or, if not disclosed, would significantly alter the total information otherwise available to an investor from the Official Statement, information disclosed hereunder or information generally available to the public. Notwithstanding the foregoing sentence, a"Material Fact"is also an event that would be deemed"material" for purposes of the purchase,holding or sale of a Bond within the meaning of applicable federal securities laws, as interpreted at the time of discovery of the occurrence of the event. (3) In a timely manner, notice of the occurrence of any of the following events or conditions: (A) the failure of the City to provide the Disclosure Information required under paragraph (b)(1) at the time specified thereunder; (B) the amendment or supplementing of this Section 7 pursuant to subsection(d), together with a copy of such amendment or supplement and any explanation provided by the City under subsection(d)(2); (C) the termination of the obligations of the City under this Section 7 pursuant to subsection(d); (D) any change in the accounting principles pursuant to which the financial statements constituting a portion of the Disclosure Information are prepared; and -17- 35 (E) any change in the fiscal year of the City. (c) Manner of Disclosure. The City agrees to make available the information described in subsection(b)to the following entities by telecopy, overnight delivery, mail or other means, as appropriate: (1) the information described in paragraph(1) of subsection(b), to each then nationally recognized municipal securities information repository under the Rule and to any state information depository then designated or operated by the State of Minnesota as contemplated by the Rule(the"State Depository"), if any; (2) the information described in paragraphs (2) and (3) of subsection(b), to the Municipal Securities Rulemaking Board and to the State Depository, if any; and (3) the information described in subsection(b), to any rating agency then maintaining a rating of the Bonds and, at the expense of such Bondowner, to any Bondowner who requests in writing such information, at the time of transmission under paragraphs (1) or(2) of this subsection(c), as the case may be, or, if such information is transmitted with a subsequent time of release, at the time such information is to be released. (d) Term; Amendments; Interpretation. (1) The covenants of the City in this Section 7 shall remain in effect so long as any Bonds are Outstanding. Notwithstanding the preceding sentence, however, the obligations of the City under this Section 7 shall terminate and be without further effect as of any date on which the City delivers to the Registrar an opinion of Bond Counsel to the effect that,because of legislative action or final judicial or administrative actions or proceedings,the failure of the City to comply with the requirements of this Section 7 will not cause participating underwriters in the primary offering of the Bonds to be in violation of the Rule or other applicable requirements of the Securities Exchange Act of 1934, as amended, or any statutes or laws successory thereto or amendatory thereof. (2) This Section 7 (and the form and requirements of the Disclosure Information)may be amended or supplemented by the City from time to time, without notice to (except as provided in paragraph(c)(3)hereof) or the consent of the Owners of any Bonds,by a resolution of the City Council filed in the office of the City Clerk of the City accompanied by an opinion of Bond Counsel, who may rely on certificates of the City and others and the opinion may be subject to customary qualifications, to the effect that: (i) such amendment or supplement(a) is made in connection with a change in circumstances that arises from a change in law or regulation or a change in the identity,nature or status of the City or the type of operations conducted by the City, or(b) is required by, or better complies with, the provisions of paragraph(b)(5) of the Rule; (ii) this Section 7 as so amended or supplemented would have complied with the requirements of paragraph(b)(5) of the Rule at the time of the primary offering of the Bonds, giving effect to any change in circumstances applicable under clause(i)(a) and assuming that the Rule as in effect and interpreted at the time of the amendment or supplement was in effect at the time of the -18- 36 primary offering; and (iii) such amendment or supplement does not materially impair the interests of the Bondowners under the Rule. If the Disclosure Information is so amended, the City agrees to provide, contemporaneously with the effectiveness of such amendment, an explanation of the reasons for the amendment and the effect, if any, of the change in the.type of financial information or operating data being provided hereunder. (3) This Section 7 is entered into to comply with the continuing disclosure provisions of the Rule and should be construed so as to satisfy the requirements of paragraph(b)(5) of the Rule. Section 8. Authorization of Payment of Certain Costs of Issuance of the Bonds. The City authorizes the Purchaser to forward the amount of Bond proceeds allocable to the payment of issuance expenses to Resource Bank &Trust Company, Minneapolis, Minnesota, on the closing date for further distribution as directed by the City's financial advisor, Ehlers & Associates, Inc. Mayor Attest: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by Councilmember , 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 which signature was attested by the City Clerk. -19- 37 COUNTY AUDITOR'S CERTIFICATE AS TO REGISTRATION OF BONDS AND TAX LEVY CITY OF ST. ANTHONY, MINNESOTA I, the undersigned,being the duly qualified and acting County Auditor of Hennepin County, Minnesota,hereby certify that there has been filed in my office a certified copy of a resolution of the City Council of the City of St. Anthony, in said County, adopted May 11, 2004, awarding the sale, fixing the form and details and providing,for the execution, delivery and security of$2,075,000 General Obligation Temporary Improvement Bonds, Series 2004B, of the City, to be dated, as of June 1, 2004 and levying taxes for the payment of principal of and interest on said Bonds. I further certify that said Bonds have been entered on my bond register and the tax required by law for payment of the Bonds has been levied and filed, as required by Minnesota Statutes, Sections 475.61 to 475.63. WITNESS my hand and official seal this day of 12004. Hennepin County Auditor (SEAL) 38 COUNTY AUDITOR'S CERTIFICATE AS TO REGISTRATION OF BONDS AND TAX LEVY CITY OF ST. ANTHONY, MINNESOTA I,the undersigned, being the duly qualified and acting County Auditor of Ramsey County,Minnesota, hereby certify that there has been filed in my office a certified copy of a resolution of the City Council of the City of St. Anthony, in said County, adopted May 11,2004, awarding the sale, fixing the form and details and providing for the execution, delivery and security of$2,075,000 General Obligation Temporary Improvement Bonds, Series 2004B, of the City, to be dated, as of June 1, 2004 and levying taxes for the payment of principal of and interest on said Bonds. I further certify that said Bonds have been entered on my bond register and the tax required by law for payment of the Bonds has been levied and filed, as required by Minnesota Statutes, Sections 475.61 to 475.63. WITNESS my hand and official seal this day of 12004. Ramsey County Auditor (SEAL) 4813-1901-5936\1 5/5/2004 4:08 PM 39 Councilmember then introduced the following resolution and moved its adoption: RESOLUTION 04-040 RESOLUTION RELATING TO $1,790,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2004A; AWARDING THE SALE, FIXING THE FORM AND DETAILS AND PROVIDING FOR THE EXECUTION AND DELIVERY THEREOF AND SECURITY THEREFOR AND LEVYING AD VALOREM TAXES FOR THE PAYMENT THEREOF BE IT RESOLVED by the City Council of the City of St. Anthony, Minnesota (the"City"), as follows: Section 1. Recitals. Authorization and Sale of Bonds. 1.01. Authorization. This Council has heretofore ordered the an improvement project to be constructed within the City under and pursuant to Minnesota Statutes, Chapter 429, consisting of various street improvements (collectively the"Improvements"). The present estimated total cost of the Improvements is as follows: Project Costs......................................................... $1,703,449 Issuance Expenses ................................................ 19,000 Capitalized Interest............................................... 51,071 Discount Allowance ............................................. 21.480 Total................................................................ $1,790,000 This Council hereby determines to issue and sell $1,790,000 principal amount of General Obligation Improvement Bonds, Series 2004A, of the City(the"Bonds")to defray a portion of the expense incurred and estimated to be incurred by the City in making the Improvements, including every item of cost of the kinds authorized in Minnesota Statutes, Section 475.65, and $21,480 representing interest as provided in Minnesota Statutes, Section 475.56. The City has retained Ehlers &Associates, Inc. to act as financial advisor to the City in connection with the issuance and sale of the Bonds, and it is hereby determined to sell the Bonds without meeting the requirements as to public sale under Minnesota Statutes, Section 475.60, subdivision 1,pursuant to the exception from such requirement contained in clause(9) of Minnesota Statutes, Section 475.60, subdivision 2. 1.02. Sale of Bonds. The City has received proposals for the purchase of the Bonds. The most favorable proposal received is that of , of , (the"Purchaser"), to purchase the Bonds at a price of$ , the Bonds to bear interest at the rates set forth in Section 3.01 hereof and to be subject to the further terms and conditions set forth in this Resolution. The proposal is hereby accepted, and 4® the Mayor and the City Manager are hereby authorized and directed to execute a contract on the part of the City for the sale of the Bonds with the Purchaser. The good faith checks of the unsuccessful bidders shall be returned forthwith. 1.03. Performance of Requirements. All acts, conditions and things which are required by the Constitution and laws of the State of Minnesota to be done, to exist,to happen and to be performed precedent to and in the valid issuance of the Bonds having been done, existing, having happened and having been performed, it is now necessary for this Council to establish the form and terms of the Bonds, to provide security therefor and to issue the Bonds forthwith. 1.04. Maturities of Bonds. The Council hereby finds that the maturities of the Bonds as set forth in Section 3.01 hereof are warranted by the anticipated collections of special assessments and ad valorem taxes levied and to be levied for the payment of the Bonds as provided in Section 4 hereof. Section 2. Form of Bonds. The Bonds shall be prepared in substantially the following form: UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTIES OF HENNEPIN AND RAMSEY CITY OF ST. ANTHONY GENERAL OBLIGATION IMPROVEMENT BOND, SERIES 2004A No. R- $ Date of Interest Rate Maturity Original Issue CUSIP June 1, 2004 REGISTERED OWNER: CEDE & CO. PRINCIPAL AMOUNT: DOLLARS THE CITY OF ST. ANTHONY, Hennepin and Ramsey Counties, Minnesota(the "City"), acknowledges itself to be indebted and, for value received,hereby promises to pay to the registered owner named above, or registered assigns, the principal amount specified above, on the maturity date specified above, with interest thereon from the date of original issue specified above, or from the most recent interest payment date to which interest has been paid or duly provided for, at the annual rate specified above. Interest hereon is payable on February 1 and August 1 in each year, commencing February 1, 2005, to the person in whose name this Bond is registered at the close of business on the 15th day(whether or not a business day) of the immediately preceding month, all subject to the provisions referred to herein with respect to the -2- 41 redemption of the principal of this Bond before maturity. The interest hereon and, upon presentation and surrender hereof, the principal hereof, are payable in lawful money of the United States of America by check or draft of Wells Fargo Bank,National Association, in Minneapolis, Minnesota, as Bond Registrar, Transfer Agent and Paying Agent (the"Bond Registrar"), or its successor designated under the Resolution described herein. This Bond is one of an issue in the aggregate principal amount of$1,790;000 (the "Bonds"), issued pursuant to a resolution adopted by the City Council on May 11, 2004 (the "Resolution"), for the purpose of financing a portion of the costs of various street improvements in the City (the"Improvements"), and is issued pursuant to and in full conformity with the provisions of the Constitution and laws of the State of Minnesota thereunto enabling,including Minnesota Statutes, Chapters 429 and 475. The Bonds are payable primarily from the 2004A Improvement Bond Fund (the"Fund") of the City. In addition, for the full and prompt payment of the principal and interest on the Bonds as the same become due, the full faith, credit and taxing power of the City have been and are hereby irrevocably pledged. The Bonds are issuable only as fully registered bonds in denominations of$5,000 or any multiple thereof, of single maturities. Bonds maturing in the years 2006 through 2012 are payable on their respective stated maturity dates without option of prior payment,but Bonds having stated maturity dates in 2013 and later years are each subject to redemption and prepayment, at the option of the City and in whole or in part, and if in part, in the maturities selected by the City and, within a maturity, in $5,000 principal amounts selected by lot, on February 1, 2012 and on any date thereafter, at a price equal to the principal amount thereof to be redeemed plus accrued interest to the date of redemption. [INSERT REDEMPTION PROVISIONS FOR ANY TERM BONDS.] At least thirty days prior to the date set for redemption of any Bond,notice of the call for redemption will be mailed to the Bond Registrar and to the registered owner of each Bond to be redeemed at his address appearing in the Bond Register, but no defect in or failure to give such mailed notice of redemption shall affect the validity of the proceedings for the redemption of any Bond not affected by such defect or failure. Official notice of redemption having been given as aforesaid, the Bonds or portions of the Bonds so to be redeemed shall, on the redemption date,become due and payable at the redemption price herein specified and from and after such date (unless the City shall default in the payment of the redemption price) such Bond or portions of Bonds shall cease to bear interest. Upon the partial redemption of any Bond, a new Bond or Bonds will be delivered to the registered owner without charge, representing the remaining principal amount outstanding. The Bonds have been designated by the City as "qualified tax-exempt obligations"pursuant to Section 265(b) of the Internal Revenue Code of 1986, as amended. As provided in the Resolution and subject to certain limitations set forth therein, this Bond is transferable upon the books of the City at the principal office of the Bond Registrar, by the registered owner hereof in person or by his attorney duly authorized in writing upon -3- 42 surrender hereof together with a written instrument of transfer satisfactory to the Bond Registrar, duly executed by the registered owner or his attorney; and may also be surrendered in exchange for Bonds of other authorized denominations. Upon such transfer or exchange, the City will cause a new Bond or Bonds to be issued in the name of the transferee or registered owner, of the same aggregate principal amount, bearing interest at the same rate and maturing on the same date, subject to reimbursement for any tax, fee or governmental charge required to be paid with respect to such transfer or exchange. The City and the Bond Registrar may deem and treat the person in whose name this Bond is registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose of receiving payment and for all other purposes, and neither the City nor the Bond Registrar shall be affected by any notice to the contrary. IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts, conditions and things required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be performed precedent to and in the issuance of this Bond in order to make this Bond a valid and binding general obligation of the City according to its terms, have been done, do exist,have happened and have been performed in regular and due form as so required; that prior to the issuance hereof the City has levied or agreed to levy special assessments on property specially benefited by the Improvements and ad valorem taxes on all taxable property in the City, collectible in the years and amounts required to produce sums not less than 5% in excess of the principal of and interest on the Bonds as such principal and interest respectively become due, and has appropriated the same to the Fund in the manner specified in Minnesota Statutes, Section 429.091, Subdivision 4; that, to take care of any accumulated or anticipated deficiency in the Fund, additional ad valorem taxes are required by law to be levied upon all taxable property in the City without limitation as to rate or amount; and that the issuance of this Bond does not cause the indebtedness of the City to exceed any constitutional or statutory limitation. This Bond shall not be valid or become obligatory for any purpose or be entitled to any security or benefit under the Resolution until the Certificate of Authentication hereon shall have been executed by the Bond Registrar by the manual signature of a person authorized to sign on its behalf. IN WITNESS WHEREOF, the City of St. Anthony, Hennepin and Ramsey Counties, Minnesota, by its City Council, has caused this Bond to be executed by the signatures of the Mayor and the City Manager and has caused this Bond to be dated as of the date set forth below. CITY OF ST. ANTHONY City Manager Mayor -4- 43 CERTIFICATE OF AUTHENTICATION This is one of the Bonds delivered pursuant to the Resolution mentioned within. Date of Authentication: WELLS FARGO BANK,NATIONAL ASSOCIATION, Minneapolis, Minnesota, as Bond Registrar B y Authorized Representative The following abbreviations, when used in the inscription on the face of this Bond, shall be construed as though they were written out in full according to applicable laws or regulations: TEN COM——as tenants UNIF TRANS MIN ACT. . . . . . . Custodian. . . . . . . . in common (Cust) (Minor) TEN ENT——as tenants by the entireties under Uniform Transfers to Minors Act. . . . . . . . . . . . . . . . . . . . . . JT TEN—— as joint tenants (State) with right of survivorship and not as tenants in common Additional abbreviations may also be used. ASSIGNMENT FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto the within Bond and all rights thereunder, and hereby irrevocably constitutes and appoints attorney to transfer the within Bond on the books kept for registration thereof, with full power of substitution in the premises. -5- 44 Dated: PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER NOTICE: The signature(s)to this OF ASSIGNEE: assignment must correspond with the name as it appears upon the face of the within Bond in every particular, without alteration, enlargement or any change whatsoever. Signature(s)must be guaranteed by an "eligible guarantor institution"meeting the requirements of the Bond Registrar, which requirements include membership or participation in the Securities Transfer Association Medalion Program (STAMP) or such other"signature guaranty program" as may be determined by the Bond Registrar in addition to or in substitution for STAMP, all in accordance with the Securities Exchange Act of 1934, as amended. [End of Bond Form.] Section 3. Bond Terms, Execution and Delivery. 3.01. Maturities, Interest Rates Denominations Payment Dating of Bonds. The City shall forthwith issue and deliver the Bonds, which shall be denominated "General Obligation Improvement Bonds, Series 2004A" and shall be payable primarily from the 2004 General Obligation Improvement Bond Fund of the City created in Section 4.02. The Bonds shall be dated as of June 1, 2004, shall be issuable in the denominations of$5,000 or any integral multiple thereof, shall mature on February 1 in the years and amounts set forth below, and Bonds maturing in such years and amounts shall bear interest, computed on the basis of a 360-day year consisting of twelve 30-day months, from June 1, 2004 until paid or duly called for redemption at the rates per annum set forth opposite such years and amounts,respectively: -6- 45 Year Amount Rate Year Amount Rate 2006 $105,000 % 2014 $120,000 % 2007 105,000 2015 125,000 2008 105,000 2016 125,000 2009 105,000 2017 130,000 2010 110,000 2018 135,000 2011 110,000 2019 140,000 2012 115,000 2020 145,000 2013 115,000 The Bonds shall be issuable only in fully registered form, of single maturities. The interest thereon and,upon surrender of each Bond at the principal office of the Registrar described herein,the principal amount thereof, shall be payable by check or draft issued by the Registrar. Each Bond shall be dated by the Registrar as of the date of its authentication. 3.02. Interest Payment Dates. Interest on the Bonds shall be payable on February 1 and August 1 in each year, commencing February 1, 2005,to the owners thereof as such appear of record in the bond register as of the close of business on the fifteenth day of the immediately preceding month, whether or not such day is a business day. 3.03. Registration. The City shall appoint, and shall maintain, a bond registrar, transfer agent and paying agent (the "Registrar"). The effect of registration and the rights and duties of the City and the Registrar with respect thereto shall be as follows: (a) Re 'ster. The Registrar shall keep at its principal office a bond register in which the Registrar shall provide for the registration of ownership of Bonds and the registration of transfers and exchanges of Bonds entitled to be registered, transferred or exchanged. (b) Transfer of Bonds. Upon surrender to the Registrar for transfer of any Bond duly endorsed by the registered owner thereof or accompanied by a written instrument of transfer, in form satisfactory to the Registrar, duly executed by the registered owner thereof or by an attorney duly authorized by the registered owner in writing, the Registrar shall authenticate and deliver, in the name of the designated transferee or transferees, one or more new Bonds of a like aggregate principal amount and maturity, as requested by the transferor. The Registrar may, however, close the books for registration of any transfer after the fifteenth day of the month preceding each interest payment date and until such interest payment date. (c) Exchange of Bonds. Whenever any Bond is surrendered by the registered owner for exchange,the Registrar shall authenticate and deliver one or more new Bonds of a like aggregate principal amount, interest rate and maturity, as requested by the registered owner or the owner's attorney duly authorized in writing. -7- 46 (d) Cancellation. All Bonds surrendered upon any transfer or exchange shall be promptly cancelled by the Registrar and thereafter disposed of as directed by the City. (e) Improper or Unauthorized Transfer. When any Bond is presented to the Registrar for transfer, the Registrar may refuse to transfer the same until it is satisfied that the endorsement on such Bond or separate instrument of transfer is valid and genuine and that the requested transfer is legally authorized. The Registrar shall incur no liability for its refusal, in good faith, to make transfers which it, in its judgment, deems improper or unauthorized. (f) Persons Deemed Owners. The City and the Registrar may treat the person in whose name any Bond is at any time registered in the bond register as the absolute owner of such Bond, whether such Bond shall be overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on such Bond and for all other purposes, and all such payments so made to any such registered owner or upon the owner's order shall be valid and effectual to satisfy and discharge the liability of the City upon such Bond to the extent of the sum or sums so paid. (g) Taxes, Fees and Charges. For every transfer or exchange of Bonds (except for an exchange upon a partial redemption of a Bond), the Registrar may impose a charge upon the owner thereof sufficient to reimburse the Registrar for any tax, fee or other governmental charge required to be paid with respect to such transfer or exchange. (h) Mutilated, Lost, Stolen or Destroyed Bonds. In case any Bond shall become mutilated or be lost, stolen or destroyed, the Registrar shall deliver a new Bond of like amount, number, interest rate,maturity date and tenor in exchange and substitution for and upon cancellation of any such mutilated Bond or in lieu of and in substitution for any such Bond lost, stolen or destroyed,upon the payment of the reasonable expenses and charges of the Registrar in connection therewith; and, in the case of a Bond lost, stolen or destroyed,upon receipt by the Registrar of evidence satisfactory to it that such Bond was lost, stolen or destroyed, and of the ownership thereof, and upon receipt by the Registrar of an appropriate bond or indemnity in form, substance and amount satisfactory to it, in which both the City and the Registrar shall be named as obligees. All Bonds so surrendered to the Registrar shall be cancelled by it and evidence of such cancellation shall be given to the'City. If the mutilated, lost, stolen or destroyed Bond has already matured or been called for redemption in accordance with its terms, it shall not be necessary to issue a new Bond prior to payment. (i) Authenticating Agent. The Registrar is hereby designated authenticating agent for the Bonds, within the meaning of Minnesota Statutes, Section 475.55, Subdivision 1. 3.04. Appointment of Initial R Imo. The City hereby appoints Wells Fargo Bank,National Association in Minneapolis, Minnesota, as the initial Registrar. The Mayor and City Manager are authorized to execute and deliver, on behalf of the City, a contract with Wells Fargo Bank,National Association, as Registrar. Upon merger or consolidation of the Registrar -8- with another corporation, if the resulting corporation is a bank or trust company authorized by law to conduct such business, such corporation shall be authorized to act as successor Registrar. The City agrees to pay the reasonable and customary charges of the Registrar for the services performed. The City reserves the right to remove any Registrar upon thirty(30) days' notice and upon the appointment of a successor Registrar, in which event the predecessor Registrar shall deliver all cash and Bonds in its possession to the successor Registrar. On or before each principal or interest due date, without further order of this Council, the Finance Director shall transmit to the Registrar from the 2004A Improvement Bond Fund described in Section 4 hereof, moneys sufficient for the payment of all principal and interest then due. 3.05. Redemption. (a) Bonds maturing in the years 2006 through 2012 are payable on their respective stated maturity dates without option of prior payment,but Bonds maturing in 2013 and later years are each subject to redemption, at the option of the City and in whole or in part, and if in part, in the maturities selected by the City and,within any maturity, in $5,000 principal amounts selected by the Registrar by lot, on February 1, 2012 and on any date thereafter, at a redemption price equal to the principal amount thereof to be redeemed plus accrued interest to the date of redemption. [(b) Bonds maturing in the year shall be subject to mandatory sinking fund redemption by lot at a redemption price equal to the principal amount of the Bonds to be so redeemed plus interest accrued thereon to the date fixed for redemption, on February 1, in the years and principal amounts set forth below: Year Amount *Final Maturity In the event that any Bonds maturing in the year are redeemed pursuant to (a) above by the City and canceled by the Registrar and not reissued, the Bonds maturing in the year so redeemed and canceled may be applied by the City as a credit against the Bonds to be redeemed pursuant to this subsection (b), such credit to be equal to the principal amount of the Bonds maturing in the year so redeemed or canceled provided that the City has notified the Register not less than thirty-five(35) days prior to the redemption date of its election to apply such Bonds as a credit. (c) Bonds maturing in the year shall be subject to mandatory sinking fund redemption by lot at a redemption price equal to the principal amount of the Bonds to be so redeemed plus interest accrued thereon to the date fixed for redemption, on February 1, in the years and principal amounts set forth below: -9- 48 Year Amount *Final Maturity In the event that any Bonds maturing in the year are redeemed pursuant to (a) above by the City and canceled by the Registrar and not reissued, the Bonds maturing in the year so redeemed and canceled may be applied by the City as a credit against the Bonds to be redeemed pursuant to this subsection (c), such credit to be equal to the principal amount of the Bonds maturing in the year so redeemed or canceled provided that the City has notified the Register not less than thirty-five (35) days prior to the redemption date of its election to apply such Bonds as a credit.] (d) At least thirty days prior to the date set for redemption of any Bond, the City shall cause notice of the call for redemption to be mailed to the Registrar and to the registered owner of each Bond to be redeemed, but no defect in or failure to give such mailed notice of redemption shall affect the validity of proceedings for the redemption of any Bond not affected by such defect or failure. The notice of redemption shall specify the redemption date, redemption price, the numbers, interest rates and CUSIP numbers of the Bonds to be redeemed and the place at which the Bonds are to be surrendered for payment, which is the principal office of the Registrar. Official notice of redemption having been given as aforesaid,the Bonds or portions thereof so to be redeemed shall, on the redemption date,become due and payable at the redemption price therein specified and from and after such date (unless the City shall default in the payment of the redemption price) such Bonds or portions thereof shall cease to bear interest. Bonds in a denomination larger than$5,000 may be redeemed in part in any integral multiple of$5,000. The owner of any Bond redeemed in part shall receive without charge,upon surrender of such Bond to the Registrar, one or more new Bonds in authorized denominations equal in principal amount to be unredeemed portion of the Bond so surrendered. 3.06. Preparation and Delivery. The Bonds shall be prepared under the direction of the City Manager and shall be executed on behalf of the City by the signatures of the Mayor and the City Manager; provided that said signatures may be printed, engraved, or lithographed facsimiles thereof. In case any officer whose signature, or a facsimile of whose signature, shall appear on the Bonds shall cease to be such officer before the delivery of any Bond, such signature or facsimile shall nevertheless be valid and sufficient for all purposes, the same as if such officer had remained in office until delivery. Notwithstanding such execution, no Bond shall be valid or obligatory for any purpose or entitled to any security or benefit under this Resolution unless and until a certificate of authentication on such Bond has been duly executed by the manual signature of an authorized representative of the Registrar. Certificates of authentication on different Bonds need not be signed by the same representative. The executed certificate of authentication on each Bond shall be conclusive evidence that it has been -10- 49 authenticated and delivered under this Resolution. When the Bonds have been so executed and authenticated, they shall be delivered by the City Manager to the Purchaser upon payment of the purchase price in accordance with the contract of sale heretofore made and executed, and the Purchaser shall not be obligated to see to the application of the purchase price. 3.07. Securities Depository. (a) For purposes of this Section the following terms shall have the following meanings: "Beneficial Owner" shall mean,whenever used with respect to a Bond, the person in whose name such Bond is recorded as the beneficial owner of such Bond by a Participant on the records of such Participant, or such person's subrogee. "Cede&.Co." shall mean Cede & Co., the nominee of DTC, and any successor nominee of DTC with respect to the Bonds. "DTC" shall mean The Depository Trust Company of New York, New York. "Participant" shall mean any broker-dealer,bank or other financial institution for which DTC holds Bonds as securities depository. "Representation Letter"shall mean the Representation Letter from the City to DTC with respect to the procedures of DTC presently on file with DTC. (b) The Bonds shall be initially issued as separately authenticated fully registered bonds, and one Bond shall be issued in the principal amount of each stated maturity of the Bonds. Upon initial issuance, the ownership of such Bonds shall be registered in the bond register in the name of Cede & Co., as nominee of DTC. The Registrar and the City may treat DTC (or its nominee) as the sole and exclusive owner of the Bonds registered in its name for the purposes of payment of the principal of or interest on the Bonds, selecting the Bonds or portions thereof to be redeemed, if any, giving any notice permitted or required to be given to registered owners of Bonds under this resolution, registering the transfer of Bonds, and for all other purposes whatsoever; and neither the Registrar nor the City shall be affected by any notice to the contrary. Neither the Registrar nor the City shall have any responsibility or obligation to any Participant, any person claiming a beneficial ownership interest in the Bonds under or through DTC or any Participant, or any other person which is not shown on the bond register as being a registered owner of any Bonds, with respect to the accuracy of any records maintained by DTC or any Participant, with respect to the payment by DTC or any Participant of any amount with respect to the principal of or interest on the Bonds,with respect to any notice which is permitted or required to be given to owners of Bonds under this resolution, with respect to the selection by DTC or any Participant of any person to receive payment in the event of a partial redemption of the Bonds, or with respect to any consent given or other action taken by DTC as registered owner of the Bonds. So long as any Bond is registered in the name of Cede & Co., as nominee of DTC, the Registrar shall pay all principal of and interest on such Bond, and shall give all notices with respect to such Bond, only to Cede & Co. in accordance with the Representation Letter, and all such payments shall be valid and effective to fully satisfy and discharge the City's obligations with respect to the principal of and interest on the Bonds to the extent of the sum or sums so -11- 5® paid. No person other than DTC shall receive an authenticated Bond for each separate stated maturity evidencing the obligation of the City to make payments of principal and interest. Upon delivery by DTC to the Registrar of written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., the Bonds will be transferable to such new nominee in accordance with paragraph(d) hereof. (c) In the event the City determines that it is in the best interest of the Beneficial Owners that they be able to obtain Bonds in the form of bond certificates,the City may notify DTC and the Registrar, whereupon DTC shall notify the Participants of the availability through DTC of Bonds in the form of certificates. In such event, the Bonds will be transferable in accordance with paragraph(d)hereof. DTC may determine to discontinue providing its services with respect to the Bonds at any time by giving notice to the City and the Registrar and discharging its responsibilities with respect thereto under applicable law. In such event the Bonds will be transferable in accordance with paragraph(d)hereof. (d) In the event that any transfer or exchange of Bonds is permitted under paragraph (b) or(c)hereof, such transfer or exchange shall be accomplished upon receipt by the Registrar of the Bonds to be transferred or exchanged and appropriate instruments of transfer to the permitted transferee in accordance with the provisions of this resolution. In the event Bonds in the form of certificates are issued to owners other than Cede& Co., its successor as nominee for DTC as owner of all the Bonds, or another securities depository as owner of all the Bonds, the provisions of this resolution shall also apply to all matters relating thereto, including, without limitation, the printing of such Bonds in the form of bond certificates and the method of payment of principal of and interest on such Bonds in the form of bond certificates. Section 4. Security Provisions. 4.01. 2004A Improvement Construction Fund. There is hereby created a special bookkeeping fund to be designated as the"2004A Improvement Construction Fund" (the "Construction Fund"), to be held and administered by the Finance Director separate and apart from all other funds of the City. The City appropriates to the Construction Fund (a) $ of the proceeds of the sale of the Bonds, and(b) all collections of special assessments levied for the Improvements until completion and payment of all costs of the Improvements. The Construction Fund shall be used solely to defray expenses of the Improvements, including but not limited to the transfer to the Bond Fund, created in Section 4.02 hereof, of amounts sufficient for the payment of interest and principal, if any, due upon the Bonds prior to the completion and payment of all costs of the Improvements and the payment of the expenses incurred by the City in connection with the issuance of the Bonds. Upon completion and payment of all costs of the Improvements, any balance of the proceeds of Bonds remaining in the Construction Fund may be used to pay the cost, in whole or in part, of any other improvements instituted pursuant to the Act, as directed by the City Council,but any balance of such proceeds not so used shall be credited and paid to the Bond Fund. 4.02. 2004A Improvement Bond Fund. So long as any of the Bonds are outstanding and any principal of or interest thereon unpaid, the Finance Director shall maintain a separate and special bookkeeping fund designated"2004A Improvement Bond Fund"(the"Bond -12- 51 Fund") to be used for no purpose other than the payment of the principal of and interest on the Bonds and on such other improvement bonds of the City as have been or may be directed to be paid therefrom. The City irrevocably appropriates to the Bond Fund (a) all amounts in excess of $1,768,520 received from the Purchaser, plus capitalized interest in the amount of$51,071, (b) the collections of special assessments and other fiends to be credited and paid thereto in accordance with the provisions of Section 4.01, (c) any taxes levied in accordance with this resolution, and(d) all such other moneys as shall be received and appropriated to the Bond Fund from time to time. If the balance in the Bond Fund is at any time insufficient to pay all interest and principal then due on all bonds payable therefrom, the payment shall be made from any fund of the City which is available for that purpose, subject to reimbursement from the Bond Fund when the balance therein is sufficient, and the Council covenants and agrees that it will each year levy a sufficient amount to take care of any accumulated or anticipated deficiency, which levy is not subject to any constitutional or statutory tax limitation. There are hereby established two accounts in the Bond Fund, designated as the "Debt Service Account" and the"Surplus Account." All money appropriated or to be deposited in the Bond Fund shall be deposited as received into the Debt Service Account. On each February 1, the Finance Director shall determine the amount on hand in the Debt Service Account. If such amount is in excess of one-twelfth of the debt service payable from the Bond Fund in the immediately preceding 12 months, the Finance Director shall promptly transfer the amount in excess to the Surplus Account. The City appropriates to the Surplus Account any amounts to be transferred thereto from the Debt Service Account as herein provided and all income derived from the investment of amounts on hand in the Surplus Account. If at any time the amount on hand in the Debt Service Account is insufficient to meet the requirements of the Bond Fund,the Finance Director shall transfer to the Debt Service Account amounts on hand in the Surplus Account to the extent necessary to cure such deficiency. 4.03. Additional Bonds. The City reserves the right to issue additional bonds payable from the Bond Fund as may be required to finance costs of the Improvements not financed hereby; provided that the City Council shall, prior to the delivery of such additional bonds,levy or agree to levy by resolution sufficient additional special assessments and ad valorem taxes, if any, which, together with other moneys or revenues pledged for the payment of said additional obligations, will produce revenues at least five percent(5%) in excess of the amount needed to pay when due the principal and interest on all bonds payable from the Bond Fund. The additional special assessments, ad valorem taxes and moneys or revenues so pledged, levied or agreed to be levied shall be irrevocably appropriated to the Bond Fund in the manner provided by Minnesota Statutes, Section 475.61. 4.04. Levy of Special Assessments. The City hereby covenants and agrees that for payment of the cost of each of the Improvements it will do and perform all acts and things necessary for the full and valid levy of special assessments against all assessable lots, tracts and parcels of land benefited thereby and located within the area proposed to be assessed therefor, based upon the benefits received by each such lot, tract or parcel, in an aggregate principal amount not less than twenty percent (20%) of the cost of the Improvements. In the event that any such assessment shall be at any time held invalid with respect to any lot, piece or parcel of land, due to any error, defect or irregularity in any action or proceeding taken or to be taken by -13- 52 the City or this Council or any of the City's officers or employees, either in the making of such assessment or in the performance of any condition precedent thereto, the City and this Council hereby covenant and agree that they will forthwith do all such further acts and take all such further proceedings as may be required by law to make such assessments a valid and binding lien upon such property. The Council presently estimates that the special assessments shall be in the aggregate principal amount of$ payable in not more than installments, the first installment to be collectible with taxes during the year 2004, and that deferred installments shall bear interest at the rate of not less than percent L %)per annum from the date of the resolution levying said assessment until December 31 of the year in which the installment is payable. 4.05. Ad Valorem Taxes. The full faith and credit and taxing powers of the City are irrevocably pledged for the prompt and full payment of the principal of and interest in the Bonds as the same become respectively due. For the purpose there is hereby levied upon all of the taxable property of the City a direct,.annual ad valorem tax, which shall be spread upon the tax rolls prepared in each of the following years and collected with other taxes in the following years and amounts as follows: Levy Collection Year Year Amount 2004 2005 $ 2005 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 2011 2011 2012 2012 2013 2013 2014 2014 2015 2015. 2016 2016 2017 2017 2018 2018 2019 The foregoing tax levies together with special assessments are such that if collected in full they will produce at least five percent (5%) in excess of the amount needed to pay when due the principal of and interest on the Bonds. This tax shall be irrevocably appropriated to the Bond Fund as long as any of the Bonds are outstanding and unpaid; provided that the City reserves the right and power to reduce the levies in the manner and to the extent permitted by Minnesota Statutes, Section 475.61. 4.06. Full Faith and Credit Pledged. The full faith and credit of the City are irrevocably pledged for the prompt and full payment of the principal of and the interest on the -14- 53 Bonds, and the Bonds shall be payable from the Bond Fund in accordance with the provisions and covenants contained in this resolution. It is estimated that the special assessments and ad valorem taxes levied and to be levied for the payment of the Improvements will be collected in amounts not less than five percent (5%) in excess of the annual principal and interest requirements of the Bonds. If the money on hand in the Bond Fund should at any time be insufficient for the payment of principal and interest then due, this City shall pay the principal and interest out of any fund of the City, and such other fund or funds shall be reimbursed therefor when sufficient money is available to the Bond Fund. If on October 1 in any year the sum of the balance in the Bond Fund plus the amount of taxes and special assessments theretofore levied for the Improvements and collectible through the end of the following calendar year is not sufficient to pay when due all principal and interest become due on all Bonds payable therefrom in said following calendar year, or the Bond Fund has incurred a deficiency in the manner provided in this Section 4.06, a direct, irrepealable, ad valorem tax shall be levied on all taxable property within the corporate limits of the City for the purpose of restoring such accumulated or anticipated deficiency in accordance with the provisions of this resolution. Section 5. Defeasance. When any Bond has been discharged as provided in this Section 5, 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 outstanding under this Resolution. The City may discharge its obligations with respect to any Bond which is due on any date by irrevocably depositing with the Registrar on or before that date a sum sufficient for the payment thereof in full; or, if any Bond should not be paid when due, the City may nevertheless discharge its obligations with respect thereto by depositing with the Registrar 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 called for redemption on any date when it is prepayable according to their terms,by depositing with the Registrar on or before that date a sum sufficient for the payment thereof in full; provided that notice of the redemption thereof has been duly given as provided in Section 3.05. 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, without reinvestment,to pay all principal and interest to become due thereon to maturity or, if notice of redemption as herein required has been duly provided for, to such earlier redemption date. Section 6. County Auditor Regstration, Certification of Proceedings Investment of Money, Arbitrage 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 each County Auditor a certificate that the Bonds have been entered on his bond register and the taxes described in Section 4.05 hereof have been levied as required by law. -15- 54 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 and to Dorsey&Whitney LLP, Bond Counsel to the City, 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 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. Covenant. The City covenants and agrees with the holders from time to time of the Bonds that it will not take or permit to be taken by any of its 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 Regulations promulgated thereunder(the"Regulations"), as such are enacted or promulgated and in effect on the date of issue of the Bonds, and covenants to take any and all actions within its powers to ensure that the interest on the Bonds will not become subject to taxation under such Code and Regulations. The Improvements are public improvements available for use by members of the general public on a substantially equal basis. The City will not enter into any lease, use agreement or other contract respecting the Improvements 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 Rebate. 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 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 Bonds are to be used for the local governmental purposes of the City; and (iv) the aggregate face amount of all tax-exempt bonds (other than Private Activity Bonds) issued by the City in calendar year in which the Bonds are to be issued is not reasonably expected to exceed$5,000,000. Therefore,pursuant to the provisions of Section 148(f)(4)(C) of the Code,the City shall not be required to comply with the arbitrage rebate requirements of paragraphs (2) and (3) of Section 148(f) of the Code. 6.05. Investment of Money on Deposit in the Bond Fund. The Finance Director shall ascertain monthly the amount on deposit in the Bond Fund. If the amount on deposit therein ever exceeds the aggregate amount of principal and interest due and payable from the Bond Fund through the next following February 1 plus a reasonable carryover as permitted by the Regulations, such excess shall be used to prepay and redeem Bonds or be invested at a yield -16- 55 less than or equal to the yield on the Bonds,based upon their amounts, maturities and interest rates on their date of issue, computed by the actuarial method. The City reserves the right to amend the provisions of this Section at any time, whether prior to or after the delivery of the Bonds, if and to the extent that this Council determines that the provisions of this Section are not necessary in order to ensure that the Bonds are not"arbitrage bonds"within the meaning of Section 148 of the Code and Regulations. 6.06. Arbitrage Certification. The Mayor and the 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 a certification in accordance with the provisions of Section 148 of the Code, and the 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. 6.07. 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 2004 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. 6.08. Official Statement. The Official Statement relating to the Bonds, dated April 30,2004, prepared and distributed on behalf of the City by Ehlers &Associates, Inc., is hereby approved. Ehlers &Associates, Inc., is hereby authorized of behalf of the City to prepare and distribute to the Purchaser a supplement to the Official Statement listing the offering price, the interest rates, other information relating to the Bonds required to be included in the Official Statement by Rule 15c2-12 adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934. Within seven business days from the date hereof, the City shall deliver to the Purchaser 30 copies of the Official Statement and such supplement. 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. 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. Section 7. Continuing Disclosure (a) Purpose and Beneficiaries. To provide for the public availability of certain information relating to the Bonds and the security therefor and to permit the original purchaser and other participating underwriters in the primary offering of the Bonds to comply with amendments to Rule 15c2-12 promulgated by the Securities and Exchange Commission (the "SEC")under the Securities Exchange Act of 1934 (17 C.F.R. § 240.15c2-12),relating to continuing disclosure(as in effect and interpreted from time to time, the"Rule"), which will enhance the marketability of the Bonds, the City hereby makes the following covenants and agreements for the benefit of the Owners (as hereinafter defined) from time to time of the Outstanding Bonds. The City is the only"obligated person"in respect of the Bonds within the -17- 57 meaning of the Rule for purposes of identifying the entities in respect of which continuing disclosure must be made. If the City fails to comply with any provisions of this Section 7, any person aggrieved thereby, including the Owners of any Outstanding Bonds,may take whatever action at law or in equity may appear necessary or appropriate to enforce performance and observance of any agreement or covenant contained in this Section 7, including an action for a writ of mandamus or specific performance. Direct, indirect, consequential and punitive damages shall not be recoverable for any default hereunder to the extent permitted by law. Notwithstanding anything to the contrary contained herein, in no event shall a default under this Section 7 constitute a default under the Bonds or under any other provision of this resolution. As used in this Section 7, "Owner"or`Bondowner"means, in respect of a Bond, the registered owner or owners thereof appearing in the bond register maintained by the Registrar or any"Beneficial Owner" (as hereinafter defined) thereof, if such Beneficial Owner provides to the Registrar evidence of such beneficial ownership in form and substance reasonably satisfactory to the Registrar. As used herein, "Beneficial Owner"means, in respect of a Bond, any person or entity which(i) has the power, directly or indirectly; to vote or consent with respect to, or to dispose of ownership of, such Bond (including persons or entities holding Bonds through nominees, depositories or other intermediaries), or(b) is treated as the owner of the Bond for federal income tax purposes. As used herein, "Outstanding"when used as of any particular time with reference to Bonds means all Bonds theretofore, or thereupon being, authenticated and delivered by the Registrar under this Resolution except (i) Bonds theretofore canceled by the Registrar or surrendered to the Registrar for cancellation; (ii) Bonds with respect to which the liability of the City has been discharged in accordance with Section 5 hereof, and (iii)Bonds for the transfer or exchange or in lieu of or in substitution for which other Bonds shall have been authenticated and delivered by the Registrar pursuant to this Resolution. (b) Information To Be Disclosed. The City will provide,in the manner set forth in subsection (c) hereof, either directly or indirectly through an agent designated by the City, the following information at the following times: (1) on or before 365 days after the end of each fiscal year of the City, commencing with the fiscal year ending December 31, 2004 the following financial information and operating data in respect of the City(the "Disclosure Information"): (A) the audited financial statements of the City for such fiscal year, accompanied by the audit report and opinion of the accountant or government auditor relating thereto, as permitted or required by the laws of the State of Minnesota, containing balance sheets as of the end of such fiscal year and a statement of operations, changes in fund balances and cash flows for the fiscal year then ended, showing in comparative form such figures for the preceding fiscal year of the City,prepared in accordance with generally accepted accounting principles promulgated by the Financial Accounting Standards Board as modified in accordance with the governmental accounting standards promulgated by the Governmental Accounting Standards Board or as otherwise provided under -18- 58 Minnesota law, as in effect from time to time, or, if and to the extent such financial statements have not been prepared in accordance with such generally accepted accounting principles for reasons beyond the reasonable control of the City, noting the discrepancies therefrom and the effect thereof, and certified as to accuracy and completeness in all material respects by the fiscal officer of the City; and (B) To the extent not included in the financial statements referred to in paragraph(A)hereof, the information for such•fiscal year or for the period most recently available of the type set forth below, which information may be unaudited,but is to be certified as to accuracy and completeness in all material respects by the City's financial officer to the best of his or her knowledge, which certification may be based on the reliability of information obtained from governmental or third party sources: • Current Property Valuations • Direct Debt • Tax Levies and Collections • Population Trend • Employment/Unemployment Notwithstanding the foregoing paragraph, if the audited financial statements are not available by the date specified, the City shall provide.on or before such date unaudited financial statements in the format required for the audited financial statements as part of the Disclosure Information and, within 10 days after the receipt thereof, the City shall provide the audited financial statements. Any or all of the Disclosure Information may be incorporated by reference, if it is updated as required hereby, from other documents, including official statements, which have been submitted to each of the repositories hereinafter referred to under subsection(b) or the SEC. If the document incorporated by reference is a final official statement, it must be available from the Municipal Securities Rulemaking Board. The City shall clearly identify in the Disclosure Information each document so incorporated by reference. If any part of the Disclosure Information can no longer be generated because the operations of the City have materially changed or been discontinued, such Disclosure Information need no longer be provided if the City includes in the Disclosure Information a statement to such effect; provided, however, if such operations have been replaced by other City operations in respect of which data is not included in the Disclosure Information and the City determines that certain specified data regarding such replacement operations would be a Material Fact (as defined in paragraph (2)hereof), then, from and after such determination, the Disclosure Information shall include such additional specified data regarding the replacement operations. -19- 59 If the Disclosure Information is changed or this Section 7 is amended as permitted by this paragraph(b)(1) or subsection (d), then the City shall include in the next Disclosure Information to be delivered hereunder, to the extent necessary, an explanation of the reasons for the amendment and the effect of any change in the type of financial information or operating data provided. (2) In a timely manner, notice of the occurrence of any of the following events which is a Material Fact (as hereinafter defined): (A) Principal and interest payment delinquencies; (B) Non-payment related defaults; (C) Unscheduled draws on debt service reserves reflecting financial difficulties; (D) Unscheduled draws on credit enhancements reflecting financial difficulties; (E) Substitution of credit or liquidity providers, or their failure to perform; (F) Adverse tax opinions or events affecting the tax-exempt status of the security; . (G) Modifications to rights of security holders; (H) Bond calls; (I) Defeasances; (J) Release, substitution, or sale of property securing repayment of the securities; and (K) Rating changes. As used herein, a"Material Fact" is a fact as to which a substantial likelihood exists that a reasonably prudent investor would attach importance thereto in deciding to buy,hold or sell a Bond or, if not disclosed, would significantly alter the total information otherwise available to an investor from the Official Statement, information disclosed hereunder or information generally available to the public. Notwithstanding the foregoing sentence, a "Material Fact'is also an event that would be deemed"material" for purposes of the purchase,holding or sale of a Bond within the meaning of applicable federal securities laws, as interpreted at the time of discovery of the occurrence of the event. (3) In a timely manner, notice of the occurrence of any of the following events or conditions: (A) the failure of the City to provide the Disclosure Information required under paragraph (b)(1) at the time specified thereunder; (B) the amendment or supplementing of this Section 7 pursuant to subsection(d), together with a copy of such amendment or supplement and any explanation provided by the City under subsection (d)(2); -20- 60 (C) the termination of the obligations of the City under this Section 7 pursuant to subsection (d); (D) any change in the accounting principles pursuant to which the financial statements constituting a portion of the Disclosure Information are prepared; and (E) any change in the fiscal year of the City. (c) Manner of Disclosure. The City agrees to make available the information described in subsection (b)to the following entities by telecopy, overnight delivery,mail or other means, as appropriate: (1) the information described in paragraph (1) of subsection(b), to each then nationally recognized municipal securities information repository under the Rule and to any state information depository then designated or operated by the State of Minnesota as contemplated by the Rule (the"State Depository"), if any; (2) the information described in paragraphs (2) and (3) of subsection(b), to the Municipal Securities Rulemaking Board and to the State Depository, if any; and (3) the information described in subsection(b), to any rating agency then maintaining a rating of the Bonds and, at the expense of such Bondowner, to any Bondowner who requests in writing such information, at the time of transmission under paragraphs (1) or(2) of this subsection(c), as the case may be, or, if such information is transmitted with a subsequent time of release, at the time such information is to be released. (d) Term; Amendments; Interpretation. (1) The covenants of the City in this Section 7 shall remain in effect so long as any Bonds are Outstanding. Notwithstanding the preceding sentence,however, the obligations of the City under this Section 7 shall terminate and be without further effect as of any date on which the City delivers to the Registrar an opinion of Bond Counsel to the effect that,because of legislative action or final judicial or administrative actions or proceedings, the failure of the City to comply with the requirements of this Section 7 will not cause participating underwriters in the primary offering of the Bonds to be in violation of the Rule or other applicable requirements of the Securities Exchange Act of 1934, as amended, or any statutes or laws successory thereto or amendatory thereof. (2) This Section 7 (and the form and requirements of the Disclosure Information)may be amended or supplemented by the City from time to time, without notice to (except as provided in paragraph (c)(3)hereof) or the consent of the Owners of any Bonds,by a resolution of the City Council filed in the office of the City Clerk of the City accompanied by an opinion of Bond Counsel, who may rely on certificates of the City and others and the opinion may be subject to customary qualifications, to the effect that: (i) such amendment or supplement(a)is made in connection with a change in circumstances that arises from a change in law or regulation or a -21-. 61 change in the identity,nature or status of the City or the type of operations conducted by the - City, or(b) is required by, or better complies with, the provisions of paragraph(b)(5) of the Rule; (ii) this Section 7 as so amended or supplemented would have complied with the requirements of paragraph (b)(5) of the Rule at the time of the primary offering of the Bonds, giving effect to any change in circumstances applicable under clause (i)(a) and assuming that the Rule as in effect and interpreted at the time of the amendment or supplement was in effect at the time of the primary offering; and (iii) such amendment or supplement does not materially impair the interests of the Bondowners under the Rule. If the Disclosure Information is so amended, the City agrees to provide, contemporaneously with the effectiveness of such amendment, an explanation of the reasons for the amendment and the effect, if any, of the change in the type of financial information or operating data being provided hereunder. (3) This Section 7 is entered into to comply with the continuing disclosure provisions of the Rule and should be construed so as to satisfy the requirements of paragraph(b)(5) of the Rule. Section 8. Authorization of Payment of Certain Costs of Issuance of the Bonds. The City authorizes the Purchaser to forward the amount of Bond proceeds allocable to the payment of issuance expenses to Resource Bank&Trust Company, Minneapolis, Minnesota, on the closing date for further distribution as directed by the City's financial advisor, Ehlers & Associates, Inc. Mayor Attest: City Clerk -22- 62 The motion for the adoption of the foregoing resolution was duly seconded by Councilmember , 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 which signature was attested by the City Clerk. -23- 63 COUNTY AUDITOR'S CERTIFICATE AS TO REGISTRATION OF BONDS AND TAX LEVY CITY OF ST. ANTHONY, MINNESOTA I, the undersigned, being the duly qualified and acting County Auditor of Hennepin County, Minnesota, hereby certify that there has been filed in my office a certified copy of a resolution of the City Council of the City of St. Anthony, in said County, adopted May 11, 2004, awarding the sale, fixing the form and details and providing for the execution, delivery and security of$1,790,000 General Obligation Improvement Bonds, Series 2004A, of the City, to be dated, as of June 1, 2004 and levying taxes for the payment of principal of and interest on said Bonds. I further certify that said Bonds have been entered on my bond register and the tax required by law for payment of the Bonds has been levied and filed, as required by Minnesota Statutes, Sections 475.61 to 475.63. WITNESS my hand and official seal this day of , 2004. Hennepin County Auditor (SEAL) 64 COUNTY AUDITOR'S CERTIFICATE AS TO REGISTRATION OF BONDS AND TAX LEVY CITY OF ST. ANTHONY, MINNESOTA 1, the undersigned,being the duly qualified and acting County Auditor of Ramsey County, Minnesota, hereby certify that there has been filed in my office a certified copy of a resolution of the City Council of the City of St. Anthony, in said County, adopted May 11, 2004, awarding the sale, fixing the form and details and providing for the execution, delivery and security of$1,790,000 General Obligation Improvement Bonds, Series 2004A, of the City, to be dated, as of June 1, 2004 and levying taxes for the payment of principal of and interest on said Bonds. I further certify that said Bonds have been entered on my bond register and the tax required by law for payment of the Bonds has been levied and filed, as required by Minnesota Statutes, Sections 475.61 to 475.63. WITNESS my hand and official seal this day of ) 2004. Ramsey County Auditor (SEAL) 4831-4747-0336\1 5/5/2004 3:32 PM 55 REQUEST FOR COUNCIL CONSIDERATION ialll. $hog Report Date: May 5, 2004 e.. Meeting Date: May 11 , 2004 Agenda Section: VI, B ITEM DESCRIPTION: Extension of Time Line for Phase II Development - Northwest Quadrant. MANAGER'S REVIEW: In the development agreement approved by the City-on December 16, 2003, the Developer was to enter into an agreement by May 31 , 2004, with the HRA to construct Phase II development. Because of the time spent putting Phase I project together, the developer is asking for an amendment to the developer agreement to give them until December 31 , 2004. Both the Council and H.R.A. need to approve. Stacie Kvilvang from Ehlers, will be present to explain this extension. Recommendation: Council Approval of Resolution 04-041 for extension of Time Line for Phase II of Northwest Quadrant Development. l Michael Mornson City Manager 66 0 EHLER , & ASSOCIATES INC ® To: Mike Morrison—City Manager From: Stacie Kvilvang—Associate Financial Advisor W Date: May 5, 2004 Subject: Extension of Time Line for Phase II Development—Northwest Quadrant Redevelopment On December 19, 2003, the City Council and Housing and Redevelopment Authority (HRA) executed a Development Agreement with Apache Redevelopment LLC for the redevelopment of the Northwest Quadrant. According to Section 8.1 of the agreement, the Developer was to submit detailed site plans and proformas to the City by March 15, 2004, for Phase II of the development. Based upon review of this information and negotiations between the two parties, the Developer and HRA were to enter into the Phase II contract addendum by May 31, 2004. As you recall, the Phase II development was comprised of the senior condo/co-op, the high- end town homes and additional stacked flats and were to be located on the properties located along Stinson Boulevard and the existing 39`h Avenue. Due to the extensive time that the Developer has needed to expend on expediting and finalizing all the components of Phase I of the development, they are requesting an extension of the above-mentioned timelines. The Developer is still interested in completing Phase II of the development and is requesting that the new date to submit proforma and plan information be extended to October 15, 2004 and that the date to enter into a contract addendum be extended to December 31, 2004. .Please contact me at 651-697-8506 with any questions. cc: File LEADERS IN PUBLIC FINANCE _0------,--..__........_..- —.._.__..__._....... - --._.......------------ -._...----- - - -- -----,---5_"—'----------,-......--x_: ......_...—'---...-- -,5 360 Centre Pointe Drive Phone: 651-697-8506 Fax: 651-697-8555 Roseville, MN 55113-1105 skvilvang@ehlers-inc.com 67 CITY OF ST. ANTHONY VILLAGE RESOLUTION 04-041 A RESOLUTION APPROVING EXTENSION OF TIME LINE FOR PHASE II DEVELOPM1ENT—NORTHWEST QUADRANT WHEREAS, the City of St. Anthony (the "City") and the St. Anthony Housing and Redevelopment Authority (the "HRA") have executed a Development Agreement with Apache Redevelopment LLC for the redevelopment of the Northwest Quadrant. WHEREAS, in accordance with Section 8.1 of the agreement, the developer is requesting the new date to submit proforma and plan information be extended to October 15, 2004 and the date to enter into a contract addendum be extended to December 31, 2004. NOW,THEREFORE,BE IT RESOLVED A RESOLUTION APPROVING THE EXTENSION OF TIMELINE FOR PHASE H, NORTHWEST QUADRANT DEVELOPMENT. Adopted this day of ) 2004. Mayor ATTEST: City Clerk Review for Administration: City Manager 66 FIRST AMENDMENT TO REDEVELOPMENT AGREEMENT BY AND AMONG THE CITY OF SAINT ANTHONY,MINNESOTA, THE HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF SAINT ANTHONY,MINNESOTA, AND APACHE REDEVELOPMENT,LLC May 69 FIRST AMENDMENT TO REDEVELOPMENT AGREEMENT THIS FIRST AMENDMENT TO REDEVELOPMENT AGREEMENT ("First Amendment")is made and entered into this day of May, 2004, by and between the CITY OF SAINT ANTHONY, MINNESOTA, a Minnesota statutory city (the"City"), the HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF SAINT ANTHONY, , MINNESOTA, a public body corporate and politic organized and existing under the laws of the State of Minnesota (the"Authority"), and APACHE REDEVELOPMENT,LLC, a Minnesota limited liability company(the"Developer"). RECITALS WHEREAS,the Developer,the City and the Authority have previously entered into a Redevelopment Agreement dated as of December 19, 2003 (the"Redevelopment Agreement") and the capitalized terms used in this First Amendment shall have the meaning given them in the Redevelopment Agreement; WHEREAS,pursuant to the Redevelopment Agreement, the Developer agreed to develop a Development located in the Project Area in two Phases; WHEREAS,under Section 8.1 of the Redevelopment Agreement,the Developer and the Authority agreed to resolve certain issues concerning Phase II by negotiating and entering into a Phase II Contract Addendum by May 31, 2004; WHEREAS,by letter dated April 22, 2004, the Developer has informed the Authority that delays in Phase I have necessitated delayed completion of the Phase II Contract Addendum, and the incidental technical, financial and legal analysis required by the Redevelopment Agreement; and WHEREAS,the Developer has requested that the original deadline,under Section 8.1, for completion of the Phase II Contract Addendum of May 31, 2004 be extended until December 31, 2004, and that the deadline for providing pro formas, more detailed site plans and other Project Element information be extended to October 15, 2004. NOW,THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: 1. Section 8.1 of the Redevelopment Agreement is hereby amended to read as follows: "Section 8.1 Phase II Timing, General Contract Structure. The Developer has been approved by the Authority to undertake Phase II of the Development,however the parties acknowledge that certain issues remain to be resolved prior to commencement of Phase H. The Developer has agreed to the Developer Fee Hold Back as provided in Section 11.5, as consideration and evidence of Developer's good faith intent to proceed with Phase H. The Parties shall proceed to resolve these issues and agree to enter into a supplement to this Agreement (the"Phase II Contract Addendum") to establish all terms of the Phase II portion of 70 the Project not otherwise provided for herein. The Developer and Authority shall enter into the Phase II Contract Addendum as expeditiously as practical after further technical, financial and legal analysis by the City Consultants of the Phase II Development,but in no event later than December 31, 2004. Developer shall provide pro formas and more detailed site plans and other Project Element information not later than October 15, 2004 for at least the Phase IIA Senior Housing Element and the Phase IIB Townhouse Element to allow finalization of this negotiation. The dates herein shall be subject to extension by up to sixty(60) days on the Developer's request,but any further extension shall be solely at the Authority's discretion. The Authority and Developer agree that the Phase IIA Senior Housing Element and the Phase IIB Townhouse Element shall be the first priority Elements to be undertaken in the Phase II Development." 2. Except as herein amended, other terms and provisions of the Redevelopment Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the City, the Authority and Developer have caused this First Amendment to Redevelopment Agreement to be duly executed in their names and on their behalf, all on or as of the date first above written. CITY OF SAINT ANTHONY, MINNESOTA By Its Mayor By Its City Manager 71 HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF SAINT ANTHONY,MINNESOTA By Its Chair/Commissioner By Its Executive Director 72 APACHE REDEVELOPMENT,LLC a Minnesota limited liability company By Its Chief Manager 4829-1121-3056\1 5/3/2004 12:06 PM 73 REQUEST FOR COUNCIL CONSIDERATION ain 'hon Report Date: May 5-, 2004 e� Meeting Date: May 11 , 2004 Agenda Section: Vf, C. ITEM DESCRIPTION: Charitable Gambling Ordinance MANAGER'S REVIEW: I have asked Jerry Gilligan, to prepare an amendment to our charitable gambling ordinance based on the fact that our current ordinance allows charitable gambling to on-sale municipals only. With the closing of the Stonehouse, we no longer own an on-sale and with Spectators located where the Stonehouse used to be, I felt it was important to get the ordinance changed prior to the opening of the restaurant. I have scheduled the three readings for the ordinance for May 11 th, May 25th, and June 8th. I have also passed the ordinance onto some of the Sports Boosters that I have been working with on the charitable gambling license for Spectators. Jerry Gilligan of Dorsey Whitney will be present to discuss the issue with the Council: Recommendation: Council Approval of Charitable Gambling Ordinance. Michael Morrison Executive Director c ® ORSE.N 74 DORSEY & WHITNEY LLI MEMORANDUM TO: Mayor and Members of the City Council Michael Mornson, City Manager FROM: Jerome P. Gilligan DATE: May 5, 2004 RE: Amendment of Section 535 of City Code to Permit Charitable Gambling in Restaurants Holding Liquor License In order to permit charitable gambling in restaurants holding on-sale liquor licenses it will be necessary for the City Council to amend Section 535.02 of the City Code. Presently the section limits licensed charitable gambling to municipal on-sale liquor establishments. I have prepared an ordinance amending Section 535.02 to permit charitable gambling in establishments holding an on-sale liquor license. Under Minnesota Statutes, Section 349.213, the City has the authority to by ordinance require that an organization conducting licensed charitable gambling expend all or a portion of its lawful expenditure from gross profits derived from the charitable gambling conducted in the City within the City's trade area. The ordinance must define the City's trade area. This statute requires that the trade area must include each city which is contiguous to the City. The Council may wish to consider imposing this requirement on licensed charitable gambling, but it may be of limited value in ensuring the profits from licensed charitable gambling are expended in a manner that benefits the City and its residents, because of the requirement that the trade area must at a minimum include all cities contiguous to the City. DORSEY&WHITNEY LLP CITY OF ST. ANTHONY 75 ORDINANCE 2004-002' AN ORDINANCE RELATING TO LAWFUL GAMBLING; AMENDING SECTION 500 OF THE ST. ANTHONY CITY CODE The City Council of the City of St. Anthony hereby ordains: Section 1. Section 535.02 of the St. Anthony City Code, shall be amended to read as follows: 535.02 Gambling Limited. No form or type of gambling, whether lawful or otherwise, shall be conducted or allowed within the City except for: (1) lawful gambling conducted in accordance and compliance with Minn. Stat. § 349.166, and(2) lawful gambling conducted by a properly licensed organization in accordance with State law in an establishment holding an On-Sale Intoxicating Liquor License under Chapter 10 of this Code. Section 2. This ordinance shall become effective as of the date of its publication. First Reading: May 11, 2004 Second Reading: Adopted: Mayor ATTEST: City Clerk Publish: St. Anthony Bulletin CITY OF ST. ANTHONY 7s ORDINANCE 2004-002 AN ORDINANCE RELATING TO LAWFUL GAMBLING; AMENDING SECTION 500 OF THE ST. ANTHONY CITY CODE, The City Council of the City of St. Anthony hereby ordains: Section 1. Section 535.02 of the St. Anthony City Code, shall be amended to read as follows: 535.02 Gambling Limited. No form or type of gambling, whether lawful or otherwise, shall be conducted or allowed within the City except for: (1) lawful gambling conducted in accordance and compliance with Minn. Stat. § 349.166, and (2) lawful gambling conducted by a properly licensed organization in accordance with State law in an establishment holding an On-Sale Intoxicating Liquor License under Chanter 10 of this Code. Section 2. This ordinance shall become effective as of the date of its publication. First Reading: May 11, 2004 Second Reading: Adopted: Mayor ATTEST: City Clerk Publish: St. Anthony Bulletin 78 CITY OF ST. ANTHONY RESOLUTION 04 - 027 A RESOLUTION APPROVING THE JOINT POWERS AGREEMENT FOR POLICE SERVICES WITH THE CITY OF FALCON HEIGHTS AND AUTHORIZING THE MAYOR AND CITY MANAGER TO EXECUTE SAID AGREEMENT WHEREAS, the City of St. Anthony and the City of Falcon Heights desire to enter into a joint powers agreement whereby the City of St. Anthony agrees to provide police services for the City of Falcon Heights during 2005 and 2006. NOW, THEREFORE,BE IT RESOLVED that the City Council of the City of St. Anthony hereby approves the Joint Powers Agreement with the City of Falcon Heights and authorizes the Mayor and City Manager to execute said Agreement on behalf of the City of St. Anthony. Adopted this day of 92004. Mayor ATTEST: City Clerk Reviewed for Administration: City Manager 79 CITY OF ST. ANTHONY RESOLUTION 04 - 028 A RESOLUTION APPROVING THE JOINT POWERS AGREEMENT FOR POLICE SERVICES WITH THE CITY OF LAUDERDALE AND AUTHORIZING THE MAYOR AND CITY MANAGER TO EXECUTE SAID AGREEMENT WHEREAS, the City of St. Anthony and the City of Lauderdale desire to enter into a joint powers agreement whereby the City of St. Anthony agrees to provide police services for the City of Lauderdale during 2005 and 2006. NOW, THEREFORE,BE IT RESOLVED that the City Council of the City of St. Anthony hereby approves the Joint Powers Agreement with the City of Lauderdale and authorizes the Mayor and City Manager to execute said Agreement on behalf of the City of St. Anthony. Adopted this day of , 2004. Mayor ATTEST: City Clerk Reviewed for Administration: City Manager 80 JOINT POWERS AGREEMENT FOR POLICE SERVICES This Agreement is made and entered into as of , 2004- between the CITY OF ST. ANTHONY, a municipal corporation under the laws of the State of Minnesota ("St. Anthony") and the CITY OF FALCON HEIGHTS, a municipal corporation under the laws of the State of Minnesota ("Falcon Heights"). The services to be performed under this Agreement will commence January 1, 2005. I. PURPOSE St. Anthony and Falcon Heights have the power within their respective cities to provide for the prevention of crime and for police protection. Under Minnesota Statutes, Section 471 .59, the cities may, by agreement, provide for the exercise of the police power by one city on behalf of the other city. This Agreement sets forth the terms and conditions under which St. Anthony will provide police services for Falcon Heights. St. Anthony will have full authority and responsibility to provide services in accordance with all enabling legislation under the laws of the State of Minnesota and the ordinances of Falcon Heights. St. Anthony will provide feedback to the Falcon Heights City Administrator and City Council on a regular and timely basis, and will actively support the creation of a joint advisory committee pursuant to Section IX of this Agreement,whose members come from both cities, and whose purpose is to review, monitor, and ensure a successful relationship between the two cities under this Agreement. II. INTERPRETATION This Agreement is entered following the preparation by Falcon Heights of a Request for Proposal for Police Services and the submission of a responsive Proposal by St. Anthony (the "Proposal"). To the extent that any of the provisions of this Agreement are inconsistent with the provisions of the Proposal, the provisions of this Agreement will control. If any provision of this Agreement is ambiguous, the parties agree that the Proposal may be looked to as evidence of the parties' intent. Ill. SERVICES St. Anthony will provide Falcon Heights with 24 hour police service, and will physically place a certified officer within the boundaries of Falcon Heights 24 hours each day, except in those instances when the officer makes an arrest and transports a prisoner, during mutual aid situations, when providing a backup for another officer, or when called away for a court appearance, booking or similar police matter. Subject 81 Joint Powers Agreement for Police Services Page 2 to these exceptions and in normal circumstances, St. Anthony will provide 24 hour police protection and police presence each day within the City of Falcon Heights. In those instances stated above when an officer is not physically present in Falcon Heights, St. Anthony will respond to emergency police calls with other officers. IV. LEVEL OF SERVICES During the term of this Agreement, St. Anthony will provide to Falcon Heights the same police service extended to persons and property within St. Anthony, which will include, but be limited to, the following: A. Patrol services, with random patrolling of all residential, business and public property areas during all shifts; B. Police presence within the boundaries of Falcon Heights 24 hours each day, subject only to the exceptions noted above; C. Animal control services as provided within the City of St. Anthony by the animal control service employed by St. Anthony; D. Enforcement of all ordinances of Falcon Heights which are intended to be enforced by police officers, with special attention being given to parking, winter and nuisance ordinances; E. Ticketing for traffic violations will be done routinely during normal shifts; F. Crime prevention programs that encourage community involvement and investment in the City of Falcon Heights, including participation in the Mayor's Commission, Family Violence Network, Neighborhood Watch Programs, "McGruff Houses," and "Combat Auto Theft" programs; in appropriate cases, referrals will be made to the Northwest Youth and Family Services Youth Diversion Program; G. Criminal investigations, crime lab service and supervisory service; H. Reports on police services and activities, including weekly, monthly and annual police reports; I. Responses to medical emergencies, fires and other emergencies; responses shall include, where appropriate, securing the scene for fire/rescue personnel, accompanying fire/rescue personnel to the hospital 82 Joint Powers Agreement for Police Services Page 3 upon request of such personnel, and providing follow-up information to fire/rescue personnel upon request of such personnel; J. Officers will be available at Falcon Heights City Hall to answer questions from, and provide information regarding police activities to, Falcon Heights residents, business owners and staff on an as-needed basis; K. License inspections, background investigations and license enforcement services as called for under applicable state law or city ordinances; L. Review and comment, upon request, of proposed Falcon Heights ordinances affecting police services or enforcement; M. Follow-up on reported crimes with the person(s)who reported the crime, including routine notification by telephone or mail as to the status of the investigation; and N. Special event traffic patrol services, including ten days per year during the State Fair; and other events such as periodic parades and the National Street Rods Association Convention. V. PAYMENT FOR SERVICES This Agreement will be effective January 1, 2005 and will continue until December 31, 2006, In consideration of the services to be provided under this Agreement, Falcon Heights will pay St. Anthony an annual fee of $476,921 for the year 2005, and an annual fee of $492,421_for the year 2006, for the police services under this Agreement. This Agreement will be effective January 1 , 2005 and will continue indefinitely unless canceled in accordance with the procedure outlined in Section XX of this Agreement. In consideration of services provided for under this Agreement, St. Anthony and Falcon Heights shall establish the fee for these services on a biennial basis by May 15th of the even numbered year preceding each biennium. VI. METHOD OF PAYMENT St. Anthony will bill Falcon Heights monthly for 1/12 of the annual fee, and Falcon Heights will promptly remit payments to St. Anthony within 30 days after receiving each billing from St. Anthony. 83 Joint Powers Agreement for Police Services Page 4 VII. LIABILITY St. Anthony will be responsible for all liability incurred as a result of the actions of St. Anthony police officers under this Agreement, and will hold Falcon Heights, its officers and employees harmless for any liability resulting from actions of a St. Anthony employee and shall defend Falcon Heights, its officers and employees, against any claim for damages arising out of St. Anthony's performance of this Agreement; provided, however that if the claim, action or liability is one which is insured by St. Anthony's liability insurer, Falcon Heights will bear the first $5,000.00 of expense for any such claim, action or liability, or expenses relation thereto, including attorneys' fees, to the extent not covered by the insurer because of a deductible amount under the policy (which deductible amount is currently $10,000.00). VIII. ADMINISTRATIVE RESPONSIBILITY The law enforcement and police services rendered to Falcon Heights will be under the sole direction of St. Anthony. The standards of performance, the hiring and discipline of officers assigned, and other matters relating to regulations and policies related to police employment, services and activities, will be within the exclusive control of St. Anthony. The parties hereto expressly affirm the importance of work force diversity and St. Anthony agrees to use reasonable efforts, within applicable departmental budgetary limits, to recruit qualified female and minority police officers through the Minnesota Police Recruitment System. IX. JOINT ADVISORY COMMITTEE. Both cities will appoint members to a joint advisory committee. The committee will meet at least four times each year to ensure that this Agreement and the services performed pursuant to this Agreement are meeting the expectations of both cities. Any recommendations of the committee will be strictly advisory. X. COMMUNICATIONS, EQUIPMENT AND SUPPLIES St. Anthony will furnish all communication equipment and any necessary supplies required to perform the services which are to be rendered under this Agreement. XI. COOPERATION AND ASSISTANCE AGREEMENTS Falcon Heights will be included in all cooperative agreements entered into by the St. Anthony Police Department with other police services units. .84 Joint Powers Agreement for Police Services Page 5 XI 1. HEADQUARTERS Headquarters for services rendered to Falcon Heights under this Agreement will be located at offices owned or leased by St. Anthony. The citizens of Falcon Heights may notify headquarters or Ramsey County radio dispatch for police services requested either in person or by some other means of communication. St. Anthony officers may take routine telephone calls and complete routine reports for Falcon Heights at the Falcon Heights City Hall, and Falcon Heights will have facilities available to the officers at Falcon Heights City Hall for this purpose. The facilities will include a desk, telephone, fax and copier. All. EMPLOYEES OF ST. ANTHONY Officers assigned to duty in Falcon Heights will at all times be employees of St. Anthony. All obligations with regard to workers compensation, PERA, withholding tax, insurance, and similar personnel and employment matters will be the obligation of St. Anthony. Falcon Heights will not be required to furnish any fringe benefits or assume any other liability of employment to any officer assigned to duty within Falcon Heights. XIV. ENFORCEMENT POLICIES Enforcement policies of St. Anthony will prevail as the enforcement policies within Falcon Heights. A written statement of the current enforcement policies of St. Anthony will be provided in writing to Falcon Heights. XV. ENFORCEMENT OF ORDINANCES OF THE CITY OF FALCON HEIGHTS St. Anthony officers assigned to duty within Falcon Heights will enforce Falcon Heights' ordinances to the extent appropriate for enforcement by police officers. XVI. OFFICERS OF FALCON HEIGHTS The officers assigned duty within Falcon Heights will be provided with authority to enforce the laws of the City of Falcon Heights by proper action to be taken by the Falcon Heights City Council, and while performing services under this Agreement will be considered police officers of Falcon Heights. The Chief of Police of St. Anthony will furnish to the Falcon Heights City Administrator the names of all St. Anthony police officers assigned to Falcon Heights, and all such officers will be appointed officers of the City of Falcon Heights. 85 Joint Powers Agreement for Police Services Page 6 XVII. OFFENSES All offenses within Falcon Heights charged by police officers under this Agreement will be charged in accordance with Falcon Heights' ordinances when possible; otherwise, the charge will be made in accordance with the laws of the State of Minnesota or the laws of the United States of America. XVIII. COMMUNICATIONS St. Anthony agrees to provide the Falcon Heights Administrator with weekly, monthly and annual police reports, in a format as is mutually agreed to by the St. Anthony Police Chief and the Falcon Heights City Administrator. The St. Anthony Police Chief will regularly communicate with the Falcon Heights City Administrator in order to ensure that Falcon Heights is knowledgeable about any police activity in the City, and at the request of the Administrator the Police Chief will make presentations to the Falcon Heights City Council. XIX. PROSECUTION AND REVENUES Falcon Heights will pay all costs of prosecution for all offenses charged within its boundaries or under its ordinances. LEAA funds and confiscated drug funds will be retained by St. Anthony. Fine revenues will be paid to Falcon Heights. P.O.S.T. training funds will be used for officer training. XX. CONTINUATION OF AGREEMENT This Agreement will be effective January 1, 2005 and will continue until terminated -as described in-Paragraph XXI below. Inconsideration for services provided under this Agreement, St. Anthony and Falcon Heights shall establish the fee for police services on a biennial basis on or before May 15th of the even numbered year preceding each biennium. XXI. TERMINATION OF AGREEMENT Either St. Anthony or Falcon Heights may terminate the Agreement by submitting a written notification to terminate to the City Administrator of Falcon Heights and the City Manager of St. Anthony by April 15th of even numbered years that St. Anthony or Falcon Heights intends to terminate the Agreement. Termination of this Agreement 86 Joint Powers Agreement for Police Services Page 7 shall be effective on December 31st at 11 :59 of the year that either St. Anthony or Falcon Heights terminate the Agreement. Mi. REVIEW OF AGREEMENT From time to time the terms and conditions of this Agreement shall be reviewed and revised as St. Anthony and Falcon Heights deem necessary. XXIII. ASSIGNMENT The rights and obligations of the parties under this Agreement will not be assigned, and St. Anthony will not subcontract for any services to be furnished to Falcon Heights (except as otherwise provided in this Agreement), without the prior written consent of the other party. The parties hereto have executed this Agreement as of the date first above stated. CITY OF FALCON HEIGHTS CITY OF ST. ANTHONY By: By: Mayor Mayor By: By: City Administrator City Manager Date: Date: 87 JOINT POWERS AGREEMENT FOR POLICE SERVICES This Agreement is made and entered into as of , 2004 between the CITY OF ST. ANTHONY, a municipal corporation under the laws of the State of Minnesota ("St. Anthony") and the CITY OF LAUDERDALE, a municipal corporation under the laws of the State of Minnesota ("Lauderdale") . The services to be performed under this Agreement will commence January 1, 2005. I. PURPOSE St. Anthony and Lauderdale have the power within their respective cities to provide for the prevention of crime and for police protection. Under Minnesota Statutes, Section 471 .59, the cities may, by agreement, provide for the exercise of the police power by one city on behalf of the other city. This Agreement sets forth the terms and conditions under which St. Anthony will provide police services for Lauderdale. St. Anthony will have full authority and responsibility to provide services in accordance with all enabling legislation under the laws of the State of Minnesota and the ordinances of Lauderdale. St. Anthony will provide feedback to the Lauderdale City Administrator and City Council on a regular and timely basis, and will actively support the creation of a joint advisory committee pursuant to Section IX of this Agreement, whose members come from both cities, and whose purpose is to review, monitor, and ensure a successful relationship between the two cities under this Agreement. II. INTERPRETATION This Agreement is entered following the preparation by Lauderdale of a Request for Proposal for Police Services and the submission of a responsive Proposal by St. Anthony (the "Proposal"). To the extent that any of the provisions of this Agreement are inconsistent with the provisions of the Proposal, the provisions of this Agreement will control. If any provision of this Agreement is ambiguous, the parties agree that the Proposal may be looked to as evidence of the parties' intent. III. SERVICES St. Anthony will provide Lauderdale with 24 hour police service, and will physically place a certified officer within the boundaries of Lauderdale 24 hours each day, except in those instances when the officer makes an arrest and transports a prisoner, during mutual aid situations, when providing a backup for another officer, or when called away for a court appearance, booking or similar police matter. Subject to these 88 Joint Powers Agreement for Police Services Page 2 exceptions and in normal circumstances, St. Anthony will provide 24 hour police protection and police presence each day within the City of Lauderdale. In those instances stated above when an officer is not physically present in Lauderdale, St. Anthony will respond to emergency police calls with other officers. IV. LEVEL OF SERVICES During the term of this Agreement, St. Anthony will provide to Lauderdale the same police service extended to persons and property within St. Anthony, which will include, but be limited to, the following: A. Patrol services, with random patrolling of all residential, business and public property areas during all shifts; B. Police presence within the boundaries of Lauderdale 24 hours each day, subject only to the exceptions noted above; C. Animal control services as provided within the City of St. Anthony by the animal control service employed by St. Anthony; D. Enforcement of all ordinances of Lauderdale which are intended to be enforced by police officers, with special attention being given to parking, winter and nuisance ordinances; E. Ticketing for traffic violations will be done routinely during normal shifts; F. Crime prevention programs that encourage community involvement and investment in the City of Lauderdale, including participation in the Mayor's Commission, Family Violence Network, Neighborhood Watch Programs, "McGruff Houses," and "Combat Auto Theft" programs; in appropriate cases, referrals will be made to the Northwest Youth and Family Services Youth Diversion Program; G. Criminal investigations, crime lab service and supervisory service; H. Reports on police services and activities, including weekly, monthly and annual police reports; I. Responses to medical emergencies, fires and other emergencies; responses shall include, where appropriate, securing the scene for fire/rescue personnel,accompanying fire/rescue personnel to the hospital 89 Joint Powers Agreement for Police Services Page 3 upon request of such personnel, and providing follow-up information to fire/rescue personnel upon request of such personnel; J. Officers will be available at Lauderdale City Hall to answer questions from, and provide information regarding police activities to, Lauderdale residents, business owners and staff on an as-needed basis; K. License inspections, background investigations and license enforcement services as called for under applicable state law or city ordinances; L. Review and comment, upon request, of proposed Lauderdale ordinances affecting police services or enforcement; M. Follow-up on reported crimes with the person(s)who reported the crime, including routine notification by telephone or mail as to the status of the investigation; and N. Special event traffic patrol services, including ten days per year during the State Fair; and other events such as periodic parades and the National Street Rods Association Convention. V. PAYMENT FOR SERVICES This Agreement will be effective January 1, 2005 and will continue until December 31, 2006. In consideration of the services to be provided under this Agreement, Lauderdale will pay St. Anthony an annual fee of$247,219 for the year 2005, and an annual fee of $255,254—for the year 2006, for the police services under this Agreement. This Agreement will be effective January 1, 2005 and will continue indefinitely unless canceled in accordance with the procedure outlined in Section XX of this Agreement. In consideration of services provided for under this Agreement, St. Anthony and Lauderdale shall establish the fee for these services on a biennial basis by May 15th of the even numbered year preceding each biennium. VI. METHOD OF PAYMENT St. Anthonywill bill Lauderdale monthlyfor 1/12 of the annual fee, and Lauderdale will promptly remit payments to St. Anthony within 30 days after receiving each billing from St. Anthony. 90 Joint Powers Agreement for Police Services Page 4 VII. LIABILITY St. Anthony will be responsible for all liability incurred as a result of the actions of St. Anthony police officers under this Agreement, and will hold Lauderdale, its officers and employees harmless for any liability resulting from actions of a St. Anthony employee and shall defend Lauderdale, its officers and employees, against any claim for damages arising out of St. Anthony's performance of this Agreement; provided, however, that if the claim, action or liability is one which is insured by St. Anthony's liability insurer, Lauderdale will bear the first$5,000.00 of expense for any such claim, action or liability, or expenses relation thereto, including attorneys'fees, to the extent not covered by the insurer because of a deductible amount the policy (which deductible amount is currently $10,000.00). VIII. ADMINISTRATIVE RESPONSIBILITY The law enforcement and police services rendered to Lauderdale will be under the sole direction of St. Anthony. The standards of performance, the hiring and discipline of officers assigned, and other matters relating to regulations and policies related to police employment, services and activities, will be within the exclusive control of St. Anthony. The parties hereto expressly affirm the importance of work force diversity and St. Anthony agrees to use reasonable efforts, within applicable departmental budgetary limits, to recruit qualified female and minority police officers through the Minnesota Police Recruitment System. IX. JOINT ADVISORY COMMITTEE Both cities will appoint members to a joint advisory committee. The committee will meet at least four times each year to ensure that this Agreement and the services performed pursuant to this Agreement are meeting the expectations of both cities. Any recommendations of the committee will be strictly advisory. X. COMMUNICATIONS, EQUIPMENT AND SUPPLIES St. Anthony will furnish all communication equipment and any necessary supplies required to perform the services which are to be rendered under this Agreement. XI. COOPERATION AND ASSISTANCE AGREEMENTS Lauderdale will be included in all cooperative agreements entered into by the St. Anthony Police Department with other police services units. 91 Joint Powers Agreement for Police Services Page 5 A1. HEADQUARTERS Headquarters for services rendered to Lauderdale under this Agreement will be located at offices owned or leased by St. Anthony. The citizens of Lauderdale may notify headquarters or Ramsey County radio dispatch for police services requested either in person or by some other means of communication. St. Anthony officers may take routine telephone calls and complete routine reports for Lauderdale at the Lauderdale City Hall, and Lauderdale will have facilities available to the officers at Lauderdale City Hall for this purpose. The facilities will include a desk, telephone, fax and copier. All. EMPLOYEES OF ST. ANTHONY Officers assigned to duty in Lauderdale will at all times be employees of St. Anthony. All obligations with regard to workers compensation, PERA, withholding tax, insurance, and similar personnel and employment matters will be the obligation of St. Anthony. Lauderdale will not be required to furnish any fringe benefits or assume any other liability of employment to any officer assigned to duty within Lauderdale. XIV. ENFORCEMENT POLICIES Enforcement policies of St. Anthony will prevail as the enforcement policies within Lauderdale. A written statement of the current enforcement policies of St. Anthony will be provided in writing to Lauderdale. XV. ENFORCEMENT OF ORDINANCES OF THE CITY OF LAUDERDALE St. Anthony officers assigned to duty within Lauderdale will enforce Lauderdale ordinances to the extent appropriate for enforcement by police officers. XVI. OFFICERS OF LAUDERDALE The officers assigned duty within Lauderdale will be provided with authority to enforce the laws of the City of Lauderdale by proper action to be taken by the Lauderdale City Council, and while performing services under this Agreement will be considered police officers of Lauderdale. The Chief of Police of St. Anthony will furnish to the Lauderdale City Administrator the names of all St. Anthony police officers assigned to Lauderdale and all such officers will be appointed officers of the City of Lauderdale. 92 Joint Powers Agreement for Police Services Page 6 XVII. OFFENSES All offenses within Lauderdale charged by police officers under this Agreement will be charged in accordance with Lauderdale ordinances when possible; otherwise, the charge will be made in accordance with the laws of the State of Minnesota or the laws of the United States of America. XVIII. COMMUNICATIONS St.Anthony agrees to provide the Lauderdale Administrator with weekly, monthly and annual police reports, in a format as is mutually agreed to by the St. Anthony Police Chief and the Lauderdale City Administrator. The St. Anthony Police Chief will regularly communicate with the Lauderdale City Administrator in order to ensure that Lauderdale is knowledgeable about any police activity in the City, and at the request of the Administrator the Police Chief will make presentations to the Lauderdale City Council. XIX. PROSECUTION AND REVENUES Lauderdale will pay all costs of prosecution for all offenses charged within its boundaries or under its ordinances. LEAA funds and confiscated drug funds will be retained by St. Anthony. Fine revenues will be paid to Lauderdale. P.O.S.T. training funds will be used for officer training. XX. CONTINUATION OF AGREEMENT This Agreement will be effective January 1, 2005 and will continue until terminated as described in Paragraph XXI below. Inconsideration for services provided under this Agreement, St. Anthony and Lauderdale shall establish the fee for police services on a biennial basis on or before May 15th of the even numbered year preceding each biennium. XXI. TERMINATION OF AGREEMENT Either St. Anthony or Lauderdale may terminate the Agreement by submitting a written notification to terminate to the City Administrator of Lauderdale and the City Manager of St. Anthony by April 15th of even numbered years that St. Anthony or Lauderdale intends to terminate the Agreement. Termination of this Agreement shall be effective on December 31st at 11 :59 of the year that either St. Anthony or Lauderdale terminate the Agreement. 93 Joint Powers Agreement for Police Services Page 7 XXII. REVIEW OF AGREEMENT From time to time the terms and conditions of this Agreement shall be reviewed and revised as St. Anthony and Lauderdale deem necessary. XXIII. ASSIGNMENT The rights and obligations of the parties under this Agreement will not be assigned, and St. Anthony will not subcontract for any services to be furnished to Lauderdale (except as otherwise provided in this Agreement), without the prior written consent of the other party. The parties hereto have executed this Agreement as of the date first above stated. CITY OF LAUDERDALE CITY OF ST. ANTHONY By: By: Mayor Mayor By: By: City Administrator City Manager Date: Date: FUTURE COUNCIL AGENDA ITEMS Updated May 4, 2004 Meeting Date Meeting Type Staff Items/Issues May 25 Regular Planning Commission issues of May 18th R. Larson & S. Bonniwel l Finance 2003 Annual Report/2003 Audit J. Gilligan Charitable Gambling Ordinance, Second Reading June 8 Regular J. Gilligan Charitable Gambling Ordinance, Third Reading June 22 Regular Planning Commission issues of June 15 Ehlers Development Agreement with Dominium Group July 13 Regular May 2®®4 Monthly Planner Maw Apr 2004 Jun 2004 1 S M T W T F S S M T W T F S 1 2 3 1 2 3 4 5 4 5 6 7 8 9 10 6 7 8 9 10 11 12 11 12 13 14 15 16 17 13 14 15 16 17 18 19 18 19 20 21 22 23 24 20 21 22 23 24 25 26 25 26 27 28 29 30 27 28 29 30 2 3 4 5 6 7 8 9 10 11 12 13 14 15 7:00 pm Parks 7:00 pm Council Commission Meeting Meeting 16 17 18 19 20 21 22 7:00 pm Planning Commission Meeting 23 24 25 26 27 28 29 7:00 pm Council Meeting 30 31 Memorial Day Holiday Printed by Calendar Creator for Windows on 5/4/2004 June 2®®4 Monthly Planner 1 2 3 4 5 6 7- 8 9 10 11 12 7:00 pm Council Meeting 13 14 15 16 17 18 19 7:00 pm Parks 7:00 pm Commission Planning Meeting Commission Meeting 20 21 22 23 24 25 26 7:00 pm Council Liquor Store Meeting Celebration 4-8 pm Public Works Grand Opening 4-7pm 27 28 29 30 May 2004 Jul 2004 Central Park S M T W T F S S M T W T F S Dedication 1 1 2 3 2 3 4 5 6 7 8 4 5 6 7 8 9 10 9 10 11 12 13 14 15 11 12 13 14 15 16 17 16 17 18 19 20 21 22 18 19 20 21 22 23 24 23 24 25 26 27 28 29 25 26 27 28 29 30 31 30 31 Printed by Calendar Creator for Windows on 5/4/2004 INVESTMENT PORTFOLIO: 03/31/2004 Interest Date 4/M GENERAL $874,000 HERTZ FLEET FUNDING COMM PAPER 1.015% 03/02/04 04/26/04 $872,664.72 $872,664.72 41M ARMY-WATER FILTRATION $1,250,000 FED HOME LOAN BANK-ZERO COUPON 7.00% 11107/01 02122/29 $191,662.50 $ 200,000 FED HOME LOAN BANK-ZERO COUPON 6.02% 02/04/03 02/04/28 $101,033.87 $1,105,000 LOCKHART FUNDING LLC COMM PAPER 1.026% 02/26/04 04/26/04 $1,103,139.92 $1,395,836.29 DAIN RAUSCHER-GENERAL GNMA POOL 6472 7.50% 07/01/75 07/15/05 $175.24 GNMA POOL 14376 7.50% 03/01177 03/15/07 $532.19 GNMA POOL 23364 9.00% 09/01178 09/15/08 $304.52 GNMA POOL 23356 9.00% 11101178 11/15/08 $708.66 $100,000 FNMA MEDIUM TERM NOTE 6.00% 07/25/02 07/25/22 $100,000.00 $100,000 FNMA MEDIUM TERM NOTE 5.00% 03/24/04 04/01/20 $100,000.00 $670,000 FED HOME LOAN MTG-ZERO COUPON 7.150% 01/22/02 02/22/29 $99,948.90 $1,207,000 GENERAL ELECTRIC COMM PAPER 1.006% 03/02/03 04/26/04 $1,205,012.04 $1,506,681.55 DAIN RAUSCHER-HONEYWELL $100,000 LASELLEBANK-ZERO COUPON BOND 6.50% 09/11/02 09/11/22 $27,798.64 $100,000 STANDARD FEDERAL-'ZERO COUPON BOND 6.50% 09/11/02 09/11/22 $27,798.64 $100,000 LASELLE BANK-ZERO COUPON BOND 6.375% 01/08/03 01/22/23 $28,480.61 $100,000 STANDARD FEDERAL-ZERO COUPON BOND 6.375% 01/08/03 01/22/23 $28,480.61 $100,000 LASELLE BANK-ZERO COUPON BOND 6.25% 02/19/03 02/19/23 $29,170.00 $100,000 STANDARD FEDERAL-ZERO COUPON BOND 6.25% 02/19/03 02/19/23 $29,170.00 $654,000 GENERAL ELECTRIC COMMECIAL PAPER 1.056% 02126/04 04/26/04 $652,983.14 $15,000 FEDERAL HOME LOAN MORTGAGE 5.50% 03/15/04 12/15/15 $15,000.00 $838,881.64 DEAN WITTER $680,000.00 FEDERAL HOME LOAN MORTGAGE-ZERO 7.10% 06115/01 04/05/19 $97,722.56 $520,000.00 MERRILL LYNCH ZERO COUPON BOND 6.00% 09/24/02 09/15/18 $199,477.00 $476,000.00 GENERAL ELECTRIC COMM PAPER 1.005% 03110/04 05/10/04 $475,346.69 $476,000.00 AMERCIAN EXPRESS COMM PAPER 1.005% 03/10/04 061/0/04 $475,026.84 $200,000.00 FHLMC MED TERM NOTE-STEP UP 6.50% 12/28/01 12/15/16 $200,000.00 $200,000.00 FED HOME LOAN BANK MED TERM NOTE 5.976% 08/27/02 10/25/16 $200,000.00 $100,000.00 FED HOME LOAN BANK MED TERM NOTE 6.00% 11/26/02 10/22/27 $100,000.00 $200,000.00 FNMA MEDIUM TERM NOTE 5.00% 03/10/04 09/12/13 $200,000.00 $200,000.00 FNMA MEDIUM TERM NOTE 5.00% 03/10/04 03/19/14 $200,000.00 $50,000.00 FNMA MEDIUM TERM NOTE 5.54% 03/19/04 03/11/19 $50,000.00 $2,197,573.09 DAIN RAUCHER-(HRA) $200,000-FNMA-9334 P/O 7.24% 04/20193 03/25/23 $10,892.10 $100,000-FHLMC MEDIUM TERM NOTE - STEP UP 4.00-6.50% 03/18/04 04/12/19 $100,000.00 $175,000- FNMA COUPON- 5.520% 5.520% 03/30/04 04/12/19 $175,000.00 $200,000-FNMA COUPON- STEP UP 4.00-8.00% 03/01/04 02/10/12 $200,000.00 $485,892.10 TOTAL BOOK VALUE $7,297,529.39 ----------------- ----------------- Time4126/2004 MONTHLY INVESTMENT REPORT MARCH 2O041NVESTI INVESTMENT PORTFOLIO: 03/31/2004 Interest Date 4/M GENERAL $874,000 HERTZ FLEET FUNDING COMM PAPER 1.015% 03/02/04 04/26/04 $872,664.72 $872,664.72 41M ARMY-WATER FILTRATION $1,250,000 ,FED HOME LOAN BANK-ZERO COUPON 7.00% 11/07/01 02/22129 $191,662.50 $ 200,000 FED HOME LOAN BANK-ZERO COUPON 6.02% 02/04/03 02/04/28 $101,033.87 $1,105,000 LOCKHART FUNDING LLC COMM PAPER 1.026% 02/26/04 04/26104 $1,103,139.92 $1,395,836.29 DAIN RAUSCHER-GENERAL GNMA POOL 6472 7.50% 07101/75 07/15/05 $175.24 GNMA POOL 14376 7.50% 03101177 03/15/07 $532.19 GNMA POOL 23364 9.00% 09/01/78 09/15/08 $304.52 GNMA POOL 23356 9.00% 11/01/78 11/15/08 $708.66 $100,000 FNMA MEDIUM TERM NOTE 6.00% 07/25/02 07/25/22 $100,000.00 $100,000 FNMA MEDIUM TERM NOTE 5.00% 03/24/04 04/01/20 $100,000.00 $670,000 FED HOME LOAN MTG-ZERO COUPON 7.150% 01/22/02 02/22/29 $99,948.90 $1,207,000 GENERAL ELECTRIC COMM PAPER 1.006% 03/02/03 04/26/04 $1,205,012.04 $1,506,681.55 DAIN RAUSCHER-HONEYWELL $100,000 LASELLE BANK-ZERO COUPON BOND 6.50% 09/11/02 09/11/22 $27,798.64 $100,000 STANDARD FEDERAL-ZERO COUPON BOND 6.50% 09/11/02 09/11/22 $27,798.64 $100,000 LASELLEBANK-ZERO COUPON BOND 6.375% 01/08/03 01/22/23 $28,480.61 $100,000 STANDARD FEDERAL-ZERO COUPON BOND 6.375% 01/08/03 01/22/23 $28,480.61 $100,000 LASELLE BANK-ZERO COUPON BOND 6.25% 02/19/03 02119123 $29,170.00 $100,000 STANDARD FEDERAL-ZERO COUPON BOND 6.25% 02/19/03 02/19/23 $29,170.00 $654,000 GENERAL ELECTRIC COMMECIAL PAPER 1.056% 02/26/04 04/26/04 $652,983.14 $15,000 FEDERAL HOME LOAN MORTGAGE 5.50% 03115/04 12/15/15 $15,000.00 $838,881.64 DEAN WITTER $680,000.00 FEDERAL HOME LOAN MORTGAGE-ZERO 7.10% 06/15/01 04/05/19 $97,722.56 $520,000.00 MERRILL LYNCH ZERO COUPON BOND 6.00% 09/24/02 09/15/18 $199,477.00 $476,000.00 GENERAL ELECTRIC COMM PAPER 1.005% 03/10/04 05/10/04 $475,346.69 $476,000.00 AMERCIAN EXPRESS COMM PAPER 1.005% 03110/04 06110/04 $475,026.84 $200,000.00 FHLMC MED TERM NOTE-STEP UP 6.50% 12/28101, 12/15/16 $200,000.00 $200,000.00 FED HOME LOAN BANK MED TERM NOTE 5.976% 08/27/02 10125/16 $200,000.00 $100,000.00 FED HOME LOAN BANK MED TERM NOTE 6.00% 11/26/02 10/22127 $100,000.00 $200,000.00 FNMA MEDIUM TERM NOTE 5.00% 03110/04 09/12/13 $200,000.00 $200,000.00 FNMA MEDIUM TERM NOTE 5.00% 03110/04 03/19/14 $200,000.00 $50,000.00 FNMA MEDIUM TERM NOTE 5.54% 03/19/04 03/11/19 $50,000.00 $2,197,573.09 DAIN RAUCHER-(HRA) $200,000-FNMA-9334 P/O 7.24% 04/20/93 03/25/23 $10,892.10 $100,000-FHLMC MEDIUM TERM NOTE - STEP UP 4.00-6.50% 03/18/04 04/12/19 $100,000.00 $175,000- FNMA COUPON- 5.520% 5.520% 03/30/04 04112/19 $175,000.00 $200,000-FNMA COUPON- STEP UP 4,00-8.00% 03/01/04 02/10/12 $200,000.00 $485,892.10 TOTAL BOOK VALUE $7,297,529.39 ----------------- ----------------- Time4/26/2004 MONTHLY INVESTMENT REPORT MARCH 2O041NVESTI CITY OF ST. ANTHONY HOUSING AND REDEVELOPMENT AUTHORITY AGENDA May 11 , 2004 Call to Order. Roll Call. I. Approval of May 11, 2004, H.R.A. Agenda. II. Consent Agenda. These items are considered routine and will be enacted by one motion. There will be no separate discussion of these items unless a Councilmember or citizen so requests, in which event the item will be removed from the Consent Agenda and placed elsewhere on the agenda. A. Approve April 13, 2004, H.R.A. Minutes. (pp. 1-2) B. Claims. (pp. 3) 111. Public Hearings. A. Resolution 04-007; Proposed acquisition of property by exercise of power of eminent domain. Jerry Gilligan, Dorsey & Whitney, will be present. (action requested) (pp.4-6) B. Resolution 04-006; Approve New Date for Phase ll 'of Silver Lake Village. (action requested) (pp.7-15) IV. General Policy of Business of the H.R. A. V. Staff Reports. VI. H.R.A. Commissioner Comments. VII. Information and Announcements. VIII. Adjournment. 01 1 CITY OF ST. ANTHONY 2 3 HOUSING AND REDEVELOPMENT AUTHORITY MEETING 4 5 APRIL 13, 2004 6 7 CALL TO ORDER. 8 Chair Hodson called the meeting to order at 8:12 p.m. 9 10 ROLL CALL. 11 Commissioners present: Chair Hodson; Commissioners Horst, Stille, Thuesen, and Faust. 12 Commissioners absent: None. 13 Also present: Executive Director Michael Morrison. 14 15 I. APPROVAL OF APRIL 13, 2004, H.R.A. AGENDA. 16 Motion by Commissioner Faust, seconded by Commissioner Horst, to approve the April 13, 17 2004, Housing and Redevelopment Authority Agenda as presented. 18 19 Motion carried unanimously. 20 21 II. CONSENT AGENDA. 22 Motion by Commissioner Faust, seconded by Commissioner Thuesen, to approve the Consent 23 Agenda, which consisted of: 24 25 A. H.R.A. Meeting Minutes of March 23, 2004; and 26 B. Claims. 27 28 Motion carried unanimously. 29 30 III. PUBLIC HEARINGS. 31 None. 32 33 IV. GENERAL POLICY BUSINESS OF THE H.R.A. 34 None. 35 36 V. STAFF REPORTS. 37 None. 38 39 VI. H.R.A. COMMISSIONER COMMENTS. 40 None. 41 42 VII. INFORMATION AND ANNOUNCEMENTS. 43 None. 44 45 VIII. ADJOURNMENT. 46 Chair Hodson adjourned the meeting at 8:13 p.m. 47 48 ®2 Housing and Redevelopment Authority Meeting Minutes March 23, 2004 Page 2 1 Respectfully submitted, 2 3 Marjorie R. Jenkins 4 Timesaver Off Site Secretarial, Inc. ACS FINANCIAL SYSTEM ST. ANTHONY VILLAGE 05/03/2004 09: Check Register GL540R-V06.60 PAGE 1 BANK VENDOR CHECK# DATE AMOUNT HRA1 HOUSING & REDEV CHECKING 007256 BELAIR BUILDERS, INC. 5445 05/12/04 21,759.75 002380 CENTERPOINT ENERGY MINNE 5446 05/12/04 2,274.75 _ 009031 CONWORTH, INC. 5447 05/12/04 460.00 008985 C70 ASSOCIATES 5448 05/12/04 5,000.00 008667 DAHLGREN, SHAR.DLOW AND U 5449 05/12/04 5,119.45 - 000820 DORSEY & WHITNEY 5450 05/12/04 27,240.32 008698 EHLERS & ASSOCIATES, INC 5451 05/12/04 6,868.75 008892 GOODWIN COMMUNICATIONS G 5452 05/12/04 950.00 _ 008273 WSB & ASSOCIATES, INC. 5453 05/12/04 381.50 HOUSING & REDEV CHECKING 70,054.52 *** W 04 REQUEST FOR COUNCIL CONSIDERATION (� m. t1® Report Date: May 5, 2004 a e V Meeting Date: May 11 , 2004 Agenda Section: H.R.A. ITEM DESCRIPTION: Resolution 04-007; Condemnation of said properties and one lease. MANAGER'S REVIEW: Please find enclosed HRA Resolution 04-007 as prepared by Jerry Gilligan, of Dorsey Whitney for the condemnation of 3 properties and one lease in the Silver Lake Village Redevelopment. . As we did with the Cub parcel the H.R.A. is required to hold a public hearing on the condemnation of said properties and one lease. Jerry Gilligan, of Dorsey Whitney will be present to discuss the issue with Council. Recommendation: H.R.A. Approval of Resolution 04-007 for condemnation of said properties and one lease. l� Michael Mornson Executive Director � . k � � � z v � � _�� �.eke �• P` Fri ";,4,z " r3AA,v�.s ay(8 �•.:. Y r aE < "k.171i�j�yr.�,?��'�?!�`�$ -'a'�'�, "�a� �ey'�.� 3� <. b = a J• g � v�' � ��p � II Vey `� � '�� ��, - e t ten' �'.T i'qq""'y<x 3•'A �".. `2 �` �q" La S .► � ;fir b' (� ra 1v a d F Village Properties 7� &� " Apache AAry Tires Plus J. A. Cadwallader 3 � k sly RB a i�•egi- ,r •��&�'f'� �s � - F a,. ''� $ � a'a+�aP �U#'��"''�' � i� � �� nx�k ��: •Y '...�. had ro ,� V �r '.� 9�� 0 KIM a. ,A Va i �Y AERIAL PHOTOGRAPHY o ,so 3 .o MI/J/SB. C� ST, ANTHONY VILLAGE Q N �� �.���. 11 0ORSE ' 05 DORSEY & WHITNEY L i MEMORANDUM TO: Mayor and Members of the City Council Michael Mornson, City Manager FROM: Jerome P. Gilligan DATE: May 5, 2004 RE: HRA Resolution Authorizing Condemnation of Certain Property in Connection with the Silver Lake Development Pursuant to the terms of the Redevelopment Agreement between the HRA and Apache Redevelopment LLC, the HRA has received a request from Apache Redevelopment LLC for the HRA to authorize the acquisition by eminent domain of certain properties to be redeveloped in accordance with the Redevelopment Agreement. The proposed properties are defined in the Redevelopment Agreement as the Authority Parcels (the "Authority Parcels"), and consist of the properties owned by J.A. Cadwallader Real Estate, Inc., Village Properties (Ken Solie) and Apache Square Paramount Properties. In addition, to date the HRA has been unable to negotiate a termination of the Tires Plus lease. This lease needs to be terminated in order for the HRA to transfer the Liquor Store/Tires Plus parcel as required by the Redevelopment Agreement and the Liquor Store Purchase Agreement. Since this lease is not yet terminated it is necessary at this time for the HRA to authorize the acquisition of the interests of the lessee in the Tires Plus lease by eminent domain. The HRA is scheduled to hold a public hearing on this matter at its meeting on May 11. Under Minnesota Statutes, Section 469.012, the HRA may not adopt a resolution authorizing - condemnation unless it has first held a public hearing on the proposed condemnation. Following the public hearing I recommend that the HRA adopt a resolution authorizing the condemnation of the Authority Parcels and the interests of the lessee in the Tires Plus lease. It is expected that Apache Redevelopment LLC will be able to purchase the Authority Parcels directly, so until directed by the developer following the adoption of the resolution no . action will be taken by the HRA to commence a condemnation proceeding with respect to the Authority Parcels. However, unless the HRA is able to obtain a termination of the Tires Plus lease the HRA will need to immediately commence a condemnation proceeding with respect to such lease following adoption of the resolution. DORSEY&WHITNEY LLP 06 HOUSING AND REDEVELOPMENT AUTHORITY OF ST. ANTHONY,MINNESOTA. RESOLUTION NO. 04-007 WHEREAS, the Housing and Redevelopment Authority of St. Anthony, Minnesota.(the "HRA"), a body politic and corporate under the laws of the State of Minnesota,has adopted a redevelopment plan entitled"Redevelopment Plan for Redevelopment Project Area No. 3,"together with certain modifications thereto (as so modified; the"Redevelopment Plan"), which establishes Redevelopment Project Area No. 3 of the BRA; and WHEREAS, the HRA, the City of St. Anthony,Minnesota(the"City") and Apache Redevelopment LLC ("St. Anthony Redevelopment"),have entered into a Redevelopment Agreement, dated December 19, 2003 (the "Redevelopment Agreement"), which provides for the development and redevelopment of property in Redevelopment Project Area No. 3 of the BRA by the HRA, the City and St. Anthony Redevelopment; and WHEREAS, St. Anthony Redevelopment has determined that in order to perform its obligations under the Redevelopment Agreement it will be necessary for the HRA to commence the proceedings for the acquisition by the BRA by its powers of eminent domain of the Authority Parcels (as those terms are defined in the Redevelopment Agreement), and pursuant to the terms of the Redevelopment Agreement has given the HRA a request to adopt a resolution commencing such action; and WHEREAS, in order for the BRA to perform its obligations under the Redevelopment Agreement it will be necessary for the HRA to commence the proceedings for the acquisition by the BRA by its powers of eminent domain of the rights of the lessee.,if any, under the Lease Agreement between the HRA and Ronald and Judith Rasmussen,dba Tires Plus, as lessee with respect to property located at 3800 Silver Lake Road (the "Tires Plus Lease") and pursuant to the terms of the Redevelopment Agreement has given the BRA a request to adopt a resolution commencing such action; and WHEREAS, on May 11, 2004, the Board of Commissioners of the HRA held a public hearing on the proposed acquisition of such property by the HRA by its power of eminent domain; NOW, THEREFORE,BE IT RESOLVED, that in order to provide for the redevelopment of the property in Redevelopment Project Area No. 3 that is subject to the Redevelopment Agreement in a manner that would meet the objectives and purposes of the Redevelopment Plan, the BRA proceed to acquire all right title and interest to the Authority Parcels and to the rights of the lessee, if any, under the Tires Plus Lease under its power of eminent domain; and the attorneys for the BRA are instructed and directed to file the necessary petition therefor with respect to the Tires Plus Lease, and to file the petition therefore with respect to any of the Authority Parcels at the direction of St. Anthony. Redevelopment in accordance with the terms of the Redevelopment Agreement, and to prosecute such action to a successful conclusion, or until it is abandoned, dismissed or terminated by the BRA or the Court; and that the attorneys for the BRA, the Executive Director of the BRA and the officers of the BRA do all things necessary to be done in the commencement,prosecution and successful termination of such eminent domain proceeding. i 07 BE rr FURTHER RESOLVED, that it is hereby found and declared that the acquisition of sue, - i property by the HRA under its power of eminent domain is necessary to redevelop blighted and substandard areas in the Redevelopment Project Area No. 3. Adopted this day of , 2004. Chief Review for Administration: Executive Director 2 i 08 i HOUSING AND REDEVELOPMENT AUTHORITY OF ST.ANTHONY,MINNESOTA RESOLUTION 04-006 A RESOLUTION APPROVING EXTENSION OF TIME LINE FOR PHASE H DEVELOPMMENT—NORTHWEST QUADRANT AREAS, the City of St. Anthony (the"City") and the St. Anthony Housing and Redevelopment Authority (the "BRA")have executed a Development Agreement with Apache Redevelopment LLC for the redevelopment of the Northwest Quadrant. WHEREAS, in accordance with Section 8.1 of the agreement, the developer is requesting the new date to submit proforma and plan information be extended to October 15, 2004 and the date to enter into a contract addendum.be extended to December 31, 2004. NOW,THEREFORE,BE IT RESOLVED A RESOLUTION APPROVING THE EXTENSION OF TIME-LINE FOR PHASE II, NORTHWEST QUADRANT DEVELOPMENT. Adopted this 11th day of May , 2004. Chair Review for Administration: Executive Director i 09 REQUEST FOR COUNCIL CONSIDERATION � ain thou Report Date. May 5, 2004 e Meeting Date: May 11, 2004 Agenda Section: HRA ITEM DESCRIPTION: Extension of Time Line for Phase II Development = Northwest Quadrant. MANAGER'S REVIEW: In the development agreement approved by the City on December 16, 2003, the Developer was to enter into an agreement by May 31, 2004, with the HRA to construct Phase II development. Because of the time spent putting Phase I project together, the developer is asking for an amendment to the developer agreement to give them until December 31, 2004. Both the Council and H.R.A. need to approve. Stacie Kvilvang from Ehlers, will be present to explain this extension. Recommendation: H:R.A. Approval of Resolution 04-041for extension of Time Line for Phase II of Northwest Quadrant.Development. Michael Mornson �) Executive Director 10 E H L E & ASSOCIATE'S INC To: Mike Momson—City Manager O From: Stacie Kvilvang—Associate Financial Advisor W Date: May 5,2004 Subject: Extension of Time Line for Phase H Development—Northwest Quadrant Redevelopment On December 19, 2003, the City Council and Housing and Redevelopment Authority (HRA) executed a Development Agreement with Apache Redevelopment LLC for the redevelopment of the Northwest Quadrant. According to Section 8.1 of the agreement, the Developer was to submit detailed site plans and proformas to the City by March 15, 2004, for Phase H of the development. Based upon review of this information and negotiations between the two parties, the Developer and HRA were to enter into the Phase H contract addendum by May 31, 2004. As you recall, the Phase H development was comprised of the senior condo/co-op, the high- end town homes and additional stacked flats and were to be located on the properties located along Stinson Boulevard and the existing 39th Avenue. Due to the extensive time that the Developer has needed to expend on expediting and finalizing all the components of Phase I of the development, they are requesting an extension of the above-mentioned timelines. The Developer is still interested in completing Phase H of the development and is requesting that the new date to submit proforma and plan information be extended to October 15, 2004 and that the date to enter into a contract addendum be extended to December 31, 2004. Please contact me at 651-697-8506 with any questions. cc: File LEADERS IN PUBLIC FINANCE 3060 Centre Pointe Drive Phone: 651-697-8506 Fax: 651-697-8555 Roseville, MN 55113-1105 skvilvang@ehlers-inc.com ' 11 FIRST AMENDMENT TO REDEVELOPMENT AGREEMENT BY AND AMONG THE CITY OF SAINT ANTHONY,MINNESOTA, THE HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF SAINT ANTHONY,MINNESOTA, AND APACHE REDEVELOPMENT,LLC May 12 FIRST AMENDMENT TO REDEVELOPMENT AGREEMENT THIS FIRST AMENDMENT TO REDEVELOPMENT AGREEMENT ("First Amendment")is made and entered into this_day of May, 2004,by and between the CITY OF SAINT ANTHONY, MINNESOTA, a Minnesota statutory city(the"City"), the HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF SAINT ANTHONY,. AE[NNESOTA, a public body corporate and politic organized and existing under the laws of the State of Minnesota(the"Authority"), and APACHE REDEVELOPMENT,LLC, a Minnesota limited liability company(the"Developer"). RECITALS WHEREAS,the Developer,the City and the Authority have previously entered into a Redevelopment Agreement dated as of December 19, 2003 (the"Redevelopment Agreement") and the capitalized terms used in this First Amendment shall have the meaning given them in the. Redevelopment Agreement; WHEREAS,pursuant to the Redevelopment Agreement,the Developer agreed to develop a Development located in the Project Area in two Phases; WHEREAS,under Section 8.1 of the Redevelopment Agreement, the Developer and the Authority agreed to resolve certain issues concerning Phase II by negotiating and entering into a Phase II Contract Addendum by May 31, 2004; WHEREAS,by letter dated April 22, 2004,the Developer has informed the Authority that delays in Phase I have necessitated delayed completion of the Phase II Contract Addendum, and the incidental technical, financial and legal analysis required by the Redevelopment Agreement; and WHEREAS,the Developer has requested that the original deadline,under Section 8.1, for completion of the Phase II Contract Addendum of May 31,2004 be extended until December 31, 2004, and that the deadline for providing pro form.as, more detailed site plans and other Project Element information be extended to October 15,2004. NOW,THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, each of them does-hereby covenant and agree with the other as follows: 1. Section 8.1 of the Redevelopment Agreement is hereby amended to read as follows: "Section 8.1 Phase II Timing, General Contract Structure. The Developer has been approved by the Authority to undertake Phase II of the Development,however the parties acknowledge that certain issues remain to be resolved prior to commencement of Phase II. The Developer has agreed to the Developer Fee Hold Back as provided in Section 11.5, as consideration and evidence of Developer's good faith intent to proceed with Phase H. The Parties shall proceed to resolve these issues and agree to enter into a supplement to this Agreement (the"Phase H Contract Addendum")to establish all terms of the Phase II portion of V 1 13 the Project not otherwise provided for herein. The Developer and Authority shall enter into the Phase U Contract Addendum as expeditiously as practical after further technical, financial and legal analysis by the City Consultants of the Phase H Development,but in no event later than December 31, 2004. Developer shall provide pro formas and more detailed site plans and other Project Element information not later than October 15, 2004 for at least the Phase IIA Senior Housing Element and the Phase IIB Townhouse Element to allow finalization of this-negotiation. The dates herein shall be subject to extension by up to sixty(60) days on the Developer's request,but any further extension shall be solely at the Authority's discretion. The Authority and Developer agree that the Phase HA Senior Housing Element and the Phase IIB Townhouse Element shall be the first priority Elements to be undertaken in the Phase H Development." 2. Except as herein amended, other terms and provisions of the Redevelopment Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the City,the Authority and Developer have caused this First Amendment to Redevelopment Agreement to be duly executed in their names and on their behalf, all on or as of the date first above written. CITY OF SAINT ANTHONY, 1VIINNESOTA By Its Mayor By Its City Manager 14 HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF SAINT z ANTHONY,NIINNESOTA By Its Chair/Commissioner. By Its Executive Director 15 APACHE REDEVELOPMENT,LLC j a Minnesota limited liability company By Its Chief Manager 4829-1121-3056\1 5/3!2004 12:06 PM Y � FAEGRE & BENSON LLP 2200 WELLS FARGO CENTER, 90 SOUTH SEVENTH STREET MINNEAPOLIS, MINNESOTA 55402-3901 TELEPHONE 612.766.7000 FACSIMILE 612.766.1600 www.faegre.com JOHN H.HERMAN jhemian@faegre.com 612.766.8908 April 22, 2004 City of St. Anthony Attn: Mike Momson, City Manager City Hall 3301 Silver Lake Boulevard St. Anthony, MN 55418 VIA E-MAIL AND U.S. MAIL Housing & Redevelopment Authority of the City of St. Anthony Attn: Mike Mornson, Executive Director City Hall 3301 Silver Lake Boulevard St. Anthony, MN 55418 Re: Development Agreement by and among the City of St. Anthony, Minnesota, the Housing & Redevelopment Authority of the City of St. Anthony, Minnesota, and Apache Redevelopment, LLC, Dated December 19, 2003 (the "Redevelopment Agreement"), Request for Certain Approvals and Modifications Dear Mr. Mornson: In connection with the above referenced Redevelopment Agreement, we represent Apache Redevelopment, LLC. The purpose of this letter is to present two matters for the consideration of the City and Housing Authority. (1) With respect to the Phase IA and IB For Sale Elements, Apache Redevelopment, LLC proposes to assign certain rights and obligations to Silver Lake Homes I, LLC,,a joint venture of Apache For Sale Redevelopment, LLC (an entity owned by the principals of Apache Redevelopment) and Hunt St. Anthony, LLC (an entity whose principal is Daniel E. Hunt). This assignment has been contemplated from the inception of the project, and I know you are well acquainted with Mr. Hunt and his extensive prior development portfolio of for sale housing. With the U.S. Mail copy of this letter, I enclose a copy of the Assignment and Assumption Agreement (the "Assignment") to be entered into between Apache Redevelopment and Silver Lake Homes I. You will note that this Assignment follows a similar format and provides for similar obligations on the part of the assignee as the Minnesota Colorado Iowa London Frankfurt Shanghai i Mike Mornson April 22, 2004 Page 2 previously approved Commercial Element Assignment Agreement approved by the Authority and City. Please advise me if you need any other information with respect to the assignee, its principals or the obligations under the Assignment. (2) With respect to Phase II of the Development, the current Redevelopment Agreement contemplates that the Developer and Authority would enter into a Phase 11 Contract Addendum in the first half of this year. As you are aware, the acquisition of the Three Commercial Parcels, the negotiation of the Rental Housing Purchase Agreement and the accelerated timetable for actual implementation of both the Commercial and For Sale Elements of Phase 1, have been exceptionally time consuming in the first six months of this year. While, as a result, we have Phase I going forward on an accelerated schedule, this has deflected our time and energy and makes attainment of the current contract dates for the Phase II Contract Addendum and the incident technical, financial and legal analysis by the City, not feasible. We would propose that the dates set forth in Section 8.1 with respect to the Phase II portion of the development be modified so that the date for entry into the Phase II Contract Addendum is extended to December 31, 2004, and the date for provision of pro formas, more detailed site plans and other project element information for the Phase IIA Senior Housing Element and the Phase IIB Townhouse Element is modified to October 15, 2004. (Note all capitalized terms have the meaning set forth in the Redevelopment Agreement.) Pursuant to our discussions at the last meeting, it was our understanding that the above two matters will be considered at the May 11 meetings of the City Council and Authority. Thank you for your consideration with respect to the above matters. Please advise if you have any other questions. Very truly yours, FAEGRE & BENSON LLP John H. Herman JHH:harj f cc: Stacy Kvilvang Jay Lindgren Jerry Gilligan Len Pratt Daryl Gemar Daniel Hunt M 1:1095379.01 PUBLIC HEARING AND/OR OPEN FORUM • PLEASE SIGN BELOW IF YOU WISH TO SPEAK AT A PUBLIC HEARING AND/OR OPEN FORUM ON N'ame Address �eAA.. 4 •