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HomeMy WebLinkAboutCC PACKET 06242003 Meeting Sheet IIIIII VIII VIII VIII VIII VIII IIII IIII 102991 Box: 29 Folder: CC PACKETS 2001-2004 Document: CC PACKET 06242003 f .r CITY OF ST. ANTHONY Our mission is to be a progressive and livable community, a walkable village, which is safe and secure. CITY COUNCIL MEETING AGENDA June 24, 2003 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 June 24, 2003 City Council Meeting Agenda. Action requested. IL Proclamations and Recognitions. III. Community Forum. Individuals may address the City Council about any item not included on the regular agenda. Speakers are requested to come to-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 or direct that the matter be scheduled on an upcoming agenda. IV. 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 June 10, 2003 Council meeting minutes. (pp. 1 - 8) B. Licenses and permits. (pp. 9 -10) C. Claims. (pp. 11 - 13) D. The third reading of the following ordinances: 1. 2003-003, re: Pawnbrokers. See Ordinance in packet. (22 pages) 2. 2003-004, re: Secondhand dealers. See Ordinance in packet. (19 pages) Page 2 3. 2003-005, re: Pawnbrokers and Secondhand Dealers as conditional uses in commercial districts. (p. 14) 4. 2003-006, re: Fees for investigation and licensing of Pawnbrokers and Secondhand Dealers. (p. 15) 5. 2003-007, re: Amend ordinance to allow adult day care centers as conditional uses in C zoned districts. (pp. 16 - 17) V. Public Hearings - None. VI. Reports From Commissions and Staff. A. Planning Commission - June 17, 2003. 1. Resolution 03 - 046, re: Side yard variance request; for 2813 - 361h Avenue NE. Action requested. (pp. 18 - 22) VII. General Policy Business of the Council. A. Resolution 03-045, re: Approval of a polling location change. Action requested. (p. 23) B. Resolution 03 - 043, re: Approve decertification of Kenzie Terrace Tax Increment Financing District. City Attorney Jerry Gilligan, Dorsey & Whitney, will be present. Action requested. (pp. 24 - 25) C. Ordinance 2003-008, re: CenterPoint Energy Minnegasco franchise renewal (1St reading). Jerry Gilligan, Dorsey & Whitney, will be present. Action requested. (p. 26 and the 7 page proposed ordinance) D. Resolution 03 - 044, re: Approve application for a grant through Livable Communities. Action requested. (pp. 27 - 28) E. Resolution 03 - 047, re: Approve redevelopment option for Stonehouse/SAV 1 and Fire Station site. Stacie Kvilvang, Ehlers & Associates, will be present. Action requested. (pp. 29 - 33) VIII. Reports From City Manager and Councilmembers. (pp. 34 - 35) IX. Information and Announcements. X. Miscellaneous Informational Documents. XI. Adjournment. ►! T" 01 City Council Regular Meeting Minutes June 10, 2003 Page 1 1 CITY OF ST. ANTHONY 2 3 CITY COUNCIL REGULAR MEETING MINUTES 4 5 June 10, 2003 6 7 CALL TO ORDER. 8 Mayor Hodson called the meeting to order at 7:00 p.m. 9 10 PLEDGE OF ALLEGIANCE. 11 Mayor Hodson invited the Council and audience to join him in the Pledge of Allegiance. 12 13 ROLL CALL. 14 Present: Mayor Hodson; Councilmembers, Sparks, Thuesen, and Faust. 15 Absent: Councilmember Horst. 16 Also Present: City Manager Mike Mornson. 17 18 CONSIDERATION, DISCUSSION,AND POSSIBLE ACTION ON ALL OF THE FOLLOWING 19 ITEMS. 20 21 I. APPROVAL OF JUNE 10, 2003 CITY COUNCIL MEETING AGENDA. 22 Motion by Councilmember Sparks to approve the City Council Meeting Agenda of June 10, 23 2003. 24 Motion carried unanimously. 25 26 27 II. PROCLAMATIONS AND RECOGNITIONS. 28 None. 29 30 III. COMMUNITY FORUM. ard at this time and address the Council on items 31 Mayor Hodson invited residents to come forw 32 that are not on the regular agenda. 33 34 Hearing none, Mayor Hodson moved forward with the agenda. 35 36 IV. CONSENT AGENDA. 37 38 A. Consider M y 28 2003 Council meeting minutes. 39 B. Consider licenses and permits. 40 C. Consider payment of claims. 41 D. The second reading of the following ordinances: 42 1.1 2003-003, re: Pawnbrokers. 43 1.2 2003-004 re: Secondhand Dealers. 44 1.3 2003-005 re: Pawnbrokers and Second Hand Dealers as conditional uses in 45 commercial districts. 46 1.4 2003-006, re: Fees for investigating and licensing of Pawnbrokers and 47 Secondhand Dealers. City Council Regular Meeting Minutes r' 02� June 10, 2003 Page 2 1 2 Motion by Councilmember Thuesen to approve the Consent Agenda items as presented. 3 4 Motion carried unanimously. 5 6 V. PUBLIC HEARINGS. 7 None. 8 9 VI. REPORTS FROM COMMISSIONS AND STAFF. 10 A. Resolution 03-042, re: Approve bid for Silver Point Park improvements. 11 Mayor Hodson welcomed Brad Forbrook, SEH, Inc., to the meeting. 12 13 Mr. Forbrook stepped forward to address the Council and presented the bids received for the 14 Silver Point Park improvements. He advised that they have made recommendations to award the 15 bid to the lowest bidder. He explained that bids were received for two contracts, one for the 16 building package and the second for installation of the building. He reviewed the bids with 17 Council stated that both came in very close to the projected budget. 18 19 Councilmember Sparks asked Mr. Forbrook if he has worked with either of the builders. Mr. 20 Forbrook stated that the City has worked with one of the builders adding that he is familiar but 21 has not worked with them. He stated that both are known for doing a good job. 22 23 Motion by Councilmember Faust to adopt Resolution 03-042, re: Approve bid for Silver Point 24 Park improvements. 25 26 Motion carried unanimously. 27 28 B. Inflow/Infiltration Report 29 Mayor Hodson welcomed Todd Hubmer, WSB & Associates, to the meeting. 30 31 Mr. Hubmer stepped forward to address the Council and provided an update on 32 inflow/infiltration study. He explained that one of the goals set for this year is to continue to 33 work to minimize the inflow and infiltration into the sewer water system. He provided the 34 Council with a brief review of the water system stating that City streets have two sewer systems, 35 the sanitary sewer and storm water sewer. He explained that a large percentage of residents 36 operate sump pumps that flow into the storm water sewer. He stated that this has to be 37 corrected, as they should be flowing into the sanitary sewer system. He reviewed the inspection 38 process with Council stating that they completed a citywide education program in 2002 that 39 included brochures and mailings to the general public. He explained that the mailings included 40 an explanation of the process and contact.information for any questions or concerns. He stated 41 that since 1999 the City has reconstructed approximately 17,000 feet of the sewer drainage 42 system, which should help reach their goal to reduce the inflow to the Metropolitan Waste 43 Control treatment center. He stated that the Metropolitan Council notified the City of St. 44 Anthony that treatment costs would increase due to the amount flowing through the treatment 45 center. He stated that treatment expenses have increased significantly. He suggested four 46 options for Council to consideration adding that they are looking for direction from Council on 47 the next step in the process. He reviewed the options with Council - ►/ f City Council Regular Meeting Minutes 03 June 10, 2003 Page 3 1 2 1. Continue mandatory inspections at the point of sale for homes in St. Anthony. 3 4 2. An aggressive door-to-door approach to each residence in order to identify those who are not 5 in compliance and would require upgrading to the new system. He stated that those who do not 6 comply within the allotted timeframe could incur a fee or fine and reviewed with the Council. 7 8 3. Continue an educational program that would utilize the City newsletter and cable access to 9 alert and update the residents. 10 11 4. St. Anthony Village could establish a grant program that would assist residents with the cost 12 to disconnect the systems. He stated that in addition to the door-to-door inspections, the City 13 could charge two different rates for sanitary. He explained that one rate would be assigned for 14 residents who have complied and another rate assigned for residents who are not in compliance. 15 He explained that residents who are not in compliance would be charged at a higher rate. 16 17 Mayor Hodson stated that he likes the idea of charging two different rates and asked Mr. 18 Hubmer if it would be possible to also incorporate, with this option, a grant process for the 19 residents to defray the costs that would include a repayment option that would not penalize the 20 resident immediately. Mr. Hubmer stated that the two options could be coordinated. He stated 21 that if the City decides to charge a higher fee for those not in compliance that the additional 22 money could be incorporated into the grant process in some way in order to assist residents who 23 are not in compliance. 24 25 Councilmember Faust asked if it would be possible to use the same assessment process for this 26 as they do for street improvements. He stated that he likes the idea of a two-rate system to 27 acknowledge residents who are in compliance. He expressed concerns stating that it is very 28 important to be sensitive to those who might need a way to pay over time. 29 30 City Manager Mornson agreed stating that they could implement a two-rate system that includes 31 a grant process. He stated that the City would have to adopt an ordinance noting that several 32 other communities have handled it the same way and it worked quite well. Councilmember 33 Faust agreed stating that this would work better for those who might not be able to afford a lump 34 sum payment. City Manager Momson stated that the charges could also be included as a part of 35 their utility bill. 36 37 Councilmember Thuesen asked for further clarification of the two-rate billing process. He asked 38 if they would begin charging the higher rate upon completion of the inspection or would they 39 assign a timeframe for the resident to come into compliance and if they do not complete within 40 the assigned timeframe that the City would begin to charge at the higher rate. Mr. Hubmer 41 stated that they are aware that some residents are already in compliance and some are not. He 42 stated that they have already completed some of the inspections and proposed implementing an 43 education program for the Residents that would include a timeline for completion. He suggested 44 giving the Residents an eight-month window to allow them an opportunity to ensure that they are 45 in conformance before the rate change is initiated. 46 04 , 1 City Council Regular Meeting Minutes June 10, 2003 Page 4 1 Councilmember Thuesen asked if homes sold in the past two years would be subjected to 2 another inspection. He agreed that incorporating an ongoing education component for the 3 Residents would be a good plan. He stated that he is in favor of the two-rate system adding that 4 it would not be fair to penalize residents who are in compliance. He stated that he is also in 5 agreement that a grant process of some kind should also be incorporated with the two-rate 6 system. He expressed his agreement with Councilmember Faust that the City should be sensitive 7 to residents who might not be able to afford a lump sum payment adding that they should offer 8 an option that would assist the homeowners with the costs. Mr. Hubmer clarified that 9 homeowners would not be subjected to a second inspection if they are on record as already 10 completing one. 11 12 Mayor Hodson stated that it is his understanding that approximately 75% of the residents are not 13 in compliance. He reviewed the process and concerns noting that the penalty would continue to 14 accrue until resolved. 15 16 Councilmember Sparks asked for clarification of the costs. Mr. Hubmer stated that last year the 17 City paid between $50-$70,000.00 for waste water treatment. He explained that they also have 18 several residents who experience sewage backup that causes damage on a yearly basis. He stated 19 that this is another major component that should be considered. 20 21 Councilmember Sparks stated that she prefers the lump sum payment adding that she is in 22 agreement that the City should establish a grant process to assist residents who cannot afford a 23 lump sum payment. 24 25 Mr. Hubmer explained that the Metropolitan Council receives 60-70% of what is paid for waste 26 treatment. Mayor Hodson stated that a two-rate structure would allow the City to reward 27 residents who are in compliance adding that if the City could reduce the 70% down to 40%that 28 it would be very beneficial to the City. 29 30 Councilmember Thuesen asked if there would be any incentives offered to those residents, who 31 on their own, fixed the problem in the past or paid for it out of their own pocket,because they 32 felt it was the right thing to do. 33 34 Councilmember Faust agreed that the City should implement a continued education process 35 utilizing the City Newsletter and cable TV. He suggested informing the residents that as of July 36 1, 2004 that there would a penalty for homeowners who have not had their homes inspected and 37 are not in compliance. He reviewed his understanding of the two-rate system stating that he has 38 an issue if some of the residents have already paid out of pocket. He stated that the assessment 39 would be a way to address that issue and provide some benefit back to the homeowner. He 40 stated that the assessment could be included in the bond rating in order to lower the interest 41 rates. — - - -- --- 42 43 Mayor Hodson stated that he is in support of a continued education program and the two-rate 44 system. He clarified that the Council is not prepared at this time, without further discussion, to 45 determine the assessment and penalty process. He agreed that implementing a grant process 46 could assist in subsidizing a portion of the repair for homeowners. 47 City Council Regular Meeting Minutes June 10, 2003 Page 5 1 Councilmember Thuesen asked how they could really measure the inflow from homes that are 2 not in compliance. Mr. Hubmer stated that they could review and compare the flow rates, based 3 on precipitation. He stated that they would be able to see where the flow rates drop for those 4 who are in compliance. He stated that it is not totally possible to determine how much, in 5 gallons, might have contributed to the sanitary sewer rates. 6 7 Councilmember Thuesen asked if this issue is 90% of their problem with wastewater inflow. 8 Mr. Hubmer explained that it would resolve the sewer backup problems and the flow rates into 9 the Waste Water plant. 10 11 Councilmember Sparks asked how much it would cost to implement a door-to-door campaign. 12 Mr. Hubmer stated that the costs would depend on how extensively they want to canvas the area. 13 He stated that it could get very expensive, as they would have hire outside help if they have a 6-8 14 month window for compliance. He stated that the biggest issue is time and staffing. 15 16 Councilmember Sparks asked if they have a large number of residents who want to upgrade at 17 the same time, would the City could get a reduced rate if they were to contract it as a project. 18 Mr. Hubmer stated that they could probably get a very good rate if they were to combine it as a 19 project. 20 21 Councilmember Faust suggested an ongoing educational process versus door-to-door canvassing. 22 He stated that they could educate the public with regards to the timeline for inspections adding 23 that this could give them a sense of scale that would allow them to move forward with a 24 contractor. He suggested that Mr. Hubmer put together a plan based on the ideas discussed and 25 present to Council for consideration. 26 27 Mr. Hubmer stated that he would take the information and formulate it into a plan for 28 presentation to Council. Mayor Hodson thanked Mr. Hubmer for his time stating that he has 29 provided the Council with excellent information to consider. 30 31 C. Resolution 03-041, Recommendation for lease option location for the temporal 32 station. 33 Fire Chief Hewitt explained that the Council is asked to adopt the draft resolution, which would 34 provide a new interim location for the fire station until the new fire station has been completed. 35 He reviewed the process they took to determine an interim location with Council. He stated that 36 it was important to locate a site that could be fully utilized without additional costs. He stated 37 that they have to vacate the current building by September 1, 2003 and relocate to a temporary 38 location where they would reside until the new fire station has been completed. He stated that 39 they plan to begin construction on May 312004 with a plan to occupy the new site by August 1, 40 2004. He explained that they have six career people who spend a fair amount of time at the fire 41 station adding that they want their employees to be fairly comfortable with adequate living space. 42 He explained that there is also a need for enough space to store their apparatus and they want to 43 minimize any negative impact to the operations while maintaining quality service and response 44 time. He reviewed their options with Council stating that they reviewed each location for 45 ground level access, the cost to bring in a manufactured home for office and living space, utility 46 costs, and storage. He reviewed the costs for each option stating that they also considered 47 housing at other fire station locations. He stated that they considered both Columbia Heights and I City Council Regular Meeting Minutes 06 2 June 10, 2003 3 ' Page 6 4 5 New Brighton as options noting that both locations would greatly affect their response times and 6 it would also increase their viability exposure if something critical should occur. He stated that 7' they recently found the Construction 70 site located in the Industrial park and reviewed with 8 Council. He stated that the location has room for all three apparatus in addition to adequate 9 living quarters, office space and storage. He stated that the only modification would be to punch 10 out a door for the apparatus. He stated that the cost to lease would be $5,000.00 a month with a 11 total cost of$55,000.00 over a ten-month period. He stated that it is their preference to relocate 12 at the Construction 70 site, as it would provide quality quarters for the firefighters, eliminate the 13 heating and weather concerns. He stated that they are requesting approval for ten-month lease 14 for the facility, offices, apparatus storage building and a punch-in for an 11-foot by 14-foot door. 15 16 Councilmember Sparks asked for further clarification of their choice for location. Fire Chief 17 Hewitt explained that the second option would have required that they move in a manufactured 18 home and a storage building. He stated that the location had heating and electrical issues that 19 would have had to be resolved before moving in and the fire trucks would have been inside a 20 fabric type building versus the storage building available at the Construction 70 site. 21 22 Councilmember Sparks asked if they considered any sites in the South Industrial Park area. Fire 23 Chief Hewitt stated that they did not review any locations in this area because of the access 24 requirements in addition to the number of uncontrolled intersections. He stated that it would 25 have also affected response time and travel time for the firefighters. He explained that one of the 26 key items the Task Force looked for was a site that provided good accessibility to the city and 27 would benefit the entire City with respect to response time. 28 29 Motion by Councilmember Faust to adopt Resolution 03-041, Recommendation for lease option 30 location for the temporary fire station. 31 32 Motion carried unanimously. 33 34 VII. GENERAL POLICY BUSINESS OF THE COUNCIL. 35 None. 36 37 VIII. REPORTS FROM CITY MANAGER AND COUNCILMEMBERS. 38 City Manager Momson reported on the following: 39 40 Due to relocation of the fire station, the City has to find a new polling location for this fall. He 41 stated that they are presently considering St. Charles Borromeo Catholic Church. 42 43 There will be an Auction on June 19, 2003 at 10:30 a.m. to sell off equipment from the 44 _ Stonehouse. He stated that items would be open for review at 8:30 a.m. 45 46 Morrison attended a meeting with Hennepin County regarding an easement issue on the 47 Stonehouse property. He noted that both the building and the property must be vacated to the 48 owner by closing on September 9, 2003. 49 50 ®7 1 City Council Regular Meeting Minutes 2 June 10, 2003 3 Page 7 4 5 Relating to the fire station property, closing of the Christen properties is tentatively scheduled for 6 June 24. The Christen's intend to lease the properties until July 15, 2003. Morrison distributed 7 handouts to the Council and explained that there are seven items still requiring review. 8 9 0 A Special Meeting to consider bids for the Public Works building will be held Tuesday, 10 September 30, 2003. 11 12 The LMC Conference is scheduled next week in St. Cloud. 13 14 The City Manager gave an update on the "Conceal and Carry Law", indicating the Community 15 Center will need to be signed to ban guns because the City rents part of the building. In addition, 16 an employee policy will be developed outlining the ban of weapons in the workplace. 17 .18 The TIF hearing is rescheduled to July 22, 2003 because the City Attorney has been unable to 19 sign off on the inspection work, as inspections have not been completed. 20 21 The City has received verification of another$250,000 from the DNR. He indicated this may be 22 the last large lump sum amount from the DNR. 23 24 The regular Council meeting for July 8 has been cancelled. 25 26 Councilmember Sparks attended the Growing Smart Minnesota seminar. She reviewed the 27 agenda and noted that Rich Varda from Target was one of the presenters. She stated that the 28 concept is very versatile and noted that they discussed how to integrate the concept with small 29 retail. Parking space requirements of one space for every 1,000 square feet of store were 30 discussed. Mr. Varda said this was over the amount of space needed for parking. Sparks 31 suggested Council review the City ordinance to determine if there is any need to revise the 32 requirements. The Councilmember stated she had more information for Council at a later date. 33 34 Councilmember Sparks referenced the map for the Northwest Quadrant and inquired about the 35 parking areas shown on the map. City Manager responded that presently what they see for 36 parking is the developer's concept of what they would need. 37 38 Councilmember Thuesen stated that he had nothing to report. 39 40 Councilmember Faust stated the Northwest Quadrant Task Force and BSU indicated that parking 41 would be planned with aesthetics in mind as well. 42 43 Mayor Hodson, City Manager Mornson and Councilmember Faust met with Congressman Sabo 44 to discuss issues. Faust stated that Congressman Sabo was instrumental in getting funding to do 45 the water filtration plant for St. Anthony. He explained that Congressman Sabo was given an 46 update on the Northwest Quadrant project, adding that the Congressman had suggestions and 47 ideas on how to keep dialogue open and work from the Federal level down. 48 49 08, 1 City Council Regular Meeting Minutes 2 June 10, 2003 3 Page 8 4 5 Councilmember Faust continued his report by noting he attended a meeting on June 2, 2003 6 regarding Salo, Finland, St. Anthony's Sister City. The Councilmember attended the joint 7 meetings with the Planning Commission, held on June 3, 2003 and the Parks Commission held 8 on June 9, 2003. 9 10 He attended the final blue Ribbon Task Force meeting on June 5, 2003 and said they would 11 submit documents for Council review. 12 13 Mayor Hodson indicated that the Council has "a lot on their plate" and that City Manager 14 Mornson has and will continue to coordinate and keep the Council up to date. The Mayor 15 thanked the Council for their preparedness for all the meetings. Mayor Hodson stated the 16 Council has many important decisions to make in the near future, noting that 98% of the 17 feedback received from the Community has been very favorable with respect to the projects 18 being done in the City. He thanked everyone for their hard work. 19 20 IX. INFORMATION AND ANNOUNCEMENTS. 21 22 X. MISCELLANEOUS INFORMATIONAL DOCUMENTS. 23 24 XI. ADJOURNMENT. 25 Motion by Councilmember Faust to adjourn the meeting at 8:00 pm. 26 27 Motion carried unaniously. 28 29 30 31 Respectfully submitted, 32 33 Bonita Sullivan 34 Timesaver Off Site 35 36 37 38 Mayor 39 40 ATTEST: 41 City Clerk 42 43 44 45 46 47 48 49 50 09 Saint Anthony Village DATE: June 24, 2003 Approved: TO: Mayor and Councilmembers FROM: Judy Monson, License Clerk ITEM: License and Permits.for Approval: Multiple Dwelling License: Apache Manor, 3817 Macalaster Drive D & J Propterties, LLC 3721 Chandler Drive Heating and Air Conditioning License: Sharp Heating &Air Conditioning, Inc., Fridley, MN Home Energy Center, Plymouth, MN Golden Valley Heating dba: Richmond& Sons Electric, Crystal, MN Master Mobile Home Service, Inc., Blaine, MN 55449 CenterPoint Energy Minnegasco, Anoka, MN Royalton Heating & Cooling, Brooklyn Park, MN Yale Mechanical, Bloomington, MN Sedgwick Heating&Air Conditioning, Minneapolis, MN Alliant Mechanical, Eagan,MN Centraire Heating & Air Conditioning, Inc., Eden Prairie, MN I 10 Saint Anthony Village DATE: June 24, 2003 Approved: TO: Mayor and Councilmembers I FROM: Judy Monson, License Clerk ITEM: Liquor Licenses Approval: Temporary 3.2 Beer and Wine License: Friday, August 1, 2003 5:30 p.m. to 7:00 p.m. St. Anthony Chamber of Commerce post-golf tournament pig-roast dinner at the Stonehouse parking lot BRC FINANCIAL SYSTEM ST. ANTHONY VILLAGE _ 06/17/2003 14: Check Register GL540R-V06.54 PAGE 2 BANK VENDOR CHECK# DATE AMOUNT FIRS BREMER BANK NA 007835 METROCALL 20296 06/25/03 198.32 .00004 METROPOLITAN AIRPORTS 20297 06/25/03 45.00 008467 MIDWAY FORD 20298 06/25/03 350.14 002280 MIDWEST ASPHALT CORP 20299 06/25/03 25.00 .00006 MINNESOTA STATE PATROL 20300 06/25/03 255.00 008326 NEWMAN TRAFFIC SIGNS 20301 06/25/03 41.31 008764 NFPA 20302 06/25/03 31.93 008350 NORTHERN TOOL & EQUIPMEN 20303 06/25/03 10.64 008761 NRG PROCESSING SOLUTIONS 20304 06/25/03 56.00 .00007 ODDITEE'S 20305 06/25/03 92.40 000045 OFFICE DEPOT 20306 06/25/03 197.87 001230 ONE CALL CONCEPTS, INC. 20307 06/25/03 99.20 008528 PACE ANALYTICAL SERVICES 20308 06/25/03 311.00 008805 PETTY CASH - BREMER BANK 20309 06/25/03 105.66 008369 POSTMASTER 20310 06/25/03 2,000.00 004492 QWEST 20311 06/25/03 239.42 008372 QWEST INTEPRISE AMERICA, 20312 06/25/03 49.95 008963 REED BUSINESS INFORMATIO 20313 06/25/03 305.76 003065 ROAD RESCUE EMERGENCY VE 20314 06/25/03 28.68 008876 S.M. HENTGES & SONS, INC 20315 06/25/03 180,583.98 008520 SENSIBLE LAND USE COALIT 20316 06/25/03 30.00 007072 ST ANTHONY CHAMBER OF CO 20317 06/25/03 160.00 003155 ST ANTHONY FIRE RELIEF A 20318 06/25/03 8.00 008846 STANTON GROUP 20319 06/25/03 158.78 .00008 STOUTEN/REBECCA TAPPE 20320 06/25/03 841.06 003490 STREICHER'S 20321 06/25/03 307.94 002630 SUN TURF 20322 06/25/03 148.67 008626 SURPLUS SERVICES 20323 06/25/03 15.00 008457 SWEEPER SERVICES 20324 06/25/03 79.88 008840 THOMAS WALKER CONSULTUNG 20325 06/25/03 720.00 007337 TIMESAVER OFF SITE SECRE 20326 06/25/03 203.66 008907 TOUSLEY FORD 20327 06/25/03 5.57 003560 TRACY PRINTING 20328 06/25/03 348.10 008859 U.S. BANK 20329 06/25/03 250.00 008561 UNITED RENTALS COMPANY 20330 06/25/03 45.88 005298 UNITED RENTALS HIGHWAY T 20331 06/25/03 21.29 008227 VERIZON WIRELESS, BELLEV 20332 06/25/03 175.56 008919 WINGFOOT COMMERCIAL TIRE 20333 06/25/03 2,487.22 002680 XCEL ENERGY 20334 06/25/03 13,761.83 003820 ZAHL EQUIPMENT COMPANY 20335 06/25/03 766.60 BREMER BANK NA 264,199.16 •*• ML ML BRC FINANCIAL SYSTEM ST. ANTHONY VILLAGE 06/17/2003 14: Check Register GL540R-VO6.54 PAGE 1 BANK VENDOR CHECK# DATE AMOUNT FIRS BREMER BANK NA 000020 AA BATTERY CO 20248 06/25/03 26.63 .008511 AT&T WIRELESS 20249 06/25/03 9.76 008255 AVAYA, INC. 20250 06/25/03 29.32 000320 BEISSWENGER APPLIANCE 20251 06/25/03 1.05 008555 BIFFS, INC. 20252 06/25/03 547.64 008869 BORGEN RADIATOR 20253 06/25/03 112.00 007253 BRAKE & EQUIPMENT WAREHO 20254 06/25/03 30.18 000430 BRIGHTON AUTO ELECTRIC 20255 06/25/03 76.76 008904 BUREAU CRIMINAL APPREHEN 20256 06/25/03 120.00 008652 CARTRIDGE CARE 20257 06/25/03 340.26 007386 CASTLE INSPECTION SERVIC 20258 06/25/03 2,341.82 002380 CENTERPOINT ENERGY MINNE 20259 06/25/03 4,128.49 008542 CITY OF MOUNDS VIEW 20260 06/25/03 36.75 008577 CITY OF ST. PAUL 20261 06/25/03 1,152.12 .00002 COLUMBIA HEIGHTS RENTAL 20262 06/25/03 66.17 008950 COMCAST 20263 06/25/03 4.65 007382 CROWN FENCE & WIRE COMPA 20264 06/25/03 10.65 005234 CRYSTEEL TRUCK EQUIPMENT 20265 06/25/03 30.08 000785 DALCO 20266 06/25/03 117.98 000807 DIAMOND VOGEL PAINTS 20267 06/25/03 120.33 007371 DISCOUNT STEEL, INC. 20268 06/25/03 11.53 008921 DYNAMEX 20269 06/25/03 14.15 008666 EASYLINK SERVICES CORPOR 20270 06/25/03 101.50 008809 ELAN FINANCIAL SERVICES 20271 06/25/03 145.94 008362 EMBEDDED SYSTEMS, INC. 20272 06/25/03 296.00 008647_ FRATTALLONE'S HARDWARE 20273 06/25/03 88.79 001030 G & K SERVICES INC 20274 06/25/03 283.89 001110 GENERAL IND SUPPLY 20275 06/25/03 9.60 001145 GLENWOOD INGLEWOOD 20276 06/25/03 41.39 001250 GRAINGER INC/W W 20277 06/25/03 54.87 .00001 HAMLINE AUTO BODY INC. 20278 06/25/03 129.95 .00001 HAPPY'S POTATO CHIPS 20279 06/25/03 5,498.19 001420 HAWKINS WATER TREATMENT 20280 06/25/03 1,290.01 008944 HENN CNTY INFO TECH DEPT 20281 06/25/03 541.04 .00002 HENNEPIN COUNTY ASSESSOR 20282 06/25/03 36,655.93 008342 HENNEPIN COUNTY TREASURE 20283 06/25/03 571.21 008252 HOME DEPOT-GECF 20284 06/25/03 474.24 008658 INSTRUMENTAL RESEARCH, I 20285 06/25/03 110.50 007358 J.R.'S APPLIANCE DISPOSA 20286 06/25/03 570.00 008349 JOHN'S SOD 20287 06/25/03 33.75 .00003 KOZARK/JAMES 20288 06/25/03 263.92 000742 KROEPLIN/CONNIE 20289 06/25/03 13.68 008960 LEE'S CLEANERS & LAUNDRY 20290 06/25/03 28.89 008855 MACRO GROUP, INC. 20291 06/25/03 280.00 .00005 MAPLEWOOD FIRE DEPT. 20292 06/25/03 50.00 002160 MARSHALL CONCRETE PROD 20293 06/25/03 1,532.55 007129 MEDTOX 20294 06/25/03 45.00 008245 METRO FIRE 20295 06/25/03 197.70 a N BRC FINANCIAL SYSTEM ST. ANTHONY VILLAGE - 06/17/2003 14: Check Register GL540R-V06.54 PAGE 1 BANK VENDOR CHECK# DATE AMOUNT LIQR LIQUOR CHECKING ACCOUNT 004014 ALLIED PAPER CO. 22141 06/26/03 62.50 004293 BELLBOY CORP. 22142 06/26/03 4,190.15 008652 CARTRIDGE CARE 22143 06/26/03 170.13 002380 CENTERPOINT ENERGY MINNE 22144 06/26/03 562.05 004085 CITY OF ST ANTHONY 22145 06/26/03 68,750.00 008814 CITY WIDE WINDOW SERVICE 22146 06/26/03 34.08 008557 DAILEY DATA & ASSOCIATES 22147 06/26/03 175.95 004120 EAGLE WINE CO 22148 06/26/03 3,693.61 .00002 ENVIRONMENTAL RECYCLING 22149 06/26/03 40.00 004175 GRIGGS COOPER & CO INC 22150 06/26/03 33,223.48 004220 JOHNSON BROTHERS LIQUOR 22151 06/26/03 22,016.72 008815 LIGHTADOT NEON & GLASSWO 22152 06/26/03 250.00 002040 LILLIE SUBURBAN NEWSPAPE 22153 06/26/03 230.00 004265 MARK VII SALES INC 22154 06/26/03 385.20 004299 MPLS. OXYGEN CO. 22155 06/26/03 10.05 008883 NEW FRANCE WINE COMPANY 22156 06/26/03 653.00 000045 OFFICE DEPOT 22157 06/26/03 26.58 - 004354 PAUSTIS & SONS 22158 06/26/03 1,383.25 004360 PHILLIPS WINE & SPIRITS 22159 06/26/03 9,574.71 004361 PINNACLE DIST. 22160 06/26/03 2,858.22 004376 PRIOR WINE CO 22161 06/26/03 2,151.04 004385 QUALITY WINE CO 22162 06/26/03 9,714.45 008219 QWEST DEX 22163 06/26/03 582.80 008846 STANTON GROUP 22164 06/26/03 63.72 008903 U.S. BANK 22165 06/26/03 19,293.75 .00001 WEBER ENTERPRISES OF MN 22166 06/26/03 38.40 008310 WINE MERCHANTS INC 22167 06/26/03 1,021.78 002680 XCEL ENERGY 22168 06/26/03 4,219.58 LIQUOR CHECKING ACCOUNT 185,375.20 ««« r CITY OF ST.ANTHONY,MINNESOTA ORDINANCE RELATING TO THE REGULATION OF PAWNBROKERS; ADDING SECTION 566 TO THE ST.ANTHONY CITY CODE ORDINANCE NO. 2003-003 Section 566—Pawnbrokers The City Council of the City of St.Anthony hereby ordains: 566.01. Findings and Purpose Statement. A. Findings. The City Council makes the following findings regarding the need to regulate pawnbrokers operating with the City: (1) Pawnbrokers provide an opportunity for the commission of crime and the concealment of crime, because pawnshops have the ability to receive and transfer stolen property easily and quickly; and (2) The pawn industry has outgrown the City's current ability to effectively and efficiently identify criminal activity related to pawnbrokers and pawn businesses. The adoption of an Automated Pawn System (APS)will allow law enforcement officials to timely collect and share pawn transaction information more efficiently; and (3) Consumer protection regulation of pawn transactions is warranted in light of the potential for abuse. B. Purpose Statement. The City Council enacts this Section of the City Code in order to further the following objectives: (1) The prevention of pawnshops from being used as facilities for the commission of crime; and (2) The identification of criminal activities through timely collection and sharing of pawn transaction information; and (3) The promulgation of consumer protection standards to be adhered to by the pawn industry; and (4) The protection of the public health, safety, and general welfare of the citizens of the City. 566.02. Definitions. The following words and terms when used in this Section shall have the following meanings unless the context clearly indicates otherwise: ACCEPTABLE Acceptable forms of identification are a current valid Minnesota IDENTIFICATION: driver's license, a current valid Minnesota identification card, or a current valid photo driver's license or identification card issued by another state or province of Canada. BILLABLE Every reportable transaction conducted by a pawnbroker, except TRANSACTIONS: renewals,redemptions, extensions or confiscations of items previously reported and continuously in the licensee's possession is a billable transaction. Any fee for billable transactions shall reflect the cost of processing transactions and other related regulatory expenses as determined by the City Council pursuant to Section 566.09. CITY: The City of St. Anthony,Minnesota. CONSIGNMENT: A written agreement between a licensee and a seller that enables the licensee to take temporary possession of secondhand property, owned by the seller, for the purpose of offering it for sale to the public.An agreement shall state the terms under which the seller will be compensated, and the amount of that compensation. LICENSEE: The person, corporation,partnership,or association to whom a license is issued under this Section, including any agents or employees of the person,corporation,partnership,or association. MINOR: Any natural person under the age of eighteen(18) years. PAWNBROKER: Any natural person,partnership or corporation, either as principal, or agent or employee thereof, who loans money on deposit or pledge of personal property, or other valuable thing, or who deals in the purchasing of personal property,or other valuable thing on condition of selling the same back again at a stipulated price,or who loans money secured by chattel mortgage on personal property, taking possession of the property or any part thereof so mortgaged. To the extent that a pawnbroker's business includes buying personal property previously used,rented or leased, or selling it on consignment,the provisions of this Section shall be applicable. Any bank, savings and loan association,or credit union shall not be deemed a pawnbroker for purposes of this Section. 2 PAWNSHOP: Any business or establishment used or operated by a pawnbroker. PERSON: Any one or more natural persons; a partnership, including a limited partnership; a corporation, including a foreign, domestic, or nonprofit corporation; a trust; a political subdivision of the state; or any other business organization. REPORTABLE Every transaction conducted by a pawnbroker in which merchandise TRANSACTION: is received through a pawn,purchase, consignment or trade,or in which a pawn is renewed, extended,redeemed or voided, or for which a unique transaction number or identifier is generated by their point of sale software, or when an item is confiscated by a law enforcement agency, is a reportable transaction except: (a) The bulk purchase or consignment of new or used merchandise from a merchant,manufacturer,or wholesaler having an established permanent place of business, and the retail sale of said merchandise,provided the pawnbroker must maintain a record of such purchase or consignment which describes each item, and must mark each item in a manner which relates it to that transaction record. (b) Retail and wholesale sales of merchandise originally received by pawn or purchase, and for which all applicable hold and/or redemption periods have expired. UNIQUE IDENTIFIER: A serial number, identification number, model number, owner applied identifier or engraving, "Operation Identification" number or symbol, or other unique marking. 566.03. License Required. No person shall exercise,carry-on, or be engaged in the trade or business of pawnbroker within the City unless such person is currently licensed under this Section. 566.04. Application Content. In addition to any information that may be required by the County pursuant to Minnesota Statutes, Section 471.924, every application for a license under this Section shall be made on a form supplied by the City and shall contain the following information: A. If the applicant is a natural person: (1) The name,place, and date of birth, street resident address, and telephone number of the applicant; 3 (2) Whether the applicant is a citizen of the United States or a resident alien; (3) Whether the applicant has ever used or has been known by a name other than the applicant's name, and if so,the name or names used and information concerning dates and places where used; (4) The name of the business if it is to be conducted under a designation,name, or style other than the name of the applicant and a certified copy of the certificate as required by Minnesota Statutes, Section 333.01; (5) The street addresses at which the applicant has lived during the preceding five(5) years; (6) The type, name, and location of every business or occupation in which the applicant has been engaged during the preceding five(5) years and the name(s) and address(es)of the applicant's employer(s) and partner(s), if any, for the preceding five(5)years; (7) Whether the applicant has ever been convicted of a felony, crime, or violation of any ordinance other than a traffic ordinance. If so,the applicant shall furnish information as to the time,place, and offense for which convictions were had; (8) The physical description of the applicant; (9) If the applicant is married: (a) The name,place, and date of birth, and street address of the applicant's current spouse; (b) The type,name, and location of every business or occupation in which the applicant's current spouse has been engaged during the preceding five(5) years; (c) The names and addresses of the employers or partners of the applicant's current spouse for the preceding five (5)years; (d) Whether the applicant's current spouse has ever been convicted of any felony, crime, or violation of any ordinance other than a traffic ordinance. If so, the applicant shall furnish information as to the time,place, and offense for which convictions were had. 4 B. If the applicant is a partnership: (1) The name(s)and address(es) of all general and limited partners and all information concerning each general partner required in subpart(A)of this subsection; (2) The name(s)of managing partner(s) and the interest of each partner in the pawnbroker business; (3) A true copy of the partnership agreement shall be submitted with the application. If the partnership is required to file a certificate as to a trade name pursuant to Minnesota Statutes, Section 333.01, a certified copy of such certificate shall be attached to the application. C. If the applicant is a corporation or other organization: (1) The name of the corporation or business form, and if incorporated,the state of incorporation; (2) A true copy of the Certificate of Incorporation,Articles of Incorporation, or Association Agreement, and By-laws shall be attached to the application. If the applicant is a foreign corporation, a Certificate of Authority as required by Minnesota Statutes, Section 303.06, shall be attached; (3) The name of the manager(s),proprietor(s),or other agent(s) in charge of the business and all information concerning each manager,proprietor,or agent required in subpart(A)of this subsection; (4) A list of all persons who control or own an interest in excess of five percent (5%) in such organization or business form or who are officers of the corporation or business form and all information concerning said persons required in subpart(A) above. D. For all applicants: (1) Whether the applicant holds a current pawnbroker license from any other governmental unit and whether the applicant is licensed under Minnesota Statutes, Section 471.924; (2) Whether the applicant has previously been denied or had revoked or suspended, a pawnbroker license from this or any other governmental unit; (3) The names, street resident addresses,business addresses and telephone numbers of three(3) individuals who are of good moral character and who are not related to the applicant or not holding any ownership in the premises 5 or business,who may be referred to as to the applicant's and or manager's character; (4) The location of the business premises; (5) The legal description of the premises to be licensed; (6) The location at which the applicant's business records are maintained; (7) If the applicant does not own the licensed premises, a true and complete copy of the executed lease; (8) Whether all real estate and personal property taxes that are due and payable for the premises to be licensed have been paid, and if not paid,the years and amounts that are unpaid; (9) Whenever the application is for premises either planned or under construction or undergoing substantial alteration,the application shall be accompanied by a set of preliminary plans showing the design of the proposed premises to be licensed. If the plans or design are on file with the City Building/Inspections Department, no plans need be submitted with the application; (10) The applicants hours of operation, on-site management and parking facilities; (11) An executed data practices advisory and consent form authorizing the release of criminal history information; (12) Such other information as the City Council may require. E. Manager/New Manager. When a dealer places a manager in charge of a business, or if the named manager(s) in charge of a licensed business changes, the dealer must complete and submit the appropriate application prior to the effective date or the change. The manager shall be subject to the investigation required by this Section, and to the investigation fee required by Section 615, which shall be paid in advance. The designation of a new manager shall not cause the license to become invalid before a decision is rendered,provided proper notice and application are made by the applicant. A proposed new manager shall be referred to as the interim manager. In the event an interim manager is rejected,the licensee shall designate another interim manager and make the required application within fifteen(15)days of the decision. If a proposed manager is rejected, the decision may be appealed to the City Council by filing a written notice of appeal with the City Clerk within ten(10) days after being notified of the rejection. 6 r 566.05. Application Execution. All applications for a license under this Section shall be signed and sworn to. If the application is that of a natural person,it shall be signed and sworn to by such person; if that of a corporation,by an officer thereof; if that of a partnership,by one of the general partners; and if that of an unincorporated association,by the manager or managing officer thereof. Any falsification on a license application shall result in the denial of a license. 566.06. Application Verification. All applications shall be referred to the Police Department for verification and investigation of the facts set forth in the application. Within sixty(60)days after receipt of a complete application,the Police Department shall make a written report and recommendation to the City Council as to issuance or non-issuance of the license. The City Council may order and conduct such additional investigation as it deems necessary. If additional investigation is necessary, the applicant shall pay the City the cost of the additional investigation. The license shall not be issued until any additional investigation costs are paid. 566.07. Application Consideration. A. The City Council shall conduct a hearing on the license application within thirty(30) days following receipt of the Police Department's report and recommendation regarding the application. At least ten(10) days in advance of the City Council hearing on an application,the City shall cause notice of the hearing to be published in the official newspaper of the City, setting forth the day,time, and place of the hearing; the name of the applicant;the premises where the business is to be conducted; and the type of license which is sought. The hearing shall also be preceded by ten(10) days mailed notice to all owners of property located within five hundred(500) feet of the boundaries of the property where the business is to be conducted. At the hearing; opportunity shall be given to any person to be heard for or against the granting of the license. Additional hearings on the application may be held if the City Council deems additional hearings necessary. After the hearing or hearings on the application, the City Council may, in its discretion, grant or deny the application within thirty(30)days after the close of the hearing.. B. If an application is granted for a location where a building is under construction or not ready for occupancy, the license shall not be delivered to the licensee until a certificate of occupancy has been issued for the licensed premises. 566.08. Renewal Application. A. All licenses issued under this Section shall be effective from the date of approval by the City Council. All licenses expire at midnight on December 31 of each year. An application for the renewal of an existing license shall be made prior to the expiration date of the license and shall be made in such form as the City requires. The application shall state that the information in the prior application remains true and correct, except as otherwise indicated. If, in the judgment of the City Council, good and sufficient cause is shown by the applicant for the applicant's failure to 7 submit a renewal application before the expiration of the existing license, the City Council may, if the other provisions of this Section are complied with, grant the renewal application. B. A license under this Section may not be renewed: (1) If the City Council determines that the licensee has failed to comply with the provisions of this Section in preceding license years; or (2) If the licensee or, if the licensee does not manage the establishment, the manager of the licensed premises is not a resident of Minnesota on the date the renewal takes effect; or (3) If in the case of a partnership,the managing partner or other person who manages the establishment is not a resident of Minnesota on the date the renewal takes effect; or (4) If in the case of a corporation, or other organization,the manager, a proprietor, or agent in charge of the establishment is not a resident of Minnesota on the date the renewal takes effect;or The time for establishing residence in Minnesota may for good cause be extended by the City Council. 566.09. Fees. A. Investigation Fee. An applicant for any license under this Section shall pay the City in advance at the time an original application is submitted, a nonrefundable investigation fee to cover the costs involved in verifying the license application and to cover the expense of any investigation needed to assure compliance with this Section. The investigation fee is set forth in Section 615. B. License Fee. (1) The annual license fee is set forth in Section 615. The license fee shall be paid annually, to be determined pro-rata from the date of issuance of the license. (2) The annual license fee shall be paid in full before the license is effective. (3) When the license is for premises where the building is not ready for occupancy, the time fixed for computation of the license fee for the initial license period shall be ninety(90) days after approval of the license by the City Council or upon the date the building is ready for occupancy,whichever is sooner. 8 (4) When a new license application is submitted as a result of incorporation by an existing licensee and the ownership, control, and interest in the license are unchanged, no additional fee shall be required. C. Billable Transaction Fees: Licensees shall pay a monthly transaction fee on all billable transactions. Such fee shall be due and payable within thirty(30) days. Failure to timely pay the billable transaction fee shall constitute a violation of this Section. The billable transaction license fee shall reflect the cost of processing transactions and other related regulatory expenses as determined by the City Council, and shall be reviewed and adjusted, if necessary, every six (6) months. Licensees shall be notified in writing thirty(30) days before any adjustment is implemented. The initial billable transaction fee for billable transaction shall be one dollar seventy five cents ($1.75)per electronic transaction,regardless of the number of items in that transaction, and$2.75 per manual transaction. 566.10. Bond Required. At the time of filing an application for a license, the applicant shall file a bond in the amount of Five Thousand Dollars ($5,000.00)with the City. The bond, with a duly licensed surety company as surety thereon, must be approved as to form by the City Attorney. The bond must be conditioned that the licensee shall observe all-ordinances of the City and all laws-in regulation to the business of pawnbroker, and that the licensee will account for and deliver to any person legally entitled thereto any articles which may have come into the possession of the licensee as pawnbroker, or in lieu thereof such licensee shall pay the person or persons the reasonable value thereof. The bond shall contain a provision that it may not be cancelled without thirty(30) days advance written notice to the licensing authority. 566.11. Persons Ineligible for a License. A. No license under this Section shall be issued to an applicant who is a natural person (1) The applicant is a minor at the time the application is filed;or (2) The applicant has been convicted of any crime directly related to the occupation licensed as prescribed by Minnesota Statutes, Section 364.03, subdivision 2, and has not shown competent evidence of sufficient rehabilitation and present fitness to perform the duties of a pawnbroker as prescribed by Minnesota Statutes, Section 364.03, subdivision 3; or (3) The proposed use does not comply with the St. Anthony Zoning Code; or (4) The proposed use does not comply with any health,building,building maintenance or other provisions of the City Code or state law; or (5) The owner of the premises licensed or to be licensed would not qualify for a license under the terms of this chapter; or 9 (6) The applicant has failed to comply with one or more provisions of this Section; or (7) The applicant is not a citizen of the United States or a resident alien,or upon whom it is impractical or impossible to conduct a background or financial investigation due to the unavailability of information; or (8) The applicant has committed fraud,misrepresentation,or bribery in securing a license; or (9) The applicant has committed fraud,misrepresentation or made false statements in the application and investigation for the applicant's business; or (10) Business practices, or conduct,deemed by the City to be contrary to the best interests,or safety, of the public; or (11) The applicant has violated within the preceding five(5) years, of any law relating to theft, damage or trespass to property, sale of a controlled substance, or operation of a business. B. No license under this Section shall be issued to an applicant that is a partnership if: (1) Any general partner or managing partner of such applicant is a minor at the time the application is filed; or (2) Any general partner or managing partner of such applicant has been convicted of any crime directly related to the occupation licensed as prescribed by Minnesota Statutes, Section 364.03, subdivision 2, and has not shown competent evidence of sufficient rehabilitation and present fitness to perform the duties of a pawnbroker as prescribed by Minnesota Statutes, Section 364.03, subdivision 3;or (3) The proposed use does not comply with the St. Anthony Zoning Code; or (4) The proposed use does not comply with any health,building,building maintenance or other provisions of the City Code or state law; or (5) The owner of the premises licensed or to be licensed would not qualify for a license under the terms of this chapter; or (6) The applicant has failed to comply with one or more provisions of this Section; or (7) Any general partner or managing partner of such applicant is not a citizen of the United States or a resident alien,or upon whom it is impractical or 10 impossible to conduct a background or financial investigation due to the unavailability of information; or (8) Any general partner or managing partner of such applicant has committed fraud, misrepresentation,or bribery in securing a license; or (9) Any general partner or managing partner of such applicant has committed fraud, misrepresentation or made false statements in the application and investigation for the applicant's business; or (10) Business practices,or conduct,deemed by the City to be contrary to the best interests,or safety, of the public; or (11) Any general partner or managing partner of such applicant has violated within the preceding five(5) years, of any law relating to theft, damage or trespass to property, sale of a controlled substance,or operation of a business. C. No license under this Section shall be issued to an applicant that is a corporation or other organization if: (1) Any manager, proprietor, or agent in charge of the business to be licensed is a minor at the time the application is filed;or (2) Any manager,proprietor,or agent in charge of the business has been convicted of any crime directly related to the occupation licensed as prescribed by Minnesota Statutes, Section 364.03, subdivision 2, and has not shown competent evidence of sufficient rehabilitation and present fitness to perform the duties of a pawnbroker as prescribed by Minnesota Statutes, Section 364.03, subdivision 3; or (3) The proposed use does not comply with the St. Anthony Zoning Code;or (4) The proposed use does not comply with any health,building,building maintenance or other provisions of the City Code or state law; or (5) The owner of the premises licensed or to be licensed would not qualify for a license under the terms of this chapter; or (6) The applicant has failed to comply with one or more provisions of this Section; or (7) Any manager,proprietor, or agent in charge of the business is not a citizen of the United States or a resident alien,or upon whom it is impractical or impossible to conduct a background or financial investigation due to the unavailability of information; or 11 (8) Any manager,proprietor,or agent in charge of the business has committed fraud, misrepresentation,or bribery in securing a license; or (9) Any manager,proprietor, or agent in charge of the business has committed fraud,misrepresentation or made false statements in the application and investigation for the applicant's business; or (10) Business practices,or conduct, deemed by the City to be contrary to the best interests,or safety, of the public; or (11) Any manager,proprietor,or agent in charge of the business has violated within the preceding five(5)years, of any law relating to theft, damage or trespass to property, sale of a controlled substance, or operation of a business. 566.12. General License Restrictions. A. Records Required. At the time of any reportable transaction other than renewals, extensions or redemptions, every licensee must immediately record in English the following information by using ink or other indelible medium on forms or in a computerized record approved by the Police Department: (1) A complete and accurate description of each item including, but not limited to, any trademark, identification number, serial number, model number, brand name, or other identifying mark on such an item. (2) The purchase price, amount of money loaned upon, or pledged therefor. (3) The maturity date of the transaction and the amount due, including monthly and annual interest rates and all pawn fees and charges. (4) Date, time and place the item of property was received by the licensee, and the unique alpha and/or numeric transaction identifier that distinguishes it from all other transactions in the licensee's records. Transaction identifiers must be consecutively numbered. (5) Full name, current residence address, current residence telephone number, date of birth and accurate description of the person from whom the item of the property was received, including: sex,height, weight, race, color of eyes and color of hair. (6) The identification number and state of issue from an acceptable form of identification. (7) The signature of the person identified in the transaction. 12 1 X11 (8) The licensee must also take a color photograph or color video recording of: (a) Each customer involved in a billable transaction. (b) Every item pawned or sold that does not have a unique serial or identification number permanently engraved or affixed. If a photograph is taken, it must be at least two (2) inches in length by two (2)inches in width and must be maintained in such a manner that the photograph can be readily matched and correlated with all other records of the transaction to which they relate. Such photographs must be available to the Chief of Police, or the chiefs designee, upon request. The major portion of the photograph must include an identifiable front facial close-up of the person who pawned or sold the item. Items photographed must be accurately depicted. The licensee must inform the person that he or she is being photographed by displaying a sign of sufficient size in a conspicuous place in the premises. If a video photograph is taken, the video camera must zoom in on the person pawning or selling the item so as to include an identifiable close-up of that person's face. Items photographed by video must be accurately depicted. Video photographs must be electronically referenced by time and date so they can be readily matched and correlated with all other records of the transaction to which they relate. The licensee must inform the person that he or she is being videotaped orally and by displaying a sign of sufficient size in a conspicuous place on the premises. The licensee must keep the exposed videotape for three (3) months, and furnish it to the Police Department upon request. (9) Digitized photographs. Effective sixty(60) days from the date of notification by the Police Department licensees must fulfill the color photograph requirements in subsection 566.12(A)(8) by submitting them as digital images, in a format specified by the City, electronically cross- referenced to the reportable transaction they are associated with. Notwithstanding the digital images may be captured from required video recordings, this provision does not altar or amend the requirements in subsection 566.12(A)(8). (10) Renewals, extensions and redemptions. For renewals, extensions and redemptions, the licensee shall provide the original transaction identifier, the date of the current transaction, and the type of transaction. B. Disposition of Articles. (1) When an article of pawned or pledged property is redeemed from a licensee, the records shall contain an account of such redemption with the 13 1 •1 date, interest charges accrued, and the total amount for which the article was redeemed. (2) When an article of purchased or forfeited property is sold or disposed of by a licensee and the licensee receives One Hundred Dollars ($100.00)or more in the payment thereof, the records shall contain an account of such sale with the date, the amount for which the article was sold, and the full name, current address, and telephone number of the person to whom sold. C. Inspection of Records. The records must at all reasonable times be open to inspection by the Police Department. Data entries shall be retained for at least three (3) years from the date of transaction. Entries of required digital images shall be retained a minimum of one hundred twenty(120) days. D. Daily Reports to Police. Licensees must submit every reportable transaction to the Police Department daily in the following manner: (1) Licensees must provide to the Police Department all information required in Section 566.12(A)(1) through (6) and other required information, by transferring it from their computer to the Automated Pawn System via modem. All required records must be transmitted completely and accurately after the close of business each day in accordance with standards and procedures established by the City using procedures that address security concerns of the licensees and the City. The licensee must display a sign of sufficient size, in a conspicuous place in the premises, which informs all patrons that all transactions are reported to the Police Department daily. (2) Billable Transaction Fees. Licensees will be charged for each billable transaction reported to the Police Department. (3) If a licensee is unable to successfully transfer the required reports by modem, the licensee must provide the Police Department printed copies of all reportable transactions along with the video tape(s) for that date, by 12:00 noon the next business day; (4) If the problem is determined to be in the licensee's system and is not corrected by the close of the first business day following the failure, the licensee must provide the required reports as detailed in Section 566.12(D)(3), and must be charged a fifty dollar($50.00) reporting failure penalty, daily, until the error is corrected; or (5) If the problem is determined to be outside the licensee's system, the licensee must provide the required reports in Section 566.12(D)(3), and resubmit all such transaction via modem when the error is corrected. (6) If a licensee is unable to capture, digitize or transmit the photographs required in Section 566.12(A)(9), the licensee must immediately take all 14 required photographs with a still camera, cross-reference the photographs to the correct transaction, and make the pictures available to the Police Department upon request. (7) Regardless of the cause or origin of the technical problems that prevented the licensee from uploading their reportable transactions, upon correction of the problem, the licensee shall upload every reportable transaction from every business day the problem had existed. (8) Section 566.12(D)(3) through (5) notwithstanding, the Police Department may, upon presentation of extenuating circumstances, delay the implementation of the daily reporting penalty. E. Receipt Required. Every licensee must provide a receipt to the party identified in every reportable transaction and must maintain a duplicate of that receipt for three (3) years. The receipt must include at least the following information: (1) The name, address and telephone number of the licensed business. (2) The date and time the item was received by the licensee. (3) Whether the item was pawned or sold, or the nature of the transaction. (4) An accurate description of each item received including, but not limited to, any trademark, identification number, serial number, model number, brand name, or other identifying mark on such an item. (5) The signature or unique identifier of the licensee or employee that conducted the transaction. (6) The amount advanced or paid. (7) The monthly and annual interest rates, including all pawn fees and charges. (8) The last regular day of business by which the item must be redeemed by the pledgor without risk that the item will be sold, and the amount necessary to redeem the pawned item on that date. (9) The full name, current residence address, current residence telephone number, and date of birth of the pledgor or seller. (10) The identification number and state of issue from an acceptable form of identification. (11) Description of the pledgor or seller including approximate sex, height, weight,race, color of eyes and color of hair. 15 (12) The signature of the pledgor or seller. (13) All printed statements as required by Minnesota Statutes, Section 325J.04, subdivision 2, or any other applicable statutes. F. Redemption Period. Any person pledging,pawning or depositing an item for security must have a minimum of one hundred twenty(120) days from the date of that transaction to redeem the item before it may be forfeited and sold. During the ninety(90) day holding period, items may not be removed from the licensed location except as provided in Section 566.14(A). Licensees are prohibited from redeeming any item to anyone other than the person to whom the receipt was issued or, to any person identified in a written and notarized authorization to redeem the property identified in the receipt, or to a person identified in writing by the pledgor at the time of the initial transaction and signed by the pledgor, or with approval of the police license inspector. Written authorization for release of property to persons other than original pledgor must be maintained along with original transaction record in accordance with Section 566.12(A)(10). G. Holding te. Any item purchased or accepted in trade by a licensee must not be sold or otherwise transferred for thirty(30) days from the date of the transaction. An individual may redeem an item seventy-two (72) hours after the item was received on deposit, excluding Sundays and legal holidays. H. Police Order to Hold Propert y. (1) Investigative Hold. Whenever the Chief of Police or the Chief's designee notifies a licensee not to sell an item, the item must not be sold or removed from the premises. The investigative hold shall be confirmed in writing by the Police Department within seventy-two (72) hours and will remain in effect for fifteen(15) days from the date of initial notification, or until the investigative order is canceled, or until an order to hold/confiscate is issued, pursuant to Section 566.12(H)(2), whichever comes first. (2) Order to Hold. Whenever the Chief of Police, or the chiefs designee, notifies a licensee not to sell an item, the item must not be sold or removed from the licensed premises until authorized to be released by the chief or the chief s designee. The order to hold shall expire ninety(90) days from the date it is placed unless the Chief of Police or the chief s designee determines the hold is still necessary and notifies the licensee in writing. (3) Order to Confiscate. If an item is identified as stolen or evidence in a criminal case, the chief or chiefs designee may: (a) Physically confiscate and remove it from the shop, pursuant to a written order from the chief or the chiefs designee; or (b) Place the item on hold or extend the hold as provided in Section 566.12(H)(2), and leave it in the shop. 16 When an item is confiscated, the person doing so shall provide identification upon request of the licensee, and shall provide the licensee the name and phone number of the confiscating agency and investigator, and the case number related to the confiscation. When an order to hold/confiscate is no longer necessary, the Chief of Police, or chiefs designee shall so notify the licensee. I. Inspection of Items. (1) At all times during the terms of the license, the licensee must allow law enforcement officials to enter the premises where the licensed business is located, including all off-site storage facilities as authorized in Section 566.12(0), during normal business hours, except in an emergency, for the purpose of inspecting such premises and inspecting the items, ware and merchandise and records therein to verify compliance with this Section or other applicable laws. (2) All merchandise received by a pawnbroker, shall be subject to examination, during normal business hours, by any person claiming to have had any interest therein, when such person is accompanied by a police officer J. Pawning of Motor Vehicle Titles. (1) In addition to the other requirements of state law, a pawnbroker who holds a title to a motor vehicle as part of a pawn transaction shall, pursuant to Minnesota Statutes, Section 325J.095: (a) be licensed as a used motor vehicle dealer under Minnesota Statutes, Section 168.27, and post such license on the pawnshop premises; (b) verify that there are no liens or encumbrances against the motor vehicle with the department of public safety; (c) verify that the pledgor has automobile insurance on the motor vehicle as required by law. (d) A pawnbroker may not sell a motor vehicle covered by a pawn transaction until ninety(90) days after recovery of the motor vehicle. (2) A pawn transaction that involves holding only the title to property is subject to Minnesota Statutes, Chapter 168A or 336. K. Label Required. Licensees must attach a label to every item at the time it is pawned, purchased or received in inventory from any reportable transaction. Permanently 17 recorded on this label must be the number or name that identifies the transaction in the shop's records, the transaction date, the name of the item and the description or the model and serial number of the item as reported to the Police Department, whichever is applicable, and the date the item is out of pawn or can be sold, if applicable. Labels shall not be re-used. L. Firearms and Weapons. A pawnbroker shall not receive, display or sell any merchandise through a pawn,purchase, or consignment or trade consisting of a revolver, pistol, shotgun, automatic rifle, semiautomatic military-style assault weapon (as defined by Minnesota Statutes, Section 624.712), switchblade knife, or other similar weapons or firearms. M. Risk of Loss. In the event pledged goods are lost or damaged while in possession of the pawnbroker, the pawnbroker shall compensate the pledgor, in cash or replacement of goods acceptable to the pledgor, for the fair market value of the lost or damaged goods. Proof of compensation shall be a defense to any prosecution or civil action. N. License Display. A license issued under this Section must be posted in a conspicuous place in the premises for which it is used. The license issued is only effective for the compact and contiguous space specified in the approved license application. O. Responsibility of Licensee. A licensee under this Section shall be responsible for the conduct of the business being operated and shall maintain conditions of order. The conduct of agents or employees of a licensee, engaged in performance of duties for the licensee, shall be deemed the conduct of the licensee. P. Gambling. No licensee under this Section may keep,possess, or operate,or permit the keeping,possession, or operation on the licensed premises of dice, slot machines,roulette wheels,punchboards,blackjack tables,or pinball machines which return coins or slugs, chips, or tokens of any kind,which are redeemable in merchandise or cash. No gambling equipment authorized under Minnesota Statutes, Chapter 349,may be kept or operated and no raffles may be conducted on the licensed premises and/or adjoining rooms. The purchase of lottery tickets may take place on the licensed premises as authorized by the director of the lottery pursuant to Minnesota Statutes, Chapter 349A. Q. Penalty for Property Owner. It is unlawful for any person who owns or controls real property to knowingly permit it to be used for pawn brokering without a license. R. Premises. All property deposited, left,pledged,pawned, or held for sale must be stored in an enclosed facility and may not be stored outside of the premises. The City may, however,permit the licensee to designate one(1)off-premises locked and secured facility in which the licensee may store only cars,boats, and other motorized vehicles. The licensee shall permit immediate inspection of the facility at any time during business hours by the City. All provisions in this Section regarding record keeping and reporting shall apply to oversized items. All property shall be stored in compliance with zoning and/or fire regulations and in an orderly manner. The premises shall also be equipped with an operational security alarm. 18 566.13. Restricted Transactions. A. Hours of Operation. No pawnbroker shall keep the pawnbroker business open for the transaction of business on any day of the week before 7:00 a.m. or after 10:00 p.m. B. Minors. A pawnbroker shall not purchase or receive personal property on deposit or pledge from any minor. C. Incompetent Persons. A pawnbroker shall not purchase or receive personal property on deposit or pledge from any incompetent person. D. Prohibited Goods. No licensee under this Section shall accept any item of property which contains an altered or obliterated serial number or"Operation Identification"number or any item of property whose serial number has been removed. E. Securily Interest. No licensee nor any agent or employee of a licensee shall purchase, accept, or receive any article of property knowing, or having reason to know,that the article of property is encumbered by a security interest. For the purpose of this Section, "security interest"means an interest in property which secures payment or other performance of an obligation. F. True Owner. No licensee nor any agent or employee of a licensee shall purchase, accept,or receive any article of property, from any person, knowing, or having reason to know,that said person is not the true and correct owner of the property. G. Proper Identification. No licensee nor any agent or employee of a licensee shall purchase, accept,or receive any article of property, from any person, without first having examined an acceptable form of identification. H. Payment by Check. Payment of more than Two Hundred Fifty Dollars ($250.00)by a licensee for any article deposited, left,purchased,pledged or pawned shall be made only by a check,draft,or other negotiable or non-negotiable instrument which is drawn against funds held by a financial institution. This policy must be posted in a conspicuous place in the premises. I. Restrictions on Sale. A pawnbroker shall suspend for one(1)year, any business transaction with any person who has sold and/or forfeited on six (6)previous occasions articles for which the person received$50.00 or more per transaction within a single six (6)month period. 566.14. Inspection by Police. A. Premises. Any licensee shall, at all times during the term of the license, allow the Police Department to enter the premises,where the licensee is carrying on business, including all off-site storage facilities as authorized in Section 566.12)(8), during normal business hours, except in an emergency, for the purpose of inspecting such premises and inspecting the articles and records therein to locate goods suspected or alleged to have been stolen and to verify compliance with this Section or other applicable laws. No licensee shall conceal any article in his possession from the Police Department. 19 B. Inspection by Police or Claimed Owner. All articles of property coming into the possession of any licensee shall be open to inspection and right of examination of any police officer or any person claiming to have been the owner thereof or claiming to have had an interest therein when such person is accompanied by a police officer. 566.15. Conduct of Persons on Licensed Premises. A.. . Property of Another. No person may pawn,pledge, sell, leave, or deposit any article of property not their own;nor shall any person pawn,pledge, sell, leave, or deposit the property of another, whether with pennission or without;nor shall any person pawn,pledge, sell, leave,or deposit any article of property in which another has a security interest; with any licensee. B: Minors. No minor may pawn,pledge, sell, leave,or deposit any article of property with any licensee. C. Proper Identification. No person may pawn,pledge, sell, leave or deposit any article of property with any licensee without first having presented an acceptable form of identification. D. Required Signage. All licensees shall by adequate signage and separate written notice inform persons seeking to pawn,pledge, sell, leave, or deposit articles of property with the licensee of the foregoing requirements. (1) For the purpose of this subsection, "adequate signage"shall be deemed to mean at least one sign of not less than four(4) square feet in surface area, comprised of lettering of not less than three-quarters(3/4)of an inch in height,posted in a conspicuous place on the licensed premises and stating substantially the following: TO PAWN OR SELL PROPERTY: YOU MUST BE AT LEAST 18 YEARS OF AGE. YOU MUST BE THE TRUE OWNER OF THE PROPERTY. THE PROPERTY MUST BE FREE OF ALL CLAIMS AND LIENS. YOU MUST PRESENT VALID PHOTO IDENTIFICATION. VIOLATION OF ANY OF THESE REQUIREMENTS IS A CRIME. (2) For the purpose of this subsection, "separate written notice"shall be deemed to mean either the receipt, as required in Section 566(12)(E), or a printed form, incorporating a statement to the effect that the person pawning, pledging, selling, leaving, or depositing the article is at least eighteen(18) years of age; is the true owner of the article; and that the article is free of all claims and liens;which is acknowledged by way of signature of the person pawning,pledging, selling, leaving, or depositing the article. 20 E. False Identification. No person seeking to pawn,pledge, sell, leave, or deposit any article of property with any licensee shall give a false or fictitious name;nor give a false date of birth;nor give a false or out of date address of residence or telephone number; nor present a false driver's license or identification card; to any licensee. F. General Restrictions. No pawnbroker licensed under this Section shall: (1) Lend money on a pledge at a rate of interest above that allowed by law; (2) Knowingly possess stolen goods; (3) Sell pledged goods before the time to redeem has expired; (4) Refuse to disclose to the City, after having sold pledged goods,the name of the purchaser or the price for which the item sold; (5) Make a loan on a pledge to a minor. 566.16. Restrictions ReEardiu License Transfer. Each license under this Section shall be issued to the applicant only and shall not be transferable to any other person.No licensee shall loan, sell, give, or assign a license to another person. 566.17. Suspension or Revocation of License. A. The City Council may suspend or revoke a license issued under this Section upon a finding of a violation of: (1) Any of the provisions of this Section; (2) Any state statute regulating pawnbrokers; (3) Any crime directly related to the occupation licensed as prescribed by Minnesota Statutes, Section 364.03, subdivision 2; (4) Fraud,misrepresentation,or bribery in renewing a license; (5) Business practices, or conduct, deemed by the City to be contrary to the best interests,or safety, of the public; or (6) Any law relating to theft, damage or trespass to property, sale of a controlled substance, or operation of a business. B. A revocation or suspension by the City Council shall be preceded by written notice to the licensee and a public hearing. The written notice shall give at least ten(10) days' 21 notice of the time and place of the hearing and shall state the nature of the charges against the pawnbroker. The notice may be served upon the pawnbroker personally or by United States mail addressed to the most recent address of the business in the license application. 566.18. Penalty. Violation of'any provision of this Section shall be a misdemeanor. 566.19. Severability. Should any provision of this Section be declared by a court of competent jurisdiction to be invalid, such decision shall not effect the validity of the ordinance as a whole or any part other than the part declared invalid. The City Council hereby declares that it would have adopted this ordinance and each section, subsection, sentences, clause, or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, or phrases be declared invalid. Section 2: This ordinance will become effective as of the date of its publication. First Reading: May 28, 2003 Second Reading: June 10, 2003 Adopted: June 24, 2003 Mayor ATTEST: City Clerk Publish: St. Anthony Bulletin I 22 MEMORANDUM DATE: 5/13/03 MEETING DATE: 5/20/03 TO: Chair Melsha & Planning Commission Members FROM: Susan M.H. Hall, Assistant City Manager SUBJECT: Pawnbrokers/Secondhand Dealers Overview: On May 20, 2003, the Planning Commission will hold a public hearing to amend Section 1635.03 of the City's Zoning Code to allow for pawnbrokers and secondhand dealers to operate as a conditional use in Commercial districts within the City. This is necessary because, for example, you would not pass an ordinance allowing pawnbrokers as a conditional use without guidelines in place in Section 566 to regulate pawnbrokers. In regard to the pawnshop and secondhand good ordinance, the City will also need to amend Chapter 6 of the City Code relating to fees. Both the pawnbroker and secondhand dealer ordinance reference Section 615 of the City Code as establishing an investigation fee and license fee. Attached is a proposed ordinance amending 615, which establishes such fees. It is not necessary for the Planning Commission to consider this ordinance, as it is not a zoning matter: However to be complete, the Planning Commission should propose the fee ordinance and forward it onto the City Council. At the April 15, 2003, Planning Commission meeting, a public hearing was held on the pawnbrokers and secondhand dealers ordinances. There was no public comment at the public hearing. In total, there are four proposed ordinances coming from the Planning Commission: (1) the pawnbroker ordinance; (2) secondhand goods ordinance; (3) the zoning code amendment; and the license fee amendment. Requested Action: Staff recommends that the Planning Commission take public comment on the zoning amendment and then refer it onto the City Council as recommended adoption.. In a separate motion, the Planning Commission should review and recommend the license fee ordinance to the City Council. The recommended ordinances, zoning code amendment, and fees will be considered by the City Council on May 27. CITY OF ST.ANTHONY, MINNESOTA ORDINANCE RELATING TO THE REGULATION OF SECONDHAND DEALERS; REPEALING CURRENT SECTION 565 OF THE ST. ANTHONY CITY CODE AND ADDING A NEW SECTION 565 TO THE CITY CODE ORDINANCE NO. 2003-004 Section 565—Secondhand Dealers The City Council of the City of St.Anthony hereby ordains: Section 565 of the St.Anthony City Code is repealed and shall be replaced by a new Section 565 as follows: 565.01. Findings and Purpose Statement. The City Council finds (i) that secondhand dealers may knowingly or unknowingly be a conduit for the sale or purchase of stolen property; (ii) secondhand dealers should be regulated by requiring a license issued by the City; and (iii) licenses for should be denied, suspended, or revoked when the conduct of such business presents a threat to the peace, health, or safety of the people of the City. The purpose of this Section is to provide for the peace, health, and safety of citizens of the City by regulating secondhand dealers. 565.02. Definitions. The following words and terms when used in this Section shall have the following meanings unless the context clearly indicates otherwise: AUCTION HOUSE: Auction house dealer shall mean any secondhand dealer where some, or all, of the secondhand merchandise is offered for sale for the highest bid or offer tendered. If the sale is conducted by means of an auction, the auctioneer must be properly licensed and bonded in accordance with applicable laws. BILLABLE Every reportable transaction conducted by a secondhand TRANSACTION: dealer, regardless of the number of items received in that transaction. BUSINESS MANAGER: Business manager shall mean a person(s) designated by the licensee to operate a business in the licensee's absence.A licensee must designate a manager to operate the licensed business if the licensee does not personally provide on-site supervisory services at the business at least sixty-four(64) hours per month. CITY: The City of St. Anthony,Minnesota. CONSIGNMENT: A written agreement between a licensee and a seller that enables the licensee to take temporary possession of secondhand property, owned by the seller, for the purpose of offering it for sale to the public. An agreement shall state the terms under which the seller will be compensated, and the amount of that compensation. DEALER: Any natural person, partnership or corporation, either as principal or agent or employee thereof, licensed under this Section. PRECIOUS GEM: Precious gems shall mean any gem that is valued for its character, rarity, beauty or quality, including diamonds, rubies, emeralds, sapphires or pearls, or any other such precious gems or stones, whether as a separate item or in combination as a piece of jewelry or other crafted item. PRECIOUS METALS: Precious metals shall mean gold, silver, platinum, and sterling silver, whether as a separate item or in combination as a piece of jewelry or other crafted item, except items plated with precious metal(s) and the plating equals less than one (1) percent of the items total weight. RECEIVE: To purchase, accept for sale on consignment, broker, or receive in trade for an item of equal or lesser value, any tangible personal property previously owned, used, rented or leased. RECORDABLE Every transaction conducted by a secondhand dealer in which TRANSACTION: merchandise defined in Section 565.13 is received, offered for sale, or intended for sale, whether inside or outside the City of St. Anthony. REPORTABLE Every transaction conducted by a secondhand dealer, inside the TRANSACTION City of St.Anthony, in which merchandise defined in Section 565.14(A) is received, and for which a daily report to the police department is required. SECONDHAND DEALER: Any natural person, partnership or corporation, either as principal or agent or employee thereof, whose regular business includes selling or receiving tangible personal properties, excluding motor vehicles, previously owned, used, rented or leased. The term secondhand dealer shall include auction house dealers. 2 UNIQUE IDENTIFIER: A serial number, identification number,model number, owner applied identifier or engraving, "operation ID" number or symbol, or other unique marking. 565.03. License required. No person shall engage in the business of secondhand dealer without a secondhand dealer license. No secondhand dealer license may be transferred to a different location or a different person. Licenses shall be conspicuously displayed. Issuance of a license under this Section shall not relieve the dealer from obtaining any other licenses required to conduct business at the same or any other locations. Persons engaged in the business of a secondhand dealer on the effective date of this Section must receive a license within sixty(60) days or cease doing business. 565.04. Exceptions. The following transactions shall not require a license under this Section: A. The sale of secondhand goods at events commonly known as "garage sales," "yard sales" or "estate sales" where all of the following are present: (1) The sale is held on property occupied as a dwelling by the seller or owned, rented or leased by a charitable or political organization. (2) The occupant owns the items offered for sale and that none of the,items offered for sale shall have been purchased for resale or received on consignment for purpose of resale. (3) The owner of the property conducts the sale and receives all proceeds from the sale. (4) That no sale exceeds a period of seventy-two (72) consecutive hours. That no more than four(4) sales are held in any twelve (12) month period at any residential dwelling. B. The sale or receipt of secondhand books, magazines, post cards,postage stamps, philatelic material, video recordings (including digital video discs and video tapes), and audio recordings (including compact discs, long-play albums and cassette tapes.) C. The sale or receipt of used merchandise donated to recognized non-profit organizations and for which no compensation is paid. D. Transactions conducted by a pawnbroker licensed under Section 566 of the St. Anthony City Code. 3 565.05. Application Content. In addition to any information that may be required by the County pursuant to Minnesota Statutes, Section 471.924, every application for a license under this Section shall be made on a form supplied by the City and shall contain the following information: A. If the applicant is a natural person: (1) The name,place, and date of birth, street resident address, and telephone number of the applicant; (2) Whether the applicant is a citizen of the United States or a resident alien; (3) Whether the applicant has ever used or has been known by a name other than the applicant's name, and if so, the name or names used and information concerning dates and places where used; (4) The name of the business if it is to be conducted under a designation,name, or style other than the name of the applicant and a certified copy of the certificate as required by Minnesota Statutes, Section 333.01; (5) The street addresses at which the applicant has lived during the preceding five (5) years; (6) The type,name, and location of every business or occupation in which the applicant has been engaged during the preceding five (5) years and the name(s) and address(es) of the applicant's employer(s) and partner(s), if any, for the preceding five(5)years; (7) Whether the applicant has ever been convicted of a felony, crime, or violation of any ordinance other than a traffic ordinance. If so,the applicant shall furnish information as to the time,place, and offense for which convictions.were had; (8) The physical description of the applicant; (9) If the applicant is married: (a) The name,place, and date of birth, and street address of the applicant's current spouse; (b) The type,name, and location of every business or occupation in which the applicant's current spouse has been engaged during the preceding five(5)years; 4 (c) The names and addresses of the employers or partners of the applicant's current spouse for the preceding five(5)years; (d) Whether the applicant's current spouse has ever been convicted of any felony, crime,or.violation of any ordinance other than a traffic ordinance. If so, the applicant shall famish information as to the time,place,and offense for which convictions were had. B. If the applicant is a partnership: (1) The name(s) and address(es) of all general and limited partners and all information concerning each general partner required in subpart(A)of this subsection; (2) The name(s)of managing partner(s) and the interest of each partner in the secondhand goods business; (3) A true copy of the partnership agreement shall be submitted with the application. If the partnership is required to file a certificate as to a trade name pursuant to Minnesota Statutes, Section 333.01, a certified copy of such certificate shall be attached to the application. C. If the applicant is a corporation or other organization: (1) The name of the corporation or business form, and if incorporated, the state of incorporation; (2) A true copy of the Certificate of Incorporation,Articles of Incorporation,or Association Agreement, and By-laws shall be attached to the application. If the applicant is a foreign corporation, a Certificate of Authority as required by Minnesota Statutes, Section 303.06, shall be attached; (3) The name of the manager(s),proprietor(s), or other agent(s)in charge of the business and all information concerning each manager,proprietor, or agent required in subpart(A) of this subsection; (4) A list of all persons who control or own an interest in excess of five percent (5%)in such organization or business form or who are officers of the corporation or business form and all information concerning said persons required in subpart(A) above. D. For all applicants: (1) Whether the applicant holds a current secondhand dealers or pawnbrokers license from any other governmental unit and whether the applicant is licensed under Minnesota Statutes, Section 471.924; 5 (2) Whether the applicant has previously been denied or had revoked or suspended, a secondhand dealers license from this or any other governmental unit; (3) The names, street resident addresses, business addresses and telephone numbers of three(3) individuals who are of good moral character and who are not related to the applicant or not holding any ownership in the premises or business,who may be referred to as to the applicant's and or manager's character; (4) The location of the business premises; (5) The legal description of the premises to be licensed; (6) The location at which the applicant's business records are maintained; (7) If the applicant does not own the licensed premises, a true and complete copy of the executed lease; (8) Whether all real estate and personal property taxes that are due and payable for the premises to be licensed have been paid, and if not paid,the years and amounts that are unpaid; (9) Whenever the application is for premises either planned or under construction or undergoing substantial alteration,the application shall be accompanied by a set of preliminary plans showing the design of the proposed premises to be licensed. If the plans or design are on file with the City Building/Inspections Department,no plans need be submitted with application; (10) The applicants hours of operation, on-site management and parking facilities; (11) An executed data practices advisory and consent form authorizing the release of criminal history information; (12) Such other information as the City Council may require. E. Manager/New Manager. When a dealer places a manager in charge of a business, or if the named manager(s) in charge of a licensed business changes, the dealer must complete and submit the appropriate application prior to the effective date or the change. The manager shall be subject to the investigation required by this Section, and to the investigation fee required by Section 615, which shall be paid in advance. 6 The designation of a new manager shall not cause the license to become invalid before a decision is rendered,provided proper notice and application are made by the applicant. A proposed new manager shall be referred to as the interim manager. In the event an interim manager is rejected,the licensee shall designate another interim manager and make the required application within fifteen(15)days of the decision. If a proposed manager is rejected,the decision maybe appealed to the City Council by filing a written notice of appeal with the City Clerk within ten(10) days after being notified of the rejection. 565.06. Application Execution. All applications for a license under this Section shall be signed and sworn to. If the application is that of a natural person, it shall be signed and sworn to by such person; if that of a corporation,by an officer thereof, if that of a partnership,by one of the general partners; and if that of an unincorporated association,by the manager or managing officer thereof. Any falsification on a license application shall result in the denial of a license. 565.07. Application Verification. All applications shall be referred to the Police Department for verification and investigation of the facts set forth in the application. Within sixty(60) days after receipt of a complete application, the Police Department shall make a written report and recommendation to the City Council as to issuance or non-issuance of the license. The City Council may order and conduct such additional investigation as it deems necessary. If additional investigation is necessary, the applicant shall pay the City the cost of the additional investigation. The license shall not be issued until any additional investigation costs are paid. 565.08. Application Consideration. A. The City Council shall conduct a hearing on the license application within thirty(30) days following receipt of the Police Department's report and recommendation regarding the application. At least ten(10)days in advance of the City Council hearing on an application,the City shall cause notice of the hearing to be published in the official newspaper of the City, setting forth the day, time, and place of the hearing; the name of the applicant; the premises where the business is to be conducted; and the type of license which is sought. The hearing shall also be preceded by ten(10) days mailed notice to all owners of property located within five hundred(500) feet of the boundaries of the property where the business is to be conducted. At the hearing, opportunity shall be given to any person to be heard for or against the granting of the license. Additional hearings on the application may be held if the City Council deems additional hearings necessary. After the hearing or hearings on the application, the City Council may, in its discretion, grant or deny the application within thirty(30) days after the close of the hearing.. B. If an application is granted for a location where a building is under construction or not ready for occupancy, the license shall not be delivered to the licensee until a certificate of occupancy has been issued for the licensed premises. 7 565.09. Renewal Application. A. All licenses issued under this Section shall be effective from the date of approval by the City Council. All licenses expire at midnight on December 31 of each year. An application for the renewal of an existing license shall be made prior to the expiration date of the license and shall be made in such form as the City requires. The application shall state that the information in the prior application remains true and correct, except as otherwise indicated. If,in the judgment of the City Council, good and sufficient cause is shown by the applicant for the applicant's failure to submit a renewal application before the expiration of the existing license,the City Council may, if the other provisions of this Section are complied with, grant the renewal application. B. A license under this Section may not be renewed: (1) If the City Council determines that the licensee has failed to comply with the provisions of this Section in preceding license years; or i (2) If the licensee or, if the licensee does not manage the establishment, the manager of the licensed premises is not a resident of Minnesota on the date the renewal takes effect; or (3) If in the case of a partnership,the managing partner or other person who manages the establishment is not a resident of Minnesota on the date the renewal takes effect; or (4) If in the case of a corporation, or other organization, the manager, a proprietor, or agent in charge of the establishment is not a resident of Minnesota on the date the renewal takes effect. The time for establishing residence in Minnesota may for good cause be extended by the City Council. 565.10. Fees. A. Investigation Fee. An applicant for any license under this Section shall pay the City in advance at the time an original application is submitted, a nonrefundable investigation fee to cover the costs involved in verifying the license application and to cover the expense of any investigation needed to assure compliance with this Section. The investigation fee is set forth in Section 615. B. License Fee. (1) The annual license fee is set forth in Section 615. The license fee shall be paid annually, to be determined pro-rata from the date of issuance of the license. (2) The annual license fee shall be paid in full before the license is effective. 8 (3) When the license is for premises where the building is not ready for occupancy,the time fixed for computation of the license fee for the initial license period shall be ninety(90) days after approval of the license by the City Council or upon the date the building is ready for occupancy,whichever is sooner. (4) When a new license application is submitted as a result of incorporation by an existing licensee and the ownership, control, and interest in the license are unchanged, no additional fee shall be required. C. Billable Transaction Fees: Licensees shall pay a monthly transaction fee on all billable transactions. Such fee shall be due and payable within thirty(30) days. Failure to timely pay the billable transaction fee shall constitute a violation of this Section. The billable transaction license fee shall reflect the cost of processing transactions and other related regulatory, expenses as determined by the city council, and shall be reviewed and adjusted, if necessary, every twelve(12) months. Dealers shall be notified in writing thirty(30)days before any adjustment is implemented. The initial billable transaction fee for billable transaction shall be one dollar seventy five cents ($1.75)per electronic transaction,regardless of the number of items in that transaction, and$2.75 per manual transaction. 566.11. Persons Ineligible for a License. A. No license under this Section shall be issued to an applicant who is a natural person if. (1) The applicant is a minor at the time the application is filed;or (2) The applicant has been convicted of any crime directly related to the occupation licensed as prescribed by Minnesota Statutes, Section 364.03, subdivision 2, and has not shown competent evidence of sufficient rehabilitation and present fitness to perform the duties of a pawnbroker as prescribed by Minnesota Statutes, Section 364.03, subdivision 3; or (3) The proposed use does not comply with the St. Anthony Zoning Code; or (4) The proposed use does not comply with any health,building, building maintenance or other provisions of the City Code or state law; or (5) The owner of the premises licensed or to be licensed would not qualify for a license under the terms of this chapter; or (6) The applicant has failed to comply with one or more provisions of this Section; or 9 (7) The applicant is not a citizen of the United States or a resident alien, or upon whom it is impractical or impossible to conduct a background or financial investigation due to the unavailability of information; or (8) The applicant has committed fraud,misrepresentation, or bribery in securing a license; or (9) The applicant has committed fraud,misrepresentation or made false statements in the application and investigation for the applicant's business; or (10) Business practices, or conduct, deemed by the City to be contrary to the best interests,or safety,of the public; or (11) The applicant has violated within the preceding five(5)years, of any law relating to theft, damage or trespass to property, sale of a controlled substance,or operation of a business. B. No license under this Section shall be issued to an applicant that is a partnership if: (1) Any general partner or managing partner of such applicant is a minor at the time the application is filed; or (2) Any general partner or managing partner of such applicant has been convicted of any crime directly related to the occupation licensed as prescribed by Minnesota Statutes, Section 364.03, subdivision 2, and has not shown competent evidence of sufficient rehabilitation and present fitness to perform the duties of a pawnbroker as prescribed by Minnesota Statutes, Section 364.03, subdivision 3; or (3) The proposed use does not comply with the St. Anthony Zoning Code; or (4) The proposed use does not comply with any health,building,building maintenance or other provisions of the City Code or state law; or (5) The owner of the premises licensed or to be licensed would not qualify for a license under the terms of this chapter; or (6) The applicant has failed to comply with one or more provisions of this Section; or (7) Any general partner or managing partner of such applicant is not a citizen of the United States or a resident alien, or upon whom it is impractical or impossible to conduct a background or financial investigation due to the unavailability of information; or 10 (8) Any general partner or managing partner of such applicant has committed fraud,misrepresentation,or bribery in securing a license; or (9) Any general partner or managing partner of such applicant has committed fraud, misrepresentation or made false statements in the application and investigation for the applicant's business; or (10) Business practices, or conduct, deemed by the City to be contrary to the best interests, or safety, of the public; or (11) Any general partner or managing partner of such applicant has violated within the preceding five(5) years, of any law relating to theft, damage or trespass to property, sale of a controlled substance,or operation of a business. C. No license under this Section shall be issued to an applicant that is a corporation or other organization if: (1) Any manager,proprietor, or agent in charge of the business to be licensed is a minor at the time the application is filed; or (2) Any manager,proprietor,or agent in charge of the business has been convicted of any crime directly related to the occupation licensed as prescribed by Minnesota Statutes, Section 364.03, subdivision 2, and has not shown competent evidence of sufficient rehabilitation and present fitness to perform the duties of a pawnbroker as prescribed by Minnesota Statutes, Section 364.03, subdivision 3; or (3) The proposed use does not comply with the St. Anthony Zoning Code; or (4) The proposed use does not comply with any health,building,building maintenance or other provisions of the City Code or state law; or (5) The owner of the premises licensed or to be licensed would not qualify for a license under the terms of this chapter; or (6) The applicant has failed to comply with one or more provisions of this Section; or (7) Any manager,proprietor, or agent in charge of the business is not a citizen of the United States or a resident alien,or upon whom it is impractical or impossible to conduct a background or financial investigation due to the unavailability of information; or (8) Any manager,proprietor, or agent in charge of the business has committed fraud,misrepresentation,or bribery in securing a license; or 11 (9) Any manager,proprietor, or agent in charge of the business has connnitted fraud,misrepresentation or made false statements in the application and investigation for the applicant's business; or (10) Business practices, or conduct,deemed by the City to be contrary to the best interests,or safety,of the public; or (11) Any manager,proprietor, or agent in charge of the business has violated within the preceding five(5) years,of any law relating to theft, damage or trespass to property, sale of a controlled substance,or operation of a business. 565.12. Bond Required. At the time of filing an application for a license, the applicant shall file a bond in the amount of Five Thousand Dollars ($5,000.00) with the City. The bond, with a duly licensed surety company as surety thereon, must be approved as to form by the City Attorney. The bond must be conditioned that the licensee shall observe all ordinances of the City and all laws in regulation to the business of secondhand dealers, and that the licensee will account for and deliver to any.person legally entitled thereto any articles which may have come into the possession of the licensee as a secondhand dealer, or in lieu thereof such licensee shall pay the person or persons the reasonable value thereof. The bond shall contain a provision that it may not be cancelled without thirty(30) days advance written notice to the City. 565.13. Records Required. A. Exempt Transactions. The following items,when received by a dealer, are exempt from recording and reporting requirements in this Section,regardless of the purchase price paid by the dealer, asking price if consigned or brokered,or value attributed to it if accepted in trade: (1) The receipt of new or used merchandise from a merchant,manufacturer or wholesaler having an established permanent place of business, and the retail sale of said merchandise,provided the secondhand dealer must maintain a record of all such transactions which describes each item, and must identify such items in a manner which relates them to that transaction record. Any identification code used by the dealer must be provided to the Chief of Police, or the chief s designee upon request. (2) The sale or receipt of secondhand household kitchen and laundry appliances. (3) The sale or receipt of secondhand furniture, excluding audio,video and other electronic devices. (4) The sale or receipt of secondhand cookware, glassware and eating utensils that do not contain precious metals. 12 (5) The sale or receipt of secondhand clothing and shoes. (6) The sale or receipt of secondhand infant's, toddler's or children's clothing, appliances, furniture, or safety devices. B. Recordable Transactions. Every dealer, at the time of receipt of any item which has a unique identifier,or is or contains precious metals or gems,regardless of the purchase price,.asking price if consigned or brokered, or value attributed to it if accepted in trade,or any other item for which the dealer paid fifteen dollars ($15.00) or more,by check or other consideration, or which the dealer intends to offer for sale, or broker, for thirty dollars($30.00) or more, and which is not exempted in subsection 565.13(A) shall immediately and legibly record, using the English language, in ink or other indelible medium in a book,on forms,or in a computerized record approved by the Chief of Police, or the chief s designee,the following information: (1) A complete and accurate description of each item including,but not limited to, any trademark, identification number, serial number,model number, brand name, or other identifying mark on such an item. (2) The purchase price, asking price if consigned, or value attributed to item if accepted in trade, for each item received. (3) Date and time the dealer received the item of property. (4) Full name,residence address,residence telephone number, date of birth, and accurate description of the person from whom the item of property was received, including: sex, height,weight,race,color of eyes and color of hair. (5) The identification number and state of issue from any of the following forms of identification presented by the seller: (a) Current valid Minnesota driver's license. (b) Current valid Minnesota identification card. (c) Current valid photo driver's license or photo identification card issued by another state or province of Canada. (6) The signature of the person identified in the transaction. C. Inspection of Records. The records must at all reasonable times be open to inspection by the Police Department or department of licenses and consumer services. Records of all transactions shall be retained for at least three (3) years from the date of transaction. 565.14. Daily Reports to Police. A. Reportable Transactions. Except for items received through consignment, or for which payment in full is made with a credit or voucher redeemable for merchandise from the dealer, every dealer shall report daily, to the Police Department, any recordable transaction in 13 which one (1) or more of the following items is received, regardless of the purchase price, asking price if consigned or brokered, or value attributed to it if accepted in trade: (1) Any item with a unique identifier. (2) Items containing precious metals. (3) Items containing precious gems. (4) Any of the following items for which the dealer paid twenty-five dollars ($25.00) or more, in cash or other consideration, or which the dealer intends to offer for sale, or broker, for fifty dollars ($50.00) or more. (a) Electronic audio equipment. (b) Electronic video equipment. (c) Musical instruments. (d) Photographic and optical equipment. (e) Electronic office equipment. (f) Computers, monitors, printers, scanners and computer hardware. (g) Cellular telephones and pagers. (h) Outboard motors, inboard drives, and powered golf carts. (i) Electric and gas powered yard or garden equipment and tools. (j) Electric,pneumatic or hydraulic powered construction or mechanic's equipment or tools. (k) Other items that are commonly considered "collectibles." (5) Sporting equipment for which the secondhand dealer paid one hundred dollars ($100.00) or more, in cash or other consideration, or which the secondhand dealer intends to offer for sale, or broker, for two hundred dollars ($200.00) or more. (6) Architectural elements, lighting fixtures or lamps, limited to those which the secondhand dealer paid one hundred fifty dollars ($150.00) or more, in cash or other consideration, or which the secondhand dealer intends to offer for sale, or broker, for three hundred dollars ($300.00) or more. 14 (7) Artist signed or artist attributed works of art, other than architectural elements, lighting fixtures or lamps, limited to those for which the secondhand dealer paid two hundred fifty dollars ($250.00) or more, in cash or other consideration, or which the secondhand dealer intends to offer for sale, or broker, for five hundred dollars ($500.00) or more. B. Method. Dealers must provide to the Police Department the information required in subsection 565.13(B)(1) through (6), in writing, on forms approved by the Chief of Police, or the chiefs designee, for all reportable transactions. The dealer must display a sign of sufficient size, and in a conspicuous place in the premises, so as to inform all patrons that transactions are reported to the Police Department daily. Dealers must submit every reportable transaction to the Police Department daily in the following manner: (1) Dealers must provide to the Police Department the information required in subsection 565.13(B)(1) through(6), for all reportable transactions, by transferring it from their computer to the Police Department via modem. All required records must be transmitted completely and accurately after the close of business each day in accordance with standards and procedures established by the City using a dial-callback protocol or other procedures that address security concerns of the dealers and the City. (2) If the dealer who has consistently reported via modem, is unable to successfully transfer the required reports by modem, the dealer must provide the Police Department printed copies of all reportable transactions for that date by 12:00 noon the next business day. 565.15. Receipt Required. Every dealer must provide a receipt, upon request, to any person from whom they received goods for which a record was required in subsection 565.13, and must maintain a duplicate of that receipt for three (3) years. The receipt must include sufficient information to enable the Police Department to identify the transaction, and every item related to it, in the dealer's records. 565.16. Payment by Check Only. When a dealer buys or otherwise receives an item, payment shall be made by check only, made payable to a named payee who is the actual and identified seller. 565.17. Holding Period. Any item received by a dealer, for which a report to the police is required in subsection 565.14, shall not be sold or otherwise transferred for thirty(30) days after the date the Police Department receive such report except as provided in subsection 565.22(E). Items may not be altered, modified or changed in anyway during the holding period. 15 565.18. Police Order to Hold Property. A. Investigative Hold. Whenever a law enforcement official from any agency notifies a dealer not to sell an item, the item must not be sold or removed from the premises. The investigative hold shall be confirmed in writing by the originating agency within seventy-two (72)hours and will remain in effect for fifteen (15) days from the date of initial notification, or until the investigative order is canceled, or until an order to hold/confiscate is issued,pursuant to subsection 565.18(B), whichever comes first. B. Order to Hold. Whenever the Chief of Police or the chiefs designee notifies a dealer not to sell an item, the item must not be sold or removed from the licensed premises until authorized to be released by the Chief of Police or the chiefs designee. The order to hold shall expire ninety(90) days from the date it is placed unless the Chief of Police or the chiefs designee determines the hold is still necessary and notifies the dealer in writing. C. Order to Confiscate. If an item is identified as stolen or evidence in a criminal case, the Chief of Police or the chief s designee may: (1) Physically confiscate and remove it from the dealer's premises, pursuant to a written order from the Chief of Police or the chiefs designee, or (2) Place the item on hold or extend the hold as provided in subsection 565.18(B), and leave it in the dealer's premises. When an item is confiscated, the person doing so shall provide identification upon request of the dealer, and shall provide the dealer the name and phone number of the confiscating agency and investigator, and the case number related to the confiscation. When an order to hold/confiscate is no longer necessary, the Chief of Police or the chief s designee shall so notify the dealer. 565.19. Inspection of Forms. The licensee must allow the Chief of Police of the chief s designee to enter the premises where the licensed business is located or business records are maintained, including all off-site storage facilities as authorized in subsection 565.22(E), during normal business hours, except in an emergency, for the purpose of inspecting such premises and inspecting the items, ware and merchandise and records therein to verify compliance with this Section or other applicable laws. 565.20. Label Required. Dealers must attach a label to every item, for which a report to the Police Department is required in subsection 565.14, at the time it is received in inventory. Permanently recorded on this label must be the number or name that identifies the transaction in the dealer's records, the name of the item, and the date the item can be sold. Labels shall not be re-used. 16 565.21. Prohibited Acts. The following acts are prohibited under this Section: A. No person under the age of eighteen(18) years may sell or consign, or attempt to sell or consign, any goods with any dealer, nor may any dealer receive any goods from a person under the age of eighteen (18) years. B. No dealer may receive any goods from a person of unsound mind or an intoxicated person. C. No dealer may receive any goods unless the seller presents one of the following forms of identification: (1) Current valid Minnesota driver's license. (2) Current valid Minnesota identification card. (3) Current valid photo driver's license or photo identification card issued by another state or province of Canada. D. No dealer may receive any item of property that possesses an altered or obliterated serial number or "operation identification" number, or any item of property that has had its serial number removed. 565.22. General License Restrictions. A. Firearms and Weapons. A secondhand dealer shall not receive, display or sell any merchandise consisting of a revolver,pistol, shotgun, automatic rifle, semiautomatic military- style assault weapon (as defined by Minnesota Statutes, Section 624.712), switchblade knife, or other similar weapons or firearms. B. Responsibilily of Licensee. A licensee under this Section shall be responsible for the conduct of the business being operated and shall maintain conditions of order. The conduct of agents or employees of a licensee, engaged in performance of duties for the licensee, shall be deemed the conduct of the licensee. C. Gambling. No licensee under this Section may keep,possess, or operate,or permit the keeping,possession,or operation on the licensed premises of dice, slot machines,roulette wheels,punchboards,blackjack tables, or pinball machines which return coins or slugs, chips,or tokens of any kind,which are redeemable in merchandise or cash. No gambling equipment authorized under Minnesota Statutes, Chapter 349, may be kept or operated and no raffles may be conducted on the licensed premises and/or adjoining rooms. The purchase of lottery tickets may take place on the licensed premises as authorized by the director of the lottery pursuant to Minnesota Statutes, Chapter 349A. 17 D. Penalty for Property Owner. It is unlawful for any person who owns or controls real property to knowingly permit it to be used for the sale of secondhand goods without a license. E. Premises. All property held for sale must be stored in an enclosed facility and may not be stored outside of the premises. The Chief of Police or the chief s designee may, however, upon written request,approve an off-site locked and secured storage facility. The dealer shall permit immediate inspection of the facility by the Chief of Police or the Chief s designee at any time during business hours. All provisions of this Section regarding record keeping and reporting apply to the facility and its contents. All property shall be stored in compliance with zoning and/or fire regulations and in an orderly manner. The premises shall also be equipped with an operational security alarm. 565.23. Suspension or Revocation of License. A. The City Council may suspend or revoke a license issued under this Section upon a finding of a violation of: (1) Any of the provisions of this Section; (2) Any state statute regulating secondhand dealers; (3) Any crime directly related to the occupation licensed as prescribed by Minnesota Statutes, Section 364.03, subdivision 2; (4) Fraud,misrepresentation,or bribery in renewing a license; (5) Business practices, or conduct,deemed by the City to be contrary to the best interests,or safety, of the public; or (6) Any law relating to theft,damage or trespass to property, sale of a controlled substance, or operation of a business. B. A revocation or suspension by the City Council shall be preceded by written notice to the licensee and a public hearing. The written notice shall give at least ten(10) days' notice of the time and place of the hearing and shall state the nature of the charges against the secondhand dealer. The notice may be served upon the secondhand dealer personally or by United States mail addressed to the most recent address of the business in the license application. 565.24. Penal . Violation of any provision of this Section shall be a misdemeanor. 18 565.25. Severabill Should any provision of this Section be declared by a court of competent jurisdiction to be invalid, such decision shall not effect the validity of the ordinance as a whole or any part other than the part declared invalid. The City Council hereby declares that it would have adopted this ordinance and each section, subsection, sentences, clause, or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, or phrases be declared invalid. This Ordinance shall be in full force and effect upon passage by the City Council and `publication of the Ordinance or a summary thereof in the City's official newspaper. Section 2: This ordinance will become effective as of the date of its publication. First Reading: May 28, 2003 Second Reading: June 10, 2003 Adopted: June 24, 2003 Mayor ATTEST: City Clerk Publish: St. Anthony Bulletin 19 14 CITY OF ST. ANTHONY ORDINANCE 2003-005 AN ORDINANCE AMENDING SECTION 1635.03 OF THE ZONING CODE TO ALLOW PAWNBROKERS AND SECONDHAND DEALERS AS CONDITIONAL USES IN COMMERCIAL DISTRICTS The City Council of the City of St. Anthony hereby ordains: Section 1. Section 1635.03 of the City's Zoning Code is amended to add the following uses as permitted conditional uses within a general commercial district (C district). (x) Secondhand Dealers that comply with the requirements of Section 565. (w) Pawnbroker businesses which comply with the requirements of Section 566. Section 2: This ordinance will become effective as of the date of its publication. First Reading: May 28, 2003 Second Reading: June 10, 2003 Adopted: June 24, 2003 Mayor ATTEST: City Clerk Publish: St. Anthony Bulletin • • I 1� CITY OF ST. ANTHONY ORDINANCE 2003-006 AN ORDINANCE AMENDING CHAPTER 6 OF THE ST. ANTHONY CITY CODE; ESTABLISHING FEES FOR THE INVESTIGATION AND LICENSING OF PAWNBROKERS AND SECONDHAND DEALERS The City Council of the City of St. Anthony hereby ordains: Section 1. The current provisions in Section 615.06 (Other License Fees) of the St. Anthony City Code relating to Secondhand Dealers are hereby repealed and superceded by the provisions of Section 2 of this ordinance as set forth below. Section 2. Section 615.06 of the City Code is amended to establish investigation and licensing fees for Pawnbrokers and Secondhand Dealers in the City that comply with Sections 565 and 566 of the City Code. Minnesota Applicable License Fee Term Transferable Statutes Code Section Pawnbroker $5000 License Fee One year•, No 566 $750 Investigation Fee Expires 12/31 of each year Secondhand $5000 License Fee One year, No 565 Dealer $750 Investigation Fee Expires 12/31 of each year Section 3: This ordinance will become effective as of the date of its publication. First Reading: May 28, 2003 Second Reading: June 10, 2003 Adopted: June 24, 2003 Mayor ATTEST: City Clerk Publish: St. Anthony Bulletin 16 CITY OF ST. ANTHONY ORDINANCE 2003-007 AN ORDINANCE AMENDING SECTION 1635.03 OF THE ST. ANTHONY ZONING CODE TO ALLOW ADULT DAY CARE CENTERS AS CONDITIONAL USES IN COMMERCIAL DISTRICTS The City Council of the City of St. Anthony hereby ordains: Section 1. Section 1635.03 of the City's Zoning Code is amended to add the following use as a permitted conditional use within a general commercial district(C District); (y) Adult Day Care Centers, licensed under Minnesota Statutes, Chapter 245A and Minnesota Rules, Sections 9555.9600 to 9555.9730. Section 2: This ordinance will become effective as of the date of its publication. First Reading: May 28, 2003 Second Reading: June 10, 2003 Adopted: June 24, 2003 Mayor ATTEST: City Clerk Publish: St. Anthony Bulletin 17 MEMORANDUM DATE: 5/13/03 MEETING DATE: 5/20/03 TO: Chair Melsha & Planning Commission Members FROM: Susan M.H. Hall, Assistant City Manager SUBJECT: Adult Day Care Overview: For the last couple of months, Planning Commissioners have been discussing the adult day care use request. Last month, Commissioners agreed to recommend the use as a conditional use permit in the Commercial zoning district. On May 20, 2003, the Planning Commission will hold a public hearing amending Section 1635.03 of the zoning code to allow adult day care centers as conditional uses in the Commercial zoning district. The City Attorney's office has reviewed the statutes and state rule regulating adult day care centers. The Minnesota Department of Human Services licenses such centers. The state rules establish a number of regulations governing adult day care centers to protect the safety and welfare of program participants.' In addition, it is bbT necessary for the City to pass an ordinance regulating adult day care centers as state law sufficiently covers the area. Thus, in the proposed ordinance, adult day care centers are limited to those centers that are licensed under state laws and rules. Requested Action: Staff recommends that the Planning Commission take public comment on the zoning amendment and then refer it onto the City Council as recommended action. The recommendation will be considered by the City Council on May 27. 18 CITY OF ST. ANTHONY VILLAGE RESOLUTION 03 - 046 A RESOLUTION APPROVING A SIDE YARD VARIANCE AT 2813-36TH AVENUE NE WHEREAS, the property owner of 2813-36th Avenue NE (Dave Stepan) has requested a side yard variance to accommodate an addition to his home at said address; and WHEREAS, at the Public Hearing, the Planning Commission recommended approval of an 11 foot variance at said property due to the following conditions: 1. The existing structure is within the setback. 2. The extra space on the lot will be put to a better use. 3. Granting the variance is in the spirit and intent of the City Ordinances. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of St. Anthony hereby approves the request for an 11 foot variance at 2813-36th Avenue NE, by property owner, Dave Stepan, as recommended by the St. Anthony Planning Commission. Adopted this day of , 2003. Mayor ATTEST: City Clerk Reviewed for Administration: City Manager 19 MEMORANDUM DATE: 06/10/03 MEETING DATE: 06/17/03 TO: Planning Commission Members FROM: Susan M.H. Hall, Assistant City Manage�Xj SUBJECT: 281336 th Avenue NE: Side Yard Variance Request Requested Action: Dave Stepan, property owner of the single-family residential lot at 2813 36th Avenue NE, is requesting a side yard variance of 13 feet for a proposed distance of 32 feet from the curb for proposed addition. Background: The City's single-family residential zoning code states that a side yard adjacent to a street must be at least 30 feet wide. In addition, it is a standard city requirement to allow for an additional setback of 15 feet for the easement/public right of way. Given this, Mr. Stepan must be a total of 45 feet from curb to the new addition along Belden Drive (see sketch attached). The sketch plan from Mr. Stepan shows a proposed distance of 32'2" from the curb. He is asking for a side yard variance of 13 feet. The proposed bedroom addition measures 16 X 16. Mr. Stepan points to the undue hardship as not having the accommodations needed. The need, explained in the attached letter from the applicant, is that an addition will make for an acceptable living situation for his family. He goes onto explain the corner lot city requirements restrict him from adding on needed space (see applicant letter attached). He is asking for reprieve for his circumstances. 2® Date: g� 6-� Fee: Q R-1 . . . . . . $ 60.00 Other . . . . $100.00 CITY OF ST. ANTHONY VILLAGE Petition for Variance Applicant: ` �.se— Phone: d&P Address: Status of Applicant,(Owner, Buyer, Lessee, etc.): C,c1A P +� Legal Description of property proposed for variance: Sew >4 Street Address: 13 �� 6""` j IV Presently Zoned: Minnesota Statutes and City Ordinances require that the following conditions must be satisfied for approval of this request. Please respond to these conditions using additional sheets if necessary. 1. Because of the particular physical surroundings, shape, or topographical conditions of the parcel or lot, the.proposed.variance. would relieve an undue hardship, as distinguished from a mere inconvenience, should the applicable ordinance be strictly enforced. (Sfz a6chid) 2. The purpose of the proposed variance is not based exclusively upon a desire to increase the value or income potential of the parcel of land, but would correct extraordinary circumstances applicable to this property but not applicable to other property in the vicinity or zoning district. 3. The alleged difficulty or hardship is caused by the City Ordinance and has not been created by any persons presently having an interest in the parcel of land. Signature of Applicant Petition for Variance 21 Re: 2813 36th Ave NE Dave and Darnell Stepan May 16, 2003 Question One: Because this is a comer lot the ordinance#1615.05 Subd. 6 requires that my side yard be at least 30' wide from the adjacent street. Currently the house sits 35'2" from the curb. I initially thought that I would have no problem in that I only wanted to come out toward the street an additional two feet and sixteen feet toward the back yard and sixteen feet west again. Then I was told I needed to add 15' onto the 30' making for a total of 45' from the curb. This 15' addition is not stated in any document I was given. It's an undue hardship for my family not to have the accommodations that we need. This need is an addition, which will make for an acceptable living situation. My end result will be converting a current bedroom into a bathroom. Currently we have one full bathroom 32'square for a family of five including four girls. Its an undue hardship for me to have to add a bedroom onto the back or side of the garage as that is the only area which we could put a bedroom and accommodate the ordinance as it is written. I would then have my four,five and eight year old sleeping on the other side of the house instead of directly upstairs. This is a safety and security concern I have. I might not hear them in case of an emergency. Or I might not hear the smoke detector located in the hall outside my children's rooms. Another issue--if we are unable to add on to where we need to, we wouldn't be able to see or hear any potential security issues being located on the other side of the house. Question Two: Because this is a corner lot this ordinance unfairly restricts me to add needed space to my house while it does not limit properties that do not have side streets as boundaries. Lots that fall between the streets may build up to 5' from a neighbor's house as long as the total combined width is 15' while I am limited to 45' from a street. The question I have is it fair to potentially add an addition that faces 5' from the neighbors lot line while I need to have 45' of lawn on the other side of the house? This ordinance was created after this house was built, as this house is 35' from the street curb. This ordinance unfairly restricts my right to add to my property as I see best while it does not restrict property owners whose side lot lines are not adjacent to streets. Question Three: I agree this hardship is caused by the City of St. Anthony ordinance and has not been created by any person presently having interest in our property. One final comment: Had the current ordinance been on file at the time this house was built it couldn't have been built,as it is located now. The house would be eleven feet from the neighbors lot line. OC 22 %.GT �i; ,'1 '.•" ST. ANMON'l-7 VILLAGE PA'?T OF T_6T .7, BLOCK 1. GA-3DF,:\A AC ?T'S Pi(M MR. ?.'.•i. 73ILL"AIN K i51s� ia - - - - - - - - - 1 036 o [IrA'orj 5 /hr&'SCALE. Legal Description: That part of Lot 7, Blockl, Gardena Acres, in the Village of St. Anthony, Minnesota , Section 6, Township 29, Range 23, described as follows : Beginning at the Northwest corner of said Lot 7, thence East .along the North line of said Lot 7 a distance of 130.23 feet to the actual point of beginning, thence continuing East along said North line of said Lot 7 a distance of 130.24 feet, thence South along a line parallel to the East line of said Lot 7 a distance of 121 feet, thence West along the South line of said Lot 7 a distance of 130.36 feet, thence North a distance of 121 feet to the actual point of beginning. T hereby certify that this survey vas prepared by —e or under my direct supervision and that T am a dul-v tered Land Surveyor under the laws of the. State off' dota, Date : June 20, 1958 Reg". No. 556 23 CITY OF ST. ANTHONY VILLAGE RESOLUTION 03 - 045 A RESOLUTION APPROVING A POLLING LOCATION CHANGE WHEREAS, registered voters residing in Precinct 1, Hennepin County of the City of St. Anthony voted at the St. Anthony Fire Station in previous elections; and WHEREAS, due to redevelopment of the area in which the Fire Station was located and its subsequent relocation, a new location for said polling place must be established; and WHEREAS, after consideration of available locations, it has been determined that the most favorable polling location is Doran Hall, located in the St. Charles Borromeo Catholic Church, 2739 Stinson Boulevard; and WHEREAS, said location is in compliance with Minnesota Statutes. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of St. Anthony hereby approves relocation of the polling place for the registered voters of Hennepin County, Precinct 1, to St. Charles Borromeo Catholic Church (Doran Hall), 2739 Stinson Boulevard, in the City of St. Anthony. Adopted this day of , 2003. Mayor ATTEST: City Clerk Reviewed for Administration: City Manager 24 CITY OF ST. ANTHONY RESOLUTION 03-043 RESOLUTION APPROVING DECERTIFICATION OF KENZIE TERRACE TAX INCREMENT FINANCING DISTRICT (HENNEPIN COUNTY NO. 1950) BE IT RESOLVED by the City Council of the City of St. Anthony, Minnesota (the "City"), as follows: 1. Recitals. The Housing and Redevelopment Authority of the City of St. Anthony(the "HRA")pursuant to the authority contained in Minnesota Statutes, Section 469.174 to 469.179 (the "Act") has established a tax increment financing district under the Act designated as Kenzie Terrace Tax Increment District (Hennepin County No. 1950) (the "District"). As required by the Act the city Council approved the establishment of the District by the HRA. It has been proposed that the HRA request Hennepin County to decertify the District pursuant to Minnesota Statutes, Section 469.177, subd. 12. 2. Decertification of the District. The proposal that the HRA request Hennepin County to decertify the District is hereby approved. Adopted this day of , 2003. Mayor ATTEST: City Clerk Reviewed for Administration: City Manager ' 25 EHLERzi & ASSOCIATES INC ® To: Roger Larson, City of St. Anthony From: Rebecca Kurtz &Jim Prosser, Ehlers &Associates W Date: June 18, 2003 Subject: Decertification of Kenzie Terrace Tax Increment Finance District It is recommended the City of St. Anthony take action to decertify the Kenzie Terrace Tax Increment Finance District. The District was established in 1982 to redevelop the blighted site located in the Southwest corner of the Village. Funding for the redevelopment project was through the issuance of Tax Increment Bonds issued in 1985 (these bonds were paid off in 1993). Presently, the District serves as a funding source for the City Hall/Community Center Bonds issued in 1995. There are several reasons for decertifying the Kenzie Terrace TIF District: • Retire the debt. The bonds issued to finance the redevelopment are callable in February 1, 2004, and the City has adequate cash to pay the outstanding debt, therefore paying off all debt associated with the City Hall/Community Center Building. o Savings of interest. By calling the bonds, interest expense of$235,315 will be saved. • Restrictions on the use of funds. Under the current law, other than for the City Hall/Community Center Bonds, the increment from the District cannot be used for other purposes outside of the TIF District boundaries. • Lessen the tax impact. Decertifying the District will place the property back on the City's tax roles. This will provide a significant increase to the City's tax capacity, and the City's expenses will be spread across a larger tax base. Therefore, the tax burden will decrease, and the impact of future debt will not be as significant. • Reduces impact of public facilities bond. Decertification of Kenzie reduces the tax impact of the costs associciated with the building of the new Public Works and Fire Station buildings. LEADERS IN PUBLIC FINANCE 3060 Centre Pointe Drive Phone: 651-697-8516 Fax: 651-697-8555 Roseville, MN 55113-1105 rkurtz @ehlers-inc.com 26 MEMORANDUM TO: Mayor and Members of the City Council Michael Mornson, City Manager FROM: Jerome P. Gilligan DATE: June 18, 2003 RE: CenterPoint Energy Minnegasco Franchise Renewal Ordinance CenterPoint Energy Minnegasco has been working throughout the metro area over the past 12-18 months renewing their franchise agreements with cities. The existing franchise with St. Anthony will expire in the near future. The attached form of franchise ordinance has been used in other cities and is derived from a model prepared by the League of Minnesota Cities with certain modifications. The franchise ordinance gives CenterPoint Energy Minnegasco a nonexclusive right to use public grounds to distribute gas to customers within the City. The proposed franchise ordinance differs from the prior franchise since it does not specify policies and procedures related to the location of facilities in the City's streets and rights- of-way. Instead the proposed franchise ordinance incorporates the City's Right-of-Way Management Ordinance (Section 1165 of the City Code), with respect to the location of facilities in the City's public grounds. Under the proposed franchise ordinance the City has the right to adopt a franchise fee by a separate ordinance. The franchise fee must be imposed on a same or greater equivalent amount on all other energy providers in the City that the City has a right to impose such a fee or tax. The fee may be calculated on the basis of a percentage of gross revenues received from customers, a flat meter based fee or a combination thereof. The adoption of the franchise ordinance does not impose a franchise fee but gives the City Council the ability to do so in the future should it wish to do so. DORSEY & WHITNEY LLP FRANCHISE ORDINANCE FOR CENTERPOINT ENERGY MINNEGASCO ORDINANCE NO.2003-008 CITY OF ST. ANTHONY,HENNEPIN AND RAMSEY COUNTIES,MINNESOTA AN ORDINANCE GRANTING CENTERPOINT ENERGY MINNEGASCO,A NATURAL GAS UTILITY,A DIVISION OF CENTERPOINT ENERGY RESOURCES CORP., A DELAWARE CORPORATION, ITS SUCCESSORS AND ASSIGNS,A NONEXCLUSIVE FRANCHISE TO CONSTRUCT, OPERATE, REPAIR AND MAINTAIN FACILITIES AND EQUIPMENT FOR THE TRANSPORTATION, DISTRIBUTION, MANUFACTURE AND SALE OF GAS ENERGY FOR PUBLIC AND PRIVATE USE AND TO USE THE PUBLIC WAYS AND GROUNDS OF THE CITY OF ST. ANTHONY,MINNESOTA, FOR SUCH PURPOSE; AND, PRESCRIBING CERTAIN TERMS AND CONDITIONS THEREOF. THE CITY COUNCIL OF THE CITY OF ST. ANTHONY, HENNEPIN AND RAMSEY COUNTIES, MINNESOTA, ORDAINS: SECTION 1. DEFINITIONS. For purposes of this Ordinance, the following capitalized terms listed in alphabetical order shall have the following meanings: City. The City of St. Anthony, Counties of Hennepin and Ramsey, State of Minnesota. City Utility System. Facilities used for providing public utility service owned or operated by City or agency thereof, including sewer, storm sewer, water service, street lighting and traffic signals, but excluding facilities for providing heating, lighting, or other forms of energy. Commission. The Minnesota Public Utilities Commission, or any successor agency or agencies, including an agency of the federal government, which preempts all or part of the authority to regulate gas retail rates now vested in the Minnesota Public Utilities Commission. Company. CenterPoint Energy Minnegasco, a natural gas utility, a division of CenterPoint Energy Resources Corp.,a Delaware corporation, its successors and assigns including all successors or assigns that own or operate any part or parts of the Gas Facilities subject to this franchise. Effective Date. The date on which the ordinance becomes effective under Section 2.2. WS-17809602 l SH 155-77 Gas Facilities. Gas transmission and distribution pipes, lines, ducts, fixtures, and all necessary equipment and appurtenances owned or operated by the Company for the purpose of providing gas energy for public or private use. Gas. Natural gas, manufactured gas, mixture of natural gas.and manufactured gas or other forms of gas energy. Non-Betterment Costs. Costs incurred by Company from relocation, removal or rearrangement of Gas Facilities that do not result in an improvement to the Gas Facilities. Notice. A writing served by any party or parties on any other party or parties. Notice to Company shall be mailed to CenterPoint Energy Minnegasco, V.P., Regulatory& Supply Service, 800 LaSalle Avenue, Minneapolis, MN 55402-2006. Notice to the City shall be mailed to the City Manager, City of St. Anthony, 3301 Silver Lake Road, St. Anthony, Minnesota 55418. Any party may change its respective address for the purpose of this Ordinance by written notice to the other parties. Public Way. Public right-of-way within the City as defined in Minn. Stat. § 237.162, subd. 3. Public Ground. Land owned or otherwise controlled by the City for park, open space or similar public purpose. SECTION 2. ADOPTION OF FRANCHISE. 2.1. Grant of Franchise. City hereby grants Company, for a period of 20 years from the Effective Date, the right to import, manufacture, distribute and sell gas for public and private use within and through the limits of the City as its boundaries now exist or as they may be extended in the future. This right includes the provision of Gas that is (i) manufactured by the Company or its affiliates and delivered by the Company, (ii)purchased and delivered by the Company or(iii) purchased from another source by the retail customer and delivered by the Company. For these purposes, Company may construct, operate, repair and maintain Gas Facilities in, on, over, under and across the Public Ways and Public Grounds, subject to the provisions of this Ordinance. Company may do all reasonable things necessary or customary to accomplish these purposes, subject however, to such lawful regulations as may be adopted by separate ordinance and as currently exist under Section 1165 of the City Code. The City shall give the Company notice 60 days in advance of proposed changes to Section 1165 of the City Code. The City and Company shall negotiate in good faith to reach mutually acceptable changes. If the City and Company are unable to agree, disputes will be handled under the terms of Section 2.5 of this Ordinance. If a provision of Section 1165 of the City Code conflicts with a provision on the same subject in this Ordinance, this Ordinance will control. 2.2. Effective Date; Written Acceptance. This franchise shall be in force and effect from and after its passage of this Ordinance and publication as required by law and its acceptance by Company. If Company does not file a written acceptance with the City within 90 Days after the date the City Council adopts this Ordinance, or otherwise places the City on written notice, at JMS-178096v12 2 SH155-77 any time, that the Company does not accept all terms of this franchise, the City Council by resolution may either repeal this ordinance or seek its enforcement in a court of competent jurisdiction. 2.3. Service and Gas Rates. The service to be provided and the rates to be charged by Company for gas service in City are subject to the jurisdiction of the Commission 2.4. Publication Expense. The expense of publication of this Ordinance shall be paid by Company. 2.5. Dispute Resolution. If either party asserts that the other party is in default in the performance of any obligation hereunder, the complaining party shall notify the other party of the default and the desired remedy. The notification shall be written. Representatives of the parties must promptly meet and attempt in good faith to negotiate a resolution of the dispute. If the dispute is not resolved within 30 days of the written notice, the parties may jointly select a mediator to facilitate further discussion. The parties will equally share the fees and expenses of this mediator. If a mediator is not used or if the parties are unable to resolve the dispute within 30 days after first meeting with the selected mediator, either party may commence an action in District Court to interpret and enforce this franchise or for such other relief permitted by law. 2.6. Continuation of Franchise. If the City and the Company are unable to agree on the terms of a new franchise by the time this franchise expires, this franchise will remain in effect until a new franchise is agreed upon, or until 90 days after the City or the Company serves written Notice to the other party of its intention to allow the franchise to expire. SECTION 3. LOCATION, OTHER REGULATIONS. 3.1. Location of Facilities. Subject to regulation under Section 1165 of the City Code, Gas Facilities in the Public Way shall be located, constructed, and maintained so as not to disrupt normal operation of any City Utility System. Gas Facilities may be located on Public Grounds as determined by the City. 3.2. Restoration of Public Ways and Public Ground. Restoration of the Public Way shall be subject to Section 1165 of the City Code. After completing work requiring the opening of Public Ground, the Company shall restore the Public Ground to as good a condition as formerly existed, and shall maintain the surface in good condition for six (6) months thereafter. All work shall be completed as promptly as weather permits. If Company shall not promptly perform and complete the work, remove all dirt, rubbish, equipment and material, and put the Public Ground in the said condition and after demand to Company to cure, City shall, after passage of a reasonable period of time following the demand,but not to exceed five days, have the right to make the restoration of the Public Ground at the expense of Company. Company shall pay to the City the cost of such work done for or performed by the City. This remedy shall be in addition to any other remedy available to the City for noncompliance with this Section. 3.3. Waiver of Performance Security. The City hereby waives any requirement for Company to post a construction performance bond, certificate of insurance, letter of credit or any JMS-178096v12 3 SH155-77 other form of security or assurance that may be required under Section 1165 of the City Code currently or in the future. The City reserves all other rights under Section 1165 of the City Code to enforce Company performance requirements for work in the Public Way or Public Ground. 3.4. Avoid Damage to Gas Facilities. Nothing in this Ordinance relieves any person from liability arising out of the failure to exercise reasonable care to avoid damaging Gas Facilities while performing any activity. SECTION 4. RELOCATIONS. 4.1. Relocation of Gas Facilities. Relocation of Gas Facilities in Public Ways shall be subject to Section 1165 of the City Code. City may require Company at Company's expense to relocate or remove its Gas Facilities from Public Grounds upon a finding by City that the Gas Facilities have become or will become a substantial impairment to the existing or proposed public use of the Grounds. Relocation Gas Facilities in Public Ground shall comply with applicable City ordinances consistent with law. 4.2. Projects with Federal Funding. Relocation, removal, or rearrangement of any Company Gas Facilities made necessary because of the extension into or through City of a federally-aided highway project shall be governed by the provisions of Minnesota Statutes Section 161.46. 4.3. No Waiver. The provisions of Section 4 apply only to Gas Facilities constructed in reliance on a permit or franchise from City and Company does not waive its rights under an easement or prescriptive right or State or County permit. SECTION 5. CHANGE IN FORM OF GOVERNMENT. Any change in the form of government of the City shall not affect the validity of this Ordinance. Any governmental unit succeeding the City shall, without the consent of Company, succeed to all of the rights and obligations of the City provided in this Ordinance. SECTION 6. FRANCHISE FEE. 6.1 Separate Ordinance. During the term of the franchise hereby granted, the City may impose on the Company a franchise fee. In addition to the franchise fee, the Company shall be required to pay only such other fees, charges, costs or taxes, which are generally required to be paid by other businesses or persons in the city. The franchise fee must be imposed by a separate ordinance adopted by the City Council, which ordinance may not be adopted until at least 60 days after Notice enclosing such proposed ordinance has been served upon the Company by certified mail. A fee imposed under this section does not become effective until 60 days after Notice enclosing the adopted ordinance has been served upon the Company by certified mail. 6.2 Condition of Fee. The separate ordinance imposing the fee shall not be effective against the Company unless it lawfully imposes a fee or tax of the same or greater equivalent amount on the sale and/or delivery of energy within the City by any other energy supplier, provided that, as to such supplier, the City has the authority to require a franchise fee or impose a WS-17809602 4 SH155-77 tax. The Company may petition the City to exempt or reduce the franchise fee applicable to customers who bypass or pose an imminent threat of physically bypassing the Company's distribution system for economic reasons, including the existence of the franchise fee. The City shall not unreasonably withhold such exemption or reduction in franchise fees for such customers. 6.3 Calculation of Fee. The City may impose the franchise fee: (i) as a combination of percentage of gross revenues received from customers in the Residential Customer Class for its utility operations within the City or as a flat meter fee per customer, for customers in non-residential customer classes ("Combination Fee Method"), or(ii) as a flat meter fee per customer within the City("Flat Fee Method"), or(iii)as a fee based on units of gas delivered to any class of retail customers within the corporate limits of the City("Unit Fee Method"). The method of imposing the franchise fee: the percent of revenue rate, the flat rate and the per unit rate may differ for each customer class. If prior to the expiration of this franchise, customers in the Company's Residential Customer Class begin to purchase and/or transport gas from companies other than the Company, the City may only impose the Flat Fee Method or the Unit Fee Method, as a way of collecting fees. If the percentage of Combination Fee Method has previously been implemented, it must be changed to the Flat Fee Method or the Unit Fee Method. 6.4 Collection of the Fee. The franchise fee will be payable not less often than quarterly and based on any of the alternative formulas described in Section 6.3 during complete billing months of the period for which payment is to be made. The franchise fee formula may be changed by ordinance from time to time; however, each change must meet the same notice requirements and may not be made more often than annually. Such fee shall not exceed any amount that the Company may legally charge to its customers prior to payment to the City. Such fee is subject to subsequent reductions to account for uncollectibles and customer refunds incurred by the Company. The Company agrees to make available for inspection by the City at reasonable times all records necessary to audit the Company's determination of the franchise fee payments. SECTION 7. LIMITATION ON APPLICABILITY; NO WAIVER. This Ordinance constitutes a franchise agreement between the City and its successors and the Company and its successors and permitted assigns, as the only parties. No provision of this franchise shall in any way inure to the benefit of any third person (including the public at large) so as to constitute any such person as a third party beneficiary of the agreement or of any one or more of the terms hereof, or otherwise give rise to any cause of action in any person not a party hereto. This franchise agreement shall not be interpreted to constitute a waiver by the City of any of its defenses of immunity or limitations on liability under Minnesota Statutes, Chapter 466. SECTION 8. AMENDMENT PROCEDURE. Either party to this franchise agreement may at any time propose that the agreement be amended. This Ordinance may be amended at any time by the City passing a subsequent ordinance declaring the provisions of the amendment, which amendatory ordinance shall become WS-17809602 12 5 SH155-77 effective upon the filing of Company's written consent thereto with the City Clerk within 60 days after the effective date of the amendatory ordinance. JMS-178096v12 6 SH l 55-77 SECTION 9. PREVIOUS FRANCHISES SUPERSEDED. This franchise supersedes and replaces previous franchises granted to the Company or its predecessors. Upon Company acceptance of this franchise under Section 2.2, the previous franchise shall terminate. First Reading: June 24, 2003 Second Reading: Adopted: Mayor of the City of St. Anthony, Minnesota Attest: City Clerk, St. Anthony, Minnesota JMS-178096v 12 7 S H 155-77 27 CITY OF ST. ANTHONY VILLAGE RESOLUTION 03 - 044 A RESOLUTION AUTHORIZING APPLICATION FOR A DEVELOPMENT GRANT THROUGH THE LIVABLE COMMUNITIES DEMONSTRATION PROGRAM WHEREAS, the City of St. Anthony Village is a participant in the Livable Communities Act's Housing Incentives Program for 2003 as determined by the Metropolitan Council, and is therefore eligible to make application for funds under the Livable Communities Demonstration Account; and WHEREAS, the City has identified a proposed project within the City that meets the Demonstration Account's purpose(s) and criteria; and WHEREAS, the City has the institutional, managerial and financial capability to ensure adequate project administration; and WHEREAS, the City certifies that it will comply with all applicable laws and regulations as stated in the contract agreements; and WHEREAS, the City Council of St. Anthony Village, Minnesota agrees to act as legal sponsor for the project contained in the Demonstration Account application submitted on June 30, 2003. NOW, THEREFORE, BE IT RESOLVED that the City Manager is hereby authorized to apply to the Metropolitan Council for this funding on behalf of the City of St. Anthony Village and to execute such agreements as are necessary to implement the project on behalf of the applicant. Adopted this day of , 2003. Mayor ATTEST: City Clerk Reviewed for Administration: City Manager 28 EHLERS & nssacin - ES inc MEMORANDUM DATE: June 18, 2003 TO: Mike Morrison—City Manager FROM: Stacie Kvilvang—Associate Financial Advisor RE: LCDA Grant Application The Metropolitan Council Livable 'Communities Demonstration Account is designed to fund a variety of community development projects through loans or grants that link development and redevelopment with transit, link affordable housing with employment growth areas, intensify land use that leads to more compact development/redevelopment, encourage public infrastructure that connects urban and suburban communities, attracts private sector investment, or provides employment opportunities to residents. For the 2003 funding round, staff would like to submit an application for an $850,000 implementation grant that would be utilized for development of a central park with lighting, kiosks, benches, etc, as well as improvements to the storm water and infiltration ponds. If awarded funds, the City will be able to assure that the public park will be developed as originally envisioned by the City Council and Task Force and that the existing water quality issues can be adequately addressed. Application will be submitted to The Metropolitan Council on June 30, 2003, and funds will be awarded by them in November. Please contact me at 651-697-8506 if you have any questions. ! i 29 CITY OF ST. ANTHONY RESOLUTION 03-047 RESOLUTION APPROVING REDEVELOPMENT OPTION FOR THE STONEHOUSE/SAV I AND FIRE STATION SITE WHEREAS, the City of St. Anthony Village is redeveloping the site commonly referred to as the Stonehouse site ("Redevelopment Site"); and WHEREAS, Amcon Construction ("the Developer") submitted four (4) redevelopment options for the Redevelopment Site to the City for review and consideration; and WHEREAS, the City requested its Financial Consultant ("Ehlers and Associates") to complete a fiscal analysis of the options; and WHEREAS, the City's financial goal was to continue to generate $125,000 annually to the City's General Fund when the redevelopment was completed; and WHEREAS, based upon review by Ehlers and Associates, the redevelopment option that meets the City's financial goal is Option #4 as listed on the attached memo. NOW, THEREFORE, BE IT RESOLVED by the City of St. Anthony Village as follows: 1. That the City Council approves the development Option 44 which consists of the City retaining ownership of a portion of the land and owning its own Municipal Liquor Store and selling the remaining land to the Developer for development of a restaurant pad and addition retail space. 2. That the City Manager and City Attorney are hereby authorized to proceed with negotiating the terms of this redevelopment transaction and to prepare necessary documents for execution by the City. Adopted this day of , 2003. Mayor ATTEST: City Clerk Reviewed for Administration: City Manager 30 EHLER;) & ASSOCIATES INC ® To: Mike Momson— City Manager 2 From: Stacie Kvilvang—Associate Financial Advisor WSubject: Stonehouse Redevelopment 2 Date: June 17, 2003 Overview: On December 12, 2002, Amcon Construction submitted a proposal to the City to redevelop the Stonehouse/SAV I and Fire Station site. The proposal outlined the construction of 26,000 sq/ft of retail in two buildings. One building will be located on the northern portion of the property, at the intersection of County Road 88 and Kenzie Terrace and will accommodate a 5,000 to 6,000-sq/ft restaurant. The second retail building, consisting of 20,000 sq/ft, will be located on the southern portion of the site where the existing strip center is located. It is anticipated that the new 9,000 sq/ft municipal liquor store will be located on the end cap fronting along County Road 88 and the remaining 11,000 sq/ft of retail space will span over to Kenzie Terrace. At the time they submitted their proposal, the City informed Amcon that the size of the site was approximately 50,000 sq/ft. Based upon this, Amcon proposed to purchase the land from the City for $8 - $10 sq/ft or $400,000 to $500,000. In addition to submitting a purchase price for land to the City, Amcon presented the following four(4) options on how to proceed with the redevelopment: 1. Sell the property to Amcon. Amcon would construct the new buildings and lease the City space for its Liquor Store. The City could utilize the land sale proceeds for lease payments or for other uses they deemed appropriate. 2. The City retains ownership of the land. Amcon would construct the improvements and lease the land back from the City and the City would lease their space for the Liquor Store from Amcon. The City could utilize the land lease payment they received from Amcon to offset their lease payment. 3. Deed the Land to Amcon. Amcon would construct the new buildings and lease the City space for its Liquor Store. The City would receive a reduced lease payment, in lieu of payment for the land. 4. Retain a portion of the land for the City's Liquor Store and sell the remaining land to Amcon. Amcon would construct the facility and the City would utilize the land sale proceeds to offset the cost of purchasing the new Liquor Store. 31 Mike Momson June 17, 2003 Page 2 Primary Issues to Consider: 1. What is the square footage of the site and how much will the City sell the land for? 2. What development option meets the City's financial goals with regards to the redevelopment? 3. How will the City pay for the acquisition of the new Liquor Store? 4. What future steps will be required by the City? Analysis of Issues: 1. What is the square footage of the site and how much will the City sell the land for? As stated, it was previously thought that the site was approximately 50,000 sq/ft. Based upon work completed by WSB for this redevelopment, it was determined the site was actually 104,241 sq/ft and broken down as follows: 13,714 sq/ft—Hennepin County Easement 12,182 sq/ft— Silver Lake Road Easement (City Owned) 78,345 sq/ft—City property This is approximately 54,000 sq/ft larger than what all parties thought the site size was. Amcon will be purchasing approximately 95,000 sq/ft of the site, since the City will own the pad under which the new Liquor Store resides (approximately 9,000 sq/ft). On April 22, 2003, the City commissioned an appraisal of the property to ascertain the Fair Market Value (FMV). Based upon the Appraisal competed by Orion, the FMV of the land was determined to be $6.80 sq/ft (raw land). If the site was vacant, this would equate to a $646,000 land payment for the 95,000 sq/ft. However, since the land is not vacant, a buyer would typically subtract the cost to complete asbestos abatement and demolition of the structures, which is estimated at approximately $60,000. Based upon this, the purchase price would then be reduced to $6.17 sq/ft or$586,150. At this time Amcon is proposing to purchase the land for $600,000, plus pay for the costs of asbestos abatement, demolition and City consultant fees (legal and fiscal), for a total of$670,000 or $7.05 sq/ft. It should be noted that the negotiations with Amcon have not been completed and that this may not be the final purchase price. Outstanding issues that will affect the purchase price are final demolition and asbestos abatement costs, actual size of the parcel to be purchased, actual lease rates obtained and the terms of Amcon's bank financing. At the time this final information is submitted by Amcon, Ehlers will complete an Internal Rate of Return (IRR) analysis to ascertain if the development can support a larger land payment. 32 Mike Mornson June 17, 2003 Page 3 2. What development option meets the City's financial goals with regards to the redevelopment? The underlying objective that is driving the financial decision of the City on the redevelopment of this site is that the new Liquor Store needs to generate at least $125,000 - $150,000 net profit on an annual basis. This is the amount that both SAV I and the Stonehouse currently generates for the City's General Fund and needs to be maintained. Based upon this, following is an analysis of the options: `,+L`' 'i' ';'urrs, w,�,�,t' :n.41,� O tion,hrr� .•:t�.<<...a�4},_c __� �A_nnu_a_IrNet�Incometo�C� r 1. Sell Land and City Leases Space $10,608 2. Own Land, Developer Constructs Improvements, City $95,608 Leases Space & the Developer Lease the Land 3. Deed Land to Developer, City. Leases Space for $82,608 Reduced Price 4. Own Land & Liquor Store and Sell Remaining Land to $142,664 Developer 5. Current Status $117,000 The reason Option #1, #2 and #3 do not meet the City's financial goal is because the City is required to lease space back from the developer. The annual lease amount is higher then the annual amount the City would pay if it financed the construction of a new facility on its own. Based upon the above referenced chart, it clearly shows that option #4 is the only one that meets the City's financial objectives. 3. How will the city pay for the acquisition of the new Liquor Store? If land sale proceeds are not adequate to finance the purchase of the new Liquor Store, the City has the following three options: 1. Finance the remaining balance from internal City funds 2. Sell bonds or combine this bond amount with another bond issue 3. Negotiate a loan with a local bank The preferred option on financing the acquisition of the Liquor Store will be presented to the City Council when they are considering approval of the Development Agreement between Amcon and the City. Page 4 33 4. What future steps will be required by the City? Following are future steps that will be required by the City: 1. Vacation of the Silver Lake Road easement 2. Review and approval of building plans 3. Review and approval of CUP and Variance requests 4. Review and approval of Liquor License for new restaurant 5. Review and approval of a Development Agreement with Amcon 6. Review and approval of financing of Liquor Store acquisition Please contact me at 651-697-8506 if you have any questions. St. Anthony Village 34 Stonehouse Redevelopment Preliminary Time Line May 27, 2003 June 2003: Braun Intertec completes asbestos survey, inclusive of roof samples June 2, 2003: Pre-Redevelopment Agreement sent to Amcon for execution June 9,2003: Amcon submits update proforma to Ehlers June 9, 2003: Determination made if TIF District is feasible June 10,2003: Submit application to Planning Commission for preliminary site plan review (15 copies- 11 X 17 of site layout and elevations to date) June 10,2003: Project Team meeting at 10:00-Ehlers Office June 16,2003: Determination of construction costs related to the new Liquor Store June 17, 2003: Planning Commission Preliminary Site Plan Review-7:00 p.m. June 17, 2003: Submit final plans (civil, building, grading, landscaping, etc) to City for Planning Commission and City Council review in July June 19,2003: Ehlers to submit staff recommendation to City Council on preferred redevelopment option and financial overview June 24,2003: Project Team meeting at 10:00 a.m.-Ehlers Office June 24, 2003: Review and approval of selected option for redevelopmeaby City Council June 30,2003: Final determination of property to be salvaged fro. *d"eeIpment ffl ., June-July 2003: Finalize negotiations/terms of Redevelopmgnt grote ent June 24, 2003: City Council Preliminary Site Plain.'°iew July 8,2003: Project Team meeting at 10:00 -.m7- Ehlers Officer July-Oct 2003: Submit application for IT%uor licensor new restau t and approval by City Concil July 2003: Send outzbids for asbq 'os_abatemen oTo-cammence hYlate August, early September Jul 11, 2003: Dorsey ffimzes draft�of TD velopment Agreement 1; t:V a_ July 15, 2003: Planning Gormmission Fin al4Site Plan Review, CUP"and variance approval N July 17, 2003: Eh rs su mits staffTe'coo ndati for approval of Development Agreement July 22, 2003: y M Prdj "Veam meeting at l O� ,a:m -Ehlers Office /// July 22, 2003: - t Ci Coorai'1 FinallSite Plan Review, CUP and variance approval /1 July 22, 2003: '_' ` Approval 6 evelopment Agreement by City Council-7:00 p.m. July 23, 2003: Arric'on signage can be placed upon the site previewing the new development September 8, 2003;x; Property closing transaction(both SAV I and Fire Station have relocated) September 9, 200 , " Begin asbestos abatement September 15, 2003 Begin demolition/construction March 2004: Project completed "IER M M.n -Z zz 14 0. Axw§ ............... .............. .... Fir... ..... .... . ...... .............. ............................... ................. .......... as::.................................................... .......... . ...... ... . ... Design Phasa: 1190 Oertel Architects - Design Phase 22MAY03 15AUG03 ME Oertel Architects . . . . . . . . . . . . . . . 1410 Planning Commission Design Review 17JUN03 17JUN03 I Planning Commission Design Review . . . . . . . . . . . . . . . . . . . . . . 1420 Conditional Use Permit Public Hearing 15JUL03 15JUL03 lconditiorial Use Permit Public Hearing . . . . . . . . . . . :.: 1430 City Council Design Approval 22JUL03 22JUL03 City Council Design Approval 05AUG03 05AUG03 1380 Bid Date-Structural Steel I Bid Date-Structural Steel 1381 Bid Date-Site Packane 05AUG03 05AUG03 I Bid Date-Site Package: : : : :X . .. . . . . . . . . . . . . .. . . . . . . . . . . 1385 City Council Approval -Site/Steel Packages 12AUG03 12AUG03 ]Pity.Council Approval 7 Site/Steel,Packages 1415 Site Construction Phase 13AUG03 23SEP03 Site Construction Phase 1.1. 1382 Bid Date- Building Package 16SEP03 16SEP03 I Bid Date-Building Package. . . . . . 1395 City Council Approval -Building Package 23SEP03 23SEP03 I City Council Approval-.Building Package . . .. . . . . . . . ...................... ......................................... ............................. .......................................... B u i I d i r 1405 :�:rBuildinq Construction Phase 24SEP03 28MAY04 :::::::::::::::>::»::>::>::::>::::.....::::::> Own 1425 Owner Move-in 31 MAY04 31 MAY04 . . . . . . . . . . . . . . . .................................................................................. ............... .............................................. ..................................... ............................ . .... ............................................. .......... .......................................... ............. ............................................................ 1 1:6 pul I ....... I. ...)1.0�1_0r. ....... ­ I ............ .. . ................. ...... .............. ...... . :�:::XX:7X ......... ............ .................. ............................ Architects-Design Phase: 1195 Oertel Architects- Design Phase 22MAY03 22AUG03 Oertell 1416 Planning Commission Design Review 17JUN03 17JUN03 Planning Commission Design Review: . . . . . . . . . .. . . . . . . . . . 1386 Bid Date-Structural Steel 07AUG03 07AUG03 Bid Date-Structural Steel 1387 Bid Date-Site Package 07AUG03 07AUG03 I Bid Date-Site Package . . . . .. . . . . . . . . . . Site/Steel Packages Pity Council Approval 1390 City Council Approval -Site/Steel Packaqes 14AUG03 14AUG03 ,- .......... ............. ........I................ ......... 1406 Site Construction Phase 15AUG03 090CT03 Site Construction Phase . . . . . . . . . . 1389 Bid Date- Building Package 23SEP03 23SEP03 I Bid Date- Package i Buildng . . . . . . . . . . 1400 City Council Approval -Building Package 30SEP03 30SEP03 pit ry Council Approval. Building Package I:Bu 1396 1 Buildinq Construction Phase 101OCT03 111JUN04 ........... 1411 owner move-in 114JUN04 114JUN04 . . . . . . . . I& Start date 21 MAY03 Finish date 14JUN04 St. Anthony Village - Fire Station/Public Works Data date 22MAY03 Kraus-Anderson Construction - Midwest Division Run date 28MAY03 Page number 1A 0 Primavera Systems, Inc. June 18, 2003 '! hgny illa e FUTURE COUNCIL AGENDA ITEMS Meeting Date Meeting Type Staff Present Items/Issues July 8 Regular Cancelled July 22 Regular Planning Commission-July 22, 2003 a. CUP/variance -Amcon b. CUP/variance-Fire station c. Variance-Public Works Public hearing on TIF plan; adopt TIF district 3-5 Res. order feasibility report for 2004 street improvements Public hearing on vacation of Silver Lake Road easement on the Stonehouse property HRA Res., adopt modification plan for the TIF district 3-5 HRA Approve Development Agreement with Amcon July 29 Work Session 6:30 pm Joint meeting with ISD#282 August 12 Work Session Council 5:30 pm Review 2004 budget August 26 Regular Planning Commission issues Kraus- Consider bid packages for Fire&Public Works Anderson facilities July 2003 Monthly Planner 1 2 3 4 S Jun 2003 City Offices S M T W T F S Closed 1 2 3 4 5 6 7 Independence 8 9 10 11 12 13 14 pay IS 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 6 7 8 9 10 11 12 Regular Council 7:00 PM Fire Meeting Station Cancelled Open House 13 14 15 16 17 18 19 7:00 PM Parks 7:00 PM Commission Planning Commission 20 21 22 23 24 25 26 7:00 PM Council Meeting 27 28 29 30 31 6:30 PM Aug 2003 Council/School s M T W T F s Board Joint 1 2 Meeting 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 August 2003 Monthly Planner 1 2 Jul 2003 Sep 2003 S M T W T F S S M T W T F S 1 2 3 4 5 1 2 3 4 5 6 6 7 8 9 10 11 12 7 8 9 10 Il 12 13 13 14 15 16 17 18 19 14 15 16 17 18 19 20 20 21 22 23 24 25 26 21 22 23 24 25 26 27 27 28 29 30 31 28 29 30 3 4 5 6 7 8 9 10 11 12 13 14 15 16 7:00 PM Parks 7:00 PM Commission Regular Council meeting Meeting 17 18 19 20 21 22 23 7:00 PM Planning Commission meeting 24 25 26 27 28 29 30 7:00 PM Regular Council meeting 31 INVESTMENT PORTFOLIO: 05/31/2003 Interest Date BREMER-ST ANTHONY BANK Rate Purchased Maturi Book Value INVESTMENT DEMAND-MONEY MARKET SAVINGS 1.75% 1 DAY LIQUIDITY(SWEEP) $20,592.50 4/M GENERAL $151,000 GENERAL ELECTRIC COMM PAPER 1.221% 02/28/03 06/20/03 $150,436.27 $716,000 LOCKHART FUNDING COMM PAPER 1.120% 03/25/03 06/20/03 $714,096.63 $864,532.90 4/M ARMY-WATER FILTRATION $1,250,000 FED HOME LOAN BANK-ZERO COUPON 7.00% 11/07/01 02/22/29 $191,662.50 $ 240,000 FED HOME LOAN BANK-ZERO COUPON 6.00% 08/05/02 08/15/22 $61,800.00 $ 200,000 FED HOME LOAN BANK-ZERO COUPON 6.02% 02/04/03 02/04/28 $101,033.87 $500,000 SCALDIS CAPITAL COMM PAPER 1.067% 05/27/03 08/15/03 $498,833.33 $500,000 LOCHART FUNDING COMM PAPER 1.070% 05127/03 08/15/03 $498,833.33 $469,000 GENERAL ELECTRIC COMM PAPER 1.070% 05/27/03 08115/03 $467,905.67 $1,820,068.70 DAIN RAUSCHER-GENERAL GNMA POOL 4734 8.50% 02/01175 01/15/05 $55.37 GNMA POOL 6472 7.50% 07/01/75 07/15105 $291.69 GNMA POOL 14376 7.50% 03/01/77 03/15/07 $988.34 GNMA POOL 23364 9.00% 09/01f78 09/15/08 $457.01 GNMA POOL 23356 9.00% 11 101(78 11/15/08 $1,081.31 $100,000 FNMA MEDIUM TERM NOTE 6.00% 07/25/02 07/25/22 $100,000.00 $670,000 FED HOME LOAN MTG-ZERO COUPON 7.150% 01/22/02 02/22/29 $99,948.90 $285,000 GENERAL ELECTRIC COMM PAPER 1.588% 04/17/03 08/15/03 $283,598.46 $100,000 RESOURSE BANK C/D 5.000% 09/19/02 09119/17 $100,000.00 $586,421.08 DAIN RAUSCHER-HONEYWELL - $100,000 FHLMC-ZERO COUPON BOND 8.00% 12/15/99 03/08/29 $10,105.00 $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 LASELLEBANK-ZERO COUPON BOND 6.375% 01/08/03 01/22/23 $28,480.61 $100,000 STANDARD FEDERAL-ZERO COUPON BOND 6.375% 01/08103 01/22/23 $28,480.61 $100,000 LASELLEBANK-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 $320,000 GENERAL MOTORS COMMECIAL PAPER 1.598% 04/17/03 08/15/03 $318,416.38 $288,000 GENERAL MOTORS COMMECIAL PAPER 1.110% 05/20/03 08/15/03 $287,245.18 $ 40,000 FED HOME LOAN MORTGAGE CORP-6.515% 6.515% 11/27/02 07/11/14 $41,050.00 $827,715.06 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 $690,000.00 SEARS ROEBUCK COMM PAPER 1.150% 05/12/03 08/15/03 $687,906.04 $200,000.00 FEDERAL HOME LOAN BANK 6.00% 11/14/01 11/14/16 $200,000.00 $200,000.00 FHLMC MED TERM NOTE-STEP UP 6.50% 12/28/01 12/15/16 $200,000.00 $100,000.00 FHLMC MED TERM NOTE 6.25% 07/31/02 07/31/17 $100,000.00 $200,000.00 FED HOME LOAN BANK MED TERM NOTE 5.976% 08/27/02 10/25/16 $200,000.00 $200,000.00 FED HOME LOAN BANK MED TERM NOTE 8.15% 11/26/02 06/09/10 $206,800.00 $100,000.00 FED HOME LOAN BANK MED TERM NOTE 6.00% 11/26/02 10/22/27 $100,250.00 $1,992,155.60 Time6/11/2003 MONTHLY INVESTMENT REPORT MAY 20031NVESTI DAIN RAUCHER-(HRA) $200,000-FNMA-9334 P/O 7.24% 04/20/93 03/25/23 $17,800.76 $200,000-FNMA MEDIUM TERM NOTE 6.00% 6.00% 06/28/02 06/27/16 $200,000.00 $100,000-FNMA MEDIUM TERM NOTE 6.00% 6.00% 08/05/02 08/05/16 $100,000.00 $250,000-FHLMC MEDIUM TERM NOTE 6.00% 6.00% 08/28/02 08/28/17 $250,000.00 $200,000-FHLMC MEDIUM TERM NOTE 6.00% 6.00% 11125/02 12113/17 $200,000.00 $1,000,000-FHLMC-ZERO COUPON BOND 7.75% 12/27/01 12/27121 $218,553.80 $1,000,000-GE CAPITAL COMMERCIAL PAPER 1.163% 05/12/03 08/15103 $997.430.50 $1,983,785.06 TOTAL BOOK VALUE $8,095,270.90 ----------------- ----------------- I Time6/11/2003 MONTHLY INVESTMENT REPORT MAY 20031NVESTI CITY OF ST. ANTHONY HOUSING AND REDEVELOPMENT AUTHORITY AGENDA June 24, 2003 Call to Order Roll Call I. Approval of June 24, 2003 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 May 28, 2003 H.R.A. Minutes. (p. 1 - 4) B. Claims. (p. 5) III. Public Hearings. A. Resolution HRA 03-014, re: Approval of the sale of properties located on Kenzie Terrace owned by the St. Anthony Village HRA. Stacie Kvilvang, Ehlers & Associates, will be present. Action requested. (pp. 6 - 18) III. General Policy Business of the H.R.A. A. Resolution HRA 03-013, re: Decertification of Kenzie Terrace Tax Increment District. City Attorney Jerry Gilligan, Dorsey & Whitney, will be present. Action requested. (pp. 19 - 20) IV. Staff Reports. V. H.R.A. Commissioner Comments. VI. Information and Announcements. VII. Adjournment. 01 1 CITY OF ST. ANTHONY 2 3 HOUSING AND REDEVELOPMENT AUTHORITY MEETING 4 5 May 28, 200') 6 7 CALL TO ORDER. 8 Chair Hodson called the meeting to order at 7:00 p.m. 9 10 PLEDGE OF ALLEGIANCE. 11 Chair Hodson invited the H.R.A. and audience to join him in the Pledge of Allegiance. 12 13 ROLL CALL. 14 Commissioners present: Chair Hodson; Commissioners Sparks, Thuesen, Horst, and Faust. 15 Commissioners absent: None. 16 Also present: Executive Director Michael Mornson and City Attorney Jerome 17 Gilligan. 18 19 20 I. APPROVAL OF MAY 28, 2003, H.R.A. AGENDA. 21 Motion by Commissioner Faust to approve the May 28, 2003, Housing and Redevelopment 22 Authority Agenda as presented. 23 24 Motion carried unanimously. 25 26 II. CONSENT AGENDA. 27 Motion by Commissioner Thuesen to approve the Consent Agenda, which consisted of- 28 29 A. H.R.A. Meeting Minutes of May 13, 2003; and 30 B. Claims. 31 32 Motion carried unanimously. 33 34 III. GENERAL POLICY BUSINESS OF THE H.R.A. 35 A. H.R.A. Resolution 03-011, re: Lease revenue bonds for public facilities development. 36 Jim Prosser, Ehlers & Associates, came forward to update the HRA regarding the lease revenue 37 bonds for public facilities development. He stated $5,530,000 in public facilities lease revenue 38 bonds had been sold. Three bids had been received. The true interest rate bid of 3.7846% was 39 accepted, which would qualify for MBIA insurance. The HRA does need to close on the 40 property prior to closing on the bonds on July 2. The excellent rating was received because the 41 insurance was purchased with an AAA rating. Also, Mr. Prosser stated that the City has strong 42 underlying credit and this is the right time to be in the market. He said that the overall interest 43 cost was roughly $1 million less than anticipated. 44 45 Mr. Prosser discussed the estimated impact on the taxpayers' property. He said that in February 46 it was estimated that the approximate impact on a $200,000 home would be$200. He stated the 47 actual cost would be 20% lower at $160. In addition, the average cost during the first year would 48 be approximately 5% lower. 02 Housing and Redevelopment Authority Meeting Minutes May 28, 2003 Page 2 1 2 Mr. Prosser added that the City was taking action to decertify the Kenzie district, and that alone 3 would reduce this impact by 6% and would have some impact on general property tax, as well. 4 Mr. Prosser thanked the staff and stated that this would not have happened without the overall 5 good planning of the staff. 6 7 Commissioner Sparks asked if decertification would affect only general property taxes and not 8 what the City is paying on the bonds. Mr. Prosser responded that the City would be adding an 9 additional value of approximately 6% onto the whole tax base. Because distribution would be 10 over a larger tax base, the impact upon the individual taxpayer would be less. 11 12 Motion by Commissioner Faust to adopt H.R.A. Resolution 03-011 re: lease revenue bonds for 13 public facilities development for$5,530,000 at a rate of 3.7846%. 14 15 Discussion: 16 Commissioner Thuesen stated that, because the paying agent was Wells Fargo, he felt he should 17 reveal that his wife works in that division. However, he felt he would be able to vote because his 18 wife was not working directly on the account. 19 20 Commissioner Sparks stated she had received an e-mail wondering if the City was rushing into 21 this project. She said the City's thinking was that this issue has been discussed and irivestigated 22 for approximately four years. Previous City Councils have been involved in it. She listed the 23 forces that had converged to make this the time to go ahead. Commissioner Sparks restated that 24 this has been a long process. 25 26 Motion carried unanimously. 27 28 B. H.R.A. Resolution 03-008, re: Authorize purchase of 3505 Silver Lake Road 29 C. H.R.A. Resolution 03-009, re: Authorize purchase of 3501 Silver Lake Road 30 Executive Director Michael Mornson stated that the Christen property was known as site one for 31 the fire station. He said an agreement had been made, which was a standard resolution. The 32 property had been appraised and the purchase prices were as listed in the copies of the letters 33 given to the H.R.A. members. He stated there was nothing to indicate backing away from the 34 environmental work. 35 36 Commissioner Sparks asked how much faith should be placed in that indication. Mr. Mornson 37 responded that the standard procedure appropriate for any personal property was used. 38 39 Motion by Commissioner Thuesen to adopt H.R.A. Resolution 03-008, re: authorize purchase of 40 3505 Silver Lake Road. 41 42 Friendly amendment was suggested by Commissioner Faust to include both H.R.A. Resolution 43 03-008 and H.R.A. Resolution 03-009 in the same motion. 44 03 Housing and Redevelopment Authority Meeting Minutes May 28, 2003 Page 3 1 Motion by Commissioner Thuesen to adopt H.R.A. Resolution 03-008 re: authorize purchase of 2 3505 Silver Lake Road and H.R.A. Resolution 03-009 re: authorize purchase of 3501 Silver Lake 3 Road. 4 5 Discussion: 6 Commissioner Sparks asked if the City had liability if further contamination was detected. City 7 Attorney Jerome Gilligan responded that once the site evaluation had been performed the City 8 could move forward. Chair Hodson stated that a successful Phase 1 review had been completed 9 on the property. 10 11 Jeff Oertel, Oertel Architects, came forward and stated that Braun Intertec had been on the site 12 last week. Each person involved in the Phase 1 review was comfortable with the results, and 13 they did not feel Phase 2 was necessary. Mr. Oertel proceeded to explain procedures used and 14 results obtained. He stated all borings came up clean. There was only evidence of minor spills. 15 However, he did recommend that a"Response Action Plan"be prepared in case something 16 should arise during construction. He restated that all those involved were comfortable with the 17 results. 18 19 Commissioner Faust stated that the only reason to go beyond Phase 1 would be if something 20 were found. Mr. Oertel said that was correct. 21 22 Commissioner Horst stated that one of the concerns was that the soil was not strong enough on 23 that site to hold the fire station. He questioned what had been done to address the possible need 24 for a buildup. Mr. Oertel responded that it had been ascertained that the bearing capacity would 25 be 2000 psi, which would be adequate. He said the top layers of the soil were mostly sandy clay, 26 primarily dense. He added that there was only a minor concern regarding one corner of the site; 27 however, building was not planned there. 28 29 Commissioner Horst stated that the footprints looked like some land excavation and building up 30 would be required. Mr. Oertel responded that some would be needed. More would be known 31 when a survey was received. It was advised that if more fill were needed, fill material would be 32 available in the next month or two. 33 34 Commissioner Thuesen asked if not as much soil was moved when in a situation where there was 35 a question of contaminated soil. Mr. Oertel responded that, if contaminated material were found, 36 the best plan would be to get rid of it. He added that there were two or three different ways of 37 handling it. 38 39 Commissioner Thuesen asked if a plan was needed to deal with potential psi issues. Mr. Oertel 40 stated that the soils were very easily managed. The only real concern would be if there were oil 41 leaks from any of the tanks or something was hidden that had not been found by the soil borings. 42 43 Motion carried unanimously. 44 ®4 Housing and Redevelopment Authority Meeting Minutes May 28, 2003 Page 4 1 D. H.R.A. Resolution 03-010 re: Authorize project team to proceed with design work for 2 Public Facilities Project as well as entering into a contract with Oertel Architects 3 Executive Director Michael Mornson asked Jeff Oertel, Oertel Architects, if he would address 4 the H. R. A. Mr. Oertel indicated that the schedule put forward was on a fast track because both 5 the fire station and public works department would be displaced. He felt this schedule would 6 take many weeks off the time needed. A schedule was given to the H.R.A. members. 7 8 Motion by Commissioner Faust to adopt H.R.A. Resolution 03-010 re: authorize project team to 9 proceed with design work for Public Facilities Project as well as entering into a contract with 10 Oertel Architects. 11 12 Discussion: 13 Commissioner Sparks asked Mr. Mornson to address the type of supervision that would be 14 implemented. Mr. Momson responded that there would be a team approach with the architect 15 and Krause-Anderson. Someone would be at the site at all times. He indicated there would be a 16 site work bid and a building work bid. Each would be contracted out separately to get the"best 17 bang for the dollar." Mr. Mornson added that someone who represented the City would also be 18 monitoring the work. 19 20 Commissioner Sparks stated that the same people building would not be supervising. Mr. 21 Mornson said that was correct. 22 23 _Motion carried unanimously. 24 25 IV. STAFF REPORTS. 26 None. 27 28 V. H.R.A. COMMISSIONER COMMENTS. 29 None. 30 31 VI. INFORMATION AND ANNOUNCEMENTS. 32 None. 33 34 VII. ADJOURNMENT. 35 Motion by Chair Hodson to adjourn the meeting at 7:32 p.m. 36 37 Motion carried unanimously. 38 Respectfully submitted, 39 Marjorie R. Jenkins 40 TimeSaver Off Site Secretarial, Inc. 41 BRC FINANCIAL SYSTEM ST. ANTHONY VILLAGE 06/17/2003 09: Check Register GL540R-V06.54 PAGE 1 BANK VENDOR CHECK# DATE AMOUNT HRA1 HOUSING & REDEV CHECKING .00001 CHICAGO TITLE INSURANCE 5226 06/25/03 544.00 008736 CREATIVE FORMS & CONCEPT 5227 06/25/03 270.55 008667 DAHLGREN, SHARDLOW AND U 5228 06/25/03 1,356.22 008698 EHLERS & ASSOCIATES, INC 5229 06/25/03 19,278.75 008892 GOODWIN COMMUNICATIONS G 5230 06/25/03 570.00 008898 JMS COMMUNICATIONS & RES 5231 06/25/03 5,830.00 008962 LHB ENGINEERS & ARCHITEC 5232 06/25/03 4,545.67 008961 OERTEL ARCHITECTS 5233 06/25/03 14,000.00 003560 TRACY PRINTING 5234 06/25/03 1,360.00 HOUSING & REDEV CHECKING 47,755.19 *** NOTICE OF PUBLIC HEARING 06 ON THE SALE OF PROPERTY LOCATED AT 2534, 2538, 2542, 2546 and 2548 KENZIE TERRACE CITY OF ST. ANTHONY VILLAGE TO WHOM IT MAY CONCERN: NOTICE IS HEREBY GIVEN THAT THE Housing and Redevelopment Authority of the City of St.Anthony Village, Minnesota will hold a public hearing on Tuesday,June 24,2003,at 7:00 p.m. in the City Hall Council Chambers, 3301 Silver Lake Road, St. Anthony Village MN to consider sale of five(5)vacant lots described below,pursuant to Minnesota Statutes,Section 469.105,subdivision 2. 2534 Kenzie Terrace 2538 Kenzie Terrace 2542 Kenzie Terrace 2546 Kenzie Terrace 2548 Kenzie Terrace The public hearing is on the sale of these lots to Autumn Woods II LP forthe development of 34 senior rental-housing units. A copy of the proposed terms and conditions of the sale are on file in City Hall. Anyone desiring to be heard during this public hearing will be afforded an opportunity to do so. At the hearing the Board of Commissioners of the Authority will decide if the sale is advisable. (To be published in the St. Anthony Bulletin on June 11, 2003.) Housing and Redevelopment Authority City of St. Anthony Village ®7 CITY OF ST. ANTHONY VILLAGE H.R.A. RESOLUTION 03 - 014 A RESOLUTION APPROVING THE SALE OF PROPERTIES LOCATED ON KENZIE TERRACE OWNED BY THE ST. ANTHONY HOUSING AND REDEVELOPMENT AUTHORITY WHEREAS, the St. Anthony Housing and Redevelopment Authority desires to sell the following H.R.A.-owned properties for redevelopment purposes: 1. 2534 Kenzie Terrace 2. 2538 Kenzie Terrace 3. 2542 Kenzie Terrace 4. 2546 Kenzie Terrace 5. 2548 Kenzie Terrace WHEREAS, Request for Proposals were sent out and two were received; and WHEREAS, following review of the proposals, the H.R.A. approved LaNel Financial's development concept for said 1.06 acre site to construct 38 rental units; and WHEREAS, the City's financial advisors, Ehler's & Associates, recommended the H.R.A. sell said lots as proposed. NOW, THEREFORE, BE IT RESOLVED that the St. Anthony Housing and Redevelopment Commissioners hereby approve the Purchase Agreement with LaNel Financial (Autumn Woods LLP) for the above-named properties at a purchase price of$285,000, based upon the conditions as set forth in the Agreement. BE IT FURTHER RESOLVED, that the St. Anthony H.R.A. hereby authorizes the Chair and Executive Director to execute said Agreement. Adopted this day of 52003. Chair Executive Director EHLERS °8 &. ,, ssacin -ES INC MEMORANDUM DATE: June 18, 2003 TO: Mike Morrison—City Manager FROM: Stacie Kvilvang—Associate Financial Advisor RE: Sale of HRA Owned Property on Kenzie Terrace Between 1996 and 1999, the City of St. Anthony Village purchased the following five (5) single- family homes along Kenzie Terrace, in order to assemble them into a single parcel for future redevelopment. ---- ,SAC. ss:•+go - st'�wy, . .r-. . �:� .. ,�: per cam- '� .C�1y�Acgws�tio� eloca�en/Demoltfionn VN all cqursit~ion 1.os `u � 44` 1F �"ri.•� 'V:_.. tL w-�' j� 7,ziU. � i F U � �.x' Cost ,z „� & p as 2548 Kenzie Terrace 07-029-23-23-0004 $105,000 $11,239 $116,239 2546 Kenzie Terrace 07-029-23-23-0005 $62,000 $11,871 $73,871 2542 Kenzie Terrace 07-029-23-23-0006 $94,000 $13,646 $107,646 2538 Kenzie Terrace 07-029-23-23-0007 $70,000 $9,946 $79,946 2534 Kenzie Terrace 07-029-23-23-0008 $53,000 $14,101 $67,101 TOTAL N/A $384,000 $60,803 $444,803 On May 3, 2002, the City sent a Request for Proposals T� , (RFP) to five (5) residential developers who had inquired and shown interest in redeveloping this 1.06-acre site for both owner-occupied town homes and multi-family rental developments. On May 29, 2002, the City received two ! / submittals from developers in accordance with the \, requirements of the RFP. At their June 17, 2003 meeting, c °'` _ _ the Housing and Redevelopment Authority (HRA) approved LaNel Financial's development concept they submitted in response to the RFP. Autumn Woods 01 Senior Apartments f° LaNel Financial currently owns the Autumn Woods Apartments, a senior-rental community located t� immediately adjacent to the redevelopment site on the east. They initially proposed to purchase the HRA land for �i� = 1 $150,000 ($7,500/unit) and construct 20 senior rental units. Since that time they have refined the site plan and are now proposing to construct 38 units and purchase the land for $285,000. After being selected by the HRA to develop the property, LaNel Financial approached the single- family homeowners to the south of this property to inquire if they were interested in selling their property to them for the development of additional senior housing units. Some of the property owners were willing to look at selling their property and proposed an acquisition price to LaNel Financial's Broker. Based upon their proposed acquisition price(s), it was determined by LaNel Financial, Ehlers and City Staff that incorporating these properties into the development would not be financially feasible. Therefore, LaNel Financial has proposed to move forward with the original development plan for the properties located on Kenzie Terrace only, as outlined in the chart on the following page: Mike Morrison 09 Sale of Kenzie Terrace Property June 18, 2003 Page 2 nadNtrRed�l u. ¢E_mRi ft1: 1 77 °„11L e.ri y � � Ee`�%" �" �zct ..,-�' a -T`' '�'?. �' . 'RB x ,,u d,�-°•'^t•7'i]C3"5�' �a:lo� `E 0 P- #a! Ninen : r ' s U tton of � Tt a� fist >x� Za'luatIoi�w Taxes c :f of Land msItionWP `� `�, � � •., r N ,- sue{ . ,,+ � a1(,€L-,,�, r �_'� `-�esr'�z, s ',.� �' 6* .t,r� �v �S,'dxl8'PrICe *.�..k LaNel 38 Rental Units $3,610,000 $62,974 $21,229 $285,000 $159,803 $95,000/Unit) 5 Single-Family Pre-Redevelopment Homes $375,000 $4,077 $724 N/A N/A ($75,000/Unit) As noted in the above referenced chart, there is a significant increase in property valuation due to the redevelopment and a significant increase in overall taxes generated by the new development, thus increased tax revenue to the City. Based upon this information, the City will recapture their investment in the property in 7 '/z years through the sale of the land and the increased City portion of taxes that will be generated by the new development. Recommendation: Ehlers recommends that the HRA sell the Kenzie Terrace lots to LaNel Financial based upon the proposed terms of the Purchase Agreement. This action will allow the closing for the property to commence by August 15, 2003, with construction slated to begin on September 1, 2003. Please contact me at 651-697-8506 if you have any questions. 10 PURCHASE AGREEMENT THIS PURCHASE AGREEMENT (the "Agreement") is made and entered into this day of , 2003, by and between Autumn Woods II L.P., a Minnesota limited partnership ("Buyer"), and Housing and Redevelopment Authority of St. Anthony, Minnesota, a public body corporate and politic (the "Seller"). WITNESSETH: 1. Property. In consideration of the delivery of Buyer to Seller of the amount of One Dollar($1.00) (the "Earnest Money"), the receipt of which is hereby acknowledged, and in further consideration of the covenants, hereinafter set forth and other valuable consideration, the sufficiency of which is hereby acknowledged, Buyer agrees to purchase from Seller that certain real property located at 2534, 2538, 2542, 2546 and 2548 Kenzie Terrace in St. Anthony, Hennepin County, Minnesota, and legally described in Exhibit"A"which is attached hereto and by this reference made a part hereof(the "Property"). The Buyer intends to construct a 38-unit adult residential rental development on the Property (the "Project"). 2. Purchase Price. The purchase price to be paid by Buyer to Seller for the Property shall be the sum of Two Hundred Eighty-five Thousand and no/100 Dollars ($285,000.00) (the "Purchase Price") and shall be paid to Seller on the Closing Date as follows: 2.1 Earnest Money payment of$1.00, the receipt of which is hereby acknowledged; and 2.2 The balance of$284,999.00 on the Closing Date. 3. Closing Date. The date of closing (the "Closing Date") of the transaction contemplated hereby (the "Closing") shall not be later than September 1, 2003, or at such other mutually agreeable time has been agreed to in writing by Buyer and Seller. At the Closing, Seller shall execute and deliver to Buyer a quit claim deed (the "Deed")to the Property. 4. Buyer's Contingencies. It is specifically understood and agreed by and between the parties hereto that Buyer's obligations hereunder are contingent upon the conditions precedent set forth in this Section 4. Buyer shall have the right to determine, in its sole discretion, whether the conditions precedent have been satisfied. Upon the failing of any of such conditions precedent, the Earnest Money shall, upon written notice by Buyer to Seller, be returned by Seller to Buyer and this Agreement shall thereupon terminate and be of no further force or effect. The conditions precedent are: 4.1 The ability of Seller to convey marketable fee title to the Property, as herein set forth, free and clear of any and all liens or encumbrances whatsoever, subject to the following exceptions to title: (a) Building and zoning laws, ordinances and regulations; and ' 11 (b) Reservation of minerals or mineral rights to the State of Minnesota; and (c) Public utility,roadway and other easements which will not adversely affect the development and use of the Project pursuant to Buyer's development plans. 4.2 Buyer obtaining financing for the Project on terms acceptable to Buyer in Buyer's sole discretion. 4.3 Seller's performance of all of the covenants required to be performed by it on or prior to the Closing Date. 4.4 City approval of the Project as proposed by Buyer. In the event that any of the foregoing conditions precedent cannot be satisfied and Buyer does not close by reason thereof, this Agreement shall terminate and be of no further force or effect and the Earnest Money shall be returned to Buyer. Upon such return, neither party shall have any further rights, duties, obligations or liabilities, at law or in equity, arising out of or related to the Agreement. Buyer's acceptance of the Deed at Closing shall constitute satisfaction of the foregoing conditions, unless otherwise agreed in writing by Seller and Buyer. 5. Condition of Title. Seller shall, within thirty(30) days after acceptance of this Agreement, furnish to Buyer, at Seller's cost and expense, a commitment for title insurance issued by Commonwealth Land Title Insurance Company including proper searches covering special assessments, bankruptcies, and state and federal judgments and liens (the "Title Evidence"). Buyer will order a survey of the Property (the "Survey") within five (5) days after acceptance of this Agreement and provide a copy to Seller. If any objections to title of the Property are made in writing by Buyer within ten(10) days after receipt of the Title Evidence and Survey, Seller shall use reasonable efforts within ninety (90) days of such notification by Buyer to cure the title defect or exception, either by the removal of such defect or exception or by the procurement of title insurance providing coverage against loss or damage as a result of such defect or exception. If Seller shall not cure such title defect or exception to Buyer's satisfaction within such ninety (90) day period, Buyer at its option may(i) terminate this Agreement upon written notice to Seller in which event the Earnest Money shall be refunded to Buyer and neither Buyer nor Seller shall be liable for damages hereunder to the other; or(ii) waive the title defect or exception and proceed with the closing of this transaction. Buyer will pay the cost for issuing any title insurance policy and any closing costs. 6. Real Estate Taxes and Special Assessments. Real estate taxes due and payable in the year of Closing of this transaction and installments of special assessments payable therewith shall be pro-rated between the Seller and Buyer. Real estate taxes and assessments due and payable in the year 2002 and all prior years on the Property shall be paid by Seller. All levied and pending special assessments shall be paid by Seller. 2 12 7. Permitted Access and Inspection. At any time prior to Closing, Buyer and its authorized representatives shall be permitted access to the Property at reasonable times for the purposes of architectural inspection and design studies, and such soil borings and environmental assessments as are deemed necessary by Buyer. Buyer agrees to indemnify and defend Seller from, and to hold Seller harmless against any and all claims; causes of action or expenses, including attorney's fees, relating to or arising from Buyer's presence on the Property prior to the Closing Date. Buyer agrees to repair any damage to the Property caused by such inspections and to return the Property to substantially the same condition as existed prior to Buyer's inspection. Seller shall deliver to Buyer copies of all reports relating to the Property which are in its possession. Buyer acknowledges that it is purchasing the Property based upon its own investigation and inquiry and is not relying on any representation of Seller or other person and is agreeing to accept and purchase the Property in"as is, where is" condition . 8. State Deed Tax. Seller shall pay the cost of any state deed tax stamps required for recording the Deed. 9. Agreements Pending Closing. Prior to the earlier of the Closing Date or the termination of this Agreement, Seller shall not enter into, modify or extend any leases or contracts with respect to, or grant any option to purchase or lease, all or any portion of the Property without the prior written consent of Buyer, which consent shall not be unreasonably withheld. 10. Mechanics' Liens. Seller agrees to fully satisfy and discharge prior to the Closing Date any and all existing or potential mechanics' liens affecting the Property. 11. Default. In the event of any default on the part of either party under this Agreement which continues for ten(10) days after written notice from the other party(except that no notice shall be required for default under any obligation to be performed at closing), the other parry may in lieu of any other remedy provided hereunder, proceed to closing and waive any rights or remedies for such default, or (a) if Buyer is the defaulting party, Seller may terminate this Agreement and retain the Earnest Money, and(b) if Seller is the defaulting party, Buyer may terminate this Agreement whereupon Seller shall return the Earnest Money to Buyer. 12. Specific Performance. If this Agreement is not canceled pursuant to the terms hereof,Buyer and Seller shall have the right to apply for and receive from any court of competent jurisdiction equitable relief by way of specific performance to enforce performance of the terms hereof, plus reimbursement for costs, including reasonable attorney's fees, incurred in enforcing this Agreement; provided, however, that an action to enforce such specific performance shall be commenced within six (6) months after such right of action shall arise. Such right shall not constitute an election of remedies and shall be in addition to any other right, action or remedy Buyer or Seller has or may have at law. 13. Notices. Any notice provided for herein shall be in writing and shall be deemed to have been sufficient if and when delivered personally or when deposited in the Untied States Mail, certified return receipt requested, postage prepaid, and addressed as follows: 3 13 To Buyer: Autumn Woods II, L.P. Attn: Paul Brewer 4601 Excelsior Boulevard, #601 St. Louis Park MN 55416 To Seller: Housing and Redevelopment Authority of St.. Anthony, Minnesota c/o Michael Morrison, City Manager 3301 Silver Lake Road St. Anthony, Minnesota 55418 or addressed to any such party at such other addresses as such party shall hereafter have furnished notice of to the other party. 14. Completion of Project. Prior to Closing, Buyer will provide Seller with evidence, reasonably satisfactory to Seller, that Buyer has obtained adequate financing for construction of the Project. Buyer will, subject to unavoidable delays, complete the construction of the Project on or prior to December 31, 2004 (the "Completion Date"), in accordance with the terms of this Agreement, and all local, state and federal laws and regulations. Buyer shall submit construction plans to the Seller("Construction Plans") prior to Closing. The Construction Plans shall provide for construction of the Project consisting of construction in conformity with this Agreement, and all applicable state and local laws and regulations. The Seller shall approve the Construction Plans in writing if no Event of Default has occurred and, in the reasonable discretion of the Seller, the Construction Plans: (a) conform to the terms and conditions of this Agreement; (b) conform to all applicable federal, state and local laws, ordinances, rules and regulations; (c) are adequate to provide for construction of the Project; and (d) provide for minimum disturbance to neighboring properties during construction. All work with respect to the Project shall be in substantial conformity with the Construction Plans approved by the Seller. Buyer shall promptly begin the Project not later than September 1, 2003 and diligently prosecute the Project to completion on or prior to the Completion Date. Buyer shall make reports, in such detail and at such times as may reasonably be requested by the Seller, as to the actual progress of Buyer with respect to the Project. Buyer shall not interfere with, or construct any improvements over, any public street or utility easement without the prior written approval of the Seller. All connections to public utility lines and facilities shall be subject to approval of the Seller and any private utility company involved. Except for public improvements which are assessable by the Seller or other governmental body against other benefited properties, all street and utility installations, relocations, alterations and restorations shall be at Buyer's expense and without expense to the Seller. Buyer, at its own expense, shall replace any public facilities or utilities damaged during the Project. 4 Promptly after completion of the Project in accordance with this Agreement, Buyer will provide the Seller with a certificate of substantial completion from Buyer's architect, and the Seller will furnish Buyer with an appropriate Certificate of Completion in recordable form as conclusive evidence of satisfaction of the terms of this Agreement with respect to the obligations of Buyer to complete the Project. The furnishing by the Seller of the Certificate of Completion shall not constitute evidence of compliance with or satisfaction of any obligation of Buyer to any mortgagee. If the Seller shall refuse or fail to provide the Certificate of Completion, the Seller shall, within 15 days after the Buyer provides the architect's certificate referenced above, provide Buyer with a written statement specifying in what respects Buyer has failed to complete the Project in accordance with this Agreement, or is otherwise in default, and what measures or acts will be necessary, in the opinion of the Seller, for Borrower to obtain the Certificate of Completion. 15. Time of the Essence. Time is of the essence of this Agreement. 16. Brokers. Seller and Buyer agree and acknowledge that neither party hereto is represented by a real estate agent or broker in connection with the Agreement or the transactions contemplated hereby. 17. Survival. All representations, warranties, covenants and agreements of the parties hereto shall survive the Closing. 18. Assignment. Buyer may not assign its interest in this Agreement unless it first obtains Seller's prior written consent and further provided that Buyer and its assignee shall execute an assignment and assumption agreement in a form acceptable to Seller and such assignment shall not relieve Buyer of its liabilities hereunder. 19. Binding Effect. This Agreement shall inure to the benefit of and be binding upon the parties hereto, and their respective heirs, executors, administrators, successors and assigns. IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first above written. 5 15 BUYER: AUTUMN WOODS II, L.P., a Minnesota limited partnership By: Anthony Thomas, Inc., a Minnesota corporation Its: General Partner By: Its: President SELLER: HOUSING AND REDEVELOPMENT AUTHORITY OF ST. ANTHONY VILLAGE, MINNESOTA, a public body corporate and politic By: Its: 6 16 EXHIBIT "A" Legal Description Exhibit A Legal Description 2534 Kenzie Terrace PID: 07-029-23-23-0008 That part of the Northwest '/4 of Section 7, Township 29, Range 23 described as follows: Commencing on a line drawn parallel with and 193.7 feet North of the South line of said Northwest '/4 at the point at which said line intersects a line drawn South 38 degrees 16 '/2 minutes East from a point on the Southeasterly line of the Old St. Anthony and Taylor's Falls Road which is Northeasterly 526.96 feet, measured along said Southeasterly line, from its intersection with the South line of said Northwest 1/4; thence West along said line drawn parallel and 193.7 feet North of the South line of said Northwest 1/4 59.72 feet to the actual point of beginning; thence Northwesterly deflecting to the right at an angle of 50 degrees 01 minute a distance of 48.8 feet; thence Southwesterly deflecting to the left at an angle of 91 degrees 01 minute a distance of 6.15 feet; thence Northwesterly in a straight line a distance of 86.3 feet, more or less, to a point on said Southeasterly line of said road 473.52 feet measured along said Southeasterly line from its intersection with the South line of said Northwest 1/4; thence Southwesterly along said Southeasterly line 163 feet, more or less, to the intersection of said Southeasterly line with said line drawn parallel with and 193.7 feet North of the South line of said Northwest 1/4; thence East along said parallel line to the actual point of beginning. 2538 Kenzie Terrace PID: 07-029-23-23-0007 That part of the Northwest Quarter of Section 7, Township 29, Range 23, Hennepin County, Minnesota, described as follows: Commencing at the Southwest corner of said Northwest Quarter; thence east along the South line of said Northwest Quarter a distance of 371.37 feet to the Southeasterly line of the Old St. Anthony& Taylor's Falls Road; thence North 51 degrees 43 1/2 minutes East along the Southeasterly line of said road 473.52 feet to the actual point of beginning of the tract of land to be described; thence continuing North 51 degrees 43 %2 minutes East along said road line 53.44 feet; thence South 38 degrees 16 1/2 minutes East, 172.7 feet, more or less, to an intersection with a line drawn parallel with and 193.7 feet north, measured at right angles, from the South line of said Northwest Quarter; thence west along said parallel line so drawn 59.72 feet; thence northwesterly deflecting to the right at an angle of 50 degrees 01 minutes a distance of 48.8 feet; thence southwesterly deflecting to the left at an angle of 91 degrees 01 minutes a distance 6.15 feet; thence northwesterly in a straight line 86.3 feet, more or less, to the actual point of beginning, except that part taken for highway purposes. A-1 • 17 2542 Kenzie Terrace PID: 07-029-23-23-0006 Parcel 1: That part of the Northwest Quarter of Section 7, Township 29, Range 23, Hennepin County, Minnesota, bounded and described as follows: Commencing at the West Quarter corner of Section 7, Township 29,Range 23 (at the intersection of the center line of Lowry Avenue Northeast and Stinson Boulevard); thence East along the East-to-West Quarter line of said Section 7, 371.37 feet to the Southeasterly line of the Old St. Anthony and Taylor's Falls Road; thence North 51 degrees 43 '/2 minutes East along said Southeasterly line 526.96 feet to the westernmost corner of the tract herein described; thence North 51 degrees 43 %2 minutes East 50 feet along said Southeasterly line; thence South 38 degrees 16 '/2 minutes East 208.36 feet, more or less, to a point 193.7 feet perpendicularly North from said East-and-West quarter line; thence West 63.69 feet parallel to said East-to-West quarter line; thence North 38 degrees 16 1/2 minutes West 168.91 feet, more or less,to said most Westerly point of tract; EXCEPTING therefrom that part which is included within the following- described tract: That part of the Northwest Quarter of Section 7, Township 29, Range 23, described as follows: Commencing at a point in the Southeasterly line of Old St. Anthony and Taylor's Falls Road at a point distant 526.96 feet Northeasterly along same from the intersection with the South line of the Northwest Quarter of said Section 7; thence at right angles to the Southeasterly line of said Old St. Anthony and Taylor's Falls Road, Southeasterly a distance of 150 feet for the point of beginning of the land hereinafter described; thence continue Southeasterly on said above right angles line projected a distance of 22.76 feet, more or less, to a point distant 193.7 feet North of and at right angles to the South line of the Northwest Quarter of said Section 7, thence Easterly and parallel to the South line of said Northwest Quarter of said Section 7 to the point of intersection with the West line of the plat of"St. Anthony Village Commercial Center Addition No. 1"; thence North along said West line of said "St. Anthony Village Commercial Center Addition No. 1" to a point distant 150 feet measured at right angles from the Southeasterly line of Old St. Anthony and Taylor's Falls Road; thence Southwesterly parallel with the Southeasterly line of Old St. Anthony and Taylor's Falls Road to the point of beginning. Parcel 2: That part of the Northwest Quarter of Section 7, Township 29, Range 23, Hennepin County, Minnesota described as follows: Beginning at a point in the Southeasterly line of the Highway known as Old St. Anthony and Taylor's Falls Road as originally laid out, which point is distant 265.97 feet Northeasterly measured along the Southeasterly line of said road from its intersection with a line drawn parallel with and distant 193.7 feet perpendicularly North from the South line of the Northwest Quarter of said Section 7; thence Northeasterly along the Southeasterly line of said road a distance of 8 A-2 18 feet; thence at a right angle Southwesterly a distance of 8 feet; thence at a a right angle Northwesterly a distance of 150 feet to the point of beginning. 2546 Kenzie Terrace PID: 07-029-23-23-0005 That part of Section 7, Township 29,North Range 23, West of the 4t'Principal Meridian, described as follows: Commencing at a point in Southeasterly line of Old St. Anthony and Taylor's Falls Road distant 584.77 feet Northeasterly along road from its intersection with South line of Northwest '/4; thence Northeasterly along road 60 feet; thence Southeasterly at right angles 150 feet; thence Southwesterly at right angles 60 feet; thence Northwesterly 150 feet to beginning, except State Highway, according to the United States Government Survey thereof, Hennepin County, Minnesota. 2548 Kenzie Terrace 07-029-23-23-0004 That part of the Northwest Quarter of Section 7, Township 29, Range 23, described as follows: Commencing at a point in the Southeasterly line of Old St. Anthony and Taylor's Falls Road, distant 644.77 feet Northeasterly along said road line from its intersection with the South line of said Northwest Quarter, thence Northeasterly along said road line 60 feet; thence Southeasterly at right angles 150 feet, thence Southwesterly at right angles 60 feet, thence Northwesterly at right angles 150 feet to beginning, excepting the Northwesterly 7 feet thereof taken for highway purposes, according to the United States Government Survey thereof, Hennepin County, Minnesota. A-3 1 � CITY OF ST. ANTHONY VILLAGE H.R.A. RESOLUTION 03-013 RESOLUTION APPROVING DECERTIFICATION OF KENZIE TERRACE TAX INCREMENT DISTRICT (HENNEPIN COUNTY NO. 1950) BE IT RESOLVED by the Board of Commissioners of the Housing and Redevelopment Authority of the City of St. Anthony, Minnesota(the"HRA"), as follows: 1. Recitals. The HRA pursuant to the authority contained in Minnesota Statutes, Section 469.174 to 469.179 (the"Act")has established a tax increment financing district under the Act designated as Kenzie Terrace Tax Increment District (Hennepin County No. 1950) (the "District"). It has been proposed that the HRA request that Hennepin County decertify the District pursuant to Minnesota Statutes, Section 469.177, subd. 12. 2. Decertification of the District. The proposal that that HRA request that Hennepin County decertify the District is hereby approved and the Executive Director of the HRA is hereby directed to file with Hennepin County a written request of the HRA for decertification of the District. Adopted this day of , 2003. Chair Executive Director 1 20 g E H LE R6 & ASSOCIATES INC ® To: Roger Larson, City of St. Anthony From: Rebecca Kurtz& Jim Prosser, Ehlers & Associates W Date: June 18,2003 gM Subject: Decertification of Kenzie Terrace Tax Increment Finance District It is recommended the City of St. Anthony take action to decertify the Kenzie Terrace Tax Increment Finance District. The District was established in 1982 to redevelop the blighted site located in the Southwest corner of the Village. Funding for the redevelopment project was through the issuance of Tax Increment Bonds issued in 1985 (these bonds were paid off in 1993). Presently, the District serves as a funding source for the City Hall/Community Center Bonds issued in 1995. There are several reasons for decertifying the Kenzie Terrace TIF District: • Retire the debt. The bonds issued to finance the redevelopment are callable in February 1, 2004, and the City has adequate cash to pay the outstanding debt, therefore paying off all debt associated with the City Hall/Community Center Building. o Savings of interest. By calling the bonds, interest expense of$235,315 will be saved. • Restrictions on the use of funds. Under the current law, other than for the City Hall/Community Center Bonds, the increment from the District cannot be used for other purposes outside of the TIF District boundaries. • Lessen the tax impact. Decertifying the District will place the property back on the City's tax roles. This will provide a significant increase to the City's tax capacity, and the City's expenses will be spread across a larger tax base. Therefore, the tax burden will decrease, and the impact of future debt will not be as significant. • Reduces impact of public facilities bond. Decertification of Kenzie reduces the tax impact of the costs associciated with the building of the new Public Works and Fire Station buildings. LEADERS IN PUBLIC FINANCE 3060 Centre Pointe Drive Phone: 651-697-8516 Fax: 651-697-8555 Roseville, MN 55113-1105 rkurtz @ehlers-inc.com Apache Plaza Redevelopment 05/31/2003 Total Costs Since Inception Payments from Developers: Hillcrest Development $72,920.43 Met Council Grant $120,000.00 Pratt-Ordway $117.922.48 $310,842.91 Total Expenses $413.424.85 05/31/2003 Cost to HRA ($102.581.94) Dahigren Shardlow Ehlers&Associates WSB&Associates Tr, acv Printing JMS Communications Northfield Lines SEHlRCM Goodwin Comm Dorsey&Whitney LBH Enninners $7,402.72 $210.00 $2.714.50 I I ^$306.00 $455.87 $1,615.00 $2,062.50 $592.03 $954.50 1,450.00$3,337.91 $1,506.00 $1,925.00 j ! _^172.00 $1,743.93 $570.00 $1,483.00 $2,184.89 $7,002.68 I $935.50 $954.50 ` ! $1,098.70 �_ $2,090.00 $2,199.80 $1,140.00 $3,545.50 $2,776.92 $15,138.88 $455.00 $942.00 $474.20 $2,260.00 $848.00 $95.00 $32,762.90 $82.00 ( $282.00 f $1,098.70 $1,320.00 $570.00 $25,780.22 $1,662.90 i $860.00 ( $1,098.70 $770.00 $190.00 $10,603.04 j j $2,911.73 $4,061.00 { $1,098.70 $9,355.00 $1,425.00 $6,369.70 $1,920.55 $5,611.03 $1,168,60 $1,045.00 $15,686.06 $3,450.00 $10,456.70 $245.13 $1,995.00 $8,003.59 $5,100.00 ' L _$10 466.00__I $47 i.20 $1,330.00 $31,11821 $3,187.50 $498.50 $1,141.12 $9,975.00 $5,733.98 $2,787.60 $658.00 $1,261.15 $1,490.12 5471.77 __ .. _� $1,091.00 $1,434.25 $560.13 $2,662.50 $508.50 $13,434.45 1 $1,774.75 i $3,750.00 $94.00 $2,567.32 $4,717.50 $188.00 j $3,754.23 $3,653.50 $106.00 1,503.00 j $4,065.00 $106.00 $1,645.50 $3,900.00 $40,542.23 $5,539.18 $4,385.63 $9,796.85 $5,850.00 $11,660.14 $6,052.50 $2,359.63 $5,587.50 $221.92 $637.50 $1,733.97 $3,342.54 $2,429.72 $2,287.50 $6,387.25 $2,137.50 $7,019.47 $7,275.00 $740.48 $656.25 $552.29 $7,156.25 $1,785.63 $97,796.12 $239.25 251.11 $232,951.83 Shaded Area Represents Before Pratt-Ordway Agreement Pratt-Ordway $117,922.48 Less: Expenditures ($150,880.70) Retainage Balance ($32,958.22)