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HomeMy WebLinkAboutCC WORKSESSION 05202003 Meeting Sheet IIIIII VIII VIII VIII VIII VIII IIII IIII 102989 Box: 29 Folder: CC PACKETS 2001-2004 Document: CC WORKSESSION 05202003 CITY OF ST. ANTHONY COUNCIL WORK SESSION AGENDA Tuesday,May 20, 2003 6:30 PM Multi-purpose Room I. Call to Order. 2. Discuss Financing Options for Northwest Quadrant. 3. Discuss Public Facilities Project. 4. Stonehouse Redevelopment Project. 5. Sroga's Property. 6. State Aid/Budget Update. 7. Other Business. 8. Adjournment. EHLERS & ASSOCIATES INC Oo: Mike Morrison—City Manager From: Stacie Kvilvang—Associate Financial Advisor Sid Inman—Executive Vice President W Date: May 15,2003 Subject: Northwest Quadrant Redevelopment -Development Proposal and Terms of Development Agreement On April 30, 2003, Ehlers and Associates, along with City Staff members and the City's Attorney, met with the Development Team and their Financial Advisors to continue discussions on the financing of the Northwest Quadrant redevelopment. The Development Team has refined their concept for redevelopment to one option. Option 6 A includes the acquisition of Apache Plaza, SAV II/Tires Plus, Apache Squares, Apache Offices, JA Cadawalder Office, Mini Mall and ponding located behind it, ponding behind Cub Foods and a couple of Small HRA owned parcels along Silver Lake Road (map will be provided at meeting). Following is the proposed development work plan: Develo, went :Opti on#6A beyelo'meat Time Frame Big Box 130,000 S /Ft 2004 -2005 Retail 69,000 S /Ft 2004 -2005 Office 25,000 S /Ft 2004 -2005 SAV II 8,800 S /Ft 2004-2005 Market Rate Apartments 192 Units 2005-2006 Senior Apartments 80 Units 2005-2006 Urban Town Homes 230 Units 2006-2007 Senior Co-Op 64 Units 2006-2007 3-Story Town Homes 28 Units 2006-2007 Based upon these options,Ehlers and the Development Team have estimated that the cost to acquire all the land, relocate existing businesses, demolish the structure and complete the public improvements will cost between $20-22 million. To assist in offsetting this cost, the Developer has proposed the following payment for land and special assessments for each development type: -1VIarke.t Sensor Sensor. Town` ` C osnmeresal hate. Urban Flats Total 4 ►'pas tments Co-Op ., Homes' t A artm6nts t Land Cost $3,145,070 $640,000 $1,536,000 $672,000 $3,450,000 $840,000 $10,283,070 $4.50 s /ft)( $8,000/Unit $8,000/Unit $10,500/Unit $15,000/unit ($30,000/Unit) Special $1,837,064 $229,200 $550,080 $113,581 $598,682 $171,471 $3,500,078 Assessment ($6.66 sq/ft) ($2,865/Unit) ($2,8651Unit) ($1,775/IJnit) ($2,603/Unit) ($6,124/L1nit) Total $4,982,134 $869,200 $2,086,080 $785,581 $4,048,682 $1,011,471 1 $13,783,148 It should be noted that the above referenced numbers have not been finalized by all members of the Development Team and Ehlers has requested that they finalize them within the next month. LEADERS IN PUBLIC FINANCE 3060 Centre Pointe Drive Phone: 651-697-8506 Fax: 651-697-8555 Roseville, MN 55113-1105 skvilvang@ehlers-inc.com Mike Morrison May 15, 2003 Page 2 Based upon the above referenced development program, following is a listing of the proposed business terms for the final Development Agreement: 1. Tax Increment. a. Fiscal Disparities. Currently all TIF calculations have included Fiscal Disparities being paid within the District, pursuant to policy discussions with City Staff and the City Council. The Developer continues to request that Fiscal Disparities be paid outside the District. However, the Developer has not yet made or met the argument that the Fiscal Disparities amount is needed to meet the financing needs of the redevelopment. The election to pay Fiscal Disparities outside the district will only be contemplated if and only if it is shown that the redevelopment will not commence without these additional dollars. b. Administration Expense Allocation. Currently all TIF calculations show 5% of available Tax Increment being available for administration. To the extent that the development will require more than 95%of the TIF for actual redevelopment costs or coverage of bonds, the City may elect to subordinate its 5% administration until the entire development comes on line. However, this election will be based upon review of the City's administrative costs and if they can be covered by only 5%of the TIF. c. TIF Notes. It is anticipated that the Development Team will sell their TIF Revenue note(s) as taxable to provide up-front cash for costs associated with the redevelopment. Ehlers recommends that if it is needed, the City consider multiple notes and inflation. Ehlers also recommends that that the City considers allowing the developer Tax Exempt take out after the development phases have been fully constructed and are paying taxes. 2. Public Improvements. a. Roadway and Storm Water Ponding. There has been a lot of discussion on how to pay for the new 39`l Avenue alignment, as well as the required storm water ponding. The City has aggressively sought roadway funding for this project and has been unsuccessful to date. However, they will continue to seek alternative funding sources. At this time, it is anticipated that assessment bonds will be sold for the roadway and storm water ponding and will be paid through special assessments and TIF proceeds (estimated at $6.5 million, including a large contingency). The City has asked WSB to review the roadway design selected by the Development Team for cost to construct and to determine which properties within the TIF District will be considered benefiting properties so an assessment amount can be assigned to them for the roadway. WSB will also review the plans to see if the improvements could be phased over a couple of years(as development comes"on line"). b. Cily Park. It has been determined by the Development Team that the park should be City- owned. They have requested an up front contribution of$750,000 to pay for the land on which the park will sit. Ehlers has requested that they provide a square footage calculation Mike Morrison May 15, 2003 Page 3 for the amount of land needed for the park and to assign a price per square foot for it. This will then be reviewed by Ehlers to determine if the purchase price is within market ranges. It is anticipated that the City will apply for funding from the Metropolitan Council through the Livable Communities Grant program to pay for this cost. In addition, discussions are continuing on the extent of park improvements the City would like on the site, including the size and the amenities, so a cost can be attributed to these improvements. c. City Bonds. No City GO Debt will be issued for the public improvements until a Development Agreement has been formally approved by the City Council and the City is certain of the timing of the various development components. In the event the City issues 'General Obligation Debt, Ehlers recommends that any bonds notes or other TIF payments made to the developer be junior(paid after)to the City's debt. 3. Miscellaneous. a. City Liquor Store. Discussions continue on the purchase of the City-owned Liquor Store. The City is currently having an appraisal 'completed for the property to assist in determining the Fair Market Value for the property. In addition,the City staff is discussing where they would like to locate the new store within the TIF District. It is anticipated that the City will not sell its land to the developer until a new Liquor Store is constructed, so as to not disrupt business. Outstanding issues for the Liquor Store revolve around disposing of the property via a sale, land swap, etc. It is anticipated this will be resolved after the appraisal is received and the City determines its choice for anew location. b. Grants. The City will use it's best efforts to obtain LCDA and Tax Base Revitalization grant funding and any other available funding from Metropolitan, Sate and Federal Sources. c. Land Purchase Price. Purchase price of land for each use will be reviewed and must be shown to be at market and similar to what other projects are paying. d. "But For" Analysis. Ehlers recommends that prior to final determination of Tax Increment assistance that will be provided that a "But For" analysis be preformed to ascertain appropriate level of assistance. The elements of this transaction are within industry standards that Ehlers and Associates have seen within the Metropolitan Area on these types of developments. At this time, we anticipate that a final Development Agreement will be brought before the HRA in July 2003 for consideration and approval. Please contact Sid Inman or I at 651-697-8500 with any questions. cc: File St. Anthony Village Stonehouse Redevelopment Preliminary Time Line. May 13 2003: Task Force recommendation on Fire Station/Public Works Facility May 13, 2003: Update to City Council on possible redevelopment of Stonehouse site June 24, 2003: Review and approval of selected option for redevelopment June-Aug 2003: Finalize negotiations/terms of Redevelopment Agreement June 2003: Submit application to Planning Commission June 17, 2003: Planning Commission Preliminary Site Plan Review June 24, 2003: City Council Preliminary Site PlwReview July 15, 2003: Planning commission Final Site Plan Review July 22, 2003: City Council Final_.Site Klan Review July 22, 2003: Approval of Redevelopment_Agreement August 30, 2003: Property closing'transaction September 2003: Begin demolition/construction February 2004: Project completed MEMORANDUM DATE: April 29, 2003 TO: Mayor and Councilmembers FROM: Michael Mornson, City Manager SUBJECT: SROGA PROPERTY The City had an appraisal done for the Sroga property in January, 2003. The appraisal indicated the property's worth at $321,000. Mr. Sroga is interested in selling either to the City or the current tenant. He is asking$550,000. The current tenant is paying$48,000 a year in lease payments. Mr. Sroga is interested in a Contract for Deed for the property. Roger Larson will research possible funding options for purchase of the site. The question for the Council is, "Are you interested in acquiring the property and under what terms?". MEMORANDUM DATE: May 1, 2003 TO: Mike Mornson, City Manager FROM: Roger Larson, Finance Director ITEM: SROGA PROPERTY Per your request, I reviewed the funding options for the possible purchase of the Sroga Property. From a financial perspective, this is a great investment. Given the fact that the current tenant is paying $48,000 a year in lease payments and comparing it to the cash outlay, it is a quality use of funds. Conceptually, let's assume the City pays the asking price of$550,000. The property has been appraised at $321,000. If the City purchases the property it could opt to sell the property at anytime and at a minimum immediately recoup $321,000. The balance of the purchase price could be repaid by the.annual lease payments. Assuming that the lease remains active, the present terms set the annual payment at $48,000 or$4,000 per month. It would take 4 years, 10 months of lease payments for the City to break even. An analysis is as follows: Value of Property $321,000 (City could sell at this value at anytime) Lease Payments $232,000 (58 Months X $4,000 per month lease payment) $553,000 Currently, I feel we have two funding options available,both supported by HRA funds: 1) Amend—Tax Increment budget of the Chandler District to include the Sroga Property. 2) Tires Plus Lease Funds—Repayment of building purchase. Option #1: The current tax increment budget for the Chandler District is as follows: 1) Purchase and removal of Hardee's $ 360,000* 2) Purchase and removal of Exhaust Pro's $ 500,000** 3)Purchase and removal of Phillips 66 $ 500,000 4) Apache Plaza redevelopment 200,000 Total Chandler TIF $1,560,000 *Completed—Culver's opened 4/14/03 **Culver's purchased Exhaust Pro's—Plan could be revised to remove Exhaust Pro's and include Sroga's ($500,000 would then be available). Option#2• The original purchase of the Tires Plus property totaled$725,000. As of 12/31/02,the annual lease payments have repaid the City $416,500. In addition, lease payments and interests earning on the $416;500 could provide an additional $83,500, making the total available= $500,000. If necessary,to complete the funding of either option,we could fund the additional $50,000 internally. Recommendation: Both options are viable alternatives for the purchase of the Sroga Property. However,my recommendation is that Council considers Option#1 as the better of the two. The primary use of Tax Increment is directed towards redevelopment. Because Culver's purchased Exhaust Pro's and freed up this funding, revising our TIF budget to include the redevelopment of the Sroga ProperV is a reputable use to Tax Increment without placing any burden on the taxpayer. Option#2 is less attractive. As we are all aware; resolving the State budgeting crisis will involve a reduction or potential elimination of Local Government Aid. Currently, we have a contingency plan that totals $194,100. Because, the potential loss in Local Government Aid could be higher than our contingency plan, the Tires Plus Funds could be redirected to support shortages in the General Fund or make capital equipment purchases. Funds from Chandler TIF could not be used for budget shortfalls. HRA - TAX INCREMENT (2002) REVIEW OF FUND BALANCES HELLICKSON Tires HRA KENZIE CHANDLER APACHE DENTAL Plus Lease PROJECTS 1/1/02 $1,434,073.41 $365,788.75 $326,527.04 $0.00 $327,175.79 $384,428.01 Tax Inc Revenue $458,428.28 $193,164.00 $181,279.82 $21,228.32 Interest Earnings $58,741.12 $9,503.81 $9,806.70 $17,506.37 $26,726.73 Rental Income $71,900.25 Sale of Property $319,250.00 Hardee's Payments from Developers/Pratt Ordway $100,000.00 Adjustment to Market Value $10,675.00 $10,675.00 Debt Sery Payments ($248,105.00) $0.00 ($202.344.63) $0.00 $0.00 $0.00 Payments to Developers ($150,000.00) Culver's ($19,105.48) Land Acquisition/Hardees ($316,000.00) Site Improvement Costs ($27,696.00) Legal/Planning ($25,172.50) Redevelopment Costs/Apache ($194,814.42) Administrative Costs ($42,000.00) ($263.81) ($310.56) ($2,122.84) $43,877.73 Transfers to Other Funds/Central Park ($50,000.00) Expenditures/Misc. ($1,519.77) ($6,533.98) Fund Balance 12/31/02 $1.670.293.04 $379.249.25 $314.958.37 $0.00 $416.582.41 $303.684.07 Commitments for Funding: Purchase ($500,000.00) Annual Bond ($130,000.00) Repayment of Building ($200,000.00) Kenzie Terrace Exhaust Pro's Payment Pay as you go Purchase NW/Apache Homes/Demolition Apache Plaza Note ($725,000) Plaza ($500,000.00) Bond Payment Ends 2/1/05 Development Annual Phillip 66 Station Ends 2/1/13 Bond Payment New City Hall Backup for Bond Payment New City Hall Ends 2/1/10 District Created 1982 1985 1993 1993 District Expires 2008 2011 2019 2019 Projected Funds when District Expires: $1.750.000.00 $1.600.000.00 $960.000.00 $370.000.00 The additional new expenditures of tax increment for the Chandler District authorized hereby with respect to the development or redevelopment of certain property subject to the Redevelopment Plans are as follows: Property/Activity Expenditure New to Plan Purchase and removal of Hardee's property at 4004 Silver Lake Road to prepare for redevelopment $360,000 New to Plan Purchase and removal of Exhaust Pro property at 4000 Silver Lake Road to prepare for —� redevelopment $500,000 New to Plan Purchase and removal of Dick's Phillips 66 gas station property at 2700 Kenzee Terrace to prepare for redevelopment $500,000 In existing Additional authorized expenditures with respect Plan to the Apache Plaza redevelopment to pay for consultants fees and other redevelopment activities $200,000 TOTAL $1,560,000 The use of tax increment derived from the Chandler District to pay the costs described above is hereby authorized. Such costs are in addition to any costs previously authorized by the Financing Plan for the Chandler District to be paid from the increment from the Chandler District. Such costs may be paid directly from tax increment derived from the Chandler District, or may be paid indirectly from tax increment derived from the Chandler District, by the payment of debt service on a loan or loans made by the City to the HRA or by the HRA to finance such cost. Any such loan made by the City or HRA will be repaid, with interest, from the tax increment derived from the Chandler District. Other than the loan or loans from the City or the HRA, it is not expected that any obligations will be issued by the City or HRA to finance such costs. IV. FISCAL AND ECONOMIC IMPLICATIONS OF ADDITIONAL EXPENDITURES It is estimated fiscal and economic implications of the additional expenditures of tax increment revenue derived from the Chandler District authorized by this Master Modification will be as follows: The local governmental units other than the City which are authorized by law to levy ad valorem property taxes in the area where the Districts are located are Independent School District No. 282, Ramsey County, the HRA, and various metropolitan area authorities, including the Metropolitan Council, the Metropolitan Transit Commission, the Metropolitan Airports Commission and the Metropolitan Mosquito Control District(the local government units). After the establishment and during the continuation of the Chandler District, as a result of the Redevelopment Projects and the implementation of the Redevelopment Plans and the improvements in the Chandler District there has been an increase in the tax capacity of the taxable property in the Districts. If the tax increments derived from the Chandler District are not 3 4/10/2003 Proposed IMPORTANT DATES St. Anthony Budget Schedule for 2004 Budget April 222003: Public Hearing to Discuss/Review 2004 Budgeting Goals (Input from Residents is encouraged) May 20, 2001 Work Session to discuss 2004 Budget/Public Facilities Building & State Aid cuts. .June - July-L City Manager& Staff Meetings to discuss/draft 2004 Budget. August 12, 2003: 2nd Work Session - Proposed 2004 Budget is presented to the City Council (5:30 - 7:00). September 9, 2003: 1) Resolution passed setting Proposed 2004 Tax Levy and Budget 2) Resolution passed setting Public Hearing and reconvening dates. November 29, 2003 December 21, 2003- City must conduct a public hearing, which cannot conflict with Hennepin County, Ramsey County, Independent School District #282 or the Special Taxing Districts hearing dates. December 8, 2003: Public Hearing Date/adoption of final 2004 Property Tax Levy and Budget. *****Please note: The public hearing must be held between November 29th and December 21st. The City's initial public hearing cannot be held on the same day as Hennepin or Ramsey Counties Initial Hearing Dates, I.S.D. #282 Initial Hearing Date or Metro Special Taxing Districts Hearing Date. Cc-�ntinlgency Plan - 2003 Budget Revisions State Aid Cut Formula: (Based on Governor's Proposal) Total Local Levy $2,6765041 Add: LGA 2003 $ 1985563 Times 9.3% Potential LGA L $ 2� G Loss in 2 003 L 6�7: I8? Potential LGA Loss in 2004 $ 375` 523 Revisions to 2003 Budget: 1) Renegotiate.Prosecuting Attorney $ 12,000 (Savings) 2) Eliminate Village Fest/Fire Works $ 55000 3) Eliminate Action Contribution $ 2,500 4) Eliminate Community Concerts $ 2,000 5) Reorganize Volunteer Dinner $ 3,000 (Savings) New 2003 Budget = $1,500 6) Reorganize Employee Recognition $ 1,000 (Savings) 7) Eliminate Holiday Lunch $ 1,000 $ 26,500 Sources of Revenue: 1) Liquor Store Profits from 2002 $ 50,000 A. $100,000 General Fund B. $150,000 Capital Equipment C. $ 50,000 To Budget Shortfall 2) Budget Reserves from 2002 Budget $ 77,000 Total Dollars Designated $1539500 Potential Other Budget Adjustments: Delay Hiring till 2004: P/W Employee $ 30,200 (Savings) Community Service Officer $ 10,400 (Savings) $ 40,600 Total Contingency Plan for 2003 $1949100 Other Potential Adjustments $181,423 (Tires Plus = $416,000) CITY OF ST. ANTHONY VILLAGE H.R.A. RESOLUTION 03 - 008 A RESOLUTION AUTHORIZING THE PURCHASE OF PROPERTY KNOWN AS 3505 SILVER LAKE ROAD BY THE ST. ANTHONY HOUSING AND REDEVELOPMENT AUTHORITY BE IT RESOLVED, that the St. Anthony Housing and Redevelopment Authority hereby authorizes the purchase of property by the St. Anthony Housing and Redevelopment Authority, known as 3505 Silver Lake Road for the price of$245,000.00,which includes relocation assistance as well as the purchase price; and BE IT FURTHER RESOLVED, that the purchase of said property is contingent upon approval of the City Attorney, a title exam, environmental review and the City HRA's successful sale of lease revenue bonds. Adopted this day of , 2003. Chair Reviewed for Administration: Executive Director CITY OF ST. ANTHONY VILLAGE H.R.A. RESOLUTION 03 - 009 A RESOLUTION AUTHORIZING THE PURCHASE OF PROPERTY KNOWN AS 3501 SILVER LAKE ROAD BY THE ST. ANTHONY HOUSING AND REDEVELOPMENT AUTHORITY BE IT RESOLVED, that the St. Anthony Housing and Redevelopment Authority hereby authorizes the purchase of property by the St. Anthony Housing and Redevelopment Authority, known as 3501 Silver Lake Road for the price of$240,000.00, which includes relocation assistance as well as the purchase price; and BE IT FURTHER RESOLVED, that the purchase of said property is contingent upon approval of the City Attorney, a title exam, environmental review and the City HRA's successful sale of lease revenue bonds. Adopted this day of 52003. Chair Reviewed for Administration: Executive Director 05115/2003 07:18 651-481-4040 DELUXE PAGE 01101 May 15, 2003 Michael.M..ornson City Manager of St. Anthony Village 3301 Silver Lake Road St.Anthony,MN 55418 Dear Mz. Momson, This letter is to inform the City of St. Anthony that we the residents of 3501,Robert'L. Christen, and 3505,Louis R. and Dawn Christen, grant permission to do any necessary testing of soils. Robert L. Christen has agreed to the purchase price of$240,000 for the property located at 3501 Silver Lake Road as is. Louis R. and Dawn.Christen have agreed to the purchase price of$245,000 for the property located at 3505 Silver Lake Road as is. Sincerely, Robert L. Christen Louis R. and Dawn.Christen 3501 Silver Lake Road 3505 Silver Lake Road St. Anthony,MN 55418 St. Anthony, MN 55418 cc: Jay Hartman . a in th®n 0illa e Administrative Offices 3301 Silver Lake Road, St. Anthony, Minnesota 55418-1699 (612) 789-8881 FAX (612) 781-9323 May 15, 2003 Robert L. Christen 3501 Silver Lake Road St. Anthony, MN 55418 Dear Mr. Christen: This letter is to inform you of the City's intent to purchase your property for$240,000. This price includes relocation assistance as well as the purchase price. The purchase is contingent upon the City Attorney's approval, a title exam, environmental review and the City HRA's successful sale of lease revenue bonds. The majority of the contingencies should be completed by the second week of June. As far as a closing date,because we need to own the property prior to obtaining our funds, we need to close prior to July 2. 2003. If you need to stay on the property after July a rental arrangement can be made to allow you a successful move to'a new location. The City's law firm, Dorsey&Whitney; will draft a purchase agreement and schedule a closing. The attorney the City is working with is Audra Williams. If you have any questions,please feel free to contact me at 612-706-1325. Sincerely, Michael J. Mornson City Manager Our Mission is to be a progressive and livable community, a walkable village, which is safe and secure. . ain th®n ills e Administrative Offices 3301 Silver Lake Road, St. Anthony, Minnesota 55418-1699 (612) 789-8881 FAX (612) 781-9323 May 15, 2003 Louis R. and Dawn Christen 3505 Silver Lake Road St. Anthony, MN 55418 Dear Mr. Christen: This letter is to inform you of the City's intent to purchase your property for$245,000. This price includes relocation assistance as well as the purchase price. The purchase is contingent upon the City Attorney's approval, a title exam, environmental review and the City HRA's successful sale of.lease revenue bonds. The majority of the contingencies should be completed by the second week of June. As far as a closing date,because we need to own the property prior to obtaining our funds, we need to close prior to July 2, 2003. If you need to stay on the property after July a rental arrangement can be made to allow you a successful move to a new.location. The City's law firm, Dorsey&Whitney, will draft a purchase agreement and schedule a closing. The attorney the City is working with is Audra Williams. If you have any questions, please feel free to contact me at 612-706-1325. Sincerely, Michael J. Mornson City Manager cc: Roger Larson, Finance Director Our Mission is to be a progressive and livable community; . a walkable village, which is safe and secure. . ain thony illa e Administrative Offices 3301 Silver Lake Road, St. Anthony, Minnesota 55418-1699 (612) 789-8881 FAX (612) 781-9323 May 16, 2003 Paul Archambault 2716 Pahl Avenue St. Anthony,MN 55418 Dear Paul: The Public Facilities project is an extremely important one. On behalf of the City Council, I want to thank each of you, as members of the Study Group, for the work you.put forth. This Study Group showed all of us what a group of citizens who care enough about their" community to share their time and efforts on such a project, can accomplish. Chair Archambault gave a presentation to the Council which showed the Council and residents exactly why this project should proceed. The suggestions, ideas and research provided by the Study Group were ultimately what assured Mr. Archambault's successful presentation. The ball is now in the City's court and because of your hard work, I feel the completed project will be one of assurance and pride for the employees and residents of the Village. Sincerely, Randy Hodson Mayor Our Mission is to be a progressive and livable community, a walkable village, which is safe and secure. May 16, 2003 C in th0 illa a C.% FUTURE COUNCIL AGENDA ITEMS Meeting Date Meeting Type Staff Present Items/Issues May 28 Regular Stu Bonniwell 2002 audit Todd Hubmer Engineering update Insurance renewal Planning Commission issues-May 20 (pawnbrokers/2nd hand dealers ordinance) HRA J.Prosser Lease revenue bonds June 3 Joint meeting S. Hall 6:30 pm-Joint meeting with Planning Commission June 9 Joint meeting J. Hartman 6:30 pm-Joint meeting with Parks Commission June 10 Regular June 24 Regular SK-Ehlers Public hearing on TIF plan J. Gilligan Franchise renewal SK-Ehlers Public hearing on sale of Kenzie property to LaNel and development agreement SK-Ehlers Update on Stonehouse redevelopment project Planning Commission-June 17,2003 HRA July 8 Regular Cancel July 22 Regular August 12 Regular August 26 Regular 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 May 13, 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 May 13, 2003 City Council Meeting Agenda. Action requested. II. Proclamations and Recognitions. 1. Presentation from students of Salo, Finland's Moisio School. 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 April 22, 2003 Council meeting minutes. (pp. 1 - 9) B. Licenses and permits. (p. 10) C. Claims. (pp. 11 - 14) V. Public Hearings - None. Page 2 VI. Reports From Commissions and Staff. A. Update from Parks Commission. Commissioner Jan Jensen will be present. B. Update from Public Facilities Study Group. Chair Paul Archambault will be present. C. Update on Stonehouse property by Stacie Kvilvang, Ehlers & Associates, . and authorization to enter into a Pre-redevelopment Agreement with Amcon Construction, Jim Winkels of Amcon will be present. Action requested. (pp. 15 - 24) D. Discuss renewal of on-sale liquor store insurance and consider Resolution 03-035 regarding the closing of the Stonehouse. Dan Crawford, Sunrise Park, will be present. Action requested. (pp. 25 - 34) VII. General Policy Business of the Council. VIII. Reports. From City Manager and Councilmembers. IX. Information and Announcements. X. Miscellaneous Informational Documents. XI. Adjournment. 1 City Council Regular Meeting Minutes April 22, 2003 Page 1 1 CITY OF ST. ANTHONY 2 3 CITY COUNCIL REGULAR MEETING MINUTES 4 5 April 22, 2003 6 7 8 CALL TO ORDER. 9 Mayor Hodson called the meeting to order at 7:03 p.m. 10 11 PLEDGE OF ALLEGIANCE. 12 Mayor Hodson invited the Council and audience to join him in the Pledge of Allegiance. 13 14 ROLL CALL. 15 Present: Mayor Hodson; Councilmembers Horst, Sparks, Thuesen, and Faust. 16 Absent: None. 17 Also Present: City Manager Mike Mornson 18 19 CONSIDERATION, DISCUSSION,AND POSSIBLE ACTION ON ALL OF THE FOLLOWING 20 ITEMS: 21 22 I. APPROVAL OF THE APRIL 22, 2003 CITY COUNCIL MEETING AGENDA.. 23 Motion by Councilmember Sparks to approve the City Council Meeting Agenda of April 22, 24 2003. 25 26 Motion carried unanimously. 27 28 II. PROCLAMATIONS AND RECOGNITIONS. 29 30 A. Proclamation for Volunteer Recognition Week. 31 Councilmember Sparks read the Proclamation thanking the volunteers for their time and 32 service. 33 34 Motion by Councilmember Faust to approve the Volunteer Recognition Proclamation. 35 36 Motion carried unanimously. 37 38 B. Presentation of Certificates of Appreciation to Employee Service Award Recipients. 39 Mayor Hodson invited the following employees to come to the podium to receive their 40 respective Certificates of Appreciation: Richard Pfeiffer for 30 years,Robert Nehring for 41 15 years, Steve Nerheim for 20 years, Sandy Simon for 5 years, Mark Hermann for 15 42 years, Edward Markel for 5 years, Charles Quigley for 10 years, Kimberly-Dulz for 15 43 years, Kevin Cardinal for 10 years, Jerome Jay for 15 years,,Jeff Halet for 10 years, and 44 Diane Johnson for 20 years. Mayor Hodson thanked all of the employees for their years 45 of service. 46 City Council Regular Meeting Minutes April 22, 2003 Page 2 III. COMMUNITY FORUM. Mayor Hodson invited residents to come forward at this time and address the Council on items that are not on the regular agenda. James Weihoff explained that he was concerned about rumors that he had heard regarding the use of revenue bonds and not general bonds for the Public Facilities. He asked the Council if that was true. Mayor Hodson stated that this was correct. Councilmember Sparks answered that that was the recommendation of the task force. Mr. Weihoff stated that he was a veteran and felt that his right to vote was being taken away. Mr. Weihoff thanked the members of the task force for their efforts but stated that he felt their efforts were in vain. Mr. Weihoff explained that he felt the amount of equipment and type of facility that was needed must be determined by an assessment of the needs. Mr. Weihoff expressed that he felt the proposed fire barn was too plush for the 8,012 population of St. Anthony. Mr. Weihoff proceeded to provide through several comparisons between St. Anthony,New Brighton, Arden Hills and Mounds View. He stated that per capita,New Brighton's cost for fire and maintenance is less than half of St. Anthony's. Mr. Weihoff stated that he feels St. Anthony is high on the cost for police and fire for the size of the community. He described Golden Valley's arrangement with businesses that would allow employees to volunteer and respond to fires and reported that the arrangement was working well. Mr. Weihoff asked for any questions. Mayor Hodson thanked Mr. Weihoff. Mr. Weihoff added that for government expenditures,the liquor business used to pay for that part of the expenses. He stated that this cost for St. Anthony is higher than other communities. Mr. Weihoff also stated that he was opposed to employees working more than eight hour days. Mayor Hodson asked if there were any other residents who wanted to come forward. Hearing none, Mayor Hodson moved forward with the agenda. IV. CONSENT AGENDA. A. Approve March 11 2003 Council meeting minutes. Approve April 8 2003 Council meeting minutes. B. Consider licenses and permits. C. Consider payment of claims. D. Approval of Memorandum of Understanding with ISD #282 for conduct of 2003 Local Elections. E. Resolution 03-033 re: Approval of Amendment to LOGIS Health Care Plan. City Council Regular Meeting Minutes April 22, 2003 Page 3 Councilmember Faust moved to remove the March 11, 2003 Council meeting minutes from-the Consent Agenda. Motion carried unanimously. Motion by Councilmember Thuesen to approve the Consent Agenda less the March 11, 2003 Council meeting minutes. Motion carried unanimously. Motion by Councilmember Sparks to approve the March 11, 2003 Council meeting minutes. Motion carried with Horst and Faust abstainin2from the vote. V. PUBLIC HEARINGS. A. Discussion of City's 2004 Proposed Budget. Mayor Hodson opened the public hearing at 7:25 p.m. Mr. Morrison stated that typically they have not held a public hearing on the budget except to respond to public reaction and that it is up to the Mayor on how to handle the public hearing. Councilmember Faust stated that this is the first opportunity with regard to the budget and they are just starting. He explained that the Council is looking for comments. Hearing none, Mayor Hodson closed the public hearing at 7:27 p.m. VI. GENERAL POLICY BUSINESS OF THE COUNCIL. A. Resolution 03-031, re: Authorizing Application for the Tax Base Revitalization Account. Mr. Mornson explained that Resolution 03-031 is an application for an environmental grant from the Metropolitan Council for asbestos and demolition removal regarding the Northwest Quadrant: Mr. Mornson stated that they are asking for$300,000 to $500,000 and there is funding for this project. Mr. Mornson explained that in June they will be going back for another grant called a Livable Community Grant. Motion by Councilmember Sparks to approve Resolution 03-031,re: Authorizing Application for the Tax Base Revitalization Account. Motion carried unanimously. B. Resolution 03-032, re: Call for public hearing on modification for Redevelopment Project Area No. 3. and the establishment of a Tax Increment Financing District No. 3 - 5 and for the awarding of business subsidies. Mr. Momson stated that this resolution calls for a public hearing to establish a tax increment financing district for the Northwest Quadrant and that a plan will be recommended at that City Council Regular Meeting Minutes April 22, 2003 Page.4 hearing and adoption of the plan may be done prior to June 30`b to capture all the increments. Mr. Mornson explained that this is just one step in the process. Motion by Councilmember Faust to approve Resolution 03-032,re: Calling for public hearing on modification for Redevelopment Project Area No. 3. and the establishment of a Tax Increment Financing District No. 3 - 5 and for the awarding of business subsidies. Motion carried unanimously. Mayor Hodson commented that it is critical to keep moving forward regarding the redevelopment of Apache Plaza. VII. REPORTS FROM COMMISSIONS AND STAFF. A. Fire Department 2002 Annual Report and discuss fire pumper bids. Joel Hewitt, Fire Chief, will be present. Mayor Hodson introduced Fire Chief Joel Hewitt. Chief Hewitt showed various slides of the fire department and explained in detail: customer service belief, customer service feedback, the apparatus that the fire department owns, and he explained how the rating of 5 helps homeowners and businesses to keep their insurance rates down. Mayor Hodson asked for clarification on the insurance rating system. Chief Hewitt stated that 10 is the worst and 1 is the best and for a homeowner, if the rating is 7, 8, 9 or 10 the homeowner rates go up. For commercial buildings and multifamily, the insurance will be improved 2— 11%by a lower rating. The best ratings in the State are town class 3. Mayor Hodson commented that the Council should pay attention to this because over a period of time this could make a difference for the City. Councilmember Sparks asked for further clarification. Chief Hewitt explained that to maintain a rating of 5 they need to maintain three pumpers because the first truck carries 500 gallons of water, the second pumper hooks up to a fire hydrant, and the third would support a sprinkler system. Chief Hewitt compared in detail the 2001 and 2002 Fire Department response activities including: property saved, fire loss,response time and significant incidents. Chief Hewitt explained how the fire department trains, also which-drills and mandates are followed. Chief Hewitt listed the 2002 capital improvements including radios used by the whole county and explained they had no choice in doing this. Chief Hewitt listed the remaining capital improvements. Chief Hewitt showed slides to explain which community activities the Fire Department is involved with. Chief Hewitt discussed the 2004 challenges and explained the F.E.M.A. grants City Council Regular Meeting Minutes April 22, 2003 Page 5 that have been applied for. Chief Hewitt reviewed the Housing Code Enforcement issues that were addressed by the Fire. Department during the year. Chief Hewitt thanked the twenty people who have served on the task force and others. He discussed the budget and the fire department value, stating that the average residential property pays $12.32 per month for fire service. Chief Hewitt asked for any questions. Mayor Hodson thanked Chief Hewitt and asked for any comments or questions. Mr. Momson stated that the Fire Department is due for a new pumper and that the Fire Chief has a presentation regarding this. Because the bid date will expire at the end of this month, they are asking for a vote on this tonight. Chief Hewitt explained that the 1975 pumper needs to be replaced because the estimate to repair that pumper is over$100,000. There was a committee that researched the issue and checked into many demonstrators. Chief Hewitt reviewed the six bids that were received and explained that the General Safety bid was the lowest received. The committee recommended the purchase of this General Safety demonstrator. Chief Hewitt listed in detail what the rig included and why it would meet the needs of the Fire Department. Councilmember Horst asked about the mileage on the rig. Jay Olson commented that it was like new. Councilmember Sparks asked if the $246,916 bid included the $30,000 worth of modifications. Mr. Mornson stated that the $246,916 included the $30,000 worth of modifications. Councilmember Horst acknowledged that this pumper was less than the last one that was purchased. Councilmember Faust stated that this is something that has been a part of the five year capital improvement plan and asked about the value of the 1975 rig. Chief Hewitt stated that the last used rig sold for$4,000, so the value is not much. Councilmember Thuesen thanked the Fire Chief for giving the details of the ratings for insurance and explaining why three pumper trucks are needed to maintain that rating. Motion by Councilmember Thuesen to approve Resolution 03-034, Re: Awarding a bid for a fire motor pumping apparatus to General Safety for$246,916. Motion carried unanimously. B. Police Department 2002 Annual Report Dick Engstrom Chief of Police, will be present. Mayor Hodson introduced Chief Engstrom. Police Chief Engstrom presented the 2002 Annual Report for the Police Department, City Council Regular Meeting Minutes April 22, 2003 Page 6 highlighting part one crimes, going back from 1998 through 2002. Chief Engstrom mentioned that because of an increase in the 0— 19 year olds, crimes are expected to go up also. Chief Engstrom gave specific totals for each type of crime during 2002, including the fact that burglaries have gone up. Chief Engstrom listed the totals for the part two crimes,which include all crimes that are not part one or index crimes. Chief Engstrom stated that clearance rates for 2002 were 64%. Mayor Hodson asked for clarification of clearance rates. Chief Engstrom stated that it related to crimes that had been solved. Chief Engstrom then discussed other crimes of interest,metro comparisons, the patrol statistics, investigations, significant cases including a bomb threat at the high school and others. Chief Engstrom noted that many changes have been made since 9/11, including updates to emergency plans, various seminars, work with securing the water supply and other changes. Chief Engstrom stated that on the flip side there has been a lot of community involvement and listed various public education programs including the DARE program and National Night Out. Chief Engstrom mentioned that volunteers have been a significant presence and that the police reserve in 2002 had 1,629 squad hours, 175 ride along hours, and 351 event hours. Chief Engstrom listed the 2002 accomplishments and discussed the work plan for 2003. Chief Engstom asked for questions. Councilmember Sparks asked for explanation of youth population connection to crime rates. Chief Engstrom explained that with the youth population going up there is an expectation of youth committed crimes going up. Councilmember Sparks mentioned that St. Anthony has a declining population of youth. Chief Engstrom stated that surrounding communities could have an impact on the community and that he is not attributing the rise in crime to youth in the St. Anthony community. Councilmember Sparked requested that the Police Chief discuss block parties. Chief Engstrom expressed a desire to encourage more block parties because they were important to public safety and accounted for many tips by residents that helped with the 64% clearance rate. Councilmember Faust related the National Night Out to community policing. Chief Engstrom agreed and stated that there was no such thing as a bad call. Mayor Hodson asked if it is all right for residents to report suspicious activity by calling 911. Chief Engstrom answered in the affirmative. Mayor Hodson thanked Chief Engstrom. VIII. REPORTS FROM CITY MANAGER AND COUNCILMEMBERS. City Council Regular Meeting Minutes April 22, 2003 Page 7 Mr. Mornson reported that phase one of the Stonehouse redevelopment has been done at no cost . to the City because a grant was received for$5,000 through the PCA. Also a second grant has been applied for and it looks like they may possibly be getting another grant. Mr. Mornson. stated that appraisals have been ordered for the Tires Plus location. Mr. Mornson also stated that there are twelve meetings during the next six weeks including a work session with Ehler's on public facilities financing and also a joint meeting with the school board and St. Anthony Boulevard neighborhood next week. The schedule also includes seven construction projects to be finished up this year. Mayor Hodson asked for further comments and requested that Councilmember Faust give his update first. Councilmember Faust stated that April 9`h was City Day at the Capitol and was attended by the Mayor, the City Manager and himself. He stated that there were approximately 250 council people representing cities from across the State and they were able to share their concerns with the Legislature. Councilmember Faust commented that on April 12`h the Council attended the Culvers kick off and on April 14`h the Mayor, Sue Hall and he attended the Humphrey Institute where the Blue Ribbon Panel was started with some very prominent individuals. a Councilmember Faust reported that this panel is funded by Hennepin County to do some cutting- edge design for the future for the Northwest Quadrant and that it may be a blue print that can be used by the rest of the country to future-proof an area. Councilmember Faust stated that April 16`h was the annual Chamber of Commerce dinner. Dave Evans was awarded the Villager of the Year and the Business of the Year recipient was Dr. Todd Hanson. Councilmember Faust reported that there will be a proclamation on May 12`h at 7:00 p.m. to welcome the Sister City visitors and tomorrow is Job Shadow Day, which is a partnership between the Chamber of Commerce and the schools where the kids are able to job shadow adults in different career fields. Councilmember Thuesen reported that at the April 15`h Planning Commission meeting the secondhand goods and pawn shop ordinances were discussed and are ready to go. Councilmember Thuesen noted that a public hearing was held with no comment. The next step will be for the Planning Commission to hold a public hearing in May regarding the zoning amendment to the ordinances and recommending a fee structure. Councilmember Thuesen stated that there will also be a public hearing in May regarding the Adult Day Care amendment,recommendations for a conditional use permit in commercial zones and the entire package will be presented at the May 27`h Council meeting. Councilmember Sparks reported that the Parks Commission toured Silver Point Park to see the placement of the building and that they are planning to tour Central Park. City Council Regular Meeting Minutes April 22, 2003 Page 8 Councilmember Sparks stated that Village Fest is on track for August 2"d and also she has been working with the school board toward getting funds for youth issues. Councilmember Sparks stated that on June 10`h she will be attending Growing Smart in Minnesota. Councilmember Horst had no report. Mayor Hodson went into further detail about the Blue Ribbon Panel and what the potential will be for the City of St. Anthony. Mr. Mornson stated that a grant came from Hennepin County for$12,000 to pay for the Blue Ribbon Panel. Mayor Hodson reported that it was the contacts from within the community that gave them the access to the people at high levels for the Blue Ribbon Panel. Mayor Hodson stated that he would have three kids job shadowing him tomorrow. Mayor Hodson encouraged everyone to attend the May 1 st State of the City and Volunteer Appreciation Ice Cream Social. Mayor Hodson reported that the Stonehouse redevelopment could add$65,000 to $70,000 to the tax payrolls; and in addition, development for the-City includes Autumn Woods, which will have 16—30 new units, Walgreens is complete and there is a new fitness center and coffee shop at the St. Anthony Shopping Center. Councilmember Faust asked the Mayor to discuss Clean Up Day. Mayor Hodson reported that on Saturday,May 3`d there will be a city-wide Clean Up Day. The Mayor also added that some elderly people need assistance to haul some things to the site. Mayor Hodson volunteered his truck and asked for volunteers to help with the project. IX. INFORMATION AND ANNOUNCEMENTS. None. X. MISCELLANEOUS INFORMATIONAL DOCUMENTS. None. XI. ADJOURNMENT. Motion by Mayor Hodson to adjourn the meeting at 8:58 p.m. Motion carried unanimously. Respectfully submitted, Sandra A. Miller TimeSaver Off Site Secretarial, Inc. City Council Regular Meeting Minutes April 22, 2003 Page 9 ATTEST: City Clerk Mayor 1® Saint Anthony Village DATE: May 13, 2003 Approved: TO: Mayor and Councilmembers FROM: Judy Monson, License Clerk ITEM: License and Permits for Approval: Heating License: Lux Company,Brooklyn Park, MN BRC FINANCIAL SYSTEM ST. ANTHONY VILLAGE 05/05/2003 07: Check Register GL540R-VO6.54 PAGE 1 BANK VENDOR CHECK# DATE AMOUNT FIRS BREMER BANK NA 008471 AIRGAS NORTH CENTRAL 19949 05/14/03 55.06 008621 ALLIANCE MECHANICAL 19950 05/14/03 358.00 008450 ANIMAL CONTROL SERVICES, 19951 05/14/03 439.52 008511 AT&T WIRELESS 19952 05/14/03 11.18 008555 BIFFS, INC. 19953 05/14/03 39.12 008734 BOSTON MEDICAL CORPORATI 19954 05/14/03 94.40 007253 BRAKE & EQUIPMENT WAREHO 19955 05/14/03 35.89 008652 CARTRIDGE CARE 19956 05/14/03 101.65 007386 CASTLE INSPECTION SERVIC 19957 05/14/03 . 2,015.49 000610 CATCO CLUTCH & TRANS SVC 19958 05/14/03 1.71 002380 CENTERPOINT ENERGY MINNE 19959 05/14/03 9,221.15 008577 CITY OF ST. PAUL 19960 05/14/03 111.22 004107 COMPTON'S COMMERCIAL CLN 19961 05/14/03 4,169.48 000741 CONNELLY ELECTRONICS 19962, 05/14/03 187.70 008834 DEMSEY'S STUMP SERVICE 19963 05/14/03 80.00 000807 DIAMOND VOGEL PAINTS 19964 05/14/03 477.58 008848 DIVERSIFIED CRYOGENICS 19965 05/14/03 450.00 000820 DORSEY & WHITNEY 1996.6 05/14/03 3,485.75 000860 ENGSTROM/RICHARD 19967 05/14/03 573.52 008153 FILTERFRSH 19968 05/14/03 28.99 008647 FRATTALLONE'S HARDWARE 19969 05/14/03 65.32 001030 G & K SERVICES INC 19970 05/14/03 447.04 008127 GRAFIX SHOPPE 19971 05/14/03 273.00 001250 GRAINGER INC/W W 19972 05/14/03 22.48 001410 HARMON AUTOGLASS 19973 05/14/03 15.00 005121 HARTMAN/JAY 19974 05/14/03 42.32 005017 HENNEPIN COUNTY TREASURE 19975 05/14/03 454.25 008365 HENNEPIN COUNTY TREASURE 19976 05/14/03 30.20 008252 HOME DEPOT-GECF 19977 05/14/03 36.31 00001 IAFC MEMBERSHIP 19978 05/14/03 170.00 008891 INTER-TEL TECHNOLOGIES 19979 05/14/03 21.82 .00002 JOHNSON/BRADLEY 19980 05/14/03 4.67 001980 LEAGUE OF MN CITIES 19981 05/14/03 240.00 008229 LOFFLER BUSINESS SYSTEMS 19982 05/14/03 224.72 002100 MACQUEEN EQUIPMENT CO 19983 05/14/03 65.43 .00003 MARWI USA, INC. 19984 05/14/03 299.86 008193 MCFOA TREASURER 19985 05/14/03 35.00 008263 MCLEOD USA, INC. 19986 05/14/03 1,797.83 007835 METROCALL 19987 05/14/03 279.75 002240 METROPOLITAN COUNCIL 19988 05/14/03 35,550.67 005010 MINN CONWAY FIRE & SAFET 19989 05/14/03 140.14 005085 MINN STATE FIRE CHIEF 19990 05/14/03 50.00 005204 MN DEPT PUBLIC SAFETY 19991 05/14/03 225.00 007076 MOODY'S INVESTORS SERVIC 19992 05/14/03 6,500-.00 008326 NEWMAN TRAFFIC SIGNS 19993 05/14/03 839.49 008820 NORTHERN TRAFFIC SUPPLY, 19994 05/14/03 605.72 000045 OFFICE DEPOT 19995 05/14/03 241.86 007366 PARTS MIDWEST, INC. 19996 05/14/03 26.52 BRC FINANCIAL SYSTEM ST. ANTHONY VILLAGE 05/05/2003 07: Check Register GL540R-V06.54 PAGE 2 BANK VENDOR CHECK# DATE AMOUNT FIRS BREMER BANK NA 008594 PETERBILT NORTH 19997 05/14/03 31.48 008805 PETTY CASH - BREMER BANK 19998 05/14/03 134.15 002900 PLANT + FLANGED EQUIP CO 19999 05/14/03 1,184.49 007057 PRAXAIR 20000 05/14/03 22.88 .00001 PTS TOOL SUPPLY 20001 05/14/03 18.10 004492 QWEST 20002, 05/14/03 62.01 008543 SCHARBER & SONS, INC. 20003 05/14/03 9,999.29 003350 SEH-RCM 20004 05/14/03 1,591.14 005306 SPRINGGSTED, INC. 20005 05/14/03 2,220.00 008846 STANTON GROUP 20006 05/14/03 158.78 003490 STREICHER'S 20007 05/14/03 4,662.46 003260 T A SCHIFSKY & SONS 20008 05/14/03 56.45 008700 TC WEB TECH 20009 05/14/03 703.00 007337 TIMESAVER OFF SITE SECRE 20010 05/14/03 660.25 007365 TOLL GAS & WELDING SUPPL 20011 05/14/03 6.60 003560 TRACY PRINTING 20012 05/14/03 3,866.30 007330 TRI STATE BOBCAT, INC. 20013 05/14/03 149.34 008336 UNITED ELECTRIC COMPANY 20014 05/14/03 21.45 008227 VERIZON WIRELESS, BELLEV 20015 05/14/03 307.75 008887 WELLS FARGO BANK 20016 05/14/03 1,050.00 008273 WSB & ASSOCIATES, INC. 20017 05/14/03 40,234.00 002680 XCEL ENERGY 20018 05/14/03 10,621.54 007325 YOCUM OIL COMPANY, INC. 20019 05/14/03 8,740.88 .00004 1000 FRIENDS 20020 05/14/03 70.00 BREMER BANK NA 157,214.15 *** BRC FINANCIAL SYSTEM ST. ANTHONY VILLAGE 05/05/2003 13: Check Register GL540R-V06.54 PAGE 1 BANK VENDOR CHECK# DATE AMOUNT LIQR LIQUOR CHECKING ACCOUNT 008800, BREMER BANK NA 22450 04/30/03 12,000.00 008800 BREMER BANK NA 22451 04/30/03 15,000.00 008716 SCENE/THE 22452 04/30103 130.00 004250 LUNDGREN/MATTHEW H. 22454 04/30/03 180.,00 008494 MINNESOTA MUNICIPAL 22455 04/30/03 53.00 .00001 BREEZY POINT RESORT 22456 04/30/03 885.00 007072 ST ANTHONY CHAMBER OF CO 22457 04/30/03 25.00 008800 BREMER BANK NA 22458 04/30/03 12,000.00 008800 BREMER BANK NA 22459 04/30/03 15,000.00 008716 SCENE/THE 22460 04/30/03 130.00 004250 LUNDGREN/MATTHEW H. 22461 04/30/03 180.00 008800 BREMER BANK NA 22462 04/30/03 12,000.00 008800 BREMER BANK NA 22463 04/30/03 15,000.00 008716 SCENE/THE 22464 04/30/03 130.00 004250 LUNDGREN/MATTHEW H. 22465 04/30/03 180.00 008800 BREMER BANK NA 22466 04/30/03 12,000.00 008800 BREMER BANK NA 22467 04/30/03 15,000.00 008716 SCENE/THE 22468 04/30/03 130.00 004250 .LUNDGREN/MATTHEW H. 22469 04/30/03 180.00 008800 BREMER BANK NA 22470 04/30/03 8-,000.00 LIQUOR CHECKING ACCOUNT +++ 118,203.00 i BRC FINANCIAL SYSTEM ST. ANTHONY VILLAGE 05/05/2003 13: Check Register GL540R-V06.54 PAGE 1 BANK VENDOR CHECK# DATE AMOUNT LIQR LIQUOR CHECKING ACCOUNT 008216 A T & T WIRELESS SERVICE 21979 05/14/03 40.04 008311 ALL SAINTS BRANDS DISTRI 21980 05/14/03 37.63 008621 ALLIANCE MECHANICAL 21981 05/14/03 494.50 004014 ALLIED PAPER CO. 21982 05/14/03 62.50 004015 AMERIPRIDE LINEN 21983 05/14/03 448.81 008794 ARCTIC GLACIER INC. ,21984 05/14/03 529.80 004293 BELLBOY CORP. 21985 05/14/03 3,110.20 008827 BLACKEY'S BAKERY 21986 05/14/03 125.76 002380 CENTERPOINT ENERGY MINNE 21987 05/14/03 2,933.98 004080 CHISAGO LAKES DIST. CO., 21988 05/14/03 3,116.60 _ 004085 CITY OF ST ANTHONY 21989 05/14/03 819.84 004095 COCA COLA BOTTLING 21990 05/14/03 1,862..30 008950 COMCAST 21991 05/14/03 157.23 008736 CREATIVE FORMS & CONCEPT 21992. 05/14/03 542.62 - 008557 DAILEY DATA & ASSOCIATES 21993 05/14/03 531.44 004120 EAGLE WINE CO 21994 05/14/03 1,027.70 004125 EAST SIDE BEVERAGE CO 21995 05/14/03 50,989.00 004130 ECOLAB 21996 05/14/03 318.46 004135 ELECTRO WATCHMAN INC 21997 05/14/03 1,961.97 001030 G & K SERVICES INC 21998 05/14/03 542.46 004172 GRAPE BEGINNINGS, INC. 21999 05/14/03 133.00 004175 GRIGGS COOPER & CO INC 22000 05/14/03 7,641.04 004201 HEGGIES PIZZA 22001 05/14/03 94.00 004207 HOHENSTEIN'S, INC 22002 05/14/03 4,812.55 004220 JOHNSON BROTHERS LIQUOR 22003 05/14/03 15,094.11 004230 KUETHER DISTRIBUTING CO 22004 05/14/03 63,786.90 002040 LILLIE SUBURBAN NEWSPAPE 22005 05/14/03 300.00 008229 LOFFLER BUSINESS SYSTEMS 22006 05/14/03 142.72 004265 MARK VII SAKES INC' _ 22007 05/14/03 24,545.16 008263 MCLEOD USA, INC. 22008 05/14/03 667.00 008392 MERCURY WASTE SOLUTIONS, 22009 05/14/03 27.28 005010 MINN CONWAY FIRE & SAFET 22010 05/14/03 231.43 007120 MINNESOTA UC FUND 22011 05/14/03 414.91 004334 NORTHEASTER 22012 05/14/03 186.15 000045 OFFICE DEPOT 22013 05/14/03 103.05 004345 OLD DUTCH FOODS INC 22014 05/14/03 70.08 004354 PAUSTIS & SONS 22015 05/14/03 840.49 004355 PEPSI COLA COMPANY 22016 05/14/03 428.40 004360 PHILLIPS WINE & SPIRITS 22017 05/14/03 6,770.22 004361 PINNACLE DIST. 22018 05/14/03 4,355.85 008770 PORTER/WILLIAM 22019 05/14/03 82.00 004376 PRIOR WINE CO 22020 05/14/03 2,153.23 008787 PROMOTIONAL PAGES, INC. 22021 05/14/03 480.00 004385 QUALITY WINE Co . 22022 05/14/03 20,352.66 008597 R.D. HANSON ASSOC., INC. 22023 05/14/03 185.50 008846 STANTON GROUP 22024 05/14/03 63.72 .00001 TIERNEY BROTHERS INC 22025 05/14/03 240.00 004468 TOTAL REGISTER SYSTEMS 22026 05/14/03 69.26 003560 TRACY PRINTING 22027 05/14/03- 94.00 008824 TRI-COUNTY BEVERAGE, INC 22028 05/14/03 151.20 008875 TRIO SUPPLY COMPANY 22029 05/14/03 232.00 008507 US FOODSERVICE 22030 05/14/03 4,269.90 ' 008888 VALPAK OF MINNEAPOLIS-ST - 22031 05/14/03 1,625.00 003710 VAN O LITE INC 22032 05/14/03 171.04 008316 WINE COMPANY/THE 22033 05/14/03 506.07 008310 WINE MERCHANTS INC 22034 05/14/03 514.35 : 002680 XCEL ENERGY 22035 05/14/03 812.01 . LIQUOR CHECKING ACCOUNT 232,299.12 **+ 15 EHLEK'b & ASSOCIATES INC ® To: Mike Morrison—City Manager 2 From: Stacie Kvilvang—Associate Financial Advisor LUSubject: Stonehouse Redevelopment Date: May 6, 2003 Overview: The structures on the Stonehouse/SAV I/Fire Station site are over 40 years old and in need of substantial renovation and/or removal in order to compete with today's retail market/needs and to keep the center economically viable for the City. In addition, The Fire Department was of the opinion that a new facility is needed because the current facility was never built/designed as a Fire Station. In light of this,the.facility is obsolete for the Fire Department's operational needs and code and accessibility requirements. Based upon these factors, the City Council has been looking at the potential opportunity to redevelop this site since early 2000. Following is a synopsis of discussions/actions to date: 1. 1999 — City began research for a referendum for city licensing of intoxicating liquor and sale of Sunday liquor 2. 2000—City Council goal setting identified Stonehouse/SAV I as major redevelopment goal 3. 2001 — City Council authorizes SEH to conduct an evaluation on Stonehouse. SEH determined Stonehouse needs to be replaced 4. 2001 — Goal setting session authorized Ehlers & Associates to analyze possible redevelopment of the site 5. 2001 —RFP sent out to redevelop Stonehouse site and adjacent shopping center 6. 2001 — City Council reviews RFP responses and decides not to redevelop at this time due to undertaking the Apache Plaza Redevelopment 7. 2002 — Jim Domoracki provides market analysis to City relating to owning a restaurant and charitable gambling options 8. 2002 — City Council goal setting identifies need to review constructing new fire station and public works facility 9. September 2002 — City assembles Task Force to review development of new fire station and public works facility 10. November 2002 — Liquor licensing and sale of liquor on Sunday referendum approved by voters 11. June 2002—City Council receives proposal from C-70 to redevelop site Mike Mornson May 6,2002 Page 2 12. September 2002 — Upon Ehlers recommendation, City Council rejects C-70 proposal and request Ehlers to talk to developers about possible redevelopment 13. October/November 2002 —Ehlers initiates discussions with potential developers 14. December 17, 2002 —Amcon presents redevelopment options to City Council for review and consideration. City Council directs Ehlers to complete financial analysis of proposal/options Based upon these discussions, Amcon submitted a proposal to Ehlers in December 2002. Their proposal is to construct 26,000 sq/ft of retail in two buildings. One building would be located on the northern portion of the property, at the intersection of County Road 88 and Kenzie Terrace. This building would accommodate a 5,000 to 6,000-sq/ft restaurant and its placement on the site will be contingent on the County deeding the needed additional Right-of-Way to the City. 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. If the City Council elects to proceed with redeveloping the Stonehouse site, Ehlers recommends entering into a Pre-Redevelopment Agreement with Amcon Construction for a term of six (6) months (see attached Agreement). The purpose of this Agreement will be to provide Amcon the opportunity to finalize development plans for submittal to the City Commissions, secure their financing for the redevelopment and for Ehlers to complete a comprehensive review of the financial feasibility of the proposed transaction. Primary Issues to Consider: 1. What are the City's goals for redevelopment of the site? z. Will the County deed the needed Right-of-Way(ROW) to the City for redevelopment? 3. How -can the City be assured that the Sports Boosters will be accommodated at the new restaurant? 4. Does Amcon have redevelopment experience and the financial capability to complete the redevelopment? 5. Is the redevelopment proposal financially feasible? 6. What other issues should the City consider as part of this redevelopment proposal? Analysis of Issues: 1. What are the City's goals for redevelopment of the site? Throughout the process, the City Council has relayed the following key points for the potential redevelopment of this site: 1. The City would like to retain an 8,000-10,000 sq/ft municipal liquor store on the site Mike Morrison 17 May 6, 2003 Page 3 2. The City would like to have a new restaurant that would accommodate the existing pull tab establishment on site 3. The City would like to see an outdoor seating space accommodated by the restaurant 4. If the Public Facilities Task Force recommended that the City construct a new Fire Station/Public Works Facility, the City would need to relocate the existing Fire Station, which the timing of this and the redevelopment would have to coincide or a phasing plan worked out 5. This intersection is the gateway to the community and therefore, the design of the site would need to reflect this status; and 6. The City may like the redevelopment to generate some form of financial contribution to the development of a new Fire Station These goals were relayed to Amcon and their proposal reflects addressing all of the above referenced key points. 2. Will the County deed the needed Right-of-Way (ROW) to the City for redevelopment of this site? WSB, the City's Engineering Firm, has been coordinating with Hennepin County to deed the needed ROW to the project. At this time, the County has provided a revised ROW plan that preliminarily shows that the development, as proposed, can proceed with little revision. 3. How can the City be assured that the Sports Boosters will be accommodated at the new restaurant? Since the City will be participating in the redevelopment of this site, the City can place restrictions within the Development Agreement that state that the new restaurant user must accommodate the Sports Boosters. 4. Does Amcon have redevelopment experience and the financial capability to complete the redevelopment? Amcon has extensive experience in redevelopment, new commercial, office and industrial development, as well as construction and construction management services. Review of their financial statements indicate their ability to continue to receive bank financing, as well as raise required equity to invest in future projects (from pre-development to final construction). Ehlers has worked with Amcon in several other communities and is confident in their ability to complete the redevelopment of the Stonehouse site in a timely fashion. Every development we have worked with them on they have been able to provide the required equity investment, as well as the bank financing. It should be noted that as a development standard, proof of financing from a bank is required within the final Development Agreement between the City and any developer. If financing is not obtained by a certain time, this would constitute a default under the Development Agreement and the City could terminate the Agreement, if they so chose. Mike Morrison May 6, 2003 Page 4 5. Is the redevelopment proposal financially feasible? Ehlers is in the process of completing a financial review of the proposed options for financing the redevelopment of this site. In addition, Ehlers is reviewing Amcon's development proforma from the aspect of development costs in relation to industry standards for pre-construction, construction, financing and development costs. A final financial analysis will be brought before the City Council at the time they will be considering a final Development Agreement with Amcon. 6. What other issues should the City consider as part of this redevelopment proposal? The six (6) month term of the Pre-Redevelopment Agreement will allow the City, Ehlers and Amcon the opportunity to review answers to the following questions: 1. Should money from the redevelopment of this site be utilized for the new Fire Station/Public Works Facilities or for a new Municipal Liquor Store? 2. What are the financial impacts to the City for closing SAV I for an interim period of time; and 3. Any other issue the City Council desires to review Based upon the preliminary review of the development proforma submitted by Amcon and the proposed options, I am confident that if the City elects to proceed with the redevelopment, that Amcon will be able to complete it in accordance with the City's time frame and to the City's desired standards. Pease contact me at 651-697-8506 with any questions. 19 CITY OF ST. ANTHONY VILLAGE RESOLUTION 03 - 037 A RESOLUTION AUTHORIZING THE MAYOR AND CITY MANAGER TO ENTER INTO A PRE-REDEVELOPMENT AGREEMENT WITH AMCON CONSTRUCTION WHEREAS, the City of St. Anthony desires to redevelop the City-owned property generally described as the Stonehouse/SAV I/Fire Station 1 Redevelopment; and WHEREAS, Amcon Construction has submitted a Pre-Redevelopment Agreement relating to said redevelopment project. NOW, THEREFORE,BE IT RESOLVED, that the City Council of the City of St. Anthony hereby authorizes the Mayor and City Manager to enter into an Pre-Redevelopment Agreement with Amcon Construction, relating to the redevelopment of the above-described property, on behalf of the City of St. Anthony. Adopted this day of , 2003. Mayor ATTEST: City Clerk Reviewed for Administration: City Manager 2® PRE-REDEVELOPMENT AGREEMENT t THIS AGREEMENT,.made and entered into as of the day of , 2003 by and -- ---- between THE CITY OF ST. ANTHONY VILLAGE, a Minnesota public body corporate and politic, (hereinafter referred to as the "City"), and having its principal office at 3301 Silver Lake Road, St. Anthony Village, MN 55418 and AMCON CONSTRUCTION, a Minnesota company, or its successors or assigns ("Redeveloper") and having its principal office at 200 West highway 13, Burnsville MN 55337. BACKGROUND The purpose of this Agreement is to set forth the understanding between the parties with respect to the redevelopment of portions of the area generally described as the Stonehouse/SAV 1/Fire Station 1 Redevelopment(the "Redevelopment Property @) and shown in Exhibit A. BASIC TERMS AND CONDITIONS The following is a list of the terms and conditions under which the Redeveloper will proceed on an exclusive basis for the term of this agreement to structure and develop with the City a definitive Redevelopment Agreement for the Project and is intended to define the responsibilities and roles of the respective participants regarding the proposed redevelopment of the Project. 1. Redevelopment Propert y. (a) The legal descriptions of the properties comprising the Redevelopment Property are set forth in Exhibit A. Said properties are commonly referred to as the Stonehouse/SAV 1 and Fire Station 1 Property. (b) The Redevelopment Property consists of approximately one (1) acre. of land, together with all improvements and structures located on the land and easements and rights benefiting or appurtenant to the land. The exact dimensions and square footage of the Redevelopment Property shall be determined by survey as a part of the obligations contained in the Redevelopment Agreement. 2. Undertaking and Exclusive Rights. In consideration of the time, effort and expenses to be incurred by Redeveloper in pursuing the undertakings set forth herein and in further consideration of the deposit to be made by the Redeveloper pursuant to Section 10 of this Agreement, the City hereby agrees that for the Term of this agreement it will not enter into an agreement for provision of financial assistance to any third party in connection with any proposed development within the Site. During such Term, the Redeveloper shall have the exclusive right to work with the City in establishing a definitive Redevelopment Agreement by which the Redeveloper agrees to construct certain public and private improvements (the "Minimum Improvements") upon the Redevelopment 1 PRE-REDEVELOPMENT AGREEMENT Property and the City agrees to provide public assistance as described in Section 5, below. 3. Term. The exclusive rights described in Section 2 shall continue, unless earlier terminated as provided herein, for a period of six (6) months from the date of this Agreement, or until such later date as the parties may mutually agree. 4. The Minimum Improvements. The Minimum Improvements will include, but not be limited to, demolition of existing structures and the development of approximately 26,500 sq/ft of retail. The Minimum Improvements will be constructed pursuant to construction plans acceptable to and approved by the City. 5. Public Participation. In order to achieve the foregoing multi-use redevelopment, it is anticipated that the Redevelopment Agreement will contain provisions addressing public participation, which may be necessary in order to accomplish the redevelopment. Subject to agreement to all of the terms and conditions of the Redevelopment Agreement, the form of public assistance might include: (a) Infrastructure. All necessary public infrastructure may be constructed by and in cooperation with the City, or by the Redeveloper. Costs related thereto may be financed either through special assessments, bond proceeds or a combination thereof. (b) Grants. The City, as well as other outside sources such as Hennepin County, might consider providing grant(s) to permit the Redeveloper to construct the Minimum Improvements. The City would agree to cooperate with the Redeveloper in efforts to secure grants or similar funding. The use of any grant(s) and the amount of such grant(s) will not be known until the exact scope of the Minimum Improvements is finally determined, and the availability of certain types of grants and a Minimum Improvement budget is established. The parties will agree on how to address these matters prior to or as a part of the Redevelopment Agreement. (c) Cash. The City may be asked to provide certain loans and/or cash contributions to the Redeveloper to support redevelopment and construction of the Minimum Improvements. Any agreement by the City to provide any of the public assistance described herein, as reflected in the Redevelopment Agreement, shall be at the absolute discretion of the City based upon availability of funding, appropriate security and its analysis of need. 6. Ownership. It is expected that the final redevelopment proposal will provide that the Redeveloper will act as the master developer of the Redevelopment Property. It is contemplated that the retail portions of the Minimum Improvements will be owned by the Redeveloper, or its successors or assignees. 2 PRE-REDEVELOPMENT AGREEMENT 22 7. Contemplated Redevelopment Schedule. The contemplated redevelopment schedule is as follows: Redevelopment Agreement 3 months from date of this Agreement Sale of City Land: Summer, 2003 Construction Start Date: Summer, 2003 Project completion: Spring 2004 8. Contingencies. It is expected that the Redevelopment Agreement will address the following items: a. Redeveloper acquisition of the property and all other property not currently owned and deemed necessary to complete the agreed upon Minimum Improvements. b. Delivery to the Redeveloper of Phase I environmental assessment on City-owned property and completion of all other environmental and wetland reports and surveys deemed necessary by the City,the Redeveloper and its lenders; C. Acquisition all necessary approvals for construction of the Minimum Improvements from any participating governmental authority including, but not limited to, any necessary watershed district; d. Completion of all zoning modifications, rezoning approvals, conditional use permits and all other governmental permits and approvals necessary to allow construction of the Minimum Improvements; e. Approval by the Redeveloper of title commitments for City-owned property; f. Approval by the Redeveloper and the City of all property test results including, but are not limited to soils, well, engineering, hazardous waste, and environmental reviews; g. Financing commitments acceptable to Redeveloper and the City; h. Agreement of the City to cooperate with the Redeveloper's lender and to execute any and all reasonable documents with respect to construction and permanent financing. i. Execution by the City and Redeveloper of necessary reciprocal operating and easement agreements to provide the necessary access to permit construction of the Minimum Improvements, and to coordinate and facilitate vehicular and pedestrian ingress and egress to the Minimum Improvements and the joint use, maintenance and repair of all common areas, utilities, parking lots and parking structures within the Redevelopment Property. 3 PRE-REDEVELOPMENT AGREEMENT 9. Termination. This agreement may be terminated prior to its expiration by the City as to all or a portion of the Redevelopment Property upon the giving of written notice to the Redeveloper that the Redeveloper is not cooperating with the City in attempting to reach agreement on terms of a Redevelopment Agreement or is otherwise not diligently pursuing the redevelopment of said portions of the Redevelopment Property. Redeveloper shall have a reasonable time, but in no event less than 30 days, to demonstrate to the City's reasonable satisfaction that it is diligently pursuing such matter. 10. City Consultants. (a) The City intends to retain the services of Dorsey & Whitney , LLP. and Ehlers & Associates upon the execution of this agreement. Dorsey & Whitney is being retained to assist with legal matter pertaining to redevelopment financing and the Redevelopment Agreement. Ehlers & Associates is being retained to assist the City in the technical matters such as project management, financial feasibility, tax increment calculations, "but-for" analysis, and other factors pertaining to any claim for economic assistance. (b) Redeveloper agrees that it will be responsible for reimbursing the City for all fees and expenses incurred by the City pursuant to Section 10(a). (c) Redeveloper has, simultaneously with the execution of this Agreement, deposited the sum of$10,000 with the City. The City shall apply such deposited amount to the costs described in Section 10(a). Upon termination or expiration. of this Agreement, any unused portion of the deposit will be refunded to Redeveloper. If at any time during the Term of this Agreement, the City pays such costs in excess of the deposit, the City shall notify the Redeveloper and the Redeveloper shall reimburse the City for such excess amount within 10 days of such notification. 11: Assignment. This Agreement shall not be assigned by the Redeveloper without the written approval of the City. In the event this Agreement expires or is terminated without the parties entering into a definitive Redevelopment Agreement, the Redeveloper shall assign the Preliminary Agreement to such entity or entities an the City shall direct. In the event the Redeveloper is directed to provide such an assignment, and fails or refuses to do so, the City is hereby appointed the agent of the Redeveloper for the sole purpose of perfecting such assignment, which the City may undertake and complete without further action by or approval of the Redeveloper. 12. Notices. All communications shall be directed to the Redeveloper at the address listed above with copies to: Redeveloper: Amcon Construction Atn: Jim Winkels 200 West Highway 13 Burnsville MN 55337 952-890-1217 - Phone 952-890-0064—Fax 4 PRE-REDEVELOPMENT AGREEMENT 24 All communications shall be directed to the City at the address listed above with copies to: Attorney for the City: Jerome P. Gilligan Dorsey& Whitney LLP 50 South Sixth Street, Suite 1500 Minneapolis MN 55402 612-340-2962--Phone 612-340-2643 - Fax IN TESTIMONY WHEREOF, the parties hereto have set their hands as of the date and year first above written. AMCON CONSTRUCTION By Its CITY OF ST. ANTHONY VILLAGE By: Its Mayor By: Its City Manager 5 PRE-REDEVELOPMENT AGREEMENT J. I , '�-� (� -A �r{.G1t"iir"'tt3i} n ,.r, - ,'y'��I ' r : x,•i,�i'I I a i � t t � Ak -may •. �- x om = o. FFF"' �•Yi 1 a /�,yl..�.aF ` _ .t'f<f� ,�';? '$ '�` " 7i IllI �i i .y" ( tu+�,s�J 4G�lry�}��1'f(r ll'lii r .� � '44{�� `S. �•i i��-y Ij3, _ „r i .+ 9t 'ith �� 5 '. T'F _ ./'y" T;; _ �.• d.v �4 e �Wfx, .- - N_ fi ,� • � J'i'1 Fis r �ja +3` _ G.t. a y- p {b„.+n tF 1�A `� - _T ,:�r f r"3rtS I i 'rt - ti�a .., -'YR— I'.. 9ar� `' /:- '� •l�k.C� tiS 't 5� ,.�6.t Pf �3 ��i.;r� �'., .z rw Z :�.aP13x :;' .: -V� O � 'ir�a'f. S• i .Z z �,e f .') .y � - s:._� tc �: gt ll'I b J.t�srrr�iw`"'Lw r• ! t$m w>. t '� S� �t* �E9 r��n�nd I-t=,��s s r,_., a ,v ,�.�• � `ur.' '°-r-°,r'�-:� ���' >' .9� I. rc � � 1 �k)Y 4J"`�I�I��������' v ht i s e -� c.� �,�,�.ice � � 3�1� ��1`�r{i }� �C{qI �'•�.? _sej�',oG Fy>{, n3�! C' Sfs.o! 'Tglfw y r r _ 1'�'`�1��t■q■p�YF I��� � >f "a'6 �f[�1? 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ANTHONY VILLAGE RESOLUTION 03 - 035 A RESOLUTION APPROVING CLOSING THE STONEHOUSE BAR AND RESTAURANT WHEREAS, the Stonehouse Bar and Restaurant is a city-owned property located at 2700 Highway 88 within the City of St. Anthony; and WHEREAS, the City has been presented an opportunity by Amcon Development to redevelop the site; and WHEREAS, Amcon will allow charitable gambling organizations, now situated in the Stonehouse Bar and Restaurant, to continue their pull tab activities; and WHEREAS, liquor liability insurance and most costs associated with maintaining the Stonehouse Bar and Restaurant are continuing to increase. NOW,THEREFORE, BE IT RESOLVED that the City Council of the City of St. Anthony hereby agrees to close the City-owned Stonehouse Bar and Restaurant, 2700 Highway 88 within the City of St. Anthony, effective May 31, 2003. Adopted this day of ) 2003. Mayor ATTEST: City Clerk Reviewed for Administration: City Manager 26 MEMORANDUM DATE: November 4, 2002 TO: Mike Mornson, City Manager FROM: Roger Larson, Finance Director ITEM: STONEHOUSE INSURANCE RENEWAL In early April, the City went out for bids to renew the dram shop insurance for the Stonehouse Bar& Grill. From a competitive bidding prospective, the results are not good news. A review is as follows: 1) United States Liability Insurance—Declined to quote due to loss history. 2) Lexington Insurance Company—Declined to quote due to loss history. 3) Scottsdale Insurance Company—Declined to quote due to loss history. 4) Minnesota Joint Underwriting Association- $72,075 ($48,060 increase) In addition, State Farm Insurance contacted the City to quote, but withdrew because of the sales to food ratio at the Stonehouse (80% liquor, 20% food) did not fit State Farm's requirement that liquor sales can not exceed 35% of sales. This leaves the quote from the Minnesota Joint Underwriting Association at$72,075 as the sole choice for the City in 2003. At our 2002 and 2003 goal setting and strategic planning meetings, staff discussed concerns that increased costs for dram shop insurance, could significantly impact the Stonehouse's ability to remain profitable. A review of the 2002 Profit and Loss and estimated 2003 P &L with the insurance increase is as follows: 2002 2003 Profit from Operations $ 8,507 ($19,450) Other Income $43,569* $46,875 Total Income $52,076 $27,425 *Video Games $ 9,300 ATM $11,000 Check Cashing $10,500 Pull-Tab Rent $10,800 Other Misc. $ 1,969 27 In addition, applying the insurance increase into 2004 shows that annual profit would continue to decline (estimated 2004 profit= $7,000/$8,000 -Profit from Operations is estimated at a loss of $40,000). The proposed redevelopment of the Stonehouse is timely, because it provides the City to close operations before losses occur and provides the opportunity to quickly turn this property into asset that provides tax base (estimated property taxes = $98,000 annually). Strictly from a financial point of view, the highest yield of return would be to close the Stonehouse down on 5/31/03,and not renew the insurance at the higher rate. However, other considerations, such as the Sports Boosters or negotiations of redevelopment, may make it practical to remain open beyond 5/31/03. To provide Council with alternative closing dates, the attached analysis is based on the five year average profit of the Stonehouse= $55,375. 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I' ,R CF• e, � e n< �r t a v. �. ty ;_...i ...'v,.1. "x-i.';Y•„= :t?�. -1•rT 30 Sunrise Park Insurance Agency, Inc. 2063 County Road E, East White Bear Lake, MN 55110 (651) 777-7475 FAX (651) 777-7092 May 6, 2003 Roger Larson City of St Anthony 3301 Silver Lake Road St Anthony, MN 55418 RE: Liquor Liability Insurance Dear Roger, On behalf of the City of St Anthony, I have submitted the applications for the Stonehouse Bar & Grill to the four companies we have available to write liquor liability insurance. Following is the response I receive from each company: ■ United Sates Liability Insurance — Declined to quote due to loss history.. ■ Lexington Insurance Company — Declined to quote due to loss history; and, they are not currently writing municipals in Minnesota. o Scottsdale Insurance Company— Declined to quote SAV 1 Liquors and Stonehouse Bar & Grill due to loss history. ■ Minnesota Joint Underwriting Association — Provided the quote outlined in the attached letter. At this time, these are the only companies that are writing mono-line liquor liability insurance in Minnesota. Please contact me if you have any questions, or need any additional information. Sincerely, Doris Youn uis� CSC gq 31 Sunrise Park Insurance Agency, Inc. 2063 County Road E, East White Bear Lake, MN 55110. . (651 ) 777-7475 .FAX (651) 777-7092 April 21, 2003 City of St Anthony 3301 Silver Lake Road St Anthony, MN 55418 Dear Roger, Your liquor liability insurance policies for your tavern and package stores expire at 12:01 a.m. on 06/01/03. Based on the expiring policies following is a renewal quote offered by the Minnesota Joint Underwriting Association: Bodily Injury $1,000,000 Per Person $1,000,000 Per Occurrence Property Damage $1,000,000 Per Occurrence Loss of Means of Support $1,000,000 Per Person $1,000,000 Per Occurrence Annual Aggregate $2,000,000 Stonehouse Sav 1 Liquor Sav 2 Liquor Rate $ 9.30 $ 0.70 $ 0.70 Receipts $775,000 $1,800,000 $1,800,000 . Annual Premium $ 72,075 $ 12,600 $ 12,600 Total $97,275.00'* Agency Fee $ 100.00 Down Payment $25,320.00 To bind coverage, we must have the following: 1. Signed Applications. 2. Check for minimum down payment, or annual premium. 3. Sales Tax forms for the past 12 months verifying receipts. 4. Letter from the City of copy of ordinance requiring higher liability limits. 5. Copy of your current liquor license. ** Quote is based on one prior claim at the Stonehouse Bar. Defense costs are in addition to the liability limit. Subject to audit. See policy for complete terms and conditions. Please review the quote and contact me if you have any questions. If you wish to bind coverage, I will need the items noted above. Contact me for the appropriate application. This information will need to be received in our office at least 5 days prior to the effective date to obtain a Certificate of Insurance. Thank you for your business. Sincerely, Doris Young u CIC 32 MINNESOTA JOINT UNDERWRITING ASSOCIATION PIONEER P.O. BOX 1760 ST. PAUL, MN 55101 1 (800) 552-0013 or (651) 222-0484 fax: (651) 222-7824 MINIMUM LIMITS OF LIABILITY PER MINNESOTA STATUTES Coverage Limits of Liability Bodily Injury $50,000 each person $100,000 each occurrence Property Damage $ 10,000 each occurrence Loss of Means of Support $50,000 each person $100,000 each occurrence Annual Aggregate $300,000 ANNUAL RATES FOR ABOVE LIMITS (Per$100 of Liquor Sales) —Classification— --Rate-- --Minimum Premium— Off Sale Only .42 $250 Restaurants/Clubs 1.46 $500 (Liquor sales LESS than food sales) Restaurants/Clubs $3.74 $750 (Liquor'sales MORE than food sales) Bars/Bowling Alleys Combined OnlOff Sale Special Events $5.00 $125/day Rate Scale for Indicated Number of Claims (reserved or paid) in Last Three Years Bar Restaurant Off Sale No Claims 3.74 1.46 .42 1 Claim 5.6 2.19 .63 2 Claims 7.48 2.92 .84 3 Claims 9.35 3.65 1.05. 4 Claims 11.22 4.38 1.26 / RATES EFFECTIVE 4/1/03 33 INCREASED LIMITS FACTORS Note- Increased limits are available only to vendors who are REQUIRED to carry increased limits by their local licensing authority. The MJUA requires that it be provided with a copy of the ordinance at the same time an Application is submitted. The factors shown below must be applied to the rates and minimum premiums shown for the. applicable classification on Page 1. Special Event Special Event Rate Per Increased Limits Factor Min. Premium $100 of Sales 100/100/20 1.14 $142.50 $5.70/100 200/200/40 1.27 $158.75 $6.35/100 300/300/60 1.37 $171.25 $6.85/100 500/500/100 1.50 $187.50 $7.50/100 500/1000/100 1.52 $190.00 $7.60/100 1 M/1 M/300 1.64 $205.00 $8.20/100 300/1 M 1.42 $177.50 $7.10/100 200/600 1.31 $163.75 $6.55/100 1 M/2M 1.66 $208.00 $8.32/100 Special Event Coverage This coverage is available through the MJUA subject to the same requirements and conditions applicable to other risks. The MJUA requires: 1. a fully completed application signed by the applicant/licensee; 2. a copy of applicant's liquor license or of the application for a pending license; 3. documentation of liquor receipts; 4. a copy of the ordinance if increased limits are required; 5. 100% of the premium must accompany the application. The rate for the minimum limits of liability under Minnesota Statutes is $5 per$100 of gross liquor receipts. Minimum premium is $125/day for events of 4 days or less. For events of 5 days or more, the minimum premium is $625. The $5 rate applies to sales in excess of sales necessary to generate the minimum premium. You must maintain daily records of receipts for events of less than 5 days. A written rejection is not presently required for a "Special Event". Effective Date Coverage cannot be bound earlier than 12:01 a.m. the day following receipt by the MJUA of the application, ALL required documentation, and the deposit premium. AGENTS DO NOT HAVE BINDING AUTHORITY. 34 MEMORANDUM DATE: April 15, 2003 TO: Roger Larson, Finance Director FROM: Mike Mornson, City Manager ITEM: SPORTS BOOSTER ANALYSIS The following is a recap of Sports Booster annual pull tab sales and profits for the months June, July and August: Sales 2002 2001 $1,418,651 $1,249,067 Profits 2002 2001 June $ 8,815 $ 4,179 July $ 3,412 $ 8,201 August $14,378 $ 6,205 Total $26,605 $18,585 Based on these numbers, the average profit for the two years= $22,595 (Add $26,605 and $18,585....Divide by 2). Another comparison: Stonehouse: Sales 2002 2001 $785,285* $771,210 Profit: Operations $ 8,507 $ 21,953 Other Income $ 43,569 $ 38,583 $ 52,076 $ 60,536 *For every $1.00 in liquor sales, $1.80 is spent on pull-tabs. May 2,2003 Gain thon illa e FUTURE COUNCIL AGENDA ITEMS Meeting Date Meeting Type Staff Present Items/Issues May 20 Work Session 6:30 pm-Multi-purpose room Discuss financing options for NWQ Discussion of public facilities study Stonehouse redevelopment Sroga's property State aidibudget update May 27 Regular Stu Bonniwell 2002 audit Roger Larson 2002 Finance Report Todd Hubmer Engineering update Insurance renewal Planning Commission issues-May 20 (pawnbrokers/2nd hand dealers ordinance) June 3 Joint meeting 6:30 pm-Joint meeting with Planning Commission June 9 Joint meeting 6:30 pm-Joint meeting with Parks Commission June 10 Regular June 24 Regular Public hearing on TIF plan HRA Review TIF plan Public hearing on sale of Kenzie property to LaNel and development agreement May 2003 Monthly Planner 1 2 3 Apr2003 Jun 2003 6:30 PM 9:00 AM-1:00 S M T W T F S S M T W T F S MAYOR'S PM Clean Up 1 2 3 4 5 1 2 3 4 5 6 7 STATE OF THE Day 6 7 8 9 10 11 12 8 9 10 11 12 13 14 CITY& 13 14 Is 16 17 IB 19 15 16 17 IB 19 20 21 VOLUNTEER RECOGNITION 20 21 22 23 24 25 26 22 23 24 25 26 27 28 27 28 29 30 29 30 4 5 6 7 8 9 10 7:00 PM Public Facilities Study Group Work Session 11 12 13 14 15 16 17 7:00 PM Public Facilities Presention to Council and Regular Council Meeting 18 19 20 21 22 23 24 6:30 PM Council Work Session in Multi-purpose Room 7:00 PM Planning Commission meeting 25 26 27 28 29 30 31 7:00 PM Council Meeting June 2003 Monthly Planner 1 2 3 4 5 6 7 6:30 PM Joint Meeting with Planning Commission 8 9 10 11 12 13 14 6:30 PM Joint 7:00 PM Council Meeting with Meeting Parks Commission 15 16 17 18 19 20 21 7:00 PM Planning Commission meeting 22 23 24 25 26 27 28 7:00 PM Council Meeting 29 30 May 2003 Jul 2003 S M T W T F S S M T W T F S 1 2 3 1 2 3 4 5 4 5 6 7 8 9 10 6 7 8 9 10 11 12 11 12 13 14 15 16 17 13 14 15 16 17 IS 19 18 19 20 21 22 23 24 20 21 22 23 24 25 26 25 26 27 28 29 30 31 27 28 29 30 31 INVESTMENT PORTFOLIO: 03/31/2003 Interest Date BREMER-ST ANTHONY BANK Rate Purchased Maturi Book Value INVESTMENT DEMAND-MONEY MARKET SAVINGS 1.75% 1 DAY LIQUIDITY(SWEEP) $120,471.13 41M GENERAL $151,000 GENERAL ELECTRIC COMM PAPER 1.221% 02128/03 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 41M 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 02/04128 $101,033.87 $1,159,000 NEWBURY FUNDING COMM PAPER 1.220% 02/27/03 05/27/03 $1,155,561.63 $203,000 GENERAL ELECTRIC COMM PAPER 1.220% 02/28/03 05/27/03 $202,404.53 $104,000 GENERAL ELECTRIC COMM PAPER 1.020% 03/18/03 05/27/03 $103,797.78 $1,816,260.31 DAIN RAUSCHER-GENERAL GNMA POOL 4734 8.50% 02/01/75 01/15/05 $55.37 GNMA POOL 6472 7.50% 07/01/75 07/15/05 $291.69 GNMA POOL 14376 7.50% 03101!77 03/15/07 $988.34 GNMA POOL 23364 9.00% 09/01178 09/15/08 $457.01 GNMA POOL 23356 9.00% 11/01178 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 $800,000 GENERAL ELECTRIC COMM PAPER 1.233% 02/28/03 05129/03 $797,580.70 $100,000 PROVIDENT BANK CID-STEP/UP 5.000% 05/30/02 05/30/17 $100,000.00 $100,000 RESOURSE BANK CID 5.000% 09/19/02 09119/17 $100,000.00 $1,200,403.32 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% 01/08/03 01/22123 $28,480.61 $100,000 LASELLE BANK-ZERO COUPON BOND 6.25% 02/19/03 02/19/23 $29,170.00 $100,000 STANDARD FEDERAL-ZERO COUPON BOND 6.25% 02/19103 02/19/23 $29,170.00 $287,000 GECC COMMECIAL PAPER 1.175% 02/14/03 05/15/03 $286,176.07 $ 30,000 FED HOME LOAN MORTGAGE CORP-6.50% 6.50% 11/26/02 04/11/17 $30,450.00 $ 30,000 FED HOME LOAN MORTGAGE CORP-6.40% 6.40% 11/26/02 04/14/14 $30,500.00 $ 40,000 FED HOME LOAN MORTGAGE CORP-6.515% 6.515% 11/27/02 07/11/14 $41,050.00 $569,179.57 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 $313,000.00 SEARS ROEBUCK COMM PAPER 1.578% 02/10/03 05112/03 $311,773.65 $128,000.00 SEARS ROEBUCK COMM PAPER 1.546% 02/21/03 05/12/03 $127,567.64 $247,000.00 SEARS ROEBUCK COMM PAPER 1.546% 02/21/03 05/12/03 $246,165.69 $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-SEMI 6.00% 11/19/01 11/19/21 $197,000.00 $200,000.00 FHLMC MED TERM NOTE-STEP UP 6.50% 12/28/01 12115/16 $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% 08127/02 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 10122/27 $100,250.00 $2,186,756.54 Time4/17/2003 MONTHLY INVESTMENT REPORT MARCH 2O03INVESTI 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 $105,000-FHLMC MEDIUM TERM NOTE 6.50% 6.50% 10/15/02 04/15/17 $105,000.00 $200,000-FHLMC MEDIUM TERM NOTE 6.00% 6.00% 11/25/02 12/13/17 $200,000.00 $1,000,000-FHLMC-ZERO COUPON BOND 7.75% 12/27/01 12/27/21 $218,553.80 $ 50,000-INFIBANK ATLANTA-CERTIFICATE OF DEPOSIT 1.750% 12/31/02 04/11/03 $50,000.00 $264,000-GE CAPITAL COMMERCIAL PAPER 1.216% 02/14103 05/12/03 $411.804.50 $1,553,159.06 TOTAL BOOK VALUE $8,310,762.83 Time4/17/2003 MONTHLY INVESTMENT REPORT MARCH 2O031NVESTI March -2003 City of St.Anthony Profit& Loss Statement from Operations Actual Actual Year to Date Year to Date Increase SAV I SAV II STONEHOUSE 03/31/03 03/31/02 (Decrease) Sales $160,744.00 $164,915.00 $72,591.00 $1,130,003.00 $1,111,302.00 $18,701.00 Less: Cost of Goods Sold $124,574.00 $129,334.00 $20,967.00 $796,416.00 $789,153.00 $7,263.00 Gross Profit $36,170.00 $35,581.00 $51,624.00 $333,587.00 $322,149.00 $11,438.00 Ratio to Net Sales 22.50% 21.58% 71.12% 29.52% 28.99% Operating Expense: Salaries, Wages, Benefits $14,533.00 $14,706.00 $22,589.00 $155,558.00 $161,900.00 ($6,342.00) All Other Expenses $12,165.00 $14,135.00 $21,981.00 $128,939.00 $111,534.00 $17,405.00 Total Operating Expense $26,698.00 $28,841.00 $44,570.00 $284,497.00 $273,434.00 $11,063.00 Ratio to Net Sales 16.61% 17.49% 61.40% 25.18% 24.60% Profit from Operations $9,472.00 $6,740.00 $7,054.00 $49,090.00 $48,715.00 $375.00 Other Income $1,019.00 $796.00 $3,881:00 $10,175.00 $13,232.00 ($3,057.00) Net Income $10,491.00 $7,536.00 $10,935.00 $59,265.00 $61,947.00 ($2,682.00) Ratio to Net Sales 6.53% 4.57% 15.06% 5.24% 5.57% March -Net.lncome $28,962.00 Y-T-D SAVI SAV II STONEHOUSE ALLSTORES YEAR TO DATE 03/31/03 $21,861.00 $15,098.00 $22,306.00 $59,265.00 YEAR TO DATE 03/31/02 $22,061.00 $19,531.00 $20,355.00 $61,947.00 Audited INCREASE/DECREASE ($200.00) ($4,433.00) $1,951.00 ($2,682.00) 2002 Actual Profits (Audited) 2003 Y-T-D Profits Actual Y-T-D SAV 1 SAV II Stonehouse SAV I SAV II Stonehouse Profits Comparlson January $5,583.00 $2,817.00 $3,554.00 $11,954.00 January $6,588.00 $3,381.00 $2,657.00 $12,626.00 $672.00 February $6,023.00 $6,005.00 $9,656.00 $33,638.00 February $4,782.00 $4,181.00 $8,714.00 $30,303.00 ($3,335.00) March $10,455.00 $10,709.00 $7,145.00 $61,947.00 March $10,491.00 $7,536.00 $10,935.00 $59,265.00 ($2,682.00) April $7,341.00 $6,511.00 $10,932.00 $86,731.00 April $0.00 $0.00 $0.00 $59,265.00 May $10,901.00 $14,402.00 $6,374.00 $118,408.00 May $0.00 $0.00 $0.00 $59,265.00 June $15,589.00 $16,045.00 $1,586.00 $151,628.00 June $0.00 $0.00 $0.00 $59,265.00 July $8,989.00 $9,839.00 ($7,247.00) $163,209.00 July $0.00 $0.00 $0.00 $59,265.00 August $18,973.00 $11,447.00 $2,001.00 $195,630.00 August $0.00 $0.00 $0.00 $59,265.00 September $6,675.00 $6,725.00 $4,695.00 $213,725.00 September $0.00 $0.00 $0.00 $59,265.00 October $4,618.00 $6,750.00 $402.00 $225,495.00 October $0.00 $0.00 $0.00 $59,265.00 November $13,789.00 $14,888.00 $4,294.00 $258.466.00 November $0.00 $0.00 $0.00 $59,265.00 December $8,179.00 $26,775.00 $8,684.00 $302,104.00 December $0.00 $0.00 $0.00 $59,26,5.00 Total $117,115.00 $132,913.00 $52,076.00 $302,104.00 Total $21,861.00 $15,098.00 $22,306.00 $59,265.00 Increase/(Decrease) ($200.00) ($4,433.00) $1,951.00 ($2,682.00) Y-T-D By Store March -2003 City of St.Anthony Reconciliation to Inventory Valuation Report SAV I SAV II. Beginning Inventory: $215,632.28 Beginning Inventory: $241,789.02 Plus or Minus: Plus or Minus: Transfers: SAV 1 $2,622.57 Transfers ($2,622.57) Stonehouse ($5,486.68) Adjustments ($108.29) Adjustments $68.38 Returns to Vendors ($2,940.33) Returns to Vendors ($1,885.72) Add: Receiving $118,810.45 Add: Receiving $127,176.13 Less: Cost of Goods Sold ($124,642.04) Less: Cost of Goods Sold ($129,225.51) TOTAL $205,119:24 TOTAL $234,068.45 Total per Valuation Report $204,454.43 Total per Valuation Report $234,313.16 *"" Difference $244.71 Difference ($664.81) Beginning April 2003 Inventory $204,454.43 Beginning April 2003 Inventory $234,313.16 'Comes from Valuation Report ***Comes from Valuation Report General Fund Budget to Actual Report: April 2003 Expenditures: Mean Average 33% 04/30/2003 Percentage Remaining Budget Y-T-D Balance Spent Budget Mayor/Council $59,400.00 $9,826.62 $49,573.38 17% 83% Intergovernmental Relations $21,000.00 $10,377.00 $10,623.00 49% 51% Cable Franchise $22,000.00 $2,430.35 $19,569.65 11% 89% General Management $79,300.00 $30,924.90 $48,375.10 39% 61% Elections $25,200.00 $3,760.00 $21,440.00 15% 85% Finance/Insurance $224,200.00 $54,713.26 $169,486.74 24% 76% Finance/Assessing $41,600.00 $776.98 $40,823.02 2% 98% Legal $96,000.00 $31,416.32 $64,583.68 33% 67% Engineering/Planning/Zoning $2,600.00 $205.61 $2,394.39 8% 92% City Buildings $121,400.00 $16,708.16 $104,691.84 14% 86% Civil Defense $45,500.00 $12,451.75 $33,048.25 27% 73% Police Protection $1,159,200.00 $352,151.34 $807,048.66 30% 70% Lauderdale/Falcon Heights $578,200.00 $175,811.69 $402,388.31 30% 70% Fire Protection $587,400.00 $170,815.88 $416,584.12 29% 71% Inspections/Building Permits $75,400.00 $10,976.80 $64,423.20 15% 85% Animal Control $4,200.00 $0.00 $4,200.00 0% 100% Public Works $420,200.00 $94,417.20 $325,782.80 22% 78% Public Works/Maintenance & Repair $125,700.00 $30,368.88 $95,331.12 24% 76% Tree and Weed Care $27,900.00 $7,923.94 $19,976.06 28% 72% Parks - $128,200.00 $39,220.31 $88,979.69 31% 69% Budget Reserves/Non Budgeted $0.00 $0.00 $0.00 0% 0% Total Expenditures $3,844,600.00 $1,055,276.99 $2,789,323.01 27% 73% Appropriation: $2,704,100.00 Hard Costs: 04/30/2003 Expenditures Balance Central Park Construction-Veit x$11 66 7133 $1,376,218.43 $285,543.70 City Hall Irrigation $28,100.00 $26,695.00 $1,405.00 Park Building-Thompson Homes $453,096.90 $312,295.89 $140,801.01 Central Park-Contingency 4000i00 $28,190.69 $5,809.31 Park Building Contingency $25.000.00 $0.00 $25.000.00 Total $2,201,959.03 $458,559.01 Silver Point Park Soft Costs: Building/Engineering URS-Planning& Design $269,050.00 $248,603.70 $20,446.30 Budget Expenditures Balance SEH-Engineering/Planning $55.000.00 $55,000.00 0.00 $25,700.00 $25,700.00 $0.00 Total $324,050.00 $20,446.30 Additional Hard Costs: Common Excavation $9,520.00 $7,839.12 $1,680.88 Common Borrow $36,988.00 $30,602.73 $6,385.27 Contaminated Soil/Disposal $25,153.58 $20,803.83 $4,349.75 Soccer Goal Posts $3,000.00 $2,412.04 $587.96 Veit Construction Contract $1,661,762.13 Erosion Control Fence $4,674.25 $3,919.56 $754.69 Change Orders $158,630.83 Lab,Testing-Soils Analysis $1,500.00 .$1,206.02 $293.98 $1,820,392.96 Environmental Field Supplies $295.00 $301.50 ($6.50) Lead/Oil Drum Disposal $3,500.00 $2,864.30 $635.70 Budget: Additional Lighting Foundation $30,000.00 $24,874.14 $5,125.86 Central ParkNeit $1; 61 7 2WO Practice Soccer Field $10,000.00 $8,291.38 $1,708.62 Contingency 3400000 $� Total s t�146� �0'$3 $21,516.21 Additional/Hard Costs X24"63083. $1,820,392.96 Additional Soft Costs: STS Consultants-Soil Borings $6,646.00 $6,646:00 $0.00 STS-Construction Testing $5,000.00 $2,520.00 $2,480.00 URS-Environmental Services $13,500.00 $3,500.00 $10,000.00 Bond Issuance $23,881.54 $30,786.54 ($6,905.00) Pollution Control $2,362.50 $2,572.50 ($210.00) Advertisement for Bids $390.10 $641.40 ($251.30) Maurice Anderson $1,680.00 $3,960.00 ($2,280.00) Total $53,460.14 $2,833.70 Central Park Project-Totals $2,704,100.00 $2,200,744.78 $503,355.22 Stormwater Fund - Cash on Hand 04/3012003 Projeted Revenues: Funding Source Revenues-to-Date Street Improvement Bonds $4,700,000.00 $4,626,923.80 MSA Bonds $950,000.00 $935,008.45 DNR $5,440,000.00 $5,528,617.36 FEMA $700,000.00 $700,000.00 Hennepin County $150,000.00 $150,000.00 Storm Water Utility Charges $500,000.00 $509,645.42 Storm Sewer City Bonds $1.610.000.00 $1,594.271.55 Total Project Budget $14,050,000.00 $14,044,466.58 Other Project Activity Reserves/Transfer from Revolving Fund $175,000.00 $175,000.00 State of Minnesota-Reimbursements $0.00 $18,755.27 Homeowner Portion-Grant Agreement $0.00 $5,060.75 HRA-Streetscape Transfer $0.00 $155,100.00 Met Council $20,000.00 $10,000.00 Stormwater Fees-Purchase 2809-30th Avenue NE $106,000.00 $106,000.00 Interest Earnings(Non DNR Funds) $0.00 $126,495.42 Sale of Pahl Avenue Homes(2700&2704) $0.00 $11,200.00 29th Avenue-Water Connection Fees $26,000.00 $26,400.00 Misc.-Homeowner/Reimburse for Extra Construction Work $0.00 $198,953.45 Total Revenues $14,377,000.00 $14,877,431.47 04/30/2003 Expenditures: Expenditures-to-Date WSB-Engineering Services $388,855.12 Barr-Engineering Services $2,709.35 Dorsey&Whitney-Legal Services $39,847.99 Rice Creek Watershed District-Water Study $2,025.00 Purchase of Flood Homes $1,201,416.16 Pahl Avenue Ponding $111,308.57 Flood Relief Grant Program $65,159.32 Private Homes-Dumpsters/Service Master $17,371.44 Sump Pump $246.64 1999 Street Improvement Project $1,128,342.79 2000 Street Improvement Project $2,943,537.37 2001 Street Improvement Project $2,091,194.23 2002 Street Improvement Project $2,296,896.82 2003 Street Improvement Project $63,275.73 Harding Street Holding Ponds $925,223.57 Richard Knutson;Inc-Silver Point Park $1.597.285.21 Total Expenditures $12,874,695.31 Project Balance $2,002,736.16 Stormwater Fees Non-Desiganted $183,178.70 Total Cash on Hand $2,185,914.86 EXPENDITURE REPORT 04/30!2003 WSB. Flood Relief Grant Program: 2001 Street Improvement Project Project Description: Expenditures Project Description: Water Resource Management Plan Expenditures Project Description: $12,191.50 Dennis/Penny Gault $10,000.00 WSB-Engineering Services $260,948.82 Water Management Plan $10,531.50 James/Susan Kozarek $10,000.00 Lillie Suburban Newspapers Stormwater Task Force $29,243.00 Thomas/Susan Hoban $800.00 Hage Concrete Works Stormwater Engineering $56,309.98 Julie Sexton $1,004.53 Olson' $2,35653 s Plumbing $221.50 Flood Problem Analysis $31,497.23 Village Properties-2801 37th Avenue NE $5,280.00 Dickson Electric $453.00 MCES Grant Application $1,724.25 Castle Building&Remodeling-3301 Edward St. $10,000.00 Sandness Construction $4,650.00 DNR/FEMA Grants $22,138.38 L.N.Soding-3460 Penrod Lane $600.00 Bond Issuance $21,183.48 Sump Pump Inspection Program $5,083.43 J&D Landscaping-3460 Penrod Lane $1,300.00 Park Construction $1.801.341.75 VI Park Design $156,447.10 St.Anthony Health Center-3700 Foss Road $3,301.00 Total 2001 Street Project $2,091,194.23 Study $32,283.50 RileWay Waterproofing-2929 Crestview Avenue $390.00 Flood Grant-1998/1999/2000/2001/2002 $31,405.25 Pine Cone Nursery-3460 Penrod Lane $9,222.80 2002 Street Improvement Project Total WSB $388,855.12 Lamere Concrete-Flood Proofing Improvement $4,412.00 Project Description: Barr McCaren Designs,Inc. $703.99 WSB-Engineering Services $248,991.25 Projecct t Description:: Minnehaha Falls Landscaping $5,587.50 Dorsey&Whitney $5,220.89 ription: Elgard Excavating $1,245.00 Construction Bulletin $215.16 District#6 Watershed Study $2,709.35 Twin Cities Glass Block $1,312.50 Moody's Investors Service $3,250.00 Total Barr Engineering $2,709.35 Total Flood Relief Program $65,159.32 Springsled,Inc. $13,217.86 Asphalt&Concrete $8,087.00 Dorsey 8 Whitney: Private Homes-Dumpsters/Servlce Master Crown Fence&Wire $6,528.10 Project Description: Project Description: Pipe Services Corp. $5,851.20 Legal Services for Flooding Issues $17.911.16 Waste Management $391.65 S.M.Hentges&Sons $2,005,535.36 Legal Services-Comdenation of Homes $17,117.75 Service Master $13,782.29 Total 2002 Street Project $2,296,896.82 Legal Services-4029 Shamrock Drive $1,938.85 Nancy Myhran $259.50 Legal Services-Pahl Avenue $2,880.23 Linda Gonler $198.00 2003 Street Improvement Project Total Dorsey&Whitney $39,847.99 Susan Kozarek $925.00 Project Description: Elaine Nelson $1,065.00 WSB-Engineering Services Water Quality Study: Sue Wenker $250.00 STS Consultants g $$2,442.90 $2,998.00 Silver Lake: Berkley Risk/Insuance Claim-Payment $500.00 Construction Bulletin $378.87 Rice Creek Watershed District $2,025.00 Total Dumpsters $17,371.44 Lillie Suburban Newspaper $64,58 Purchase of Homes: Sump Pump Pipe Services Corp. $4,391.38 Project Description: Project Description: $63,275.73 Network Titie,Inc. $255.00 Mcleod USA-Sump Pump Line $131.00 Harding Street Holding Ponds Purchase of 2716 SL Anthony Boulevard $134,928.90 Lillie Suburban News-Advertisement $115.64 Project Description: Expenditures Demolition $9,156.00 Total Sump Pump/Misc. $246.64 WSB-Engineering Services $105,868.05 Taxes $839.61 Bettendorf Rohrer $30,075.00 Legal Services-Dorsey&Whitney $225.00 1999 Street Improvement Project Second Nature Lawn $270,873.76 Check for Asbestos-Abatement Services $365.00 Project Description: Residential Easements $432,183.78 Seal&Cap Well $1,450.00 WSB-Engineering Services $176,525.71 Dorsey&Whitney/Legal $32,089.52 Purchase of 2713 St.Anthony Boulevard $147,676.13 Springsted,Inc.-Bond Services $8,835.85 STS Consultants $3,235.00 Demolition $11,258.00 'Northdale Construction $928,231.18 Evergreen Land Services $19,519.66 Legal Services-Attorney Fees for Seller $6,845.00 Treemendous $460.00 Construction Bulliten $358.48 Recording Deed/Taxes $2,506.98 Chris Addington $503.22 Albrecht,Inc. $20,215.22 Title Insurance $946.00 Dorsey&Whitney $2,911.55 Comdemnation Commissioners $8,455.10 Seal&Cap Well $1,420.00 Bond Issuance Expense $10,875.28 Old Republic-Abstract Fees $2,330.00 Purchase of 2809-30th Avenue NE $108,067.10 Total 1999 Street Project $1,128,342.79 Total Harding Street Holding Ponds $925,223.57 Purchase of 2700/2704-Pahl Avenue $301,411.45 Purchase of 2713-Pahl Avenue $208,072.00 2000 Street Improvement Project Silver Point Park/Construction Purchase of 4029 Shamrock $261,899.52 Project Description: Project Description: First American Title Project WSB-Engineering Services $314,960.93 Richard Knutson,Inc, $1,466,031.72 Forsythe Appraisals/Kozarek $350.00 Barbarossa&Sons,Inc. $2,293,303.47 Sandness Construction $35,524.00 Evergreen Land Services $3,369.47 Barbarossa&Sons,Inc.-Settlement of Dispute $66,067.84 Thompson Homes,Inc. $9,832.50 Total Purchase of Homes $1,201,416.16 E-CEL Energy $155,100.00 Muska Electric $40,730.80 Buchan Environmental Services $2,248.99 Construction Bulletin Pahl Avenue Pending: $160.89 Berkley Risk Services $10,000.00 SEH,Inc.-Silver Point Park Building $25,700.00 Project Description: Berkley Insurance Company $312.78 WSB,Inc.-Silver Point Park Building $1,324.00 WSB-Engineering Services $20,967.16 SL Paul Companies $16,884.96 Twin City Hydra Seeding $1,298,40 G&L Construction $69,998.42 Lillie Suburan Newspaper/Construction Bulletin $232.93 Romtec $6,500.00 Treemendous $14,460.90 Albrecht,Inc. $891.75 Trillium Park $10.183.10 Pipe Services $3,859.20 Fabyanske&Westra-Legal Cost/Litigation $44,390.49 Total Silver Point Park $1,597,285.21 Crown Fence&Wire $370.00 Bond Issuance Expense $39,143.23 Construction Bullilen $1,432.20 Total 2000 Street Project $2,943,537.37 Lillie Suburban News-Advertisement $220.69 Total Pahl Avenue Pending $111,308.57 CITY OF ST. ANTHONY HOUSING AND REDEVELOPMENT AUTHORITY AGENDA May 13, 2003 Call to Order Roll Call I. Approval of May 13, 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 April 22, 2003 H.R.A. Minutes. (p. 1) B. Claims. (p. 2) III. General Policy Business of the H.R.A. A. Resolution HRA 03-007, re: Lease purchase revenue bonds for the public facilities upgrade. Jim Prosser, Ehler's & Associates, will be present. Action requested. (pp. 3-10) IV. Staff Reports. V. H.R.A. Commissioner Comments. VI. Information and Announcements. VII. Adjournment. Il 1 CITY OF ST. ANTHONY 2 3 HOUSING AND REDEVELOPMENT AUTHORITY MEETING 4 5 April 22, 2003 6 7 CALL TO ORDER 8 Chair Hodson called the meeting to order at 8:58 p.m. 9 10 ROLL CALL. 11 Commissioners present: Chair Hodson; Commissioners Sparks, Thuesen,Horst, and Faust. 12 Commissioners absent: None. 13 Also present: Executive Director Michael Mornson 14 15 I. APPROVAL OF APRIL 22, 2003 H.R.A. AGENDA. 16 Motion by Commissioner Faust to approve the April 22, 2003 Housing and Redevelopment 17 Authority Agenda as presented. 18 19 Motion carried unanimouslv. 20 21 II. CONSENT AGENDA. 22 Motion by Chair Hodson to approve the Consent Agenda, which consisted of- 23 24 A. H.R.A. Meeting Minutes of April 8 2003• and 25 B. Claims. 26 27 Motion carried unanimously, 28 29 IH. GENERAL POLICY BUSINESS OF THE H.R.A. 30 None. 31 32 IV. STAFF REPORTS. 33 None. 34 35 V. H.R.A. COMMISSIONER COMMENTS. 36 None. 37 38 VI. INFORMATION AND ANNOUNCEMENTS. 39 None. 40 41 VII. ADJOURNMENT. 42 Motion by Chair Hodson to adjourn the meeting at 9:00 p.m. 43 44 Motion carried unanimously. 45 Respectfully submitted, 46 47 Sandra Miller 48 Timesaver Off Site Secretarial, Inc. Following is a Verified Claims list for May 13,2003: 1. Dorsey&Whitney.......................................................................$1,483.00 Apache Redevelopment-Legal 2. Forsythe Appraisals,Inc.. ...........:...................................................$650.00 Appraisal-3101 Silver Lake Road 3. Forsythe Appraisals,Inc.. ...............................................................$650.00 Appraisal-3105 Silver Lake Road 4. Ramsey County Treasurer............................................................$1,906.00 Property Taxes—4029 Shamrock Drive 5. Springsted,Inc................................................................................$445.00 Continuing Disclosure/Tax Increment Bonds 1996A 6. Tracey Printing,Inc......................................................................$1,434.25 Public Facilities Study Resolution No.HRA 03-007 - Commissioner introduced the following resolution and moved its adoption: Resolution Providing for the Sale of Public Facilities Lease Revenue Bonds A. WHEREAS, the Housing and Redevelopment Authority of the City of St. Anthony, Minnesota (the "HRA"), has heretofore determined that it is necessary and expedient to issue Public Facilities Lease Revenue Bonds(the 'Bonds"), to finance construction of Public Works and Fire Station facilities in the City; and B. WHEREAS, the HRA has retained Ehlers & Associates, Inc., in Roseville, Minnesota ("Ehlers"), as its independent financial advisor for the Bonds and is therefore authorized to solicit proposals in accordance with Minnesota Statutes, Section 475.60, Subdivision 2(9); NOW,THEREFORE,BE IT RESOLVED by the HRA of the City of St. Anthony, as follows: I. Authorization, Findings. The Board of Commissioners hereby authorizes Ehlers to solicit proposals for the sale of the Bonds. 2. Meeting, Proposal Opening. The Board shall meet at on , for the purpose of considering sealed proposals for and awarding the sale of the Bonds. 3. Official Statement. In connection with said sale, the officers or employees of the City are hereby authorized to cooperate with Ehlers and participate in the preparation of an official statement for the Bonds and to execute and deliver it on behalf of the HRA upon its completion. The motion for the adoption of the foregoing resolution was duly seconded by Commissioner and, after full discussion thereof and upon a vote being taken thereon, the following Commissioners voted in favor thereof. and the following voted against the same: Whereupon said resolution was declared duly passed and adopted. Dated this day of ,2003. Executive Director St. Anthony Public Facilities Funding EHLE & ASSOCIATES INC 0 To: Mike Mornson, St. Anthony Village From: Jim Prosser&Mark Ruff, Ehlers & Associates LU Date: May 4,2003 Subject: Public Facilities Financing Updated Information You have requested Ehlers update the April 24 memo regarding public facilities financing to include impact of the decertification of the Kenzie District for 2004. This decertification could be accomplished since outstanding bond obligations will be paid as of 2003. The Public Facilities Task Force is currently preparing a final report regarding the Public Works and Fire Station Facilities. The final report will include recommendations regarding facilities need, location, cost and financing method. Ehlers&Associates has been requested to provide additional information regarding the financing options and impacts. The purpose of this memo is to provide background information prior to the scheduled presentation and discussion of the Task Force report. Financing Options The two basic financing options for public facilities include voter approved General Obligation Bonds and Lease Revenue bonds. The primary differences between the bonds include: 1) Authorization 2) Tax burden and basis of debt repayment 3) Security to bond holders 4) Interest cost and costs of issuance Lease Revenue Bonds do not require voter approval. These bonds are similar in that manner to revenue bonds issued by cities for street and utility construction. Some cities use revenue bonds for these types of facilities because of their essential nature. The bonds are issued by the HRA; the HRA then owns and leases the facilities to the City. The lease payments to the HRA are used to cover the debt service. Because the bonds are not secured by the full faith and credit of the City, they are sold at a slightly higher interest rate than General Obligation bonds. Current market conditions indicate that the interest rate on Lease Revenue bonds would carry an interest rate about .35%higher than General Obligation bonds. For a project with an estimated cost of$6 million the additional interest cost would average about $15,000 annually or$300,000 for the 20 year term of the bonds. Page I of S St. Anthony Public Facilities Funding The other major difference between the bonds is that debt service for voter approved General Obligation bonds is distributed on the basis of market value of taxable property. Lease Revenue bonds debt service is distributed on the basis of tax capacity. Because of the current tax structure, this means that commercial properties would pay slightly more than residential property for Lease Revenue Bonds. Independent of these technical issues, the most significant difference between the lease revenue and voter approved general obligation is the public expectation of the need to vote on expenditures of this nature. Elected officials must carefully assess the evaluation of"political risk" of financing facilities with lease revenue when there is community expectation for voter approval. Impacts Estimated impacts for property owners are shown in the tables below. The values used to generate the tax impacts are the actual pay 2003 tax capacities. Table I The example below shows the impact on a$200,000 residence. Lease Lease G.O. Revenue G. O. Revenue $5 million $5 million $1 million $1 million Market Value $200,000 $200,000 $200,000 $200,000 Tax capacity 2,000 2,000 2,000 2,000 City tax rate-actual 2003 .461039 .461039 .461039 .461039 Property taxes $922.00 $922.00 $922.00 $922.00 Debt levy-proposed issue only $171.00 $180.00 $35.00 $37.00 Total taxes-before decertification $1,093.00 $1,102.00 $957.00 $959.00 Impact of decerti Kenzie TIF District 69.00 71.00 88.00 62.00 Total taxes-after decertification $1,024.00 $1,031.00 $869.00 897.00 Net change in taxes due to bond issue if district is decertified 102.00 109.00 (53.00) The table above is the estimated taxes on a residential property for the city portion only and does not include other taxing jurisdictions or any applicable credits. Page 2 of 5 St. Anthony Public Facilities Funding The table above also shows the property tax impact if the Kenzie TIF District was decertified for taxes payable 2004 and the captured tax capacity was returned to the general property tax rolls. Table H The following shows the impact on a $500,000 commercial property. Lease Lease G.O. Revenue G. O. Revenue $5 million $5 million $1 million $1 million Market Value $500,000 $500,000 $500,000 $500,000 Tax capacity 9,250 9,250 9,250 9,250 City tax rate-actual 2003 .461039 .461039 .461039 .461039 Property taxes $4,265.00 $4,265.00 $4,265.00 $4,265.00 Debt levy-proposed issue only .$428.00 $824.00 . $89.00 $173.00 Total taxes-before decertification $4,693.00 $5,089.00 $4,354.00 $4,438.00 Impact of decertifying Kenzie TIF District 301.00 321.00 282.00 288.00 Total taxes-after decertification $4,392.00 $4,768.00 $4,072.00 $4,150.00 Net change in taxes due to bond issue if district is decertified 127.00 503.00 193.00 115.00 The table above is the estimated taxes on a commercial property for the city portion of taxes only and does not include other taxing jurisdictions or adjustments for fiscal disparities. The table above also shows the property tax impact if the Kenzie TIF District was decertified for taxes payable 2004 and the captured tax capacity was returned to the general property tax rolls The decrease in the city property tax rate is due to the return of the additional taxable tax capacity value of the Tax Increment Financing District to the general property tax rolls. It is important to note that the differences between voter approved general obligation and lease revenue bonds for properties within tax increment districts. The debt service levy for payment of voter approved general obligation bonds are collected from properties within a tax increment district and is used to make debt service payments. The debt service levy for payment of lease revenue bonds are also collected from tax increment districts, however those funds will most likely be captured increment and not available for debt service payments. Page 3 of 5 St. Anthony Public Facilities Funding Other Issues Pending legislation does impact financing options under consideration for these projects. Legislation, as proposed, will not permit cities to increase their tax rate to pay debt service for projects of this nature. One version of this restriction would be in effect for two years, the other version contains an indefinite limitation. There are exceptions to the bill including projects for which contracts have been let for all or part of the project prior to April 30, 2003. The City's contract with Krause Anderson permits the City to proceed with this project if bonds are sold prior to June 1, 2003. In order to sell bonds prior to June 1, the City would need to authorize the sale no later than May 13, 2003. It is highly likely that final legislation regarding issuance of debt will be different than the current bills. It is possible that there will be no new limitations regarding debt issuance. However, at this time it is not very clear what, if any new limits will be in effect in the future. The fact that proposed legislation impacts current city actions is unusual. Since the proposed legislation is essentially "retroactive"bond counsel is required to disclose the impact of that the proposed legislation would have on the ability of the city to repay debt if the legislation were approved. Decision Options Financing options for the Public Works and Fire Station are currently impacted by pending legislation. The final form of the legislation may or may not impact options for financing these facilities. Unfortunately, the final form of legislation will not be known until it is too late for the City to act on an option that would permit financing under current conditions. Financing major projects such as those under consideration by your city requires careful evaluation of a number of factors including need, alternatives, cost and financing method. Given these issues the following options are provided for consideration: Option Discussion Authorize 1. If proposed legislation is approved, referendum would need to be Referendum conducted prior to December 31, 2003. 2. The Public Facilities Study Group has made significant efforts to involve the public in the study of the public facilities efforts. 3. If referendum is unsuccessful it would be difficult to consider other options to finance facility needs. 4. Some communities consider public works and fire stations essential facilities and use lease revenue bonds to finance in a similar manner as other essential facilities. 5. General obligation bonds will be sold at a slightly lower interest rate Page 4 of 5 St. Anthony Public Facilities Funding (about .35%)than lease revenue bonds. 6. Authorization could be a referendum on one of the facilities only. Authorize 1. Bonds would need to be sold prior to June 1, 2003 or wait outcome of Lease legislative session which may or may not impact ability to sell bonds Revenue after June 1, 2003. Bonds 2. Residents may expect the opportunity to vote for major capital projects. Failure to provide that opportunity may have negative political impacts. 3. This option provides the opportunity to meet facility needs. Wait until 1. New legislation may impact ability to finance facility needs. after 2. May be able to utilize other financing techniques, pending the legislative outcome of the session and bond council review, such as G.O. Water session. and Sewer Bonds, and/or Capital Improvement Bonds. Defer 1. Provides opportunity to consider additional options. projects indefmitel . Page 5 of 5 I CITY OF ST. ANTHONY VILLAGE, MINNESOTA HOUSING AND REDEVELOPMENT AGENCY PRE-SALE REPORT IVMAY 13, 2003 Proposed Issue: Public Facilities Lease Revenue Bonds Purpose: Finance construction of Public Works and Fire Station facilities Description: St.Anthony Village is considering the funding for construction of a Public Works and Fire Station. No decision has been made to date on the certainty of funding this project or the amount. The City has requested that this item be placed on an agenda to discuss potential funding for the project.Lease Revenue Bonds are a permitted funding source for this type of project. This funding permits the City HRA to issue bonds to construct public facilities. The facilities are then leased to the City. At the end of the term of the lease the property can be sold to the City for a nominal sum. These bonds do not require voter approval. Term/Call Feature: These bonds would be issued with a 20 year term, callable in 2013 for bonds maturing in 2014 and thereafter. Funding Sources: These bonds would be supported by a debt service tax levied against the tax capacity of property within the City. Discussion Issues: The basic issues to be discussed include whether the project should be funded, the amount of funding to be approved for the project and the amount of bonds to be issued.. Schedule: Pre-Sale Review: May 13, 2003 Distribute Official Statement:May May 15,2003 Conference with Rating Agency: Week of May 19, 2003 Bond Sale: May 28 or 29, 2003 Estimated Closing Date: TBD Attachments: Prepared by Ehlers & Associates, Inc. 1® Sources and Uses of Funds Proposed Debt Service Schedule Bond Buyer Index Resolution authorizing Ehlers to proceed with bond sale Ehlers Contacts: Financial Advisors: Jim Prosser,Mark Ruff Bond Analysts: Diana Lockard(651) 697-8534 Debbie Holmes (651) 697-8536 Bond Sale Connie Kuck(651) 697-8527 Coordinator: The Official Statement for this financing will be mailed to the Council Members at their home address for review prior to the sale date. �a Prepared by Ehlers & Associates, Inc. Apache Plaza Redevelopment 0413012003 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 $401.454.10 0413012003 Cost to HRA ($90,611.19) Dahlgren Shardlow Ehlers&Associates WSB 8 Associates Trac Printin JMS Communications Northfield Lines SEH/RCM Goodwin Comm Dorsey&Whitney LBH Enainners $7,402.72 $210,00 $2,714,60 $1,391-,00 $99000 $808.00 $455.87 $1,615.00 $2,062.50 $592.03 $3,337.91 $1'',5D5A0 $954;50, $1,450.0D $1,926 00., $72 00 $1,743.93 $570.00 $7,002,68 $935,50 $954.50 $1,0897 0 $20B0:00 $468.00 $2,199.80 $1,140.00 $15,138"88 $455A0 $942.00 $474,20 $2,260.00 $848.00 $95.00 $32,762;90 $82,00 $262,80 $1,098,70 $1,320.00 $570.00 $25,780.22 $1,662.90 $860.00 $1,08810 $770.00 $190.00 $10,603.04 ' $2,911,73 $4,061,00 $1,098.70 $9,355.00 $1,425.00 $'5,66.0 $1,920:55' $5;611,93 $1,168,60 $1,045.00 $1.003.06 $3,450,00 $1:0,456,70 $245.13 $1,995.00 $1,118$9 $5,100.00 _ _ $10456.00 $474.20 1,330.00$3 1,118.21 $3,187:50 $498.50 $1,141.12 $9,975.00 $5,733,98' $2,787,50 $658.00 $1,261.15 $1,490.12 6471.77 $1,091.00 $1,434.25 $560.13 $2,662.50 $508.50 $13,434.45 $1,774.75 $3,750.00 $94.00 $2,567.32 $4,717.50 $188.00 $3,754.23 $3,653.50 $106.00 1503.00 $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 $89,983.62 $552.29 $1,785.63 $232,461.47 Shaded Area Represents Before Pratt-Ordway Agreement Pratt-Ordway $117,922.48 Less: Expenditures ($138,909.95) Retainage Balance ($20,987.47)