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HomeMy WebLinkAboutCC PACKET 06082004 Meeting Sheet IIIIII VIII VIII VIII VIII VIII IIII IIII 102938 Box: 29 Folder: CC PACKETS 2001-2004 Document: CC PACKET 06082004 H.R.A. IMMEDIATELY FOLLOWING REGULAR COUNCIL MEETING CITY OF ST. ANTHONY Our Mission is to be progressive and livable community, a walkable village, which is safe and secure. CITY COUNCIL MEETING AGENDA June 8, 2004 7:00 PM Council Chambers Call to Order. Pledge of Allegiance. Roll Call. Consideration, Discussion, and Possible Action on All of the following items: I. Approval of the June 8, 2004,.City Council Meeting Agenda. (Action requested.) II. Proclamations and Recognitions. III. Consent Agenda. These items are considered routine and will.be enacted by one motion. There will be no separate discussion of these items unless a Councilmember or citizen so requests, in which event the item will be removed from the Consent Agenda and placed elsewhere on the agenda. 1. Approve May 25, 2004, Regular Council Meeting minutes. 2. Licenses and Permits. 3. Claims. IV. Public Hearings. V. Reports from Commissions and Staff. VI. General Policy Business of the Council. 1. Resolution 04-046 - Approving a policy on Tax Exempt Financing, S. Kvilvang, Ehlers & Associates, presenting. (action requested) (pp. 15-16) 2. Resolution 04-047 - Approving Fannie Mae Financing for Silver Lake Village — S. Kvilvang, Ehlers & Associates, presenting. (action requested) (pp.17-21) 3. Ordinance 2004-002; re: Charitable Gambling. 3rd Reading. (action requested) (pp.22 29) - 4. Ordinance 2004-003; re: Peddlers, Solicitors, and Transient Merchants. 2nd Reading. (action requested) (pp.30-37) VII. Reports From City Manager and Councilmembers. VIII. Community Forum. Individuals may address the City Council about any item no included on the regular agenda. Speakers are requested to come to the podium, sign their name and address on the form at the podium, state their name and address for the Clerk's record, and limit their remarks to five minutes. Generally, the City Council will not take official action on items discussed at this time, but may typically refer the matter to staff for a future report or direct the matter to be scheduled on an upcoming agenda. IX. Information and Announcements. X. Miscellaneous Informational Documents. XI. Adjournment. 1 CITY OF ST. ANTHONY 01 2 3 CITY COUNCIL REGULAR MEETING MINUTES 4 5 MAY 25, 2004 6 7 CALL TO ORDER. 8 Mayor Hodson called the meeting to order at 7:01 p.m. 9 10 PLEDGE OF ALLEGIANCE. 11 Mayor Hodson invited the Council and audience to join him in the Pledge of Allegiance. 12 13 ROLL CALL. 14 Present: Mayor Hodson;.Councilmembers Stille, Thuesen and Faust. 15 Absent: Councilmember Horst. 16 Also Present: City Manager Mike Morrison. 17 18 CONSIDERATION, DISCUSSION, AND POSSIBLE ACTION ON ALL OF THE FOLLOWING 19 ITEMS. 20 21 I. APPROVAL OF THE MAY 25, 2004, CITY COUNCIL MEETING AGENDA. 22 Motion by Councilmember Faust, seconded by Councilmember Stille, to approve the City 23 Council Meeting Agenda of May 25, 2004. 24 25 Motion carried unanimously. 26 27 II. PROCLAMATIONS AND RECOGNITIONS. 28 None. 29 30 III. CONSENT AGENDA. 31 A. Approve May 11, 2004, regular Council meeting minutes. 32 B. Consider licenses and permits. 33 C. Consider payment of claims. 34 D. Resolution 04-042; re: City's insurance renewal. 35 E. Resolution 04-043, re: 2004 Hennepin County Recycling Agreement. 36 37 Motion by Councilmember Faust, seconded by Councilmember Thuesen, to approve the Consent 38 Agenda. 39 40 Motion carried unanimously. 41 42 IV. PUBLIC HEARINGS. 43 None. 44 45 It was decided to move"Reports to Commissions"to item VI and "General Policy Business of 46 the Council"to Item V, as Planning Commission Vice Chair Todd Hanson had not yet arrived. 47 Councilmember Thuesen noted.he had also attended the Planning Commission meeting and 48 could give a report if needed. 49 City Council Regular Meeting Minutes o2 May 25, 2004 Page 2 1 V. GENERAL POLICY BUSINESS OF THE COUNCIL. 2 A. Ordinance 2004-002; re: Charitable g ambling (2nd reading) 3 City Manager Morrison noted he requested that City Attorney Gilligan prepare an amendment to 4 the City's charitable gambling ordinance based on the fact that the current ordinance allowed 5 charitable gambling to on-sale municipals only. He explained, with the closing of Stonehouse, 6 the City no longer owned an on-sale and, with Spectators located in the old Stonehouse location, 7 he felt it was important to get the ordinance changed prior to the opening of the restaurant. He 8 added he passed on the ordinance to some of the Sports Boosters with whom he had been 9 working regarding the charitable gambling license for Spectators. 10 11 Mr. Mornson cited a May 19, 2004, memo from Mr. Gilligan to the City that addressed questions 12 and concerns Council had introduced at the first reading on May 11, 2004. He discussed the 13 following information, which resulted from research conducted by Mr. Gilligan: 14 15 Under Minnesota Statutes, Section 349.213, the City had authority to adopt more stringent 16 regulation of lawful gambling than provided by Minnesota law, including the prohibition of 17 lawful gambling. The City could not require that an organization licensed by the Minnesota 18 Gambling Control Board obtain a license or permit from the City as a condition for it to conduct 19 charitable gambling in the City; however,before issuing a permit premises allowing lawful 20 gambling at a location in the City, Minnesota law required that the Board notify the City Council 21 and the City Council must approve the issuance of the premises permit by resolution. 22 23 The Minnesota Attorney General opined that under this authority the City could regulate the 24 following with respect to lawful gambling in its jurisdiction: 25 ■ Determine what kind of lawful gambling could take place. 26 ■ Specify hours of operation. 27 ■ Specify where it could and could not occur. 28 ■ Limit the number of sites where it would be allowed. 29 ■ Prohibit lawful gambling altogether. 30 31 While Minnesota law required the approval of the City Council before the Gambling Control 32 Board could issue a premises permit for a licensed organization to conduct gambling in the City, 33 the statute did not offer any guidance with respect to reasons the City Council might disapprove 34 an organization's application. If it wished to do so, the City Council could develop criteria on 35 which to base its decision; however, this criteria should probably not limit approval to only 36 locally based organizations, as the Minnesota Attorney General had opined that a city limiting 37 approval of lawful gambling to only locally based organizations might be a possible violation of 38 the equal protection clause of the Minnesota and United States Constitution. 39 40 While the City might not be able to adopt an ordinance that would limit charitable gambling in 41 the City to only locally based organizations, Mr. Gilligan believed the City could include in its 42 ordinance on charitable gambling a provision that provided that charitable gambling was limited 43 to only one location in the City and that permitted only one licensed organization to conduct 44 charitable gambling at that location. By doing so,the City might be able to effectively retain 45 control regarding which licensed organizations conducted charitable gambling in the City. If, in City Council Regular Meeting Minutes May 25, 2004 03 Page 3 1 the future, the Council wished to expand the number of locations where charitable gambling 2 might be conducted, it could then amend the ordinance. 3 4 As Mr. Gilligan previously advised Council, the City might, by ordinance, require a licensed 5 organization conducting lawful gambling in the City to expend within the City's trade area all or 6 a portion of its expenditure for lawful purposes of its gross profits. The ordinance must define 7 the City's trade area and specify the percentage of lawful purposes expenditure to be expended 8 within the trade area. The City's trade area must include, at a minimum, each city contiguous to 9 St. Anthony Village. Should Council wish to require an organization to make all or a portion of 10 its expenditures within the City's trade area, Mr. Gilligan provided proposed new Section 535.03 11 of the City Code, which could be included in Ordinance 2004-002. The proposed new section 12 read as follows: 13 14 "Section 535.03. Expenditure by Licensed Organization Conducting Lawful Gambling. Each 15 licensed organization conducting lawful gambling within the City must expend percent of its 16 lawful purpose expenditures on lawful purposes conducted or located within the trade area of the 17 City. The trade area of the City for this purpose shall include the City and all cities contiguous to 18 the City. This section applies only to lawful purpose expenditures of gross profits derived from 19 lawful gambling conducted on a premises within the City. At the end of each licensed 20 organization's fiscal year, each organization must file with the City a report prepared by an 21 independent certified public accountant documenting compliance with the requirements of this 22 section." 23 24 Mr. Momson stated he recommended Council approve the charitable gambling ordinance. 25 26 Motion by Councilmember Faust, seconded by Councilmember Thuesen, to adopt Ordinance 27 2004-002 (2 d reading)relating to lawful gambling; amending Section 500 of the St. Anthony 28 City Code. 29 30 Discussion: 31 32 Councilmember Stille asked if the ordinance should be given"more teeth"regarding the trade 33 area and expenditure language. He indicated the law stated the trade area had to include 34 contiguous cities, at a minimum, which would give the ordinance as much structure as possible 35 under the law. He asked if the alternative language suggested by Mr. Gilligan should be 36 included in the third reading. 37 38 Mr. Momson asked if Councilmember Stille meant adding a specific percentage to the 39 ordinance. Councilmember Stille replied he did. 40 41 Mr. Morrison explained Council could do that; however, he did not want to "cut off the hands"of 42 the current organizations, as he was not sure if they funded areas outside of the trade area. He 43 noted joint cooperative efforts had been in effect with Spring Lake Park schools for wrestling, 44 along with other activities. He added he was not sure if a specific percentage should be 45 considered at this time. 46 City Council Regular Meeting Minutes May 25, 2004 04 Page 4 1 Councilmember Stille indicated he was concerned about other organizations trying to use 2 loopholes to come into the City and possibly undermining the operation. 3 4 Mr. Mornson suggested Council could limit the number of sites to one, along with dictating the 5 location of the site, which would give the City total control. 6 7 Councilmember Thuesen noted Spring Lake Park was not part of the trade area;therefore,he 8 would have concerns regarding the current shared supports with the City of Springlake Park if 9 the trade area language was tightened. He indicated there might be opportunities for St. Anthony 10 Village residents who participated in sports outside of the City's boundaries to benefit from some 11 of those monies. Discussion followed. 12 13 Mayor Hodson stated he was not in favor of modifying the current language, as the ability to 14 make modifications to the ordinance would be available in the future. 15 16 Councilmember Faust stated he was inclined to support limiting the number of sites to one and 17 that site would be the old Stonehouse location, as it was known that Spectators would be the 18 tenant. He added Council could always reverse its decision. 19 20 Councilmember Thuesen indicated he agreed with Councilmember Faust, as limiting the number 21 of sites to one would give the City more control. 22 23 Councilmember Faust suggested Section 3 be added to the ordinance, stating the number of sites 24 be limited to one, which would be,the proposed Spectators Sports Bar. He noted the amended 25 ordinance could be adopted during the third reading at the next meeting. Council agreed. 26 27 Motion carried unanimously. 28 29 B. Ordinance 2004-003: re: Peddlers solicitors and transient merchants (1St reading) 30 City Manager Mornson noted Police Captain Ohl indicated the City was completing 31 computerized criminal checks on peddlers, solicitors and transient merchants without the proper 32 language in the City ordinance. He stated highlighted changes were provided for Council 33 review, adding the Police Department had reviewed the changes and was recommending an 34 amendment to the ordinance. He explained the City would then have the authority to conduct the 35 needed criminal checks, as currently the Bureau of Criminal Apprehension was refusing to do 36 them. 37 38 Motion by Councilmember Thuesen, seconded by Councilmember Stille, to adopt Ordinance 39 2004-003 (1St reading) relating to peddlers, solicitors and transient merchants; amending Section 40 1130 of the St. Anthony City Code. 41 42 Motion carried unanimously. 43 44 C. Resolution 04-044; re: 2004 police contract. 45 City Manager Mornson noted the City had reached an agreement with the Police Union. He 46 provided the following overview of the crucial points: City Council Regular Meeting Minutes O� May 25, 2004 Page 5 1 N The duration of the contract was one year, which would expire December 31, 2004. He 2 explained this was a change from previous years, as well as from the other two 3 bargaining units. 4 ■ The police officers would have a 3% increase starting July 1, 2004, which equaled a 1.5% 5 increase. He indicated this was the increase for which the other two unions settled. 6 ■ The City's portion of health insurance would increase $30 for family coverage. He stated 7 this would be retroactive to January 1, 2004, and added this was the same as the 8 settlement with the other two unions. 9 Personal leave would be capped at 1,200 hours for new hires, effective January 1, 2004, 10 which was the same as the other two unions. 11 12 Mr. Mornson stated the Union approved the contract on May 14, 2004. He provided a copy of 13 the Agreement for Council review. 14 15 Motion by Councilmember Faust, seconded by Councilmember Stille, to adopt Resolution 04- 16 044 ratifying the 2004 Agreement between the Law Enforcement Labor Services, Inc., 17 representing the St. Anthony Police Department licensed employees, and the City of St. 18 Anthony. 19 20 Discussion: 21 22 Councilmember Faust stated he was at a meeting the previous week and received a compliment 23 from a Lauderdale Councilmember regarding the City's Police Department. He stated it was 24 said the City of Lauderdale thought of the Police Department as its department and was very 25 pleased with the services it received. He added the Police Department was an ambassador of the 26 City. 27 28 Mayor Hodson thanked Mr. Mornson for his work with the contracts. He added there was a need 29 for creative solutions regarding the continual'increase in healthcare costs. 30 31 Motion carried unanimously. 32 33 D. Introduction of Deb Wilkinson, Councilmember from Zumbrota 34 It was noted that Zumbrota Councilmember Wilkinson and Councilmember Faust were taking 35 part in the League of Minnesota Cities' "Walking a Mile"program. It was explained that 36 League President and Moorhead Mayor Mark Voxland, dismayed by city-on-city attacks, began 37 thinking about ways to build connections, understanding and unity among cities. It was stated 38 the program was created to promote greater awareness, relationships and understanding among 39 differing cities. 40 41 Councilmember Wilkinson indicated that Zumbrota(population of 3,000) was located in 42 Goodhue County, which was approximately one hour south of the Capitol. She thanked 43 Councilmember Faust and City Manager Mornson for the time they had spent with her. She 44 indicated it was fascinating and rejuvenating to discover what was happening in other 45 communities. She congratulated St. Anthony Village on its "enormous redevelopment." 46 City Council Regular Meeting Minutes May 25, 2004 ®� Page 6 1 Councilmember Wilkinson noted.there were many similarities in the operation of the two cities; 2 however, there were also many differences. She added the City of Zumbrota focused much,of its 3 time on the development of farmland. 4 5 Councilmember Faust explained this program was an attempt to have cities that appear to be 6 dissimilar gain understanding of their many similarities. He noted citizens tend to "live in"their 7 own communities and do not understand that someone living in another city is in the"same 8 kettle of fish." He indicated the two cities had many similar issues; however, the City of 9 Zumbrota had different challenges. 10 11 Councilmember Faust stated he was grateful Councilmember Wilkinson had been able to spend 12 the day in St. Anthony Village and he added he would go to Zumbrota on June 3. He indicated 13 he felt this program would strengthen the State and commented that"we all serve the same 14 constituents;"therefore, it was important the cities worked together. 15 16 VI. REPORTS FROM COMMISSIONS. 17 A. Planning Commission—May 18 2004. 18 1. Variance 04-045, re: Lovelette, for 3201 –32nd Avenue, square footage variance, 19 lot width variance and floor area ratio variance. 20 21 Planning Commission Vice Chair Hanson noted a public hearing was held before the Planning 22 Commission on May 18, 2004, regarding three variances requested by John and Joan Lovelette 23 for the construction of a new home at 3201 –32nd Avenue NE. Council was asked to review the 24 requests. 25 26 Vice Chair Hanson explained the following three variances were requested: 27 1. A square footage variance, as the property was only 8,750 square feet and the City's 28 ordinance required a lot size of 9,000 square feet. 29 2. The current ordinance required a minimum lot width'of 75 feet and this particular 30 property was 50 feet in width. 31 3. A floor area ratio (FAR) variance, as the floor area maximum was 30 percent of the lot 32 or, in this case, 2,625 square feet. The proposed FAR was 2,724 square feet; therefore, 33 the amount of the variance was 99 square feet. 34 35 Vice Chair Hanson indicated, following the public hearing held on May 18, the Planning 36 Commission recommended Council approve said requests, as the following requirements for 37 these variances were met by this request: 38 1. The property could not be put to reasonable use without this variance. The existing house 39 was below standards of the existing ordinance. The proposed home fit into the 40 neighborhood and was not obtrusive. 41 2. Condition predated the owner and the owner did not create the size of the lot. This 42 created a hardship and the property could not be put to use without the variance. 43 3. This was needed to allow the building of the home, as the extra-narrow lot posed ordinary 44 circumstances and was only applicable to this property. 45 City Council Regular Meeting Minutes May 25, 2004 07 Page 7 1 Vice Chair Hanson stated a few neighbors did attend the public hearing and the only concern was 2 a potential runoff issue. He noted Mr. Lovelette was aware of the possible problem and had 3 solved it. 4 5 Mr. Lovelette presented the blueprints of the proposed house, which showed the front elevation, 6 rear elevation and floor plan, along with the Certificate of Survey. He discussed the placement 7 of the house on the lot and also addressed the drainage issue, indicating he did not intend to 8 impede or change anything that would exaggerate the problem. He added he did not want his 9 new home to affect the neighborhood in a negative manner. 10 11 Motion by Councilmember Stille, seconded by Councilmember Faust, to adopt Resolution 04- 12 045 approving the square footage variance, the minimum lot width variance and the floor area 13 ratio as requested by John Lovelette for the property addressed as 3201 —32nd Avenue NE, as 14 recommended by the Planning Commission. 15 16 Discussion: 17 18 Councilmember Stille indicated he thought the Planning Commission did an excellent job 19 regarding the public hearing and variance requests. He stated 50-foot lots were becoming 20 commonplace and asked if the Planning Commission should visit this issue. He thanked Mr. 21 Lovelette for planning a home that would compliment the neighborhood, noting that the current 22 house on the property did not meet the standards cited in the City's ordinance. 23 24 Councilmember Thuesen stated he attended the Planning Commission meeting and was 25 impressed with how the Planning Commission handled and studied this issue. He noted the 26 applicant had worked with the lot and addressed the concerns of the neighbors. He added he 27 believed this home would be a positive addition to the neighborhood. 28 29 Motion carried unanimously. 30 31 VII. REPORTS FROM CITY MANAGER AND COUNCILMEMBERS. 32 City Manager Morrison reported each year the City applied for federal money to purchase 33 bulletproof vests and notice had just been received that a grant for$5,250 was received for the 34 purchase of the vests. 35 36 Mr. Morrison cited the following quarterly report regarding the goals for 2004: 37 1. Implementation of Silver Lake redevelopment. He noted the project was on schedule 38 with a target completion date of October 2007. 39 a. The final PUD for the housing portion and preliminary and final plat for the for- 40 sale housing portion were scheduled for discussion at the June 15, 2004, Planning 41 Commission meeting and the June 22, 2004, Council meeting. 42 b. A policy would be presented at the June 8 or June 22 Council meeting that would 43 allow the City to charge up to I% if a multi-family developer asked the City to 44 issue tax exempt financing, which Dominion was going to do. He noted 45 authorization of the issuance of the bonds would be addressed at the June 22 46 Council meeting, adding the bonds were backed by the full faith and credit of the City Council Regular Meeting Minutes May 25, 2004 08 Page 8 I developer and not by the City. He indicated the I%proceeds could go into the 2 general fund. 3 C. The developer had Purchase Agreements for,the three commercial properties 4 behind Apache Plaza. He explained the.City would apply for Fannie Mae funds, 5 which would help purchase the properties and assist in the relocation of tenants. 6 He indicated Fannie Mae would be repaid either by the developer's fees or with 7 future tax increment, which the City anticipated receiving when the project was 8 completed. 9 2. Improve City's communication plan. 10 a. The new sign behind the Council bench was placed for identification purposes. 11 He indicated the sign was requested by residents, as the City's Council meetings 12 were seen in other cities. 13 b. There was improved signage at one of the City's parks and new signage was 14 being considered for the entrance by 37th and County Road E. 15 C. The Planning Commission was reviewing electronic signage somewhere between 16 the tennis courts and the new fire station. He indicated this item would be before 17 the Planning Commission in June and a public hearing would probably be held in 18 July, as it involved a conditional use permit. 19 d. The entire goal booklet was physically presented to and reviewed with the 20 Planning Commission, the Park Commission and the School Board in March and 21 April meetings. 22 3. Prepare policy to guide decisions regarding installation and funding of lighting, sidewalks 23 and e-fiber during construction of streets. 24 a. An e-fiber analysis for 39`h Avenue was currently being done with WSB. 25 b. Staff was currently working on policy regarding sidewalks and streets, which 26 needed to be upgraded. 27 4. Explore Community Emergency Response Team. 28 a. A grant was prepared and $8,000 was received to help start the program. 29 b. Target date was December 2005. He explained the new Fire Chief needed time to 30 become acquainted with his job and the Fire Department needed to settle into the 31 new fire station; therefore, the program was being put on hold for six months. 32 C. Staff would come before Council with a report regarding how the program would 33 work. He indicated the City could benefit from the experiences of other cities and 34 this program would help with various responses to incidents around the City. 35 d. "Kick-off'tentatively in January or February. 36 5* Complete public facilities implementation consisting of the fire station, public works 37 building and the two liquor stores. 38 a. Open houses for public works building and liquor store were planned for June 24, 39 2004. 40 b. Because of weather difficulties, the liquor store would not be opening on June 1; 41 however, it would be ready for the June 24 open house. The same was true for 42 the public works site. 43 C. Due to complications caused by many easements,the City would probably sign a 44 lease with Amcon for$1 per month for the liquor store until it received the 45 recorded plat. He reviewed the numbers relating to City costs and developer 46 responsibilities, noting the liquor store should open approximately June 10. City Council Regular Meeting Minutes May 25, 2004 09 Page 9 1 d. Opening of the fire station should take place approximately November 1, as work 2 was a few days behind schedule. He added the dedication and fire prevention. 3 awareness would probably be scheduled for the same date. 4 5 Councilmember Stille reported he had recently attended a Kiwanis meeting and was surrounded 6 by City staff. He stated he was impressed to see the community involvement of the City's staff. 7 8 Councilmember Thuesen stated he wished to acknowledge the grant for the bulletproof vests; 9 which was a tremendous achievement during a time of tight funds. He added the pursuit of 10 grants would help the City accomplish what it needed to do. 11 12 Councilmember Thuesen reported he attended the previous week's Planning Commission 13 meeting where a resident involved with an affordable housing group came forward. He indicated 14 he came away,from the meeting resolved to be diligent regarding the City's communications 15 with the public as the project became more finalized, which would help residents better evaluate 16 what was taking place. 17 18 Mayor Hodson thanked Councilmember Faust for the time spent investigating affordable 19 housing opportunities, adding staff was also committed to this issue. He indicated affordable 20 housing was not part of the project in the beginning; however, he believed the affordable housing 21 component was currently approximately 20%. He expressed gratitude for the teamwork shown. 22 23 Councilmember Thuesen noted the affordable housing units involved the same workmanship and- 24 materials as the regular units. He added there was no difference between the affordable housing 25 units and the regular units. Mayor Hodson agreed. 26 27 Councilmember Faust reported he attended a Chamber luncheon the previous week, which was 28 significant because the guest speaker was Jeff Peterson, a fourth grade teacher at Wilshire 29 Elementary. He explained Mr. Peterson was the sixth person to be selected as a teacher to be 30 involved with the Iditarod dog race in Alaska, from which he reported to schools via the internet. 31 He indicated Mr. Peterson was one of the City's local heroes who did not get appropriate 32 recognition and added he also wished to thank the school district and principal at Wilshire 33 Elementary for allowing Mr. Peterson to participate in this event, as he felt it was a benefit to the 34 City's schools and students. He stated he did not know the website that would contain 35 information regarding Mr. Peterson's participation; however, he suggested further information 36 could be obtained by searching "Iditarod." He added the Hennepin County Library Director was 37 going to ask Mr. Peterson to give a presentation. 38 39 Councilmember Faust stated he attended a Mississippi Water Management Board of 40 Commissioners meeting on May 20, noting that was where he received the complimentary 41 comments from the City of Lauderdale regarding the Police Department. He explained the 42 Board was involved with monitoring the health of the Mississippi River. He noted discussions 43 regarding public education related to this topic were held with WSB, as materials put on the 44 streets eventually found their way into the waterways. He added he thought grants would be 45 given toward this problem. 46 City Council Regular Meeting Minutes 10 May 25, 2004 Page 10 1 Councilmember Faust noted Council had approved a Recycling Agreement with Hennepin 2 County under the Consent Agenda. He stated statistics indicated 1,929 households had curbside 3 recycling available; however, an average of only 54% were participating. He explained free-. 4 containers could be acquired at City Hall, adding further information could be obtained at (612) 5 789-8881. 6 7 Mayor Hodson reported he had participated in an excellent meeting at the Center for 8 Transportation Studies regarding future driver behaviors as baby boomers began to age. He 9 indicated some of the discussions related to signage and intelligent transportation devices that 10 could be incorporated into the roadways of cities. He added conversation also took place. 11 regarding ways to relieve traffic congestion, identifying sidewalks and road shoulders that 12 allowed bicycle traffic as one suggestion. 13 14 VIII. COMMUNITY FORUM. 15 No one came forward to address Council. 16 17 IX. INFORMATION AND ANNOUNCEMENTS. 18 None. 19 20 X. MISCELLANEOUS INFORMATIONAL DOCUMENTS. 21 None. 22 23 XI. . ADJOURNMENT. 24 Mayor Hodson adjourned the meeting at 7:59 p.m. 25 26 27 Respectfully submitted, 28 29 30 Marjorie R. Jenkins 31 Timesaver Off Site Secretarial, Inc. 32 33 ' 34 Mayor 35 ATTEST: 36, City Clerk 11 Saint Anthony Village DATE: June 8, 2004 Approved: TO: Mayor and Councilmembers FROM: Judy Monson, License Clerk ITEM: License and Permits for Approval: General Contractors License: United Operations Inc., Plymouth, MN Multi-Dwelling License: Walker on Kenzie, 2626 Kenzie Terrace Lakehill Apartments, 3804 Highcrest Road Equinox apartments, 2808 Silver Lane NE Apache Manor, 3817 Macalaster Drive Diamond 8 Terrace Apartments, 3200 Diamond 8 Terrace Heating Contractors License: Albers Mechanical Contractors, Inc., St. Paul, MN Fore Mechanical, Blaine, MN ACS FINANCIAL SYSTEM ST. ANTHONY VILLAGE 06/02/2004 07: Check Register GL540R-V06.60 PAGE 1 BANK VENDOR CHECK# DATE AMOUNT FIRS BREMER BANK NA 001360 A & C SMALL ENGINE 22652 06/09/04 28.50 008621 ALLIANCE MECHANICAL 22653 06/09/04 290.00 008945 ANCOM COMMUNICATIONS 22654 06/09/04 69.82 008511 AT&T WIRELESS 22655 06/09/04 9.90 009060 BLAINE LOCK & SAFE INC. 22656 06/09/04 341.52 .00001 BLUEMELS TREE SERVICE 22657 06/09/04 3,727.50 007253 BRAKE & EQUIPMENT WAREHO 22658 06/09/04 159.56 008652 CARTRIDGE CARE 22659 06/09/04 359.66 007386 CASTLE INSPECTION SERVIC 22660 06/09/04 10,629.59 000610 CATCO 22661 06/09/04 6.87 000655 CLAREY'S SAFETY EQUIPMEN 22662 06/09/04 530.16 - 008736 CREATIVE FORMS & CONCEPT 22663 06/09/04 2,263.28 007382 CROWN FENCE & WIRE COMPA 22664 06/09/04 411.89 008834 DEMPSEY'S STUMP SERVICE 22665 06/09/04 60.00 000807 DIAMOND VOGEL PAINTS 22666 06/09/04 441.08 000820 DORSEY & WHITNEY 22667 06/09/04 3,519.38 008362 EMBEDDED SYSTEMS, INC. 22668 06/09/04 396.00 008840 ENTRUST IT 22669 06/09/04 720.00 .00005 EVANS/KURT 22670 06/09/04 3.25 008251 FAUST/JERRY 22671 06/09/04 210.25 008461 FORKLIFTS OF MINNESOTA, 22672 06/09/04 420.68 008647 FRATTALLONE'S HARDWARE 22673 06/09/04 88.17 001030 G & K SERVICES INC 22674 06/09/04 465.81 008120 GENERAL OFFICE PRODUCTS 22675 06/09/04 337.61 .00001 GETTER/HARRIET 22676 06/09/04 30.59 .00006 GIESLER/LINDA & DENNIS 22677 06/09/04 3.58 001165 GOODALL RUBBER CO 22678 06/09/04 170.10 001250 GRAINGER INC/W W 22679 06/09/04 481.80 008530 GREENMAN TECHNOLOGIES OF 22680 06/09/04 148.00 001410 HARMON AUTOGLASS 22681 06/09/04 30.00 008252 HOME DEPOT-GECF 22682 06/09/04 525.01 001545 HOOVER WHEEL ALIGNMENT 22683 06/09/04 44.95 008891 INTER-TEL TECHNOLOGIES 22684 06/09/04 2,918.90 _ 007352 KATH FUEL OIL SERVICE 22685 06/09/04 427.07 - 009073 MARCO 22686 06/09/04 2,942.50 008263 MCLEOD USA, INC. 22687 06/09/04 1,731.84 008245 METRO FIRE 22688 06/09/04 77.72 009046 METRO SYSTEMS - 22689 06/09/04 857.96 007835 METROCALL 22690 06/09/04 197.04 002240 METROPOLITAN COUNCIL 22691 06/09/04 28,251.67 005010 MINN CONWAY FIRE & SAFET 22692 06/09/04 342.42 008405 MINNESOTA CHAPTER IAAI 22693 06/09/04 25.00 - 007131 MINNESOTA DEPT OF HEALTH 22694 06/09/04 2,976.00 008269 MINNESOTA SHREDDING LLC 22695 06/09/04 18.00 .00007 OSWALD/PHIL 22696 06/09/04 1.31 008594 PETER13ILT NORTH 22697 06/09/04 45.62 008805 PETTY CASH - BREMER BANK 22698 06/09/04 134.17 .00010 PGI-HRT 22699 06/09/04 1,320.48 ACS FINANCIAL SYSTEM ST. ANTHONY VILLAGE 06/02/2004 07: Check Register GL540R-V06.60 PAGE 2 BANK VENDOR CHECK# DATE AMOUNT FIRS BREMER BANK NA 007057 - PRAXAIR 22700 06/09/04 24.25 .00002 REDWOOD SIGNS 22701 06/09/04 1,166.18 008062 RETAIL SERVICES 22702 06/09/04 23.41 .00008 SLETTEHAUGH/SHARON 22703 06/09/04 14.42 005238 SPECIALTY RADIO SERVICE 22704 06/09/04 2,802.52 009074 SPEEDWAY SUPERAMERICA LL 22705 06/09/04 532.55 003460 SPRING LAKE PARK LUMBER 22706 06/09/04 40.47 005273 TESSMAN SEED INC. 22707 06/09/04 315.50 - 007337 TIMESAVER OFF SITE SBCRE 22708 06%09/04 531.05 00.8907 TOUSLEY FORD 22709 06/09/04 69.36 003560 TRACY PRINTING 22710 06/09/04 243.18 008859 U.S. BANK 22711 06/09/04 250.00 008336 UNITED ELECTRIC COMPANY 22712 06/09/04 12.36 008561 UNITED RENTALS COMPANY 22713 06/09/04 40.94 008270 UNITED STATES POSTAL SER 22714 06/09/04 650.00 008858 VEIT 4 COMPANY 22715 06/09/04 - 4,215.00 008227 VERIZON WIRELESS, BELLEV 22716 06/09/04 290.06 003700 VIKING INDUSTRIAL CENTER 22717 06/09/04 79.85 .00003 VISUAL COMMUNICATIONS 22718 06/09/04 50.00 .00004 WALGREENS #6735 22719 06/09/04 19,839.38 004494 WASTE MANAGEMENT - BLAIN 22720 06/09/04 283.56 009075 WESTSIDE EQUIPMENT 22721 06/09/04 702.79 009047 WHITE BEAR ELECTRIC 22722 06/09/04 860.00 BREMER BANK NA 102,229.04 *+* I a ACS FINANCIAL SYSTEM ST. ANTHONY VILLAGE 06/02/2004 08: Check Register GL540R-V06.60 PAGE 1 BANK VENDOR CHECK# DATE AMOUNT LIQR LIQUOR CHECKING ACCOUNT 009058 AMERICAN BOTTLING COMPAN 23345 06/09/04 51.20 ' 008794 ARCTIC GLACIER INC. 23346 06/09/04 505.08 008511 AT&T WIRELESS 23347 06/09/04 36.16 004293 BELLBOY CORP. 23348 06/09/04 6,563.76 008652 CARTRIDGE CARE 23349 06/09/04 319.93 004080 CHISAGO LAKES DIST. CO., 23350 06/09/04 2,640.45 004095 COCA COLA BOTTLING 23351 06/09/04 832.45 004120 EAGLE WINE CO 23352 06/09/04 891.67 004125 EAST SIDE BEVERAGE CO 23353 06/09/04 18,978.85 004135 ELECTRO WATCHMAN INC 23354 06/09/04 124.61 008697 EXTREME BEVERAGE 23355 06/09/04 600.00 004172 GRAPE BEGINNINGS, INC. 23356 06/09/04 553.00 004175 GRIGGS COOPER & CO INC 23357 06/09/04 4,145.19 004207 HOHENSTEIN'S, INC 23358 06/09/04 315.05 004220 JOHNSON BROTHERS LIQUOR 23359 06/09/04 15,706.30 004230 KUETHER DISTRIBUTING CO 23360 06/09/04 19,185.95 004265 MARK VII SALES INC 23361 06/09/04 14,167.78 008263 MCLEOD USA, INC. 23362 06/09/04 248.86 004354 PAUSTIS 6 SONS 23363 06/09/04 315.99 004360 PHILLIPS WINE 4 SPIRITS 2336406/09/04 7,942.87 004361 PINNACLE DIST. 23365 06/09/04 1,479.32 004376 PRIOR WINE CO 23366 06/09/04 2,589.45 004385 QUALITY WINE CO 23367 06/09/04 4,642.46 008983 SOULO DESIGN, INC 23368 06/09/04 227.50 008859 U.S. BANK 23369 06/09/04 17,718.75 008316 WINE COMPANY/THE 23370 06/09/04 162.70 _ 008310 WINE MERCHANTS INC 23371 06/09/04 321.02 004499 WORLD CLASS WINES, INC. 23372 06/09/04 72.00 003840 ZEP MFG COMPANY 23373 06/09/04 45.45 LIQUOR CHECKING ACCOUNT 121,383.80 *** ACS FINANCIAL SYSTEM ST. ANTHONY VILLAGE 06/02/2004 08: Check Register GL540R-V06.60 PAGE 1 BANK VENDOR CHECK# DATE AMOUNT LIQR LIQUOR CHECKING ACCOUNT - 004086 CITY OF ST. ANTHONY 23374 06/09/04 300.00 008263 MCLEOD USA, INC. 23375 06/09/04 65.28 008787 PROMOTIONAL PAGES, INC. 23376 06/09/04 215.00 - 008888 VALPAK OF MINNEAPOLIS-ST 23377 06/09/04 1,500.00 009076 XCELERATED COMPUTER SOLU 23378 06/09/04 2,616.00 LIQUOR CHECKING ACCOUNT 4,696.28 *** ACS FINANCIAL SYSTEM ST. ANTHONY VILLAGE 06/02/2004 07: Check Register GL540R-V06.60 PAGE 1 BANK VENDOR CHECK# DATE AMOUNT LIQR LIQUOR CHECKING ACCOUNT 004229 LARSON/MICHAEL 23302 05/31/04 349.32 LIQUOR CHECKING ACCOUNT 349.32 *** ' 15 E HLE R & ASSOCIATES INC ® To: St.Anthony City Council and Housing and Redevelopment Authority(HRA) MMike Mornson—City Manager W From: Stacie Kvilvang & Sid Inman—Ehlers and Associates Date: June 2,2004 Subject: Policy on Issuance of Revenue Bonds Dominium has requested that the City and the City's Housing and Redevelopment Authority (HRA) assist them in obtaining private activity revenue bonds from the State of Minnesota for the purposes of developing 260 units of rental housing in the Northwest Quadrant Redevelopment Area. The City and the HRA have assisted both rental housing developments and industrial developments with obtaining these bond funds from the State in the past. However, the City and HRA have never had a formal policy on what type and how much of a fee they would charge for assisting developers in pursuing these types of bonds. After discussions with the City Attorney and City Manager, it is recommended that the City and HRA adopt formal policy charging the following: 1. A one time issuance fee of one(1)percent of the principal amount of the bonds; and 2. The Applicant must pay all expenses of the City and HRA related to the issuance of such revenue bonds, whether or not the revenue bonds are issued Please contact me at 651-697-8506 if you have any questions. LEADERS IN PUBLIC FINANCE 3060 Centre Pointe Drive Phone:651-697-8506 Fax: 651-697-8555 Roseville,MN 55113-1105 skvilvang @ehlers-inc.com 16 RESOLUTION NO. 04- 046 RESOLUTION APPROVING POLICY FOR ISSUANCE OF REVENUE BONDS WHEREAS,the City of St.Anthony is authorized to issue revenue bonds for various entities pursuant to Minnesota Statutes, Chapter 462C and Minnesota Statutes, Sections 469.152 to 469.165; and WHEREAS, a number of cities have developed policies for the issuance of such bonds, which, among other things, impose a fee based upon the principal amount of the revenue bonds issued payable upon the issuance of such revenue bonds; and WHEREAS,the City does not currently have a policy in place for the issuance of such revenue bonds and the City Council believes it is in the best interest of the City to adopt such a policy. NOW, THEREFORE,BE IT RESOLVED by the City Council of the City of St. Anthony,that the following policy shall apply to the issuance by the City of revenue bonds pursuant to Minnesota Statutes, Chapter 462C or Section 469.152 to 469.165: 1. All expenses of the City related to the issuance of such revenue bonds must be paid by the applicant, whether or not the revenue bonds are issued. 2. The City shall be under no obligation to issue any such revenue bonds and reserves the right to decline to issue any such revenue bonds for any reason. 3. An issuance fee of 1%of the original principal amount of the revenue bonds shall be paid to the City upon the issuance of the revenue bonds. 4. The issuance of such revenue bonds must not adversely affect the ability of the City to issue qualified tax-exempt obligations under Section 265(b) of the Internal Revenue Code of 1986, as amended, for City purposes. 5. The City reserves the right to select bond counsel and other consultants or advisors with respect to any revenue bonds, the fees and expenses of which shall be paid by the applicant, whether or not the bonds are issued. Adopted this 8th day of June, 2004. Mayor ATTEST: City Clerk Reviewed for Administration: City Manager a i V E H L E R & ASSOCIATES IN ., 0 To: St.Anthony City Council and Housing and Redevelopment Authority(HRA) Mike Mornson—City Manager cW From: Stacie Kvilvang& Sid Inman—Ehlers and Associates G Date: June 1,2004 Subject: Fannie Mae Loan—Northwest Quadrant Redevelopment Overview On December 19, 2003, the City Council and Housing and Redevelopment Authority (HRA) executed a Development Agreement with Apache Redevelopment LLC for the redevelopment of the above referenced area. According to Section 12.11 of the Development Agreement, the City and/or HRA would be securing an interim loan in the amount of$3,350,000 from Fannie Mae,to assist in acquiring three (3) commercial properties where the for-sale housing would be developed. The City and HRA conditioned the commitment to obtain these funds upon the following: 1. The City had received the Commercial Go Ahead Letter(Received) 2. The City had received the For Sale Housing Go Ahead Letter 3. The housing developer had documentation that they had obtained 20 percent of presales of the units in the first building in Phase 1A(13 units); 4. The Developer is not in default of the Development Agreement The loan, as originally discussed with the City Council and HRA, was going to be paid back through land sale proceeds and a General Obligation TIF bond issued by the City/HRA when the development was completed (within a three year period). Under this loan structure,Fannie Mae requires the City to provide a collateral deposit with them consisting of 25 percent of the loan amount ($837,500). The City was going to utilize its Water Filtration Funds for this deposit requirement (If the City was to "back".the loan with their General Obligation taxing powers, no collateral would be required). In addition, the loan was a full recourse debt to the City and they would need to pledge any assets to repayment of the loan. After review of the loan documents by the City Attorney, it was determined that State Statutes would not allow the City to pledge funds to a loan without it being considered,a General Obligation. Therefore, the loan documents are being redrafted to reflect this. LEADERS IN PUBLIC FINANCE A 3060 Centre Pointe Drive Phone: 651-697-8506 Fax: 651-697-8555 Roseville, MN 55113-1105 skvilvang @ehlers-inc.com 18 St. Anthony City Council and HRA Fannie Mae Loan—Northwest Quadrant Redevelopment June 1,2004 Page 2 Primary Issues to Consider: 1. How is this loan structure different from what was originally proposed? 2. What is the risk to the City/HRA in obtaining these loan funds and providing their General Obligation taxing powers? 3. What are the terms of the loan agreement Analysis of Issues: 1. How is this loan structure different from what was originally proposed? The original loan structure anticipated that the City would borrow the funds,provide the necessary collateral ($837,500 set aside for up to a three year term) and not provide its General Obligation authority up front (less risk). The loan was going to be paid back as land sale proceeds were received and then when the development was finished being constructed and paying taxes, the City/HRA was going to pay off the remaining balance of the loan by utilizing its General Obligation authority and issue a GO TIF bond. The GO TIF bond would then be repaid by tax increment generated by the new development. Under the new structure, the City/HRA would be authorizing utilization of its General Obligation taxing powers up front, which would not require the City/HRA to provide$837,500 in collateral for the loan. This option would provide the City much more flexibility in completing other capital improvement projects as defined by the City Council and HRA since it would not require tying up a large sum of money for a three-year period. The loan will still be repaid as originally anticipated, which is through land sale proceeds and through the issuance of a GO TIF bond when the development is completed. The City/HRA was always intending to pledge its General Obligation taxing powers to repay the debt. The only difference between the two aforementioned loan structures is when the GO would be required, meaning up front (more risk) before the development is constructed or after the development is constructed(less risk). 2. What is the risk to the City/HRA in obtaining these loan funds and providing their General Obligation taxing powers? The risk of obtaining these loan funds needs to be reviewed from two aspects: 1. Actually drawing down the loan funds; and 2. Repayment of the loan if it is drawn down The risk under#1 is minimal since the City/HRA is not required to draw down any funds until the developer has met certain presale and construction financing requirements. If the presale 19 St. Anthony City Council and HRA Fannie Mae Loan—Northwest Quadrant Redevelopment June 1, 2004 Page 3 requirement and proof of construction financing from a lending institution are met, it will provide reassurance to the City and HRA that there is a market for the product the developer is constructing and the corresponding price points they have set. Under#2,the City and HRA were always at risk of repaying the loan if it was drawn upon. Again, the loan was going to be repaid through land sale proceeds and a General Obligation TIF bond when the development was finished being constructed. The City/HRA's only risk would be if the developer for some reason did not move forward with the development after meeting the presale and construction financing requirements or quit constructing the development half way (or at another point) through construction. The likely hood of the developer not moving forward after meeting the presale requirement is low since they have invested considerable dollars in completing architectural drawings and plans for submittal to the City for approval, they have been working on meeting the presale requirement and are nearing finalization of their construction financing. That would leave the scenario in which the developer walks away from the development prior to completing it. To analyze this risk the question that the City and HRA need to answer is: Would the City move forward with acquiring this land for redevelopment if this developer defaults during the construction phase? It is assumed that the answer to that is yes. The City and HRA have committed extensive resources to assure that the Northwest Quadrant Redevelopment Plan would be implemented. If the developer was to "walk away", the City and HRA would have the right to the unfinished project and could select another developer to step in and finish the development, or propose an alternative solution. 3. What are the terms of the loan agreement Following are the loan agreement terms: 1. The loan is a non-revolving loan and the City/HRA can draw the funds down at anytime 2. Loan maturity is 36 months 3. The loan is taxable 4. Loan proceeds 'will be utilized to acquire and demolish property in the Northwest Quadrant Redevelopment Area 5. Loan has a variable interest rate based upon the three (3) month LIBOR (currently 1.26) plus 175 basis points(total of 3.01%). Interest rate is set on day of closing. 6. Interest rate will be reset quarterly on the first day of each calendar quarter (January 1, April 1, July 1 and October 1) 7. Quarterly payments of interest to be paid in arrears on the fist day of each calendar quarter and calculated on an actual/360 basis M 20 St. Anthony City Council and HRA Fannie Mae Loan—Northwest Quadrant Redevelopment June 1,2004 Page 4 8. Prepayment can occur at any time without penalty 9. Full repayment is expected in spring of 2007 when development is finalized. However, the City/HRA can repay at anytime 10. Debt is General Obligation of the City 11. The City/HRA can not utilize any other Fannie Mae funds to repay the loan 12.. All legal fees of Fannie Mae to be paid by the City/HRA at closing (whether the loan closes or not). Legal fees generally are between$2,500 and$5,000 13. City/HRA has to pay origination fee of 100 basis points at closing($33,500) 14. City/HRA is required to submit financial statements annually for Fannie Mae review until the loan is repaid and submit the annual TIF reports required by the State of Minnesota It should be noted that all out of pocket expenses incurred by the City/HRA will be reimbursed by the Developer and/or through Tax Increment(TIF). 21 RESOLUTION NO. 04-047 RESOLUTION AUTHORIZING EXECUTION OF LOAN DOCUMENTS WITH FANNIE MAE FOR$3,350,000 LOAN WHEREAS, pursuant to Minnesota Statutes, Section 469.028 the City of St. Anthony (the "City") is authorized to establish redevelopment projects in order to provide for the redevelopment of the City; and WHEREAS, pursuant to Minnesota Statutes, Section 469.176, the City is authorized to finance the public redevelopment costs of a redevelopment project with tax increment revenues derived from a tax increment financing district established within such Redevelopment Project; and WHEREAS, in connection with the Redevelopment Project, the City prepared and approved a tax increment financing plan creating its Tax Increment Financing District No. 3-5 (the "Tax Increment District); and WHEREAS, on December 19, 2003 the City of St. Anthony and the St. Anthony Housing and Redevelopment Authority (HRA) executed a Development Agreement with Apache Redevelopment LLC (the "Developer") for the redevelopment of the area commonly referred to as the Northwest Quadrant (the "Northwest Quadrant") WHEREAS, according to Section 12.11 of the Development Agreement, the City and HRA agreed to obtain short term financing from Fannie Mae for the purpose of acquiring certain commercial properties, relocating the tenants and demolishing these properties located within the Northwest Quadrant for redevelopment; and WHEREAS, the City of St. Anthony is authorized to obtain these loan funds and issue General Obligation Tax Increment Bonds for purposes of repayment of these loan funds pursuant to Minnesota Statutes, Section 469.178, subdivision 2. NOW,THEREFORE,BE IT RESOLVED by the City Council of the City of St. Anthony as follows: 1. That the City Manager and City Attorney are hereby authorized' to proceed with negotiating the terms of this loan and to prepare necessary documents for execution by the City. Adopted this 8`h day of June,2004. Mayor ATTEST: City Clerk Reviewed for Administration: City Manager 22 REQUEST FOR COUNCIL CONSIDERATION Report Date: May 5, 2004 Meeting Date: June 8, 2004 Agenda Section: VI, 3. (3rd Reading) ITEM DESCRIPTION: Charitable Gambling Ordinance MANAGER'S REVIEW: I have asked Jerry Gilligan, to prepare an amendment to our charitable gambling ordinance based on the fact that our current ordinance allows charitable gambling to on-sale municipals only. With the closing of the Stonehouse, we no longer own an on-sale and with Spectators located where the Stonehouse used to be, I felt it was important to get the ordinance changed prior to the opening of the restaurant. I have scheduled the three readings for the ordinance for May 11th, May 25th, and June 8th. I have also passed the ordinance onto some of the Sports Boosters that I have been working with on the charitable gambling license for Spectators. This is the final reading of this ordinance. We have incorporated all of the suggestions and concerns from previous meetings into this final ordinance. Recommendation: Council Approval of Charitable Gambling Ordinance 04-002. Michael Mornson City Manager 00RsEI 23 DORSEY & WHITNEY LL. MEMORANDUM TO: Mayor and Members of the City Council Michael Morrison, City Manager FROM: Jerome P. Gilligan DATE: June 2, 2004 RE: Charitable Gambling Ordinance At its meeting on May 25th.the City Council gave second recording to an ordinance amending Section 535.02 of the City Code to permit charitable gambling to be included in restaurants in the City holding a liquor license. I understand that the City Council approved a change to the ordinance to limit the charitable gambling to only one location in the City and to provide that only one licensed organization my conduct charitable gambling at that location. I have revised the ordinance with this change. I do not believe that the City Council can specify in the ordinance the particular restaurant location where charitable gambling will be permitted or the organization which may conduct charitable gambling at the site. Therefore, the revised ordinance does not specify the sole restaurant site where charitable gambling may be conducted. F DORSEY&WHITNEY LLF N � ORSEti DORSEY & WHITNEY LU 24 MEMORANDUM TO: Mayor and Members of the City Council Michael Mornson, City Manager FROM: Jerome P. Gilligan DATE: May 19, 2004 RE: Authority of City to Regulate Charitable Gambling At its meeting on May 11th the City Council-gave first recording to an ordinance amending Section 535.02 to permit charitable gambling to be conducted in restaurants in the City holding an on-sale liquor license. At that meeting the Council had various questions concerning the City's authority to regulate this activity. Under Minnesota Statutes, Section 349.213, the City has the authority to adopt more stringent regulation of lawful gambling than provided by Minnesota law, including the prohibition of lawful_gambling. The City may not require that an organization licensed by the Minnesota Gambling Control Board'obtain a license or permit from the City as a condition for it to conduct charitable gambling in the City. However, before issuing a permit premises allowing lawful gambling at a location in the City; Minnesota law requires.the Board to notify the City Council and the City Council must approve the issuance of the premises permit by resolution. The Minnesota Attorney General has opined that under this authority the City can regulate the following with respect to lawful gambling in its jurisdiction: A. Determine what kind of lawful gambling can take place; B. Specify hours of operation; C. Specify where it can and cannot occur; D. Limit the number of sites where it will be allowed; and E. Prohibit lawful gambling altogether. While Minnesota law requires the approval of the City Council before the Gambling Control Board can issue a premises permit for a licensed organization to conduct gambling in the City, the statute does not offer any guidance with respect to reasons that the City Council may disapprove an organization's application. If it wished to do so the City Council could develop criteria on which to base its decision. However, this criteria should probably not limit approval to only locally based organizations as the Minnesota Attorney General has opined that a city limiting approval of lawful gambling to only locally based organizations may be a possible violation of the equal protection clause of the Minnesota and.United States Constitution. While the City may not be able to adopt an ordinance which would limit charitable gambling in the City to only locally based organizations, I believe that the City could include in DORSEY&WHITNEY LLP .. .r 0 0 R S E: 25 its ordinance on charitable gambling a provision that provides.that charitable gambling is limited to only one location in the City and that only one licensed organization is permitted to conduct charitable gambling at that location. By doing so the City may be able to effectively retain control of which licensed organizations conduct charitable gambling in the City. If in the future the Council wishes to expand the number of locations where charitable gambling may be conducted, it could then amend the ordinance. As I previously advised you, the City may by ordinance require a licensed organization conducting lawful gambling in the City to expend within the City's trade area'all or a portion of its expenditure for lawful purposes of its gross profits. The ordinance must define the City's trade area and specify the percentage of lawful purposes expenditure to be expended within the trade area. The City's trade area must include at a minimum each city contiguous to the City. Should the City Council wish to require an organization to make all or a portion of its expenditures within the City's trade area, set forth below is proposed new Section 535.03 of the City Code which it could be included in the ordinance the City council is presently considering on charitable gambling: "Section 535.03. Expenditure by Licensed Organization Conducting Lawful Gambling. Each licensed organization conducting lawful gambling within the City.must expend percent of its lawful purpose expenditures on lawful purposes conducted or located within the trade area of the City. The trade area of the City for this purpose shall include the City and all cities contiguous to the City. This section applies only to lawful purpose expenditures of gross profits derived from lawful gambling conducted on a premises within the City. At the end of each licensed organization's fiscal year, each organization must file with the City a report prepared by an independent certified public accountant documenting compliance with the requirements of this section." 2 DORSEY&WHITNEY LLP OORSE.` DORSEY & WHITNEY LI 27 MEMORANDUM TO: Mayor and Members of the City Council Michael Morrison, City Manager FROM: Jerome P. Gilligan DATE: May 5, 2004 RE: Amendment of Section 535 of City Code to Permit Charitable Gambling in Restaurants Holding Liquor License In order to permit charitable gambling in restaurants holding on-sale liquor licenses it will be necessary for the City Council to amend Section 535.02 of the City Code. Presently the section limits licensed charitable gambling to municipal on-sale liquor establishments. I have prepared an ordinance amending Section 535.02 to permit charitable gambling in establishments holding an on-sale liquor license. Under Minnesota Statutes, Section 349.213, the City has the authority to by ordinance require that an organization conducting licensed charitable gambling expend all or a portion of its lawful expenditure from gross profits derived from the charitable gambling conducted in the City within the City's trade area. The ordinance must define the City's trade area. This statute requires that the trade area must include each city which is contiguous to the City. The Council may wish to consider imposing this requirement on licensed charitable gambling, but it may be of limited value in ensuring the profits from licensed charitable gambling are expended in a manner that benefits the City and its residents, because of the requirement that the trade area must at a minimum include all cities contiguous to the City. DORSEY&WHITNEY LLP CITY OF ST. ANTHONY 28 ORDINANCE 04-002 AN ORDINANCE RELATING TO LAWFUL, GAMBLING; AMENDING SECTION 500 OF THE ST. ANTHONY CITY CODE The City Council of the City of St. Anthony hereby ordains: Section 1. Section 535.02 of the St. Anthony City Code, shall be amended to read as follows: 535.02 Gambling Limited. No form or type of gambling, whether lawful or otherwise, shall be conducted or allowed within the City except for: (1) lawful gambling conducted in accordance and compliance with Minn. Stat. § 349.166, and (2) lawful gambling conducted by a properly licensed organization in accordance with State law in an establishment holding an On-Sale Intoxicating Liquor License under Chapter 10 of this Code; provided that lawful gambling may only be conducted within the City at one establishment holding an On-Sale Intoxicating Liquor License under Chapter 10 of this Code and only one licensed organization may conduct lawful gambling at such establishment. Section 2. This ordinance shall become effective as of the date of its publication. First Reading: May 11, 2004 Second Reading: May 25, 2004 Adopted: June 8, 2004 Mayor ATTEST: City Clerk Publish: St. Anthony Bulletin CITY OF ST. ANTHONY 29 ORDINANCE 04-002 AN ORDINANCE RELATING TO LAWFUL GAMBLING; AMENDING SECTION 500 OF THE ST. ANTHONY CITY CODE The City Council of the City of St. Anthony hereby ordains: Section 1. Section 535.02 of the St. Anthony City Code, shall be amended to read as follows: 535.02 Gambling Limited. No form or type of gambling, whether lawful or otherwise, shall be conducted or allowed within the City except for: (1) lawful gambling conducted in accordance and compliance with Minn. Stat. § 349.166, and (2) lawful gambling conducted by a properly licensed organization in accordance with State law in an establishment holding an On-Sale Intoxicating Liquor License under Chapter 10 of this Codexovided that lawful mblin may of lv be conducted within the City at one establishment holding an On-Sale Intoxicating Liquor T icense under Chapter 10 oft this Code and only one licensed organization may conduct lawful ambling at such establishment. Section 2. This ordinance shall become effective as of the date of its publication. First Reading: May 11, 2004 Second Reading: May 25, 200-4 Adopted: June 8. 2004 Mayor ATTEST: City Clerk Publish: St. Anthony Bulletin 30 REQUEST FOR COUNCIL CONSIDERATION Report Date: May 13,2004 Meeting Date: May 25, 2004 Agenda Section: VI, 4. (2"d Reading) ITEM DESCRIPTION: Peddlers, Solicitors, and Transient Merchant-Ordinance MANAGER'S REVIEW: It was brought to our attention that we are completing computerized criminal checks on Peddlers, Solicitors, and Transient Merchants without the proper language in our City Ordinance. The changes that are highlighted were reviewed by the Police Department and are recommended for amend, which then gives-the City the authority to conduct criminal checks on Peddlers and Solicitors. Recommendation: Council Approval of Peddlers, Solicitors and Transient Merchants Ordinance. Michael Morrison City Manager 31 MEMO DA'L'E: May 6, 2004 TO: Michael Mornson, City Manager FROM: Capt. Ohl SUBJECT: Criminal Checks on Peddlers, Solicitors, and Transient Merchants It has come to my attention that we are completing BCA Computerized Criminal Checks on peddlers, solicitors, and transient merchants without the proper language in our Ordinance number 1130. The Bureau of Criminal Apprehension specifically states that: 6 We must have an ordinance that expressly, or by implication, authorizes the use of CCH records for the screening of an applicant, • The ordinance must require the signed consent of the applicant, • The ordinance must include the grounds and reasons in determining denial, • The ordinance must require notification to the applicant of the reason for the denial. I would suggest the following language be added to Section 1130 of our City Ordinance: Investigation and issuance a) Upon receipt of each application, it shall be referred to the Chief of Police who shall immediately institute such investigation of the applicant's business and moral character as he/she deems necessary including, but not limited to, a criminal history and a wanted person's check with the Bureau of Criminal Apprehension for the protection of the public good. Each applicant and agent of the applicant must sign an"Informed Consent" acknowledging the reason for which the criminal background is being completed. b) If as a result of such investigation, the applicant's business and moral character are found to be unsatisfactory, the Chief of Police shall endorse 32 on such applicant his/her disapproval and his/her reasons for the same, and return the application to the city clerk,who shall notify the applicant that his/her application is disapproved and that no permit shall be issued. Any applicant's business and moral character may be found to be unsatisfactory for reasons including, but not solely limited to: 1. Fraud, misrepresentation, or incorrect statement contained in the application for permit. 2. Past fraud, misrepresentation, or incorrect statement made in the course of carrying on business as a solicitor, canvasser, peddler, transient merchant,itinerant merchant or itinerant vendor. 3. Past conviction of any crime or misdemeanor involving fraud, theft or moral turpitude. 4. Conducting the business of a peddler, solicitor,transient merchant, itinerant merchant or itinerant vendor, as the case may have been, in an unlawful manner or in such a manner as to constitute a breach of peace or to constitute a menace to health, safety or general welfare of the public. c) If as a result of such investigation,the business and moral character of the applicant are found to be satisfactory, the Chief of Police shall endorse on the application his/her approval and return the application to the city clerk, who shall delivery the permit to the applicant. Each peddler, solicitor, or transient merchant must secure a personal permit. Each person issued a permit must carry it on his/her person while conducting or engaging in any activities regulated hereunder. No permit shall be used at any time by any person other than the one to whom it is issued. I believe that by adding the aforementioned verbiage to the city ordinances, we would be able to continue to lawfully check the backgrounds of individuals wishing to solicit within our corporate city limits. For ease of addition to our ordinances, this addition could be put into the ordinance under 1130.12. While waiting for the adoption of this addition to our ordinance, I would suggest that we have individual applicants sign release forms indicating that we will, in fact, as a part of their application process, complete criminal history checks with the Bureau of Criminal Apprehension to assess the public safety risks associated with allowing a particular applicant to solicit within our corporate city limits. 33 Section 1130—PEDDLERS, SOLICITORS AND TRANSIENT MERCHANTS _ 1130.01 Definitions. For purpose of this Section, the terms defined in this Subsection have the following meanings: Subd.1. "Peddler"means a person who goes from house to house, from place to place, or from store to store conveying or transporting goods, wares or merchandise or offering or exposing the same for sale or making sales and delivering articles to purchasers. Subd. 2. "Solicitor"means a person who goes from house to house, from place to place, or from street to street soliciting or taking or attempting to take orders for sale of goods, wares, merchandise or personal services for future delivery or performance. Subd. 3. "Transient Merchant"means a person who engages in any temporary and transient business selling goods, wares and merchandise from a building, structure, vacant lot, vehicle or trailer in a zoning district where it is allowed by this Code. 1130.02 Registration Required. No peddler, solicitor or transient merchant shall sell or offer for sale any goods, wares, or merchandise within the City unless registered as provided in this Section. The nonrefundable registration fee is set forth in Section 615. Any peddler, solicitor or transient merchant dealing with merchandise to be delivered to customers in Minnesota directly from points outside of Minnesota is exempt from payment of the registration fee. Any person soliciting money, donations or financial assistance for a religious or charitable organization or selling merchandise for a fee on behalf of such an organization is exempt from payment of the fee,but is required to register with the City. 1130.03 Conditions for Registration. Registration with the City Clerk must occur at least five days prior to the date when the activity is to commence. Persons registering must file with the City Clerk an accurate sworn registration statement on a form furnished by the City Clerk, giving the following information: (a) Name and physical description of the applicant. (b) Complete home and local address of the applicant and, in the case of transient merchants, the local address from which proposed sales would be made. (c) A brief description of the nature of the business and the product or services involved. (d) If employed, the name and address of the employer, together with credentials establishing the exact relationship. 34 (e) The dates and hours of the day during which the activity will be carried on. (f) The source of supply of any goods or property proposed to be sold or orders taken for the sale thereof, where such goods or products are located at the time registration is filed and the proposed method of delivery. (g) A statement as to whether or not the registrant has been convicted of any crime, misdemeanor or violation of any municipal ordinance of any municipality other than traffic violations, the nature of the offense and punishment or penalty assessed. (h) The last municipalities, not to exceed five, where the applicant carried on business immediately proceeding the date of the application and the address from which such business was conducted in those municipalities. (i) Written statement of permission from fee owner of property where transient sales are to be held. 1130.04 Exemptions. This Section does not apply to persons engaged in the following activities: (a) Selling personal property at wholesale to dealers in such property. (b) Selling solely literature. (c) Selling products of the farm or garden on the property on which the products are grown and cultivated. A person claiming this exemption must submit a written affidavit indicating that the . products be sold were grown in property where the sales are. occurring. (d) Calling upon householders in connection with a regular route service for the sale and delivery of perishable daily necessities of life such as bakery products and dairy products. (e) Calling upon households at the request of the householders. 1130.05 Proof of Registration. Upon receipt of a complete registration, the Clerk will transmit the same to the Chief of Police for approval. Every registration must bear the written approval of the Chief of Police to be valid. Within five days after such registration, the City Clerk will provide the registrant with a written certificate showing proof of registration. 355 1130.06 Registration Not Transferable. No registration is transferable from one individual to another. Each individual must be separately registered where more than one individual is involved in the same type of activity even though associated with the same organization. 1130.07 Practices Prohibited. No peddler, solicitor or transient merchant is permitted to call attention to the business or merchandise by crying out, blowing a horn, ringing a bell, or by any loud or unusual noise. No peddler, solicitor, or transient merchant is permitted to harass, intimidate, abuse, or threaten a person or continue to offer merchandise for sale to any person after being told not to do so by that person. 1130.08 Duration of Registration. Each registration will be valid for the period specified, and no registration may extend beyond the 31 sc day of the December of the year in which it is granted. 1130.09 Exclusion. Any person who wishes to exclude peddlers, solicitors or transient merchants from his or her premises may place upon or near the usual entrance to the premises a printed placard or sign bearing the following notice: "Peddlers and Solicitors Prohibited" Such placard must be at least 3 3/ inches long and 3 3/ inches wide and the printing must not be smaller that 48 point type. No peddler, solicitor or transient merchant may enter in or upon any premises or attempt to enter in or upon any premises where such placard or sign is placed. 1130.10 Revocation. Any registration maybe temporarily suspended by the City Manager or revoke by the Council for a violation of any provision of this Section. Before any temporary suspension or revocation occurs, the registrant will be notified of the violation and will have the opportunity to respond to it. 1130.11 Compliance with Zoning_ Transient merchants must comply with all applicable provisions of the City's Zoning Code. 1130.12 Investigation and Issuance. (a) Upon receipt of each application, it shall be referred to the Chief of Police who shall immediately institute such investigation of the applicant's business and moral character, as he/she deems necessary including, but not limited to, a criminal history and a wanted person's check with the Bureau of Criminal Apprehension.for the protection of the public good Each applicant and agent of the applicant must sign an "Informed Consent"acknowledging the reason for which the criminal background is being completed 36 (b) If as a result of such investigation, the applicant's business and moral character are found to be unsatisfactory, the Chief of Police shall endorse on such applicant his/her disapproval and his/her reasons for the same, and return the application to the City Clerk, who shall notify the applicant that his/her application is disapproved and that no permit shall be issued Any applicant's business and moral character may be found to be unsatisfactory for reasons including, but not solely limited to: a. Fraud, misrepresentation, or incorrect statement contained in the application for permit. b. Fast fraud. misrepresentation, or incorrect statement made in the course of carrying on business as a solicitor, canvasser,peddler, transient merchant, itinerant merchant or itinerant vendor. c. Past conviction of any crime or misdemeanor involving fraud, theft or moral turpitude. d. Conducting the business of a peddler, solicitor; transient merchant, itinerant merchant or itinerant vendor, as the case may have been, in an unlawful manner or in such a manner as to constitute a breach of peace or to constitute a menace to health, safety or general welfare of the public. (c)If as a result of such investigation, the business and moral character of the applicant are found to be satisfactory, the Chief of'Police shall endorse.on the application his/her approval and return the application to the City Clerk, who shall delivery the permit to the applicant. Each peddler, solicitor, or transient merchant must secure a personal permit. Each person issued a permit must carry it on.his/her person while conducting or engaging in any activities regulated hereunder. Any person other than the one to whom it is issued shall not use the permit at any time. FUTURE COUNCIL AGENDA ITEMS Updated June 3,2004 Meeting Date Meeting Type Staff Items/Issues June 22 Regular Planning Commission issues of June 15 Planning Amendment to Comprehensive Sign Plan - Hennepin County Library. DSU Silver Lake Village: Final PUD and Final Plat for Housing and Retail. Ehlers Development Agreement with Dominium Group. J. Gilligan Resolution on Issuing tax exempt bonds. Peddler's Ordinance Amendment, Third Reading July 13 Regular 2003 Audit City and HRA July 27 Regular Planning Commission issues of July 13 August 10 Regular August 24 Regular Planning Commission issues of August 17 June 2004 Monthly Planner U, e y Thursday -,Friday 1 2 3 4 5 6 7 8 9 10 11 12 7:00 pm Council Meeting 13 14 15 16 17 18 19 7:00 pm Parks 7:00 pm Commission Planning Meeting Commission Meeting 20 21 22 23 24 25 26 7:00 pm Council Liquor Store Meeting Celebration 4- 8 pm Public Works Grand Opening 4-7 pm 27 28 29 30 May 2004 Jul 2004 Central Park S M T W T F S S M T W T F S Dedication 6 pm to 8:30 pm 1 1 2 3 2 3 4 5 6 7 8 4 5 6 7 8 9 10 9 10 11 12 13 14 15 11 12 13 14 15 16 17 16 17 18 19 20 21 22 18 19 20 21 22 23 24 23 24 25 26 27 28 29 25 26 27 28 29 30 31 30 31 Printed by Calendar Creator for Windows on 6/2/2004 July 2004 Monthly Planner Va Jun 2004 Aug 2004 1 2 3 S M T W T F S S M T W T F S 1 2 3 4 5 1 2 3 4 5 6 7 6 7 8 9 10 11 12 8 9 10 11 12 13 14 13 14 15 16 17 18 19 15 16 17 18 19 20 21 20.21 22 23 24 25 26 22 23 24 25 26 27 28 27 28 29 30 29 30 31 4 5 6 7 8 9 10 Independence Day Holiday 11 12 13 14 15 16 17 7:00 pm Parks 7:00 pm Council Commission Meeting Meeting 18 19 20 21 22 23 24 7:00 pm Planning Commission Meeting 25 26 27 28 29 30 31 7:00 pm Council Meeting Printed by Calendar Creator for Windows on 6/2/2004 General Fund Budget to Actual Report: MAY 2004 Expenditures: Mean Average 42% 05/31/2004 Percentage Remaining Budqet Y-T-D Balance Spent Budget Mayor/Council $46,900.00 $17,04.0.17 $29,859.83 36% 64% Intergovernmental Relations $21,000.00 $9,478.00 $11,522.00 45% 55% Cable Franchise $22,200.00 $17,507.82 $4,692.18 79% 21% General Management $80,200.00 $32,563.45 $47,636.55 41% 59% Elections $25,400.00 $6,037.89 $19,362.11 24% 76% Finance/Insurance $226,400.00 $53,751.22 $172,648.78 24% 76% Finance/Assessing $42,200.00 $986.34 $41,213.66 2% 98% Legal $85,000.00 $27,279.75 $57,720.25 32% 68% Engineering/Planning/Zoning $2,600.00 $2,193.19 $406.81 84% 16% City Buildings $122,600.00 $38,413.98 $84,186.02 31% 69% Civil Defense $45,800.00 $18,348.48 $27,451.52 40% 60% Police Protection $1,095,200.00 $419,640.06 $675,559.94 38% 62% Lauderdale/Falcon Heights $584,800.00 $223,979.66 $360,820.34 38% 62% Fire Protection $589,500.00 $220,394.54 $369,105.46 37% 63% Inspections/Building Permits $76,400.00 $23,416.75 $52,983.25 31% 69% Animal Control $4,200.00 $416.40 $3,783.60 10% 90% Public Works $422,600.00 $130,691.89 $291,908.11 31% 69% Public Works/Maintenance & Repair $126,100.00 $49,715.87 $76,384.13 39% 61% Tree and Weed Care $28,200.00 $9,945.24 $18,254.76 35% 65% Parks $129,100.00 $51,976.68 $77,123.32 40% 60% Budget Reserves/Non Budgeted $0.00 $0.00 $0.00 0% 0% Total Expenditures $3,776,400.00 $1,353,777.38 $2,422,622.62 36% 64% Stormwater Fund - Cash on Hand 05131/2004 Projeted Revenues: Funding Source Revenues-to-Date Street Improvement Bonds $3,000,000.00 $2,948,173.80 MSA Bonds $950,000.00 $935,008.45 DNR $5,440,000.00 $5,798,197.80 FEMA $700,000.00 $700,000.00 Hennepin County $150,000.00 $150,000.00 Stone Water Utility Charges $500,000.00 $509,645.42 Stone Sewer City Bonds $1,610,000.00 $1.594,271.55 Total Project Budget $12,350,000.00 $12,635,297.02 Other Proied Activity: Reserves/Transfer from Revolving Fund $175,000.00 $175,000.00 State of Minnesota-Reimbursements $0.00 $38,422.27 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 Middle Mississippi Watershed District $120,000.00 $120,000.00 29th Avenue-Water Connection Fees $26,000.00 $26,400.00 Misc.-Homeowner/Reimburse for Extra Construction Work $0.00 $241,475.72 Total Revenues $12,797,000.00 $13,650,451.18 05131/2004 Expenditures: Expenditures-to-Date WSB-Engineering Services $392,151.62 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 $1,205,009.53 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 $2,945,621.37 2001 Street Improvement Project $2,170,972.80 2002 Street Improvement Project $2,488,926.74 Central Park Holding Ponds $28,961.00 St.Anthony Boulevard Street Lighting $2,283.50 Shamrock Stormwater Improvement $396.75 Harding Street Holding Ponds $932,588.61 Silver Point Park/Construction $1.870.940.51 Total Expenditures $13,404,863.53 Project Balance $245,587.65 Stormwater Fees Nan-Desiganted $183,178.70 Total Cash on Hand $428,766.35 EXPENDITURE REPORT 05/312004 WSB: Flood Relief Grant Program: 2001 Street Improvement Project Project Description: Expenditure s Project Description: Expenditure s Project Description: Water Resource Management Plan $12,191.50 Dennis/Penny Gault $10,000.GO WSB-Engineering Services $269,395.82 Water Management Plan $10,531.50 James/Susan Kozarek $10,000.00 Lillie Suburban Newspapers $38.75 Stomtwater Task Force $29,243.00 Thomas/Susan Hoban $800.00 Hage Concrete Works $2,356.53 Stonnwater/Generai Engineering $56,657.98 Julie Sexton $1,004.53 Olson's Plumbing $221.90 Flood Problem Analysis $31,497.23 Village Properties-2801 37th Avenue NE $5,260.00 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 $23,934.63 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 $1.872.673.32 Park Design $156.447.10 St.Anthony Health Center-3700 Foss Road $3,301.00 Total 2001 Street Project $2,170,972.80 IA Study $33,064.75 Rite Way Waterproofing-2929 Crestview Avenue $390.00 Flood Grant-1998/1999200020012002 $31.776.25 Pine Cone Nursery-3460 Penrod Lane $9,222.80 2002 Street Improvement Project Total WSB $392,151.62 Lamere Concrete-Flood Proofing Improvement $4,412.00 Project Description: McCaren Designs,Inc. $703.99 WSB-Engineering Services $278,472.18 Bart Engineering: Minnehaha Falls Landscaping $5,587.50 Dorsey&Whitney $5,220.89 Project Description: Elgard Excavating $1,245.00 Construction Bulletin $215.16 District 06 Watershed Study 2$ .709.35 Twin Cities Glass Block 1$ .312.50 Moody's Investors Service. $3,250.00 Total Bart Engineering $2,709.35 Total Flood Relief Program $65,159.32 Springsted,Inc. $13,217.86 Asphalt&Concrete $8,087.00 Dorsey&Whitney: Private Homes-Dumpsters/Service Master Crown Fence&VNre $6,528.10 Project Description: Project Description: Frank Peterson-Misc Repair $152.01 Legal Services for Flooding Issues $17,911.16 Waste Management $391.65 TEK Services-Sod Repair $250.00 Legal Services-Comdenation of Homes $17,117.75 Service Master $13,782.29 Pipe Services Corp. $5,851.20 Legal Services-4029 Shamrock Drive $1,938.85 Nancy Myhran $259.50 S.M.Hentges&Sons $2.167.682.34 Legal Services-Pahl Avenue 2$ .880.23 Linda Gonier $198.00 Total 2002 Street Project $2,488,926.74 Total Dorsey&Whitney $39,847.99 Susan Kozarek $925.00 Elaine Nelson $1,065.00 St Anthony Boulevard Lighting Water Quality Study: Sue Wenker $250.00 Project Description: Silver Lake: Berkley Riskllnsuance Claim-Payment 5$ 00.00 WSB-Engineering Services $2,283.5 9 Rice'Creek Watershed District $2,025.00 Total Dumpsters $17,371.44 $2,283.50 Purchase of Homes: Sump Pump Shamrock Stormwater Improvement Project Description: Project Description: Project Description: Network Title,Inc. $255.00 Mcleod USA-Sump Pump Line $131.00 WSB-Engineering Services 3$ 96.75 Purchase of 2716 SL Anthony Boulevard $134,928.90 Lillie Suburban News-Advertisement $115.64 $396.75 Demolition $9,156.00 Total Sump Pump/Misc. $246.64 Harding Street Holding Ponds Taxes $839.61 Project Description: Expenditures Legal Services-Dorsey&Whitney $225.00 1999 Street Improvement Project WSB-Engineering Services $105,888.05 Check for Asbestos-Abatement Services $365.00 Project Description: Bettendorf Rohrer $30,075.00 Seal&Cap Weil $1,450.00 WSB-Engineering Services $176,525.71 Second Nature Lawn $278,238.80 Purchase of 2713 St Anthony Boulevard $147,676.13 Springsted,Inc.-Bond Services $8,835.85 Residential Easements $432,183.78 Demolition $11,258.00 Northdale Construction $928,231.18 Dorsey&Whitney/Legal $32,089.52 Legal Services-Attorney Fees for Seller $6,845.00 Treemendous $460.00 STS Consultants $3,235.00 Recording Deed/raxes $2.506.98 Chris Addington $503.22 Evergreen Lend Services $19,519.66 Title Insurance $946.00 Dorsey&Whitney $2,911.55 Construction Bulliten $358.46 Seal&Cap Well $1,420.00 Bond Issuance Expense $10.87528 Albrecht,Inc. $20,215.22 Purchase of 2809-30th Avenue NE $108.067.10 Total 1999 Street Project $1,128,342.79 Comdemnation Commissioners $8,455.10 Purchase of 27002704-Pahl Avenue $301,411.45 Old Republic-Abstract Fees 2$ .330.00 Purchase of 2713-Pahl Avenue $208,072.00 2000 Street Improvement Project Total Harding Street Holding Ponds $932,588.61 Purchase of 4029 Shamrock $265,492.89- Project Description: First American Title $375.00 WSB-Engineering Services $317,044.93 Silver Point Park/Constructlon Forsythe Appraisals/Kozarek $350.00 Barbarossa&Sons,Inc. $2,293,303.47 Project Description: Evergreen Land Services 3$ .369.47 Barbarossa&Sons,Inc.-Settlement of Dispute $66,067.84 Richard Knutson,Inc, $1,466,031.72 Total Purchase of Homes $1,205,009.53 E-CEL Energy $155,100.00 Sandness Construction $137,624.44 Buchan Environmental Services $2,248.99 Thompson Homes,Inc. $64,140.54 Pahl Avenue Ponding: Berkley Risk Services $10,000.00 Muska Electric $40,730.80 Project Description: AIIState Insurance Company. $312.78 Construction Bulletin $160.89 WSB-Engineering Services $20,967.16 St.Paul Companies $16,884.96 Lillie Suburban News/Bid Notices $84.27 G&L Construction $69,998.42 Lillie Suburan Newspaper/Construction Bulletin $232.93 Reed Business Information/Bid Notices $305.76 Treemendous $14,460.90 AlbrechL Inc. $891.75 SEH,Inc.-Silver Point Park Building $39,373.88 Pipe Services $3,859.20 Fabyanske&Westra-Legal Cost/Utigation $44,390.49 WSB,Inc.-Silver Point Park Building $6,016.64 Crown Fence&Wire $370.00 Bond Issuance Expense $39.14323 Twin City Hydro Seeding $4,632.30 Construction Bulliten $1,432.20 Total 2000 Street Project $2,945,621.37 Romtec $6,500.00 Lillie Suburban News-Advertisement $220.69 STS Consultants $78,723.55 Total Pahl Avenue Ponding $111,308.57 Central Park Holding Ponds Metro Hydro Seeding $3,778.76 Project Description: St Paul Linoleum $3,250.00 Veil&Company $28.961.00 Inter-tel Technologies $370.89 $28,961.00 Twin City Janilory Supply $214.54 W.W.Grainger,Inc. $404.82 Veit&Company $5,488.71 Dorsey&Whitney $2,924.90 Trillium Park $10.183.10 Total Silver Point Park $1,870,940.51 April -2004 City of St.Anthony Profit&Loss Statement from Operations Actual Actual Year to Date Year to Date Increase SAV I** SAV II 04130/04 04/30/03 (Decrease) Sales $0.00 $242,745.00 $860,071.00 $653,231.00 $206,840.00 Less:Cost of Goods Sold $0.00 $191,729.00 $674,078.00 $520,145.00 $153,933.00 Gross Profit ' $0.00 $51,016.00 $185,993.00 $133,086.00 $52,907.00 Ratio to Net Sales 21.02% 21.63% 20.37% Operating Expense: Salaries,Wages, Benefits $0.00 $20,896.00 $98,246.00 $58,663.00 $39,583.00 All Other Expenses $0.00 $16,354.00 $69,617.00 $54,755.00 $14,862.00 Total Operating Expense $0.00 $37,250.00 $167,863.00 $113,418.00 $54,445.00 Ratio to Net Sales 15.35% 19.52% 17.36% Profit from Operations $0.00 $13,766.00 $18,130.00 $19,668.00 ($1,538.00) Other Income $0.00 $75.00 $3,980.00 $1,351.00 $2,629.00 Net Income $0.00 $13,841.00 $22,110.00 $21,019.00 $1,091.00 Ratio to Net Sales 5.70% 2.57% 3.22% April -Net Income $13,841.00 SAV I SAV II Y-T-D YEAR TO DATE 04/30/04 $0.00 $22,110.00 $22,110.00 YEAR TO DATE 04/30/03 $0.00 $21,019.00 $21,019.00 INCREASE/DECREASE $1,091.00 $1,091.00 *Stonehouse On-Sale Closed 5/30/03-Unemployment Liability Still Exists **SAV I Off-Sale Closed 8/23103-Anticipated Opening of New Store May/June'04 April - 2004 City of St.Anthony Reconciliation to Inventory Valuation Report SAV I SAV II Beginning Inventory: $0.00 Beginning Inventory: $270,292.51 Plus or Minus: Plus or Minus: Transfers: SAV II $0.00 Transfers: SAV 1 $0.00 Adjustments $0.00 Adjustments ($521.81) Returns to Vendors $0.00 Returns to Vendors ($8,477.45) Add: Receiving $0.00 Add: Receiving $250,887.67 Less: Cost of Goods Sold $0.00 Less: Cost of Goods Sold ($191,207.00) TOTAL $0.00 TOTAL $320,973.92 Total per Valuation Report $0.00 Total per Valuation Report $321,109.96 Difference $0.00 Difference $136.04 Beginning May 2004 Inventory $0.00 Beginning May 2004 Inventory $321,109.96 i 2003 Actual Profits (Audited) 2004 Y-T-D Profits Y-T-D SAV I SAV II Stonehouse SAV I SAV II Profits Comparison January $6,588.00 $3,381.00 $2,657.00 $12,626.00 January $0.00 $2,504.00 $2,504.00 ($877.00) February $4,782.00 $4,181.00 $8,714.00 $30,303.00 February $0.00 $3,672.00 $6,176.00 ($1,386.00) March $10,491.00 $7,536.00 $10,935.00 $59,265.00 March $0.00 $2,093.00 $8,269.00 ($6,829.00) April $10,095.00 $5,921.00 $10,938.00 $86,219.00 April $0.00 $13,841.00 $22,110.00 $1,091.00 May $13,695.00 $10,574.00 $6,026.00 $116,514.00 May $0.00 $0.00 $22,110.00 June $12,616.00 $12,675.00 ($10,603.00) $131,202.00 June $0.00 $0.00 $22,110.00 July $11,914.00 $12,453.00 ($3,880.00) $151,689.00 July $0.00 $0.00 $22,110.00 August ($4,315.00) $18,776.00 ($670.00) $165,480.00 August $0.00 $0.00 $22,110.00 September ($19,510.00) $12,398.00 $123.00 $158,491.00 September $0.00 $0.00 $22,110.00 October ($750.00) $5,333.00 $229.00 $163,303.00 October $0.00 $0.00 $22,110.00 November ($637.00) $299.00 ($228.00) $162,737.00 November $0.00 $0.00 $22,110.00 December 5($ 15.00) $22,235.00 $0.00 $184,457.00 December $0.00 $0.00 $22,110.00 . Total $44,454.00 $115,762.00 $24,241.00 $184,457.00 Total $0.00 $22,110.00 $22,110.00 Increase/(Decrease) $1,091.00 $1,691.00 Y-T-D By Store INVESTMENT PORTFOLIO: 04/30/2004 Interest Date 4/M GENERAL T $876,000 LOCKHART FUNDING COMM PAPER 1,016% 04/27/04 07/15/04 $874,077.67 $874,077.67 41M ARMY-WATER FILTRATION $ 200,000 FANNIE MAE 6.00% 04/27/04 08/07/18 $200,000.00 $ 100,000 FEDERAL HOME LOAN MORTGAGE 6.00% 04/29/04 02/26/19 $100,000.00 $ 100,000 FEDERAL HOME LOAN MORTGAGE 5.00% 04/26/04 04/23/14 $100,000.00 $1,250,000 FED HOME LOAN BANK-ZERO COUPON 7.00% 11/07/01 02/22129 $191,662.50 $ 200,000 FED HOME LOAN BANK-ZERO COUPON 6.02% 02/04/03 02/04/26 $101,033.87 $ 500,000 FED HOME LOAN BANK-ZERO COUPON 6.793% 04/27104 11/02/28 $97,225.00 $ 605,000 COBBLER FUNDING COMM PAPER 1.015% 04/29/04 05125/04 $604,563.06 $1,394,484.43 DAIN RAUSCHER-GENERAL GNMA POOL 6472 7.50% 07/01175 07/15/05 $175.24 GNMA POOL 14376 7.50% 03/01177 03/15/07 $532.19 GNMA POOL 23364 9.00% 09101/78 09/15/08 $304.52. GNMA POOL 23356 9.00% 11/01f78 11/15/08 $708.66 $100,000 FNMA MEDIUM TERM NOTE 6.00% 07/25/02 07/25/22 $100,000.00 $100,000 FNMA MEDIUM TERM NOTE 5.00% 03/24/04 04/01/20 $100,000.00 $670,000 FED HOME LOAN MTG-ZERO COUPON 7.150% 01/22102 02/22/29 $99,948.90 $1,207,000 GENERAL ELECTRIC COMM PAPER 1.006% 03/02/03 05106/04 $1,205,012.04 $1,506,681.56 DAIN RAUSCHER-HONEYWELL $100,000 LASELLE BANK-ZERO COUPON BOND 6.50% 09/11/02 09/11/22 $27,798.64 $100,000 STANDARD FEDERAL-ZERO COUPON BOND 6.50% 09/11/02 09/11/22 $27,798.64 $100,000 LASELLE BANK-ZERO COUPON BOND 6.375% 01/08103 01/22123 $28,480.61 $100,000 STANDARD FEDERAL-ZERO COUPON BOND 6.375% 01/08/03 01/22/23 $28,480.61 $100,000 LASELLE BANK-ZERO COUPON BOND 6.25% 02/19/03 02119/23 $29,170.00 $100,000 STANDARD FEDERAL-ZERO COUPON BOND 6.25% 02/19/03 02/19/23 $29,170.00 $15,000 FEDERAL HOME LOAN MORTGAGE 5.50% 03/15/04 12/15/15 $15,000.00 $100,000 FEDERAL HOME LOAN MORTGAGE 5.00% 04/23/04 07/09/18 $94,250.00 $100,000 FEDERAL HOME LOAN MORTGAGE 5.04% 04/23/04 06/18/18 $94,625.00 $200,000 FEDERAL HOME LOAN MORTGAGE 6.00% 04/30/04 05/10/19 $200,000.00 $574,773.50 DEAN WITTER $680,000.00 FEDERAL HOME LOAN MORTGAGE-ZERO 7.10% 06/15/01 04/05/19 $97,722.56 $520,000.00 MERRILL LYNCH ZERO COUPON BOND 6.00% 09/24/02 09/15/18 $199,477.00 $476,000.00 GENERAL ELECTRIC COMM PAPER 1.005% 03/10/04 05/10/04 $475,346.69 $476,000.00 AMERCIAN EXPRESS COMM PAPER 1.005% 03/10/04 06/10/04 $475,026.84 $200,000.00 FHLMC MED TERM NOTE-STEP UP 6.50% 12128/01 12/15116 $200,000.00 $200,000.00 FED HOME LOAN BANK MED TERM NOTE 5.976% 08/27/02 10/25/16 $200,000.00 $100,000.00 FED HOME LOAN BANK MED TERM NOTE 6.00% 11/26/02 10/22/27 $100,000.00 $200,000.00 FNMA MEDIUM TERM NOTE 5.00% 03/10/04 09/12/13 $200,000.00 $200,000.00 FNMA MEDIUM TERM NOTE 5.00% 03/10/04 03/19/14 $200,000.00 $50,000.00 FNMA MEDIUM TERM NOTE 5.54% 03/19104 03/11/19 $50,000.00 $2,197,573.09 DAIN RAUCHER-(HRA) $200,000-FNMA-9334 P/0 7.24% 04/20/93 03/25/23 $10,892.10 $100,000-FHLMC MEDIUM TERM NOTE - STEP UP 4.00-6.50% 03/18/04 04/12/19 $100,000.00 $175,000- FNMA COUPON- 5.520% 5.520% 03130/04 04/12/19 $175,000.00 $200,000-FNMA COUPON- STEP UP 4.00-8.00% 03/01/04 02/10/12 $200,000.00 $485,892.10 TOTAL BOOK VALUE $7,033,482.34 Times/20/2004 MONTHLY INVESTMENT REPORT APRIL 20041NVESTI CITY OF ST. ANTHONY HOUSING AND REDEVELOPMENT AUTHORITY AGENDA June 8, 2004 Call to Order. Roll Call. I. Approval of June 8, 2004, H.R.A. Agenda. II. Consent Agenda. These items are considered routine and will be enacted by one motion. There will be no separate discussion of these items unless a Councilmember or citizen so requests, in which event the item will be removed from the Consent Agenda and placed elsewhere on the agenda. A. Approve May 25, 2004, H.R.A. Minutes. B. Claims. III. Public Hearings. IV. General Policy of Business of the H.R. A. 1. Resolution 04-008; Approving a policy on Tax Exempt Financing - S. Kvilvang, Ehlers & Associates, presenting. (action requested) 2. Resolution 04-009; Approving Fannie Mae Financing for Silver Lake Village — S. Kvilvang, Ehlers & Associates, presenting. (action requested) V. Staff Reports. VI. H.R.A. Commissioner Comments. VII. Information and Announcements. VIII. Adjournment. 1 CITY OF ST. ANTHONY 01 2 3 HOUSING AND REDEVELOPMENT AUTHORITY MEETING 4 -- 5 MAY 25, 2004 6 7 CALL TO ORDER. 8 Chair Hodson called the meeting to order at 7:59 p.m. 9 10 ROLL CALL. 11 Commissioners present: Chair Hodson; Commissioners Stille, Thuesen, and Faust. 12 Commissioners absent: Commissioner Horst. 13 Also present: Executive Director Michael Mornson. 14 15 16 I. APPROVAL OF MAY 25, 2004, H.R.A.AGENDA. 17 Motion by Commissioner Thuesen, seconded by Commissioner Stille, to approve the May 25, 18 2004, Housing and Redevelopment Authority Agenda as presented. 19 20 Motion carried unanimously. 21 22 II. CONSENT AGENDA. 23 Motion by Commissioner Stille, seconded by Commissioner Faust, to approve the Consent 24 Agenda, which consisted of. 25 A. H.R.A. Meeting Minutes of May 11 2004• and 26 B. Claims. 27 28 Motion carried unanimously. 29 30 III. PUBLIC HEARINGS. 3l' None. 32 33 IV. GENERAL POLICY BUSINESS OF THE H.R.A. 34 None.. 35 36 V. STAFF REPORTS. 37 Executive Director Mornson reported a hearing date for the week of July 12, 2004, was set for 38 the Tires Plus lease condemnation. He indicated he would be attending the hearing with staff 39 attorneys from Dorsey and Whitney, adding it was hoped the other three properties would have 40 negotiated settlements. 41 42 VI. H.R.A. COMMISSIONER COMMENTS. 43 Commissioner Thuesen asked if the concerns discussed by residents at the May 11, 2004, 44 Council meeting regarding the new Tires Plus location were being addressed. Executive Director 45 Mornson responded one of the contingencies of the conditional use permit was that the City 46 attorney, City engineer and staff approve the lighting and landscaping plans and they would be 47 sensitive to the remarks made at the last meeting. He added a public hearing had been held in 48 March regarding the project,however. ®2 Housing and Redevelopment Authority Meeting Minutes May 25, 2004 Page 2 1 2 Commissioner Faust noted the LaNel project was discussed at the last meeting and'he felt the 3 City was at a point where it should start pressing that issue. Mr. Mornson stated he agreed. 4 5 Commissioner Faust suggested the timing as it related to the tax-exempt status of the property 6 should be discussed and some leverage should be used to keep the process moving forward or the 7 City should refocus on a different project. Mr. Mornson responded he agreed and asked for a 8 motion from the HRA. 9 10 Motion by Commissioner Faust, seconded by Commissioner Thuesen, to approve placement of 11 said property back on the market if not closed by June 30, 2004. 12 13 Discussion: 14 15 Commissioner Stille stated the City could negotiate if LaNel wanted to retain control of the 16 property. Mr. Mornson responded LaNel could ask for a 30-day extension and the City would 17 then "have a hammer over them," noting the City did want to be accommodating if it knew 18 something was going to happen. 19 20 Commissioner Faust suggested the City could enter into a Purchase Agreement with earnest 21 money, at which time there would be honest brokerage on both sides. 22 23 Motion carried unanimously. 24 25 VII. INFORMATION AND ANNOUNCEMENTS. 26 None. 27 28 VIII. ADJOURNMENT. 29 Chair Hodson adjourned the meeting at 8:04 p.m. 30 31 32 Respectfully submitted, 33 34 Marjorie R. Jenkins 35 Timesaver Off Site Secretarial, Inc. ACS FINANCIAL SYSTEM ST. ANTHONY VILLAGE 06/01/2004 13: Check Register GL540R-VO6.60 PAGE 1 BANK VENDOR CHECK$ DATE AMOUNT HRA1 HOUSING & REDEV CHECKING .00001 BRALEY CONSULTING SVCS 5483 06/09/04 10,000.00 .00002 BRALEY CONSULTING SVCS 5484 06/09/04 9,173.34 008667 DAHLGREN, SHARDLOW AND U 5485 06/09/04 4,582.40 000820 DORSEY & WHITNEY 5486 06/09/04 27,646.84 .00009 RADIX PRODUCT 5497 06/09/04 10,000.00 .00010 'RADIX PRODUCT 5488 06/09/04 10,000.00 .00003 RONALD BACKSTROM INS. 5489 06/09/04 10,000.00 .00004 RONALD BACKSTROM INS. 5490 06/09/04 10,000.00 .00005 VILLAGE PROPERTIES - 5491 06/09/04 10,000.00 .00006 VILLAGE PROPERTIES 5492 06/09/04 10,000.00 .00007 WAYNE MOSS AGENCY INC. 5493 06/09/04 10,000.00 .00008 WAYNE MOSS AGENCY, INC. 5494 06/09/04 10,000.00 HOUSING & REDEV CHECKING 131,402.58 *** E H L E Rb.- " & ASSOCIATES INC ® To: St.Anthony City Council and Housing and Redevelopment Authority(HRA) Mike Momson—City Manager LU From: Stacie Kvilvang& Sid Inman—Ehlers and Associates Date: June 2,2004 Subject: Policy on Issuance of Revenue Bonds Dominium has requested that the City and the City's Housing and Redevelopment Authority (HRA) assist them in obtaining private activity revenue bonds from the State of Minnesota for the purposes of developing 260 units of rental housing in the Northwest Quadrant Redevelopment Area. The City and the HRA have assisted both rental housing developments and industrial developments with obtaining these bond funds from the State in the past. However, the City and HRA have never had a formal policy on what type and how much of a fee they would charge for assisting developers in pursuing these types of bonds. After discussions with the City Attorney and City Manager, it is recommended that the City and HRA adopt a formal policy charging the following: 1. A one time issuance fee of one(1)percent of the principal amount of the bonds; and 2. The Applicant must pay all expenses of the City and HRA related to the issuance of such revenue bonds,whether or not the revenue bonds are issued Please contact me at 651-697-8506 if you have any questions. LEADERS IN PUBLIC FINANCE 3060 Centre Pointe Drive Phone: 651-697-8506 Fax: 651-697-8555 Roseville,MN 55113-1105 skvilvang@ehlers-inc.com HOUSING AND REDEVELOPMENT AUTHORITY OF ST.ANTHONY ®� RESOLUTION NO. 04-008 RESOLUTION APPROVING POLICY FOR ISSUANCE OF REVENUE BONDS WHEREAS,the Housing and Redevelopment Authority of St.Anthony is authorized to issue revenue bonds for various entities pursuant to Minnesota Statutes, Chapter 462C and Minnesota Statutes, Sections 469.152 to 469.165; and WHEREAS, a number of cities have developed policies for the issuance of such bonds,which, among other things, impose a fee based upon the principal amount of the revenue bonds issued payable upon the issuance of such revenue bonds; and WHEREAS,the Housing and Redevelopment Authority does not currently have a policy in place for the issuance of such revenue bonds and the Housing and Redevelopment Authority believes it is in the best interest of the Housing and Redevelopment Authority to adopt such a policy. NOW,THEREFORE,BE IT RESOLVED by the Housing and Redevelopment Authority of the City of St. Anthony,that the following policy shall apply to the issuance by the Housing and Redevelopment Authority of revenue bonds pursuant to Minnesota Statutes, Chapter 462C or Section 469.152 to 469.165: 1. All expenses of the Housing and Redevelopment Authority related to the issuance of such revenue bonds must be paid by the applicant,whether or not the revenue bonds are issued. 2. The Housing and Redevelopment Authority shall be under no obligation to issue any such revenue bonds and reserves the right to decline to issue any such revenue bonds for any reason. 3. An issuance fee of 1% of the original principal amount of the revenue bonds shall be paid to the Housing and Redevelopment Authority upon the issuance of the revenue bonds. 4. The issuance of such revenue bonds must not adversely.affect the ability of the Housing and Redevelopment Authority to issue qualified tax-exempt obligations under Section 265(b)of the Internal Revenue Code of 1986, as amended, for Housing and Redevelopment Authority purposes. 5. The Housing and Redevelopment Authority reserves the right to select bond counsel and other consultants or advisors with respect to any revenue bonds,the fees and expenses of which shall be paid by the applicant,whether or not the bonds are issued. Adopted this 8'h day of June,2004. Chair ATTEST: City Clerk Reviewed for Administration: Executive Director ` 9 EHLERI 06 & ASSOCIATES INC ® To: St.Anthony City Council and Housing and Redevelopment Authority(HRA) Mike Momson—City Manager LJ From: Stacie Kvilvang& Sid.Inman—Ehlers and Associates Date: June 1,2004 Subject: Fannie Mae Loan—Northwest Quadrant Redevelopment Overview On December 19, 2003, the City Council and Housing and Redevelopment Authority(HRA) executed a Development_Agreement with Apache Redevelopment LLC for the redevelopment of the above referenced area. According to Section 12.11 of the Development Agreement, the City and/or HRA would be securing an interim loan in the amount of$3,350,000 from Fannie Mae, to assist in acquiring three (3) commercial properties where the for-sale housing would be developed. The City and HRA conditioned the commitment to obtain these funds upon the following: 1. The City had received the Commercial Go Ahead Letter(Received) 2. The City had received the For Sale Housing Go Ahead Letter 3. The housing developer had documentation that they had obtained 20 percent of presales of the units in the first building in Phase IA(13 units); 4. The Developer is not in default of the Development Agreement The loan, as originally discussed with the City Council and HRA, was going to be paid back through land sale proceeds and a General Obligation TIF bond issued-by the City/HRA when the development was completed(within a three year period). Under this loan structure,Fannie Mae requires the City to provide a collateral deposit with them consisting of 25 percent of the loan amount ($837,500). The City was going to utilize its Water Filtration Funds for this deposit requirement (If the City was to "back" the loan with their General Obligation taxing powers, no collateral would be required). In addition, the loan was a full recourse debt to the City and they would need to pledge any.assets to repayment of the loan. After review of the loan documents by the City Attorney, it was determined that State Statutes would not allow the City to pledge funds to a loan without it being considered a General Obligation. Therefore, the loan documents are being redrafted to reflect this. LEADERS IN PUBLIC FINANCE 3060 Centre Pointe Drive Phone: 651-697-8506 Fax: 651-697-8555 Roseville, MN 55113-1105 skvilvang @ehlers-inc.com a y ®9 St.Anthony City Council and HRA Fannie Mae Loan—Northwest Quadrant Redevelopment June 1,2004 -- Page 2 Primary Issues to Consider: 1. How is this loan structure different from what was originally proposed? 2. What is the risk to the City/HRA in obtaining these loan funds and providing their General Obligation taxing powers? 3. What are the terms of the loan agreement Analysis of Issues: I. How is this loan structure different from what was originally proposed? The original loan structure anticipated that the City would borrow the funds,provide the necessary collateral ($837,500 set aside for up to a three year term) and not provide its General Obligation authority up front (less risk). The loan was going to be paid back as land sale proceeds were received and then when the development was finished being constructed and paying taxes, the City/HRA was going to pay off the remaining balance of the loan by utilizing its General Obligation authority and issue a GO TIF bond. The GO TIF bond would then be repaid by tax increment generated by the new development. Under the new structure, the Cityd] A would be authorizing utilization of its General Obligation taxing powers up front,which would not require the City/HRA to provide$837,500 in collateral for the loan. This option would provide the City much more flexibility in completing other capital improvement projects as defined by the City Council and HRA since it would not require tying up a large sum of money for a three-year period. The loan will still be repaid as originally anticipated, which is through land sale proceeds and through the issuance of a GO TIF bond when the development is completed. The City/HRA was always intending to pledge its General Obligation taxing powers to repay the debt. The only difference between the two aforementioned loan structures is when the GO would be required, meaning up front (more risk) before the development is constructed or after the development is constructed(less risk). 2. What is the risk to the City/HRA in obtaining these loan funds and providing their General Obligation tang powers? The risk of obtaining these loan funds needs to be reviewed from two aspects: 1. Actually drawing down the loan funds; and 2. Repayment of the loan if it is drawn down The risk under#1 is minimal since the City/HRA is not required to draw down any funds until the developer has met certain presale and construction financing requirements. If the presale r , ®® St. Anthony City Council and HRA Fannie Mae Loan—Northwest Quadrant Redevelopment June 1, 2004 - -- Page 3 requirement and proof of construction financing from a lending institution are met, it will provide reassurance to the City and HRA that there is a market for the product the developer is constructing and the corresponding price points they have set. Under#2,the City and HRA were always at risk of repaying the loan if it was drawn upon. Again, the loan was going to be repaid through land sale proceeds and a General Obligation T1F bond when the development was finished being constructed. The City/HRA's only risk would be if the developer for some reason did not move forward with the development after meeting the presale and construction financing requirements or quit constructing the development half way (or at another point) through construction. The likely hood of the developer not moving forward after meeting the presale requirement is low since they have invested considerable dollars in completing architectural drawings and plans for submittal to the City for approval, they have been working on meeting the presale requirement and are nearing finalization of their construction financing. That would leave the scenario in which the developer walks away from the development prior to completing it. To analyze this risk the question that the City and HRA need to answer is: Would the City move forward with acquiring this land for redevelopment if this developer defaults during the construction phase? It is assumed that the answer to that is yes. The City and HRA have committed extensive resources to assure that the Northwest Quadrant Redevelopment Plan would be implemented. If the developer was to "walk away", the City and BRA would have the right to the unfinished project and could select another developer to step in and finish the development, or propose an alternative solution. 3. What are the terms of the loan agreement Following are the loan agreement terms: 1. The loan is a non-revolving loan and the City&IRA can draw the funds down at anytime 2. Loan maturity is 36 months 3. The loan is taxable 4. Loan proceeds will be utilized to acquire and demolish property in the Northwest Quadrant Redevelopment Area 5. Loan has a variable interest rate based upon the three (3) month LIBOR (currently 1.26) plus 175 basis points (total of 3.01%). Interest rate is set on day of closing. 6. Interest rate will be reset quarterly on the first day of each calendar quarter (January 1, April 1, July 1 and October 1) 7. Quarterly payments of interest to be paid in arrears on the fist day of each calendar quarter and calculated on an actual/360 basis ' y ®9 St. Anthony City Council and HRA Fannie Mae Loan—Northwest Quadrant Redevelopment June 1, 2004 Page 4 8. Prepayment can occur at any time without penalty 9. Full repayment is expected in spring of 2007 when development is finalized. However, the City/HRA can repay at anytime 10. Debt is General Obligation of the City 11. The City/HRA can not utilize any other Fannie Mae funds to repay the loan 12.. All legal fees of Fannie Mae to be paid by the City/HRA at closing (whether the loan closes or not). Legal fees generally are between$2,500 and$5,000 13. City/HRA has to pay origination fee of 100 basis points at closing($33,500) 14. City/HRA is required to submit financial statements annually for Fannie Mae review until the loan is repaid and submit the annual TIF reports required by the State of Minnesota It should be noted that all out of pocket expenses incurred by the City/HRA will be reimbursed by the Developer and/or through Tax Increment(TIF). 1® RESOLUTION NO. 04-009 RESOLUTION AUTHORIZING EXECUTION OF LOAN DOCUMENTS WITH FANNIE MAE FOR$3,350,000 LOAN WHEREAS, pursuant to Minnesota Statutes, Section 469.028 the City of St. Anthony (the "City") is authorized to establish redevelopment projects in order to provide for the redevelopment of the City; and WHEREAS, pursuant to Minnesota Statutes, Section 469.176, the City is authorized to finance the public redevelopment costs of a redevelopment project with tax increment revenues derived from a tax increment financing district established within such Redevelopment Project; and WHEREAS, in connection with the Redevelopment Project, the City prepared and approved a tax increment financing plan creating its Tax Increment Financing District No. 3-5 (the "Tax Increment District); and WHEREAS, on December 19, 2003 the City of St. Anthony and the St. Anthony Housing and Redevelopment Authority (HRA) executed a Development Agreement with Apache Redevelopment LLC (the "Developer") for the redevelopment of the area commonly referred to as the Northwest Quadrant (the "Northwest Quadrant") WHEREAS, according to Section 12.11 of the Development Agreement, the City and HRA agreed to obtain short term financing from Fannie Mae for the purpose of acquiring certain commercial properties, relocating the tenants and demolishing these properties located within the Northwest .Quadrant for redevelopment; and WHEREAS, the City of St. Anthony is authorized to obtain these loan funds and issue General Obligation Tax Increment Bonds for purposes of repayment of these loan funds pursuant to Minnesota Statutes, Section 469.178, subdivision 2. NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority of the City of St.Anthony as follows: 1. That the Executive Director and HRA Attorney are hereby authorized.to proceed with negotiating the terms of this loan and to prepare necessary documents for execution by the HRA. Adopted this 8th day of June,2004. Chair ATTEST: City Clerk Reviewed for Administration: Executive Director Apache Plaza Redevelopment May-04 Total Costs Since Inception Payments from Developers: HIIICrest Development $72,920.43 Met Council Grant $120,000.00 Pratt-Ordway $547.421.55 $740,341.98 Total Expenses $904,658.32 05131/2004 Cost to HRA ($164.316.341 Dahlgren S ardlow Ehlers&Associates WSB&Associates Tracv Printina JMS Communications Northfleld Lines SEHIRCM Goodwin Comm Dorsey 8 Whitney LBH Enninners Lillie Suburban $7,rg02112y f 10'OOt�" 52s 450 2,51^391'00 tT,Ogs290`. ;sue ! �' $455.87 $1,615.00 $2,062.50 $592.03 $27.90 _ i E3 337r8,1' _. "»$9'� °_ $ I1P (�f. 9 0 $1,743.93 $570.00 $1,483.00 $2,184.89 j002,6Q- 59`17,5Q 960 109 A.. �090:f 6800 $2,189.80 $1,140.00 $4,899.00 $4,545.67 $1 :138189 s�56'at ,4 8'2r { 4 4,0 $2,260.00 $848.00 $95.00 $1,742.50 $10,615.96 oe $i1�9 7, $1,320.00 $570.00 $5,194.90 $10,211.86 22 2 0 00 $190.00 $9,806.5D $10.779.16 570{8031p4 E2a9q,1,#73 E4� �+r a�09 i'(y0 $9,355.00 $1,425.00 $16,217.50 $38,929.57 r/0� g920✓ 3,5vrt 1103 jt`-1¢880 $1,045.00 $51,029.50 - "' f3,A To 10(407-0- $49"3'` $1,995.00 $15,537.05 �58i�+b3 Q_ '� M5 100 0 -•1"ll� 1 20 $1,330,00 $23,517.41 337 B 2 L21,' 5'(33981 y 0 98.50 $1,141.12 $9,975.00 $4,071.90 51 $72,770.25, 490 $1,091.00 $1,434.25 $3,150.00 i$610 $2,662.50 $508.50 $13,434.45 $7.632.79 $�;7t7,g4 75 $3,750.00 $94.00 $16.412.53 .} 96�13 s $4,717.50 $188.00 $177,527.33 53754 23 $3,653.50 $106.00 1-t $4,065.00 $106.00 $1,645.50 $3,900.00 $2,088.20 $5,539.18 $4,385.63 $1,187.33 $9,796.85 $5,850.00 $4,571.50 $11,660.14 $6,052.50 $265.00 - $2,359.63 $5,587.50 $1,814.00 $221.92 $637.50 $9,277.50 $1,733.97 $3,342.54 $160.00 $2,429.72 $2,287.50 $1,431.00 _ $6,387.25 $2,137.50 $318.00 $7,019.47 $7,275.00 $636.00 $740.48 $65625 $336.00 $552.29 $7,156.25 $8,427.75 $1,785.63 $2,816.25 $266.40 $239.25 $8,362.50 $4,310.50 $251.11 $2,318.75 $953.75 $1,356.22 $3,360.00 $9,111.75 $1,828.75 $6,168.75 $21.628.30 $2,479.50 $9,000.00 $381.50 $7,695.92 $22,256.25 $218.00 $18,69520 $1,968.75 $163.50 $61.00 $393.75 $218.00 _ $7,280.49 $17,940.00 $944.75 $10,54322 $6,045.00 $109,150.96 $1,426.07 $8,812.50 $2,395.56 $150.00 $2,066.58 $4,895.50 $695.95 $8,115.00 $773.45 $12,712.50 $4;461.38 $2,53625 65807 $1,560.00 $295,371.19 $375.00 $5,600.00 $2,778.75 $187.50 $600.00 $1,500.00 $4,50625 $300.00 $1,662.50 $10,702.50 $150.00 $2,193.75 5.00 $247,839.12 Pratt-Ordway $547,421.55 Shaded Area Represents Before Pratt-Ordway Agreement Less:Expenditures ($642.114.17) Retainage Balance ($94,692.62) Invoices Paid 5/31/2004 Pubic Works Building Fire Station Funding Funding F.M.Fratalone Excavating $73,524.30 $2,400,000.00 Belair Builders,Inc. $59,381.65 $1,700,000.00 Nova Frost,Inc. $18,810.00 $157,000.00 Nova Frost,Inc. $28,215.00 $500.00 Kraus Anderson-Reimburseables $59,260.00 $600.00 Belair Builders,Inc. $26,041.40 $57.250.00 WSB&Associates $1,453.00 $81.150.00 Kraus Anderson-Reimburseables $42,160.00 $1,757,750.00 WSB&Associates $522.25 $2,638,750.00 Braun Intertec Corp. $1,600.00 WSB&Associates $119.00 WSB'&Associates $1,453.00 Braun Intertec Corp. $901.00 WSB&Associates $522.25 Braun Intertec Corp. $2,740.00 WSB&Associates $119.00 Fabcon,Incorporated $128,723.10 Mid-Mn Wire&Mfg.Inc. $10,551.01 Gresser Companies,Inc. $59,955.00 Belair Builders,Inc. $1,778.00 CD Tile&Stone $342.00 2004 Red Pine Industries $4,800.00 F.M.Fratalone Excavating $23,831.70 Retrofit Recycling $8,425.00 Fabcon,Incorporated $52,351.65 Braun Intertec Corp. $1,638.90 Gresser Companies,Inc. $15,352.00 Braun Intertec Corp. $4,500.00 SGO Roofing&Construction $1,738.50 Belair Builders,Inc. $12,318.65 Thumsbeck Steel Fabrication $4,079.30 Hennepin County-Permit $200.00 United Stales Mechanical $23,348.15 Thumbeck Steel Fabrication $781.85 Kraus Anderson-Reimburseables $20,825.00 Twin Cities Aucoustics,Inc. $95.00 Kraus Anderson-General Conditions $10,130.00 Belair Builders,Inc. $21,759.75 White Bear Electric $4,750.00 Bredemus Hardware $2,470.00 ACG,Inc. $2,125.15 Gresser Companies,Inc. $41,135.00 F.M.Fratalone Excavating $134,152.35 Honda Electric $11,685.00 Faboon,Incorporated $33,951.10 Kraus Anderson-Reimburseables $24,075.00 Kraus Anderson-Reimburseables $5,350.00 Kraus Anderson-General Cond $1,115.00 Kraus Anderson-General Conditions $4,605.00 Steenberg-Watrud Construction $28,975.00 M.Reinert Drywall,Inc $10,450.00 Thumbeck Steel Fabrication $18.202.95 Red Cedar Steel Erectors $16,150.00 Total $353,998.41 SGO Roofing&Construction $53,794.70 Thumsbeck Steel Fabrication $53,604.70 Unted States Mechanical $24,827.30 Funding Viking Automatic Sprinkler $4,750.00 Purchase 3501 Silver Lake Road $243,740.43 $500,000.00 ADB Costruction $28,500.00 Purchase 3505 Silver Lake Road $248,580.20 Bredemus Hardware $15,912.50 Dorsey&Whitney $1,071.00 CenterPoint Energy $7,544.06 Dorsey&Whitney' $2,157.25 Ebert Construction $68,875.00 Xcel Energy $12.23 Fabcon,Incorporated $12,268.15 Xcel Energy $12.67 Kraus Anderson-Reimburseables $17,822.00 Xcel Energy $12.34 Kraus Anderson-General Conditions $20,150.00 Xcel Energy $12.41 M.Reinert Drywall,Inc. $12,350.00 Xcel Energy $12.34 Red Cedar Steel Erectors $7,600.00 Total $495,610.87 SGO Roofing&Construction $25,935.00 Spicer Construction $14,725.00 Funding Twin City Garage Door $8,266.00 Oertel Architects $14,000.00 $340,000.00 United States Mechanical $83,555.35 Oertel Architects $60,066.17 Viking Automatic Sprinkler $8,075.00 Cartel Architects $75,566.07 ACG,Inc. $29,757.80 Oertel Architects $115,000.00 ADB Costruction $124,901.25 Oertel Architects $30.000.00 CenterPoint Energy $5,418.78 Total $294,632.24 .Ebert Construction $21,375.00 Kraus Anderson-Reimburseables $3,300.00 Kraus Anderson-General Conditions $8,075.00 Funding M.Reinert Drywall,Inc. $11,400.00 Kraus Anderson-CM Fee $16,720.00 $126,000.00 United States Mechanical $152,336.30 Kraus Anderson-CM Fee $20,600.00 Viking Automatic Sprinkler $8,702.00 Kraus Anderson-CM Fee $22,000.00 White Bear Electric $41,344.00 Kraus Anderson-CM Fee $25,950.00 T.C.Field-Builders Risk Insurance $589.00 Kraus Anderson-CM Fee $10,000.00 ACG,Inc. $11,719.06 Kraus Anderson-CM Fee $10.000.00 Bredemus Hardware $3,766.75 Total $105,270.00 CD Tile&Stone $10,820.50 Kraus Anderson-Reimburseables $21,000.00 Kraus Anderson-General Conditions $5,420.00 M.Reinert Drywall,Inc. $5,420.00 Steinbrecher Painting $7,267.50 Thurnsbeck Steel Fabrication $152.00 Twin City Garage Door $16,532.00 United States Mechanical $91,557.20 Viking Automatic Sprinkler $13,908.00 White Bear Electric $116,151.75 CenterPoint Energy $2,274.75 ACG,Inc. $746.03 ADB Costruction $31,903.85 CenterPoint Energy $264.43 Fabcon,Incorporated $1,487.80 Gresser Companies,Inc. $3,183.45 Kraus Anderson-Reimbursables $19,035.00 Kraus Anderson-General Conditions $1,705.00 Red Cedar Steel Erectors $5,870.05 SGO Roofing&Construction $5,179.40 Spicer Construction $64,045.20 Twin City Garage Door $15,580.80 White Bear Electric $30,590.00 Willoughby Enterprises,Inc. $16.476.80 Total $2,087,370.76 Public Facilites Project May-04 Appropriation: $5,687,000.00 - Hard Costs: 4/30/2004 Expenditures Balance Public Work Building $2,557,000.00 $2,086,781.76 $470,218.24 Builders Risk $600.00 $589.00 $11.00 Contingency - Public Works $81,150.00 $0.00 $81,150.00 Total $2,638,750.00 $2,087,370.76 $551,379.24 Fire Station $1,700,000.00 $353,998.41 $1,346,001.59 Builders Risk $500.00 $0.00 $500.00 Contigency - Fire $57,250.00 $0.00 $57,250.00 Total $1,757,750.00 $353,998.41 $1,403,751.59 Soft Costs: Land Acquisition $500,000.00 $495,610.87 $4,389.13 Architect-Oertel $340,000.00 $294,632.24 $45,367.76 Construction Manager- K/A $126,000.00 $105,270.00 $20,730.00 Bond Issuance Costs: Issuance Costs $74,000.00 $73,796.00 $204,.00 Bond Insurance $64,000.00 $64,000.00 $0.00 Capitalized Interest $109,000.00 $0.00 $109,000.00 Bond Discount $77,500.00 $77,420.00 80.00 Total $1,290,500.00 $1,110,729.11 $179,770.89 Public Facilities -Totals $5,687,000.00 $3,552,098.28 $2,134,901.72 Temporary Facilities/Fire Tires Plus Lease Payments $55,500.00 $0.00. $55,500.00 Construction 70/Lease Payment $50,000.00 $61,700.00 ($11,700.00) . Garage Door Modification $5,000.00 $5,000.00 $0.00 Phone Cabling $500.00 $755.00 255.00 $55,500.00 $67,455.00 -$11,955.00 PUBLIC HEARING AND/OR OPEN FORUM PLEASE SIGN BELOW IF YOU WISH TO SPEAK AT A PUBLIC HEARING AND/OR OPEN FORUM ON Name Address ' WdZ—lazkoZ A D/ �Zt (; ddc)- lA19Z--c7A1 's;T H,kj-F�o,,v-v /c) C� f sl�l .� to o ST Nz- . t r rt cws ns c o o rt � 2304 Central Avenue NE Minneapolis, MN 55418 (612)788-9003(voice) (612)788-3299 (fax) June 3, 2004 Mary Bonneville 2801 Hilldale Ave. St. Anthony, MN 55418 I am writing to apologize for the error that was printed in today's Northeaster. I am sending a copy of this letter to St. Anthony city officials. As you know, today's Northeaster carried a reference to your letter to the editor that was printed in the May 20 Northeaster. Today's article incorrectly paraphrased your letter in a sentence that read: She claimed the city has a history of driving out small businesses, and has incurred numerous lawsuits charging it with sexual, racial or disability discrimination." The passage should have read, "She claimed the store has a history of..." The article was submitted by Gail Olson, and was reviewed and revised by both Kerry Ashmore and Margo Ashmore, as is our common practice. Throughout that process, the word "store" was in its proper place and the reference to your letter was accurate. At this point, I am not able to offer you a logical explanation for why or how the word "city" was substituted for the word "store." The passage is six lines away from any copy that we know was altered after the abovementioned editing process, and we can't think of any reason to have paid special attention to the word"store." I realize that you.have "stuck your neck out" on this issue, in opposition to city officials, and I very much respect and admire you for that. I also realize that the printed passage makes it appear that you are leveling untrue allegations against the city, which is hurtful to all concerned and damages credibility on all sides. Our goals always are to provide correct information and to help the community. With this error, we have failed in both areas. Our mistake was not intentional, and I am truly sorry that it happened. I offer no excuses for it. We will print a detailed correction in the June 17, 2004 Northeaster. I am willing to meet with you and anyone who has further concerns about this, and I am willing to print a letter from you etailing your perspective. e � erry Ashmore Publisher