HomeMy WebLinkAboutCC PACKET 07301996 Meeting Sheet
IIIIIIVIIIVIIIVIIIVIIIVIIIIIIIIIII
106490
Box: 37
Folder: CC PACKETS 1997
Document: CC PACKET 07301996
•
CITY OF ST. ANTHONY
BUDGET PLANNING MEETING
Tuesday, July 30, 1996
Dinner from 5:30 P.M. to 6:30 P.M.
Meeting Begins at 6:30 P.M.
Speakeasy at the Stonehouse
PAGES)
I. CALL TO ORDER.
II. ROLL CALL.
III. REVIEW BUDGET HIGHLIGHTS WITH STAFF
FOR 1997 BUDGET AND LEVY.
• A. Review Northwest Youth & Family Services' and
League of Minnesota Cities' budget requests . . . . . . . . . . . . . . 1 - 6
IV. REVIEW GOAL SETTING REPORT AND/OR
DEPARTMENT HEADS DISCUSS WHAT IS
HAPPENING IN THEIR DEPARTMENTS . . . . . . . . . . . . . . . . . . . . . . . . . 7
V. OTHER BUSINESS.
A. Review next MSA project . . . . . . . . . . . . . . . . . . . . . . . . . . 8 - 10
B. City Hall Update . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
C. TIF Update . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 - 15
D. SAV 2 Update . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 - 25
E. Review letter from School District Tech Coordinator . . . . . . . . . . . 26
VI. ADJOURNMENT.
BECAUSE WE ARE REVIEWING THE 1997 PROPOSED BUDGET AT
THIS SPECIAL WORK SESSION, THERE IS NO NEED FOR AN AUGUST
WORK SESSION.
No�
P�( V
� ` Northwest Youth & Family Services
4
3490 Lexington Avenue North • Shoreview, MN 55126 • (612) 486-3808 • FAX (612) 486-3858
u
June 12 , 1996
Mr. Michael Mornson
City Manager
City of St . Anthony
3301 Silver Lake Road
St . Anthony MN 55126
Dear Mr. Mornson:
In planning for 1997 Northwest Youth and Family Services is
requesting $5, 330 . 25 from the city of St . Anthony. This reflects
an increase of 30 over last year' s allocation. Attached you will
find a confirmation form which we would appreciate your returning
to us after your city has completed its, budgeting process.
Members of the Board of Directors would like to meet with your
Council to share with you plans for program expansion since we have
• moved into our new building at 3490 Lexington Avenue North. We
believe this would be helpful in increasing understanding of the
partnership between St . Anthony and the services provided by
Northwest Youth and Family Services. Attached you will find the
city participation summary. This will enable your council to
understand some of the services received by your residents in 1995 .
If you have any questions about this request, please contact me at
486-3808 .
Sincerely,
KAY Z. ANDREWS, LICSW
EXECUTIVE DIRECTOR
KZA:JMK
Attachments : City Participation Summary
Confirmation Form
cc: Financial Officer Roger Larson
F , - I
z
• NORTHWEST YOUTH & FAMILY SERVICES (NYFS)
1995 SERVICE PARTICIPATION SUMMARY
FOR THE:
CITY OF ST. ANTHONY
Your city's contribution to the work of NYFS has once again made it possible for NYFS to offer help and hope
to over 3,700 north suburban residents. In 1995, 423 local youth and families received mental health services
and 33 young fathers received help which enabled them to emotionally and financially support their children.
In-Home Services provided 45 youth and families with intensive home based treatment. In addition, 271 first-
time youth offenders completed community service restitution, 161 youth attended Awareness seminars, and
57 youth received delinquency assessments. A total of 228 youth received employment services, 9 families
received services through the family support project. 175 youth received medical services through the teen
health center.
Although the needs of individual cities vary year to year, the need for the services provided by NYFS remains
constant. Your participation makes it possible for NYFS to offer these essential services.
CITY OF ST. ANTHONY
Service Hours Total Benefit
Service Provided Youth Cases Residents Served Provided Utilized*
Counseling Services 11 N/A 93 $ 8,835
Young Fathers Program 0 N/A 0 $ 0
Restitution Services 7 N/A 35 S 1,750
Awareness Seminars 3 4 12 $ 600
Delinquency Assessments 0 0 0 $ 0
Employment Services 14 48 70 $ 3,500
Family Support Project 0 N/A N/A $ 0
Teen Health Center 6 N/A 9 S 720
In-Home Services 0 N/A 0 $ 0
TOTALS 41 52 219 $15,405
*EACH SERVICE IS BILLED AT A DIFFERENT RATE PER HOUR. SEE BELOW FOR DETAILS.
Counseling/Mental Health Services:Each client is seen an average of 7-one hour sessions and one-2 hour intake appointment totalling 10 hours
of service per client. Each service hour is charged out at a rate of$95/per hour. Billable Service Hours are reflected in above grid.
Young Fathers Program: The Young Fathers program seeks to assist young men,up to age 23,in their role as fathers.The program provides support,
information,referrals,parent education and vocational assessment through group or individual,couple and family consultation.Each participant receives an average
of 12 hours of group or individual counseling and support services in addition to 5 hours of vocational/educational services. Cost per hour of service is$50.
AmcOmmunity Restitution Services: Youths are placed on job sites within their home communities and each complete approximately 15 volunteer
ice restitution hours. Cost per hour of service is about$50.00. Each case requires a minimum of 5 hours.
Continued on Reverse
Ms. Kay Andrews
Executive Director
Northwest Youth & Family Services
3490 Lexington Avenue North
Shoreview, MN 55126
Dear Ms . Andrews :
This is to confirm that the City of St . Anthony intends to budget
$5, 330 . 25 for the support of NORTHWEST YOUTH & FAMILY SERVICES for
1997 .
Sincerely,
• CITY MANAGER
DATED:
`'1-
145 University Avenue West, St. Paul, MN 55103-2044
League of Minnesota Cities Phone: (612) 281-1200 - (800) 925-1122
Cities promoting excenence Fax: (612) 281-1299 - TDD (612) 281-1290
July 2, 1996
Dear Mayor Ranallo and Members of the St. Anthony City Council;
By now, you are probably aware of the rights of way issue facing cities in Minnesota. US
West's challenge to local management of the public rights of way is one of the most critical
issues cities have faced in years. It was a topic of considerable discussion at the Annual
Conference, where member cities supported the League Board of Directors decision to move
forward with an aggressive work program and financing plan to counter this challenge. We need
your city to make a special payment to this fund and help put the work plan into action.
The work plan developed by the Rights of Way Task Force and approved by the Board could
cost$325,000 or more. This assumes that a large portion of the work plan will be coordinated
by and implemented through League staff. The Board has agreed to allocate $125,000 from the
current League budget for the work plan and is asking member cities to voluntarily pay
$200,000.
• Based on your city's 1995-96 League dues, your suggested minimum payment is $601.
Please consider this request in July and submit your payment by August 15, 1996 if at all
possible. If each city meets their minimum payment, the $200,000 target is reachable. However,
because it is unlikely that all cities will join this voluntary effort, we encourage members to
allocate more if this initiative is of particular importance to them.
Two important points should be made: First, this is a voluntary payment. As a member of the
League of Minnesota Cities, you are not required to take part in this effort. However, if total city
payments fall significantly short of the $200,000 goal, the League will not be able to fully
undertake the work plan. Second, your voluntary payment should not be confused with your
League membership dues which will be billed at the beginning of September.
The Board of Directors and I understand that this issue must be weighed against the priorities in
your city. However, we believe that the prospect of losing local control of public property
warrants this extraordinary effort. This is a complicated issue, please consider it carefully.
Enclosed is a brief information sheet to help you in your deliberations. If you have any
questions, contact me at (218) 643-1431, League Executive Director Jim Miller at (612) 280-
1205 or(800) 925-1122, or any member of the Board of Directors.
Sincerely,
•
Blaine C. Hill
President, League of Minnesota Cities
cc: City Manager, A*R?11PffP% ATY/AFFIRMATIVE ACTION EMPLOYER
• r
Commonquestions about
ta Cilias public rights of way
scenence
QWhy did local management of public Doesn't that settle things?
rights of way become such an issue? Q
In February, US West challenged a ANot necessarily. The District Court ruling
Redwood Falls ordinance that set standards probably will have little bearing on the PUC
for installing fiber optic cable in the public right ruling, which is expected later this summer. US
of way. The ordinance charges a small per foot West may also appeal the District Court ruling.
fee, requires the cable to be encased in concrete Regardless of what happens in these two arenas,
conduit, or, if that isn't done, limits the city's the Legislature will be looking at this issue when
liability in case the cable is damaged. US West the 1997 session begins in January.
asked the Minnesota Public Utilities
Commission (PUC) to take over jurisdiction of
city rights of way, and set aside any local Why is this such an important issue?
regulations. Then, US West sued the city of Q
Redwood Falls in District Court. US West asked Che implications of this case are enormous.
the court to prevent the city from enforcing the 1s deregulation and competition among
ordinance, and allow them to lay their fiber optic telecommunication and utility providers
cable pending resolution of the matter before the continues, there will be more and more demand
PUC. for access to the ground under city streets. All
kinds of businesses and utilities make use of that
scarce space - telephone companies, cable
Didn't the District Court rule in favor of television companies, gas companies, power
Redwood Falls? companies - and so on. If cities are not allowed
/® Yes. The League intervened on behalf of to manage the use of the right of way, streets
Redwood Falls early in the proceedings and could be torn up regularly and underground
hired outside legal counsel with expertise in facilities could become a tangled maze. Imagine
utility law. Those efforts paid off when a Fifth your city completing a major repaving project,
District Court Judge dismissed the lawsuit only to have the street torn up by a utility
brought by US West. In the order dismissing the looking to install lines. Imagine the phone calls
suit, the judge stated essentially that the state law to city hall from irate residents if streets are
creating the PUC authorized it to regulate blocked off two or three times a year. Imagine
telephone service providers but did not take your frustration when it becomes obvious that
away cities' right to impose reasonable local taxpayers are being forced to subsidize
regulations and to charge a reasonable franchise private industry and pay higher taxes to build
fee for the use of their streets and services. The and maintain city streets.
judge wrote "...The public utility commission
• regulates telephone companies, not cities."
Q
So what is the League of Minnesota What if our city decides not to pay?
Cities doing? Q
• AAs the magnitude of this issue became Xeague
hat's your choice. As a member of the
clear, the League Board of Directors of Minnesota Cities, you are not
appointed a Rights of Way Task Force to look at required to take part in this effort. However, if
what should be done. Through the course of total city payments fall significantly short of the
several meetings, the Task Force developed a $200,000 goal, the League will not be able to
work program that involves legal, legislative, fully undertake the work plan.
and public information strategies to protect
cities' role in managing the public right of way.
The Task Force estimates that full Can our city pay more?
implementation of the work program could cost Q
as much as $325,000. The Board has agreed toCertainly. In fact, we encourage members
finance this work program by allocating Atoallocate more to this fund if this initiative
$125,000 from the current League budget and is of particular importance to them. If all
asking member cities to voluntarily allocate member cities meet their minimum payment,the
$200,000. $200,000 target is reachable - but it's unlikely
that every city will join this voluntary effort.
Q$200,000
is a lot of money. What is the
League going to do with all of that? After we pay, how can we stay up to date
rThe work plan includes legal Q on the issue?
epresentation, work with legislative We will keep you informed of any
leaders, and an extensive statewide public Adevelopments through articles in Cities
• information campaign. While League staff will Bulletin, direct mailings, and broadcast faxes.
take on the bulk of this work, it's likely that
outside assistance will be needed.
Clearly, our payment is only part of the
solution. What else can we do?
Q
How did you decide how much you want e The best thing city officials can do is stay
our city to pay? 1-linformed, and pass that information along to
AYour suggested payment is based on a as many others as possible. Discuss rights of
ercentage of your city's 1995-96 League way with your local editors and reporters; make
dues. local control a campaign issue for your House
and Senate candidates; talk to your local
Chamber of Commerce about the business
QDo we have to pay? How will the payment impact of torn-up streets; let taxpayers know
affect our dues? you're working to protect their investment in
No city if required to pay. This is strictly a streets.
voluntary payment. Also, it's entirely
separate from the League dues statement your Q
I'm still confused. Who should I call?
city will receive in September.
XIeague
f you have more questions, please contact
Executive Director Jim Miller at
• (612) 280-1205 or(800) 925-1122, or any
member of the Board of Directors.
• MEMORANDUM
DATE: May 14, 1996
TO: Mayor and Councilmembers
FROM: Michael Mornson, City Manager
ITEM: 1996 GOAL SETTING UPDATE
SUMMARY OF GOALS
1. Revisit Road Reconstruction.
-*June 10 authorize feasibility
2. Planning Commission to Develop HousingBeautification Plan.
-*May 21 Planning Commission held work session to start process
3. Communication.
-*Go to six newsletters:
In April, the Council decided to stay with 4 because of time and
financial constraints and to go to an extra newsletter, if needed,
for a special project, such as was done in 1995 for the City
Hall/Community Center project.
4. City Council to Seek Input From Community on Senior and Youth
Programs.
5. Benchmark What Other Communities Are Doing About Senior and
Youth Programs.
6. Benchmark What Other Communities Are Doing About Economic
Development Incentives.
Comparing our prior goals:
1995 Goals 1994 Goals
1. Apache Plaza 1. Apache Plaza
2. City Hall/Community Center 2. City Hall/Community Center
3. Apache Wells On-Sale 3. Apache Wells On-Sale
• 4. Street Program
19
MEMORANDUM
Date: July 11, 1996
To: Mike Mornson, City Manager
From: Larry Hamer, Director of Public Works
Re: Rehabilitation of 33rd Avenue NE
The next project for Minnesota State Aid is 33rd Avenue NE from Stinson Boulevard to
Highcrest Road.
I propose the following:
• 1. The project be separated into two projects with Silver Lake Road being the
project line.
2. We make all repairs and grind the riding surface.
3. Install sidewalks on the north side of the street from Highcrest Road to
Stinson Boulevard.
4. Work on Silver Lake Road to Highcrest Road in 1997 and Silver Lake
Road to Stinson Boulevard in 1999.
Enclosed is an estimate of project costs and MSA funds. In 1997 there will be approximately
$415,000 in the construction fund. The segment of road from Silver Lake Road to Highcrest
Road is the worst section, the engineer's estimate is $441,000.
I am proposing we complete the sidewalk from the school to Highcrest Road because of the
school childern walking to and from school.
July 3, 1996
Mr.Larry Hamer
Public Works Director
City of St. Anthony
3300 Silver Lake Road
St. Anthony,MN 55418
Re: State Aid Funding
RCM Project No. 10367.00
Dear Mr.Hamer:
Per your request, we have reviewed the funds in your State Aid account which are available
for construction. In developing an estimate of available funds, we spoke to the State Aid
office, Ramsey County,and City of Columbia Heights.Based on information obtained from
these sources,a summary of your State Aid construction account is as follows:
rieke $280,230 1995 Balance
mu elr $154,100 1996 Allotment
fates, inc. -($53,000) Estimated City share of signal project at 39th Avenue and Stinson
sneers Boulevard.
itects
land surveyors -($93,186) City share of Silver Lake Road project
-($12,323) City share of Stinson Boulevard railroad crossing upgrade
equal opportunity
employer $275,821 Current Available Funds
We anticipate that your State Aid allocation for 1997 will be approximately$140,000,based
on historical trends. The City will likely have a balance of $415,000 available for
�. construction in 1997.
�= We have developed a cost estimate for street improvements on 33rd Avenue between Stinson
q Boulevard and Highcrest Road.Our estimate is based on the following:
1. Planing of existing concrete pavement(full width).
2. Replacement of deficient concrete panels(estimated at 15%of total surface area).
' 3. Placement of new concrete sidewalk between Stinson Boulevard and Silver Lake
' Road.
° 4. Placement of new concrete sidewalk between Sky Croft Drive and Highcrest Road.
_955-199
5. Watermain replacement is not included.
_ -•-,_�+- eft
Using these parameters, we estimate the cost for construction, engineering, and inspection
on the segment of 33rd Avenue between Stinson Boulevard and Silver Lake Road to be
$436,000. For the segment of 33rd Avenue between Silver Lake Road and Highcrest Road,
the estimated cost is$441,000.
1001 red circle drive
box 130
minnetonka, minnesota 55343-0130
L2) 935-6901
(612) 935-8814
)0
• Mr.Larry Hamer
July 3, 1996
Page 2
If you decide to proceed with developing a Municipal State Aid project for 33rd Avenue,we
are willing to prepare a fee proposal for conducting a feasibility study of the project. In any
event,please let us know if you have any questions or if we can be of further assistance.
Sincerely,
RIEKE CARROLL MULLER ASSOCIATES,INC.
Robert L. Moberg,P.E.
Project Manager
RLM/ka
•
•
11
MEMORANDUM
•
DATE: June 26, 1996
TO: Mayor and Councilmembers
FROM: Michael Mornson, City Manager
ITEM: FINANCIAL SUMMARY FOR NEW CITY
HALL/COMMUNITY CENTER - UPDATE
Building Revenues
Bond proceeds $2,650,000
City's cash $1.250.000
Total $3,900,000
Building Cost
Base Bid $3,151,900
• Architectural & special consultants $ 230,000
Demolition $ 160,984
Bond cost $ 30,000
Contingency $ 327.116
Total $3,900,000
Contingency Costs (to date)
Contingency cost approved to date -- $4,862.
Electrical outlet/door widen $ 6,100
Phone system $ 40,000
Storm water $ 17,000
*Office furniture $ 15,000
Storage space $ 18,200
Asbestos removal $ 50,000
*Tennis courts $ 34,000
Playground area $ 20,000
Wall in Commons area 20,000
Total $ 220,300
$ 4.862
Total $ 225,162
* Currently, there is $34,000 budgeted in our Capital Equipment Fund for tennis courts
• and $15,000 for office furniture.
* The $5,000 for the score board has not been included.
O
J I
STAFF REPORT
DATE: June 5, 1996
TO: Mayor and Councilmembers
FROM: Michael Mornson, City Manager
ITEM: TAX INCREMENT FINANCING AMENDMENT
PR®P®SAI..
Following is a summary of existing TIF projects and some proposed changes that the Council
may want to consider:
4 $233,000 for vacant lot by Industrial Custom Products (new project)
® 4 $40,000 for Clark Station, up $10,000
4 $40,000 for bowling alley, down $20,000
4 � $50,000 for St. Anthony Shopping Center, up $15,000
4 $75,000 for Twin City Federal lots, up $15,000
4 $260,000 for Arnie Gregory's 1st phase, down $90,000 (Does the Council want to
leave this or anything in here for Phase 2?)
�D $1 million for Autumn Woods, up $500,000, plus expansion of property area
$250,000 for Apache Plaza (new)
4 $100,000 for Community Center site work (new)
New expenditures total $1,013,000
Total expenditures are $6,023,000. However, the City will spend about $7.4 million, if we do
all of the projects due to interest on the CC bonds.
13
® MEMORANDUM
DATE: June 5, 1996
TO: Mayor and Councilmembers
FROM: Michael Mornson, City Manager
ITEM: STATUS UPDATE ON TIF
Following is an update on the TIF plan and expenditures that were recently
approved by the City Council on June 27, 1995. In addition are some changes
the City Council may want to consider later this year (these are shaded).
Expenditure
Actiy4 Authorized Project Status
Evergreen Twin Homes $150,000 Construction underway. $12,500 paid to
• (12), min. value $175,000 developer upon issuance of certificate of
occupancy per unit. 12 X 12,500 =
$150,000.
Gregory Redevelopment $350,000 Construction underway. $165,000 paid
(18), townhomes valued at260;00 to developer. $95,000 remaining to be
$175,000 paid upon completion of 10-14 units.
$90,000 remaining for future redevelop-
ment of additional properties.
American Monarch $125,000 Industrial Custom Products located in
Industrial Custom Products building. $125,000 paid out.
Community Center $3,000,000 $2,650,000 bonds issued. Construction
underway.
Autumn Woods Project $500,000 No activity.
1�000 000 Expand project area.
Apache Plaza $300,000 Money spent on CUB.
ZSU f Future redevelopment.
14
TIF Update
• June 5, 1996
Page 2
Clark Station $30,000 No activity.
$40x� QOQ
Lowry Grove $500,000 No activity.
Bowling Alley $60,000 No money spent, however, an office
r.40Q00 retail business has located there.
St. Anthony Shopping Area $35,009 No activity.
Ms0000
Vacant lots on Silver Lake Road $60,000 No activity.
&775`50-
—@0
ComIIiunity��Center sitew�ork �1¢Oa0�00(l
Money authorized to date-----------------c"-^ 5,000 5;.000
• Money not authorized----------------------$1,375;000 -9999A !n
Total---------------------------------$6,203,000 $ 6 1. 23 OOQ
If we complete all the projects, the City would actually spend $7.4 million due to
$1.3 million in interest on the CC bonds. The $3,485,000 funded the following
projects:
*Evergreen Townhomes
*The Arbors Townhomes
*American Monarch
*CUB Foods
*Community Center
Once again the benefits of setting up TIF in this manner are:
• No LGA loss
• Will not have to issue bonds
• Will not have to put property in the district
•
� s
TIF Update
•May 13, 1996
Page 3
Following represents the status of the existing TIF districts:
District
TIF Tyne Increment Terminates
*Chandler Housing $240,000 per year 2010
*Kenzie Terrace Housing $461,910 debt until 1999 2008
Evergreen Housing $59,000 2001
Walbon Housing $35,000 debt until 2001 2011
Apache Plaza Commercial ---- 2018
*The Chandler and Kenzie Terrace districts are the districts the City is using for the $6,023,000 in
expenditures.
Chandler and Kenzie Terrace Districts have a fund balance as of December 31,
1995 of$2.1 million.
•
•
it
• MEMORANDUM
DATE: July 10, 1996
TO: Mayor and Councilmembers
FROM: Michael Morrison, City Manager
ITEM: SAV 2 OFF-SALE STORE
As I indicated to you at the July 9th Council meeting, I have signed the Notice
of Intent to enter into a lease at the Tires Plus building. I did make two changes
that Schoening will discuss with Mary Rothchild.
1. I am trying to get out of the Apache Wells lease by August 1st instead of
when we take over the new store about January 1st. This would save the
City about $20,000 for the rest of the year. I proposed to them that
• should the City not enter into a new lease, we are obligated to make all
lease payments retro to August 1st to reduce their risk.
2. The proposal is contingent on Council approval. This just gives us
another out. However, we have one already by the last sentence in the
contingency on Page 4.
In terms of the economics of the proposal, I have discussed this with Roger
Larson and Mike Larson (not related), and the three of us concluded that the
best option would be to inject $200,000 into the store to get the lease down to
$6.25, which is about what we are currently paying at SAV 2. The $200,000
would come from the HRA project fund. It may be more than $200,000
depending at what the bids come in at. The Council could pay the HRA money
back from the expectant liquor store profits. That would be solely up to the
Council.
I have had Bill Soth review the proposal and he has no problem with it as it is
currently written. Ste. Marie Company will hire Briggs and Morgan to put a
lease together, which Bill Soth will review on behalf of the City.
If you have any questions, please let me know.
•
l -7
MEMORANDUM
DATE: July 15, 1996
TO: Mike Mornson, City Manager
FROM: Roger Larson, Finance Director
ITEM: SAV H LEASE ANALYSIS
Per your request, I have reviewed the lease proposal from the Schoening Group for SAV H.
I have attached a copy of my analysis which outlines the options and indicates the savings for
contributing $100,000 or $200,000 in HRA Project Funds.
Based on my review, I have listed the different alternatives of the proposal and rated them from
a financial prospective.
• Most Favorable
Base rental agreement with a $200,000 contribution for Leasehold Improvements. The rent
reduction totals $390,000 and a net savings of $190,000 over the life of the lease. In addition
to savings in rent, it allows St. Anthony to lock in rent costs which are close to the amount of
rent that SAV II is paying now.
If inflation and the Consumer Price Index continues to climb, a look at these costs per square
foot in ten years would most likely be viewed as extremely low.
Considerably Favorable
Base rental agreement with a $100,000 contribution for Leasehold Improvements. The rent
reduction totals $180,000 and a net savings of $80,000 over the life of the lease. As with the
previous option, the locking in of these rent costs between $8.00 to $9.00 per square foot will
undoubtedly be looked at in ten years as very low.
Somewhat Favorable
Base rental agreement (Option - B) allows for a reduction of rent costs in the early years of the
• lease and increases in years 6 - 15. The implementation of higher rent payment during the later
years of the lease has less affect on profits as inflation usually rises sales in equal proportions.
• Favorable
Base rental agreement (Option - A) allows rents costs to be fixed over the life of the lease.
There is no cash payment with this option, however, from a budgeting/profit viewpoint there is
an immediate and significant increase in rent costs.
Least Favorable
Base rental agreement (Option - C) has CPI adjustments occurring at the anniversary of each
five-year period and does not lock in costs. Often, there are several different views and analysis
as to what the CPI is at and which figures should be used. In addition, this option could be the
most costly of all the proposed lease options.
Funding:
The HRA Projects Fund Balance at the year end (12/31/95) totaled $799,546. This fund was
established in 1993 and in addition to interest earnings, each TIF District contributes to the fund
to cover costs for of administration of the TIF's.
If the City Council so desired, the money could be replenished as profits from the liquor
operation increase from the Redevelopment of Apache. However, capital equipment funding
• from liquor profits may supersede the ability to repay the funds.
It would be my recommendation that any contribution made to subsidize the lease be recognized
as a contribution to improving economic activity in the City. Funding for capital equipment will
be an increasing concern over the next few years and ultimately increase pressure for liquor
profits.
Having the HRA contribute towards the profitability of the liquor operation could greatly
enhance the liquor operations ability to fund capital equipment. This could have a direct affect
on the taxpayers of the community and eliminate a levy increase caused by the issuance of
Certificates of Indebtedness for capital equipment funding.
•
ST. ANTHONY MUNICIPAL LEASE ANALYSIS
SAV II — LIQUOR
BASE RENTAL OPTION 15 Year Rent Net
Annual Rent Total Rent Reduction Savings
Option A — Annual Rent Years 1 — 15 $80,000.00 $1,200,000.00
Option B — Annual Rent Years 1 — 5 $76,000.00
Years 6 - 10 $80,000.00
Years 11 — 15 $84,000.00 $1,200,000.00 $0.00 $0.00
Option C — Annual Rent Years 1 — 15 $76,000.00 $1,140,000.00 Undetermined — Could Exceed
Plus CPI Adjustment Base Rent Costs
BASE RENTAL WITH $100,000 REDUCTION 15 Year Net
Annual Rent Total Rent Rent Savings
Years 1 — 5 $64,000.00 Reduction
Years 6 — 10 $68,000.00
Years 11 — 15 $72,000.00 $1,020,000.00 $180,000.00 $80,000.00
BASE RENTAL WITH $200,000 REDUCTION 15 Year Net
Annual Rent Total Rent Rent Savings
Years 1 — 5 $50,000.00 Reduction
Years 6 — 10 $54,000.00
Years 11 — 15 $58,000.00 $810,000.00 $390,000.00 $190,000.00
. JUL-12-96 FRI 09:38 AM THE SCHOENING GROUP FAX NO. 9201369 P. '
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July 11, 1996
Mr. Michael Mornson
City Manager
City of St. Anthony Village
3301 Silver Lake Road
St. Anthony,Minnesota 55415
RE: City Liquor Store Lease
St.Anthony Village Minnesota
Dear Mike:
This letter is intended to outline the proposed terms and conditions of a lease at 3800
Silver Lake Road, St. Anthony,Minnesota. Please review the following:
Property: 3800 Silver Lake Road
St. Anthony Village,MN
Premises: Existing Building: 3,772 square feet
Building Expansion: 4.228 square feet
TotaL• 8,000 square feet
Note: Exact square footage shall be subject to field
verification. See Exbibit A.
Undlard: Ste, Marie Company
Tengnt: St. Anthony Village
Terns: Fifteen(15)years
Lease Commencement: Rent will commence upon opening for business, but no later
than December 1, 1996,,
• Apache Wells: Effective August 1,1996,Landlord shall terminate the
existing Apache Wells lease effective with the lease
eommeneement whirls currently Las au estimated remaining
balance in excess of$150,000. In the event Landlord and
Tenant do not enter into a mutually lease, Tenant shall be
obligated to pay rent per the current lease retroactive to
August 1,1996.
. JUL-12-96 FRI 09:39 AM THE SCHOENING GROUP FAX NO. 9201369 P, 03
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• SAV 11 Lease Extension: Tenant shall have the right to continue its occupancy an of the
existing liquor store at Apache Plaza-upon the same terms
and conditions until occupancy of the new space.
Construction of Tenant Landlord(or its designated eonmitant) agrees to coordinate
Leasehold Improvements: gonstruction of Tenant leasehold improvements("Landlord
Work"). The fmal construction plans and spedfications for
Landlord's Work shall be subject to the written approval of
Tenant,which shall not be unreasonably withheld and shall
be deemed given if not given to Landlord within 15 days
after they are submitted to Tenant. Taldng possession by
Tenant of the Premises shall be conclusively deemed to
establish that Landlord's Work has been completed and that
the Premises are in good and satisfactory condition and are
in compliance with the terms of this lease, as of the date
possessiou was so takcn by Tenant. Tenant shall select the
general contractor and shall be a third party beneficiary to a
construction contract with Landlord_
Base Rentalt $ 9.50 net per square foot(Years 1-5)
$10.00 net per square foot (Years 6-10)
• $10.50 net per square foot(Years 11-15)
Leasehold-Improvement Landlord shall provide it leasehold improvement allowanoe
Allowance: up to $367,000 for completion of architectural drawings
and installation of permanent improvements to the Premises.
Tenant shall be responsible for all costs in excess of the
leasehold improvement allowance of$367,000.
Base Rental Reduction; In the event Tenant contributes$100,000 towards
Leasehold Improvements(thereby reducing Landlord's
Leasehold Improvement obligation by$100,000), Tenant's
biitial Base Rent shall be adjusted to:
$8.00 net per square foot(Years 1-5)
$8.50 net per square foot(Years 6-10)
$9.00 net per square foot(Years 11-1S)
In the event Tenant contributes$200,000 towards
Leasehold Improvements(thereby reducing Landlord's
Leasehold Improvement obligation by$200,000), Tenant's
Initial Base Rent shall be adjusted to:
• $6,25 net per square foot(YeArS 1.5)
$6.75 net per square foot (Years 6-10)
$7.25 net per square foot(Years 11-15)
-JUL-12-96 FRI 09:39 AM THE SCHOENING GROUP FAX NO. 9201369 P. 04
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is
Architectural Drawings: adMinary Building and Site Plans: All costs of preparing
preliminary building and site plans shall be paid for one-half
by Tenant and one-half by Landlord.
Construction Drxwings: All costs of preparing construction
drawings and a final site plan shall be paid for by Tenant.
At Tenant's option, Tenant shall have the right to deduct the
cost of construction drawings from the above leasehold
improvement allowance. The final construction plans and
specifications shall be subject to written approval of
Landlord.
Operating Costs: Tenant shall be responsible for its prorata share of operating
costs. The term"operating costs" shall include real estate
taxes, interior and exterior common area maintenance,
insurance,utilities and other general costs associated with
the operation of the building.
Utilities: All utilities serving the Premises(ie., gas, electric, water,
and sewer) shall be separately metered and Tenant shall be
respond for payment directly to the utility company.
Parking: Tenant shall be entitled to the non-exclusive use of the
parking area at the BuildiA.g. In no event shall parking by
Tenant obstruct parking or access to any other space
occupied at the Property.
Deliveries: All deliveries to Tenant's Premises shall be limited to the
north or west sides of the Building in front of Tenant's
Premises. Tru no event shall said deliveries obstmuet parking
or access to any other space occupied at the Property.
Reciprocal Easement In the event the Owner sells or conveys the Property
Agreement: (currently platted as Lot 5,Block 1., Silver Lake Center),
which includes Tenant's demised-premises, the lease shall
include language to reflect that the Property shall be
separate from the Shopping Center and that Tenant's rights
in common areas of the Shopping Center or any other rights
may reflect only such rights as set forth in that certain
Reciprocal Basement Agreement, dated as of May 6, 1996
(the trMA").
Signage: Building Signage: Subject to municipal sign ordinances and
the REA,Tenant shall have the right to install,exterior
• building signage at Tenant's sole expense.
Monumnt Signage: Subject to municipal sign ordinances
and the REA, Tenant shall have the right to install a reader
board on the new monument along Silver Lake Road at
Tenant's sole expense. See Lxliibit B.
JUL-112-96 FRI 09:39 AM THE SCHOENING GROUP FAX NO. 9201369 F "^
23
•
Renewal Option: Provided Tenant is not in default of the Lease and that
Tenant provides written notice 190 days prior to the
expiration date of the Lease,Landlord grants to Tenant an
option to renew this lease for 5 years. Base Rent shall
adjust to market rate to be negotiated within 30 days after
Tenant notifies Landlord of its intent to renew. In no event
shall the Base Rent be less than the last month's rent.
Acceptance: By signing this letter, Tenant agrees to diligently pursue in
good faith the execution of a mutually acceptable lease.
This proposal shall remain in effect until 5:30 p.m. July 15,
1996 at which time it shall become null and void.
Contingency: Tliis proposal is subject to final Landlord senior
management approval, City Council approval, final site plan
approval, approval of the storm water drainage plan, and
confirmation that the site can accommodate all parking
requirements. The only instrument that shall bind either
party is a fully executed lease.
If the terms of this Letter of Intent are acceptable,please acknowledge by signing where
indicated below and we will proceed to a lease agreement.
Respectfully submitted, Agreed and Accepted:
--- ST. ANTHONY VII.I.AOE
Thomas F. Lund By_
Vice President Date:
ce Mary Rothchild- Ste. Marie Company
•
24-
• Art or `
(f) drool supply stores.
(g) Artists.
(h) Attorneys.
(i) Auto accessory or parts stores.
0) Bakeries which sell at retail only.
(k) Banks and savings and loan associations without drive-in facilities.
(1) Barber and beauty shops.
(m) Beverage stores for the sale of beverages for consumption off the premises.
(n) Bicycle sales and service stores.
(o) Bonding companies.
(p) Book or stationery stores.
• (c) Bus stations of the Metropolitan Transit Commission
(r) Camera or photographic supply stores.
(s) Candy, ice cream, soft drink or confectionery stores without drive-in
facilities.
(t) Car washes.
(u) Carpet, rug and floor covering stores.
(v) China and glassware stores.
(w) Clothing stores.
(x) Consultants.
(y) Costume and formal wear rental stores.
(z) Curtain and drapery stores.
(aa) Day care centers.
Department, discount or
(bb) De P variety stores.
16-22
1635.03 Permitted Conditional Uses. The following uses are permitted in the C District
• only by Conditional Use Permit issued by the Council:
(a) Sexually-oriented businesses which comply with the requirements of Section
1670.
(b) A use permitted under Subsection 1635.02 except for the fact that it has a
drive-in facility.
(c) Assembly, lodge or convention halls.
(d) Auto repair which includes no storage of autos for parts.
(e) Churches.
(f) Gasoline station.
(g) Liquor stores and lounges.
(h) Motels.
(i) Video tape sales and rentals.
• 0) Auctions.
(k) Body tanning salons.
(1) Establishments primarily for the sale of beverages for consumption on the
premises.
(m) Bowling alleys.
(n) Health clubs.
(o) Pool or billiard halls.
(p) Restaurants, cafeterias and delicatessens located less than 250 feet from a
residential structure or district.
(q) Theaters.
(r) Establishments having more than three amusement devices as defined in
Subsection 505.01.
(s) Motorcycle sales and accessories.
•
16-25
4ST. ANTHONY- NEW BRIGHTON
MIVDEPENDENT SCHOOL DISTRICT 282
3303 33rd Avenue N.E., Minneapolis, Minnesota, 55418. Telephone 782-1000
July 11,1996
Mr. Mike Mornson
City Manager
St. Anthony Village Offices
3301 Silver Lake Road N.E.
St. Anthony, MN 55418
Dear Mr.Mornson,
St. Anthony-New Brighton Schools has the technology and expertise to maintain a
World-Wide-Web server and any WWW pages which we create. When school starts
this fall we will begin serving WWW pages from our Internet server. I believe this
capability provides an excellent opportunity for cooperation between our school
district and the communities we serve.
• We are offering to create, maintain, update and serve WWW information about the
Village of St.Anthony on our Internet server... at no cost to the village. Only
information selected by the village would be published. This opportunity would
provide a substantial cost saving over other options you may be considering.
I would be happy to demonstrate and discuss this issue and technology with you at
any time. Right now I am only requesting permission to put a sentence in the
1996/97 school calender that the school district and village are working to determine
how we can best use this new technology in a cooperative way. Our calender
publication deadline is August 1st.
T look forward to hearing from you shortly.
Sincer
John See
District Technology Coordinator
782-1045
• cc: Warren Rolek
"Someplace Special"
1 CITY OF ST. ANTHONY
CITY COUNCIL WORK SESSION MINUTES
3 June 4, 1996
4 6:00 P.M.
5 I. CALL TO ORDER/PLEDGE OF ALLEGIANCE.
6 The meeting was called to order at 6:05 P.M., followed by the Pledge of Allegiance
7 led by Mayor Ranallo.
8 II. ROLL CALL.
9 Councilmembers Present: Ranallo, Marks, Enrooth, Wagner and Faust.
10 Councilmembers Absent: None.
11 Also present: Mike Morrison, City Manager and Kim Moore-Sykes, Management
12 Assistant.
13 III. CITY HALL/COMMUNITY CENTER UPDATE.
14 The City Manager reported to the Council that the proposed addition to the new
15 City Hall/Community Center is estimated to cost approximately $70,000 rather
16 than the earlier estimate of $40,000. The Council directed the City Manager to
17 contact the Sports Boosters. The City manager reviewed the proposal for
8 Community Services storage that is estimated to cost an additional $18,000.
9 The City Manager also reported that the change orders for the scoreboard
20 installation, realignment of the storm sewer and the driveway extension between
21 parking areas will be before the City Council at the June 25th meeting.
22 IV. REVIEW UPDATED TAX INCREMENT FINANCING AMENDMENTS.
23 The City Manager presented a report from the auditor regarding the Kenzie
24 Economic Development District. This district was established to provide economic
25 development funds to the St. Anthony Shopping Center storeowners. They
26 declined and the funds continue to be in this account. Several options were
27 discussed; the City Manager will contact the City Attorney.
28 V. 1997 ROAD PROJECT.
29 The City Manager presented a proposal from RCM regarding an estimate to provide
30 engineering design and construction services for the reconstruction of streets and
31 water main improvements for 1997. He also provided a proposed schedule for 1997
32 streets improvement project. The Council discussed the need to review the street
33 repair priority list as it compared to the RCM proposal. Council also discussed the
34 process by which interest on a special assessment is determined. Staff recommends
35 that interest be assessed on December 1 for all street improvement projects.
VI. 1997-1998 POLICE SERVICES CONTRACTS.
46 The City Manager reported that Falcon Heights City Council has approved the
1 two-year Police Services contract. The City of Lauderdale is considering their
• contract at this evening's City Council meeting.
3 VII. REVIEW POSSIBLE CONDITIONAL USE PERMIT CHANGES.
4 The City Manager reviewed the proposed changes to the City Code regarding
5 conditional use permits as developed by the Planning Commission.
6 VIII. METROPOLITAN COUNCIL ACTION PLAN.
7 The City Manager presented the preliminary draft of the City's proposed 5-year
8 Housing Action Plan for the Livable Communities Act. He reported that once the
9 City Council approved the draft, it will be sent to the Metropolitan Council for
10 review and comment.
11 IX. SCHOOL - CITY JOINT ISSUES.
12 The City Manager presented staff's recommendation regarding the election
13 memorandum of understanding with School District 282. It was determined that
14 the School District be charged costs associated with the City Clerk running the
15 School Board elections.
16
17 X. OTHER BUSINESS.
18 1. Silver Lane Turnback. The City Manager reported that Ramsey County is
19 proposing to turnback Silver Lane from Stinson Boulevard to Silver Lake
0 Road to the City. The City will need to adopt a resolution before the
County can approver the transfer. Ramsey County will agree to repair
2 Silver Lane with an overlay, which will occur this fall.
23 2. Silver Lake Bridge. The City Manager reported that he and the Public
24 Works Director met with Ramsey County engineers in order to present
25 plans to repair the bridge that goes over the railroad tracks at Silver Lake
26 Road and 37th Avenue N.E. Proposals for signals at 39th Avenue N.E./
27 Silver Lake Road and Silver Lake Road/Silver Lane will be reviewed at the
28 June 11th Council Meeting.
29 3. Cub Groundbreaking. The City Manager indicated that August 1st is the
30 proposed date for the groundbreaking ceremonies from 5:00 P.M. - 7:00 P.M.
31 The Chamber of Commerce will provide hot dogs, beverages, etc.
32 4. Sister City Reception. A reception will be held on July 19 in honor of
33 Tellervo Lassooy-Saura and her husband, visiting from Salo, Finland.
34 XI. ADJOURNMENT. The City Council worksession adjourned at 8:00 P.M.
35
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