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HomeMy WebLinkAboutCC WORKSESSION 03041997CITY OF ST. ANTHONY CITY COUNCIL WORK SESSION AGENDA March 4, 1997 7:00 P.M. Council Chambers I. CALL TO ORDER. II. ROLL CALL. Page(s) III. DISCUSS SAV 2 STORE ............................... 1 -22 V. APACHE PLAZA UPDATE. VI. REVIEW PROSECUTING ATTORNEY ARRANGEMENT .......... 23-27 VII OTHER BUSINESS. A. Proposals for Storm Water Management plans .............. 28 B. Proposal from BRW, Inc. relating to park planning ........ 29-30 C. Early retirement policy ........................... 31 - 35 D. Discuss disposition of old office furniture ................. 36 VIII. ADJOURNMENT. 51- AFF REPORT DATE: February 24, 1997 TO: Mayor and Councilmembers FROM: Michael Morrison, City Manager ITEM: SAV 2 LIQUOR STORE As you know, the City has been negotiating with First Bank over the past six months regarding securing space at the Tires Plus building for our municipal liquor store. First Bank, over the past two months, has presented the City with two options in relation to the Tires Plus building. The first option is to lease the building and the second option is to purchase the building. The economics of both options is as follows: Option 1 - Leasin Years 1- 5 7.25 Years 6 - 10 7.50 Years 11 - 15 7.75 Plus $275,000 of HRA funds to pay for some of the improvements. TOTAL PAYMENTS OVER 15 YEARS -- $1,231,925 Lease rate average over 15 years with $275,000 -- $9.66 per square foot These payments are paid back with sales from the liquor store. Advantages Disadvantages *No bonds to issue *Don't own anything after 15 years *Good lease rates Option 2 - Purchasing $725,000 to purchase the building with HRA funds. Tires Plus will pay lease payments to the City over the 15 years in an estimated amount of $1,069,558, which in essence pays the City investment back. The City then issues a liquor revenue bond for $650,000 to pay for the construction of the liquor store expansion, as well as possible facade F SAV 2 Page 2 improvements. The liquor revenue bond is paid back with sales from the liquor store. TOTAL COST TO CITY WITH INTEREST AFTER 15 YEARS -- $1,209,254. Annual net rate of liquor bonds over 15 years Advantages * Less per square foot over the 15 years *The City owns the building and is debt free after the liquor bonds are paid off in 15 years *Tires Plus lease gives City opportunity to get $725,000 back. Under the lease, the $275,000 is not paid back -- $9.48 per square foot Disadvantages *Issuance of liquor revenue bonds *Upkeep of building If you are interested in purchasing the building, it is recommended Council approve the Purchase Agreement on March 11th to keep the process going. DORSEY & WHITNEY LLP MINNEAPOLIS WASHINGTON, D.C. LONDON BRUSSELS HONG KONG DES MOINES ROCHESTER COSTA MESA Hand Delivered Mr. Michael J. Mornson City of St. Anthony 3301 Silver Lake Road St. Anthony, MN 55418 Re: Tires Plus Lease Dear Mike: PILLSBURY CENTER SOUTH NEW YORK 220 SOUTH SIXTH STREET MINNEAPOLIS, MINNESOTA $5402 -149$ DENVER TELEPHONE: (612) 340 -2600 SEATTLE FAX: (612) 340 -2868 FARGO William R. SOth BILLINGS (612) 340 -2969 F= (612) 340.7800 MISSOULA soth.wllliam ®doneylaw.com GREAT FALLS February 25, 1997 As we discussed, I am enclosing a copy of the Tires Plus lease review by one of my associates. As you can see, it appears to be a rather favorable lease for the landlord. We know nothing, however, about the credit of the tenant. Please let me know whether you have any questions or comments. Very yours, 11iam R. Soth WRS /ms Enclosure i LEASE REVIEW 1. LANDLORD: Ste. Marie Company 2. TENANT: Ronald Rasmussen and Judith V. Rasmussen dba Tires Plus 3. DATE OF LEASE AND ANY AMENDMENTS: Lease dated July 15, 1996, as amended by Amendment #1 dated September 30, 1996. 4. TERM OF LEASE: August 1, 1996 - July 31, 2011 (Sections 4 and 6 of data sheet) 5. RENT (Section 2 of Amendment #1 and Section 6 of Lease): Rent is as follows: Period Annual Rent Monthly Rent $ /PSF 8 -1 -96 through 7 -31 -97 $62,595.50 $5,216.29 $ 9.50 8 -1 -97 through 7 -31 -02 69,184.50 5,765.38 10.50 8 -1 -02 through 7 -31 -07 75,773.50 6,314.46 11.50 8 -1 -07 through 7 -31 -11 82,362.50 6,863.54 12.50 For the first option period, the annual minimum rent shall be the then current market rent for similar commercial property in the Minneapolis /St. Paul metropolitan area; provided, however, such minimum annual rent shall not be less than the annual minimum rent for the prior period or greater than 10% over the annual minimum rent for the prior period. For the second option period, the annual minimum rent shall be the then current market rent for similar commercial property in the Minneapolis /St. Paul metropolitan area; provided, however, such annual minimum rent shall not be less than the annual minimum rent during the first option period or greater than 10% over the annual minimum rent for the first option period. Tenant also pays percentage rent for each lease year equal to the amount, if any, by which 3% of the gross sales exceeds the threshold amount of $57,851.42. Percentage rent is paid quarterly within 15 days after the expiration of each three -month calendar period. Landlord has the right upon 10 days prior notice to Tenant to make a special audit of Tenant's book and records pertaining to gross sales. If the audit discloses a discrepancy greater than 2% of gross sales, Tenant is required to pay the cost of the audit. If the discrepancy is more than 3% of gross sales, or if Tenant fails to permit the inspection or audit of its records, then Landlord has the right to terminate the Lease. Landlord has the right to audit Tenant's books and records for a period of three years after the close of each lease year. 5 6. LATE PAYMENT PROVISION late in the payment of any rent, the delinquent amount. (Section 6D): If Tenant is more than 10 days Tenant shall pay a late payment fee of 5% of (Section 20): Tenant has a 10 -day grace period before an event of default occurs. Landlord is required to give Tenant one late notice payment annually. Thereafter, within such 12 -month period, Tenant's failure to pay the rent within 10 days following the date due shall be deemed an event of default with no further notice required. (Section 29B): Any amount due from Tenant to Landlord which is not paid when due, except for the payment of rent which is not more than 30 days past due, shall bear interest from the due date until paid at the rate of 20% per annum or the maximum interest rate allowed by law, whichever is less. 7. SECURITY DEPOSIT (Section 12 of the data sheet): $2,000 8. RENTABLE SQUARE FEET (Section 1 of Amendment #1): 6,589 square feet 9. OPERATING EXPENSES RECOVERY A. Common Area Maintenance (Section 12): Tenant pays its proportionate share of operating and maintenance expenses of the common areas. B. Real Estate Taxes (Section 9): Tenant pays to Landlord its proportionate share of real estate taxes and special assessments levied against the property. C. Insurance (Section 13B): Tenant is required to pay its proportionate share of the cost of the premiums for Landlord's insurance. D. Utilities (Section 11A): Tenant pays for all utilities including without limitation electricity, natural gas, telephone, water and sewer service used in the premises. 10. MAINTENANCE OBLIGATIONS (Section 12): Landlord has the typical obligations to keep the foundations, exterior and interior load bearing walls, the roof, and downspouts and gutters of the building in good condition and repair. The Tenant is required to do all snow and garbage removal, maintain the glass, all electrical, plumbing, HVAC and drainage systems and the premises in good condition. Except for decorating changes and other non- structural alterations which do not exceed the cost of $1,000 in the aggregate, Tenant shall not make any repairs, alterations, replacements, improvements or additions to the premises without the prior written consent of the I � W Landlord, which shall not be unreasonably withheld so long as the alterations do not adversely affect the structure, systems, common areas, exterior or value of the building. 11. SIGNS (Section 4D): Tenant has the right at its own expense to install and maintain one or more signs affixed to the exterior of the premises; however, the locations, specifications and designs must be approved by Landlord in advance. Tenant also has the right to maintain one reader board on the monument to be erected at the shopping center, which reader board shall be in the upper position. 12. OPTIONS TO EXTEND OR RENEW LEASE (Section 7 of the data sheet): Two periods of five years each 13. OPTIONS TO EXPAND OR RIGHT OF FIRST REFUSAL ON ADDITIONAL SPACE: None 14. USE PROVISION (Section 8 of the data sheet): The Premises shall be used by the Tenant solely for the purpose of conducting and operating the business of a typical Tires Plus franchise and for no other purpose. 15. RADIUS RESTRICTION (Section 5): Tenant agrees not to either directly or indirectly operate any other retail store within a two -mile radius of the premises of a type similar to the one authorized by the Lease. 16. PARKING REQUIREMENT (Section 12E): Parking is restricted to a portion of the shopping center shown on Exhibit B -1 of Lease. Parking for Tenant's employees is located on the west side of the premises. If Tenants and its employees, agents, sublessees, licensees, concessionaires, contractors, customers, and their invitees fail to park their cars in the designated area and if the problem continues for three days following written notice by Landlord to Tenant, Landlord shall have the right to charge Tenant $10 per day per car parked in any areas other than those designated. 17. FIRE AND INSURANCE CASUALTY PROVISION (Section 18): Landlord has the option to terminate the Lease if the casualty occurs within the last three years of the lease term or 25% or more of the premises is rendered untenantable by the casualty. Furthermore, Landlord has the option to terminate the Lease if Landlord is unable to obtain the necessary permits for the restoration of the premises or if the holder of any mortgage requires that insurance proceeds be paid on the mortgage. Tenant may terminate the Lease if more than 10% of the floor area of the premises is damaged and Landlord has not substantially completed such reconstruction within 210 days. 18. INSURANCE (Section 13): Tenant is required to keep the typical types and amounts of insurance. Landlord is required to insure the improvements 7 located upon the shopping center in an amount not less than the greater of 80% of the full insurable value of the buildings or the amount sufficient to prevent Landlord from becoming a co- insurer. Landlord is also required to obtain rent loss insurance for a period of not less than six months. Landlord's insurance costs are passed through to the Tenant. 19. CONDEMNATION PROVISION (Section 17): If 25% of more of the parking area in the subject parcel or at least 25% of the rentable area of the subject parcel is taken or at least 25% of the square footage of the premises is taken, then Landlord has the option to terminate the Lease on 60 days' prior written notice to Tenant. If one -third or more of the floor area of the premises is taken, then Tenant may elect to terminate the Lease upon 10 days' prior written notice to Landlord. If all or a portion of the parking area is taken such that the remaining available parking area does not meet the governmental requirements, then Tenant may notify Landlord in writing that it intends to terminate the Lease unless Landlord makes sufficient parking available in a location reasonably accessible to the premises in order to meet the required governmental standards for the premises. Landlord has 90 days from the date of receipt of Tenant's notice to provide such substitute parking. The award for any taking shall be the sole property of Landlord. 20. PROVISIONS REGARDING WITHHOLDING, OFFSETTING OR ABATING RENTS: None 21. SUBORDINATION PROVISION (Section 21): Tenant's rights under this Lease are subordinate to any mortgage, ground lease or other security instrument hereinafter placed upon the shopping center or any part thereof; provided, however, that non - disturbance is required so long as Tenant is not in default under the Lease. 22. ESTOPPEL CERTIFICATE (Section 29R): Tenant agrees to execute estoppels upon 10 days' prior written request by Landlord. Tenant appoints Landlord as its attorney -in -fact to execute such estoppel in the event Tenant fails to do so within 10 days following receipt of Landlord's request. 23. ASSIGNMENT /SUBLEASING (Section 16): Tenant may not assign the Lease or sublet the premises without the prior written consent of Landlord, which consent may be withheld in Landlord's sole discretion. All rentals received by Tenant from any subtenants in excess of the rent payable by Tenant to Landlord under this Lease shall be payable to Landlord. El 24. PURCHASE OPTION OR RIGHT OF FIRST REFUSAL TO PURCHASE (Section 29V): Tenant has a right of first refusal to purchase the subject parcel (subject parcel is shown on Exhibit B -1 of Lease) separate from the shopping center. If Landlord decides to market the subject parcel as a separate parcel, then Landlord shall give Tenant written notice thereof which notice will state the sale price and other material terms. Provided that Tenant is not in default under the Lease, Tenant shall have 10 business days following receipt of the offer notice to accept the offer notice by submitting to Landlord a purchase agreement executed by Tenant and acceptable to Landlord which incorporates the terms specified in the offer notice together with earnest money in cash in the minimum amount set forth in the offer notice. If Tenant does not do so within the 10 -day period, Tenant shall have no further rights to purchase the property and upon request by Landlord, shall deliver to Landlord a termination certificate acceptable to Landlord. The right of first offer provision does not include any reoffer provisions. The terms of the right of first offer do not apply to any sale or other transfer of the subject parcel to an affiliate of the Landlord. 25. SUBLEASE: None 26. GUARANTY (Section 13 of the data sheet): None 27. LEASE COMPLETENESS: A. Is Lease fully executed? Yes B. Are all exhibits attached? Yes C. Are all amendments and addenda attached to Lease and executed? Yes 28. MISCELLANEOUS (Section 10G): Landlord has the right to withdraw any portion of the common area from the shopping center or the subject parcel as may be necessary to construct additional buildings or additions to existing buildings or make any other modifications to the shopping center. (Section 22) Tenant indemnifies Landlord against all claims, costs and losses arising from any hazardous materials on the shopping center from Tenant's business. Tenant is permitted to use, handle, store and dispose of petroleum products and batteries incidental to Tenant's business in compliance with all laws and subject to Tenant obtaining all necessary permits therefor. I MEMORANDUM DATE: February 18, 1997 TO: Mayor and Councilmembers Planning Commission Members FROM: Michael Mornson, City Manager ITEM: AMENDMENT TO THE CITY OF ST. ANTHONY REDEVELOPMENT PLAN On October 8th, the City Council and Housing and Redevelopment Authority (HRA) will call for a public hearing to amend the City's Redevelopment Plan. On November 12th, the hearing will be held. Prior to the hearing, the Planning Commission will review the amendment to the Plan and submit a written opinion which will be the minutes of the September 17, 1996 meeting. The City of St. Anthony will hold a hearing to amend its Tax Increment Financing (TIF) and Redevelopment Districts. The City does not intend to establish a new district, nor to extend the life of the existing districts. The purpose of the amendment is to allow the City to make additional expenditure of tax increment funds in order to facilitate additional residential and commercial development. The benefit to the City will be an increase in property value and jobs. The following is a list of additional possible expenditures authorized by the St. Anthony City Council and HRA. Project Activity Redevelop vacant property between Industrial Custom Products and the Amoco Station on 37th Avenue NE Bridge work along Silver Lake Road between 37th Avenue NE and Silver Lane (new) Funds That Could Be Authorized $233,000 (new) $100,000 Old Clark Station property redevelop- $40,000 ment on Stinson Boulevard (existing) (up $10,000 from previous plan) )O Amendment of City Redevelopment Plan Page 2 Project Activity Redevelop bowling alley property on Kenzie Terrace (existing) Redevelop St. Anthony Shopping Center area along New Brighton Boulevard and Kenzie Terrace (existing) Redevelop vacant lots by Twin City Federal Redevelop 10 residential lots by Kenzie plus add Kentucky Fried Chicken, pizza, video properties and Firstar lot Redevelop Apache Plaza area Community Center site work Street scape within the City Delete $500,000 for Lowry Grove expenditure because of change in ownership. New expenditure total (existing) (existing) (existing) (existing) (new) Funds That Could Be Authorized $40,000 (down $20,000 from previous plan) $60,000 (up $25,000 from previous plan) $75,000 (up $15,000 from previous plan) $1.3 million (up $500,000 from previous plan) $820,000 (up $520,000 from previous plan) $100,000 (issued bonds) $250,000 $1,533,000 In June, 1995, the City amended their Redevelopment Plan and as a result, the following activities have occurred. Prolect Money Authorized Village Commons, 12 $150,000 value between $160,000 to $180,000 $1.9 million Amendment of City Redevelopment Plan Page 3 Project Arbors Townhomes, 16 Valued at $180,000 $2.9 million Industrial Custom Products $1.2 million retained plus 65 jobs Apache Plaza $4.5 million, CUB Store plus 250 jobs Community Center Money Authorized $260,000 $125,000 $300,000 plus $1.5 million in bond proceeds $2.65 million bonds issued The City invested $835,000 in the 4 redevelopment projects from the 1995 amendment and will increase or retain value of $10,500,000 and 315 jobs will be created. Benefits of Using TIF in This Manner 1. Less cost to taxpayer by not having to set up new district. 2. Less cost to taxpayer by not being penalized LGA. 3. Less cost to taxpayer by not having to issue bonds. 4. Immediate gain in tax value to some properties not in the district. Status of Existing TIF Districts TIF Tyne Increment District Terminates *Chandler Housing $240,000 per year 2010 *Kenzie Terrace Housing $461,910 debt until 1999 2008 Evergreen Townhomes 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 expenditures. iz + + ° « « °4 8 $I O �W 0 cr p ° ° o o O o in °o a o 0 Y Q N n O °O JO m^ O UZu� o ° o>.6 Jwl N u Za N O 2 c W a m rna wl m U Qa w c m c o L' °' N Q m�mrn °nQ ZO O ° i Cl) �M n m °oO o Swop 2 (p fm ail mfOlj N I m W f9 (A f�U U3�' w 0 W w W N Z « « } + « + d m o ¢o 00 00 0 0000 0 00 � a— oam c„mo 0 j O N N O pp00 O N O O r m m m m �\ ° O W ruE -� N 0 0 Z LL O 3 C a vl Z FU G Z W m Z Q W Q N C«^ O Q i Q C7 fO J b N N 5 0 �I W V co m m d U J m } 0 ° O C - m N 0 0 0 w m ` OJ m S C W wN C6 N Q Y M o] C7 Q d W $ W m 0 a a a LIL N 'C m 2 J V Ol^ m O m0I C N c M J w m w Z m z a Q m ¢ z N o m 0 E E o an d m 0 o a > a v m a Jm W E m N m m Ir 2 «_ J cm m C y a m_ E w° a OI N a U U N R 5 a + « « « « iz 13 ST. ANTHONY MUNICIPAL HRA PROJECTS FUND (REVIEW OF FUND ACTIVITY) HRA PROJECTS FUND Fund Started 12 -31 -91 $856,728.00 Transfer of Funds to Establish Fund 1992 Revenues: Interest — Admin $65,130.00 Expenditures: General Expense /Admin ($19,473.00) 12/31/92 902 385.00 1994 Revenues: Interest — Admin $173,917.00 Sale of Land $58,000.00 3112 Silver Lake Road Expenditures: General Expense /Admin ($13,398.00) 12/31/94 $596,475.00 1993 Revenues: Interest — Admin $127,992.00 Expenditures: $57,305.00 3111 Silver Lake Road Land Acquistion ($397,200.00) Rosie's Site Improvements ($241,134.00) General Expense /Admin ($14,087.00) 12/31/93 377956.00 1994 Revenues: Interest — Admin $173,917.00 Sale of Land $58,000.00 3112 Silver Lake Road Expenditures: General Expense /Admin ($13,398.00) 12/31/94 $596,475.00 1996 Revenues: Interest — Admin $275,783.00 Expenditures: General Expense /Admin $0_00 Undetermined 12/31/96 $1.075.329.00 1995 Revenues: Interest — Admin $207,227.00 Sale of Land $57,305.00 3111 Silver Lake Road Expenditures: Land Acquistion ($42,800.00) General Expense /Admin ($18,661.00) 12/31/95 799 546.00 1996 Revenues: Interest — Admin $275,783.00 Expenditures: General Expense /Admin $0_00 Undetermined 12/31/96 $1.075.329.00 %i U) 0) c C L as W V L 0 C ° C5 75 0 ° f� C (n Q) C N L >1 Q Ef} C O o '0 O) (O (n Q CZ N Q W 0 i3 01 S E a) a) -0 U ° .E (n Lq W Q Z Q d II U Y d Q 0 0 C) O O O 00001 m ° ° o °° (n > 0 o 0 0 00 00 0 0 0 00000 WW 0 0 0co (n 00000 co coc•)vco a °O (°9 �L1�cv T jo � m oiccococh m It LO CDr(7 z K 64 ssE»E»c» O 6 S z v Q s c~n 0)0)°000 (a 0)0)000 a U a) r T N N N 0 C U + c N in co C m i } m 0 7 CO LO Q LL V 0 c C_ \ 'a W W E (n ro C -° (D (n = E O Q O 7 C 'O O d O -C N N L .¢r NN a) a) N ca U c H U a) rn rn o I rn I m a) n C) (u 0) ro T N N i CY E ((n cn r a J a a r W KKE Korc::nsky $rank Erickson A rcluscez'. JAC. Post•it• Fax Note 7671 FAX 3 d 1 -9261 95 -0e- 1171— Mr. Michael J. Morrison City Manager Saint Anthony Village 3301 Silver Lake Road St, Anthony, Minnesota 55418 -1699 Re: Proposed Liquor Store at Apache Plaza St. Anthony, Minnesota Dear Mike: f� r via fax 781- 9323 It was a pleasure meeting with you and Mike Larson recently to discuss construction options for your proposed new liquor store. As you requested, we have prepared the following proposal to provide professional services to complete the design of this store. Thank you for extending us this opportunity as we are anxious to continue our relationship from the initial phases of this project. Our knowledge of your operations, having completed the Schematic. Design Phase already, will greatly assist us in providing you with a successful store in your new location. We are prepared to proceed immediately upon your acceptance of our proposal and look forward to hearing from you shortly. If you prefer to work from the contract format you sent me rather than this letter proposal, that would be acceptable to us with a few minor exceptions, Once again, we sincerely appreciate the opportunity to work with you again. Should you have any questions regarding our proposal, please feel free to call me. . Sincerely, KKE ARCHTIT, TS A41r �4- Thomas E. Gerster, AIA Principal /Ja Enclosures file: 95081 l79 \le 1997\0225tg l i n;y:ia: hrz!1;n 80/10 'd LK6 +Zb£ +Z19 'ON Xdd IS 3X71 Nd 9£;ZO 03N L6- 9Z -83J I&I Description SAVLiquor The proposed project is a liquor store for the City of St. Anthony Village of approximately 8,500 square feet consisting of a 4,800 square foot addition and the remodeling of approximately 3,700 square feet of the existing Tires -Plus Building at Apache Plaza in St. Anthony Village, Minnesota. Tires -Plus remains a tenant in the south end of the building occupying approximately 6,800 square feet. The Architect's basic services do not include any work associated with either the exterior or interior of the Tires -Plus portion of the building. The remodeling will include the demolition of an existing 1,475 square foot mezzanine, the removal of a stair into the existing basement and inftll of the existing stair opening, infill of existing exterior wall openings and addition of new exterior wall openings. The new addition will be a one -story building with a new stair to the existing basement. There will be no canopy overhang on the new addition. The structural system will consist of a steel bar joist/metal deck roof system supported by an interior steel beam and column line and exterior load bearing CMU walls. The Schematic Design Phase has been completed under a separate contract. The project will proceed based on the Schematic Design drawings prepared by KKE Architects, Al - A3 dated August 13, 1996. The Architect's basic services consist of those described herein and include normal Structural, Mechanical, EIectrical and Civil Engineering. The project has already received Planning Commission and City Council approval. It is anticipated that Authorization to Proceed with the remaining phases of the project will occur in mid - March. The project will be competitively bid and will be awarded to the lowest qualified bidder. We will not be responsible for preparing any Statements of Probable Construction Costs. The Owner is proceeding with the project based on the Valu Engineering of a previous Preliminary Cost of Construction prepared by Welsh Construction. Any changes to the project after the bids are received as a result of the project being over the Owner's budget shall be considered as additional services. A preliminary project schedule is attached. &&L Architects i de Lr y 25, 1991 fit 9503117925,PM,0,6 80 /ZO'd LH6 +Zb£ +Zi9 ON XU 3NN Wd 9£20 0817 L6- 2-889 of Services SCHEMATIC DESIGN PRASE SAY Note: The Schematic Design Phase has been completed under a separate agreement as it relates to the architectural and civil engineering portions of the work. This phase is shown for reference only and the fees associated with this phase have been previously paid by others and are not included in this proposal. • Meetings, as required, with the Owner to review the Owner's program to ascertain the requirements of the project. • Prepare alternative approaches to the building's design for review with the Owner. • Based upon the approved design approach, prepare schematic design documents consisting of drawings and other documents illustrating the scale and relationship of project components. • Coordination with the Owner in establishing the fixture plan. • Preparation of building code analysis based on the approved fixture plan. • Coordination of site plan with civil engineering consultant regarding grading, drainage and utility matters. • Preliminary design analysis and preparation of preliminary Grading and Drainage Plan and Utility Plan as prepared by Westwood Professional Services under separate contract. DESIGN DEVELOPMENT /CONSTRUCTION DOCUMENT PHASE • Based upon the approved schematic design as shown in the drawings Al - A3 prepared by KKE and dated 8/13/96, preparation of construction documents Setting forth the requirements for the construction of the building shell and interior improvements as follows. Architectural: • Drawings, including floor plans, exterior elevations, wall sections /details, roof plan, interior elevations, reflected ceiling plan and room finish and door schedules. • General construction specifications Structural Engineering: • Design analysis and drawings, including footing and foundation plans, floor framing plan, roof framing plan, sections and details. (We assume that the soil will allow for the design of conventional spread footings.) • Structural specifications KKEArchitects Flbr Ary A. Iw7 !k: onsl nnzsicmp� !-7 SUM Id L926 +eV6 +eI9 'ON Xd.d 3XX Nd 9£ 1 ZO 03N L6 -9d -M Services Mechanical and Electrical Engineering: SAV Dquor Design analysis and drawings, including plumbing, fire protection, $VAC, lighting and power. • Mechanical and electrical specifications. Civil Engineering: • Final design analysis and drawings including Grading and Drainage Plan, Utility Plan, Paving and Spot Elevations Plan and Miscellaneous Details. • Specifications. BIDDING /CONSTRUCTION ADMINISTRATION PHASE • Telephone consultation, as required, with the bidders to provide clarifications or interpretation of the contract documents during biding. • Preparation of Addenda, as required, during bidding. • Assist the Owner in obtaining bids and assist in review of bids and awarding contract for construction. • Telephone consultation and issuance of memorandum or drawings, as required, to assist the general contractor in the clarification or interpretation of the contract documents during construction. • Review of shop drawings. • Site observation and written report - we have included the followingSite observation visits (this includes the final inspection and punch list). Architectural 4 Structural 2 Mechanical 2 Electrical 2 Civil 1 • Review contractor's Application and Certification for Payment. • Prepare Certificate of Substantial Completion. • We will provide the architectural and engineering basic services, as described above, for a fixed fee of $38,500.00 plus reimbursable expenses. AAA- Arcnrtects Fa." M 1997 M.: 9568117925/piepm i 80 /b0 'd LK6 +En +d[8 ON Xd3 3DA Wd K20 03N L6 -K -83. Scope of Services SA v • Additional services requested, not outlined as part of this proposal, shall be billed at our standard hourly rates. • List of Consulting Engineers: Structural: Ericksen Roed & Associates Mechanical/Electrical: Nelson -Rudie & Associates Civil: Westwood Professional Services OWNER RESPONSIBILITIES • Provide a current Certificate of Survey and Legal Description. • Provide civil engineering, including site development drawings during the Schematic Design Phase. Final civil engineering documents will be included as part of the Architect's basic services. • Provide landscape design if required. The extent of what is necessary is unknown, however, this can be provided as part of the Architect's Basic Services as an additional service. • Provide soils exploration report with recommendations for soil bearing capacity (we have assumed the soil is adequate for the design of conventional spread footings). • Provide catalog cuts of all Owner - furnished equipment. PAYMENT FOR SERVICES Payment for professional services shall be rendered on a monthly basis and are due upon receipt. A monthly finance charge at an annual rate of 12% will be charged on any unpaid balance after thirty (30) days. KKE ARCHITECTS Name: Thomas E. Gerster, AIA Title: Principal Date: 2 Z(Q 77 KKE Architects F14l -MY 14. 1477 rlc 45081 n•MS /Oropo911 Accepted by: CITY OF ST. ANTHONY VILLAGE Name: Title Date I `I 80 /90'd LM +EbS +M 'ON XH M Wd 9620 03M L6 -9d -831 2 % Q § \\ i2 ir� / } � | 80/90 'd aKB+E+M ONxv 2& ]!! w E ;3 ea! 362;5 § ) ` $ | § d \ § 80/90 'd aKB+E+M ONxv 2& ]!! w E ;3 ea! 362;5 KKE K- Alrimy &rank F.reckxvn A rchitccts, Inc. jC0 i'i:::t Avvnvc 5orc11 ,V.N 5i4t)I _._ APPENDIX B PREVAILING REIMBURSABLE EXPENSES Description Cost Blueprints* Drafting Mylars* $.35 -1.55 Foam Core Boards* 1.50-8.00 Photocopy 4.00-14.00 Color Copies (8` /x x 11) .20 $2.00 /Copy Plus Set Up Color Copies (1 I x 17) $3.00 /Copy Plus Set Up Fax Photocopy Stickyback .50 /page Technical Typist 1.50 Specification Diskettes 32.00/hour Mileage 10.00 Parking .31 /mile Other Transportation As billed to KKE Meals/Lodging As billed to KKE Long Distance Telephone As billed to KKE Postage/Delivery Charges As billed to KKE Model, Sample, Rendering As billed to KKE Materials /Supplies As billed to KKE Codes/Ordinances As billed to KKE Legal As billed to KKE Consultants As billed to KKE CAD Equipment Usage Cost plus 25% Electrostatic Plotter E Size Usage 20.00/hour 15.00 /sheet Project reimbursable costs will be charged at cost plus 10 016. *Depending on size Effective January 1, 1997 Subject to Periodic Adjustment Z SO /LO'd ZH6 +M +e19 'ON Xdd M Nd L£20 GM L6- 9d -83d 80/80 'd KKE xomrs$y h -aril. E;iCk�ou A. chitccti, 1,c. !li: !qts, Aec::ua Non'i MN 55401 G 2.'Jj9 ?W! APPENDIX A PREVAILING HOURLY RATI✓S Position Architects and Tecbnical Staff Designer Project Architect Project Manager /Senior Project Architect Specification Writer Vice President Principal Interior Designer Vice President, Interior Design President, Interior Design Inspecting Architect Effective January 1, 1997 Subject to Periodic Adjustment L9 W6 C +M 'ON Xdd 21 Rate Per Hour $35.00 - 65.00 75.00 - 85.00 65.00 80.00 80.00 85.00 110.00 - 135.00 32.00 - 65.00 70.00 110.00 85.00 M Nd LE20 08N L6- 9Z -83. VI. REVIEW PROSECUTING ATTORNEY ARRANGEMENT. FOSTER, OPLE, WENTZEU & BREvER, LLC ATTOILNM AT LAW Thomas E. Brevet Joseph A. Wentzell* Michael E. Ojile Robert J. Foster Steven F. Carlson, of Counsel Leslie M. Witterschein February 27, 1997 Mr. Michael Morrison, City Manager City of St. Anthony 3301 Silver Lake Road St. Anthony, MN 55418 Dear Mr. Morrison: M Suite 201 Anthony Place 2855 Anthony lane So. St. Anthony, MN 55418 Telephone: (612) 789 -1331 Fax: (612) 789.2109 HAND DELIVERED Also Admitted in fix, This will confirm our recent telephone conversation in which we discussed our firm's interest in continuing with the prosecution contract with the City of St. Anthony for 1997 -1998. We understand that this is a yearly renewable contract and we would agree to do that contract for a fee of $3,000.00 per month. In our previous meeting with you and the Chief of Police, we provided you with information that showed the additional resources that we have committed to this contract, including a greatly increased amount of attorney time. I believe that the consensus from that meeting was that the service to the community of St. Anthony has greatly increased as a result of that increased commitment by our firm. I would ask that you share the information that we provided to you with the Mayor and the St. Anthony City Council. I apologize for the delay in submitting this letter to you. I was trying to get a consensus from all of my partners regarding this proposal and was never able to reach all of them at one time during this week. Thank you in advance for your consideration of this proposal and the consideration of the St. Anthony City Council. If you have any questions, please contact me. RJF:dk e Qj J 5 17 v) y� ]l Y J 0 p p P � Q o� 24- --�qq11 �V 23 0 0 d } 1 J J 25- rJ Iz �, 0 27 1996 City of St. Anthony Hourly Recap Total Hours Hourly Rate 1/96 41.50 52.05 2/96 27.75 77.84 3/96 30.40 71.05 4/96 23.75 90.95 5/96 32.25 72.56 6/96 33.50 69.85 7/96 33.15 70.59 8/96 25.25 92.67 9/96 40.70 57.49 10/96 50.10 46.71 11/96 39.45 59.32 12/96 59.50 39.33 1/97 78.72 29.73 VI. OTHER BUSINESS. A. Proposals for Storm Water Management plans. MEMORANDUM DATE: February 21, 1997 TO: Mayor and Councilmembers FROM: Michael Mornson, City Manager ITEM: STORMWATER MANAGEMENT PLANS The City has received five proposals from engineering /planning firms to develop a stormwater management plan in accordance with state laws. The firms and costs are as follows: Barr Engineering ....................... $26,050 BRW, Inc. .................... $21,340 Westwood Professional ................... $36,490 WSB .............................. $25,100 Bonestroo, etc ......................... $24,850 Staff will interview the five firms over the next two weeks. We will make a recommendation to the Council at the March 11th or 25th Council meeting. The questions I have for the Council are as follows:. 1. Do you want to interview the firm staff recommends? 2. Who should be involved with the development of the Plan - a) City Council; b) Planning Commission; c) Comprehensive Plan Task Force? There will be some public information process, meetings, etc., which will need to be followed. The development of a storm water management plan is a requirement of the state statutes. The Metro Land Planning Act also states that cities will not get their comprehensive plans approved unless they have an approved storm water management plan. It should be understood from the beginning that simply having a drainage plan will not make drainage problems go away. It is especially true in fully developed communities like St. Anthony. VI. OTHER BUSINESS. B. Proposal from BRW, Inc. relating to park planning. ,Z 9 February 24, 1997 B R W INC. Mr. Michael J. Momson City Manager Saint Anthony Village 3301 Silver Lake Road St. Anthony, MN 55418 Dear Mr. Mornson: Denver Thank you for the opportunity to submit this proposal for preliminary park Prepare several design alternatides for the layout of up to six tennis courts, planning at the new City Center and Central Park facilities. Per our discussion we have prepared the following work outline: ' Planning - Transportation Engineering 1) Prepare project area base plan from building architects' drawings. Jrban Design 1. - 1 Orlando 2) Review / study existing Central Park facilities, overall physical/environmental Thresher Square conditions and project requirements. - 700 Third Street So. .. Minneapolis, 3) Examine city's other park facilities (in conjunction with comprehensive MN 55415 planning efforts) in relation to those at Central Park. Recommend facility 612/370 -0700 changes if, deemed necessary. Fax 612/370 -1378 Denver 4) Prepare several design alternatides for the layout of up to six tennis courts, three ball fields, a tot lot and associated walkways and landscaping. Milwaukee Minneapolis Newark 5) Present plans and recommendations to City staff and Community Recreation / Orlando Education committees for review and discussion. Phoenix Portland 6) Refine plans into preferred alternative and prepare a preliminary estimate of San Diego construction costs. Seattle 7) Prepare colored overall plan of Central Park improvements for presentations and discussions. prepared to begin the work upon your acceptance of this proposal and the execution of a work order from your office. We anticipate completing the work over the next several months so that the improvements could be constructed this summer. 30 Michael I Momson February 24, 1997 Page 2 We would be interested in preparing a fee proposal to execute construction ready plans and specifications for the improvements, should you decide to bid out the construction work. If you have any questions please call meat 373 -6421. Once again, we appreciate the opportunity to be of service and look forward to assisting the City with finalizing the Central Park and City Center improvements. Sincerely, BRW, /IN�C. / �vv / Bob Kost, ASLA Project Manager BK/dc cc: Suzanne Rhees File BK> W&Lm VI. OTHER BUSINESS. B. Early retirement policy. 31 DORSEY & WHITNEY LLP MINNEAPOLIS PILLSBURY CENTER SOUTH WASHINGTON, D.C. 220 SOUTH SIXTH STREET LONDON MINNEAPOLIS, MINNESOTA 55402 -1498 BRUSSELS TELEPHONE: (612) 340 -2600 HONG KONG FAX: (612) 340 -2868 DES MOINES William R. Soth ROCHESTER (612) 340 -2969 COSTA MESA Faa(612)340 -7800 soth-william @dorseylaw.com February 11, 1997 Mr. Michael J. Mornson City Manager City of St. Anthony 3301 Silver Lake Road St. Anthony, MN 55418 Re: Early Retirement Policy Dear Mike: NEW YORK DENVER SEATTLE FARGO BILLINGS MISSOULA GREAT FALLS You asked me to review proposed Resolution 97 -021 setting a policy for early retirement for City employees. I have reviewed the resolution and have discussed the policy with lawyers in our employment law and employee benefits groups. We have the following comments regarding the proposed policy: 1. I understand from discussions with you that you are satisfied that there is authority from the State of Minnesota for the City to have such a retirement policy. 2. I understand that someone at the City has discussed this with the City's medical insurer. You should make sure the City will be able to provide the three years of coverage being proposed. You should also be sure that this will have no adverse effect on the health insurance costs for other City employees. 3. The policy must not discriminate against any person by reason of age, gender, race, or other protected class. 4. I would suggest that you delete the proposed requirement that there be demonstrated financial benefit to the City on a case by case basis. DORSEY & WHITNEY LLP Mr. Michael J. Morrison February 11, 1997 Page 2 As we discussed, the City should be able to determine now what employees would qualify by reason of being over age 55 and having 25 years of service. You can then determine whether most cases are likely to result in financial benefit to the City. This would eliminate any subjective case by case financial test, which should also eliminate any claims that any particular class of employees is being favored over another. I have revised the proposed resolution in order to eliminate the financial benefit requirement and to clarify the other requirements. A copy is enclosed. Please let me know whether you have any further questions or comments on this. Very tr y yours William R. Soth WRS /ms Enclosure 3z 33 CITY OF ST. ANTHONY RESOLUTION 97 -021 A RESOLUTION SETTING POLICY FOR EARLY RETIREMENT INCENTIVE FOR CITY OF ST. ANTHONY EMPLOYEES WHEREAS, the City of St. Anthony has considered a proposal for an early retirement policy for certain City employees; and WHEREAS, the City intends for any decision for such early retirement to be a voluntary act by the employee to be made in the employee's sole discretion; and WHEREAS, the City wishes to limit the period of time during which employees may elect to take such early retirement; and WHEREAS, the City is willing to provide certain post retirement medical insurance coverage for City employees electing such early retirement. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of St. Anthony as follows: 1. The policy shall apply only to full -time employees of the City who: (a) qualify for Public Employees Retirement Association ( "P.E.R.A. ") annuity payments as qualifying P.E.R.A. Basic or Coordinated Members, and (b) are age 55 or older on the effective date of the retirement, and (c) have completed 25 years of service as a full -time employee of the City on the effective date of the retirement. 2. The employee will be required to sign an election to take such early retirement, stating that the decision is the voluntary act of the employee made entirely in the employee's sole discretion. 3. The written decision to take the early retirement must be given by the employee to the City on or before November 30, 1997. 4. The City's policy for early retirement must continue to be authorized by the State of Minnesota. If such authority is modified or terminated, the City's early retirement policy will be subject to change on the basis of such change in the State policy. Commencing on the day following the date of retirement, the City will provide individual Single Health Coverage for the retiring City employee (but not the employee's family) for a period not to exceed three years from the effective date of the retirement. Adopted this day of , 1997. ATTEST: City Clerk Reviewed for administration: Mayor City Manager 34- 3s Annual Present Lurace Employee Age Yrs. of Ser Annual Salary Costs Larry Hamer 62 37 $ 56,432 $2,246 Dick Engstrom 58 30 $ 55,678 $2,246 Steve Koes * 55 30 $ 26,998 $2,246 Barb Hickerson 58 28 $ 33,267 $2,246 Diane LeClaire 58 30 $ 38,970 $2,246 * Will turn 55 during window of opportunity. VI. OTHER BUSINESS. B. Discuss disposition of old office furniture. 3G " ST. ANTHONY - NEW BRIGHTON 'NDEPENDENT SCHOOL DISTRICT 282 3303 33rd Avenue N.E., Minneapolis, Minnesota 55418. Telephone 706 -1000 February 24, 1997 Mayor Clarence Ranallo St. Anthony City Council Members 3301 Silver Lake Road St. Anthony, MN 55418 Dear Clarence and City Council Members, Several months ago I asked Mike Mormon if the school district could have priority on any furniture /equipment you were not planning to use in the new community center. He later indicated that this would be no problem. Recently, our building principals and I looked at the "left overs" and decided there are several things we can use in the schools. I have begun to mark them. The question I have is: Will we be asked to pay for those items we would take? Seems to me this would be asking the taxpayers of St. Anthony to purchase these items twice. Please let me know what you decide. Then we will make our decisions regarding which items we will select. Thanks for your consideration! Sincerely, Warren J. Rolek Superintendent of Schools WJR/sb P. S. Great Dedication Ceremony!! 'Someplace Special" 37 MEMORANDUM DATE: February 26, 1997 TO: Michael J. Mornson, City Manager FROM: Kim Moore - Sykes, Management Assistant ITEM: Meeting with Custom Liquidators I met with Gary, owner of Customer Liquidators, regarding the old furniture. He said that there are some pieces there that he could sell once refurbished, but there is alot that is worth only what he could get a scrap metal dealer. He felt that if he took it all, that what he would pay for the good pieces would equal his transportation and labor costs incurred in taking the whole lot. He will have an estimator out tomorrow so that he can give us a better idea of what we can get for the useable pieces of furniture. He estimated that he could sell the desks and credenzas in good shape for about $25.00 apiece. (Most of those had Warren's tape on them). Chairs could go for about $15.00 - $20.00 each. The other pieces that he couldn't sell but weren't ripped or too damaged, he could give to the Goodwill Industries. The rest, he will haul away either to the garbage or scrap metal. He figured there were about 8 - 9 truck loads in the gym. Essentially, his best offer will probably to haul it all away and call it square. Tim Hayes, from General Office Product, who was out yesterday indicated the same; the furniture is not really worth anything. In fact, he said the City would be better off to have an auction if they wanted a return on the furniture. But we would have to haul away any items that were left over from an auction So we have to decide, once the estimates come back from GOP and Custom Liquidators, whether we should have an auction and deal with it ourselves or let Custom Liquidators take it all for what he can get for it. CITY OF ST. ANTHONY 2 CITY COUNCIL WORK SESSION MINUTES February 4, 1997 7:00 P.M. 5 I. CALL TO ORDER /PLEDGE OF ALLEGIANCE. 6 The meeting was called to order at 7:00 P.M. 7 II. ROLL CALL. 8 Councilmembers Present: Ranallo, Marks, Enrooth, Wagner and Faust. 9 Also present: Michael Mornson, City Manager; Kim Moore - Sykes, Management 10 Assistant; Roger Larson, Finance Director; Mike Larson, Liquor Operations 11 Manager; Carrie Luther Hennepin County Assessor's Office; and Glen Busitzky, 12 Hennepin County Assessor's Office. 13 III. DISCUSS UPCOMING BOARD OF REVIEW MEETING WITH HENNEPIN 14 COUNTY APPRAISERS GLEN BUSITZKY AND CARRIE LUTHER. 15 Mr. Busitzky reported on the activity of the Hennepin County Assessor's Office in 16 the Hennepin County portion of St. Anthony. He indicated that the home sales 17 market was not as active in Hennepin County as in previous years. Townhomes 18 continue to be a strong market, with 4.7% increase in market value. Ms. Luther 19 indicated that they will be sending out postcards informing residents of the date when they will be assessing properties in their neighborhood. She reported to the Council that she gains access to about 60% of the homes she is appraising. The 22 Board of Review is tentatively set for April 8, 1997. 23 IV. REVIEW WATER AND SEWER RATES. 24 The Finance Director reviewed the water and sewer budgets for 1997 submitted by 25 the Public Works Director. He indicated that the current rate charged for water 26 usage is not sufficient to balance the 1997 water operating budget. He reported the 27 same was true of the sewer budget. It was determined to change the ordinance to 28 have a small increase in the sewer and water rates in order to balance the budget. 29 V. SAV II STORE. 30 The City Manager reported that he mailed the letter of understanding and intent to 31 purchase to Larry McCabe, Ste. Marie Company. He indicated that he spoke with 32 Mr. McCabe, who informed him that not everyone has had a chance to review the 33 letter. The Finance Director also reviewed a memo with the Council that he 34 prepared comparing leasing options to purchasing options. Staff will continue to 35 research purchase versus leasing options and report back to the Council. 36 VI. APACHE PLAZA UPDATE. 37 The City Manager indicated that he has nothing new to report. VII. REVIEW INFORMATION REGARDING STREET IMPROVEMENT 3 HEARINGS. 40 The City Manager reported Councilmember Faust will not be at the February 11th 41 meeting and that Resolution 97 -017 requires 4 /5ths vote to be approved. He also I - I reported that the Council will be approving the bond sale at the March 11th 2 Council Meeting. The City Manager reported that there are MSA funds available for repairs on 33rd } Avenue NE. He indicated that a portion of 33rd Avenue could be done this year 5 ad the City would receive some of the funds in December, 1997. 6 VIII. DISCUSS FEBRUARY 22ND BUILDING DEDICATION AND OTHER 7 BUILDING ISSUES. 8 The Mayor indicated that he will be sending a letter of invitation to City, State and 9 County political officials. The City Manager reported that City Staff will be at 10 various tables throughout the new building, providing information about City 11 services and programs. 12 The City Manager discussed a letter he received from the architect regarding the 13 status of the punch list for the new building. 14 IX. OTHER BUSINESS. 15 1. Kenzie Terrace. The City Manager updated the Council on the status of 16 property along Kenzie Terrace. The City now owns the Lundeen property 17 and has a purchase agreement for 2534 Kenzie Terrace. 18 2. Volunteer Dinner. Possible dates and speakers for the Volunteer Dinner 19 were discussed. 3. Review of Early Retirement /Insurance Option. The Finance Director I reviewed his memo regarding the cost effectiveness of City paid insurance 22 premiums to City employees who are eligible to take early retirement. 23 4. Prosecution Attornev. The City Manager reported that things are going well 24 with the prosecuting attorney's office. He also mention that their contract 25 will be up this year. 26 5. Change of Polling Place. The City Manager reported that the City Clerk 27 has indicated to him that she will have to move the polling place from 28 Apache Plaza due to the ongoing redevelopment activities occurring there. 29 The Manager indicated that the Clerk will file the necessary forms to have 30 the polling place relocated to Wilshire Park Elementary School, if available. 31 6. No Accidents for 3rd Year. The City Manager reported that the City has 32 had no accidents with lost time for the 3rd year in a row. 33 X. ADJOURNMENT. 34 The work session was adjourned at 10:15 P.M.