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HomeMy WebLinkAboutCC WORKSESSION 08302010Work Session Agenda August 30, 2010 5:30 p.m. (sandwiches at 5:15 p.m) 1. Pratt Update. Stacie Kvilvang Ehlers & Associates and Jay Lindgren Dorsey & Whitney, Presenting. 2. Proposed Tobacco Ordinance Kim Moore -Sykes Assistant City Manager. Presenting 3. Proposed Ordinance 1306 Amendment John Malenick Fire Chief Presenting 4. Grant Update. John Malenick Fire Chief, presenting. 5. Other Business 6. Adjourn. Nest worksession October 4 Tentative Remaining Worksession schedule, November 1 and November 30 (after mhool board meeting) CITY OF ST. ANTHONY CITY COUNCIL WORKSESSION City Council Chambers August 2, 2010 5:30 p.m. Work Session Meeting Minutes Present: Council: Jerry Faust, Mayor; Jim Roth, Councilmember; Hal Gray, Councilmember; Jan Jenson, Councilmember; and Randy Stille, Councilmember. Staff: Mike Mornson, City Manager; Kim Moore - Sykes, Assistant City Manager; Mike Larson, Liquor Operations Manager, John Malenick, Fire Chief; Roger Larson, Finance Director; John Ohl, Police Chief; Jay Hartman, Public Works Director; and Don Drusch, Assistant Fire Chief/ Fire Marshall. Also Present: None Absent: None Call to Order. Meeting called to order by Mayor Faust at 5:30 pm. 1. Budget Overview. Mike Mornson, City Manager, gave an overview presentation of the May 3, 2010 work session, whereby the consensus of the City Council was that they wanted to see a 2011 budget that had no increase in the General Operating budget. The Finance Director briefly summarized the chart on page 2 that compared the proposed tax levy for 2011 to 2010, showing no increase in the proposed tax levy for 2011. He also reported that as it stands, 2011 is the last year that levy limits will be in effect. Larson indicated that the legislature could change that at the next session. The Finance Director also reported that based on items discussed at the May 3rd budget worksession, the proposed 2011 budget shows a 3.68% increase over the 2010 budget. Mornson reviewed the 2011 budget calendar with the Council. He stated that he plans to present the 2011 budget at the August 24th City Council meeting, which is the meeting prior to the September 14w meeting where the Council will be adopting the resolution that sets the 2011 property tax levy and the 2011 budget. The City Manager and Finance Director provided information regarding the financing of Emerald Park, the reduced Road Improvement Levy and the allocation of $68,808 from the Chandler TIF District. Morrison also stated that the Department Heads have worked hard to find money through donations and grants and tightening their department budgets. Discussion Councilmember Gray indicated that he would like to have a better sense of what expenditures are increasing and asked staff to provide that information. He stated that he doesn t get a clear sense of the percentage of increases in costs the individual departments are dealing with. He asked if the costs are inflationary or deflationary. Discussion. C: \Documents and Settings \barb.sucMLocal Settings \Temporary Internet Files \OLK24 \Council Staff worksession 08022010.doc 2. Capital Equipment Budget. The City Manager reported that the capital equipment budget totals $330,400, with revenues coming from Liquor Operations profits, MSA Revolving funds, Fund Balance, and interest. He also reported that when possible, grants and donations are sought. Momson indicated that proposed expenditures for the Police amount to about $120,000; Fire expects expenditures to be approximately $58,000; and Public Works propose $80,000 in expenditures for 2011. Discussion. 3. Fire Pumper Discussion/Capital Equipment Certificate. The City Manager and the Finance Director presented information regarding Certificates of Indebtedness. Mornson stated that the City has historically financed large pieces of equipment with Certificates of Indebtedness. Other cities finance their large equipment needs in the same manner. Momson suggested that if the City Council considers using Certificates of Indebtedness that the certificates should be paid for with funds from Capital Equipment revenues. It was stated that using Capital Equipment funds for a certificate of indebtedness for a fire pumper may prevent the fire department from purchasing other capital equipment needs. Discussion. The Fire Chief responded to Council request to evaluate the possibility of providing the same level of service with two pumper trucks instead of three. Chief Malenick reported that 3 pumpers certainly provide a depth of security for the community and a level of self - reliance in that the City would not have to rely on neighboring communities to provide fire service to our community. He also reminded the Council that having the third truck also maintains 80% seating capacity for fire fighters when responding quickly to an emergency. He also stated that maintenance for the older vehicles is estimated to be between $600 - $700 /year, not including major repairs. The Chief also said that parts are difficult to find for older trucks. When asked about the return on the investment when the fire department has on average one major fire event every 8 years, the Chief reported that pumpers are used for training so that the staff is ready for any fire event and can respond within the time that the residents have come to expect. The Fire Chief also reported that there are several commercial buildings in the Village that are not sprinkled. Discussion. 4. Metropolitan Council - Livable Communities Act. The City Manager stated that the City has participated in the Metropolitan Livable Communities Act since 1996. The City is being asked to continue its participation for another 10 years. By electing to participate, the City is eligible for grants and loans that support the City s ongoing efforts in meeting its affordable and life -cycle goals. The City Manager stated that this item would be on the August 10th Council consent agenda. 5. Community Garden Update. Jay Hartman, Public Works Director, gave a report on his research of other cities with community gardens, their costs, the community needs and soil testing results. He stated that based on information he received from the site's soil borings and master gardens that he talked to, it is estimated that it will cost the City about $40, 000 to prepare the site to make it suitable for growing vegetables. Discussion. 6. Other Business. The City Manager stated that the next work session is scheduled for August 31, 2010. There will be a joint meeting with the School Board at 5:15pm, prior to C: \Documents and Settings \barb.suciu \Local Settings \Temporary Internet Files \01-1t24 \Council Staff worksession 08022010.doc the work session meeting. Mornson stated that the items to be discussed are the tobacco ordinance, Chapter 1306 Building Code adoption and 2011 Capital Equipment summary. Adjourn. The work session adjourned at 8:20pm. Minutes respectfully submitted by Kim Moore- Sykes, Assistant City Manager. C: \Documents and Settings \barb.suciu \Local Settings \Temporary Internet Files\OLK24 \Council Staff worksession 08022010.doc Wol rr CD Memo To: Mike Momson — City Manager From: Stacie Kvilvang Date: August 30, 2010 Subject: Development Agreement — Phase III Silver Lake Village Redevelopment At the August 10, 2010 City Council meeting, the Council requested a work session regarding the Phase III Development Agreement. At the meeting Council provided staff direction on the following proposed deal points: 1. Further refinement of the definition of commencement of construction 2. Priority of repayment to City for the Fannie Mae loan with regards to the Phase IA make up note III addition, Council wanted to review its options again for pursuing a default action on the existing agreements versus the current option of executing a new agreement. As you recall, the proposed Phase III agreement would cover the following proposed developments: Parcel New Phase Development Development Valuation Vacant Apache Office Site x Phase IIIA 80 to 100 Senior Apt $5.6 to $7 Million JA Cadawallader Office Site 40 Senior Co-Op $4.8 Million Baker's Square Parkin Phase II1B 51000 to 10,000 Sq /Ft Commercial $4.2 to $5.6 Million Vacant Don's Car Wash Site Fuel Mart and Fuel Mart Car Wash Phase IIIC 80 to 100 Unit Senior Continuum of Care $5.6 to $7 Million TOTAL N/A N/A $20.2 to $24.4 Million * 'Phis phase could consist of one development of 100 to 120 senior apartments as well On August 19 °i and 23`d staff met with the developer to discuss the proposed deal points in question and proposed resolution. Further refinement of definition of commencement of Construction: As you recall, the current agreement states that they have until December 31, 2011 to "commence construction" on any one of the three above referenced developments. The current language stated that the definition of commence construction was pulling a building permit for a particular phase. The reason that pulling a building permit was the definition was the developer was concerned that if they had all approvals from the City and those approvals were finalized in November or December, they may want to wait until spring to begin construction to avoid difficulties and additional costs associated with construction in the winter. If they waited until spring, they technically would be in default under the new agreement if the definition meant beginning of actual construction. 3060 Centre Pointe Drive 10 E H L E RS Roseville, MN 55113 -1105 LEADERS IN PUBLIC FINANCE Phone: 651- 697 -8506 Fax: 651- 697 -8555 skvilvang@ehlers-inc.com Mike Morrison Development Agreement— Phase III Silver Lake Village Redevelopment August 30, 2010 Page 2 Based upon direction from the Council, we have added a provision that they have to provide proof of financing for the project, which is similar language we had in the prior agreements. The thought is that if they have formally obtained their bank financing, they intend to move forward with the project. Staff is comfortable with leaving the remaining definition of commence construction as pulling a building permit, as long as the developer has also provided adequate proof of financing. The reason being is that by the time a developer pulls a building permit, they have expended hundreds of thousands of dollars, if not over a million on purchase of the land, architect and engineer fees (to provide city full plans for review to obtain the permit), and paid park dedication and SAC /WAC fees to the City. For example, to move forward with Phase IIIA with a 100 -unit apartment complex, the developer would have paid approximately the following in fees: Land Acquisition $1,000,000 Architect /Engineer $300,000 Park Dedication $150,000 SAC /WAC $353.100 TOTAL $1,803,100 Staff also recommends adding language to the Agreement stating that the developer must have closed on the purchase of the land, to make sure that is understood by all parties (secondary developers other than Pratt). Priority of repayment to City for the Fannie Mae loan with regards to the Phase IA make up note The prior agreement had the following priority of repayment of the City's $2.6 million investment in land acquisition (repayment of Fannie Mae loan): I . Land sale proceeds from the purchase of the vacant portion of land in Phase IIIA 2. All increment generated by the commercial development that isn't needed to pay debt service on the commercial TIF Revenue bonds 3. All increment generated from non developed parcels (i.e. Equinox, etc) 4. All increment generated from Phase IIIA, Phase IIIB and Phase IIIC not needed by the development The Council raised concerns with the developer receiving their profit make up note from Phase IA (the 2 condominium buildings) when the City may not yet be reimbursed for its capital outlay for Fannie Mae. Based upon discussions with the developer they propose that the City and the developer split any tax increment not needed to pay debt service on the Phase IA TIF revenue bonds 50150 until the City is reimbursed 100 percent. It should be noted that the reason for the 50/50 split is that the developer had concerns that due to the Phase IA partnership being made up of multiple entities (another developer and a bank), they didn't think all parties would agree to allow the City to have priority of 100 percent of the increment until they are repaid. If agreeable to the City, following is the break down of how the City may be potentially repaid the $2.6 million investment: Repayment of Interfund Loan InterfundLoan Amount $2,630,000 Balance $2,630,000 Future Unobligated Commercial TIF (No inflation) ($600,000) $2,030,000 Land (Sale) Citys Parcel - 100 Sr. Apt Units (Phase IIIA) ($450,000) $1,580,000 50% of Phase IA TIF Not Needed for TIF Bonds (No inflation) ($500,000) $1,080,000 Unobligated TIF (Non developed panels) ($1,080,000) $0 Mike Mornson Development Agreement— Phase III Silver Lake Village Redevelopment August 30, 2010 Page 3 Other requests of the developer The developer was of the opinion that if the above deal points were implemented, they would receive little if any profit from Phase IA. In addition they were of the opinion that there wasn't much of an incentive to them to make sure that all portions of Phase 111 were implemented (they want to be able to make up for approximately $2 million loss as Master Developer). In light of this, they requested the Council consider the following three additional deal points: Any increment not needed for development of the Phase 1116 or Phase IIIC development be split 75/25 between the City and developer (previous deal point was 100% until City is repaid, then 100% to developer) 2. The City issue a subordinated TIF note to the developer ( "C" note), payable from TIF not needed to pay debt service on the commercial TIF revenue bonds once the City is reimbursed 100% for their $2.6 million capital outlay; and 3. Extend the term of the Agreement from 18 months (December 31, 201 1) to another date (i.e. additional 6 months or a year). Review of options for default of agreement versus new agreement The confidential, attorney - client privileged memorandum dated February 22, 2010 from Dorsey & Whitney will be provided to the Council again under separate cover. This memorandum was provided to the City Council and discussed at a March 1, 2010 work session. From this work session, staff was given direction to work with the developer to negotiate a new agreement. In addition, staff met with Council at their work session on April 12, 2010. From this work session, the City sent the attached letter to the developer on April 13, 2010. The developer did respond by the required April 30, 2010 date and that's when formal negotiations for the terms of the proposed Phase III agreement began. Please contact me at 651- 697 -8506 with any questions. cc: Jay Lindgren — Dorsey & Whitney File April 13, 2010 VIA ELECTRONIC AND U.S. MAIL Apache Redevelopment, LLC Attention: Len Pratt 3500 Willow Lake Boulevard Vadnais Heights, MN 55110 Re: Silver Lake Village Dear Len: Silver Lake Homes I, LLC Attention: Len Pratt 3500 Willow Lake Boulevard Vadnais Heights, MN 55110 This letter is written on behalf of the City of Saint Anthony ("City") and the Housing and Redevelopment Authority of the City ( "Authority "). It is written to you as contact person for each of the above - referenced entities, as relevant, under the Redevelopment Agreement by and among the City, the Authority and Apache Redevelopment, LLC ( "Apache ") dated December 19, 2003, as amended (the 'Phase I RDA ") and the Phase II Redevelopment Agreement by and among the City, the Authority and Apache dated November 9, 2005 (the 'Phase II RDA "). On April 8, 2010, the City and the Authority received a proposal (the 'Proposal ") from you to amend the Phase I RDA and the Phase II RDA. The City and the Authority will not accept the terms of the Proposal. However, the City and the Authority will accept the following: The Phase I RDA and the Phase II RDA will be amended by approximately June 1, 2010 (the "2010 Amendment "). 2. The 2010 Amendment will allow 18 months for successful commencement of either the Phase IB or the Phase II elements (as generally described in the Proposal and as finally approved by the City Council). 3. The City or the Authority will, upon execution of the 2010 Amendment, receive from Apache Redevelopment, LLC a deed to the portion of Phase IB on which the Authority holds a mortgage. The City and HRA will only support the tax increment program outlined in the Phase I RDA and the Phase II RDA. The City and HRA, however, recognize that current market conditions will require a public contribution of approximately $1,000,000 by the City to satisfy the Fannie Mae loan. That contribution is illustrated, for Phase 1 B, in the attached chart. The City and the Authority will give you until April 30, 2010, to accept this Proposal. Until then, please contact Stacie Kvilvang at Ehlers & Associates to discuss any additional details. Please note that this offer expires on April 30, and if it has not been accepted by that date, the City and the Authority will immediately pursue all default remedies available to each under the Phase I RDA and the Phase II RDA. 3301 Silver Lake Road, St Anthony, Minnesota 55418 -1699 • www.ci.saint- anthony.mn.us • (612) 782 -3301 -FAX(612) 782 -3302 Our Mission is to be a progressive and livable community, a walkable village, which Is sale and secure. Si�ely„ /I,_ Mich el Mornson City Manager /Authority Executive Director Attachment cc (via e- mail): Daryl Gemar John Herman Stacie Kvilvang Jay Lindgren City of St. Anthony Phase 1B Options Mae Repayment of Funds: $2,630,500 :ity Funds $950,2 5% Land (Sale) - 120 Units - $6,000 /Unit $396,0 00% Net Proceeds of Phase 1B TIF Note $1,284,1 Mae Repayment of Funds: Funds $803,369 Vo Land (Sale) 1B2- 60 Units - $10,00 /Unit $600,000 Proceeds of Phase 1B1 TIF Note $668,388 Proceeds of Phase 1B2 TIF Note $558,743 ' HORSEY MEMORANDUM PRIVILEGED & CONFIDENTIAL ATTORNEY - CLIENT COMMUNICATION TO: Mayor and City Council Michael Mornson, City Manager CC: Stacie Kvilvang, Ehlers & Associates Jerry Gilligan, Dorsey & Whitney LLP FROM: Jay R. Lindgren DATE: February 22, 2010 RE: Silver Lake Village Options BACKGROUND The City and the HRA (both referred to herein as the "City ") entered into agreements ( "Redevelopment Agreement ") with Apache Redevelopment, LLC ( "Apache') regarding redevelopment of portions of the area commonly known as Silver Lake Village. Certain rights and obligations of Apache regarding housing development within Silver Lake Village were subsequently assigned to a secondary developer, Silver Lake Homes I, LLC ( "Silver Lake Homes "). For ease of reading, Apache and Silver Lake Homes are sometimes referred to herein interchangeably as "Developer." A number of defaults under the Redevelopment Agreement by Apache and /or Silver Lake Homes have occurred and are continuing. These defaults include: Failure to make principal and interest payments on the Fannie Mae loan in the amount of $748,381; Failure to reimburse City expenses for consulting fees in the amount of $140,629.35; and Failure to timely pay real estate taxes on portions of Silver Lake Village. The City accepted a mortgage (the "Mortgage') on certain property commonly known as the Phase 1 B Property (sometimes referred to herein as the "Property ") from Apache as security for Apache's obligations to repay the Fannie Mae loan and pursuant to the Redevelopment Agreement. The loan documents have been amended and extended, partially due to the economic downturn. In April 2009, Fannie Mae required that the City assign to it the Mortgage, as additional security and in consideration of Fannie Mae further extending the maturity date of DORSEY 8 WHITNEY LLP HORSEY the loan through December 31, 2010. Apache has defaulted on its obligations under the loan, so the City has been making the required payments to Fannie Mae. Payments on the Fannie Mae loan are due as follows: Payoff Schedule For Fannie Mae .. Paid to Date By City $ 748,381 Remainina Loan Balance $ 1,882,090 April 1, 2010 Payment $ 210,697 Remaining Loan Balance $ 1,671,393 July 1, 2010 Payment $ 210,697 Remaining Loan Balance $ 1,460,697 October 1, 2010 Payment $ 210,697 Remaining Loan Balance $ 1,250,000 December 10, 2010 Balloon Payment $ 1,250,000 Remaining Loan Balance $ ISSUE If Developer remains in default and payment of amounts due to the City are not paid, what options does the City have to be reimbursed for its investment (approximately $2.6 million)? SHORT ANSWER We have identified four options for your consideration. Regardless of the option the City chooses to pursue, it should immediately serve Developer with notice of default, and plan to pay off the Fannie Mae loan by December 31, 2010. Doing so accomplishes two key tasks necessary to move the project forward: (a) it demonstrates to the Developer that the City is serious about pursuing its remedies; and (b) it starts the lengthy cure period running, thus allowing the HRA to take control of the Property in approximately six months, if necessary. ANALYSIS Option One: Continue with the Current Developer. The first option is to continue with Apache as the Master Redeveloper and Silver Lake Homes as the Phase 1 B developer This would require the City to continue to make the Fannie Mae payments and wait for a proposal by Developer (presumably for either senior co -op housing or rental housing). From a real estate perspective, this option has a few disadvantages. First, the City currently has an interest in ensuring the success of the project, but no longer has the rights of a mortgagee under the mortgage, since those rights have been assigned, so it may not enter the Property to protect the asset. It is relying on Apache, as fee owner, to continue to care for and maintain the value of the Property in a challenging market and under increasingly difficult HUD requirements, where Apache has been in default under several provisions of the Redevelopment Agreement over extended periods of time. 2 DORSEY & WHITNEY LLP C)ORSEY Second, the City must continue making the Fannie Mae payments to avoid a foreclosure on the Phase 1 B Property. Apache has had some success in marketing the Property, but has persistently failed to make the payments owed to Fannie Mae, so that obligation has fallen to the City. These payments continue until the maturity date of December 31, 2010. Presumably, the cash will be recoverable from Apache once the Property begins to generate income. Option Two: Put Developer in Default Immediately; City Pays Fannie Mae in Full; and Replaces Developer. In light of the above disadvantages, and in order to best protect the asset, another option is to pay off Fannie Mae at the earliest possible time and obtain a termination of the assignment of the Mortgage from Fannie Mae. Doing so would restore the rights of a mortgagee in the City, which gives the City considerably more control over the Property. I also recommend serving the Developer with an updated notice of default. Pursuant to the Redevelopment Agreement and in light of the current economic conditions, the Developer has up to 180 days to cure a default. Serving such a notice not only starts the clock ticking for the City to exercise other remedies under the Mortgage, but demonstrates to Developer that the City is serious about exercising such remedies.' Another advantage of paying off the Fannie Mae loan at the earliest possible time is that the City will have additional default options under the Mortgage. The Mortgage provides that the City may pursue all available remedies immediately upon an event of default under the Mortgage. This includes commencing foreclosure proceedings against the Property. Unlike the Redevelopment Agreement, there is not a time period for the Developer to cure the default. So, once the Fannie Mae assignment of Mortgage is released, the City again has rights under the Mortgage. Taking this option to its logical conclusion, and assuming the HRA pays off the loan to Fannie Mae and that Apache does not cure its defaults under the Redevelopment Agreement and the Mortgage, the HRA could commence a foreclosure beginning on the date the Fannie Mae loan is paid in full by the City. A foreclosure by advertisement takes approximately eight months to complete. In addition, the City could terminate the Developer's rights under the Redevelopment Agreement 180`h day after the new notice of default is served. Thus, the HRA would own fee title to the Property approximately 8 months after Fannie Mae is paid in full. By this time, the cure period under the Redevelopment Agreement would have also run and the City could proceed with another developer for the Property. Of course, the City will need to find the funds to pay -off Fannie Mae. The remaining balance on the Fannie Mae Loan is approximately $1,882,000 (inclusive of interest payments). As noted in the chart below, the City currently has identified funds of approximately $1.328 million to go towards repayment. Staff and Ehlers will review options for the remaining $560,000 needed to retire the debt. ' On October 2, 2008, the City provided a Notice of Default to Apache for failure to commence construction of the Phase 1 B element. The City may have a reasonable basis to claim that this notice satisfies the requirements of the Redevelopment Agreement and that, therefore, the period for cure rights has expired. However, since the Fannie Mae loan is not due until December 31, 2010, we recommend issuing a new default notice identifying all on -going defaults. DORSEY & WHITNEY LLP 0CDRSEY $ Amount 210,697 Source Water Filtration $ 210,697 * Chandler TIF (Pooling Dollars $ 210,697 * Chandler TIF (Pooling Dollars $ 690,000 ** Apache Cub TIF 25% oolin dollars $ 560,000 TBD $ 1,882,090 N/A * Unrestricted TIF dollars since pre -1990 TIF district ** Restricted TIF dollars since created in 2003. Can only be used for "qualified" redevelopment activities If the City pays off the remaining balance, it will have paid the entire amount of the loan that was extended (approximately $2.6 million). Once the City has title to the Phase 1 B land, it is anticipated that it would be repaid when development commences as follows: City Outstanding Loan City Outstanding Loan Amount on 1 -1 -11 $ 2,630,471 Land Sale Proceeds from Phase 1 B Land $ 1,500,000 TIF Generated From Phase !B $ 1,130,471 Remaining Balance $ Note: If the City were to utilize tax increment from both the Chandler and Apache Cub TIF districts, the Council could decide that these funds don't need to be repaid since they are "pooled" TIF dollars to accomplish redevelopment. If this was the case, the remaining unpaid balance would be approximately $1.5 million. A third option is to put Apache in default immediately, with the ultimate goal of replacing it as Master Redeveloper, while attempting to negotiate and extension of loan terms from Fannie Mae. As stated above, in order to exercise the rights of the mortgagee, the HRA must have those rights reinstated by paying off Fannie Mae and obtaining a termination of the assignment of the Mortgage. Option Two requires that the HRA continue the Fannie Mae payments as and when due, and Option Three requires that the HRA pay off the loan as soon as possible. From a real estate perspective, recommend that the loan be paid in the near term and in any event within the 180 day cure period. Since the HRA cannot exercise any of its real estate remedies during this cure period, there is no real advantage to paying off the loan prior to the expiration of the cure period. The Mortgage allows the mortgagee to obtain the appointment of a receiver. A receiver, once appointed, would step into the shoes of Apache to protect the asset and hopefully generate revenue from the Property. Apache will likely argue that a receiver may not be appointed until applicable notice and cure periods have run, so I again recommend serving notice upon Apache that it is in default to commence the running of the cure period. 4 DORSEY & WHITNEY LLP HORSEY The foreclosure period will still take approximately 14 months to complete after a default notice is served, but a receiver can be appointed to take over the Property promptly after the six month cure period has lapsed. During the cure period, the HRA can identify a replacement redeveloper, and such redeveloper can take control over the Property as receiver. Though a court action is usually required to obtain the appointment of the receiver, the HRA will then have the benefit of implementing the new redeveloper's plans much more quickly than the requisite 14 months required in a foreclosure. I also recommend proceeding with the foreclosure action to regain fee title to the Property in a timely manner. Option Four: Walk Away from the Project. A fourth option is for the City to start the default process with the Developer and to cease City payments to Fannie Mae. This would likely result in a Fannie Mae foreclosure on the Property. In addition, the City has pledges its general obligation to the Fannie Mae loan, so Fannie Mae is likely to seek a judgment against the City. Therefore, though the City does legally have the option of walking away from the project and defaulting on the loan, this option risks exposure for breach of contract and other legal claims. Due to the potential liabilities and risk of damage to the credit of the City, we have determined that the HRA choosing to default under its obligations is not a desirable course of action. RECOMMENDATION The City should serve a renewed notice of default on the Developer as soon as possible. Doing so now gives the City maximum flexibility whether or not it chooses to continue to work with Apache. During the 180 cure period which the Developer has under the Redevelopment Agreement, the HRA should pay off the Fannie Mae loan and determine whether it wants to continue working with Apache as master redeveloper. Paying off the Fannie Mae loan will allow the City to take control of the Property at approximately the same time as the Developer's cure period has expired. This strategy best protects the City's asset going forward, even if the Developer cures the current defaults. 5 DORSEY & WHITNEY LLP STAFF REPORT To: Michael J. Momson, City Manager Mayor and City Council From: Kim Moore - Sykes, Assistant City Manager Date: August 30, 2010 Subject: Tobacco Ordinance Revision Attached is a copy of the proposed revised tobacco ordinance for Council's review and consideration. Background: On May 16, 2007 Gov. Pawlenty signed into law the Freedom to Breathe provisions that expanded the Minnesota Clean Indoor Air Act (Section 144.411 - 144.417) to protect employees and the public from the health affects of secondhand tobacco smoke. Minnesota's smoking ban, as it is known, became effective on October 1, 2007. While it banned smoking from most public places and its purpose was to enforce the "protection of the public health ", the Freedom to Breathe Act also clarified where smoking was permitted. Tobacco products shops are included as an allowable smoking place for the specific purpose of sampling those products. As passed and signed into law, the Freedom to Breathe Act does not define "sampling" and as such, smoking lounges of all sorts have become legal as the result of the sampling provision. While no definition exists, the Freedom to Breathe Act does not limit the authority of local jurisdictions to be more restrictive in protecting the public from secondhand tobacco smoke. The proposed revision to the City's current tobacco ordinance does define sampling and seeks to be more restrictive by prohibiting all sampling of tobacco, tobacco products and tobacco related devices. Attachment: • Proposed Amended Tobacco Ordinance. 07272010 Council Staff Rpt IHOPs CUP.doc CIGARETTES TOBACCO REGULATIONS § 111.045 PURPOSE. The City recognizes that many person under the age of 18 years purchase or otherwise obtain, possess, and use tobacco. Tobacco products, and tobacco related devices, the sales, possession, and use are violations of both state and federal laws. This subchapter is intended to regulate the sale, possession, and use of tobacco, tobacco products, and tobacco related devices for the purpose of enforcing and furthering existing laws, to protect minors against the serious effects associated with the illegal use of tobacco, tobacco products, and tobacco related devices, and to further the official public policy of the State of Minnesota as stated in M.S. § 144.391, as may be amended from time to time. (1993 Code, § 510.01) § 111.046 DEFINITIONS. For the purpose of this subchapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning. COMPLIANCE CHECKS. The process the City uses to investigate and ensure those authorized to sell tobacco, tobacco products, or tobacco related devices are complying with the requirements of this subchapter. COMPLIANCE CHECKS shall involve minors who are authorized by this subchapter, state and federal regulations and who attempt to purchase tobacco, tobacco products, or tobacco related devices for educational, research, and training purposes, and for the enforcement of the aforementioned city, state, and federal regulations pertaining to tobacco, tobacco products, and tobacco related devices. INDIVIDUALLY PACKAGED. The practice of selling any tobacco or tobacco product wrapped individually for sale. Individually wrapped tobacco and tobacco products shall include, but not be limited to, single cigarette packs, single bags or cans of loose tobacco in any form, and single cans or other packaging for snuff or chewing tobacco. Cartons or other packaging containing more than a single pack or other container as described in this definition shall not be considered INDIVIDUALLYPACKAGED. LOOSIES. Common term referring to a single or individually packaged cigarette. MINOR. Any person who has not yet reached the age of 18 years. MOVEABLE PLACE OF BUSINESS. Any form of business operated out of a truck, van, automobile, or other type of vehicle of or transportable shelter and not a fixed address store front or other permanent type of structure authorized for sales transaction. RETAIL ESTABLISHMENT. Any place of business where tobacco, tobacco products or tobacco related devices are available for sale to the general public. RETAIL ESTABLISHMENTS shall include, but not limited to, grocery stores, convenience stores, and restaurants. SALE. Any transfer of goods for money, trade, barter, or other consideration. SAMPLING TOBACCO. The lighting, inhalation or combination thereof of tobacco, tobacco products, or tobacco related devices for the purpose of testing a tobacco product prior to the sale of such product. SELF - SERVICE MERCHANDISING. Open displays of tobacco, tobacco products, or tobacco related devices in any manner where any person shall have access to the tobacco, tobacco products, or tobacco related devices, without the assistance or intervention of the licensee or the licensee's employee. The assistance or intervention shall entail the actual physical exchange of tobacco, tobacco product, or tobacco related device between the customer and the licensee or employee. SELF - SERVICE MERCHANDISING shall not include vending machines. SMOKE SHOP. A retail establishment that has obtained an appropriate license, in which greater than ninety percent (90 %) of the business's gross revenue must be from the sale of tobacco, tobacco products or smoking - related accessories. TOBACCO or TOBACCO PRODUCTS. Any substance or item containing tobacco leaf, including but not limited to cigarettes, cigars, pipe tobacco; hookah tobacco; snuff; fine cut or other chewing tobacco; dipping tobacco; snus; bidis, or any other preparation of tobacco; cheroots; stogies, perique; granulated, plug cut, crimp cut, ready- rubbed, and other smoking tobacco; ... and any product or formulation of matter containing biologically active amounts of nicotine that is manufactured, sold, offered for sale, or otherwise distributed with the expectation that the product or matter will be introduced into the human body, but does not include any cessation product approved by the United States Food and Drug Administration for use as a medical treatment to reduce and eliminate nicotine or tobacco dependence. TOBACCO RELATED DEVICES. Any tobacco product as well as a pipe, rolling papers, or other device intentionally designed or intended to be used in a manner which enables the chewing, sniffing, or smoking of tobacco or tobacco products. TOBACCO SELLER. Any person who sells, distributes with an economic or a business purpose, offers for sale tobacco, tobacco products or tobacco - related devices. This definition is without regard to the quantity of tobacco, tobacco products, or tobacco - related devices sold, distributed, offered for sale, exchanged, or offered for exchange. VENDING MACHINE. Any mechanical, electric, or electronic, or other type of device which dispenses tobacco, tobacco products, or tobacco related devices upon the insertion of money, tokens, or other forms of payment directly into the machine by the person seeking to purchase the tobacco, tobacco product, or tobacco related device. (1993 Code, § 510.02) § 111.047 LICENSE REQUIRED. (A) Generally. No person may directly or indirectly or by means of any device keep for retail sale, sell at retail, offer to sell or otherwise dispose of any tobacco, tobacco products, or tobacco related devices, at any place in the City unless a license has first been issued by the City Council as provided in this section. (B) Specifically. (1) Application. An application for a license to sell tobacco, tobacco products, and tobacco related devices shall be made on a form provided by the City. The application shall contain the full name of the applicant, the applicant's residential and business addresses, and telephone numbers, the name of the business for which the license is sought, and any additional information the City deems necessary. (2) Action. The City Council may either approve or deny the license, or it may delay action for any reasonable period of time as necessary to complete any investigation of the application or the applicant that it deems necessary. If the City Council approves the application, the Licensing Clerk shall issue the license to the applicant. If the City Council denies the application, notice of the denial shall be given to the applicant along with notice of the applicant's right to appeal the City Council's decision. (3) Term. All licenses issued under this subchapter shall be valid for 1 calendar year from the date of March 15. (4) Revocation or suspension. Any license issued under this subchapter may be revoked or suspended as provided in § 111.056. (5) Transfers. All licenses issued under this section shall be valid only on the premises for which the license was issued and only for the person to whom the license was issued. No transfer of any license to an other location or person shall be valid without the prior approval of the City Council. (6) Moveable place of business. No license shall be issued to a moveable place of business. Only fixed location businesses shall be eligible to be licensed under this subchapter. (7) Display. All licenses shall be posted and displayed in plain view of the general public on the licensed premises. (8) Renewals. The renewal of a license issued under this section shall be handled in the same manner as the original application. The request for a renewal shall be made at least 30 days prior, but no more than 60 days before the expiration of the current license. The license holder is not entitled to an automatic renewal of the license. (1993 Code, § 510.05) Penalty, see § 10.99 § 111.048 FEE. If an application is granted by the City Council, a license will be issued by the Licensing Clerk upon payment in full, of the fee required under Chapter 33. (1993 Code, § 510.05) § 111.50 PROHIBITED SALES. It shall be a violation of this subchapter for any person to sell or offer to sell any tobacco, tobacco product, or tobacco related device: (A) To an minor; (B) By a vending machine, in violation of § 111.051; (C) By self - service methods in violation of §111.052; (D) As "loosies ", as defined in §111.046; (E) If the tobacco or tobacco products contain opium, morphine, jimsonweed, belladonna, strychnos, cocaine, marijuana, or other delirious, hallucinogenic, toxic, or controlled substances except nicotine and other substances found naturally in tobacco or added as part of an otherwise lawful manufacturing process; and /or (F) To any other person, in any other manner or form prohibited by federal or state law or regulation, or by local ordinance. (1993 Code, § 510.07) Penalty, see § 10.99 § 111.051 VENDING MACHINES. It shall be unlawful for any person licensed under this code to allow the sale of tobacco, tobacco products, or tobacco related devices by the means of a vending machine unless minors are at all times prohibited from entering the licensed establishment. (1993 Code, § 510.08) Penalty, see § 10.99 § 111.052 SELF - SERVICE SALES. (A) It shall be unlawful for a licensee under this code to allow the sale of single packages of cigarettes or smokeless tobacco if the customer may have access to the items without having to request the item from the licensee e€ or the licensee's employees and if there is not a physical exchange of the single packages of cigarettes or smokeless tobacco between the licensee or the licensee's clerk and the customer. All single packs of cigarettes or smokeless tobacco shall either be stored behind a counter, in a case or other storage unit not left open and accessible to the general public, or otherwise are not freely accessible to.customers. Any retailer selling single packs of cigarettes or smokeless tobacco at the time of adoption of this subchapter, shall have 60 days to comply with this section. (B) At such time as the FDA regulations regarding self - service of tobacco products are adopted, those provision shall be adopted by reference and supercede the current self - service language of this section. (1993 Code, § 510.09) Penalty, see § 10.99 § 111.053 RESPONSIBILITY. All licensees under this subchapter shall be responsible for the actions of their employees in regard to the sale of tobacco, tobacco products, or tobacco related devices on the licensed premises, and the sale of such an item by an employee shall be considered a sale by the license holder. Nothing in this subchapter shall be construed as prohibiting the City from also subjecting the clerk to whatever penalties are appropriate under this subchapter, state or federal law, or other applicable law or regulation. (1993 Code, §510.10) § 111.054 COMPLIANCE CHECKS AND INSPECTIONS. All licensed premises shall be open to inspection by the Police Department or other authorized city official during regular business hours. At least once per year, the City shall conduct compliance checks by engaging, with the written consent of their parents or guardians, minors over the age of 15 years but less than 18 years, to enter the licensed premises to attempt to purchase tobacco, tobacco products, or tobacco related devices. Minors used for the purpose of compliance checks shall be supervised by City designated law enforcement officers or other designated City personnel. Minors used for compliance checks shall not be guilty of unlawful possession of tobacco, tobacco products or tobacco related devices when the items are obtained as a part of the compliance check. No minor used in compliance checks shall attempt to use a false identification misrepresenting the minor's age, and all minors lawfully engaged in a compliance check shall answer all questions about the minor's age asked by the licensee or the licensee's employee and shall produce any identification, if any exists, for which the minor is asked. Nothing in this section shall prohibit compliance checks authorized by state or federal laws for educational, research, or training purposes, or required for the enforcement of a particular state or federal law. (1993 Code, §510.11 § 111.055 OTHER ILLEGAL ACTS. (A) Other illegal acts by minors. Unless otherwise provided, it shall be unlawful for any minor: (1) To have in his or her possession any tobacco, tobacco product, or tobacco related device, except as permitted in § 111.054; (2) To smoke, chew, sniff, or otherwise use any tobacco, tobacco product, or tobacco related device; (3) To purchase or attempt to purchase or otherwise obtain any tobacco, tobacco product or tobacco related device; and/or (4) To attempt to disguise his or her true age by the use of a false form of identification, whether the identification is that of another person or one on which the age of the person has been modified or tampered with to represent an age older than the actual age of the person. (B) Illegal acts by others. It shall be unlawful to any person: (1) To purchase or otherwise obtain any tobacco, tobacco product, or tobacco related devices on behalf of a minor; and /or (2) To coerce or attempt to coerce a minor to illegally purchase or otherwise obtain or use any tobacco, tobacco product, or tobacco related device. (1993 Code, § 510.12) Penalty, see § 10.99 § 111.056 VIOLATIONS. (A) (1) Notice. Upon discovery of suspected violation, the alleged violator may be issued, either personally or by mail, a citation that sets forth the alleged violation and which shall inform the alleged violator of his or her right to be heard on the accusation. (2) Hearings. If a person who has been issued a citation, requests a hearing, it shall be scheduled and the time, date and place shall be published and provided to the accused violator. (3) Hearing Officer. The Police Chief shall serve as the hearing officer. (4) Decision. If the hearing officer determines that a violation did occur, that decision, as well as the hearing officer's reasons for finding a violation and the penalty to be imposed under this section, shall be recorded in writing, a copy of which shall be provided to the accused violator. If the hearing officer finds that no violation occurred or finds ground for not imposing any penalty, the findings shall be recorded and a copy provided to the acquitted accused violator. (5) Appeals. Appeals of any decision made by the hearing officer shall be filed in the district court having jurisdiction over the City. (6) Gross misdemeanor prosecution. Nothing in this section shall prohibit the City from seeking prosecution as a gross misdemeanor for any alleged violation of this subchapter. If the City elects to seek gross misdemeanor prosecution, no administrative penalty shall be imposed. (7) Continued violation. Each violation and each day in which a violation occurs or continues, shall constitute a separate offense. (1993 Code, § 510.13) (B) (1) Licenses. Any licensee or employee found to have violated this subchapter, shall be charged a gross misdemeanor. (2) Other individuals. Other individuals and who are not minors regulated by division (13)(3) below, found to be in violation of this subchapter shall be charged an administrative fine of $50. (3) Minors. Minors found in unlawful possession of, or who unlawfully purchase or attempt to purchase tobacco, tobacco products, or tobacco related devices, shall be remanded to the custody of their parents and required to attend and complete tobacco related diversion programs. (4) Misdemeanor. Nothing in this section shall prohibit the City from seeking prosecution as a misdemeanor for any violation of this subchapter. (1993 Code, § 510.14) (C) Nothing in this subchapter shall prevent the providing of tobacco, tobacco products, and tobacco related devices to a minor as part of a lawfully recognized religious, spiritual, or cultural ceremony. It shall be an affirmative defense to the violation of this subchapter for a person to have reasonable relied on proof of age as described by state law. (1993 Code, § 510.14) Penalty, see §10.99 § 111.057 SPECIFIC OPERATIONAL STANDARDS. (A) Other specific operational standards far smoke shops. Smoke shops and related uses are subject to the following specific operating standards: (1) Entrances. The smoke shop must have an entrance door opening directly to the outdoors. (2) Compliance with Chapter 1306. The smoke shop shall comply with MINNESOTA RULES, CHAPTER 1306, SPECIAL FIRE PROTECTION SYSTEMSI306.0020, Subp. 2, Existing and new buildings (3) Business Gross Revenues. Greater than ninety (90 %) percent of the business's gross revenue must be from the sale of tobacco, tobacco products or smoking - related accessories. (4) Not considered a smoke shop. A tobacco department or section of any individual business establishment with any type of liquor, food, or restaurant license shall not be considered a smoke shop. (5) Sampling of tobacco products prior to sale is prohibited. The lighting, inhalation or combination thereof of tobacco, tobacco products, or tobacco related devices for the purpose of testing or sampling a tobacco product prior to the sale of such product is prohibited at all times. Staff Report To: Mike Morrison From: John Malenick, Fire Chief Date: July 19, 2010 Re: Changes /Addition to Building Code Chapter 1306 Background: After several conversations with our Building Official, Kevin White, we have determined that the City of St. Anthony is not protected by chapter 1306 of the Minnesota Building Code. Chapter 1306 requires that certain commercial buildings install and maintain automatic sprinkler systems should they change their occupancy class or increase their floor area. Mr. White feels our current ordinance language adopting the Building Code is ambiguous in regard to chapter 1306 and is not enforceable. Adoption of this optional chapter is common throughout the state and I believe it is vital to the protection of lives and property with in the City of St. Anthony. Consideration: Under Chapter 1306 of the Minnesota building Code, automatic sprinkler systems for new buildings, buildings increased in total floor area or buildings in which the occupancy classification has changed, must be installed and maintained in the following occupancy groups: Group A- assembly, B- business, F- factory, M- mercantile, S- storage, E- educational and day care. Thank you for your consideration. Staff involved: Kim Moore - Sykes, Barb Suciu, Kevin White and John Malenick • Page 1 St. Anthony — Land Usage §150.016 BUILDING CODE (A) Codes Adopted by Reference. The Minnesota State Building Code, as adopted by the Commissioner of Labor and Industry est^1� d pursuant to M.S. §§ 326B 16B.59 dwe -16B.75 , including all of the amendments, rules and regulations established, adopted and published from time to time by the Minnesota Commissioner of labor and Industry, through the Building Codes and Standards Unit, is hereby adopted by reference with the exception of the optional chapters, unless specifically adopted in this ordinance. The Minnesota State Building Code is hereby incorporated in this Code as if fully set out herein. as may amended from time te time, is heFeby adopted as the building eede fer this numieipality. eede is hereby ineer-peFated in this subehapter- as if fully set out hmin. (B) Application, Administration and Enforcement. The application, administration, and enforcement of the Building Code shall be in accordance with the Minnesota State Building Code. . The Building Code shall be enforced within the extraterritorial limits permitted by the Minnesota Statutes, 326B.121, Subd. 2(d), when so established by ordinance. This Code shall be enforced by the Minnesota Certified Building Official designated by the City to administer the Building Code in accordance with Minnesota Statutes 326.B133, Subdivision 1. 1300, Administrafien ffie Minnesota State Ruil4ing Code; a. of b. 1301 Building 0f ertt€tsatien; 1302 State Building Cede nonst_ A...,,.....als; e e > etien d. 1-303 Minnesota w rsiens; 1305, Adeptien the 2000 International Building C-ed(- e. ef f. 1396, Speeial Fire preteetion Systems; Dltd 1307 e.,et d Dl nAe g. e ers aneeeees h. 1389,, Adoption the Inte. Residential Cede; of -2000 ational the 2000 i 1311 Adoption Guidelines f Del. Existing Buildings; of f fthe abilitatien of > 131 e A aeptien the 100 Nation- Dleetfieal Cede. , r• of 1F. 1325 Solar D..ergy Systems; 1. 1330 Fallout Shelters; e 1335, Fleedpreefing Regulations; _ ♦ 1 in. 1341 ne:....e. Aeeessibility Gode. n. eta 1346 Adoption fthe, Minnesota State n no,.l.,...ieal Code. e. A Homes; p. 1350, Manufaetffed 1364 n.ec 1...ieated e......etufes; q. , , 13 61 Indu .hiali,.,.,l m lodal Build:....... r. ar (C) Permits and Fees. The issuance of permits and the collection of fees shall be as authorized in Minnesota Rules. Chapter 1300. Permit fees shall be assessed for work governed by the Building Code in accordance with the fee schedule adopted by the City Council. In addition, a surcharge fee shall be collected on all permits issued for work governed by the Building Code in accordance with Minnesota Statutes, Section 326B.148. (D) A violation of the Building Code is a misdemeanor (Minnesota Statutes 326B.082, Subd. 16). (E) Building Code Optional Chapters. The Minnesota State Building Code, Chapter 1300 allows the City to adopt by reference and enforce certain optional chapters of the most current edition of the Minnesota State Building Code. The following optional provisions identified in the most current edition of the State Building Code are hereby adopted and incorporated as part of the Building Code for the City: (1) Minnesota Rules, Chapter 1306. (2) Special Fire Protection Systems Subpart 2, Existing and new buildings. BuRdings, Housing, and Gonstruetion b. 4715, ne:....eset., Plumbing Code; and , 1 Y. ....... ... .._._. _ _. _ .. .. .. .. .. - _ ♦ 1 , SAW W. .. .. ... ... _ _ ...... .... - . .. .. 11 _ .. ... .. .. .. .. \ .. . .. 1.11 11 CHAPTER 1306 DEPARTMENT OF LABOR AND INDUSTRY SPECIAL FIRE PROTECTION SYSTEMS 1306.0010 GENERAL. 1306.0020 MUNICIPAL OPTION. 1306.0030 REQUIREMENTS. 1306.0040 STANDARD. 1306.0050 SUBSTITUTE CONSTRUCTION. 1306.0060 EXEMPTION. 1306.0070 REPORTING. 1306.0010 GENERAL. This chapter authorizes optional provisions for the installation of on- premises fire suppression systems that may be adopted by a municipality in addition to the State Building Code. If the municipality adopts them, the sprinkler system requirements of this chapter become part of the State Building Code and are applicable throughout the municipality. This chapter, if adopted, must be adopted without amendment. Statutory Authority: MS s 16B.59; 16B.61; 16B.64; 326B.101; 326B.106; 326B.13 History: 27 SR 1479; L 2007 c 140 art 4 s 61; art 13 s 4 Posted: July 11, 2007 1306.0020 MUNICIPAL OPTION. Subpart 1. Requirement. The sprinkler system requirements of this chapter, if adopted, must be adopted with the selection of either subpart 2 or 3, without amendment. Subp. 2. Existing and new buildings. Automatic sprinkler systems for new buildings, buildings increased in total floor area (including the existing building), or buildings in which the occupancy classification has changed, must be installed and maintained in operational condition within the structure. The requirements of this subpart apply to structures that fall within the occupancy classifications established in part 1306.0030, items A to D. Exception: The floor area of minor additions that do not increase the occupant load does not have to be figured into the square footage for occupancy classifications established in part 1306.0030, items A to D. Subp. 3. New buildings. Automatic sprinkler systems for new buildings, additions to existing buildings, or buildings in which the occupancy classification has changed must be installed and maintained in operational condition within the structure. The requirements of this subpart apply to structures that fall within the occupancy classifications established in part 1306.0030, items A to D. Copyright 02007 by the Revisor of Statutes, State of Minnesota. All Rights Reserved. 1306.0040 SPECIAL FIRE PROTECTION SYSTEMS Exception: The floor area of minor additions that do not increase the occupant load does not have to be figured into the square footage for occupancy classifications established in part 1306.0030, items A to D. Statutory Authority: MS 16B.59; 16B.61; 16B.64; 326B.101; 326B.106; 326B.13 History: 27 SR 1479; 32 SR 6; L 2007 c 140 art 4 s 61; art 13 s 4 Posted: July 11, 2007 1306.0030 REQUIREMENTS. For purposes of this chapter, area separation, fire barriers, or fire walls do not establish separate buildings. Gross square footage (gsf) means the floor area as defined in the International Building Code. The floor area requirements established in items A to D are based on the gross square footage of the entire building and establish thresholds for these requirements. The following occupancy groups must comply with sprinkler requirements of this chapter, unless specified otherwise: A. Group A -1, A -2, A -3, and A -4 occupancies; Exception: air inflated structures, and open picnic shelters. B. Group B, F, M, and S occupancies with 2,000 or more gross square feet of floor area or with three or more stories in height; Exception: S -2 open parking garages, aircraft hangars, salt storage sheds, and group "M" detached canopies. C. Group E occupancies with 2,000 or more gross square feet of floor area or with two or more stories in height; D. Group E day care occupancies with an occupant load of 30 or more. Statutory Authority: MSs 16B.59; 16B.61; 16B.64; 326B.101; 326B.106; 326B.13 History: 27 SR 1479; 32 SR 6; L 2007 c 140 art 4 s 61; art 13 s 4 Posted: July 11, 2007 1306.0040 STANDARD. Automatic sprinkler systems must comply with the applicable standard referenced in the State Building Code. If a public water supply is not available, the building official and fire chief shall approve the use of an alternate on -site source of water if the alternate source provides protection that is comparable to that provided by a public water supply. If an adequate alternate water supply sufficient for hose stream requirements is provided or available, the building official and fire chief may permit the water supply requirements for the hose stream demands to be modified. Statutory Authority: MS s 16B.59; 16B.61; 16B.64; 326B.101; 326B.106, 326B.13 Copyright 02007 by the Revisor of Statutes, State of Minnesota. All Rights Reserved. 3 SPECIAL FIRE PROTECTION SYSTEMS History: 27 SR 1479; L 2007 c 140 art 4 s 61; art 13 s 4 Posted: July 11, 2007 1306.0050 SUBSTITUTE CONSTRUCTION. The installation of an automatic sprinkler system, as required by this chapter, would still allow the substitution of one -hour fire - resistive construction as permitted by the International Building Code, Table 601, footnote d. Statutory Authority: MSs 16B.59; 16B.61; 16B.64; 326B.101; 326B.106; 326B.13 History: 27 SR 1479; L 2007 c 140 art 4 s 61; art 13 s 4 Posted: July 11, 2007 1306.0060 EXEMPTION. The building official, with the concurrence of the fire official, may waive the requirements of this chapter if the application of water has been demonstrated to constitute a serious life, fire, or environmental hazard, or if the building does not have an adequate water supply and the building is surrounded by public ways or yards more than 60 feet wide on all sides. Statutory Authority: MS s 16B.59; 16B.61; 16B.64; 326B.101; 326B.106; 326B.13 History: 27 SR 1479; L 2007 c 140 art 4 s 61; art 13 s 4 Posted: July 11, 2007 1306.0070 REPORTING. A municipality must submit a copy of the ordinance adopting this chapter to the Department of Labor and Industry, Construction Codes and Licensing Division. The ordinance does not go into effect until: and A. a signed electronic, faxed, or paper copy of the ordinance has been received by the division; B. the ordinance has been approved by the division. An ordinance is deemed automatically approved by the division if the municipality has not been informed that the ordinance has not been approved within ten working days of the division's receipt of the ordinance. Statutory Authority: MS s 16B.59; 16B.61; 16B.64; 326B.101; 326B.106; 326B.13 History: 27 SR 1479; 32 SR 6; L 2007 c 140 art 4 s 61; art 13 s 4 Posted: July 11, 2007 1306.0100 [Repealed, 27 SR 1479] Copyright 02007 by the Revisor of Statutes, State of Minnesota. All Rights Reserved. SPECIAL FIRE PROTECTION SYSTEMS Posted: July 11, 2007 Copyright 02007 by the Revisor of Statutes, State of Minnesota. All Rights Reserved.