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CC PACKET 09142010
H.R.A. meeting immediately following City Council meeting CITY OF ST. ANTHONY VILLAGE CITY COUNCIL MEETING AGENDA September 14, 2010 7:00 p.m. Call to Order. Pledge of Allegiance. Roll Call, Consideration, Discussion, and Possible Action on All of the foRowingitems: I. Approval of the September 14, 2010, City Council Meeting Agenda. (actionrequested.) II. Proclamations and Recognitions. A. Heroic Citizen Award. John Malenick, Fire Chief, presenting. (p. 1) B. Kiwanis Peanut Day Proclamation. (p. 2) 11I. Consent Agenda. These items are considered routine and n411 be enacted by one motion. There will be no separate discussion of these items unless a CoundImember or citizen so requests, in whicli event the item wi11 be removed from the Consent Agenda and placed elsewhere on the agenda. A. Approval of August 24, 2010, Council Meeting Minutes. (pp. 3.4- 6) B. Licenses and Permits. (pp. 7 — 9) C. Claims. (pp. 9 •--11) D. Resolution 10-059; Closing Out the City of St. Anthony's 2005 Street Improvement Construction Fund and Transferring the Remaining Funds to the 2005 Bond Fund. (pp. 12 —14) IV. Public Hearing. V. Reports from Commission and Staff. VI. General Business of Council. A. Resolution 10-056; Resolution Relating to Phase III Redevelopment Agreement By and Among the City of St. Anthony, Minnesota, The Housing and Redevelopment Authority of the City of St. Anthony, Minnesota and Apache Redevelopment, LLC. ("The Developer") Stacie Kvilvang, Ehlers & Associates, presenting. (tabled from the August 10, 2010 city council meetin (pp. 15 — 25) B. Resolution 10-060; Setting the City of St. Anthony Proposed 2011 Tax Levy and Budget in Compliance with the Truth In Taxation Act. Mike Mornson, City Manager and Roger Larson, Finance Director, presenting. (pp. 26 — 35) VII. Reports from City Manager and Council members. VIII. Community Forum. Individuals may address the City Council about any item not included on the regular agenda. Speakers are requested to come to the podium, sign their name and address on the farm at lbe podium, state their name and address far the Clerks record, and limit their remarks to five minutes. Generally, the City Council will not take ocial action on items discussed at ibis time, but retry typically refer the matter to staff for a frtture report or direct the matter to be scheduled on an upcoming agenda. IX. Information and Announcements. X. Adjournment. Our Mission is to be a progressive and livable community, a walkable village, which is safe and secure. FACouncil lvleetings12010109 E 420101agendapgit.doe no The City of St. Anthony and the St. Anthony Fire Department Award the HEROIC CITIZEN AWARD to RANDY WITTHUS for outstanding life saving efforts with Cardiopulmonary Resuscitation and the Automated External Defibrillator performed on June 11, 2010 presented this 14`" day of September, 2010 City Seal 61a PROCLAMATION WHEREAS, the Kiwanis Club of St. Anthony Village is an organization dedicated to helping the youths the community educationally and spiritually; and WHEREAS, the Kiwanis Club of St. Anthony Village is also committed to other community services; and WHEREAS, in order to raise funds for its many programs, the Kiwanis Club of St. Anthony Village has requested a day be set aside in St. Anthony Village for the sale of peanuts. .NOW, THEREFORE, BE IT RESOLVED, that the St. Anthony Village City Council hereby designates FRIDAY, SEPTEMBER 24, 2010 as ST. ANTHONY KIWANIS PEANUT DAY Member 14, 2009 3 I CITY OF ST. ANTHONY 2 CITY COUNCIL REGULAR MEETING MINUTES 3 AUGUST 24, 2010 4 5 CALL TO ORDER. 6 7 Mayor Faust called the meeting to order at 7:00 p.m. 8 9 PLEDGE OF ALLEGIANCE. 10 11 Mayor Faust invited the Council and audience to join him in the Pledge of Allegiance. 12 13 ROLL CALL. 14 15 Present: Mayor Faust; Councilmembers Gray, Jenson, Roth, and Stille. 16 Absent: None. 17 Also Present: City Manager Mike Morrison and Finance Director Roger Larson. 18 19 20 CONSIDERATION, DISCUSSION, AND POSSIBLE ACTION ON ALL OF THE FOLLOWING 21 ITEMS. 22 23 I. APPROVAL OF AUGUST 24, 2010 CITY COUNCII, MEETING AGENDA. 24 25 Motion by Councilmember Gray, seconded by Councilmember Stille, to approve the City 26 Council Meeting Agenda of August 24, 2010. 27 28 Motion carried unanimously. 29 30 II. PROCLAMATIONS AND RECOGNITIONS. 31 32 None. 33 34 III. CONSENT AGENDA. 35 36 A. Consider August 10, 2010 Council meeting minutes; 37 B. Consider licenses and permits; 38 C. Consider payment of claims; 39 D. Resolution 10-057; Accepting a Training Reimbursement Award from the Minnesota 40 Board of Firefighter Training and Education for the St. Anthony Fire Department: and 41 E. Resolution 10-058; Accepting a Grant from the Federal Emergency Management eency 42 (FEMA) and Department of Homeland Security (DHS) for the St. Anthony Fire 43 Department. 44 45 Motion was made by Councilmember Gray, seconded by Councilmember Jenson, to approve the 46 Consent Agenda items. 47 48 Motion carried unanimously. 49 City Council Regular Meeting Minutes August 24, 2010 Page 2 1 IV. PUBLIC HEARING. 2 3 None. 4 5 V. REPORTS FROM COMMISSION AND STAFF. 6 7 None. 8 9 VI. GENERAL BUSINESS OF COUNCIL. 10 11 A. North 1-35W Corridor. Bob Benke North Metro 1-35W Corridor Coalition 12 13 Mr. Bob Benke, North Metro I -35W Corridor Coalition, provided a presentation on study 14 updates and anticipated next steps for the North Metro 1-35W Corridor Transportation Future. 15 The presentation included the following information: 16 • Brief Update on NM 1-35W Corridor Coalition 17 • Metro Highway System Investment Study 18 • Next Mn/PASS Study 19 • U.P. North Proposal 20 21 Mr. Benke answered questions of the City Council regarding the current membership of the I- 22 35W Corridor Coalition, Mn/PASS, and the preservation of transportation corridors. 23 24 B. Proposed 2011 Budget. Mike Mornson, City Manager and Roger Larson Finance 25 Director. 26 27 City Manager Mornson and Finance Director Larson provided a PowerPoint presentation and 28 answered questions of the City Council on the Proposed 2011 Budget. The presentation and 29 discussion included the following information: 30 • Budget Calendar 31 • 2011 Budget Parameters 32 • 0% increase in General Operating Levy 33 • Appropriation of Revenues to the General Fund are as follows: 34 o Bell Lane Clean-up $ 22,300 35 o Clearwire Lease $ 24,000 36 o 2009 Budget/Reserves $ 84,900 37 $131,200 38 • Salary increase & employer health insurance contribution: 39 o To be determined — pending negotiations between the City Manager 40 and the three labor unions. 41 0 All other line items will remain the same as 2010. 42 • General Fund Budget/Levy 43 • 2011 General Fund Revenues 44 • 2011 General Fund Expenditures 45 0 State Legislature 0 rd City Council Regular Meeting Minutes August 24, 2010 Page 3 2011 Total Proposed Levy Summary of 2011 Budget Next Steps in the Budget Process Mayor Faust commented that the City has been consistent in keeping the levy increase down while continuing with the principal of investing in road infrastructure. 8 VII. REPORTS FROM CITY MANAGER AND COUNCIL MEMBERS. 9 10 City Manager Morrison reported on the following: 11 • Staff will begin negotiations with all three unions for 2011 contracts. 12 • Fire Department Open House will be held in October. 13 • Staff has met with the Three Rivers Park District throughout the year. Staff from the 14 Park District would like to come to a City Council meeting to talk about the one year 15 anniversary of the opening of Silverwood Park. 16 • The IHOP building permit has been approved. The project is waiting on approval from 17 the Ramsey County Health Department and Metropolitan Council SAC charges. 18 • The City has received a letter from the MPCA confirming the receipt of the City's letter 19 of opposition to the proposed location of the asphalt plant in Roseville adjacent to St. 20 Anthony. 21 22 Mayor Faust stressed the importance of monitoring the status of the proposed asphalt plant in 23 order to be proactive if necessary. 24 25 Mayor Faust requested additional information for the public regarding the gas and cigarette 26 permit approved on the Consent Agenda for the Stop and Go located on 37`x' Avenue. City 27 Manager Morrison explained that the previous gas station at this location was closed. The new 28 applicant is currently working with the bank to acquire the property which is to be reopened as a 29 gas station shortly after Labor Day. 30 31 Councihneinber Roth reported on the services provided by Northwest Youth and Family 32 Services within the community. I -Ie stated the City makes a contribution to the organization on a 33 yearly basis at an annual contracted rate of approximately $3,500. Services provided by the 34 organization include youth employment training, mental health counseling, diversion service, 35 and senior chore services at a total projected amount of $16,600. 36 37 Councilmember Stille: No report. 38 39 Councilmember Gray: No report. 40 41 Councilmember Jenson: No report. 42 43 Mayor Faust reported on his attendance at the August 12, 2010 Minneapolis Zoning and 44 Planning Commission on behalf of the Middle Mississippi Watershed Management Organization 45 (MWMO). The MWMO is requesting alternative compliance for the site of the new building to 46 be constricted in Minneapolis. The organization would like to locate the building at a 36 foot 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 City Council Regular Meeting Minutes August 24, 2010 Page 4 setback due to the process involved with bringing the water into the building, showing it being cleansed, and then moved on to the river. The compromise they were able to obtain was a setback of 25 feet. They are now in the process of determining whether the 11 foot difference will materially affect the educational experience and the opportunity to do what the organization had intended with the building. VIII. COMMUNITY FORUM. Mayor Faust invited residents to come forward at this time and address the Council on items that are not on the regular agenda. Hearing none, Mayor Faust moved forward with the agenda. IX. INFORMATION AND ANNOUNCEMENTS. Mayor Faust announced X. ADJOURNMENT. Mayor Faust adjourned the meeting at 7:44 p.m. Respectfully submitted, Carol Hamer ThneSaver Off Site Secretarial, Inc. ATTEST: City Clerk Mayor 7.1 Saint Anthony Village DATE: September 14, 2010 Approved: TO: Mayor and Councilmembers FROM: License Clerk ITEM: License and Permits for Approval: , Sturgeon Bay, WI a Rama, Vadnais Heights, MN aire Heating & Air Conditioning, Eden Prairie, MN or Fireplace & Stone, Spring Lake Park, MN 's Heating & Air Conditioning, Isanti, MN ,n Valley Heating & Air, Crystal, MN i Metro Heating & Air Conditioning, Ham Lake, MN Murphy's Service Center 3501 29`x' Ave Real Estate Services of MN 2608 -- 2610 37°i Ave Paul Johnson 3300 — 3302 39°i Ave Sharon Poland 3635 Belden Dr Applicant: Jeff Krull Location: 3724 Chandler Dr Applicant: Patrick O'Connor Location: 2934 Old Hwy 8 Applicant: Silver Lake Home Location: 3512 Silver Lake Rd Applicant: Jeff Barber Location: 4104 — 4106 Silver Lake Rd Applicant: Walter Sentyrz Location: 2508 St Anthony Blvd 7 Applicant: Jason Amundsen Location: 2816 St Anthony Blvd Applicant: Lorraine Weinmeyer Location: 3323 Stinson Blvd Applicant: Jean Kenney Location: 3525 Stinson Blvd Applicant: David Loch Location: 3605 Stinson Blvd Applicant: Jacqueline Thomas Location: 2611 Townview Ave U S BANK ST. ANTHONY VILLAGE 9 CHECK REGISTER VENDOR # PAYEE CHECK # DATE AMOUNT 9596 SEARS COMMERCIAL ONE 13013 9/2/2010 $274.39 9584 ABLE HOSE & RUBBER, INC. 13014 9/15/2010 $48.09 8242 AFFILIATED COMPUTER SERV 13015 9/15/2010 $113.70 5087 AMERICAN PUBLIC WORKS AS 13016 9/15/2010 $176.25 8450 ANIMAL CONTROL SERVICES, 13017 9/15/2010 $461.97 8660 ASPEN ENVIRONMENTAL 13018 9/15/2010 $5,631.24 8939 BEARCOM 13019 9/15/2010 $294.33 9690 BECKER ARENA PRODUCTS, 1 13020 9/15/2010 $21,948.66 320 BEISSWENGER'S 13021 9/15/2010 $9.61 4293 BELLBOY CORP. 13022 9/15/2010 $13,789.73 9797 BERTELSON 13023 9/15/2010 $61.20 8555 BIFFS, INC. 13024 9/15/2010 $310.00 9060 BLAINE LOCK & SAFE INC. 13025 9/15/2010 $92.50 7168 BOYER TRUCKS, INC. 13026 9/15/2010 $472.51 7253 BRAKE & EQUIPMENT WAREHO 13027 9/15/2010 $126.75 7157 BROCK WHITE COMPANY, LLC 13028 9/15/2010 $91.70 4333 CANNON RIVER WINERY 13029 9/15/2010 $492.00 4231 CAPITOL BEVERAGE SALES 13030 9/15/2010 $26,954.65 9100 CAT & FIDDLE BEVERAGE 13031 9/15/2010 $707.33 610 CATCO 13032 9/15/2010 $128.56 8291 CDW COMPUTER CENTER, INC 13033 9/15/2010 $182.09 4080 CHISAGO LAKES DISTRIBUTI 13034 9/15/2010 $6,125.23 9056 CITY OF ROSEVILLE 13035 9/15/2010 $5,277.57 9209 CLOSE LANDSCAPE ARCHITEC 13036 9/15/2010 $1,405.40 4107 COMPTON'S COMMERCIAL CLN 13037 9/15/2010 $3,823.99 9826 CONSTRUCTION SUPPLY, INC 13038 9/15/2010 $529.94 9820 CRYSTAL SPRINGS ICE 13039 9/15/2010 $1,057.07 8358 CUSTOM TRUCK ACCESSORIES 13040 9/15/2010 $1,964.72 4127 DANIMAL DISTRIBUTING INC 13041 9/15/2010 $1,688.32 8465 DETERMAN BROWNIE, INC. 13042 9/15/2010 $341.25 8698 EHLERS & ASSOCIATES, INC 13043 9/15/2010 $2,000.00 4135 ELECTRO WATCHMAN INC 13044 9/15/2010 $147.49 9061 EMERGENCY AUTOMOTIVE TEC 13045 9/15/2010 $3,232.68 9814 EVERGREEN TOWNHOME ASSOC 13046 9/15/2010 $412.50 8697 EXTREME BEVERAGE 13047 9/15/2010 $198.50 9395 FACTORY MOTOR PARTS CO 13048 9/15/2010 $75.78 9798 FERGUSON WATERWORKS 13049 9/15/2010 $257.31 9824 FIRE SAFETY USA, INC. 13050 9/15/2010 $12,280.00 9667 FLAT EARTH BREWING CO 13051 9/15/2010 $143.96 1030 G & K SERVICES INC 13052 9/15/2010 $674.31 1110 GENERAL INDUSTRIAL SUPPL 13053 9/15/2010 $38.22 9620 GLOBAL TRAFFIC TECHNOLOG 13054 9/15/2010 $95.00 9102 GRAND PERE WINES, INC 13055 9/15/2010 $320.00 4172 GRAPE BEGINNINGS, INC. 13056 9/15/2010 $1,448.50 1420 HAWKINS, INC 13057 9/15/2010 $1,349.55 8221 HEDBACK, ARENDT, KOHL 13058 9/15/2010 $5,000.00 8673 HENNEPIN COUNTY ASSESSOR 13059 9/15/2010 $41,959.30 4207 HOHENSTEIN'S, INC 13060 9/15/2010 $5,315.00 8252 HOME DEPOT CREDIT SERVIC 13061 9/15/2010 $245.97 98071NTAB 13062 9/15/2010 $43.81 U S BANK ST. ANTHONY VILLAGE 10 CHECK REGISTER VENDOR # PAYEE 4125 JJ TAYLOR DISTRIBUTING 4220 JOHNSON BROTHERS LIQUOR 9598 KONICA MINOLTA BUSINESS 9755 L.T.G. POWER EQUIPMENT 9729 LIFT BRIDGE BEER CO. 2040 LILLIE SUBURBAN NEWSPAPE 9114 M. AMUNDSON LLP 2100 MACQUEEN EQUIPMENT CO 2240 METROPOLITAN COUNCIL 8467 MIDWAY FORD 2280 MIDWEST ASPHALT CORP 8850 MINNESOTA HIGHWAY SAFETY 9425 MN AWWA 9331 MN DEPT OF HEALTH 9353 MN SPRING & SUSPENSION L 2395 MTI DISTRIBUTING, INC 8996 NEEDHAM DISTRIBUTING CO 8883 NEW FRANCE WINE COMPANY 9523 NORTHSTAR INSPECTION SER 45 OFFICE DEPOT 9615 PAETEC 4354 PAUSTIS & SONS 9563 PETTY CASH - U.S. BANK 4360 PHILLIPS WINE & SPIRITS 4361 PINNACLE DIST. 9180 PROFESSIONAL TURF & RENO 9139 PROPERTY KEY, INC. 4385 QUALITY WINE CO 9550 RAMSEY COUNTY 9384 RAMY TURF PRODUCTS 9119 RECHECK 9230 ROYAL TIRE INC 9680 SENSUS METERING SYSTEMS 9259 SPRINT 4782 ST ANTHONY VILLAGE CENTE 9083 ST. ANTHONY RETAIL DEVEL 2420 STAR TRIBUNE 9363 STATE OF MINNESOTA 9336 SUBURBAN TENT & AWNING 4780 SURLY BREWING CO 8457 SWEEPER SERVICES 3260 T A SCHIFSKY & SONS 3560 TRACY PRINTING 8824 TRI -COUNTY BEVERAGE, INC 9580 TWIN CITIES FLAG SOURCE, 8449 TWIN CITY GARAGE DOOR 4481 TWIN CITY JANITOR SUPPLY 8336 UNITED ELECTRIC COMPANY 8561 UNITED RENTALS NORTHWEST 8443 UNIVERSITY OF MINNESOTA 4490 VAL-PAK OF MINNESOTA CHECK # DATE 13063 9/15/2010 13064 9/15/2010 13065 9/15/2010 13066 9/15/2010 13067 13068 13069 13070 13071 13072 13073 13074 13075 13076 13077 13078 13079 13080 13081 13082 13083 13084 13085 13086 13087 13088 13089 13090 13091 13092 13093 13094 13095 13096 13097 13098 13099 13100 13101 13102 13103 13104 13105 13106 13107 13108 13109 13110 13111 13112 13113 9/15/2010 9/15/2010 9/15/2010 9/15/2010 9/15/2010 9/15/2010 9/15/2010 9/15/2010 9/15/2010 9/15/2010 9/15/2010 9/15/2010 9/15/2010 9/15/2010 9/15/2010 9/15/2010 9/15/2010 9/15/2010 9/15/2010 9/15/2010 9/15/2010 9/15/2010 9/15/2010 9/15/2010 9/15/2010 9/15/2010 9/15/2010 9/15/2010 9/15/2010 9/15/2010 9/15/2010 9/15/2010 9/15/2010 9/15/2010 9/15/2010 9/15/2010 9/15/2010 9/15/2010 9/15/2010 9/15/2010 9/15/2010 9/15/2010 9/15/2010 9/15/2010 9/15/2010 9/15/2010 9/15/2010 AMOUNT $50,911.27 $37,694.94 $69.10 $137.83 $442.00 $288.75 $2,447.21 $4,144.70 $41,854.62 $139.23 $332.91 $439.00 $450.00 $3,687.00 $513.25 $494.83 $457.90 $304.50 $9,073.82 $2,276.72 $182.74 $3,947.46 $142.12 $16,351.04 $65.00 $6,001.03 $50.00 $19,090.86 $300.00 $76.68 $15.00 $25.44 $420.20 $260.00 $1,899.61 $1,544.66 $134.16 $100.00 $80.16 $1,618.00 $103.78 $980.84 $795.14 $226.00 $89.78 $429.19 $149.30 $54.33 $256.60 $110.00 $740.00 U S BANK ST. ANTHONY VILLAGE 11 CHECK REGISTER VENDOR # PAYEE CHECK # DATE AMOUNT 9830 VER -MAC 13114 9/15/2010 $347.33 8227 VERIZON WIRELESS 13115 9/15/2010 $1,425.54 3698 VIKING ELECTRIC SUPPLY 13116 9/15/2010 $21.80 4451 VINOCOPIA 13117 9/15/2010 $557.00 9702 W.D. LARSON COMPANIES LT 13118 9/15/2010 $258.46 4494 WASTE MANAGEMENT - BLAIN 13119 9/15/2010 $668.12 .0311 WINDOW CONCEPTS OF MN 13120 9/15/2010 $50.00 8316 WINE COMPANYITHE 13121 9/15/2010 $1,380.10 8310 WINE MERCHANTS INC 13122 9/15/2010 $3,772.76 9364 WIRELESS WORLD 13123 9/15/2010 $32.05 4175 WIRTZ BEVERAGE - (GRIGGS 13124 9/15/2010 $25,378.77 9734 WIRTZ BEVERAGE MINNESOTA 13125 9/15/2010 $19,800.88 4499 WORLD CLASS WINES, INC. 13126 9/15/2010 $1,915.20 8273 WSB & ASSOCIATES, INC. 13127 9/15/2010 $39,508.45 2680 XCEL ENERGY 13128 9/15/2010 $12,265.23 9711 Z WINES USA LLC 13129 9/15/2010 $92.50 TOTAL $489,691.52 12 MEMORANDUM DATE: September 6, 2010 TO: City Council FROM: Mike Morrison, City Manager Roger Larson, Finance Director ITEM: GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2005A The 2005 road improvement project consisted of the reconstruction of 3151 Avenue (Wilson Street to Stinson Boulevard), Roosevelt Street, St. Anthony Road and Edward Street (3 191 Avenue to 32" d Avenue). To fund the project, the City sold G.O. Improvement Bonds totaling $1,695,000. Tax regulations require that an arbitrage calculation be made on the fifth anniversary date of the bonds. Ehlers and Associates have completed the analysis and has provided the City a report on the arbitrage calculations and findings. The funds subject to this arbitrage computation are the 2005 Street Improvement Construction Fund and the 2005 Bond Fund. In summary, Ehlers has determined that no arbitrage rebate or yield restriction liability exists and no future filings with the IRS are required. As part of closing out of the project and arbitrage compliance, the balance in the Construction Fund (totaling $33,958.24) should be transferred to the Bond Fund and used for debt service payments. Recommendation: Council approves resolution #10-059 closing out the 2005 Construction Fund #504 and transfer the balance of $33,958.24 to the 2005A Bond Fund #503 August 19, 2010 Mr. Roger Larson Finance Director City of St. Anthony 3301 Silver Lake Road St. Anthony, MN 55418-1603 Re: $1,695,000 General Obligation Improvement Bonds, Series 2005A City of St. Anthony, Minnesota Dear Mr. Larson: Enclosed are two copies of our arbitrage report for the above -referenced issue ("Bonds") for the period starting April 6, 2005 and ending on April 6, 2010 ("Computation Period"). The tax regulations require that any arbitrage amount as of each fifth year anniversary date of the Bonds, or the date in which the Bonds are no longer outstanding, whichever comes sooner, must be remitted back to the IRS no later than 60 days from said date. The enclosed report indicates that there is no rebate or yield restriction liability associated with the Bonds during the Computation Period and no IRS Tax Form 8038-T filing is required at this time. The next tax deadline for the Bonds is April 6, 2015, or the date in which the total remaining principal of the Bonds is redeemed (the first available call date for the Bonds is February 1, 2012 at par), whichever date is sooner. We will contact you a week or so prior to the applicable date to request the data needed to prepare the appropriate report.. We appreciate the opportunity to provide Arbitrage Monitoring Services to the City of St. Anthony, Minnesota and look forward to working with you in the future. If you have any questions, please call me at 651-697-8567. Sincerely, EHLERS & ASSOCIATES, INC. Gail Roberts n, Arbitrage Specialist Enclosures: Invoice Arbitrage Reports \1\1vv 1,eNerrs-ff ic,(Y)ITI EHLERS_ 651-697-8500 3060 Centre Pointe Drive LEADERS IN PUBLIC FINANCE Offices also in Wisconsin and Illinois 651-697-8555 Roseville, MIS 55113-1122 CITY OF ST ANTHONY VILLAGE RESOLUTION No. 10-059 IN COMPLIANCE WITH ARBITRAGE REGULATIONS A RESOLUTION CLOSING OUT THE CITY OF ST. ANTHONY'S 2005 STREET IMPROVEMENT CONSTRUCTION FUND AND TRANSFERRING THE REMAINING FUNDS TO THE 2005 BOND FUND. WHEREAS, to fund the 2005 Road Improvement Project, the City issued $1,695,000 in G.O. Improvement Bonds; and WHEREAS, arbitrage regulations require that upon the fifth anniversary of issuance of a bond a computation be made to calculate if any arbitrage rebate or yield restriction applies; and WHEREAS, Ehlers and Associates has completed the analysis and has determined that no arbitrage rebate or yield restriction exists; and WHEREAS, as part of closing out the project, the remaining balance of the Construction Fund should be closed out and transferred to the Bond Fund to make debt service payments; and WHEREAS, there are no further IRS filing forms required. NOW, THEREFORE, BE IT RESOLVED that: 1) the remaining funds of the 2005 Street Improvement Construction Fund #504 totaling $33,958.24 be transferred to the 2005A Bond Fund #503 Adopted this 14th day of September, 2010 ATTEST: City Clerk Review for Administration: Mayor City Manager 14 15 Memo To: Mike Momson — City Manager From: Stacie Kvilvang Date: September 14, 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 On August 19°i and 23`d staff met with the developer to discuss issues and proposed refinement of the terms. On August 30, 2010 staff met with the City Council at a work session to discuss the proposed terms based upon discussions with the developer. Attached you will find a copy of the memorandum dated August 10, 2010 which outlined all of the proposed terms of the Phase III agreement. Following are the changes discussed with the City Council at the work session as they relate to the terms in the previous memo: 2. Surviving Provisions of the Phase I Development Agreement a. Below Market Profit Tax Increment Assistance Increase. The principle amount of this note will be set at $3.2 million which was the original amount of profit the developer expected to receive after sale of all the units. This is approximately $2 million less than the amount the note amount the developer would otherwise be entitled to (without defaults) due to the increased carrying and related costs of the project. This note will bear no interest and will be subordinate to the outstanding TIF revenue bonds that were sold for the project. If or when these bonds are refinanced, any TIF not needed to pay debt service on the new bonds will be split between the City and the developer 50/50 until the City is reimbursed 100 percent for its investment in repayment of the Fannie Mae loan and reimbursed for administrative costs advanced for the project. After that, 100 percent of the TIF will go to payment on the $3.2 million note, until paid in full. Any TIF available after repayment to the City and the developer will go to the City for use in accordance with thc'I'IF plan. 5. Phase III Tax Increment a. Use and Amount of Increment: Phase IIIA. The increment generated from Phase 1I113 (Don's Car Wash) will be made available to a third party developer if needed. Any increment that is not needed by Apache Redevelopment LL.0 or a third party to develop the Phase IIB project, the excess amount will be split 75/25 between the City and Apache Redevelopment LLC respectively until the City has been reimbursed 100 percent for its investment in repayment of the Fannie Mae loan and reimbursed for administrative costs advanced for the project. After the City is 10 EHLERS_ LEADERS IN PUBLIC FINANCE 3060 Centre Pointe Drive Roseville, MN 55113-1105 Phone: 651-697-8506 Fax: 651-697-8555 skvilvang@ehlers-inc.com W Mike Morrison Development Agreement— Phase III Silver Lake Village Redevelopment September 14, 2010 Page 2 fully repaid, 100 percent of the increment will go to the Apache Redevelopment LLC. It is anticipated that the amount of increment available for distribution between the City and Apache Redevelopment LLC will be approximately $108,000 (calculated with no inflation). If split, this would mean the City would retain $81,000 and Apache Redevelopment LLC would retain $27,000. If the City is repaid in full prior to the development, then $108,000 would be available to Apache Redevelopment LLC. Phase IIIC. The increment generated from Phase IIIC (Fuel Mart and Fuel Mart Car Wash) will be made available to a third party developer if needed. If there is any increment that is not needed by the third party to develop the Phase IIIC project, the excess amount will be split 75/25 to the City and Apache Redevelopment LLC respectively until the City has been reimbursed 100 percent for its investment in repayment of the Fannie Mae loan and reimbursed for administrative costs advanced for the project. After the City is fully repaid, 100 percent of the increment will go to the Apache Redevelopment LLC. It is anticipated that the amount of increment available for distribution between the City and Apache Redevelopment LLC will be approximately $325,000 (calculated with no inflation). If split, this would mean the City would retain $243,750 and Apache Redevelopment LLC would retain $81,250. If the City is repaid in full prior to the development, then $325,000 would be available to Apache Redevelopment LLC. The Development Agreement will state that the principle amount of the subordinated TIF note for these two phases shall not exceed $433,000 (combined amount of the two phases). In addition, Apache Redevelopment LLC is required to provide documentation to the City that shows there was a loss of at least this amount to them for the overall project. As you recall, the current agreement states that the Developer has until December 31, 2011 to "commence construction" on any one of the three phases. The current language stated that the definition of commence construction was pulling a building permit for a particular phase. Based upon direction from the Council, we have added a provision that they have to prove to the City's satisfaction that the Developer has project financing and the developer has an actual ownership interest in the land (at least a purchase agreement). Please contact me at 651-697-8506 with any questions. cc: Jay Lindgren —Dorsey & Whitney File 17 Memo To: Mike Morrison — City Manager From: Stacie Kvilvang Date: August 10, 2010 Subject: Development Agreement -- Phase III Silver Lake Village Redevelopment Back in 2003, the City and HRA entered into various Development Agreements with third parties to redevelop the Northwest Quadrant in accordance with the Master Plan approved by the City. To date the following developments have been completed: Development Snare Foota e/# of Units Development Valuation Phase I WalMart 143,000 Sq/Ft $28.3 Million Phase I Retail 59,000 Sq/Ft Phase I Office 27,000 Sq/1,t Phase I Market Rate Apartments 261 Units $31.7 Million Phase IA Condos 130 Units $31.4 Million Phase IIA Town Homes 26 Units $5.8 Million TOTAL N/A $97.2 Million The total property value of the parcels these developments were placed upon when the TIF district was created back in 2005 was $5.9 million. The new property valuations are $91.3 million greater than before or over a 1,500% increase in property valuation. In addition, the new developments have brought retail and restaurant opportunities to the community, medical offices and various housing opportunities that were not available before. In 2008, the condominium market declined due to oversaturation in the market. 'Development in the Silver Lake Area was further impacted by the overall economic downturn and inability of people to sell their homes and developers to obtain capital. Due to this, the remaining phases in Silver Lake Village have not moved forward. Apache Redevelopment LLC approached the City to enter into a new development agreement to finish out certain portions of the Silver Lake Redevelopment. These include the following: E H L E RS 3060 Centre Pointe Drive Roseville, MN 55113-1105 LEADERS IN PUBLIC FINANCE Phone: 651-697-8506 Fax: 651-697-8555 skvilvang@ehlers-inc.com Development Parcel New Phase Development Valuation Vacant Apache Office Site Phase IIIA t 80 to 100 Senior A $5.6 to $7 Million JA Cadawallader Office Site 40 Senior Co -Op $4.8 Million Baker's Square Parking Phase 11113q 5,000 to 10,000 S /Nt $4.2 to $5.6 Million Vacant Don's Car Wash Site Commercial -- -—..-... Mart Car Fuel Marc and Fuel— —-... ...__..-.. — Pahse_IIIC_ .-._. - .------- —8 0 ----too100 Unit Senior $5.6 to $7 Million Wash Continuum of Care TOTAL N/A N/A mit $24.4 Million E H L E RS 3060 Centre Pointe Drive 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 10, 2010 Page 2 They requested an 18 -month timeframe to commence development on the two (2) phases. Based upon the above referenced development program, following is a listing of the proposed business terms for the new Phase III Development Agreement: 1. General a. Parties. The Agreement is between the City, HRA and Apache Redevelopment LLC, the Master Redeveloper for Phase I and Phase II. The Redeveloper is acting more as a land Redeveloper in trying to find third parties to develop the Phase IIIA site (former Apache Office site which is currently vacant and the JA Cadwallader site), the Phase IIIB site (former Don's Car Wash site which is currently vacant and the Baker's Square parking sites) and the Phase IIIC site (former Fuel Mart and Fuel Mart Carwash sites). b. Past claimed Defaults. The City/HRA and the Redeveloper will each waive all claims of past defaults and the relationship will be governed by the new Phase III contract going forward. 2. Surviving Provisions of the Phase I Development Agreement a. Below Market Profit Tax Increment Assistance Increase. Following the final cost and profit certification process for the Phase IA condos if the return to the Redeveloper is less than 12% of the Total Development Cost (TDC) the IIRA was to provide the Redeveloper a note in a principal amount necessary for them to realize a 12% Profit. For Phase IA, the Redeveloper profit was expected to be $3,192,382. Due to the downturn in the condominium market and economy in general, sales slowed to level that wasn't expected. The TDC for the project rose due to holding costs associated with unsold units. 'Phe TDC were approximately $37.6 million. After paying the bank loan and other development related costs, the Redeveloper received no profit and actually has a loss of $635,095. In order to get to their desired 12% profit, the HRA would need to provide them with a subordinate TIF note for $5,080,000. This note is subordinate to the outstanding TIF revenue bonds that were sold for the project. These bonds have a "sinking" provision which means that any unused discount that isn't needed to pay debt service is used for prepayment on the bonds. Since these bonds do not have a call date until February 1, 2014, the first opportunity for the Redeveloper to receive any payment on this subordinate note is 2014, if the City is able to refinance these bonds at better rates. If the City is unable to finance the bonds with better rates, then the Redeveloper's payments will not be made until the bonds are paid in fill. Overall, it is estimated at this time that there will only be approximately $980,000 available for payment on this subordinate note, which would only provide the Redeveloper with less than a 1% profit (conservative estimate based upon no inflation). 3. Surviving Provisions of the Phase II Development Agreement a. Short Fall Note. The Redeveloper has finalized Phase IIA (town homes). Under the prior agreement, if the City sold tax-exempt `PIF revenue bonds at the request of the Redeveloper and there were insufficient proceeds from this sale to repay the qualified costs, then the Redeveloper would get a subordinate, short fall note. The original PAYGO TIF note was for $937,520. Based upon preliminary sizing for tax-exempt TIP bonds completed in late 2009, it was estimated that the net proceeds would be approximately $610,000. Since the Redeveloper did expend the $937,520, they would get a subordinate TIF note in the amount of $327,520. 'Chis note would be payable from TIF generated from the town home 19 Mike Morrison Development Agreement — Phase III Silver Lake Village Redevelopment August 10, 2010 Page 3 development that is not needed to pay principle and interest on the tax-exempt revenue bonds (basically unused coverage on an annual basis). Current estimates show that this principle amount would be repaid over the term of the district. 4. Conveyance of Vacant Apache Office Site (North portion of Phase IIIA) a. Conveyance to the City/HRA. Apache Redevelopment LLC will deed this portion of Phase IIIA to the City/HRA for $1.00. They are required to deed the land free and clear of all monetary liens, and subject only to those encumbrances currently listed (prior lien from an architect that did drawings for a Redeveloper that was looking to develop the site). b. Repurchase of the Vacant Apache Office Site (North portion of Phase IIIA). Apache Redevelopment LLC or another third party Redeveloper can purchase this property from the City/HRA for Fair Market Value (FMV) determined by the City (based upon the proposed development) or a lesser amount if the City/HRA deem appropriate. In order for any Redeveloper to purchase the parcel they have to have approved plans by the City/HRA and have proof of financing for the project. If Apache Redevelopment LLC fails to meet the December 31, 2011 commencement of construction date, the rights to purchase this parcel terminate. At this time, it is anticipated that the site will be sold to a senior cooperative housing developer to construct approximately 40 units beginning in the spring/summer of 2011. Apache Redevelopment LLC has received a purchase agreement for the site in the amount of $400,000 and is working with the cooperative developer to finalize the purchase agreement. This purchase price and the corresponding development make this the FMV for the property and these proceeds would be paid to the City for reimbursement on the Fannie Mae loan. It should be noted that it is anticipated that the senior cooperative will only need to utilize 75 to 80 percent of the site. The remaining portion of the site will be made available for sale to the senior apartment developer who will be purchasing the south '/z of the Phase IIIA property (JA Cadawallader site). The land sale proceeds will be divided between the City and Apache Redevelopment LLC on a prorated basis (based upon square footage of the site). The City's portion will be to reimburse them for the Fannie Mae loan and the Redeveloper's portion will be pay off the batik loan. Phase III Tax Increment Use and Amount of Increment: Phase IIIA. All the tax increment generated from Phase IIIA (former Apache Office site which is currently vacant and the JA Cadwallader site) will go to repay the City for payment on the Fannie Mae Loan. It is currently estimated that Phase IIIA will be developed as two separate elements. The first development will be a 40 -unit senior cooperative with development commencing in the first quarter of 2011. A Redeveloper has been identified and Apache Redevelopment LLC, is reviewing the purchase agreement for the site. The second development will consist of 80 to 100 units of senior apartments. Currently no developer or timeline has been identified, but Apache Redevelopment LLC is M Mike Morrison Development Agreement — Phase III Silver Lake Village Redevelopment August 10, 2010 Page 4 actively meeting and pursuing third party developers. It is currently estimated that the amount of present value tax increment that will be generated from these two (2) developments is approximately $1.7 million (see attached site plan). Phase IIIB. The increment generated from Phase IIIB (Baker's Square parking and Don's Car Wash) will be made available to Apache Redevelopment LLC or a third party Redeveloper, dependent upon who develops the site. If there is any increment that is not needed by Apache Redevelopment LLC or a third party to develop the project, the excess amount will go first to the City to reimburse it for repayment of the Fannie Mae loan, second to the City to reimburse it for the five percent administrative costs it has been carrying and next to Apache to reimburse them for redevelopment costs they have not been paid for in Phase I (approximately $2 million). If the repayment to Fannie Mae and the City's administrative costs utilizes some or all the TIF not needed by the development, then Apache Redevelopment LLC will receive a subordinate note to have that amount paid out of TIF from Phase I that isn't needed for the various obligations. Phase IIIC. The increment generated from Phase IIIC (Fuel Mart and Fuel Mart Car Wash) will be made available to a third party developer. If there is any increment that is not needed by the third party to develop the project, the excess amount will go first to the City to reimburse it for repayment of the Fannie Mae loan, second to the City to reimburse it for the five percent administrative costs it has been carrying and next to Apache to reimburse them for redevelopment costs they have not been paid for in Phase I (approximately $2 million). If the repayment to Fannie Mae and the City's administrative costs utilizes some or all the TIF not needed by the development, then Apache Redevelopment LLC will receive a subordinate note to have that amount paid out of TIF from Phase I that isn't needed for the various obligations. 6. Redeveloper Obligations a. Outstanding Consultant Costs. The Redeveloper is required to pay the outstanding consultant costs through April 30, 2010. These costs total $161,877. The Redeveloper will pay the City $15,000 at the time of execution of the Agreement and the remaining $146,877 balance will begin to be paid to the City at the time the Phase IA Revenue bonds are refinanced (anticipated in 2014). The City will receive 50% of the increment not needed to pay debt service on the new bonds, until such time the outstanding consultant costs are paid in full. After that, any increment not needed to pay debt service on the bonds will go to pay the TIF obligation outlined in #2 above. b. Payment of Taxes. The Redeveloper is required to pay any unpaid taxes and all future taxes as they become due. Failure to pay taxes in a timely fashion is an event of default and is not subject to a cure period (cause for immediate termination of the Agreement). 21 Mike Morrison Development Agreement — Phase III Silver Lake Village Redevelopment August 10, 2010 Page 5 7. Payment of Special Assessments a. Existing Assessments. Currently there are existing assessment payments due and owing on the Phase IIIA parcels. The Redeveloper is required to become current in their tax payments, including currently due installments assessments. It is anticipated that at the time of sale of one or both portions of Phase IIIA, the outstanding special assessments will be paid in full (currently $59,583.32 for each parcel for a total of approximately $120,000). 8. Development Timeframe a. Commencement of Construction. The Redeveloper has until December 31, 2011 to commence construction on any element in Phase III. The Agreement will automatically terminate on December 31, 2011 as regards Phase III rights on any element not under construction. The termination will not affect TIF payments on Phases IA and IIB as set forth in section 2 9. Reporting Requirements a. Monthlv Reports. The Redeveloper agrees to provide the City/HRA with monthly updates on the progress of developing Phase III in a form acceptable to the City/HRA. Failure to provide monthly updates shall be an Event of Default. 10. Events of Default a. Development Dates. Failure to commence construction on any Phase III element by December 31, 2011 is an event of default. If the Redeveloper fails to commence any portion of Phase III, then their right to develop that particular phase terminates and their right to any tax increment for Phase III terminates. Please contact me at 651-697-8500 with any questions. cc: File 22 Silver Lake Village Phase III Area ►� • � : r. A tier Tti� ,��,1 � �..';3'iR`>`sa+�. r� 4E .ice � 1�:- -.,�' r I � ��� �I. - - � ^° I. s J'' �' Art I " �y ,, i• " �1 ^� � . y ra' .. r'#a � 1• f r .... � .yam . V f 5 -' 'rwl '+'�� "� A w `� � _ a �+.i 1 r• 1 -. . ' i f ' fr w: � � I •r ' ' r' r +�� �:;` ,� � a 1 iiriil N�f 1:�i IIIA t r �a t 3N ;WA" ?'.1 ..) ��... i 1 H It MI i _ . Si '� �, t I.t /!i � . , t 1� ^-.�;�f rf � 3 1 •C . , � At � 1! - R t it:ir '-t l �.�Ev .t !�r.t r 'i� ♦ ICI:.} lily. v' w v'�.r- 1 . AO MOO + _ 1�'I �.dl�'''a - �+ti.. i; _ • e 11 r. A.! c - jy,���`��� I I�}i �# P �y * - '�� w �a i� �'n f9 / ��� • l !� psi k9 �^�' . C e .y a++.a 1 � ~ � J pipetfxww� ^. ♦.cn,1�- t'r AI i +5' 1 r, r J �,�,�"''(•t3 � :. , R t •1'.Y �i �. ;'''"'��. . td»a•�, 1 �Il�i*ei;�n � , 'fir - "rr .��:��_,. rr _. +` ,.. 3°.....•.- ` ,. .. � ``.'oT..:r s t��,a + a I�, _ t _ E;:` -A 'TAM, )ik': Sr. Cooperative Phase IIIA Site Plan Sr. 23 m CITY OR ST, ANTHONY RESOLUTION NO. 10-056 RESOLUTION RELATING TO A PHASE III REDEVELOPMENT AGREEMENT BY AND AMONG THE CITY OF SAINT ANTHONY, MINNESOTA, THE HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF SAINT ANTHONY, MINNESOTA, AND APACHE REDEVELOPMENT, LLC (THE "DEVELOPER"). WHEREAS, the City of St. Anthony (the "City") and the St. Anthony IIousing and Redevelopment Authority (the "Authority") entered into a Phase I Redevelopment Agreement, dated December 19, 2003, as amended (the "Phase I Agreement"), under which the Developer agreed to construct, among other things, the Commercial Element, Rental Housing Element, Phase IA For Sale Housing Element, and Phase IB For Sale Housing Element; and WHEREAS, the Developer or its assignee, as applicable, satisfied Developer's obligations to construct the Commercial Element, Rental IIousing Element and Phase IA Element, and the Authority issued tax increment notes to the Developer or its assignee, as applicable, on the Commercial Element and Phase IA Element and those notes remain outstanding; and WHEREAS, Developer assigned its rights and obligations to construct Phase 113, but Developer's assignee has failed to commence construction on Phase 113 and the Developer will commence action to terminate that portion of the assignment relating to Phase IB and has agreed to facilitate development of Phase IB as part of a Phase III Development; and WHEREAS, pursuant to the Phase I Agreement and the Phase II Redevelopment Agreement, dated November 9, 2005, between the City, Authority and Developer (the "Phase II Agreement"), the Developer agreed to construct the Phase IIA Patio Homes Development, the Phase IIB Senior Housing Development and the Phase IIC Development; and WIIEREAS, the Developer completed the Phase ITA Patio Homes Development, but has not commenced construction of Phase I113 Senior Housing Development or the Phase IIC Development in accordance with the default dates in the development timeline in the Phase II Agreement; and WHEREAS, the Parties have agreed to cancel all rights and obligations under the Phase I Agreement and Phase II Agreement related to the Phase IIB Senior Housing Development; and WIIEREAS, the Parties have agreed to renegotiate the terms related to the Phase IB Element and the Phase IIC Development; and WIIEREAS, the City borrowed 'Three Million Three Hundred and Fifty Thousand Dollars ($3,350,000) from Fannie Mae to finance certain costs and expenses incurred in connection with the acquisition of various parcels of land in the Project Area (the "Authority Loan"); and WHEREAS, the Developer has failed to make payments to the City for the Authority Loan as required under the Mortgage, Assignment of Leases and Rents and Fixture Financing Statement, dated September 10, 2004, and the City and the Developer have negotiated a new plan for the timely repayment of the Authority Loan; and WHEREAS, the Developer has agreed to transfer a portion of Phase IB property to the City and, provided that certain conditions are met, the City has agreed to sell that portion of Phase IB property back to the Developer at a later date; and WHEREAS, the Developer currently owes the City certain funds for reimbursement of City consultant costs under the Phase I Agreement; and WHEREAS, the Parties agreed to waive the events of default under the Phase I Agreement and the Phase 11 Agreement prior to the date of the Phase III Redevelopment Agreement; and WHEREAS, the Phase III Redevelopment Agreement will identify the remaining obligations of the Parties under the Phase I Agreement and the Phase II Agreement and also outline the rights, responsibilities and obligations of the Parties related to the Phase III Development. NOW, THEREFORE, BE IT RESOLVED, by the City of St. Anthony, Minnesota as follows: That the Mayor and City Manager are authorized to enter into a Phase III Redevelopment Agreement by and among the City of Saint Anthony, Minnesota, the Housing and Redevelopment Authority of the City of Saint Anthony, Minnesota, and Apache Redevelopment, LLC. Adopted this 14th day of September, 2010. ATTEST': City Clerk Review for Administration: Mayor City Manager 25 MEMORANDUlki DATE:: August 24, 2010 September 14, 2010 TOt City Council FROM: Mike Mornson, City Manager Roger Larson, Finance Director ITEM: GENERAL FUND BUDGETILEVY At the March lst, May 3`d and August 2"d work sessions, the City Council and Staff discussed the preparation of the 2011 General Operating Budget. From those meetings, the consensus from the Council included: 1) O% increase in General Operating Levy. 2) Appropriation of Revenues to the General Fund are as follows: a. Bell Lane Clean-up $ 22,300 b. Clearwire Lease $ 24,000 c. 2009 Budget/Reserves 84,900 $131,200 3) Salary increase & employer health insurance contribution: a, To be determined - pending negotiations between the City Manager and the 3 labor unions). 4) All other line items will remain the same as 2010. Based on these parameters, Staff prepared a 2011 General Operating Budget totaling $5,478,000. This represents a $194,600 dollar or a 3.68% increase from 2010. The 2011 General Operating Levy will remain at $2,945,51 I, which is the same amount levied in 2009 & 2010, This levy is $108,606 less than the Levy Limit of $3,054,117 set by the Minnesota Department of Revenue. A. review of the proposed 2011 total levy is as follows: The proposed 2011 Capital Equipment Budget totals $330,400. These purchases are funded by a combination of liquor operations profits, MSA revolving funds, water filtration interest earnings, and the trade/sale of existing equipment and have no impact on the tax levy. Amount Increase General Operating Levy $2,945,511 $ - 0 - Road Improvement Levy $1,299,683 $ 53,269 Lease Revenue Bonds $ 406,676 $ 3,413 I -IRA Levy $ 110,500 $ - 0 - Tax Abatement $ 145,066 $ 68,809 PERA Levy $ 7,500 $ - 0 - Total Levy $4,914,936 $125,491 The proposed 2011 Capital Equipment Budget totals $330,400. These purchases are funded by a combination of liquor operations profits, MSA revolving funds, water filtration interest earnings, and the trade/sale of existing equipment and have no impact on the tax levy. 27 Page 2 Staff will continue to seek Grants and Donations from Federal, State and private sources to help offset the cost of operations and capital equipment. Some recent Grants and applications include: the $48,000 FEMA Grant for Fire Department equipment; application for a Homeland Security Grant that would fund 75% of the cost of an Outdoor Warning Siren (budgeted at $18,500); and the Police Department is working on a State Grant for squad car cameras that are budgeted in 2014. The final presentation of the 2011 Budget and Property Tax Levy is scheduled for the December 1401, 2010, Council Meeting. At themeeting, Staff will present a recap of the 2011 General Operating Budget and the impact of the 2011 Property Tax Levy. MINNESOTA- REVENUE Payable 2011 Final Overall Levy Limitation .Notice ST ANTHONY CLERK -FINANCE DIRECTOR CITY HALL 3301 SILVER LAKE ROAD ST ANTHONY, MN 55418 8/11/2010 ME The following is a listing of the factors used in determining your city's payable 2011 overall levy limitation. 1. PAYABLE 2010 ADJUSTED LEVY LIMIT BASE 2,982,551 2. INFLATION ADJUSTMENT (1.6784%) 1.016784 3A. 2008 HOUSEHOLD POPULATION 4,079 3B. 2009 HOUSEHOLD POPULATION 4,136 3C. 50 PERCENT OF HOUSEHOLD INCREASE ((3B - 3A) x.5) 29 3D. HOUSEHOLD ADJUSTMENT FACTOR - GREATER OF 1.0 OR (1 + 3C/3A) 1.006987 4A. PAYABLE 2009 TOTAL TAXABLE MARKET VALUE 869,823,300 4B. PAYABLE 2010 MARKET VALUE -NEW INDUSTRIAL CONSTRUCT 10,000 4C. PAYABLE 2010 MARKET VALUE - NEW COMMERCIAL CONSTRUCT 170,300 4D. PAYABLE 2010 MARKET VALUE - NEW C/I CONSTRUCT (413 + 4C) 180,300 4E. 50 PERCENT OF MARKET VALUE OF NEW C/I CONSTRUCT (41) x.5) 90,150 4F. NEW C/I ADJUSTMENT FACTOR - GREATER OF 1..0 OR (1 + 4E/4A) 1.000104 5. PAYABLE 2011 ADJUSTED LEVY LIMIT BASE (1 x 2 x 3D x 4F) 3,054,117 6A. 2011 CERTIFII3D LOCAL GOVERNMENT AID 0 613. 2011 ESTIMATED TACONTIE AIDS 0 6C. 2011 ESTIMATED WIND ENERGY PRODUCTION TAX 0 6D. 2011 CEIU'IFIED UTILITY VALUATION TRANSITION AID 0 6E. 2011 TOTAL CITY AID (6A + 6B -i- 6C 1- 6D) 0 7. PAYABLE 2011 INI:I'IAL OVERALL LEVY LIMIT (5 - 6E) 3,054,117 Proprrp, T(a Division 70: 651-556-6095 Mall Slalion 3340 r ,: 6 5 1 - SPul, MN 55I46-3340 rrc Call 711 R)r Miuncsotn An equal oppwYioirty employer City of St. Anthon 2011 Proposed Budget Budget Calendar --- 2011 Budget January 14 & 15, 2010 — Goal Setting, Financial Management Planning and Budgeting Discussions. March 1, 2010 — Work Session with Staff & City Council to Discuss 2011 Budget Goals & 5 -Year Capital Equipment Plan. April 27, 2010 — Public Hearing for Resident Input. Y May 3, 2010 —Work Session to Review 2011 Operating Budget & 5 -Year Capital Equipment deeds. August 2, 2010 — Work Session to Review Proposed 2011 Operating Budget and Tax Levy. August 24, 2010 — Presentation of the Proposed 2011 Operating Budget to the City Council. September 14, 2010 — Resolution Passed Setting Proposed 2011 Budget and Property Tax Levy and Announce the Date and Time of the Adoption Meeting. November 15, 2010 — Proposed Property Tax Statements mailed to Residents. December 14, 2010 — Presentation of 2011 Operating Budget & Final Adoption of the 2011 Property Tax Levy. 2011 Budget Parameters No Increase in General Fund Levy. . $2,945,511 (Same as 2010 Levy) Appropriation of Revenues: . $ 22,300 Residential Property Clean -Up. $ 24,000 Clear Wire Communications Lease. . $ 84,900 2009 Budget Reserves/Fund Balance. $131,200 Salary Increase . (To be Determined by Pending Negotiations between the City Manager and 3 Labor Unions). Employer Health Insurance Contribution . (To be Determined by Pending Negotiations between the City Manager and 3 Labor Unions). AILAII other Line Items Remain the Same. General Fund Budget/Levy 2010 2011 Dollar Budget Budget Increase $5,283,400 $5,478,000 $194,600 2010 2011 Dollar Levy Levy Increase $2,945,511 $2,945,511 * $ - 0 - `General Fund Levy is the same as 2009 & 2010 Levy. oil GENERAL FUND REVENUES Transfers Misc.4.7%� 8.2% Fines 2.2' Contracts 21.6% Ir R 3.1% Reserves 1.6% rcriinLa 4.5% Tax Levy 54.4% GENERALFUND EXPENDITURES Parks General Gov't Finance & ' �% Insurance Public Works 4.2% 5.2% 15.0% Inspections 2.0% Fire 16.4% Police 30.2% Contracts 19.3% W 31 State Legislature 2'008 Legislature Approved the Implementation of Levy Limits. "Years 2009, 2010 & 2011. General Fund Levy Limit is Set by MN Department of Revenue: • 2011 Levy Limit $3,054,117 . Proposed 2011 Levy $2,945,511 . Amount Under Levy Limit $ 108,606 2011 Total Proposed Levy 2010 2011 General Fund $2,945,511 $2,945,511* Road Improvements $1,246,414 $1,299,683 . Lease Revenue Bonds $ 403,263 $ 406,676 HRA Levy $ 110,500 $ 110,500 Tax Abatement $ 76,257 $ 145,066 PERA Levy $ 7,500 $ 7,500 Total Levy $4,789,445 $4,914,936** * O% Increase in 2011 General Fund Levy. **Total increase in all Levies — $125,491. Summary of 2011 Budget - General Operating Budget totals $5,478,000. No Increase in General Fund Levy. Salaries Increase/Employer Health Insurance Contribution: . To be Determined by Pending Negotiations between the City Manager and 3 Labor Unions All other Budget Line Items will Remain the Same as 2010. Proposed 2011 Capital Equipment Budget = $330,400 No Impact on Levy — Funded by Other Sources Liquor Operations Transfer Totals $417,200 $291,800 Provides Funding of General Fund. . $125,400 Provides Funding of Capital Equipment, - Total Increase in All Levies = $125,491. Next Steps in the Budget Process September 14th: . Approve Resolution Setting the Proposed 2011 Budget and Property Tax Levy. . Announce Bate & Time of Final Adoption of the 2011 Budget and property Tax Levy. Property Tax Notices Mailed — November 15, 2010 Final Presentation & Discussion: . Tuesday, December 14, 2010 - 7:00 PM. I Presentation of 2010 General Fund Budget and Property Tax Levy f Questions - Call the Finance Director (Roger Larson), (612) 782-3316 City of St. Anthony 2011 Proposed L. Budget CITY OF ST ANTHONY VILLAGE RESOLUTION No. 10-060 35 A RESOLUTION SETTING THE CITY OF ST. ANTHONY VILLAGE PROPOSED 2011 TAX LEVY AND BUDGET. WHEREAS, Minnesota State Law requires the City of St. Anthony Village provide Hennepin and Ramsey Counties with a proposed 2011 certified property tax levy and budget; and WHEREAS, the City Council discussed key financial issues and budgeting goals at the January, 2010, goal setting session, held a Public Hearing on April 27, 2010, reviewed the 2011 property tax levy, budget and the capital equipment needs at their March 1st, 2010, May 3rd, 2010 and August 2nd, 2010, work sessions; and WHEREAS, the City Council further reviewed the 2011 property tax levy, operating budget and the levy limits established by the Minnesota Department of Revenue at the August 24, 2010, council meeting; and WHEREAS, the Road Improvement Levy of $1,368,491.86 is reduced by the transfer of Chandler Tax Increment totaling $68,808.82 into the road improvement bond fund; and WHEREAS, the proposed tax levy and budget is contingent upon any revisions allowed if the current law is modified; and WHEREAS, the City Council will determine a definitive property tax levy and budget at the Tuesday, December 14, 2010 budget meeting at 7:00 p.m. with public input. NOW, THEREFORE, BE IT RESOLVED that: 1) The collectible 2011 proposed property tax levy is: General Fund Property Tax Levy $2,945,511.00 Road Improvement Levy $1,299,683.04 Lease Revenue Bonds $ 406,676.00 Housing & Redevelopment Authority Levy $ 110,500.00 Tax Abatement Levy $ 145,065.82 PERA Rate Increase Levy $ 7,500.00 Total 2011 Proposed Tax Levy $4,914,935.86 2) The 2011 General Fund Proposed Budget totals $5,478,000. 3) The City Council approves the reduction of the 2011 Road Improvement Levy for the 2009A G.O. Improvement Bonds by transferring $68,808.82 from the Chandler TIP Fund #321 into the 2009A Road Improvement Bond Fund II512. Adopted this 14th clay of September, 2010 -- Mayor --..----- ATTEST: City Clerk Reviewed for Administration: City Manager M: :;_ FUTURE COUNCIL AGENDA ITEMS September 14, 2010 Meeting Date Meeting Type Staff Items/Issues September 28 Regular Planning- Commission items from September 21 Consent Agenda Appointment of Election Judges for the November State General Election October 4 Worksession City Manager Finance Director Budget Items October 12 Regular Three Rivers Park Staff Silverwood Park Update October 26 Regular Planning Commission items fi-om October 19 City Manager Quarterly Goals Update November 9 Regular City Engineer Approve Plans & Specifications and order advertisement for bids for 2011 Street Improvement November 23 Regular Planning Commission iterns fi-om November 16 November 30 Special City Council .Joint Meeting with ISD #282 School Board December 14 Regular Consent Agenda Appoint Parks & Planning Commission Members City Manager Finance Director Approving the 2011 Budget December 28 Regular Planning Commission items from December 21 ** WORKSESSIONS - 1ST MONDAY OF THE MONTH AS NEEDED September 2010 Monthly Planner Monday Tuesday Wednesday Thursday Friday Saturday AugSunday 2010 1 2 3 4 Oct 2010 S M T W T F S S M T W T F S 1 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 3 4 5 6 7 9 9 15 16 17 18 19 20 21 10 11 12 13 14 15 16 22 23 24 25 26 27 28 17 18 19 20 21 22 23 29 30 31 24 25 26 27 28 29 30 31 5 6 7 8 9 10 11 HOLIDAY— tabor Clay 12 13 14 15 16 17 18 City Council Mtg 7 pm 19 20 21 22 23 24 25 Planning Commission Mtg 7 pm 26 27 28 29 30 City Council Mtg 7 pm Printed by Calendar Creator for Windows on 9/8/2010 October 2010 Monthly Planner Sunday Monday Tuesday Wednesday Thursday Friday Saturday 1 2 Sep 2010 Nov 2010 S M T W T F S S M T W T F S 1 2 3 4 1 2 3 4 5 6 5 6 7 8 9 10 11 7 8 9 10 11 12 13 12 13 14 15 16 17 18 14 15 16 17 18 19 20 19 20 21 22 23 24 25 21 22 23 24 25 26 27 26 27 28 29 30 28 29 30 3 4 5 6 7 8 9 Worksossion 10 11 12 13 14 15 16 Holiday— City Council Mtg Columbus Day 7 pm 17 .18 19 20 21 22 23 Planning Commission Mtg 7 pm 24 25 26 27 28 29 30 City Council Mtg 7 pm 31 Printed by Calendar Creator for Windows on 9/8/2010 S M Jan 2010 F S S M 'I' W T F S 9 1 2 3 4 5 1 2 3 4 5 6 7 8 9 10 11 13 14 15 16 17 18 20 21 22 23 24 2527 g 28 29 30 31 S M Feb 2010 F S s M 'r W T F 5 9 1 2 3 4 5 6 7 At10 810 11 12 13 14 15 ` •, 17 18 19 20 21 22 24 25 26 27 28 28 29 30 31 29 30 S M Mar 2010 F S S M T W T F S 9 © 2 3 4 5 6 7 810 6 7 11 12 13 14 15 : 17 18 19 20 21 22 24 25 26 27 28 29 30 31 29 30 31 S M Apr 2010 F S S M `r W "1' F s 9 Td 12 1 2 3 4® 17; 6 7 8 9 10 11T2 24 14 15 16 17 18 l9 21 22 23 24 25 26 28 29 30 31 S M May 2010 `r W T F S 2 M 4 5 6 7 1 8 9 Td 12 13 14 15 16 17; 19 20 21 22 23 24 26 27 28 29 30 31 24 25 26 27 2010 City Meetings Calendar "All dates and times of meeting are subject to change" 12 - City Council Meeting 19 - Planning Commission 26 - City Council Meeting 8 - Joint Meeting with Parks Commission - Parks Commission Mtg. 9 - City Council Meeting 16 - Planning Commission 23 - City Council Meeting 1 - Worksession 9 - City Council Meeting 16 - Joint Meeting with Planning Commission - Planning Commission Meeting - Joint Meeting with 15D #282 -7pm 23 - City Council Meeting 5 - Work session (tenative) 13 - City Council Meeting 20 - Planning Commission 27 - City Council Meeting 3 - Work session (tenative) 11 - City Council Meeting 18 - Planning Commission 25 - City Council Meeting 7 - Work session (tenative) 8 - City Council Meeting 14 - Parks Commission 15 - Planning Commission 22 - City Council Meeting cancelled Aug 2010 Jun 2010 S S S M T W T F 8 13 14 1 2 3 4 5 6 9 10 11 12 13 t 1 16 17 18 i9 20 2123 1921 24 25 26 27 28 30 28 29 30 2010 City Meetings Calendar "All dates and times of meeting are subject to change" 12 - City Council Meeting 19 - Planning Commission 26 - City Council Meeting 8 - Joint Meeting with Parks Commission - Parks Commission Mtg. 9 - City Council Meeting 16 - Planning Commission 23 - City Council Meeting 1 - Worksession 9 - City Council Meeting 16 - Joint Meeting with Planning Commission - Planning Commission Meeting - Joint Meeting with 15D #282 -7pm 23 - City Council Meeting 5 - Work session (tenative) 13 - City Council Meeting 20 - Planning Commission 27 - City Council Meeting 3 - Work session (tenative) 11 - City Council Meeting 18 - Planning Commission 25 - City Council Meeting 7 - Work session (tenative) 8 - City Council Meeting 14 - Parks Commission 15 - Planning Commission 22 - City Council Meeting cancelled Sep 2010 S M T W "1' l -, S 1 2 3 4 5 6 7 8 9 10 11 12 13 1#!+ 15 16 17 18 19 20 21 22 23 24 25 26 27 •269, 29 30 Aug 2010 Jul 2010 S S S M T W '1' F S 13 14 15 1 2 3 4 5 6 7 8 9 10 t 1 124014 18 '19: 20 15 16 17 18 1921 28 22 23 24 25 26 28 29 30 31 Sep 2010 S M T W "1' l -, S 1 2 3 4 5 6 7 8 9 10 11 12 13 1#!+ 15 16 17 18 19 20 21 22 23 24 25 26 27 •269, 29 30 Aug 2010 S S M `I' W `r F S f 3 4 5 6 7 8 11 12 13 14 15 16 _ 18 19 20 21 22 23 25 26 27 28 29 30 401 16 17 Sep 2010 S M T W "1' l -, S 1 2 3 4 5 6 7 8 9 10 11 12 13 1#!+ 15 16 17 18 19 20 21 22 23 24 25 26 27 •269, 29 30 28 29.>p Oct 2010 S SMTWTFS M 'r W T F S 1 2 3 4 1 2 3 41 5 6 7 8 9 10 11 13 14 15 16 17 18 '19: 20 21 22 23 24 25 4& 27 28 29 30 31 28 29.>p Nov 2010 S s M 'r W T F S 1 2 3 4 5 6 7 AM 10 11 12 13 14 I5;; 17 18 19 20 21 22 24 25 26 27 28 29.>p 13 - City Council Meeting 20 - Planning Commission 27 - City Council Meeting 2 - Work session (tenative) 10 - City Council Meeting 17 - Planning Commission 24 - City Council Meeting 31 - Joint Meeting ISD#282 13 - Parks Commission 14 - City Council Meeting 21 - Planning Commission 28 - City Council Meeting 4 - Work session (tenative) 12 - City Council Meeting 19 - Planning Commission 26 - City Council Meeting 1 - Work session (tenative) 9 - City Council Meeting 16 - Planning Commission 23 - City Council Meeting 30 - Joint Meeting ISD#282 6 - Work session (tenative) 13 - Parks Commission 14 - City Council Meeting 21 - Planning Commission 28 - City Council Meeting Dec 2010 S M `1' W T F S 1 2 3 4 5 Fi 7 8 9 10 11 12 13 .14 15 16 17 18 19 20 2t 22 23 24 25 26 27 1$ 29 30 31 13 - City Council Meeting 20 - Planning Commission 27 - City Council Meeting 2 - Work session (tenative) 10 - City Council Meeting 17 - Planning Commission 24 - City Council Meeting 31 - Joint Meeting ISD#282 13 - Parks Commission 14 - City Council Meeting 21 - Planning Commission 28 - City Council Meeting 4 - Work session (tenative) 12 - City Council Meeting 19 - Planning Commission 26 - City Council Meeting 1 - Work session (tenative) 9 - City Council Meeting 16 - Planning Commission 23 - City Council Meeting 30 - Joint Meeting ISD#282 6 - Work session (tenative) 13 - Parks Commission 14 - City Council Meeting 21 - Planning Commission 28 - City Council Meeting HOUSING AND REDEVELOPMENT AUTHORITY AGENDA CITY OF ST. ANTHONY VILLAGE September 14, 2010 Call to Order. Roll Call. I. Approval of September 14, 2010, H.R.A. Agenda. II. Consent Agenda. These items are considered routine and will be enacted by one motion. There will be no separate discussion of these items unless a Councilmember or citizen so requests, in which event the item will be removed from the Consent Agenda and placed elsewhere on the agenda. A. Approve August 24, 2010, H.R.A. Minutes. (pp. 1 — 2) B. Claims.(p.3) III. Public Hearings. IV. General Policy of Business of the H.R.A. A. Resolution 10-006; Resolution Relating to Phase III Redevelopment Agreement By and Among the City of St. Anthony, Minnesota, The Housing and Redevelopment Authority of the City of St. Anthony, Minnesota and Apache Redevelopment, LLC. ("The Developer"). Stacie I-vilvang, Ehlers & Associates, presenting. (tabled from the August 10, 2010 HKA meeting) (pp. 4 - 7) V. Staff Reports. VI. H.R.A. Commissioner Comments. VIL Information and Announcements. VIII. Adjournment. F:ACoautcil Meetings\20101091420101HRA agesidapg#.doa 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 CITY OF ST. ANTHONY HRA REGULAR MEETING MINUTES AUGUST 24, 2010 CALL TO ORDER. Chair Faust called the meeting to order at 7:44 p.m. ROLL CALL. Commissioners present: Chair Faust; Commissioners Gray, Jenson, Roth, and Stille. Commissioners absent: None. Also Present: Executive Director Michael Mornson. I. APPROVAL OF AUGUST 24, 2010 HRA MEETING AGENDA Motion by Commissioner Stille, seconded by Commissioner Gray, to approve the August 24, 2010 Housing and Redevelopment Authority Agenda as presented. Motion carried unanimously. IL CONSENT AGENDA. Motion by Commissioner Gray, seconded by Commissioner Jenson, to approve the Consent Agenda, which consisted of: A. M.R.A. Meeting Minutes of August 10, 2010; and B. Claims. III. PUBLIC HEARINGS. None. IV. GENERAL POLICY OF BUSINESS OF THE H.R.A. None. V. STAFF REPORTS None. VI. II.R.A. COMMISSIONER COMMENTS None. VIL INFORMATION AND ANNOUNCEMENTS None. Motion carried unanimously. 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Housing and Redevelopment Authority Meeting Minutes August 24, 2010 Page 2 VIII. ADJOURNMENT Chair Faust adjourned the meeting at 7:46 p.m. Respectfully submitted, Carol Hamer TimeSaver Off Site Secretarial, Inc. ATTEST: City Clerk Chair 2 N 3 N M oy Y �n \� 000 n x o 000 wm mio io C \H O woo W O O Y MM OH z x CE wn e m vi 0 y 71 yzMkm � NR qN H kr r n n x m n P5, Pd m LQ N rt m n n w x www M YYY n www x NYo � 000 io io m \\\ CJ YYY 'J� YYY ci UI 0 O L/] 7J H 1 O Y N Y J Omw 0 x m 0q0 0z owe o�� Z 9k oP� H W H m H leLl Y Y [�1 3 0 AMMO To: Mike Morrison — Executive Director From: Stacie Kvilvarg Date: September 14, 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 makeup note On August 19°i and 23`a staff met with the developer to discuss issues and proposed refinement of the terms. On August 30, 2010 staff met with the City Council at a work session to discuss the proposed terms based upon discussions with the developer. Attached you will find a copy of the memorandum dated August 10, 2010 which outlined all of the proposed terms of the Phase III agreement. Following are the changes discussed with the City Council at the work session as they relate to the terms in the previous memo: 2. Surviving Provisions of the Phase I Development Agreement a. Below Market Profit Tax Increment Assistance Increase. The principle amount of this note will be set at $3.2 million which was the original amount of profit the developer expected to receive after sale of all the units. This is approximately $2 million less than the amount the note amount the developer would otherwise be entitled to (without defaults) due to the increased carrying and related costs of the project. 'this note will bear no interest and will be subordinate to the outstanding TIF revenue bonds that were sold for the project. If or when these bonds are refinanced, any TIF not needed to pay debt service on the new bonds will be split between the City and the developer 50/50 until the City is reimbursed 100 percent for its investment in repayment of the Fannie Mae loan and reimbursed for administrative costs advanced for the project. After that, 100 percent of the TIF will go to payment on the $3.2 million note, until paid in full. Any TIF available after repayment to the City and the developer will go to the City for use in accordance with the TIP plan. 5. Phase III Tax Increment a. Use and Amount of Increment: Phase VIII. The increment generated from Phase 11113 (Don's Car Wash) will be made available to a third party developer if needed. Any increment that is not needed by Apache Redevelopment LLC or a third party to develop the Phase 1113 project, the excess amount will be split 75/25 between the City and Apache Redevelopment LLC respectively until the City has been reimbursed 100 percent for its investment in repayment of the Fannie Mae loan and reimbursed for administrative costs advanced for the project. After the City is E H L E RS 3060 Centre Pointe Drive 10Roseville, MN 55113-1105 LEADERS IN PUBLIC FINANCE Phone: 651-697-8506 Fax: 651-697-8555 skvilvang@ehlers-inc.com 5 Mike Mornson Development Agreement— Phase III Silver Lake Village Redevelopment September 14, 2010 Page 2 fully repaid, 100 percent of the increment will go to the Apache Redevelopment LLC. It is anticipated that the amount of increment available for distribution between the City and Apache Redevelopment LLC will be approximately $108,000 (calculated with no inflation). If split, this would mean the City would retain $81,000 and Apache Redevelopment LLC would retain $27,000. If the City is repaid in full prior to the development, then $108,000 would be available to Apache Redevelopment LLC. Phase IIIC. The increment generated from Phase IIIC (Fuel Mart and Fuel Mart Car Wash) will be made available to a third party developer if needed. If there is any increment that is not needed by the third party to develop the Phase IIIC project, the excess amount will be split 75/25 to the City and Apache Redevelopment LLC respectively until the City has been reimbursed 100 percent for its investment in repayment of the Fannie Mae loan and reimbursed for administrative costs advanced for the project. After the City is fully repaid, 100 percent of the increment will go to the Apache Redevelopment LLC. It is anticipated that the amount of increment available for distribution between the City and Apache Redevelopment LLC will be approximately $325,000 (calculated with no inflation). If split, this would mean the City would retain $243,750 and Apache Redevelopment LLC would retain $81,250. If the City is repaid in full prior to the development, then $325,000 would be available to Apache Redevelopment U.C. The Development Agreement will state that the principle amount of the subordinated TIF note for these two phases shall not exceed $433,000 (combined amount of the two phases). hr addition, Apache Redevelopment LLC is required to provide documentation to the City that shows there was a loss of at least this amount to them for the overall project. As you recall, the current agreement states that the Developer has until December 31, 2011 to "commence construction" on any one of the three phases. The current language stated that the definition of commence construction was pulling a building permit for a particular phase. Based upon direction from the Council, we have added a provision that they have to prove to the City's satisfaction that the Developer has project financing and the developer has an actual ownership interest in the land (at least a purchase agreement). Please contact me at 651-697-8506 with any questions. cc: Jay Lindgren — Dorsey & Whitney File HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF ST. ANTHONY RESOLUTION NO. 10-006 RESOLUTION RELATING TO A PHASE III REDEVELOPMENT AGREEMENT BY AND AMONG TIIE CITY OF SAINT ANTHONY, MINNESOTA, THE HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF SAINT ANTHONY, MINNESOTA, AND APACHE REDEVELOPMENT, LLC (THE "DEVELOPER"). WHEREAS, the City of St. Anthony (the "City") and the St. Anthony Housing and Redevelopment Authority (the "Authority") entered into a Phase I Redevelopment Agreement, dated December 19, 2003, as amended (the "Phase I Agreement"), under which the Developer agreed to construct, among other things, the Commercial Element, Rental Housing Element, Phase IA For Sale IIousing Element, and Phase IB For Sale Housing Element; and WHEREAS, the Developer or its assignee, as applicable, satisfied Developer's obligations to construct the Commercial Element, Rental Housing Element and Phase IA Element, and the Authority issued tax increment notes to the Developer or its assignee, as applicable, on the Commercial Element and Phase IA Element and those notes remain outstanding; and WHEREAS, Developer assigned its rights and obligations to construct Phase IB, but Developer's assignee has failed to commence construction on Phase IB and the Developer will commence action to terminate that portion of the assignment relating to Phase IB and has agreed to facilitate development of Phase IB as pint of a Phase IR Development; and WHEREAS, pursuant to the Phase I Agreement and the Phase II Redevelopment Agreement, dated November 9, 2005, between the City, Authority and Developer (the "Phase II Agreement"), the Developer agreed to construct the Phase IIA Patio Homes Development, the Phase IIB Senior Housing Development and the Phase IIC Development; and WHEREAS, the Developer completed the Phase IIA Patio Homes Development, but has not commenced construction of Phase IIB Senior IIousing Development or the Phase IIC Development in accordance with the default dates in the development timeline in the Phase II Agreement; and WHEREAS, the Parties have agreed to cancel all rights and obligations under the Phase I Agreement and Phase II Agreement related to the Phase IIB Senior Housing Development; and WHEREAS, the Parties have agreed to renegotiate the terms related to the Phase IB Element and the Phase IIC Development; and WHEREAS, the City borrowed Three Million Three Hundred and Fifty 'thousand Dollars ($3,350,000) from Fannie Mae to finance certain costs and expenses incurred in connection with the acquisition of various parcels of land in the Project Area (the "Authority Loan"); and WHEREAS, the Developer has failed to make payments to the City for the Authority Loan as required under the Mortgage, Assignment of Leases and Rents and Fixture Financing Statement, dated September 10, 2004, and the City and the Developer have negotiated a new plan for the timely repayment of the Authority Loan; and WHEREAS, the Developer has agreed to transfer a portion of Phase IB property to the City and, provided that certain conditions are met, the City has agreed to sell that portion of Phase IB property back to the Developer at a later date; and WHEREAS, the Developer currently owes the City certain funds for reimbursement of City consultant costs under the Phase I Agreement; and WIIEREAS, the Parties agreed to waive the events of default under the Phase I Agreement and the Phase 1I Agreement prior to the date of the Phase III Redevelopment Agreement; and WHEREAS, the Phase III Redevelopment Agreement will identify the remaining obligations of the Parties under the Phase I Agreement and the Phase II Agreement and also outline the rights, responsibilities and obligations of the Parties related to the Phase III Development. NOW, THEREFORE, BE, IT RESOLVED, by the St. Anthony Housing and Redevelopment Authority as follows: That the Chair and Executive Director are authorized to enter into a Phase III Redevelopment Agreement by and among the City of Saint Anthony, Minnesota, the Housing and Redevelopment Authority of the City of Saint Anthony, Minnesota, and Apache Redevelopment, LLC. Adopted this 14th day of September, 2010. Review for Administration: Chair Executive Director