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HomeMy WebLinkAboutAug 11, 1980SPECIAL MEETING OF THE CITY COUNCIL OF COLUMBIA HEIGHTS August ll, 1980 meeting was called to order by Mayor Nawrocki at 7:0o PM. Pursuant to due call and notice thereof, a meeting of the City Council of the City of Columbia Heights, Anoka County, Minnesota (the "City"), was duly assembled at the City Hall in said City on the llth day of August, 1980, at 7:00 PM for the purpose of opening and considering bids for awarding the sale of $8,175,OO0 aggregate principal amount of General Obligation Tax Increment Bonds of 1980, of the City. The following members were present: '; Mayor Bruce Nawrocki, E."Sebe" Heintz,Gayle Norberg, Kenneth Hentges, Walter Logacz and the following were absent: None 2. Public Hearings a. Opening of Bids for General Obligation Bonds--S8,187,000 Phil Chenoweth, representative for Ehlers and Associates, Inc., financial specialists, presented two bids for the General Obligation Bonds. They were opened and read aloud. The first bid was from Continental Bank of Chicago, Ill. with a net interest cost of $10,436,316.15 and a net interest rate of 8.632.00%. The second bid was from Northwestern National Bank of Mpls. with a net interest cost of $10,146,256.16 and a net interest rate of 8.3920%. Both bids had checks enclosed for the amount ~f $163,500.O0. Mr. Chenoweth referred the Council to the Dow Jones Bond Index as of August ll, 1980 which is 9.44%. He reflected on the strength of the City's bonds in that the bids came in more than a full percent lower than the Index. Roger Jensen, Director of HRA, advised the Council that the higher interest rate doesn't change anything from the original projection of 7 3/4% except the reimbursement that was originally scheduled for 1984 and 1985 may come in later. This may not be necessary because of the w~y that the budget was put together in that it was very conservative on the revenues. Phil Chenoweth gave the figures from the official statement for the total of interest and principal of $17,544,944.00 and the bid was for a total of interest and principal of $)8,206,325.00. He further explained that once the bid is accepted the interest and principal is locked and will not change. The City Manager advised the Council that all of the figures should be completed on the resolution being presented before the Council should vote on it. Motion by Logacz, second by Heintz to adjourn the hearing for further consideration when all of the figures for the resolution are properly filled in on the document. Roll Call: All ayes b. Re-Opening of Public Hearing on Project #8008; the alley behind the 2000 Block on Fairway Drive. The City Manager explained the background on this project.A petition was presented by residents requesting an alley improvement. They were given cost estimates from the Engineering Department at the time they requested the first public hearing. At the first hearing the estimated costs had gignificantly increased and the petitioners preferred to cancel their request. Tonight's hearing has as its purpose the rescinding of the resolution. The City Manager recommended that the resolution not be rescinded but that the Council consider picking up part of the costs of the ~roject. He further explained that the cost to the City for maintenance was about $520 annually. The City of Minneapolis has property abutting the south side of the alley and pays no maintenance nor improvement costs.This improvement is unusual, in that, the residents on the north side of the alley bear the entire cost. The Mayor polled the residents at the meeting as to their feelings on continuance of the project. Only one resident spoke in support of continuing the project. She preferred the paving be done as she hat ~mall children who r!~v in the alley. SPECIAL MEETING August ll page 2 Other residents felt this project should not be considered as one of being a play- ground nor a place for children to play but one of a thoroughfare for vehicles.The last resident to voice an opinion was Mr. Art Mundy, 2104 Fairway Drive. Mis prime concern at this point was maintaining peace and tranquility in his neighborhood. He views this whole issue as one which would cause divisiveness in an area where, in his opinion, harmony has been maintained for many years. Keeping in mind that only one side of the alley was being assessed, the Mayor questioned the residents as to their feelings if the assessment were to be set at $400.00. This figure would be $221.O0 less than the original estimate. The residents were polled and a majority found that figure acceptable. Councilman Norberg felt this figure could not be guaranteed and that the residents were bargaining away their position. Motion by Norberg to rescind the project. Motion dies for lack of a second. Councilman Logacz felt the Council should make a definite commitment to the residents at the meeting for the City to absorb any overrun of the $400.00 that results so they would know exactly how much this project would cost them if it is authorized. Motion by Heintz, second by Logacz to authorize the City. Manager to proceed with the project and the costs per assessed parcel not to exceed $400.00. Motion by Hentges, second by Norberg to take a five-minute recess. Roll Call: Logacz, Heintz, Nawrocki--nay Norberg, Hentges--aye Motion for recess fails. Roll Call for motion for assessment on project on Project #8008 Logacz, Heintz, Nawrocki--aye, Norberg--nay, Hentges--abstain Motion passes 3. Communications a.Planning and Zoning Commission Recommendations 1.David Reschetz, 4516 6th St., Special Purpose Fence Motion by Norberg, second by Hentges to grant permission for the construction of a spec purpose fence at 4516 6th St. upon recommendation of the Planning and Zoning Commission Roll Call: All ayes 2.Jeff Slimak, 4501 Jefferson St. N.E. Special Purpose Fence The Council was shown the plans for this fence and was advised of the findings of the Planning and Zoning Commission. Motion by Norberg, second by Heintz to deny the appeal of the denial of the Planning and Zoning Commission for a special purpose fence at 4501 Jefferson St. Roll Call: Ali ayes The hearing for the purpose of opening and considering bids for awarding the sale of $8,175,000 aggregate principal amount of General Obligation Tax Increment Bonds of 1980, of the City was reopened. The following members were present: Mayor Bruce Nawrocki, E."Sebe" Heintz, Kenneth Hentges, Walter Logacz and Gayle Norberg, and no one was absent. The City Clerk of the City presented affidavits showing publication of notice of call for bids on $8,175.000 aggregate principal amount of General Obligation Tax Increment Bonds of 1980 (the "Bonds"), of the City, for which bids were to be received at this meeting, in accordance with the ordinance adopted by the City Council on July 7, 1980. Said affidavits were examined, found jto comply with the provisions of Minnesota Statutes, Chapter 475, and were approved and ordered placed on file. The City Attorney recommended that the words 'so as to meet when due the principal, premium, if any, and interest payments on all obligations issued by the City in aid of the Project,' be deleted from paragraph four of Exhibit A, Tax Increment Pledge Agreement. Bond Counsel, James Holmes,esq., concurred in the deletion, and the Exhibit was then amended by consent. The City Attorney then advised the Council that it was about to make a major policy decision as the Tax Increment Pledge Agreement would obligate the City to pay all redevelopment costs for the Project incurred by the Housing Authority and that the City Council would no longer have the right of approval over the expenditures of the bond proceeds if the proposed resolution and pledge agreement passed. SPECIAL MEETING page 3 AUGUST 11, 1980 Council Norber9 asked for a point of clarification on condemnation. He felt the information given was contrary to Council policy on this matter and it was never the intent of the Council to delegate the power of condemnation. Motion by Norber9 to remand the agreement to the City Attorney for deletion of that section that delegates authority to condemn. Motion dies for lack of a second. The Mayor advised the Council that two members of the Council serve on the five member board of the HRA and feels the interests of the City Council are well repre- sented on the HRA by them. Motion by Norberg, second by Heintz to waive the reading of the resolution there being ample copies available to the public. Roll Call: All ayes The City Council of the City (the"Council") proceeded to receive and open the bids for the sale of the Bonds. The following bids were received: Bidder Interest Rate Net Interest Cost ATTACHED The Council then proceeded to consider such bids. After the bids had been considered and discussed, member Hentges introduced the following resolution and moved its adoption: Regular meeting page 4 .Aug. ll RESOLUTION # 80-45 RESOLUTION AUTHORIZING THE ISSUANCE OF $8,175,000 GENERAL OBhIGATION TAX INCREMENT BONDS PLEDGING FOR THE SECURITY THEREOF TAX INCREMENTS FROM THE DOWNTOWN C.B.D. REVITALIZATION PROJECT AND AUTHORIZING EXECUTION OF A TAX INCREMENT PLEDGE AGREEMENT BE IT RESOLVED by the City Council (the "Council") of the City of Columbia Heights, Minnesota, (the "City") as follows: 1. That on the 25th day of June, 1980, the C~uneQ of the City carried out the first reading of Ordinance No. 915 authorizing the publication of the Official Notice of Bond Sale of the $8,175,000 General Obligation Tax Increment Bonds of 1980 (the "Bonds"). The Council held the second reading of Ordinance No. 915 on the 7th day of July, 1980. On the 7th day of Judy, 198,0, the Council adopted Ordinance No. 915 on a 4-1 vote and by a 5-0 vote approved a motion to publish the Official Notice of Bond Sale. BancNorthwest/Northern Trust Co ~ · Juran and Moody* 2. That the bid of First Nat'l. Bank of St. Paul andto purchase $8,175,000 General ObLigation Tax Increment Bonds of 1980 (the "Bonds"), of the City, in accordance with the notice of bond sale dated June 25. 1980 , at the rates of interest hereinafter set forth, and to pay therefor the sum of $~8.88~is hereby found, determined and declared to be the most favorable bid received, and is hereby accepted and the ~oncls are hereby awarded to said bidder. The Clerk- Treasurer of the City (the "Clerk-Treasurer-) is authorized and directed to retain the deposit of said bidder and to forthwith return the good faith checks or drafts to the unsuccessful bidders. The Bonds shall be payable as to principal and interest at the main office of the Northwestern National Bank of Minneapolis, Minnesota. 3. That the Bonds in negotiable coupon form shall be dated September 1, 1980 and shall be issued forthwith. The Bonds shall be 1635 in number and numbered from I to 1635, inclusive, in the denomination of $5,000 each. The Bonds shall mature serial]y, lowest numbers first, on March 1 in the years and amounts as follows: Year' Amount Year Amount Year Amount 1983 $10,000 1990 $350,000 1997 $700,000 1984 10,000 1991 425,000 1998 700,000 1985 - 1992 475,000 1999 700,000 1986 140,000 1993 525,000 2000 700,000 1987 190,000 1994 550,000 2001 ?00,000 1988 250,000 1995 650,000 2002 100,000 1989 300,000 1996 700,000 4. That the Bonds shall provide funds for a redevelopment project, as defined in Minnesota Statutes, Section 462.421, Subc~ 13, undertaken by The Housing and Redevelopment Authority in and for the City of Columbia Heights, Minnesota (the "Authority") and designated as the Downtown C.B.D. Revitalization Project (the "Project"). Under the terms of a pledge agreement to be entered into between the Authority and the City pursuant to Minnesota Statutes, Section 462.585, tax *As joint account managers with associates Regular meeting Aug. page 5 increments derived from the Project area will be pledged to the payment of principal of and premium, if any, and interest on the Bonds. In compliance with Minnesota Statutes, Section 475.58, the estimated collection of tax increments from the Project area exceeds 2096 of those costs of the Project for which the Bonds are sold. The costs of the Project shall include the costs enumerated in Minnesota Statutes~ Section 475.65, and it is estimated that raid costs will be at least u~qual to the amount of the Bonds herein authorized. Work on the Project shall proeeu~d with due diligence to completion. $. That the Bonds of this issue maturing in the years set forth below shall bear interest, payable March 1, 1981, and semiannually thereafter on Sep- tember I and March 1 of each year, at the rates per annum, according to the y~ars of maturity, as follows: 1983 maturities at 8.00 % 1993 1984 maturities at 8.00 96 1994 1985 maturities at 8.00 96 ]995 1986 maturities arS.00 96 1996 1987 maturities arS.00 % 1997 1988 maturities at8.00 96 1998 1989 maturities at ~ 96 1999 1990 maturities at{~ 96 2000 1991 maturities at g-~% 2001 1992 maturities atg-~% 2002 maturities at 8. O0 maturities at ,8. O0 maturities'at 8.00 maturities at 8,10 maturities at .,8.25 maturities at 8.~10 maturities at 8.50 maturities at 8.60 maturities at 8.75 maturities at 8.75 6. That the Bonds maturing in 1991 and later years will be subject to redemption and prepayment at the option of the City in inverse order of serial numbers on March 1, 1990, and any interest payment date thereafter, at the following prices plus accrued interest to the date of redemption: Redemption Date Redemption Prices March 1, 1990 - September 1, 1993 March 1, 1994 - September 1, 1998 March 1, 1999 and thereafter Par plus 2% Par plus 1.5% Par Published notice of redemption shall in each case be given in' accordance with law, and at least thirty (30) days prior thereto mailed notice of redemption shall be given to the bank where the Bonds are payable and 1o the last known registered holders, provided that published notice alone shall be effective without mailed notice. Holders desiring to receive mailed notice must register their names, addresses and bond serial numbers with the City Clerk-Treasurer. 7. That the Bonds and interest coupons to be issued hereunder sh~U be in substantially the following form: · Regular meeting page 6 NO. Aug. ll UNITED STATES OF AMERICA STATE OF MINNESOTA ANOKA COUNTY CITY OF COLUMBIA HEIGHTS $8,175,000 GENERAL OBLIGATION TAX INCREMENT BONDS SERIES 1980 $5,000 KNOW ALL MEN BY THESE PRESENTS that the City of Columbia Heights, Anoka County, Minnesota (the "City"), certifies that it is indebted and for value received promises to pay to bearer the principal sum of FIVE THOUSAND DOLLARS on the first day of September, 19 , and to pay interest thereon from the clare hereof until the principal is discharged at the rate of percent ( %) per annum, payable on the first day of March, 1981, and · emiannually thereafter on the first day of September and the first day of Mareh in each year in accordance with and upon presentation and surrender of the interest coupons attached hereto, as each severally become due. Both principal and interest are payable at * or any successor Paying Agent duly appointed by the City, in any coin or currency of the United States of America which at the time of payment is legal tender for public and private debts. Bonds maturing in 199] and later years will be subject to redemption and prepayment at the option of the City in inverse order of serial numbers on March 1, 1990, and any interest payment date thereafter, at the following prices plus accrued interest to the date of redemption: Redemption Date March 1, 1990 - September 1, 1993 March 1, 1994 - September 1, 1998 March 1, 1999 and thereafter Redemption Prices Par plus 2% Par plus 1.5% Par Published notice of redemption shall in each case be given in accordance with law, and at least thirty (30) days prior mailed notice of redemption shall be given to the Paying Agent where said bonds are payable and to the last known registered holders, provided that published notice alone shall be effective without mailed notice. Holders desiring to receive mailed notice must register their names, .addresses and bond serial numbers with the Clerk-Treasurer of the City. This bond constitutes a general obligation of the City, and the full faith and credit and taxing powers of the City have been and are hereby irrrevoeably pledged to provide moneys for the prompt and full payment of said principal and interest when each becomes due. This bond is one of an issue in the aggregate principal *the main office of the Northwestern National Bank of Minneapolis, Minnesota a,,,ount of $8,175,000 all of like date and tenor, except as to serial number, maturity, interest rate and redemption privilege, which bond has been issued pursuant to and in full conformity with the Constitution and laws of the State of Minnesota. This bond is payable out of the General Obligation Tax Increment Bonds of 1980 Account of the City. ri' IS HEREBY CERTIFIED AND RECITED that all acts, conditions and things required by the Constitution and laws of the State of Minnesota to be done, to happen and to be performed, precedent to and in the issuance of this bond, have been done, have happened and have been performed, in regular and due form, time and manner as required by law, and this bond, together with all other debts of the City outstanding on the date hereof and the date of its actual issuance and delivery, does not exceed any constitutional or stktutory limitation of indebted- ness. The corporate seal of the City has been omitted from this bond as permitted by law. IN WITNESS WHEREOF, the City of Columbia Heights, Anoka County, Minnesota, by its City Council has caused this bond to be executed in its behalf by the Mayc~ and the City Manager of the City, one by manual and one by facsimile. signature, and has caused the interest coupons to be executed and authenticated'by the facsimile signatures of said officers, ail as of September 1, 1980. /s/ Robert S. Bocwinski /s/ Bruce G. Nawrocki City Manager Mayor (Certificate as to Legal Opinion) We, the undersigned, Mayor and City Manager of the City of Columbia Heights, Minnesota, hereby certify that except for the date line, the foregoing is & full, {~ue and compared copy of the legal opinion of Messrs. Holmes & Graven of Minneapolis, Minnesota, which was delivered to us upon delivery of the bonds and is now on file in the offices of the City of Columbia Heights, Minnesota. (fas elm ile) (fa esi mile) City Manager Mayor (Form of Coupon) No. $ On the first day of September (March), 19___, un]ess the the bond described below is called for earlier redemption, the City of Columbia Heights, Anoka County, Minnesota will pay to bearer at the main office of the Northwestern {~tiona] Bank* or any successor Paying Agent duly appointed by the City, the sum shown hereon for interest then due on its General Obligation Tax Increment Bond of 1980, dated September 1, 1980. /si Facsimile /s/Fac~imfae City Manager Mayor Regular Meeting Aug..ll page 8 8. That the Bonds shall be executed on behalf of the City by the Mayor and City Manager of the City, one by manual and one by facsimile signature, and be sea]ed with the seal of the City; provided, however, that the corporate seal may be omitted on the Bonds as permitted by law. The interest coupons appertaining thereto shall be executed by the printed, engraved, lithographed or otherwise reproduced facsimile signatures of the Mayor and City Manager of the City. 9. That the legal opinion of Messrs. Holmes & Graven of Minneapolis, Minnesota, respecting the validity and enforceability of the Bonds and the tax exemption of the interest on the Bonds shall be reproduced on the reverse ~ide of each Bond at the request of the purchaser and shall be certified by the faesimLle signature of the City Manager and the Mayor. The Bonds when so prepared and executed shall be delivered, together with the signed legal opinion of Messrs. I{olmes & Graven of Minneapolis, Minnesota, by the Clerk-Treasurer or other officer of the City to the purchaser thereof upon receipt of the purchase price, and the said purchaser shall not be obliged to see to the proper application thereof. 10. That there is hereby created a special account designated "Project Aecount~ held and administered by the Clerk-Treasurer of the City separate and apart from all other accounts of the City. Said Project Account sh~]] be maintained in the manner specified until all of the Bonds herein authorized, and any other general obligation tax increment bonds hereafter issued to complete the Project, including any modifications or additions thereto, and the interest thereon have been fully paid and the City has been fully reimbursed from the pledge of tax increments for all of the principal and interest of the Bonds paid by the City from taxes levied on property in the City other than the Project area. In said Project Account there shall be maintained four separate funds, to be designated as the "Capital Fund", the "Capitalized Interest Fund", the "Debt Service Fund", and the 'rDiseharge Fund", respectively. The proceeds of the sale of the Bonds, less the amount of the proceeds of the Bonds deposited in the Capitalized Interest Fund, and Jess any premium and accrued interest received thereon, shall be credited to the Capita) Fund, from which there shall be paid all costs and expenses of the Project, inc]ucling the cost of any construction contracts heretofore let and all other costs incurred and to be incurred, of the kind authorized in Minnesota Statutes, Section 475.65; and the moneys in said account shall be used for no other purpose. There shall be deposited in the Capitalized Interest Fund the amount of proceeds of the Bonds which is equal to the interest which wi]J be due on the Bonds on March 1, 1981, September 1, 1981, and March 1, 1982. The amount in the Capitalized Interest Fund is hereby pledged to pay the interest due on the Bonds on such dates. Thirty days prior to each of the interest payment dates indicated above (March 1, 1981, September 1, 1981, and March 1, 1982), the amount of interest due and payable on the Bonds on such interest payment dates sh~l! be transferred to the Debt Service FuncL Any amounts remaining in the Capitally. ed Interest Fund after March 1, 1982, shall be deposited in the Debt Service Fund. There is hereby pledged and there shall be credited to the Debt Service Fund (a) any premium and all accrued interest received upon delivery of and payment for the Bonds, (b) collections of tax increments derived from the Project, all taxes herein levied for the payment of the Bonds, and any revenues derived from special assessments or other sources and available and pledged to pay principal and interest on the Bonds, and (d) all funds remaining in said Capital Fund after completion of the Project and payment of the costs thereof. In the event that there will be funds in the Debt Service Fund which will be available to pay all or a portion of the principal and interest due on the Bonds in any year, then the Clerk- Treasurer or other officer of the City shall cancel the levy imposed by Section 12 of this resolution for such year to the extent such funds are so available. In the Regular Meeting .Aug 11 page 9 event that at any t/me the amount in the Debt Service Fund exceeds the sum of (a) the pr/nc/pal amount of the Bonds maturing in the subsequent one year, (b) the interest which will be due and payable on the Bonds in the subsequent one year, and (c)*an amount equal to the greater of one year~ interest earnings on the Debt Service Fund or one-twelfth of the principal and interest due on the Bonds in the subsequent one year, then the amount in the Debt Service Fund which exceeds this sum shall be withdrawn from the Debt Service Fund and deposited in the Discharge Fund. The Debt Service Fund herein created shall be used solely to pay principal of and premium, if any, and interest on the Bonds and any other genera] obligation tax increment bonds hereafter issued and made payable from said account, except that upon discharge of the Bonds and such already outstanding or additional Bonds, the City sba1/ use the remaining funds in the Debt Service Fund to reimburse the City as provided above. There shall be deposited in the Discharge Fund only such amounts from the Debt Service Fund as exceed the sum described above. No port/on of the proceeds of the Bonds, premium (if any) paid for the Bonds, or accrued interest (if any) paid on the Bonds shall be deposited in the Discharge Fund. In the event that the amount in the Debt Service Fund is insufficient to pay the principal and interest to next become due on the Bonds, then the amount in the Discharge Fund (if any) shall be used to pay such principal or interest on the Bonds and the amount of the next levy (imposed by Section 12 of this resolution) shall be reduced by the amount in the Discharge Fund which will be used to pay such principal or interest on the Bonds. On March 1, 1990, any amounts remaining in the Discharge Fund after the payment of the principal or interest on the Bonds, as provided above, shall be used to redeem and prepay as many Bonds as possible in inverse order of serial numbers. On every interest payment date after March 1, 1990, the amounts in the Discharge Fund shall be used to redeem and prepay, in inverse order of serial numbers, as many Bonds as possible. 11. That the County Auditor of Anoka County (the "County Auditor") has certified that the original assessed value of real property with/n the Project area, as determined according to the asses_sment as of January 2, 1976, and certified by the County Auditor on August 23, 1977, is $2,336,687. Under the provisions of Minnesota Statutes, Section 462.585, subdivision 3, the County Auditor will include ordy the original assessed value in the assessed valuation upon which the County Auditor computes the rate of all state, county, city, school d/strict and other taxes, but will extend the rates so determined against the entire assessed valuation of such real property in each subsequent year, and the Count} Treasurer of Anoka County will remit t~ the Authority that proportion of the taxes paid each year on such real property which the excess of the assessed valuation over the original t~xable vaiue bears to such original value. 12. That the Authority will agree to segregate the tax increments derived from the Project on its official book~ and records and to remit to the above-described special fund of the City all of said tax increments pursuant to a Tax Increment Pledge Agreement in substantially the 'form attached hereto as Exhibit A. The officers of the City are hereby authorized to execute on behalf of the City such a Tax Increment Pledge Agreement in substantially the form attached hereto as Exhibit A. To provide additional moneys for the payment of said principal and interest there is hereby levied upon all of the taxable property in the City a direct annual ad valorem tax which shall be spread upon the tax rolls and collected with and as part of, other general property taxes in said City for the years and .in the amounts as follows: Lev~ Year Collection Year Amount Levied See attached computation of levy Said tax levies are such that if collected in full they, together with estimated collections of tax increment revenues pledged for the payment of the bonds, wfll produce at least five percent (5%) in excess of the amount needed to meet when due the principal and interest payments on the bonds (except for interest due on or before 9/1/82 , payable from funds which shall be on hand and irrevocably deposited to the Debt Service Fund of the Project Account as of the date of delivery of and payment for the bonds). Said tax levies shall be irrevocable so long as any of said bonds are outstanding and unpaidl provided that the City reserves the right and power to reduce the levies in the manner and to the extent permitted'by Minnesota Statutes Section 475.61, subdivision 3, and this ~esolution. The full faith, credit and taxing powers of the City shall be and are hereby irrevocably pledged for the prompt and full payment of the principal of and interest on the Bonds, as the same respectively become due arid payable. 13. That interest earnings from the investment of money in the Capital Fund and Capitalized Interest Fund shall be deposited in the Capital FuncL Interest earnings from the investment of money in the Debt Service Fund shall be deposited m the Debt Service Fund. Interest earnings from the investment of money in the Discharge Fund shall be deposited in the Discharge Fund. 14. That the City Clerk is hereby authorized and directed to f'fie a certified copy of this resolution with the County Auditor, together with such other information as each shall require, and to obtain from the County Auditor its certificate that the Bonds have been entered in such Auditor's Bond Register and that the Tax Increment Pledge AgPeement to be entered into by the City and the Authority to secure payment of the Bonds has been filed with the County Auditor. The motion for the adoption of the foregoing resolution was duJy seconded by member Logacz and upon vote being taken thereon, the following voted in favor thereof: _Hetntz Hentges Logacz Mayor Nawrocki and the following voted against the same: Norber9 Whereupon said resolution was declared duly pa~sed and adopted. Regular meeting Aug. 11 page ll 15. That the officers of the City are hereby authorized and directed to prepare and furnish to the purchaser of the Bonds, and to the attorneys approving the legality of the issuance thereof, certified copies of all proceedings and records of the City relating to the Bonds and to the financial condition and affairs of the City, and such other affidavits, certificates and information as are required to show the facts relating to the legality and marketability of the Bonds as the ~ame appear from the books and records under their custody and control or as otherwise known to them, and an such certified copies, certificates and affidavits, including any heretofore furnished, sb_~_]] be deemed representations of.the City as to the facts recited therein. CJmFU,MTIOP OF I'AX LEVY Ot~: $~',,17b,Ou6 GENERAL O,~;LIGATION TAX INCREMENT BONrtS CITY OF COLUMt:IA HEIGHTS, MINNESOTA LEVY' COLLECT AMOUNT AMOUNT + 5% TAX 1780 1781 $ 0 $ 0 $ 0 1781 1982 $ 682~50 $ 7170~8 $ 717100 1982 ]983 $ &82150 $ 716258 $ 71&300 1983 1984. $ 671350 $ 704918 $ 705000 198~ 1985 $ 811350 $ .... ~1918 $ 852000 1985 198& $ 850150 $ 892658 $ 892700 1786 1987 $ 89~0 $ 9~769E: $ 939700 1987 1988 $ 92LIVSO $ 971198 $ 971200 1988 1989 $ 950950 $ 998~98 $ 998500 1989 1990 $ 997950 $ 10~7848 $ 10~7900 19~0 1771 ~. I0 · .,~.,u $ 10,5~6~8 $ 106~700 lOOi lOO? $ 10~~'=~ ~,~ $ 1n~"° $ 1077300 1~'~2 ].993 $ 1008~50 ~. 1059398 $ 105~00 1993 ].99~ $ 106~950 $ 1118198 $ 1118200 1974 1~$'5 $ 1062750 $ 111&07~ $ 1116100 1995 l~& $ ~00~250 $ 105~5&~ $ 105~600 l~e~ ].P~7 $ 9q85O0 $ ~95925 $ 99&000 1~77 19T8 $ 88~700 $ 934185 $ 93~200 1798 i~9~ $ 830200 $ 871710 $ 871800 1999 2000 $ 770000 $ 808500 $ 808500 2000 2001. $ 108750 $ 11~188 $ 11~200 $ 17196?00 $ 18057~00 ~-.' OTE :. BOND PROCEEDS (CAPITALIZED INTEREST) OF $ WILL BE USED TO PAY $ 1009425,00 OF INTR 3-1-1981, 9-1-1981, 3-1-1982, PD'~;'[::Pi~'i PF,:EF'ARED BY EHLERS & ASSOCIATES, I~.,'C 1009~25,00 PYMTS DUE ular Meeting Aug. 11 page 12 STATE OF MINNESOTA COUNTY OF ANOKA CITY OF COLUMBIA HEIGHTS I, John E. Sehedler, being the duly quMified and aeting Clerk-Treasurer of the City of Columbia Heights, Minnesota (the "City"), DO HEREBY CERTIFY that I have compared the attached extract of minutes with the original thereof on file in my office of a regular meeting duly called and assembled of the members of the City Council of the City (the "City Council"), held on the llth day of August, 1980, which was open to the public, at which a quorum was present and acting throughout, and that the same is a full, true and complete transcript of the minutes of said meeting, insofar as such minutes relate to the opening and considering of bids for, and awarding the sale of $8,175,000 Genera] Obligation Tax Increment Bonds of 1980 of said City, and I DO FURTHER CERTIFY that the action taken at said meeting was approved by at ]east a four-fifths majority of all members of the City Council and as of the date of this certificate, is in full force and effect, and no resolution has been or previously was adopted or other a~tion taken which wo~ld in any way alter or amend the resolution adopted or change, revoke, or place conditions on the effectiveness of, the action taken at said meeting. WITNESS my hand and the seal of said City this/~/~cl ~ ay of 1980. hn E. Sehedler Clerk-Treasurer (Seal) Regular meeting Aug. page 1 3 EXHIBIT A TAX INCREMENT PLEDGE AGREEMENT THIS AGREEMENT, made this day of , 1080, by and between The Housir~ and Redevelopment Authority in and for the Cig of Columbia Heights, a pubkic body corporate and politic under the laws of the State of Minnesota (hereinafter called the "Authority"), and the City of Columbia Heights, a municipal corporation under the laws of the State of Minnesota (hereinafter called the "City")) WITN ESSETH: WHEREAS, pursuant to the provisions of Minnesota Statutes, Section 462.521, the Authority applied to the City Council of the City (the "City CouncLl") for approval of the undertaking of a redevelopment project designated as Columbia Heights Downtown C.B.D. Revitahzation Project (hereinafter eailed the "Project"), accompanied by a redevelopment plan, a statement of the method proposed for financing the Project, and the opinion of the city planning commission thereon, and by resolution (the "Resolution"), after publ/shed not/ce and public hearing, the City Council found and determined that the land in the Project would not be made available without the financial aid to be sought, that the redevelopment plan will afford maximum opportunity, consistent with the sound needs of the locality as a whole, for the redevelopment and renewal of such areas by private enterprise, and that the redevelopment plan conforms to a general plan for the development of the locality as a whole, and by the Resolution the City Council approved snid redevelopment plan, all pursuant to Minnesota Statutes, Section 462.521) and WHEREAS, the City Council by the Resolution approved the use of tax increment financing in the Project; and WHEREAS, pursuant to the provisions of Minnesota Stat.utes, Section 462.585, Subdivisions 2 and 3, the Authority on Au~'ust 23, 1977, requested the County Auditor of Anoka County (the "County Auditor") to certify the assessed valuation of all taxable real property within said Project as then most recently determined, and in each year thereafter the amount by which the original taxable value has increased or decreased, and the proportion which any such increase or decrease bears to the total assessed valuation of the real property for that year) and WHEREAS, pursuant to Minnesota Statutes, Section 462.585, the County Auditor is required in each year subsequent to certification to include no more than the original taxable value of such real property in the assessed valuation upon which the County Auditor computes the mill rates of all taxes levied by the state, the county, the rnunicipahty or town, the school district and every other tax/rig d/strict in which the project is situated, but is required to extend all mill rates so determined against the entire assessed valuation of such real property in the Project for that year, and, in each year for which the assessed valuation exceeds the ori~inaI taxable value, to remit to the Author/t), that portion of all taxes paid that year on the real property in the Project, which such excess valuation bears to Regu]ar meeting Aug. ll page 1 4 the total assessed valuation, the amount so remitted being referred to as the "tax increment" for that year; and WHEREAS, pursuant to Minnesota Statutes, Section 462.585, tax increments received with respect to the Project are required to be segregated in a ~;peeial account until the public redevelopment cost of the Project, as defined in Minnesota Statutes, Section 462.545, Subdivision 1, including interest on all money borrowed therefor, has been fully paid, and the City has been fuJ_ly reimbursed from the tax increments or from the revenues from the Project for any principal and interest on genera] obligation bonds issued therefor, after which such payment is to be re?o,ted to the County Auditor and the entire assessed valuation of the Project is thereafter to be included in the assessed valuations upon which the tax mH.l rates are computed and extended and taxes are remitted to all taxing districts; and WHEREAS, in order to pay said public redevelopment cost of the Project, the Authority has requested that the City Council issue genera] obligation bonds of the city pursuant to the provisions of Minnesota Statutes, Section 462.585, Minnesota Statutes, Section 273.77, and Minnesota Statutes, Chapter 475, and the City Council by resolution dated August 11, 1980, has authorized the issuance and sale of a series of General Obligation Tax Increment Bonds of 1980, in the aggregate principal amount of Eight Million One Hundred Seventy-Five Thousand DoLlars ($8,175,000) (the "Bonds"); and WHEREAS, pursuant to Minnesota Statutes, Section 462.585, Subdivision 4, the Authority is authorized to pledge and appropriate any part or all of the tax increments received for the Project and any part or all of the revenues received from lands in the Project while owned by the Authority, for the payment of the principal of and premium, if any, and interest on the Bonds and any additional bonds issued by the City upon request of the Authority, in aid of the Project, and to enter into this Agreement with the City respecting such pledge; NOW THEREFORE, the City and the Authority mutually covenant and agree as follows: (1) (2) (3) The Authority wLU proceed expeditiously with the acquisition and .redevelopment of such lands and the construction of such public Improvements within the Project as are needed for the elf actuation of the redevelopment plan, and with the disposal of lands so acquired and redeveloped in conformity with said plan, a~ provided in the ]~¢unieJpa] Housing and Redevelopment Act, Mirmesota Statutes, See- tJo,%s 462.41] e._~t seq. The City shM2 issue and sell bonds for the payment of the public redevelopment eosl of the Project, in the aggregate principal amount of Eight I~{iLlJon One Hundred Seventy-Five Thousand DoLlars ($8,175,000), and in such additional amount or amounts ~s the Authority shall request and the City CouncQ shall determine. Ail proceeds of bonds issued by the City in aid of the Project, all revenues and tax increments with respect to the Project which are received by the City from the Authority, and all income from the investment thereof by the City, shall be segregated by the City in a SPECIAL MEETING August 11 page 14 A special fund, which shall be used by the city solely for the payment of the principal of, premium, if any, and interest on said bonds and for the payment or reimbursement of the public redevelopment costs of the Project. (4) The Authority pledges and appropriates all of the tax increments and other revenues received from the Project and agrees to segregate all such tax increments in a special account and the various funds established by the Resolution. (5) When the entire public redevelopment cost has been paid, including payment or provision of a balance in the special fund sufficient for the payment of all principal and interest on said bonds, such fact shall be reported to the County Auditor. (6) An executed copy of this Agreement shall be filed with the County Auditor, and shall constitute the request and authorization of the Authority and the City to the County Auditor and County Treasurer of Anoka County to compute, collect and segregate said tax increments in accordance with the provisions of this Agreement and of Minnesota Statutes, Section 462.585, Subdivisions 2 to 4, inclusive. IN WITNESS WHEREOF, the City and the Authority have caused this Agreement to be duly executed on their behalf and their seals to be hereunto affixed and such signatures and seals to be attested to , as of the day and year first above written. THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF COLUMBIA HEIGHTS BY BY Its Chariman Its Secretary CITY OF COLUMBIA HEIGHTS BY Mayor BY City Manager SPECIAL MEETING August I1, 1980 page 15 Councilman Norberg feels this project falls outside the Legislature's definition of a financially acceptable project and harbors an element of risk for the tax- payers. He felt the increased interest rate questioned the feasibility of the project considering previous information from the financial consultant. His last concern was that of delegating the condemnation authority. Staff spoke to each one of his concerns. Phil Chenoweth, the financial consultant, felt the higher rate of interest would not have an adverse effect on the project. Walt Hartmann, represent- ative of the League of Minnesota Cities, spoke briefly to the study done by the League for the City of Columbia Heights on the Downtown Development Project. He feels based on his experience with a considerable number of projects of this type, ti,at the project is very sound and has innumerable safeguards built into it. In hi~ opinion the soundness of the project would not be affected by the higher interest rate. The Mayor, again, spoke to the question of delegating condemnation powers to the HRA. He reaffirmed his faith in the members of the HRA and reflected on the unique kinds of interest and experience that they individually bring to this committee. The Special Meeting was adjourned at 9:00PM. The Regular Meeting of the City Council was convened at 9:00PM. 1.Roll Call: Logacz, Heintz, Norberg, Hentges, Nawrocki--present 2. Invocation was offered by Councilman Norberg 3.Old and New Business a.OId Business 1.Review of Ordinance # 907, an ordinance amending Ordinance # 853, City Code of 1977, relating to overtime parking. This ordinance was passed and adoted by the Council previously with the provision that it would be reviewed at the first Council meeting in August of this year. A report from the Police Chief was presented comparing vandalism, theft from auto and hit & run accidents during the times the ordinance was in force and those times that it was not. These figures are for vehicles parked on the public streets. Also, reasons why the new parking ordinance was adopted were reviewed. 'NO PARER 2:00 A.M. TO 6:00 A.M. EEVIEW OFFENSE 3 MONTH CONTROL PERIOD, 78/79 3 MONTH ENFORCEMENT PERIOD, 79/80 VANDALISM THZFT FROM VEHICLE HIT & RUN ACCIDENTS 16 2 .5 2 17 6 TOTAL 38 10 DC7~ 73.7'4 'REGULAR MEETING August 11, 1950 page 16 The City Manager gave the details of the policies on snow-plowing and street-sweeping. The Mayor opened the meeting to the residents for discussion. A request was made for the Police Chief to supply the figures for vandalism and vehicular damage while parked in the alleys. Also, there was a request as to how many times the patrol cars pass through the alleys in the City. Sergeant Marchiniak advised the audience that alley patrol is done at random, explaining the work load of the cars on patrol would not permit regularly scheduled alley patrol. The police force has been reminded periodi- cally by the Chief to spend more time on patrolling alleys when it was feasible.The Mayor explained that this is not a revenue-raising ordinance. The $5.00 fine for parking has not covered the administration costs of the ordinance. He changed his position on this issue after receiving the results of a resident survey which sup- po~ed the ordinance and upon receiving the recommendations of Citizens Study Committee. A number of residents told of their particular circumstances relative to this ordinance. One resident complimented the Council for their action citing that the cities of Milwaukee and Arlington Heights, Ill. have had an identical ordinance for many years with very positive results. She felt the residents have had sufficient time to make preparation. When all of the residents who wished to do so had rela~ed their experiences with this ordinance the Mayor invited the circulators to present their petitions. Motion by Heintz, second by Logacz to place the petitions on file and to be referred to the City Clerk for purposes of verification and tabulation of the signatures. Roll Call: Ail ayes Recess: ll:OOPM Reconvene: ll:lOPM Motion by Hentges, second by Heintz to approve the minutes of the July 28th City Council meeting with attached corrections as presented in writing and that the reading be dispensed with. Roll Call: All ayes 4. Oral Petitions A resident inquired if the parking ordinance would be discussed at the next regular Council meeting and was advised it would if the City Clerk had his tabulations of the signatures completed. Two residents advised the Council their children had been asked to leave McKenna Park during the daytime because the ball fields were being prepared for night time ball games. They felt this was an abuse and a misuse of the park. Councilman Logacz, who is on the Recreation Board acknowledged the legitimacy of their complaint and advised them that measures are being taken to change this situation. Councilman Norberg has observed beer drinking and softball practice in McKenna Park. He knows it is not park policy to have practice in this park nor is drinking allowed. Regular meeting of the Council is adjourned, ll:20PM. Board of Trustees Meeting--Volunteer Firefighter Relief Association. ~EGULAR MEETING August ll, 1950 page 17 Regular. meeting of the Counci] reconvened at 12:O5 AM. Motion by Heintz, seocnd by Hentges to suspend the 1l:30 adjournment rule and complete the agenda. Roll Call: Logacz, Heintz, Hentges, Nawrocki--aye Norberg--nay 5. Ordinances and Resolutions a. Resolution to amend the By-Laws of the Columbia Heights Fire Department Relief Asso., Volunteer Division as recommended by the Board of Trustees to the City Council. Motion by Heintz, second by Logacz to dispense with the reading of the resolution there being ample copies available to the pub)lc. Roll Call: All ayes Motion by Heintz, second by Logacz toadoDZ the resolution authorizing amendments to the By-Laws of the Columbia Heights Fire Department Relief Asso., Vol. Div.. Roll Call: Logacz, Heintz, Hentges, Nawrocki--aye Norberg--nay b. Second Reading of Ordinance # 925 being an ordinance pertaining to prohibiting beer and intoxicating liquor in Huset Park from II:OOPM to 8:00 AM. Motion by Norberg, second by Hentges to dispense with the reading of Ordinance # 925 there being ample copies available to the public. Roll Call: All ayes The hour of l):O0 PM was amended at this second reading to read )):30 PM. OP~II~NCE NO, 925 BEING AN ORDI'NANCE AMENDING ORDINANCE NO. 853, CITY ~ODE OF 1977, PERTAINING TO PROHIBITING BEER AND XKIOXICAIING LIQUOR IN B13SET PARK FROM 11:30P.M. TO 8:00 A.M. The City of Coltw,hfa Heights does ordain: Sect~nn 1: Sect/on 10.201(16) of Ordinance No. 853, City Code of 1977, passed June 21, 1977, which reads as follcn~s, to-vii: "10.201(16) No person shall have in his possession or consume any ~ntox~cating liquor or non-intoxicating malt liquor in or upon any City park, parkway, or bathing beach within the City of Columbia Heights. Ia) Provided, however, the City Council may by affirmative vote grant per~sion to neighborhood groups and public service organizations to possess and consume non-intoxicating ~lt liquor in City parks, except before 8:00 a.m. and after 9:30 p.m. No'such permission ~y be granted for such possezs~on or consumption in or upon any public bathing beach or anywhere in Silver Lake bach Park. ~b) The prohibitions of this Section 10.201(16) shall not apply to Huset Park or the Columbia Heights Field House." is herewith a~nded to read as follows, to-~it: REGOLAR MEETING August ll, 1980 page 18 10. 201 (16) - No person shall have in kis possession or consumm any intoxicating liquor or non-intoxicating malt liquor in or upon any City park, parkway, or bathing beach within the City of Columbia Heights. (a) Provided, however, the City Council may by affirmative vote grant permission to neighborhood groups and public service organizations to possess and consume non-Intoxicating ~alt liquor in City parks, except before 8:00 a.m. and after 9:30 p.m. No such permission may be granted for such possession or consumption in or upon any public bathing beach or anywhere in Silver Lake Beach Park. (b) The prohibitions of th/s Section 10.201(16) shall not apply to Huset Park between the hours of 8:00 a,m. and ]]:30 p.m. and shall mot apply to the Columbia Meights Field House. Section 2: This Ordinance shall be in full force and effect from and after thirty (30) days after its passage, First reading: Second reading: Date of passage: 7-28-80 8-]1-80 8-11-80 Offered by: Logacz Seconded by: Heintz Roll call: All ayes Bruce G. Nawrock/, Mayor Jo-Anne Student, Council Secretary c. First reading of Ordinance # 926 being an ordinance amending Ordinance # 853, City Code of 1977, conveying certain real property to Brad H. Rettke and Elizabeth Rettke. There was some discussion as to why the purchase pr;ce of $10.00 was chosen and the effect of the sale of this property on adjacent properties. The City Manager told the Council that the property was being sold and requested a time frame from the City Attorney. Councilman Norberg suggested an option plan which could give the residents enough of the parcel to suit their needs and one which would not have a negative impact on the buildabi]ity of adjacent lots. The City Attorney was advised to meet with the attorney of the residents to propose this option plan. Motion by Heintz, second by Hentges to waive the reading of Ordinance # 926 there being ample copies available to the public. Ro]l Call: All ayes ORDINANCE NO. 926 BEING AN ORDINA~NCE AMES~DING ORDINANCE NO. 853, CITY CODE OF 1977, CO4"v-EYING CERTAIN REAL PROPERTY TO BRAD H. RETTKE AA~O ELIZABETH RETTKE The City Council of the City of Columbia Heights does ordain: Section 1: The City of Columbia Heights shall sell to Brad H. Rettke and Elizabeth Rettke, the City's interest in the real estate described as follows, to-wit: REGULAR MEETING August ll, 1980 page 19 The West 8.0 feet of Lot 12, Block 89, Columbia Heights Annex to Minneapolis, Anoka County, Minnesota, subject to easements of record Section 2: Section 3: Section 4: The Mayor and City Manager are herewith authorized to execute the documents necessary to effectuate the said sale. The purchase price of said real estate is ten dollars ($10.00) This Ordinance shall be in full force and effect from and after thirty (30) days after its passage. First reading: Second reading: Date of passage: 8-11-80 Offered by: Seconded by: Roll Call: Bruce G. Nawrocki, Mayor Jo-Anne Student, Council Secretary Resolution Designating Election Judges Motion by Norberg, second by Hentges to waive the reading of the resolution there being ample copies available to the public. Roll Call: All ayes RESOLUTION #8041 DESIGNATION ELECTION JUDGES t~IEREAS, the political parties have submitted prospective e]ection judge names, to wit the Independent Republican Party for House/Senate Districts 46 and 55 and the Democratic Party for a11 of District 55 and only Precinct slx for District 46, to the Anoka County Auditor, and WHEREAS, the County Auditor has forwarded said list to the City Clerk who has reviewed the llsts and contacted additional prospects to determine if they w111 be available to serve, NOW THEREFORE, Be it Hereby Resolved that the City Council of the City of Columbia Heights does approve the attached list of judges, by precinct, for the Primary Electlon September 9, 1980 and the General Election, November 4, 1980, with an hourly remuneration of $4.00 for a head judge and $3.25 for an electlon judge. 2O Passed this llth Day of August, 1980. Offered by: Norberg Seconded by: Hentges ~olI Call: A11 ayes Bruce~t~. Nawrocki, Mayor /~ecr-e~ary"'to the Council e. Resolution Adopting a Wage Compensation Program for Non-unTonized City Employees. Motion by Norberg, second by Hentge~ to waive the reading of the resolution there bein~ a~ple copies available to the public. Roll Call: All ayes Motion by Hentges, second by Norberg to table this resolution for further consideration until the next regular Council meeting or special meeting. Roll Call: All ayes f. Resolution Calling For Public Hearing on a Proposal to Undertake and Finance an Industr[al Development Project--Ruvelson and Associates, Inc. Motion by Heintz, second by Norberg to waive the reading of the resolution there being copies available to the public. Roll Call: All ayes RESOLUTION NO. 80-42 RESOLUTION CALLING FOR A PUBLIC HEARING ON A PROPOSAL TO UNDERTAKE AND FINANCE AN INDUSTRIAL DEVELOPMENT PROJECT WHEREAS, a representative of Ruvelson & Associates, Inc. has presented this City Council (the "Council") with information concerning a proposed project within the City of Columbia Heights (the "City"); and WHEREAS, a representative of Ruvelson & Associates, Inc. has requested that the City of Columbia Heights resotve to issue industrial development bonds or notes and has presented to the City a form of preliminary ordinance con- cerning such issuance with a request that such preliminary ordinance, Ordinance No. 927, be considered for adoption at the regular meeting of the Council on September 8, 1980; BE IT RESOLVED THAT, 1. The City will conduct a public hearing on the proposal to undertake and finance the industrial development project or projects described in the Notice of Public Hearing attached hereto as Exhibit A (the "Notice"); .REGULAR MEETING August 11, 1980 page 21 2~ The City Manager is hereby authorized to cause the Notice, or a notice in substantially the same form as the Notice, to be publlshed not more than th'irty (30) nor less than fifteen (15) days before the date fixed in the Notice as the date of the hearing, in the official newspaper and a newspaper of general circulation of the City of Columbia Heights. Offered by: Logacz Seconded by: Hentges Rol1 Call: All ayes Bruce-~G. Nawrocki, Mayor reta ry to the Cou~i~cil EXHIBIT A NOTICE OF PUBLIC HEARING ON A PROPOSED PROJECT AND THE ISSUANCE OF INDUSTRIAL DEVELOPMENT REVENUE ~ONDS UNDER THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT, MINNESOTA STATUTES, CHAPTER 474, AS AMENDED THE CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTICE IS HEREBY GIVEN that the governing body of the City of Columbia Heights, Minnesota (the "City"), will meet on September 8, 1980, at 8:00 p.m. at City offices in Columbia Heights, Minnesota, for the purpose of eondueting a public hearing on a proposal that the City issue its revenue bonds under the Municipal Industrial Development Aet, Minnesota Statutes, Chapter 474, as amended, in order to finance the cost of a project. The proposed project will consist of the acquisition of land and construction of a building for use as an office building to be owned by Ruvelson & Associates, Inc. for use in its business. The estimated total amount of the proposed bond issue is $1,000,000. The bonds shall be limited obligations of the City and the bonds and interest thereon shall be payable solely from the revenues pledged to the payment thereof, except that such bonds may be seeured by a mortgage and other encumbrance on the projeet. No holder of any such bond sl~ll ever have the right to compel any exercise of the taxing power of the City of Columbia Heights to pay the bonds, or the interest thereon, nor to enforce payment against any property of the City except the project. A draft copy of the proposed application to the Minnesota Commissioner of Securities for approval of the project, together with all attachments and exhibits thereto, is available for public inspection at the City offices. REGULAR MEETING August 11, 1980 page 22 All persons interested may appear and be heard at the time and place set forth above. [ Date of Publieatiop] BY ORDER OF THE CITY COUNCIL OF THE CITY OF COLUMBIA HEIGHTS go First Reading of Ordinance # 927 Motion by Heintz, second by Hentges that the reading of the ordinance be dispensed with there being ample copies available to the public. Roll Call: All ayes Ordinance No. 927 BEING AN ORDINANCE GIVING PRELIMINARY APPROVAL TO A PROJECT UNDER THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT, REFERRING THE PROPOSAL TO THE COMMISSIONER OF SECURITIES FOR APPROVAL, AND AUTHORIZING PREPARATION OF NECESSARY DOCUMENTS The City of Columbia Heights does ordain: 1. It is hereby found, determined and declared as follows: 1.1. The welfare of the State of Minnesota requires active promo- tion, attraction, encouragement and development of economically sound industry and commerce through governmental acts to prevent, so far as possible, emergence of blighted lands and areas of chronic unemployment, and it is the policy of the State of Minnesota to facilitate and encourage action by local government units to prevent the economic deterioration of such areas to the point where the process can be reversed only by total redevelopment through the use of local, state and federal funds derived from taxation, with the attendant necessity of relocating displaced persons and of duplicating public services in other areas. 1.2. Technological change has caused a shift to a significant degree in the area of opportunity for educated youth to processing, transporting, marketing, service and other industries, and unless existing and related industries are retained and new industries are developed to use the available resources of the City of Columbia Heights (the "City"), a large part of the existing investment of the community and of the state as a whole in educational and public service facilities will be lost, and the movement of talented, educated personnel of mature age to areas where .their services may be effectively used and compensated and the lessening attraction of persons and businesses from other areas for purposes of industry, commerce and tourism will deprive the City and the State of the economic and human resources needed as a base for providing governmental services and facil- ities for the remaining population. Regu.lar ~eet~ng Aug. ~ ~ 1.3. The increase in the amount and cost of governmental set,. requires the need for more intensive development and use of land to provio,. an adeguate tax base to finance these costs. 1.4. Ruvelson & Associates, Inc., or its designee (hereinafter the "Applicant"), has advised this City Council (the "Council") that it desires to construct a building and acquire and instaZl equipment therefor for use as an office buildin~ (hereinafter referred to as the "Project"). 1.5. The existence of the Project in the City ~ contribute to more intensive development and use of land to increase the t~x base of the City and overlapping taxing authorities and maintain and provide for an increase in opportunities for employment for residents of the City. 1.6. The City has been advised that conventional, commercial financing to pay the capital cost of the Project is available at such costs of borrowing that the economic feasibility of oPerating,the Project would be significantly reduced, but that with the aid of municipal financing, and its resulting low borrowing cost, the Project is economically more feasible. 1.7. This Council has been advised by representatives of the Appli- cant that on the basis of information submitted to them and their discus- sions with representatives of area financial institutions and potential buyers of tax-exempt bonds, industrial development revenue bonds of the City could be issued and sold upon favorable rates and terms to finance the Project. 1.8. The City is authorized by Minnesota Statutes, Chapter 474, to issue its revenue bonds to finance the cost, in whole or in part, of the acquisition, construction, reconstruction, improvement or extension of cap- ital projects consisting of properties used and useful in eormeetion with a revenue producing enterprise, such as that of the Applicant, and the issuance of such bonds by the City would be a substantial inducement to the Applicant to construct its facility in the City. 2. On the basis of information given the City to date, it appears that it would be in the best interest of the City to issue its industrial development revenue bonds under the provisions of Chapter 474 to finance the Project of the Applicant at a cost presently estimated not to exceed $1,000,000. 3. The Project above referred to is hereby given preliminary approval by the City and the issuance of bonds for such purpose and in such amount approved, subject to approval of the Project by the Commissioner of Securities and to the mutual 'agreement of this body, the Applicant and the initial purchasers of the bonds as to the details of the bond issue and provisions for their payment. In all events, it is understood, however, that the bonds of the City shall not constitute a charge, lien or encumbrance legal or equitable upon. any property of the City except the Project and each bond, when, as, and if issued, shall recite in substance that the bond, including interest thereon, is payable solely from the revenues received from the Project and property pledged to the payment thereof, and shall not constitute a debt of the City. 4. Miller & Schroeder Municipals, Inc. has advised the Council that it will purchase the bonds in a principal amount not to exceed approximately $1,000,000 under terms and conditions to be determined by the City, the Applicant and Miller & Sehroeder Municipals, Inc. 5. In accordance with Minnesota Statutes, Section 474.01, Subdivision 7a, the Mayor of the City is hereby authorized and directed to submit the proposal for the Project to the Commissioner of Securities for her approval of the Project. hereby authorized to provide the Commissioner with any preliminary infor- mation she may need for this purpose, and the City Attorney is authorized to initiate and a~sist in the preparation of such documents as may be appropriate to the Project, if it is approved by the Commissioner. 6. The law firm of Holmes & Graven, Chartered, is authorized to act as Bond Counse! and to assist in the preparation and review of necessary documents relating to the Project and bonds issued in connection therewith. 7. This ordinance shall be in full force and effect from and after thirty (30) days after its passage. Mayor First Reading: Second Reading: Offered by: Seconded by: RoLl Call: Date of Passage: 8-11-80 Secretary to the Council 6. Communications a. Resolution of the City Council of the Columbia Heights, Presenting the Opinion of the City Council on the Review of Fridley's Comprehensive Plan Motion by Norberg, second by Hentges to waive the reading of the resolution there being ample copies available to the public. Roll Call: All ayes RESOLUTION 80- 43 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COLUMBIA HEIGHTS, MN. PRESENTING THE OPINION OF THE CITY COUNCIL ON THE REVIE~I OF FRIDLEY'S COMPREHENSIVE PLAN. WHEREAS, the City of Fridley has prepared and comp)eted a Compre- hensive Plan pursuant to the Metropolitan Land Planning Act, and WHEREAS, the City of Fridley, pursuant to Minnesota statutes 473.858, Subdivision 2, has submitted their proposed Comprehensive Plan to the City of Columbia Heights for review and comment, and WHEREAS, the Planning and Zoning Commission has carefully reviewed the various elements of the Plan and recon~ends favorable considera- tion by the City Council, and Regular Meeting Aug. 11 page 25 WHEREAS, the City Council has reviewed the various elements of the Plan in regards to its scope and effect upon the City of Columbia Heights. NOW THEREFORE BE IT RESOLVED, the City Council of Columbia Heights finds no adverse effects are perceived to fall upon the City of Columbia Heights as the result of the City of Fridley implementing its proposed Comprehensive Plan. Passed this 11 day of aL, 2,,st ~ 1980. Offered by: Norberg Seconded by: Hentges Roll Call: All ayes crefary - Mayor b. Traffic Commission Recommendations 1.Silver Lake Cul-de-Sac Motion by Heintz, second by Hentges that "No Parking Anytime" signs be installed within the cul-de-sac area of Silver Lake Beach. Roll Call: Logacz, Heintz, Hentges, Nawrocki--aye Norberg--abstain 2. National League of Cities, Congress of Cities, Nov. 29-Dec. 3, Atlanta, Ga. Motion by Heintz, second by Logacz to authorize members of the Council and their expenses to attend the League of Cities meeting if their schedules would permit. Roll Call: Logacz, Heintz, Hentges, Nawrocki--aye Norberg--abstain 3.Potential Reduction in State Aid Payments This item was presented for general information. New and Old Business (cont.) a. Old Business 1. The Mayor informed the Council of a problem being experienceJ by the owner of the property adjacent to the Municipal Off-Sale Liquor Store. The Mayor had inquired of the staff if the City c~,'~ oet insurance coveraoe fnr any !iability ~ Fr~ resul~ Re~.ular Meeting Aug. ll page 26 from the patrons of the Municipal Liquor store. He was advised by the City Clerk that the City would be secondarily liable and any personal injury or property damage would be a subject of litigation with the owner or the lessee of the property. The Mayor al requested information on posting a sign on the property stating that it was not a public parking lot or City property. 2. City of Columbia Heights Comprehensive Plan Long-Term Extension Motion by Heintz, second by Logacz to authorize the City Manager and Mayor to execute a revised planning assistance grant contract with the Metropolitan Council which will provide for a time extension to July 1, 1981, for submission of the City's Comprehensive Plan. Roll Call: All ayes 3. Relocation of Storm Drain at 4437 4th St. Motion by Heintz, second by Logacz to authorize the City Attorney and City Manager to negotiate with the owners of the property for acqui,ring the necessary easement for the storm drain. Roll Call: All ayes b. New Business i.Para-Transit Provider, Contact Extension to February 28, 1981 Keith Masuda, Administrative Assistant, recommended the contract be extended to Feb. 28, 1981, after meeting with a representative of the State Department of Transportation and reviewing the City's para-transit program.operation. The Mayor was advised that the contract is still within budget. 2.Driveway Regrading at 1319 42½ Ave. N.E. The Public Works Director met with the owners of the property prior to this meeting and they requested that the driveway be regraded to eliminate the incline which presently exists. The opinions of the staff were that any regrading of this nature would not be beneficial. Motion by Norberg, second by Logacz to deny the request. Roll Call: Hei~tz, Hentges, Nawrocki--nay Logacz, Norberg--aye Motion fails Motion by Heintz, second by Hentges to authorize the correction in the driveway at 1319 42½ Ave. in accordance with the Engineer's drawing of April 23, 1980, as revised as of August 11, 1980 with the cost added on to the overall project. Councilman Norberg maintained this regrading would still make no difference in the appearance or the function of the driveway. Roll Call: Logacz, Heintz, Hentges, Nawrocki--aye Norberg--nay 3. Remodeling of Clerk of Courts Window in City Hall The City Manager recommended to the Council that alternative measures should be considered rather than the one proposed by Anoka County. He was advised to make his feelings and reservations on this project known to the proper parties in the County. 4. Approval of a Maintenance Agreement with the City of Minneapolis for 37th Avenue from Central Avenue to Stinson Blvd. Regular Meeting Aug. ll p~ge 27 Motion by Heintz, second by Norberg to authorize the Mayor and the City Manager to execute the maintenance agreement with the City of Minneapolis for 37th Ave.from Central Ave. to Stinson Blvd. Roll Call: All ayes Request to Authorize Final Payment on Project Regarding Miscellaneous Concrete Work. Motion by Norberg, second by Heintz to authorize the final payment in the amount of S1,631,57 to Halvorson Construction Co., for Columbia Heights Project # 80)2 entitled miscellaneous concrete construction. Roll Call: All ayes 6. Final Payment for Sullivan Lake Park Water Supply System. Motion by Logacz, second by Heintz to authorize the final payment in the amount of $22,853.29 to Ideal Enterprises,Inc. for work ,completed on Project # 7903 entitled Sullivan Lake Park Water Supply Systems. Roll Call: All ayes 7. Authorization to Receive Engineering Proposals Regarding Preparation of Plans, Specifications, and Receipt of Bids for the Relocation of 41st Avenue Motion by Hentges, second by Heintz to authorize the City Manager to receive engi- neering proposals regarding the preparation of plans, specifications, and receipt of bids for the relocation of 41st Avenue. Roll Call: All ayes 8. Approval of an Agreement With the City of Minneapolis Regarding the Reconstruction of 37th Avenue from Main St. to Central Avenue Councilman Heintz asked if this project will be done this year and was told it would not, with perhaps, the exception of the storm drains. The Public Works Director felt by the time all of the requirements for commencing this project were met it late in the fall to undertake the entire project. The total cost of the project will be $704,261.73, with the Columbia Heights share to be $ 365,968.36 and the Minneapolis share to be $338,293.37. Motion by Logacz, second by Heintz to authorize the Mayor and City Manager to execute the agreement with the City of Minneapolis regarding the reconstruction of 37th Ave. from Main St. to Central Avenue. Roll Call: All ayes 9. Budget Transfer Regarding Traffic Signs and Signals Motion by Heintz, second by Logacz to approve the following budget transfers: $1600.00 to Account No. 1120, contractual maintenance and repair; $2100.00 to Account No 1350, maintanance and construction materials; from the general fund-unallocated account. Roll Call: All ayes lO. Authorization to Seek Bids for Garbage and Rubbish Pickup Service Motion by Heintz, second by Logacz to authorize the City Manager to seek bids with an opening on Sept. 17, 1980 at 2 PM. Such bids to be presented to the Council at its regular meeting Sept. 22, 1980. Appointments to Boards and Commissions Motion by Norberg to table this matter until the next regular meeting. Motion dies for lack of a second. Motion by Hentges, second by Logacz to appoint Don Markow to the Planning and Zoning Commission to fill the unexpired term of Robert Nelson. Roll Ca!l: All ayes Regular Meeting Aug. ll page 28 Motion by Hentges, second by Heintz to appoint the following people to the Energy, Science and Technology Commission for a stated period of time: Lawrence Nawrocki, Stephen Karn, three year term David Kelso, Ken Koch, two year term Mark Ryan, Gayle Norberg, one year term Councilman Norberg felt these appointments should not be made until more time is given for people to be made aware that there are openings on this commission. Me's convinced that there are people with qualifications for this commission that would be interested in serving but do not know about it or have not yet taken the initiative to apply. Mayor Nawrocki offered a friendly amendment to the motion for the appointment of Trudy Rider to serve on this Commission for a period of one year. Roll Call: Logacz, Heintz, Hentges, Nawrocki--aye Norberg--nay 12. Letter from Local Planning and Urban Affairs for the State of Minnesota a. The Mayor advised the Council that the application made by the City for funding for the Sullivan Lake Project ranked high for consideration but the amount of available funding was not as high as first thought. The City was advised to make a final application. b. Councilman Hentges inquired of the Public Works Director information on the time sequence for the semaphores located at the intersection of 44th and University avenues. Councilman Hentges has received complaints that people riding motorcycles cannot trip the semaphores. The Public Works Director will check further. Reports City Manager's Report The City Manager spoke to three items for general information purposes. 1.Local 49, review of the City's position with regard to Local Addendum Issues. 2.Methane-powered demonstration car program. This program was scheduled for Aug. 13th. 3.Contract negotiations with Local 320 for Police Department Sergeants. 9. Licenses Motion by Heintz, second by Hentges that licenses be approved as listed upon proper payment of fees. 10. Payment of Bills Motion by Logacz, second by Heintz to authorize the payment of bills as listed out of their proper funds. Motion by Norberg, second by Heintz to withdraw bills # 36644 and # 36675 from the list of bills. These bills receive approval by resolution. Roll Call: All ayes Motion by Logacz, second by Heintz to waive the reading of the resolutions there being ample copies available to the public. Roll Call: All ayes RegUlar Meeting page 29 Auo 11 RESOLUTION 80-38 WHEREAS, Councilman Gayle R. Norberg has or may possibly have a financial interest in International Business Machine Corporation and the City wishes to purchase an IBM Typewriter, Model 895 I1, and, WHEREAS, the Council has determined, based on the report of the City Manager, that the purchase price is as low or lower than the price at which this item could be purchased elsewhere, the City Council of the City of Columbia Heights hereby resolves that the sum of $864.00 be paid out of proper fund upon the filing of an affidavit with the City Clerk in accordance with Minnesota Statute S.471.89, subdivision 3, by Councilman Norberg. Passed this 11 day of August1980 Offered by: Logacz Seconded by: Heintz Roll Call: All ayes Bruce G. Nawrocki, Mayor Jo-Anne Student, Council Secretary RESOLUTION 80-39 WHEREAS, Councilm~n Gayle R. Norberg has or may possibly have a financial interest in the 3 M Company and the City wishes to pay the 3M Company for service and labor WHEREAS, the Council has determined, based[ on the report of the City Manager, that the price is as low or lower than the price at which this item could be obtained elsewher'e, the City Council of Columbia Heights hereby resolves the sum of $44.00 be paid out of the proper fund upon the filing of an affidavit with the City Clerk In accordance with Minnesota Statute: S. 471.89, subdivision 3, by Councilman Norberg. R.egu-1 a r Meeting A~,gust 11 page 30 Passed this I1 day of August Offered by: Logacz Seconded by: Heintz Roll Call: All ayes 1980. Jo-Anne Student, Council Secretary RESOLUTION 80-40 Bruce G. Nawrocki, Mayor WHEREAS, Councilman Gayle R. Norberg has or ,~y possibly have a financial interest in International Business Machine Corporation and the City wishes to purchase an IBM Typewriter, Model 895 11, and, WHEREAS, the Council has determined, based on the report of the City Manager, that the purchase price is as l o~ or lower than the price at which this item could be purchased elsewhere, the City Council of the City of Co)umbia Heights hereby resolves that the sum of $864.00 be paid out of proper fund upon the filing of an affidavit with the City Clerk in accordance with Minnesota Statute S. 471.89, subdivision 3, by Councilman Norberg. Passed this 11 day of August 1980. Offered by: Logacz Seconded by: Heintz Roll Call: All ayes Bruce G. Nawrocki, Mayor Jo-Anne Student, Council Secretary -Regular Meeting Aug. Il i~a~e )l The Mayor asked the Council members to look at the Opinion Survey from the League of Minnesota Cities. He would like them to study it and answer it to be returned at the next regular Council meeting. Motion by Heintz, second by Hentges to adjourn the meeting. Adjournment: 3:05 A.M. -Ann~ Student, CounCil Secretary