HomeMy WebLinkAboutJun 25, 1980OFFICIAL PROCEEDINGS
SPECIAL MEETING OF THE MAYOR AND THE CITY COUNCIL
CITY OF COLUMBIA HEIGHTS, MINNESOTA
JUNE 25, 1980
The me~ting was called to order by Mayor Nawrocki at 8:13
Roll Call: Logacz, Heintz, Hentges, Nawrocki--present
No[berg--Absent
PURPOSE OF THE MEETING
1.ORDINANCES AND RESOLUTIONS
a. First reading of ordinances regarding the sale of general obligation
bonds for the redevelopment of the City's central business district.
Mayor Nawrocki explained to those in attendance some of the history
of the Downtown area. When it started to deteriorate the question
was frequently asked as to why someone didn't do something. The problems
were clearly visible and the businessmen and residents were concerned.
Tonight's meeting is the fruition of many years of work to turn
around the decay and develop the area for the benefit of all of the
residents of the City.
Nawrocki went on to explain that about one year ago the plan was near
completion and the work for redevelopment was all ready to begin. It
was halted when one of the developers withdrew from the proposal.
HRA spent the last year searching for a new developer and tonight's
meeting is the result of those efforts. Nawrocki explained that
the meeting the night before this one covered the details of the
project, Tonight's meeting will briefly cover some of the same
information and then go on to give specifics of the plan in summary
form and the ordinances for various bonding involved in funding.
The Mayor welcomed the people at the meeting, thanked them for coming
and encouraged them to ask any questions and make their comments at
the end of the presentations by the developers. He explained ordinances
normally take two readings, Considering the nature and importance
of the subject matter the Council has scheduled both of these readings
as public hearings. The next hearing is July 7, 1980 at 8:00 in
John Murzyn Hall.
Robert Bocwinski, City Manager, introduced the hearing's participants
in the order that they would appear.
1. Presentation of information by first developer--Watson Centers,Inc.
Watson Centers,Inc. proposes to construct the following:
A five-story, 80,000 square foot, office building to be located
on the east side of Central Avenue between Gould Avenue and 40th
Avenue. A 350 stall parking ramp will be located adjacent to this
building on the same site.
An 80,000 square foot commercial center to be located on the east
side of Central Avenue between 4Oth Avenue and 41st Avenue.
Len Donohue, representative of Watson Centers,Inc., said the
shopping center will be designed to meet everyday needs of the citizen:
a grocery store, a drug store and ancillary shops. The building will
face Central Avenue and will have access from 40th Avenue and 41st Avenue.
SPECIAL MEETING
JUNE 25, 1980
page 2
It, also, will be heavily landscaped particularly in the back
and there will be a buffer zone behind the center. The parking
lot will be large enough to accommodate 400 cars.
Time schedule for completion of the shopping cente~ section of the
Downtown Development project: financing should be completed
by ~eptember 1980; construction should begin November 1980 with
completion in the Fall of 1981.
Mr. Donohue explained the layout of the office building. It will
be located between Gould Avenue and 40th Avenue. The building is
to be five stories high with an attached parking ramp. The ramp
will accommodate 350-400 vehicles and there will be no charge. The
lower-level tenant is the Northeast State Bank who will also have
a drive-in facility. A law firm and a realtor have made committments
to be tenants. The second level or plaza level will be occupied
by a first-class restaurant of about 10,000 feet. This level will
use the outside plaza for seating when weather permits.lt will
have access from Gould Avenue and limited parking.
2.Presentation of information by second developer--P.J.GAUGHAN,INC.
P.J.Gaughan,lnc. proposes to construct the following:
A total of 216 housing units divided into two groups, 132
condominiums that would be for sale. These condominiums would
be built in two buildings and the price range would be from
$54,000 to $77,000. They would be built on the north and the south
sides of 41st Avenue. Eighty-four units will be designated for
apartment development and the monthly rent will be in the range
of $300.00 to $500.00. All of the housing units will be accommodated
with underground parking, elevators, inside trash collection and
elegant lobbies and social areas.
Mr. Jim Holmes, an attroney retained by the HRA, reviewed the major
elements of redevelopment contracts presented to the Council last
evening. He informed the Council that his firm would serve as
bond council if it decides to issue bonds for this project. Mr.
Holmes explained that tax increment financing is the method being
utilized to finance this project. He further explained that the
City Council insisted the developers give certain guarantees for
the financing so there would be no element of risk that could be
put back on the City. The negotiations with the developers have
been long and extensive.
It was explained that the major task of the City is to acquire the
land and prepare it for the developers. This could include demolition
of the existing facilities and relocation, if there are to be any
moved; moving of utilities and, in certain cases, fill in some
basements that remain. The retail portion of the development would
be built over 41st Avenue and necessitate re-routing this street.
This procedure wou]d require special funding that would be realized
from assessments imposed on the developers. Another public
improvement that would be included in this area is a parking ramp
that would be paid for by the City from a portion of the bond monies
and from a federal grant.
The developers must submit their final construction plans to the
City Council for its inspection as it has final veto power.
SPECIAL MEETING
JUNE 25, 1980
page 3
The timetable for the land preparation and construction to commence
is as follows: April 1, ]981 the HRA must deliver the land to the
developers; thirty days from that date construction must commence;
the developers have from twelve to thirty-six months to complete
construction. The commercial facility must be complete in eighteen
months, the housing facility must have one buildin~ completed in
twelve months. All of the others must follow on line and the entire
construction must be completed in three years.
There are a number of guarantees included in the agreement to
insure the bonds ~ill be paid by the development itself, rather
than by taxes. Some of these guarantees are: sufficient insurance
carried by the developer for any destruction; by Augustl,each
developer must present letters from financial institutions
stating that they have sufficient funds to proceed; the property
must remain with developers chosen by the City Council. In case
of default by the developers the HRA is able to take back the
property. October 1, 1980 is the deadline for all of the requirements
to have been met; the developers must have the financing available,
the City must have acquired all of the property and the letters
of credit are in. In the event of the absence of any one of these
requirements any of the parties involved may choose to terminate.
Roger Jensen, Executive Director of HRA, explained the estimated
project expenditures and revenues for the Downtown Development.
Persuant with statute the HRA must provide the finance plan. Jensen
presented the general obligation sale figures. He, also, gave the
figures for some of the work that will be done for land acquisition,
fixture removing, relocation, demolition and site improvement
such as the parking ramp, landscaping and utility work. Other topics
Roger Jensen spoke to were the monies for professional services fees
and financing costs.
Phil Chenoweth, the City's Fiscal Consultant, presented his analysis
of the financial feasibility of the project as it related to tax
increment financing. He told the audience that the City has
always had a good credit rating and now that the bond rates
are reasonable again at 7% the bonds will be sold.
Mr. Chenoweth suggests the bonds should mature by the year 2002.
He feels that the City has a very marketable project and a very
feasible project. The bonds should sell as the City of Columbia
Heights is a good, sound city.
Mr. Walter Hartman, of the technical advisory and research staff
of the League of Minnesota Cities has completed an indepth
examination of the proposed project as it relates to the tax
increment financing process. He felt the project was exceptionally
innovative and may be used as a model in Minnesota, as well as,
nationally. The budget, timing and financing were examined by
his firm and found that the project was highly feasible. He suggested
that Columbia Heights has a very competent staff.
3.Robert Bocwinski, City Manager, explained that since the time frame
of the project is critical he would give the schedule for the hearings
and considerations by the City Council. At the first public hearing
the Council was asked to consider the first reading of five ordinances
dealing with the bond issues.
SPECIAL MEETING
JUNE 25, 1980
page 4
July 2, 1980. The City will have to publish all ordinances and resolutions
in the official city newspaper and a second paper that has wide city
circulation.
July 7, 1980 at 8:00 in Murzyn Hall a public hearing ~or the second
reading of the ordinances on the general obligation bond, apartment
bond, ~nd a condominium bond. Also, the Council will be asked to adopt
a resolution calling for public bids for the general obligation bonds.
July 17, 1980 at 8:00 in the City Council Chambers a public hearing
for the second reading and adoption of an office bond ordinance and
a shopping center bond ordinance.
duly 23, 1980, on or about this date the City will publish notices
calling for bids on the general obligation bond.
August 6, 1980, effective date of the three ordinances; the general
obligation bond ordinance, the apartment bond ordinance and the
condominium bond ordinance.
August 11, 1980 at 7:00 . The City will open bids for the general
obligation bond. There will be a regularly scheduled City Council
meeting at 8:00.
August 16, 1980. The effective date of the office bond ordinance
and the shopping center ordinance.
Mr. Jim Holm explained to the audience the basic differences in the
types of bonds.
Some residents voiced concerns for a possible sewer system problem
and additional traffic congestion that could result from this project.
Nawrocki advised them a study is being done and the preliminary reports
confirm there probably would be no problem that could not be handled.
The Traffic Commission is studying the potential increase in traffic
and its recommendations will be incorporated in the proposal.
Additional questions dealt with possible projects being planned at
this time for the west side of Central Avenue. There are none presently
but, it was suggested by Nawrocki that development could be a likely
spin-of from this project.
One resident wondered why the people cannot vote on this project.
Nawrocki explained that the residents have always had the option
to veto any action of the Council and that action can be forced to
a vote by petition. He welcomed anyone to contact the City Attorney
at their convenience for the specifics for this action.
A citizen asked for the actual starting date of the project. Roger
Jensen said the contract with the developers cites April l, 1981,
but, if the land preparation and acquisition is completed earlier
construction can commence. It was noted the selling price of the
condominiums had changed since last year. Mr. Jensen advised that
there was a different developer now.
Maintenance problems of rental property was discussed. Roger Jensen
said the developers have the obligation to maintain the buildings.
Nawrocki suggested that there are potential maintenance problems with
every type of housing, whether it be rental or owner-occupied. He felt
that it should be considered that more maintenance codes will be coming
law as we see more of these types of housing coming into being.
SPECIAL MEETING
JUNE 25, 1980
page 5
Nawrocki cited that some of the positive results from this project
is a broader tax base, additional housing and an increase in job
opportunities for 300 to 400 people.
Motion_by Heintz, seconded by Hentges to waive the reading of Ordinance
#9-15 ~here being ample copies for the public and with the notations
and corrections noted and with the proposed amendments of the City
Attorney.
Roll Call: All ayes
Motion by Heintz, seconded by Hentges to waive the reading of Ordinance
#9-16 there being ample copies for the public and with the notations
and corrections noted and with the proposed amendments of the City
Attorney.
Roll Call:All ayes
Motion by Hentges, seconded by Heintz to waive the reading of Ordinance
#9-17 there being ample copies for the public and with the notations
ant corrections noted and with the proposed amendments of the City
Attorney.
Roll Call: All ayes
Motion by Hentges, seconded by Heintz to waive the reading of Ordinance
#9-18 there being ample copies for the public and with the notations
and corrections noted and with the proposed amendments of the City
Attorney.
Roll Call: All ayes
Motion by Heintz, seconded by Hentges to waive the reading of Ordinance
#9-19 there being ample copies for the public and with the notations
anc corrections noted and with the proposed amendments of the City
Attorney.
Roll Call: All ayes
Motion by Heintz, seconded by Hentges to waive the reading of the
resolution in reference to Ordinance #9-18, hereafter, referred to
as The Columbia Heights Office Associates resolution, there being ample
copies for the public.
Roll Call: All ayes
Motion by Heintz, seconded by Hentges to adopt the resolution calling
for a public hearing on a proposal to undertake and finance an
industrial development project (Columbia Heights Office Associates).
Roll Call: All ayes
Motion by Heintz, seconded by Hentges to waive the reading of the
resolution in reference to Ordinance #9-18 hereafter referred to
as the Columbia Heights Center resolution.
SPECIAL MEETING
JLINE 25, 1980
page 6
Roll Call: All ayes
Motion by Heintz, seconded by Hentges to adopt the resolution
calling for a public hearing on a proposal to undertake and finance
an industrial development project (Columbia Heights Center~.
Roll fall: All ayes
Ordinance No. 915
BEING AN ORDINANCE PROVIDING FOR PUBLIC SALE
OF $8,175,000 GENERAL OBLIGATION TAX INCREMENT
BONDS OF 1980
The Ci~-y of Columbia Heights does ordain:'
1. It is hereby found, determined and declared that this City should
issue $8,175,000 General Obligation Tax Increment Bonds of 1980 (the "Bonds")
pursuant to Minnesota Statutes S 462.585, to defray the public redevelopment cost
of Downtown C.B.D. Revitalization Project, a "redevelopment project" pursuant to
Minnesota Statutes S 462.411 et seq.
2. Ehlers and Associates, Inc., bond consultants to the City, has
presented to this Council a form of Official Notice of Bond Sale for the Bonds to
be sold and issued, and a form of abbreviated Notice of Bond Sale for publication,
which are attached hereto, and which are hereby approved. This Council shall
meet at the time and place specified in the form of the Official Notice of Bond
Sale hereinafter contained for the purpose of opening and considering sealed bids
for, and awarding the sale of said $8,175,000 General Obligation Bonds of 1980.
3. Each and all of the terms and provisions of the following form of
Official Notice of Bond Sale are hereby adopted as attached hereto as Exhibit A as
the terms and conditions of said bonds and of the sale thereof.
4. 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:
June 25, 1980
Secretary to the Council
EXHIBIT A
TERMS AND CONDITIONS FOR RECEIPT OF BIDS AND AWARD OF SALE
$8,175,000
GENE~RAL OBLIGATION TAX INCREMENT BONDS, SERIES 1980
- CITY OF COLUMBIA HEIGHTS, MINNESOTA
The City Council of the City of Columbia Heights, Minnesota, will meet at City
Hall in Columbia Heights, Minnesota, on the llth day of August, 1980, at 7:00 p.m.,
C;D.T., to receive, open and consider bids for and award the sale of $8,175,000
General Obligation Tax Increment Bonds, Series 1980 (the "Bonds"). No bids will be
opened and no bonds will be sold in the event that the Ordinance Providing for
Public Sale of $8,175,000 General Obligation Tax Increment Bonds of 1980, to be
adopted July 7, 1980 does not become effective on August 6, 1980.
PURPOSE
The Bonds will be issued for the purpose of providing funds for a redevelopment
project within the City, in accordance with the provisions of Minnesota Statutes,
Chapters 273,462 and 475.
.DATE~ TYPE~ DENOMINATION~ MATURITIES AND REDEMPTION
The Bonds will be dated September 1, 1980, will be issued as negotiable investment
securities, in bearer form, with attached interest coupons, will be in the denomi-
nation of $5,000 each unless designated otherwise by the purchaser within 48 hour~
of award of sale, and will mature on March 1 in the following years and amounts:
Year Amount Year Amount
1983 $ 10,000 1991 $425
1984 $ 10,000 1992 475
1985 --- 1993 525
1986 140,000 1994 550
1987 190,000 1995 650
1988 250,000 1996-2001 700
1989 300,000 2002 100
1990 350,000
000
000
000
,000
,000
,000
000
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 Price
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
PAYING AGENT
Principal and interest will be made payable at a suitable bank in the United States
recommended by the purchaser and approved by the City Council, and the City will
pay the customary charges for this service provided that such recommendation is
received within 48 hours after the sale, and the City Council will select the paying
agent if the re_commendation is not approved. .
INTEREST PAYMENT DATES, RATES
Interest will be payable semiannually on each March I and September I, eom-
mencing March 1, 1981. All bonds of the same maturity must bear interest at a
single uniform rate from date of issue to maturity, not exceeding 12% per annum,
expressed as an integral multiple of 5/100 of 1% per annum, represented by a single
set of coupons. No rate of any maturity may be lower th~the highest rate carried
by any of the preceding maturities.
DELIVERY
The City will furnish without cost to the purchaser and within 40 days after award
of sale, the printed and executed Bonds, the legal opinion referred to below, and
the usual no-litigation certificate. Delivery will be made without cost to the
purchaser at the place of the purchaser's choice. Payment of the Bonds must be
made in funds immediately available to the City on the date of delivery.
LEGAL OPINION
An opinion as to the validity of the Bonds and the tax exempt nature of the interest
thereon will be furnished by Holmes & Graven, Chartered, of Minneapolis,
Minnesota. The legal opinion will be printed on the Bonds at the request of the
purchaser. The legal opinion will state that the Bonds are valid and binding general
obligations of the City.
TYPE OF BID AND AWARD
Sealed bids for not less than $8,060,000 and accrued interest on the principal sum
of $8,175,000 must be mailed or delivered to the undersigned and must be received
prior to the time of said meeting. Bidders must bid for all or none of the Bonds.
Each bid must be unconditional and must be accompanied by a cashier's check or
bank draft in the amount of $163,500, payable to the City Clerk-Treasurer, to be
retained by the City as liquidated damages if the bid is accepted and the bidder
fails to comply therewith. The bid authorizing the lowest net interest cost,
determined by the addition of any discount to and the deduction of any premium
from the total interest on all Bonds from their date to their stated maturity, will
be deemed the most favorable. The net effective rate on all Bonds may not exceed
12% per annum. In the event that two or more bids state the lowest net interest
cost, the sale of the Bonds will be awarded by lot. The City reserves the right to
reject any and all bids, to waive informalities in any bid, and to adjourn the sale.
CUSIP NUMBERS
The City will assume no obligation for the assignment or printing of CUSIP
numbers on the Bonds or for the correctness of any numbers printed thereon, but
will permit such printing to be done at the expense of the purchaser, if the
purchaser waives any extension of the time of delivery caused thereby.
Information f~r bidders and bidding forms may be obtained from the undersi~ned or
.from Ehlers and Associates, Inc., 507 Marquette Avenue, Minneapolis, Minnesota
55402, telephone 612-339-8291, Financial Specialists.
BY ORDER OF THE CITY COUNCIL
NOTICE OF BOND SALE
$8,175,000 GENERAL OBLIGATION TAX INCREMENT, SERIES 1980
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTICE IS HEREBY GIVEN that the City. Council of the City of Columbia
Heights, Minnesota, will meet in Columbia Heights, Minnesota, on the llth day of
-August, 1980, at 7:00 p.m., C.D.T., to receive, open and consider sealed bids for
and award the saJe of $8,175,000 General Obligation Tax Increment Bonds, Series
1980 (the "Bonds"). In the event that the Ordinance Providing for Public Sale of
$8,175,000 General Obligation Tax Increment Bonds of 1980 adopted July 7, 1980
does not become effective on August 6, 1980, no bids will be opened and no bonds
will be sold. The Bonds will be issued for the purpose of providing funds for a
redevelopment project within the City. The Bonds will be issued as bearer bonds,
in the donomination of $5,000 each, will be dated as of September 1, 1980, and will
mature seriaJ_ly on March I in the following years and amounts:
Year Amount Year Amount
1983 $ 10,000 1991 $425,000
1984 $ 10,000 1992 475,000
1985 --- 1993 525,000
1986 140,000 1994 550,000
1987 190,000 1995 650,000
1988 250,000 1996-2001 700,000
1989 300,000 2002 100,000
1990 350,000
Interest will be payable semiannually on each March 1 and September 1, com-
mencing March 1, 1981. Bonds maturing in 1991 and later years shall be subject to
redemption and prepayment on March 1, 1990, and any interest payment date
thereafter at the following prices plus accrued interest:
Redemption Date
Redemption Price
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
An opinion as to the validity of the Bonds and the tax-exempt nature of the
interest thereon will be furnished by Holmes & Graven, Chartered, of Minneapolis,
Minnesota. Copies of a statement of Terms and Conditions for Receipt of Bids and
Award of Sale and additional information may be obtained from the undersigned or
from Ehlers and Associates, Inc., 507 Marquette Avenue, Minneapolis, Minnesota
55402, telephone: 612-339-8291, Financial Specialists.
Dated: , 1980.
BY ORDER OF THE CITY COUNCIL
Ordinance No. 916
BEING AN ORDINANCE GIVING PRELIMINARY APPROVAL TO A
PROJECT AND AUTHORIZING THE ISSUANCE OF-HOUSING
DEVELOPMENT REVENUE BONDS THEREFOR UNDER MIN-
NESOTA STATUTES, CHAPTER 462C, AND AUTHORIZING THE
PREPARATION OF NECESSARY DOCUMENTS
The City of Columbia Heights does ordain:
Preamble
WHEREAS, the Minnesota Legislature has enacted Laws 1980, Chapter 306
as codified in Minnesota Statutes, Chapter 462C (the Act), under which the City is
authorized to establish a housing plan (Housing Plan) and program (Housing
Program) for financing Housing Developments by the issuance of revenue bonds;
and
WHEREAS, in enacting the Act, the Legislature determined that provision,
maintenance and preservation of an adequate housing stock in conjunction with the
removal of blight within redevelopment projects is necessary to preservation of the
quality of life in a major metropolitan city and is therefore a public purpose; and
WHEREAS, Gaughan Land, Inc. (the Developer), has indicated an interest
and desire to acquire land in the Downtown C.B.D. Revitalization Project Area in
the City, and to construct and equip thereon $4 residential living units available for
rental and facilities related thereto (the Project), and the Project, as proposed, is
to be planned and completed as part of the Housing Program in accordance with
the Act; and
WHEREAS, the City has been advised by representatives of the Developer
that conventional, commercial financing to pay the capital cost of the Project has
not been obtained, is available only on a limited basis and is not available upon
terms and conditions which are affordable by the Developer so that the economic
feasibility of acquiring, constructing, equipping and operating the Project would be
significantly impaired; however, the Developer has also advised the City that the
use of municipal financing and the lower borrowing cost resulting therefrom will
materially increase the economic feasibility of the Project and will constitute a
substantial inducement to the Developer to undertake the Project; and
WHEREAS, the City has been advised by representatives of the Developer
that conventional, commercial financing is likely not to be available to the
potential purchasers of the residential living units available for rental on terms and
conditions affordable by them so that the economic feasibility of purchasing such
units would be significantly impaired, but that the use of municipal financing and
the lower borrowing cost resulting therefrom would make such units available on
terms and conditions affordable by them; and
WHEREAS, the Developer has proposed that the City issue and sell its
Housing Development Revenue Bonds (the Bonds) pursuant to the Act and other
applicable laws for the purpose of financing the Project, including certain
incidental expenses thereto, in the approximate principal amount of $4,000,000 and
loan the proceeds realized upon the sale of the Bonds to the Developer, pursuant to
a revenue agreement wherein the Developer will be obligated to acquire, construct
and equip the Project, to apply the proceeds of the Bonds solely to the payment of
costs thereof end to make payments under the revenue agreement-at the time and
in the amounts sufficient to provide for the prompt payment of principal of and
interest on th_e Bonds and all costs and expenses of the City incidental to the
issuance and sale of the Bonds; the proposal further provides that the Project will
-be mortgaged and a security interest therein granted and the City's right and
interest in the revenue agreement assigned for the benefit and security of the
holders from time to time of the Bonds; and
WHEREAS, the Project is located within the Downtown C.B.D. Revitali-
zation Project Area and is consistent with and will forward the public purposes of
the City in creating the Downtown C.B.D. Revitalization Project Area; and
WHEREAS, the full faith and credit of the City will not be pledged or
responsible for the Project or the payment of the principal of and interest on the
Bonds; and
WHEREAS, the undertaking of the Project has been considered by the
Housing and Redevelopment Authority in and for the City of Columbia Heights (the
Authority) and the Authority has transmitted and recommended the proposal for
financing the Project for review and consideration by the Council; and
WHEREAS, the Council has been advised that the Bonds in the approximate
principal amount of $4,000,000 may be sold on terms and conditions satisfactory to
the City and the Developer.
The City of Columbia Heights does ordain as follows:
1. The undertaking of the Project and the issuance of the Bonds
pursuant to the Act and other applicable laws in the approximate amount of
$4,000,000 to finance the costs thereof, all as referred to above, is hereby
authorized and approved by the City, subject to the agreement of the City, the
Developer and the Underwriter on the detaLled terms and conditions on which the
Project will be financed and the Bonds will be issued, sold and secured.
2.. The City Attorney and all City personnel, in consultation with the
Developer and the Underwriter and Holmes & Graven, as bond counsel, are
authorized to prepare the Housing Plan, the Housing Program, the revenue
agreement and other documents necessary and appropriate for the planning,
completion and financing of the Project and to submit them to the Council for
approval.
3. This ordinance shall be in full force and effect from and after thirty
(30) days after its passage.
First Reading:
Second Reading:
Offered by:
Seconded by:
Roll Call:
Date of Passage:
June 25, 1980
Mayor
Secretary to the Council
Ordinance No. 917
BEING AN ORDINANCE GIVING PRELIMINARY APPROVAL TO A
PROJECT AND AUTHORIZING THE ISSUANCE OF _HOUSING
DEVELOPMENT REVENUE BONDS THEREFOR UNDER MIN-
NESOT.4 STATUTES, CHAPTER 462C, AND AUTHORIZING THE
PREPARATION OF NECESSARY DOCUMI~NTS
The City of Columbia Heights does ordain:
Preamble
WHEREAS, the Minnesota Legislature has enacted Laws 1980, Chapter 306
as codified in Minnesota Statutes, Chapter 462C (the Act), under which the City is
authorized to establish a housing plan (Housing Plan) and program (Housing
Program) for financing Housing Developments by the issuance of revenue bonds;
and
WHEREAS, in enacting the Act, the Legislature determined that provision,
maintenance and preservation of an adequate housing stock in conjunction with the
removal of blight within redevelopment projects is necessary to preservation of the
quality of life in a major metropolitan city and is therefore a public purpose; and
WHEREAS, Gaughan Land, Inc. (the Developer), has indicated an interest
and desire to acquire land in the Downtown C.B.D. Revitalization Project Area in
the City, and to construct and equip thereon 132 living units under condominium
ownership and facilities related thereto (the Project), and the Project, as proposed,
is to be planned and completed as part of the Housing Program in accordance with
the Act; and
WHEREAS, the City has been advised by representatives of the Developer
that conventional, commercial financing to pay the capital cost of the Project has
not been obtained, is available only on a limited basis and is not available upon
terms and conditions which are affordable by the Developer so that the economic
feasibility of acquiring, constructing, equipping and operating the Project would be
significantly impaired; however, the Developer has also advised the City that the
use of municipal financing and the lower borrowing cost resulting therefrom will
materially increase the economic feasibility of the Project and will constitute a
substantial inducement to the Developer to undertake the Project; and
WHEREAS, the City has been advised by representatives of the Developer
that conventional, commercial financing is likely not to be available to the
potential purchasers of the condominium units on terms and conditions affordable
by them so that the economic feasibility of purchasing such units would be
si~o-nificantly impaired, but that the use of municipal financing and the lower
borrowing cost resulting therefrom would make such units available on terms and
conditions affordable by them; and
WHEREAS, the Developer has proposed that the City issue and sell its
Housing Development Revenue Bonds (the Bonds) pursuant to the Act and other
applicable laws for the purpose of financing the Project, including certain
incidental expenses thereto, in the approximate principal amount of $9,000,000 and
loan the proceeds realized upon the sale of the Bonds to the Developer, pursuant to
a revenue agreement wherein the Developer will be obligated to acquire, to
construct and equip the Project, to issue Housing Development Revenue Bonds (the
Bonds) in the approximate amount of $9,000,000 to provide mortgage financing for
individual condominium purche~ers, to apply the proceeds of the Bonds solely to the
payment of costs thereof and to make payments, under the revenue agreement at
the time and-in the amounts sufficient to provide for the prompt payment of
principal of and interest on the Bonds and all costs and expenses of the City
incidental to the issuance and sale of the Bonds; the proposal further provides that
the Project will be mortgaged and a security interest therein granted and the City's
right and interest in the revenue agreement assigned for the benefit and security of
the holders from time to time of the Bonds; and
WHEREAS, the Project is located within the Downtown C.B.D. Revitali-
zation Project Area and is consistent with and will forward the public purposes of
the City in creating the Do~mtown C.B.D. Revitalization Project Area; and
II~HEREAS, the full faith and credit of the City will not be pledged or
responsible for the Project or the payment of the principal of and interest on the
Bonds; and
WHEREAS, the undertaking of the Project has been considered by the
Housing and Redevelopment Authority in and for the City of Columbia Heights (the
Authority) and the Authority has transmitted and recommended the proposal for
financing the Project for review and consideration by the Council; and
WHEREAS, the Council has been advised that the Bonds may be sold on
terms and conditions satisfactory to the City and the Developer.
The City of Columbia Heights does ordain as follows:
1. The undertaking of the Project and the issuance of the Bonds
pursuant to the Act and other applicable laws in the approximate amount of
$9,000,000 to finance the costs thereof together with mortgage financing for
individual condominium purchasers in the approximate amount of $9,000,000, ail as
referred to above, is hereby authorized and approved by the' City, subject to the
agreement of the City, the Developer and the Underwriter on the detailed terms
and conditions on which the Project will be financed and the Bonds will be issued,
sold and secured.
2. The City Attorney and all City personnel, in consultation with the
Developer and the Underwriter and Holmes & Graven, as bond counsel, are
authorized to prepare the Housing Plan, the Housing Program, the revenue
agreement and other documents necessary and appropriate for the planning,
completion and financing of the Project and to submit them to the Council for
approval.
3. This ordinance shah be in full force and effect from and after thirty
(30) days after its passage.
M ay or
First Reading:
Second Reading:
Offered by:
Seconded by:
Roll Call:
Date of Passage:
June 25, 1980
Secretary to the Council
Ordinance No. 918
BEING AN ORDINANCE GIVING PRELIMINARY
APPROVAL TO A PROJECT UNDER THE MUNICIPAL
~I_~qDUSTRIAL 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 requi,~es 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 p.-ocessing, transporting,
marketing, service and other industries, and unless e)dsting 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 governmenta] services and facil-
ities for the remaining population.
1.3. The increase in the amount and cost of governmental services
requires the need for more intensive development and use of land to provide
an adequate tax base to finance these costs.
1.4. Columbia Heights Office Associates, a Minn~ota partnership or
its designee (hereinafter the "Applicant"), has advised thi~ City Council (the
"Council") that it desires to acquire land and construct a building or
buildings and acquire and install equipment therefor for use as an office
facility (hereinafter referred to as the "Project").
1.5. The existence of the Project in the City will contribute to more
intensive development and use of land to increase the tax 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 Prgject is available at such costs of
borrowi~tg that the economic feasibility of operating the Project would be
significantly reduced, but that with the aid of municipal financing, and its
resu]ting low borrowing cost, the Project are economically more feasible.
1.7. This Council has been advised by representatives of Dougherty,
Dawkins, Strand & Ekstrom Incorporated, as placement agent, that on the
basis of information submitted to them and their discussions with represen-
tatives 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 connection 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 $6,100,000.
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. Dougherty, Dawkins, Strand & Ekstrom Incorporated, being familiar
with the Project and the marketability of industrial development revenue bonds,
has advised the Council that in its opinion the bonds in the approximate principal
amount of $6,100,000 may be sold on terms and conditions satisfactory to the City
and the Developer.
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.
2
The Mayor, Clerk, Treasurer and other officers, employees and agents of the City
are 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 assist 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 Counsel hnd to assist in the preparation and review of necessary documents
relating to the Project and bonds issued in connection therewith.
7. This ordinance shah be in full force and effect from and after thirty
(30) days after its passage.
First Reading:
Second Reading:
Offered by:
Seconded by:
Date of Passage:
Mayor
Secretary to the Council
Ordinance No. 919
BEING AN ORDINANCE GIVING PRELIMINARY
APPROVAL TO A PROJECT UNDER THE MUNICIPAL
INDUSTRIAL DEVELOPMENT ACT~ REFERRING THE
I~ROPOSAL 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
pc~sible, 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 t'heir 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.
1.3. The increase in the amount and cost of governmental services
requires the need for more intensive development and use of land to provide
an adequate tax base to finance these costs.
1.4. Columbia Heights Center, a Minnesota partnership or its desig-
nee (hereinafter the "Applicant"), has advised this City Council (the
"Council") that it desires to acquire land and construct a building or
buildings and acquire and install equipment therefor for use as a shopping
center facility (hereinafter referred to as the "Project").
1.5. The existence of the Project in the City will contribute to more
intensive development and use of land to increase the tax 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 Pr.oject is available at such costs of
borrowfng 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 are economically more feasible.
1.7. This Council has been advised by representatives of Dougherty,
Dawkins, Strand & Ekstrom Incorporated, as placement agent, that on the
basis of information submitted to them and their discussions with represen-
tatives 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 ~innesota 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 connection 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 $5,635,000.
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, ~h~l 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. Dougherty, Dawkins, Strand & Ekstrom Ineorporated, being familiar
with the Project and the marketability of industrial development revenue bonds,
has advised the Council that in its opinion the bonds in the approximate principal
amount of $5,635,000 may be sold on terms and conditions satisfactory to the City
and the Developer.
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.
The Mayor, Clerk, Treasurer and other officers, employees and agents of the City
are 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 assist in the preparation of such documents as may be appropriate to
the Project, if it is approved by the Com missioner.
6. The law firm of Holmes & Graven, Chartered, is authorized to act as
Bond Counsel_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.
First Reading:
Second Reading:
Offered by:
Seconded by:
Date of Passage:
Mayor
Secretary to the Council
RESOLUTION NO. 80-
RESOLUTION CALLING FOR A PUBLIC
HEARING ON A PROPOSAL TO UNDERTAKE AND
FINANCE AN INDUSTRIAL DEVELOPMENT PROJECT
' '.~N£REAS, a reD.resenta_tive of Columbia Heiohts Office Assoc|ates Minnesota
partnership (the "Partnership"), has presented th~s City Council (the "Council") with
information eoneerning a proposed project within the City of Columbia Heights
(the "City"); and
WHEREAS, a representative of the Partnership requested that the City of
Columbia Heights resolve to issue industrial development bonds or notes and has
presented to the City a form of preliminary ordinance concerning such issuance
with a request that such preliminary ordinance, heretofore published as Ordinance
No. 918, be considered for adoption at the next regular meeting of the Council or
at a special meeting of the Council;
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") and incorporated
herein by reference;
2. The Clerk of the City is hereby authorized to cause the Notice, or a
notice in substantially the same form as the Notice, to be published not more than
thirty (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.
Passed this 25th day of June, 1980.
Mayo~
Offered by:
Seconded by:
RoLl Ca]]:
Secretary to the Council
RESOLUTION NO. 80-~4
RESOLUTION CALLING FOR A PUBLIC
HEARING ON A PROPOSAL TO UNDERTAKE AND
FINANCE AN INDUSTRIAL DEVELOPMENT PROJECT
- '.~/HEREAS, a rep.resenta_tive of Columbia Heights Off. Jce Associates Minnesota
partnership (the "Partnership"), 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 the Partnership requested that the City of
Columbia Heights resolve to issue industrial development bonds or notes and has
presented to the City a form of preliminary ordinance concerning such issuance
with a request that such preliminary ordinance, heretofore published as Ordinance
No. 918, be considered for adoption at the next regular meeting of the Council or
at a special meeting of the Council;
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") and incorporated
herein by reference;
2. The Clerk of the City is hereby authorized to cause the Notice, or a
notice in substantially the same form as the Notice, to be published not more than
thirty (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.
Passed this 25th day of June, 1980.
Mayor
Offered by: He[ntz
Seconded by: Hentges
Roll Calh All ayes
Secretary to the Council
EXHIBIT A
NOTICE OF PUBLIC HEARING ON A PROPOSED
PROJECT AND THE ISSUANCE OF INDUSTRIAL-
DEVELOPMENT REVENUE BONDS 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 July 17, 1980, at 8:00 p.m. at City
offices in Columbia Heights, Minnesota, for the purpose of conducting a public
hearing on a proposal that the City issue its revenue bonds under the Municipal
Industrial Development Act, 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 within the City and the construction thereon of a building or
buildings and the acquisition and installation of equipment therefor for use as an
office facility to be owned by Columbia Heights Office Associates, a Minnesota
partnership, for use in the partnership's business. The estimated total amount of
the proposed bond issue is $6,100,000. 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 secured by a
mortgage and other encumbrance on the project. No holder of any such bond shall
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.
All persons interested may appear and be heard at the time and place set
forth above.
[ Date of Publication]
BY ORDER OF THE CITY COUNCIL
OF THE CITY OF COLUMBIA HEIGHTS
RESOLUTION NO. 80= 35
RESOLUTION CALLING FOR A PUBLIC
HEARING ON A PROPOSAL TO UNDERTAKE AND
FINANCE AN INDUSTRIAL DEVELOPMENT PROJECT
WHEREAS, a representative of Columbia Heights Center, a Minnesota
partnership (the "Partnership"), 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 the Partnership requested that the City of
Columbia Heights resolve to issue industrial development bonds or notes and has
presented to the City a form of preliminary ordinance concerning such issuance
with a request that such preliminary ordinance, heretofore published as Ordinance
No. 919, be considered for adoption at the next regular meeting of the Council or
at a special meeting of the Council;
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") and incorporated
herein by reference;
2. The Clerk of the City is hereby authorized to cause the Notice, or a
notice in substantially the same form as the Notice, to be published not more than
thirty (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.
Passed this 25th day of June, 1980.
Mayor
Offered by: Heintz
Seconded by: Hentges
Roll Call: A11 ayes
Secretary to the Council
EXHIBIT A
NOTICE OF PUBLIC HEARING ON A PROPOSED
PROJECT AND THE ISSUANCE OF INDUSTRIAL-
DEVELOPMENT REVENUE BONDS UNDER THE
MUNICIPAL INDUSTRIAL DEYB.LOPMENT 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 July 17, 1980, at 8:00 p.m. at City
offices in Columbia Heights, Minnesota, for the purpose of conducting a public
hearing on a proposal that the City issue its revenue bonds under the Municipal
Industrial Development Act, 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 within the City and the construction thereon of a building or
buildings and the acquisition and installation of equipment therefor for use as an
office facility to be owned by Columbia Heights Office Associates, a Minnesota
partnership, for use in the partnership's business. The estimated total amount of
the proposed bond issue is $6,100,000. 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 secured by a
mortgage and other encumbrance on the project. No holder of any such bond shall
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.
All persons interested may appear and be heard at the time and place set
forth above.
[ Date of Publication]
BY ORDER OF THE CITY COUNCIL
OF THE CITY OF COLUMBIA HEIGHTS
SPECIAL MEETING
dUNE 25, 1980
page ~ ~
Motion by Heintz, seconded by Hentges to issue a building permit
to Bauer Construction,Inc. for Lot 77, Block 5, Reservoir Addition.
Roll Call: All ayes
Motion by Heintz, seconded by Hentges to adjourn.
Roll Call: All ayes
Adjournment: I1:05
Bruc~
unC~ Secretary ~-~