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HomeMy WebLinkAboutMar 9, 1981Official Proceedings Columbia Heights City Council Regular Meeting March 9, 1981 The meeting was called to order by Mayor Nawrockl at 8:05 pm. !. Roll Call Logacz, Heintz, Norberg, Hentges, Nawrocki--present 2. Invocation The Invocation was given by Jo-Anne Student, Council Secretary. 3. Minutes of Previous Meetings Motion by Heintz, second by Logacz to approve the minutes of the February 2nd Public Hearing-Comprehensive Plan; the February 9th Regular Meeting of the City Council; and the February loth Board of Trustees-Volunteer Firefighter Relief Association, as presented in writing and that the reading be dispensed with. Roll call: All ayes ~. Oral Petitions None Ordinances and Resolutions a. Second Reading of Ordinance No. 9~, being an ordinance amending Ordinance No. 853, City Code of 1977, pertaining to precious metal dealers. Motion by Norberg, second by Heintz to waive the reading of the ordinance there being ample copies available to the public. Roll call: All ayes Motion to amend by Norberg, second by Heintz to change the date in paragraph 5.611 (6) dealing with the expiration date of license to "December 31st of each year"; and the addition of paragraph (d) in section 5.611 which shall read; "This section shall not apply to persons engaging in coin collecting as a hobby who make less than twenty (20) purchases and sales'within a calendar year". Roll call on the amendment: All ayes This ordinance shall be forwarded to the City of Hilltop for their consideration and adoption of a similar ordinance. ORDINANCE NO. 944 BEING AN ORDINANCE AMENDING ORDINANCE NO. 853, CITY CODE OF 1977, PERTAINING TO PRECIOUS METAL DEALERS The City Council of the City of Columbia Heights does ordain: Section 1: Section 5.611 of Ordinance No. 853 of the City Code of 1977, passed June 21, 1977, shall hereafter read as follows, to-wit: SECTION 11 - PRECIOUS METAL DEALERS 5.611 (1) (a) No person or organization, except a bona fide non-profit coin club, shall engage in or conduct a business dealing in precious metals without a license issued pursuant to the provisions of this section. (b) This section shall not relieve any person or organization dealing in items other than precious metals at the same or a different loca- tion, from the requirement of obtaining other licenses required by this Code. (c) This section shall not apply to the purchase of secondhand items con- raining precious metal for resale in unaltered form to the seneral public at retail, as an_incidental part of a regular business. Regular Council Meeting March 9, 1981 page 2 (d) This section shall not apply to persons engaging. in coin collecting as a hobby who make less than twenty (20) purchases and sales within a calendar year. 5.611 (2) Definitions. For purposes of this section, the following words shall- have the meanings ascribed to them: (a) "Precious Metal Dealer" shall mean any person, co-partnership or cor- poration, either as principal or agent, who engages in the business of buying or selling secondhand items containing precious metals, in- cluding but not limited to Jewelry, watches, coins, eating utensils, candlesticks, decorative objects and ingots. (b) "Precious Metal" shall mean gold, silver and platinum. 5.611 (3) Application. (a) Every person or organization desiring a license to deal in precious metals shall apply to the City Council for a license on an applica- tion form provided by the City Clerk. The application shall contain all information required by the City Clerk including: (i) Name, place and date of birth and street residence of the applicant. (ii) The business address and the name and address of the owner of the premises. (iii) A statement whether, within the preceding ten years the ap- plicant has been convicted of any crime, petty misdemeanor or municipal ordinance relating to receiving stolen goods, theft, burglary, robbery, damage or trespass to property or operation of a business; the nature and date of the offense and the penalty assessed. (iv) A statement whether the applicant is a natural person, cor- poration or partnership. [aa] If the applicant is a corporation, the state of corporation and the names and addresses of all offi- cers and directors; [bb] If the applicant is a partnership, the names and ad- dresses of all partners; (v) The name of the manager or proprietor of the business. (b) Execution of Application - If the applicant is a natural person, the application shall be signed and sworn to by the person; if a corporation, by an agent authorized to sign; if a partnership, by a partner. (c) The Chief of Police or his designee shall investigate into the truth- fulness of the statements set forth in the application and shall en- dorse his findings thereon. The applicant shall furnish to the Chief of Police such evidence as he may reasonably require in support of the statements set forth in the application. Regular Council Meeting March 9, 1981 page 3 (d) False Statements in Application - No person shall make any material false statement in any application. In addition to other penalties, the licensee's license may be revoked by the City Council for a vio- lation of this section. 5.611 (4) Bond Required. Prior to the issuance of a license under this section, the applicant shall file a five thousand dollar ($5,000.00) bond with the City Clerk. Said bond shall be conditioned that the principal named will observe and comply with all laws and the provisions of this Code re- lating to dealers in precious metals, and will conduct business in con- formity thereto, and that the principal will account for and deliver to any person legally entitled any goods which may have come into the princi- pal's hand through the principal's business as a dealer in precious metal items, or in lieu thereof, will pay the reasonable value in money to the person. 5.611 (5) License Fee. The annual license fee for a precious metal dealer shall be One Hundred Dollars ($ 100.00 ). In addition to the fee specified above, an additional One Hundred Dollars ($ 100.00 ) fee shall be paid by an applicant: (a) Upon initial application for the license specified in this section, and (b) Upon application for the license specified in this section after failing to renew the license within one (1) year of the expiration date of the previously held license. The One Hundred Dollars ($100.00 ) fee shall not be refunded whether or not the license sought is granted. The amount of the license fee may hereafter be amended by resolution of the Council. 5.611 (6) Expiration of License. All licenses issued under this section shall ex- pire on December 31 of each year 5.611 (7) ~usiness at only one place. A license under this section shall authorize the licensee to carry on its business only at the permanent place of busi- ness designated in the license. The licensee shall either own the build- ~ng in which the business is conducted or have a lease on the business premises which extends for more than six (6) months. No license may be transferred to a different location or a different person. No licensee or agent thereof shall store any items containing precious metal at any location other than the address listed on the license. 5.611 (8) Records Required. Every precious metal dealer shall, at the time of pur- chase or consignment of a good, immediately record clearly in ink, in the English language in a book, an accurate account containing the following information: (a) A complete description of the item, including but not limited to: (i) type and size of item; (ii) kind and quality of metal; (iii) any engravings or distinguishing characteristics; Regular Council Meeting March 9, 1981 page 4 (iv) any gems attached; (v) date, mint, and condition of all coins (b) Purchase or consignment price; (c) Time and date of receipt; (d) Name, residence address, and driver's license number (or equivalent identification where a driver's license is not available) of the person selling or consigning the good. The book as well as the goods purchased or consigned shall at all rea- sonable times be open to inspection of the Mayor or any member of the Police Department. Entries in the book shall be retained for at least three (3) years. 5.611 (9) Receipt to Seller. Each precious metal dealer shall provide a receipt to the seller or consignor of any item which shall include: (a) The name, address and phone number of said precious metal dealer; (b) The date; (c) (d) A description of the item purchased as provided in Section 5.611(8)(a) herein; The purchase price; (e) The signature of the person Purchasing or receiving the item. A'copy of each receipt shall be kept on file at the place of business designated in the dealer's license. Each receipt shall be open to in- spection in the same manner as the records required by Section 5.611(7). 5.611(10) Payment by check only. Payment to the seller or consignor shall be by check only, made payable to a named payee who is the actual intended seller. 5,611(11) Photographs required. Every licensee shall maintain photographic equip- ment at its place of business capable of taking high quality color photo- graphs of both the individual selling or consigning items and the items sold or consigned. The photographic equipment maintained shall be of a type and quality approved by the City Clerk. When a licensee, or an agent or employee thereof, receives any precious metal item except coins, he or she shall photograph the individual selling or consigning such item and each item received. The photographs required by this section shall be maintained along with the other records required by this section in such a manner that they can be readily matched and correlated with all other records of the transaction to which they relate. Such photographs shall be available to the police department upon request. 5.611(12) Reports to Police. Every precious metal dealer shall make out and deliver to the Police Department every day before noon, upon a form approved by the Police Department, a legible description of the goods purchased dur- ing the preceding day, together with the time purchased and the name and address of the person from whom the goods were purchased. The des- cription of the goods shall include: Regular Council Meeting March 9, 1981 page 5 (a) A complete description of the item, including but not limited to: (i) type and size of item; (ii) kind and quality of metal; (iii) any engravings or distinguishing characteristics; (iv) any gems attached; (v) date, mint, and condition of all coins (b) Purchase or consignment price; (c) Time and date of receipt No person shall be required to furnish reports of bulk sales from mer- chants, manufacturers or wholesale dealers of precious metal or of goods purchased at open sale from bankrupt stock. Bulk sales must be accom- panied by a bill of sale or other evidence of purchase which must be shown to any member of the Sheriff or Police Department upon demand. Every licensee under this section shall have the duty to report to the Police Department any article delivered or transferred to his possession, if the licensee or his agent has reason to believe that the article was delivered to him from a person other than the rightful owner or an agent of the owner. No secondhand precious metal item purchased or received by any precious metal dealer shall be altered, sold, divested of possession, or disposed of in any way, for a period of thirty (30) days next after the delivery to the Police Department of the copy and statement relating thereto as re- quired in this Section 5.611(12). 5.611(13) Police Order to Hold Property. Whenever the Chief of Police or his desig- nee, notifies a dealer not to sell an item, the item shall not be sold, altered or removed from the licensed premises until authorized to be re- leased by the Chief of Police or his designee so requiring the item to be held. 5.611(14) Prohibited Acts. (a) No person under eighteen (18) years of age shall sell or consign or attempt to sell or consign any item to any dealer in precious metals. No dealer in precious metals, nor any agent or employee thereof, shall purchase or receive on deposit any item from any per- son under eighteen (18) years of age. (b) No dealer in precious metals, nor any agent or employee thereof, shall purchase or receive on deposit any item from a person of un- sound mind or an intoxicated person. (c) No dealer in precious metals, nor any agent or employee thereof, shall purchase or receive on deposit any items unless the seller pre- sents identification in the form of a driver's license, pictured identification, or medicard. Regular Council Meeting March 9, 1981 ppge 6 5.611(15) Denial~ Suspension or Revocation. Any license under this section may be denied, suspended or revoked for any of the following reasons: (a) The use or proposed use is in conflict with the Columbia Heights Zoning Code; (b) The use or proposed use is in conflict with any health, building, building maintenance or other provision of this Code or state law; (c) Violation of any provision of this section; (d) Fraud, misrepresentation or bribery in securing a license; (e) Fraud, misrepresentation or false statements made in the course of the applicant's business; Section 2: (f) Conviction of the applicant, any partner or shareholder of the appli- cant, or any employee of the applicant within the preceding five (5) years, of any crime, petty misdemeanor or municipal ordinance relat- ing to theft, receiving stolen goods, burglary, robbery, damage or trespass to property or the operation of a business. 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: February 23, 1981 March 9, 1981 March 9, 1981 Offered by: Norberg Seconded by: Heintz Roll call: AIl ayes Bruce G. Nawrocki, Mayor  -Anne~ Student, S~dretary to the Council b. Second Reading of Ordinance No.943 being an ordinance amending Ordinance No. 853, City Code of 1977, pertaining to the authority and duties of the Traffic Co~mission. The City Attorney had expressed some concern with the items concerning traf- fic visibility and granting of variances and felt this part of the ordinance should be given more consideration by the Traffic Commission. Councilman Hentges stated that the Traffic Commission makes recommendations for variances, the Council grants the variances. Councilman Heintz felt the City Attorney should attend the Traffic Commission meeting when this matter Is discussed further. Motion by Heintz, second by Norberg to refer this ordinance back to the Traffic Commission for further review. Roll call: Logacz, Heintz, Norberg, Nawrocki-- aye Hentges--nay Regular Council Meeting March 9, 1981 page 7 c. First Reading of Ordinance No.gq7 being an ordinance amending Ordinance No. 853, City Code of 1977, pertaining to traffic visibility. Motion by Heintz, second by Logacz to waive the reading of the ordinance there being ample copies available to the public. Roll call: All ayes This ordinance deals with street and alley intersection visibility. The City At- torney had the same concerns with this ordinance as with the previous ordinance, Ordinance No.943. Motion by Heintz, second by Norberg to refer this ordinance back to the Traffic Com- mission for additional comment and review. Roll call: All ayes d. Resolution 81-14, being a resolution of the City Council of the City of Columbia Heights, Minnesota authorizing the issuance, sale and delivery of the $775,000 com- mercial development revenue note (Ruvelson & Associates,Inc. Project), series 1981 ("Note"), which note and the interest and any premium thereon shall be payable solely from the revenues derived from the loan agreement; approving the form of a mortgage, security agreement, and fixture financing statement; approving the form of and authorizing the execution and delivery of the note; and providing for the securities, rights and remedies of the holder of said note. Motion by Heintz, second by Norberg to waive the reading of the resolution there being ample copies available to the public. Roll call: All ayes This is a final resolution for the sale of Industrial Development Revenue Bonds regarding Ruvelson & Associates Development. Councilman Norberg felt this develop- ment had merit because of the manner in which it was undertaken. RESOLUTION N0.81 - 1 & RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COLUMBIA HEIGHTS, MINNESOTA ("CITY") AUTHORIZING THE ISSUA.NCE, SALE AND DELIVERY OF THE $775,000 COMMERCIAL DEVELOPMENT REVENUE NOTE (RUVELSON & ASSOCIATES, INC. PROJECT), SERIES 1981 ("NOTE"), WHICH NOTE AND THE INTEREST AND ANY PREMIUM THEREON SHALL BE PAYABLE SOLELY FROM THE REVENUES DERIVED FROM THE LOAN AGREEMENT; APPROVING THE FORM OF AND AUTHORIZING THE EXECUTION AND DELIVERY OF A CONSTRUCTION LOAN AGREEMENT, A LOAN AGREEMENT AND AN ASSIGNMENT OF LOAN AGREEMENT; APPROVING THE FORM OF A MORTGAGE, SECURITY AGREEMENT, AND FIXTURE FINANCING STATEMENT; APPROVING THE FORM OF AND AUTHORIZING THE EXECUTION AND DELIVERY OF THE NOTE; AND PROVIDING FOR THE SECURITIES, RIGHTS AND REMEDIES OF THE HOLDER OF SAID NOTE WHEREAS, the purpose of the Minnesota Municipal Industrial Development Act, Minnesota Statutes, Chapter 474, as amended (the "Act"), as found and determined by the Legislature of the State of Minnesota, is to promote the welfare of the State of Minnesota by the active attraction, encouragement and develop- ment of economically sound industry and commerce to prevent so far as possible the emergence of blighted and marginal lands and areas of chronic unemployment, and for this purpose the State of Minnesota has encouraged action by local governmental units; and Regular Council Meeting March 9, 1981 page 8 WHEREAS, factors necessitating the active promotion and development of economically sound industry and commerce are the increasing concentration of population in urban and metropolitan areas, the rapidly rising increase in the amount and cost of governmental services required to meet the needs of the increased population, and the need for development and use of land which will provide an adequate tax base to finance these increased eosLs; and WHEREAS, the City of Columbia Heights, Minnesota (the "City"), desires to expand the business and employment opportunities, and the available tax base of the City and to promote the redevelopment of property within the City; and WHEREAS, the City is authorized by the Act to enter into a revenue agreement with any person, firm, or public or private corporation or federal or state governmental subdivision or agency in such manner that payments required thereby to be made by the contracting party shall be fixed, and revised from time to time as necessary, so as to produce income and revenue sufficient to provide for the prompt payment of principal of and interest on all bonds issued under the Act when due, and the revenue agreement shall also provide that the contracting party shall be required to pay all expenses of the operation and maintenance of the project including, but without limitation, adequate insurance thereon and insurance against all liability for injury to persons or property arising from the operation thereof, and all taxes and special assessments levied upon or with respect to the project and payable during the term of the revenue agreement; and WHEREAS, the Act further authorizes the City to issue revenue bonds, in anticipation of the collection of revenues of a project, to finance, in whole or in part, the cost of acquisition, construction, reconstruction, improvement, better- ment, or extension of such project and to provide temporary loans in advance of the issuance of said bonds; and WHERE'AS, the City has received from Ruvelson & Associates, Ina. (the ',Developer"), ~ proposal that the City finance a project for purposes consistent with the Act, said project to consist of the construction of an office budding (the ~Project") in the City; and WHEREAS, by Ordinance No. 927, adopted on September 8, 1980, the City determined that, on the basis of information provided to it by the Developer and others, the effect of the Project, if undertaken, would be to encourage the development of economically sound commerce in the City, increase the assessed value of property within the City, increase current employment opportunities for residents of the City and surrounding areas, and to facilitate the redevelopment of property within the City, all to the benefit of the residents and taxpayers of the City; and WHEREAS, by Ordinance No. 927, adopted on September 8, 1980, the City approved the proposal of the Developer that the City undertake to provide financing for the Project and gave preliminary approval of the Project, including the issuance, sale and delivery of bonds, subject to final approval by the City; and WHEREAS, the City proposes to undertake said Project under the Act and to provide permanent financing of the cost of the Project within 24 months of the date of the Note of the City (as hereinafter defined) by the issuance of its bonds under a resolution to be adopted at that time; and WHEREAS, the City proposes to provide temporary financing of the cost of said Project by the issuance of the Note under this resolution; and Regular Council Meeting March 9, 1981 page 9 WHEREAS, the Note issued under this resolution will be secured by a mortgage and lien on said Project and a pledge and assignment of the Loan Agreement, as hereinafter defined, and of the revenues derived by the City from the Loan Agreement, and said Note and the interest on said Note shall be payable solely from the revenue pledged therefor and the Note shall not constitute a debt of the City within the meaning of any constitutional, charter, or statutory limitation nor shall constitute nor give rise to a pecuniary liability of the City or a charge against its general credit or taxing powers and shall not constitute a charge, lien, or encumbrance, legal or equitable, upon any property of the City other than its interest in the revenues derived from the Loan Agreement; and NOW, THEREFORE, BE IT RESOLVED BY THE CITY: 1. That the City Council of the City finds, determines and declares that the construction of the Project within the City will expand the business and employment opportunities within the City, will expand the tax base of the City, will promote the redevelopment of property within the City, and will generally aid and assist the City, the School District in which the City is located, and the County of Anoka. 2. That for the purpose of financing the acquisition, construction, and installation of the Project, there is hereby authorized the issuance, sale and delivery of revenue bonds in the principal amount of $775,000. The City shall employ its best efforts to issue its revenue bonds in order to provide permanent financing for the Project, but the City is not presently legally obligated to issue such revenue bonds. Such revenue bonds shall be issued on or before the date that ts two years ~rom the date of the Note. To provide funds immediately required for the purpose of financing the acquisition, construction, and installation of the Project, there is hereby authorized the issuance, sale and delivery of the $775,000 Commercia] Development Revenue Note (Ruvelson & Associates, Inc. Project), Series 1981 (the "Note"). The Note shall bear interest at the rates, shall be numbered, shall be dated, shall mature, shall be subject to redemption prior to maturity, shall be in such form, and shall have such other details and provisions as are prescribed in Exhibit A attached hereto. 3. The Note shall be a special obligation of the City the proceeds of which shall be disbursed pursuant to the Construction Loan Agreement, dated as of the date of the Note and executed by the City, American National Bank and Trust Company (the "Lender"), and the Developer (the "Construction Loan Agreement~). The principal, premium, if any, and interest on the Note shall be payable solely from the revenues derived from the Loan Agreement, dated as of the date of the Note and executed by the City and the Developer (the "Loan Agreement"). The Mayor and City Manager of the City are hereby authorized and directed to execute and deliver the Note. 4. That the Construction Loan Agreement, the Loan Agreement, and the Assignment of Loan Agreement, dated as of the date of the Note and executed by the City (the "Assignment of Loan Agreement"), all in the form now on file with the City Clerk of the City are hereby approved. The Mayor and City Manager of the Cit~ are hereby authorized and directed to execute and deliver the Construc- tion Lo~n Agreement, Loan Agreement and Assignment of Loan Agreement. 5. That the Mortgage, Security Agreement, and Fixture Financing Statement, dated as of the date of the Note and executed by the Developer, and the Assignment of Leases and Rents, dated as of the Date of the Note and execute(: by the Developer, are hereby approved in the form now on file with the City Clerk of the City. Regular Council March 9, 1981 page I0 Meeting 6. That the Persona_] Guaranty, dated as of the date of the Note and executed by James J. Ruvelson is hereby approved in the form now on fLte with the City Clerk of the City. ?. That the Refunding Agreement, dated on or about the date of the Note and executed by the Developer, the Lender, and ITT Industrial Credit Company, is hereby approved in the form now on file with the City Clerk of the City. 8. That upon approval by the Mayor, and concurrence by the City Attorney, amendments may be made to the aforementioned documents to the extent not inconsistent with this resolution. 'Such approval and concurrence shall be evidenced by the execution of the aforementioned documents by the Mayor and the delivery of the opinion of the City Attorney. 9. That the Mayor, City Manager and Clerk of the City are hereby authorized to execute and deliver, on behalf of the City, such other documents as are necessary or appropriate in connection with the issuance, sale, and delivery of the Note. 10. That all covenants, stipulations, obligations and agreements of the City eontaine}l in this resolution and the aforementioned documents shall be deemed to be {he covenants, stipulations, obligations and agreements of the City to the full extent authorized or permitted by law, and all such covenants, stipulations, obligations and agreements shall be binding upon the City. Except as otherwise provided in this resolution, all rights, powers and privileges conferred and duties and liabilities imposed upon the City by the provisions of this resolution or of the aforementioned documents shall be exercised or performed by the City or by such members of the City, or such officers, board, body or agency thereof as may be required by law to exercise such powers and to perform such duties. No covenant, stipulation, obligation or agreement herein contained or contained in the aforementioned documents shall J>e deemed to be a covenant, stipulation, obligation or agreement of any member of the City Council of the City, or any officer, agent or employee of the City in that person's individual capacity, and neither the City Council of the City nor any officer executing the Note shall be liable personally on the Note or be subject to any personal liability or accountability by reason of the issuance thereof. 11. That except as herein otherwise expressly provided, nothing in this resolution or in the aforementioned documents expressed or implied, is intended or shall be construed to confer upon any person or firm or corporation, other than the City or any holder of the Note issued under the provisions of this resolution, any right, remedy or claim, legal or equitable, under and by reason of this resolution or any provision hereof, this resolution, the aforementioned documents and all of their provisions being intended to be and being for the sole and exclusive benefit of the City and any holder from time to time of the Note issued under the provisions of this resolution. 12. That in case any one or more of the provisions of this resolution, or of the aforementioned documents, or of the Note issued hereunder shall for any reason be held to be illegal or invalid, such illegality or invalidity shall not affect any other provision of this resolution, or of the aforementioned documents, or of the Note, but this resolution, the aforementioned documents and the Note shall be construed and endorsed as if such illegal or invalid provision had not been contained therein. I--'O Regular Council Meeting March 9, 1981 page 11 13. That the Note shaJ.l contain a recital that it is issued pursuant to the Act, and such recital shall be conclusive evidence of the validity of the Note and the regularity of the issuance thereof, and that all acts, conditions and things required by the laws of the State of Minnesota relating to the adoption of this resolution, to the issuance of the Note and to the execution of the aforementioned documents to happen, exist and be performed precedent to and in the enactment of this resolution, and precedent to issuance of the Note and precedent to the execution of the aforementioned documents have happened, exist and have been oerformed as so required by law. 14. That the officers of the City, attorneys, engineers and other agents or employees of the City are hereby authorized to do all acts and things required of them by or in connection with this resolution, the aforementioned documents, and the Note for the full, punctual and complete performance of all the terms, covenants and agreements contained in the Note, the aforementioned documents and this resolution. 15. That this resolution shall be in full force and effect from and after its passage. Offered by: Heintz Seconded by: Hentges Roll Call: All ayes Bruce G. Nawrocki, Mayor Jo-An'ne Student, Co~O~nc il Secretary EXHIBIT A UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF ANOKA CITY OF COLUMBIA HEIGHTS Commercial Development Revenue Note (Ruveison & Associates, 1ne. Project) Series 1981 R-1 $775,000 1. The City of Columbia Heights, Minnesota (the "City"), a home rule charter city of the State of Minnesota, hereby promises to pay to the order of American National Bank and Trust Company, a national banking association with it~ rn~in h~nkin~ house located in Saint Paul. Minnesota, its sueeessors and assigns, Regular Council Meeting March 9, 1981 page ] 2 (the "Lender"),-at its principal office or 'such other place as the Lender may designate in writing, the principal sum of seven hundred seventy-five thousand dollars ($775,000), or so much thereof which may be advanced to or for the benefit of the City pursuant to that certain construction loan agreement dated March 11, 1981, by and among the City, Ruvelson & Associates, Inc., a Minnesota corporation ("Developer") and the Lender ("Construction Loan Agreement"), solely from the revenues derived by the City from the Loan Agreement as hereinafter defined, and to pay, solely from such revenues, interest on said unpaid principal sum, from the date on which this Note is delivered to the Lender (the "Closing Date") until the City's obligation with respect to the payment of such principal amount shall be discharged, at a rate equal to the rate of interest as hereinafter specified. 2. The principal of and interest on this Commercial Development Revenue Note (Ruvelson & Associates, Inc. Project), Series 1981 (the "Note") are payable as follows: a. Commencing on the first day of the month following the month in which the Closing Date occurs, and on the first day of each month thereafter until the earlier of (i) twenty-four (24) months after the Closing Date, or (ii) the date when the City pays to the Lender the Principal amount of the Note, the City shall pay to the Lender an amount equal to the interest accrued on the principal amount of the Note computed (subject to the provisions of Sections 3 and 4 hereof) at the rate which is seventy percent (70%) of the Prime Interest Rate, as hereinafter defined, but at no time during the term hereof less than ten percent (10%) per annum during the first year following the Closing Date or eleven and one-half percent (11.5%) per annum thereafter nor more than twenty-five percent (25%) per annum at any time; and b. On the earlier of (i) twenty-four (24) months after the Closing Date, or (ii) the date when the City elects, pursuant to the terms of the Loan Agreement and this Note, to pay to the Lender the principal amount of the Note, the City shall pay to the Lender the principal amount of the Note plus accrued interest from the date of the last payment of interest made pursuant to the preceding paragraph (a). The term "Prime Interest Rate" means the prime rate of interest set or announced from time to time by the Lender as a basis for determining the rate of interest on commercial borrowings. The Lender may, but shall not be required to, give notice of any chang~ in the Prime Interest Rate tO the City or the Developer. Any change in the interest rate of this Note due to a change in the Prime Interest Rate shall be deemed to have occurred on the day on which the Prime Interest Rate changes. 3.. In the event that interest on this Note becomes includable in the gross income of the Lender for federal income tax purposes pursuant to a Determination of Taxability, as hereinafter defined, the interest rate of this Note shall, subject to the provisions of Section 4 hereof, be increased to an interest rate equal to two percent (2%) per annum above the Prime Interest Rate beginning on the Date of Taxability, as hereinafter defined; provided, however, that in such event the interest rate per annum on the Note shall at no time be less than twelve percent (12%) during the first year following the Closing Date and thirteen and one-half percent (13.5%) thereafter, nor more than thirty-five percent (35%) at any time. In such event the interest payments to be made by the City pursuant to this Note shall be adjusted accordingly and the principal amount of this Note shall be immediately due and payable in full at the option of the Lender. In addition, the City agrees to pay to the Lender the difference between the aggregate payments Regular Council Meeting March 9, 1981 pa.qe .13 made by the City between the Date of Taxability and the date upon which the adjusted payments commence pursuant to this paragraph, and the payments which would have been made by the City during such period if the interest payments had been made at the adjusted interest rate. Without limitint[ in any way survival of other provisions of this Note, it is hereby expressly agreed that the provisions of this paragraph sha~l survive payment and discharge of this Note. The term "Determination of Taxability" shall mean, and for all purposes shall be deemed to have occurred as of (i) a change in the Internal Revenue Code of 1954, as amended, (ii) the issuance of a statutory notice of deficiency by the Internal Revenue Service, (iii) a ruling of the National Office or any District Office of the Internal Revenue Service, (iv) a ruling of the Minnesota Department of Revenue, (v) a decision of a court of competent jurisdiction, or (vi) any'other occurrence, which makes the interest payable on the Note includable in the gross income of the recipient for federal income tax purposes. The term "Date of Taxability" shall mean that point in time when the interest payable on this Note becomes includable in the gross income of the recipient for purposes of federal income taxation. 4. Notwithstanding anything to the contrary contained herein, the rate of interest hereunder shall be equal to five percent (5%) per annum in excess of the Prime Interest Rate, as the same changes from time to time, but not greater than thirty-five percent (35%), if, and from and after the date on which, the "Standby Lender's Commitment Letter" (as that term is defined in the Construction Loan Agreement) expires or is terminated, regardless of whether or not the Lender declares an Event of Default as a result of such expiration or termination, and regardless of whether or not a Determination of Taxability has theretofore occurred or thereafter occurs. 5. If any installment of interest hereunder is not paid within ten (10) days of the due date thereof, the City shall pay to the Lender, on demand, a late charge equal to four percent (4%) of the amount of such installment. 6. In all eases interest shall be calculated on the basis of a 360-day year, but charged for actual days elapsed in a year of 365 days. All payments or prepayments hereunder shall, at the option of the Lender, first be applied to any late charges, next to accrued interest, and the remainder to principaL ?. This Note is issued by the City as a revenue bond in the principal amount of seven hundred seventy-five thousand dollars ($775,000) under and pursuant to the Municipal Industrial Development Act, as amended, being Minnesota Statutes, Chapter 474, and any acts amendatory thereof and supple- mental thereto in effect on the date of a note resolution duly adopted by the City (the "Resolution"). The proceeds from the sale of the Note are being loaned to the Developer, pursuant to the terms of the Loan Agreement, dated as of March 11, 1981, and executed by the City and the Developer, for the purpose of financing the acquisition, construction and installation of a project (within the meaning of Minnesota Statutes, Section 474.02, subdivision la) within the corporate limits of the City. The project (hereinafter referred to as the "Project") consists of a building to be constructed for use as an office building. The disbursements of the proceeds from the sale of this Note will be made pursuant to the Construction Loan Agreement. Payment of the principal of and interest on the Note is also secured bv the Mortgage, Security Agreement and Fixture Financing Statement, dated as of ~arch 11, 1981, and executed by the Developer (the "Mortgage"), the Assignment Regular Council Meeting March 9, 1981 page 1 4 of Leases and Rents, dated as ~f Mar~l~ 11, '19B1~ and executed'by the' ueveioper (the "Assignment of Leases and Rents"), the Assignment, dated as of March 11, 19B1, and executed by the City (the "Assignment"), and the Refunding Agreement, dated as of March 11, 1981, and executed by the Developer end Lender and ITT Industrial Credit Company, a Nevada corporation, (the "Refunding Agreement"), and the Personal Guaranty, dated as of March 11, 19B1 and executed by James J. Ruvelson (the "Guaranty"). 8. This Note may be prepaid in whole, but not in part, on any date on which any interest payment on the Note is due, without premium or penalty. 9. All of the agreements, conditions covenants, provisions and stipula- tions contained in the Resolution, Loan Agreement, Construction Loan Agreement, Mortgage, Guaranty, Assignment, Refunding Agreement, Commitment Letter (as that document is referred to in the Construction Loan Agreement), and Assignment of Leases and Rents, or any other instrument securing this Note are hereby made a part of this Note to the same extent and with the same force and effect as if they were fully set forth herein. If an Event of Default occurs under any of the foregoing documents, then the Lender may at its right and option declare immediately due and payab]e the principal balance of this Note and interest accrued thereon, together with any attorney's fees incurred by the Lender in collecting or enforcing payment hereunder, whether suit be brought or not, and all other sums due hereunder or under the Loan Agreement, Construction Loan Agreement, Mortgage, Guaranty, Refunding Agreement, Commitment Letter, and Assignment of Leases and Rents, or any other instrument securing this Note. The Lender may extend the time of payment of interest or principal of this Note, without notice to or consent of any party liable hereon, and without releasing any 10. This Note and interest thereon are payable solely from the revenues and proceeds derived from the Loan Agreement, Construction Loan Agreement, Mortgage, Guaranty, Refunding Agreement, Assignment and Assignment of Le~es and Rents, and does not constitute a debt of the City within the meaning of any constitutional or statutory limitation, is not payable from or a charge upon any funds other than the revenues and proceeds pledged to the payment thereof, and does not give t~ise to a pecuniary liability of the City, or any of its officers, agents or emp]oyees; and no owner of this Note shall ever have the right to eompe.l any exercise of the taxing power of the City to pay this Note or the interest thereon, or to enforce payment thereof against any property of the City, and this Note does not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the City, other than the revenues derived from the Loan Agreement, and the agreement of the City to perform or cause the performance of the covenants and other provisions herein referred to shall be subject at all times to the availability of revenues or other funds furnished for such purpose in accordance with the Loan Agreement, sufficient to pay all costs of such performance or the enforcement thereof. 11. The remedies of the Lender as provided herein, and in the Loan Agreement, Construction Loan Agreement, Mortgage, Guaranty, Refunding Agree- ment, Commitment Letter, Assignment and Assignment of Leases and Rents, or any other instrument securing this Note, shall be cumulative and concurrent and may be pursued singly, successively or together, and at the sole discretion of the Lender, and may be exercised as often as occasion therefor shall occur; and the failure to exercise any such right or remedy shall in no event be construed as a waiver or release thereof. 12. The Lender shall not be deemed, by any act of omission or commis- sion, to have waived any of its rights or remedies hereunder unless such waiver is in writing and signed by the Lender and then only to the extent specifically set forth in the writing. A waiver with reference to one event shall not be construed as continuing or as a bar to or waiver of any right or remedy as to a subsequent event. Regular Council Meeting March 9, 1981 page 15 13. The City hereby waives presentment, demand, protest and notices of protest and dishonor. IT IS HEREBY CERTIFIED AND RECITED that all conditions, acts and things required to exist, happen and be performed precedent to or in the issuance of this Note do exist, have happened and have been performed in regular and due form as required by law. IN WITNESS WHEREOF, the City has caused this Note to be duly executed by its duly authorized officers and its corporate seal affixed all as of the fir~ day of TH E MINNESOTA (SEAL) By Mayor By City Manager 6. Communications a. Traffic Commission 1. St. Matthew's Church The Traffic Commission recommended that "No Parking Anytime" signs be instal- led on the east side of Washington Street in front of the church property and that one sign at; the north corner of the parking lot on the west side of Washington Street read "No Parking Here To Corner". The Public Works Dir- ector said there presently is no sign on the north corner of the parking lot and is of the opinion there is no need for one to be placed there. Motion by Heintz, second by Norberg to authorize the placement of two signs; one on the east side of Washington Street that will read "No Parking Anytime" (replacing the sign that reads "No Parking on Sunday") and a sign that reads "No Parking Here to Corner" on the north corner of the parking lot on the west side of Washington Street, based on the recommendation of the Traffic Commission. The intent of erecting these signs is to relieve the congestion in the area that results during services, as well as, when meetings are being held at the church. Considerable discussion followed as to what exactly was being requested by the church and residents living close to church property. Motion by Norberg, second by Heintz to table this matter until the next regular Council meeting. Roll call: Logacz, Heintz, Norberg, Nawrocki--aye Hentges--abstain 2. 44th Avenue N.E., Main to T.H. 47 Motion by Norberg, second by Hentges, on recommendation of the Traffic Commis- sion, that "No Truck Parking --Over 24,000 Gross Weight" signs be placed from the west side of University to Main Street on the north side of 44th Avenue. Councilman Heintz expressed concern about where the trucks, that presently park in this area, will eventually be parking. He also felt when the police department enforces this it should consider a like kind of enforcement around the area of Fifth Street where a similar problem exists. Roll call: All ayes Motion by Norberg to request the Traffic Commission to consider similar signs for the south side of 44th Avenue. Motion dies for lack of a second. Regular Council Meeting March 9, 1981 page 16 b. Planning and Zoning 1. Susan Prestwood, 4108 Quincy St.N.E. Variance Mrs. Prestwood is requesting a ten foot setback variance from the rear lot line for a proposed 22' x 22' detached garage. Councilman Norberg feels this request if more a matter of convenience than one of hardship. Motion by Hentges, second by Heintz, upon recommendation of the Planning and Zoning Commission~to grant the variance. Roll call: Logacz, Heintz, Hentges, Nawrocki--aye Norberg--abstain 2. City of Columbia Heights Plat Approval of City-Owned Property Around Sullivan Lake The plat in question contains four parcels labeled A, B, C, and D. Parcels A and C may be sold for future development. Parcel B is to be dedicated to Sullivan Lake Park. Parcel D is to be dedicated as part of the n~cessary street easement for 51st Avenue. The Council is being asked to establish a public hearing date for the subdivision of the Sullivan Lake property and to determine boundaries for Parcel B. The Planning and Zoning Commission is recommending approval of the proposed plat as presented with the exception that the area encompassing the oak trees on the north side of the lake to be included as part of Parcel B, the parcel to be dedicated to Sullivan Lake. The City Planner explained the Commis- sion's thinking on saving these trees and the City Manager recommended against saving these trees in that if they are left it would impact on the future sale and development of this parcel. Motion by Norberg to concur with the recommendations of the Planning and Zoning Commission. Motion dies for lack of a second. Motion by Heintz, second by Logacz to concur with the City Manager's recommendation to approve the registered land survey for purposes of a public hearing on March 30th at 8 pm. Motion by Norberg to refer this matter to the Park Board for review of the Planning and Zoning~s ~ecommendation. Motion dies for lack of a second. The City Manager gave details of a meeting of residents living near Sullivan Lake and representatives of the Park Board. These residents expressed concern regard- ing the proposed pathway on the south side of the lake. The Park Board recommended this pathway should not be extended. The Mayor suggested an alternative could be considered for dividing private property from pub]lc]y-owned property in addres- sing the extension of this pathway. Councilman Heintz said people cannot, by statute, be prohibited from walking along shoreline property. Erecting a fence had been a consideration the Public Works Director told the Council. Ro]l call: Logacz, Heintz, Hentges, Nawrocki--aye Norberg--nay c. Designation of Public Waters and Wetlands Mr. Hutchison, Director of Environmental Services for Anoka County, gave a present- ation dealing with classification of Public Waters and Wetlands in Columbia Heights and Anoka County. The DNR has designated five bodies of water in Columbia Heights as public bodies of water. It was noted by the Council that four of these bodies of water resulted from storm drainage, Silver Lake being the exception. The Council felt it somewhat outrageous that these reservoirs of water could be declared as "public" considering the basis of their origin and that they could be subject to yet another layer of governmental control. Councilman Norberg felt that all bodies of water that had been developed from storm sewer drainage and been the recipient of investment by local government should be eliminated for consideration. The Mayor felt this designation had absolutely no basis in fact and there is no need for more rules and regulations. Mr. Hutchison defined the term of wetlands, and this definition included bodies of water whether they were man made or natural. He informed the Council that the designation can be appealed. In December of 1980 Regular Council Meeting March 9, 1981 page 17 the Council had reviewed this list of designated wetlands and their reservations were forwarded to Mr. Hutchison at that time. These reservations were reviewed but the list of the same bodies of water remains unchanged at this time. RECESS: 10:05 RECONVENE: 10:30 7. Old and New Business a. Old Business 1. Authorization of Payment of League of Minnesota Cities--Building Project Motion by Hentges, secon~ by Heintz to authorize the expenditure of $10,660 to the League of Minnesota Cities as Columbia Heightst proportionate share for financing construction of the Leaguels office building; and further- more, that such payment be made from the General Fund-Unallocated Contin- gency Account. Councilman Norberg mentioned that some smaller cities are resigning from the League and wondered if this would change the total amount of the City's share. There was no information available to answer this ques- tion. Roll call: Logacz, Heintz, Hentges, Nawrocki--aye Norberg--nay The City Manager recommended this payment not be made until the latter part of June so the monies could remain in the City's account and accrue interest. 2. Survey of Residents--Pathway at Sullivan Lake The City's plans to construct a trail along the south shore of Sullivan Lake was the subject discussed with residents in the area near Sullivan Lake and with the Chairman of the Park Board and the Acting Park Superintendent. The Park Board recommended that this trail not be constructed. Motion by Norberg, second by Heintz to table this matter for further consideration until after the public hearing on March 30th. The Mayor felt this matter and the subject to be discussed at the public hearing are two separate matters. It was suggested by Councilman Heintz this matter be brought back to the Council at the n~xt regular Council meeting following the public hearing. Roll call: Heintz, Norberg, Hentges--aye Logacz, Nawrocki--nay Motion carries 3. Relocation of 41st Avenue Cul-de-Sac and Associated Improvements in LaBelle Park Motion by Logacz, second by Heintz to authorize the City Manager to incorporate in final bid plans changes in the 41st Avenue cul-de-sac and other changes in LaBelle Park, as recommended by the Park Board~and as contained in Plan # 2 submitted by Suburban Engineering. Discussion followed concerning the specifics of this plan. Roll call: All ayes 4. Science, Technology and Energy Commission Councilman Norberg advised there is a vacancy on the Science, Technology and Energy Commission and inquired if the Council wished for this commission to recommend any special background required for the person appointed to fill this vacancy. Council- man Heintz said there is an ordinance that determines the make-up of the commission's members qualifications. A person with experience in computer soft- ware is the desire of the commission. The person who resigned was one of the technical appointments. Regular Council Meeting March 9, 1981 page 18 b. New Business 1. Engineering Agreement with City of St. Anthony Motion by Heintz, second by Hentges to authorize the Mayor and City Manager to enter into an agreement with the City of St. Anthony for supplemental engineering services. Councilman Norberg questioned the costs for the services of an outside engineer. Roll call: Logacz, Heintz, Hentges, Nawrocki--aye Norberg--nay 2. Authorization to Receive Bids for Seeder and Fertilizer Spreader for Park Department Motion by Logacz, second by Hentges to authorize the City Manager to advertise for bids for a seeder and fertilizer spreader to be opened on April 8th, and submitted to the City Council on April 13th. Councilman Norberg said, even though this item has been budgeted for, that the question of need should be addressed. The City Manager felt there is a need to purchase this spreader. At the time it could be rented it is in considerable demand and would be very difficult to get. Roll call: Logacz, Heintz, Hentges, Nawrocki--aye Norberg--abstain 3. Authorization to Expend Funds for Purchase of Signs Motion by Heintz, second by Logacz to authorize the City Manager to expend funds for the purchase of miscellaneous sign letters scotch lite sign faces from W.L.V. Sign and Supply, Inc. of Addison, Illinois in the amount of $518.q5. This amount includes freight charges. Roll call: All ayes 4. Ratify Action of City Manager in Purchasing Traffic Paint Motion by Heintz, second by Hentges to ratify the action of the City Manager for purchasing traffic paint from Vogel Paint and Wax Company in the amount of $1,517, based upon low bid. Councilman Norberg felt' the City Manager should have looked beyond Hennepin County for prices as there is no guarantee that this is the lowest bid. The City Manager had depended on past experience with this type of item and had been advised that the Hennepln County price for paint provided the lowest cost. Roll call: Logacz, Heintz, Hentges, Nawrocki--aye Norberg--nay 5. Authorization to Expend Funds for Purchase of Sanafoam Vaporooter Motion by Hentges, second by Logacz to authorize the Mayor and City Manager to expend funds for the purchase of sanafoam vaporooter from LeeMar Distributors,Inc. of West Des Moines, Iowa in the amount of $5,737.50; and furthermore, that this purchase be considered a proprietary article. Ro11 call: All ayes 6. Authorization to Seek Bids for Purchase of Engine Analyzer Motion by Heintz, second by Logacz to authorize the City Manager to seek bids for the purchase of an engine analyzer with bid opening on April 8th and a report to the Council at the following regular Council meeting. Councilman Hentges inquired how this item would benefit the City's maintenance department. It is requested that the Public Works Director has a cost benefit analysis prepared. Roll call: All ayes 7. Authorization to Expend Funds for the Purchase of Fire Prevention Literature Motion by Hentges, second by Norberg to authorize the expenditure of $1,355 to Channing L. gete Company for the purchase of the booklet entitled, "Fire"; and furthermore, that this be considered a proprietary item. Roll call: All ayes 8. Establish Date for Board of Review Hearing Motion by'Heintz, second by Logacz to establish the Board of Review Meeting on May 4, 1981 at 7:00 pm. Roll call: All ayes Council Meeting March 9, 1981 page 19 9. Establish Date for Special Assessment Hearing Regarding Seal Coating Motion by Heintz, second by Hentges to establish March 30th at 7:30 pm for a public hearing regarding special assessment of repair and seal coating of bituminous street surfacing on those street contained in the area bounded by 45th Avenue on the north; Main Street on the west; 40th Avenue on the south; and University Avenue on the east. Roll call: All ayes 10. Accounting--Bookkeeping Machine Motion by Heintz, second by Logacz to authorize the' City Manager to purchase a used Burroughs 1500 Accounting-Bookkeeping machine from R.G.Enterprises of Minneapolis in the amount of $1,000. This machine will be covered by the City's present main- tenance agreement with Hagen Systems. Roll call: AIl ayes 11. Joint Meeting of the City Council and the 5chool Board The City Manager referred to a packet the Council had received from him containing a draft agreement between the City of Columbia Heights and the School Board.'This agreement i~ in regard to a community center and future use of closed school sites. This material will be discussed at a joint meeting scheduled for Wednesday, March llth. 8. Reports a. Report of the City Manager This report was submitted in written form. b. Report of the City Attorney The City Attorney had nothing new to be discussed at this time. Licenses Motion by Heintz, second by Logacz that licenses be approved, as listed, upon proper payment of fees. Rol! call: All ayes 10..Payment of Bills Motion by Heintz, second by Logacz to authorize the payment of the bills, as listed, out of the proper funds. Roll call: All ayes Adjournment Motion by Heintz, second by Logacz to adjourn the meeting. Adjournment: 11:45 pm. /~lto.-Anhe St6dent, C'6~nci 1 Secretary Roll call: All ayes Bruce G NawrockJ, Mayor