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HomeMy WebLinkAboutNovember 24, 1992 Work SessionNOTICE OF OFFICIAL MEETING Notice is hereby given that an official meeting is to be held in the City of Columbia Heights as follows: Meeting of: MAYOR, CITY COUNCIL, AND CITY MANAGER Date of Meeting: TUESDAY, NOVEMBER 24, 1992 Time of Meeting:. 7:00 PM Location of Meeting: COUNCIL CHAMBERS 590 40TH AVENUE N.E. Purpose of Meeting: 7:00 PM WORK SESSION 1. 1993 Budget 9:15 PM 2. North Metro Mayors' Association Request for Resolutions 9:30 PM 3. HRA a. Direction on Parkview Villa Management b. Response to Prior Council Questions 10:00 PM 4. Federal Infrastructure Program 10:15 PM 5. Distribution and Use of Surplus From Four City Bond Restructuring 10:30 PM 6. Adjourn Auxiliary aids for handicapped persons are available upon request when the request is made at least 96 hours in advance. Please call the City Council Secretary at 782-2800, Extension 209, to make arrangements. NORTH METRO MAYORS ASSOCIATION NORTH METRO MAYORS ASSOCIATION T.H. 610 CROSSTOWN RESOLUTION WHEREAS, the North'Metro Mayors Association (NMMA) is an organization comprised of the following 18 North Metro communities: Anoka Champlin Lino Lakes Blaine Circle Pines Minneapolis Brooklyn Park Columbia Heights New Brighton Brooklyn Center Coon Rapids New Hope Dayton Cry st al Robbin sdale Centerville Fridley Ramsey WHEREAS, the NMMA has identified the construction of the T.H. 610 CROSSTO\VN as the highest transportation priority project for the North Metro area, and WHEREAS, the NMMA supports the T.H. 610 CROSSTO\VN corridor conmaunities of Maple Grove. Brooklyn Park, Coon Rapids, Blaine and Mounds View in their united effort to secure federal and state funding for the construction of this important piece of transportation infrastructure, and WHEREAS, the NMMA encourages the Minnesota Department of Transportation (MnDOT) to work to secure all of the funding needed to complete construction of the entire T.H. 610 CROSSTOWN project from Interstate 35W in Mounds View to Interstate 94 in Maple Grove, and WHEREAS, the NMMA wishes to recognize the cooperative spirit and support that MnDOT has exhibited to keep the T.H. 610 CROSSTOWN project on schedule and situated as a top transportation priority in its metropolitan regional planning process, and WHEREAS, the NMMA understands that our common effort must continue unabated in order to achieve the stated goal of constructing the entire T.H. 610 CROSSTOWN project before the turn of the century, and WHEREAS, the NMMA is committed to working with MnDOT, the Metropolitan Council and elected officials of the North Metro area in securing the transportation funds needed to complete the T.H. 610 CROSSTOWN project in a timely manner, and 8525 EDINBROOK CROSSING. SUITE 5. BROOKLYN PARK. MINNESOTA 55443 TELEPHONE 612-493-5115 FAX 612424-1174 NORTh METRO MAYORS ASSOCIATION NORTH METRO MAYORS AssOCIATION PROPOSED T.H. 610 CROSSTOWN IMPROVEMENTS COON RAPIDS BOULEVARD WHEREAS. the North Metro .Mayors Association (NMMA) is an organization comprised of the foll'owing 18 North Metro communities: Anoka Champlin Lino Lakes Blaine Circle Pines Minneapolis Brooklyn Park Columbia Heights New Brighton Brooklyn Center Coon Rapids New Hope Dayton Crystal Robbinsdale Centerville Fridley Ranisey WHEREAS, the North Metro ..",layors Association has identified the construction of the T.H. 610 Crosstown as the highest transportation priority project for the North Metro area, and \VHEREAS, the construction of T.H. 10 and T.H. 610 to T.H. 65 is scheduled for constn~ction in phases through 1996, and WHEREAS, existing T.H. 610 interchanges at Coon Rapids Boulevard and at East River Road in Coon Rapids provide no access eastbound on T.H. 10 or egress westbound on T.H. 10 within Coon Rapids, and WHEREAS, alternative access egress to T.H. 10 from Coon Rapids traffic is circuitous, and WHEREAS, several discussions have taken place with MnDOT relative to a modification of the Coon Rapids Boulevard interchange into a full movement folded diamond, and WHEREAS, present plans for T.H. 10 construction do not include this interchange construction, aha WHEREAS, a Supplemental Draft Environmental Impact Statement for the T.H. 610 Crosstown does not include the modification of the Coon Rapids Boulevard interchange, and WHEREAS, the modification of the Coon Rapids Boulevard interchange is essenfial to efficient accessibility to T.H. 10 easterly of Coon Rapids. 8525 EDINBROOK CROSSING, SUITE 5, BROOKLYN PARK, MINNESOTA 554.43 TELEPHONE 612-493-5155 FAX 612-424-l$74 WHEREAS, the NMMA played a vital role in securing federal funding in the amount of $36 million for construction of the second stage of T.H. 610 CROSSTOWN through Brooklyn Park, and has worked diligently with MnDOT to keep the construction of the eastern portion of the 610 CROSSTOWN through Blaine and Mounds View on schedule, and WHEREAS, the NMMA is committed to providing the necessary time, talent and resources needed to keep T.H. 610 CROSSTOWN on schedule as the top transportation project for the North Metro area, and views the adoption of the Supplemental Draft Environmental Impact Statement, dated October 1992, as a critical step in the process of preparing the reserved 610 corridor in Brooklyn Park and Maple Grove for funding and scheduled construction phases. NOW THEREFORE BE IT RESOLVED, that the NMMA hereby requests that the Supplemental Draft Environmental Impact Statement, dated October 1992, prepared by Strgar, Roscoe & Fausch, Inc., in cooperation with MnDOT, be adopted and used as the basis for implementing the T.H. 610 CROSSTOWN project. For more information, please contact: Mr. Joseph D. Strauss North Metro Mayors Association 8525 Edinbrook Crossing, Suite 5 Brooklyn Park, MN 55443 612/493-5115 Housing & Redevelopment Authority of Columbia Heights Commissioners Eusebius Heintz Patricia Jindra Bruce Nawroc~J Richard Dustin ,,ion P. Pawluk 590 N.E. 40th Avenue, Columbia Heights, MN 55421 Fax: (612) 782-2801 · (612) 782-2854 November 18, 1992 BOARD OF COMMISSIONERS HOUSING AND REDEVELOPMENT AUTHORITY COLUMBIA HEIGHTS, MINNESOTA 55421 Dear Commissioners: Following is the Agenda for the Special Meeting of the Housing and Redevelop- ment Authority Board of Commissioners to be held on Tuesday, November 24, 1992 at 6:00 P.M. in the HRA Office Meeting Room, City Hall, 590-40th Avenue N.E., Columbia Heights, Minnesota. For the information of members of the public interested in attending the meeting, auxiliary aids for handicapped persons are available upon request when the request is made at least 96 hours in advance. Please call the HRA Secretary at 782-2854 to make arrangements. 1. Call to Order. 2. Roll Call. 3. Housinq and Redevelopment Authority Business: Consider matter of management of Parkview Villa Housing Complex. At the Special Meeting of November 17 this matter was tabled for further information from Crest View Lutheran Home on their proposal for managing the Parkview Villa Complex. Tom Paul of Crest View has indicated that he will be present at the meeting to answer any questions in regard to their proposal. 4. Executive Director's Report. 5. Adjourn. If you are unable to attend, please call the HRA office at 782-2854. Respectful ly~ .~"Z"~._..~.~' ~, ~ /'-"' /' j Do~a~ ~. Schne~e~ Sxecu~ve D~ec~o~ CC: Mayor & City Council City Manager City Engineer City Bldg. Official Focus & Northeaster Newspapers Crest View Lutheran Home (Tom Paul) Equal Opportunity Employer Equal Housing Opportunity Agency NOW THEREFORE BE IT RESOLVED, the North Metro Mayors Association requests that any plans for T.H. 610 construction westerly of T.H. 10 include a modification of the Coon Rapids Boulevard interchange to provide full traffic movements, and that these improvements be included in the first phase of any T.H. 610 construction. Housing & Redevelopment Authority of Columbia Heights Commissioners Eus~bius Hein~z Patricia Jindr~ Bruce Nawrocki Richard Dustin Jon P. Pawluk 590 N.E. 40th Avenue, Columbia Heights, MN 55421 Fax: (612) 782-2801 · (612) 782-2854 DATE: TO: FROM: SUBJECT: November 20, 1992 Stuart Anderson, city Manager Donald R. Schneider, Executive Director~~'J~ '''~'' FOLLOW-UP QUESTIONS FOR CITY COUNCIL ON HRA ISSUE As per your request of November 17, the following is provided in response to your questions on savings as a result of the city Council becoming the HRA or EDA Board of Commissioners. 1. Elimination of Aqenda and backup material provided for HRA Board. Unless the City Manager would be doing the agenda and all backup, materials for the HRA/EDA business, savings in this area would be minimal. As I understand, HRA staff would still have to prepare City Council letters (not necessary now for HRA Commissioner items) and all related backup materials. The City and HRA would have the savings of not making up agenda packets for 4 Commissioners. Savings are estimated at 7.5 cents per copy @ 50 copies per meeting for 2 meetings per month for 4 packets for a total of $360 per year. In addition there would be saving of staff time for duplicating efforts when items have to be approved both by the HRA and Board of Commissioners and City Council. We would estimate staff time savings of 10 to 15 hours per month at an average approximate cost of $20 per hour or $300/month or $3,600 per year. However, this staff time could be used on other HRA activities. (Total savings of $3,960.) 2. Elimination of double financial records; including payment of bills, payroll, etc.. This is very difficult to estimate. Costs savings related to the Financial Coordinator position and elimina- tion of outside accounting are cited below. We would save the cost of staff in preparing and disbursing checks and in maintaining the copies of the checks, etc. We estimate that we would save approximately 8-10 hours of staff time (other than Financial Coordinator) at $12 per hour for $120/month or $1,440 per year. (Total savings of $1,440/year.) 3. Elimination of second audit.. The FY1991 audit of the HRA cost $5,000. The FY1992, if done by Deloitte - Touche, will cost $7,000. Due to HUD requirements for HUD funded projects, CDBG and Parkview Villa Highrise, it is estimated that approximately $3,000 to $4,000 will be saved in this area for the audit. In addition there will be come staff time saved (other than Financial Coordina- tor) with the savings estimated at $500.00. (Total estimated savings of $4,500.) ~ EqualOp~unityEmployer EqualHousing Oppo~unityAgency RE: FOLLOW-UP QUESTIONS FOR CITY COUNCIL ON HRA ISSUE 4. Se e PAGE 2 Investment of surplus funds- The Financial Coordinator currently invests surplus funds. With his position eliminated below, there would be no additional savings for HRA staff time. However, when our surplus funds are combined with city funds it is expected that better interest rates could be secured on investments. We estimate that with $500,000 in reserves invested at a 1% higher rate would earn (or save) for the HRA an additional $5,000/year. (Total savings of $5,000/year.) Cost of manaqinq personnel issues (hirinq, discipline, etc.~ Depending on personnel turnover and problems during the year, w~: would estimate that $2,000 to $3,000 are spent on personnel issue matters. This year with legal costs, settlement on Daniels case, and other personnel issue costs, we have spent approximately $5,000. (Total average estimated savings of $3,000.) Identify actual costs paid to outside accountant, the cost of th9 Financial Coordinator, the cost of financial computer software anq maintenance aqreement, etc. A. The HRA has paid Bauer-Jackson $9,567 through October for outside accounting services. Approximately another $1,600 will be paid prior to year end, for a total of approximately $11,167. However, staff is currently implementing an internal accounting system with the assistance of the city Finance Department. With an internal system the HRA will only need minimal outside accounting support. If we count the total outside accounting cost, the savings would be approximately $11,200. With only minimal outside accounting support there would only be a savings of $1,000 to $2,000 per year. (Total savings in 1993 estimated at $9,200.) B. Elimination of the Financial Coordinator (24 hour/week) position would provide a possible savings of $22,500. However, this is providing the city Finance Department can do the work without any additional staff. The are numerous reports and other requirements .that must be addressed to meet Department of Housing and Urban Development (HUD) requirements on the Parkview Villa Highrise (MN 105001) project. (Savings of approximately $22,500 per year.) C. The cost for the financial computer software and mainte- nance agreements are $2,100 per year. (Saving of approxi- mately $2,100 per year.) (Total estimated savings in item #6: $33,800.) 7. HRA Commissioner per diem payments. Based on an average of two meetings per month at $35.00 per meeting for 4 commissioners for 12 months there would be a savings of $1,680 for the year. COMBINED TOTAL ESTINATED S~VINGS: $53,380/YEAR. The above estimates are dependent on many variables and savings could be greater or less depending on how the HRA is structured after the City Council becomes the governing body. Please call me if you need anything further or if you have any questions. DATE: CITY OF COLUMBIA HEIGHTS NOVEMBER 19, 1992 ~0"./ 20 1992 TO: FROM: STUART ANDERSON CITY MANAGER WILLIAM ELRITE~) FINANCE DIRECTOR ESTABLISHMENT OF FUNDS VERSUS OPERATING DEPARTMENTS After the recent discussion on this subject, I reviewed the National Council on Governmental Accounting Statements on Governmental Accounting and Financial Reporting Principles for the exact terminology related to establishing separate funds. The requirement is as follows: "Governmental units should establish and maintain those funds required by law and sound financial administration. Only the minimum number of funds consistent with legal and operating requirements should be established, however, since unnecessary funds result in inflexibility, undue complexity, and inefficient financial administration." This policy has been used in the City of Columbia Heights in establishing funds and was used in establishing Housing and Redevelopment Authority funds for their in-house computer system. In the HRA, we established four funds: a General fund, Parkview Villa South fund, Parkview Villa North fund, and a CDBG fund, with provisions for capital funds for any projects that would be undertaken in the future. We established three separate funds in addition to the General fund because each of these areas has specific legal requirements regarding the use of revenue and fund balances. Any fund balance generated in these three funds can only be used for the purpose of that fund. Within the scope of this policy, a fund is defined as a fiscal and accounting entity with a self-balancing set of accounts in which cash and other financial resources and al! related liabilities and residual equities are recorded and segregated. Within the General fund, three departments were established: administration, Section 8, and home improvement. A department is a group of accounts recording all expenditures for specific areas of operation. Within the General fund there are also specific revenue line items related to revenue sources and operations. Within this accounting structure, a separate income statement can be generated for each of the funds established and for the departments within the General fund. For example, within the General fund, the Section 8 revenue and expenses are tracked separately to allow staff to produce an income statement strictly on Section 8. This meets all of the internal and external reporting requirements and audit standards. Stuart Anderson November 19, 1992 Page Two To attempt to summarize this into a very general, but simple statement: A separate fund is required if there are legal or operating restrictions on the fund balance that limit its use. If revenue received for Section 8 or home improvement was legally limited and could only be used on those activities, then a separate fund should be established. In establishing funds and accounts for the in-house HRA accounting system, we utilized a more liberal approach on the establishment of funds than before. In the past, Parkview Villa South was included as part of the General fund. In the new accounting system both Parkview Villa South and Parkview Villa North were set up as separate funds, allowing for better historical financial records on the two entities related to assets and liabilities which appear on the balance sheet. If there are other questions or concerns related to this, or if you or anyone else would like more detailed information, please let me know. WE:dn 9211191 Attachment .--L SPRINGSTED PUBLIC FINANCE ADVISORS Home O~ce 85 East Seventh Place Suite 100 Saint Paul, MN 55101-2143 (612) 223-3000 Fax: {612) 223-3002 '- November 12, 199~'., Mr. William Elrite, Clerk-Treasurer Mr. Donald Schneider Housing & Redevelopment Authority of Columbia Heights City of Columbia Heights 590 40th Avenue N.E. Columbia Heights, MN 55421 Mr. Gerald Sorenson, Assistant Manager City of Moorhead 500 Center Avenue, Box 779 Moorhead, MN 56560 120 South Sixth Street Suite 2507 Minneapolis, MN 55402-1800 (612) 333-9177 Fax: (612) 349-5230 16655 West Bluemound Road Suite 290 Brookfield, WI 53005-5935 (414) 782-8222 Fax: (414) 782-2904 6800 College Boulevard Suite 600 Overland Park, KS 66211-1533 (913) 345*8062 Fax: (913) 345-1770 1800K Street NW Suite 831 Washington, DC 20006-2200 (202) 466-3344 Fax: (202) 223-1362 Mr. Richard Gangelhoff, Finance Officer Mr. Bill Deblon Community Development Director City of Robbinsdale 4221 Lake Road Robbinsdale, MN 55422 Mr. Paul Holmlund, Finance Director Mr. Brad Hoffman, EDA Coordinator City of Brooklyn Center 6301 Shingle Creek Parkway Brooklyn Center, MN 55430 Re: Four Cities Single Family Restructuring Dear Sirs: Distribution from Trust Estate: The actual closing for the restructuring went quite smoothly on Tuesday. As we went through the details of the distribution of funds to the Cities, it became apparent that some of the funds would actually be released from the old trust estate. These funds carry neither expenditure nor rebate requirements and the Trustee was directed to send them directly to the cities. You will be receiving a check representing your City's portion of the funds released from the old trust estate as shown on the Schedule attached. Additionally, if there is unexpended cost of issuance money after all the billings clear, that money will also be distributed to you by check. Pro.qram Funds Under New Indentures: The remaining funds owed to the Cities come from the Series B and Series C bonds and are currently being held in separate accounts by the Trustee, First Trust Company. Each of the Cities has the ability to invest these funds as you desire and initially, all the funds have been deposited in a "AAA" rated. Treasury Money Market Fund as you have individually directed. You'll recall from previous conversations with Barbara Portwood that these funds are bond proceeds and are subject to rebate and expenditure provisions of federal law. For this reason Barb has suggested, and I agree with her, that it will be easier to track compliance and compute rebate if the funds remain with the Trustee- until you intend to spend them. You each have two individual project accounts with First Trust, one for Series B proceeds and one for Series C proceeds. Since there is one yield for federal purposes, I don't see an advantage of drawing down either fund A or B) earlier than the other. Mr. William Elrite Mr. Donald Schneider Mr. Gerald Sorenson Mr. Richard Gangelhoff Mr. Bill Deblon Mr. Paul Holmlund Mr. Brad Hoffman November 12, 1992 Page 2 First Trust is able to keep your funds under the Money Market Fund, invest them per your instructions, or bid specific investments (such as Treasury Bills, etc.) at your request. Any miscellaneous funds otherwise uninvested in your City's account will be kept under the Money Market Fund. I have attached a list that describes other fund investments that First Trust offers. If you elect to change the investment of your fund, please contact Elizabeth (Betsy) Vobach at 291-5067 or fax her instructions at 223-7335. Withdrawal of Funds: At such time you elect to withdraw funds from your project account(s) you should also contact Betsy Vobach. I have included a sample form that may prove useful in effecting the withdrawals. Betsy has asked that whenever possible you give her one day's notice of your desire to withdraw funds. The Final $300,000: During closing, I discussed more fully the abandoned "Series D" piece of residual funding with underwriter's counsel. A large part of the difficulty in structuring this piece at this point in time is due to the collateral requirements imposed by the rating agencies and the inability to get a rating for a stand-alone Series D. As you recall, the interest rate suggested for this piece was 12.00% tax-exempt. Over the next 6-18 months the asset value within the bond transaction is projected to improve to the point that it may be possible to sell additional rated bonds as opposed to unrated. Following our discussions, I requested that this event be provided for under the Series C indenture permitting the issuance of additional bonds should the Cities decide that they would like to liberate the final residual from the program. The Series C bonds were priced at 8.50% compared to the 12.00% for an unrated piece and should easily put the Cities' net return over a total of $1,900,000 if sold later. I have concurrence from the primary finance team participants that such additional bonds sold sometime in the next year could be done at a fairly Iow cost level. We will continue to monitor the asset value within the new bond structure and advise you of your options when appropriate. Availability and size of program residual will depend on payment patterns for the mortgages. Financing out the residual does offer a benefit of locking in a specific dollar return. I have not yet received copies of the final numbers, but will describe more fully the projected residual for you when I have access to those numbers. It has been a pleasure working with each of you on this transaction. Despite the complexity and difficulties of these types of transactions, each of you has maintained a clear perspective and made good decisions on behalf of your communities. I hope that the funds that were released have a positive impact for each of your Cities. Sincerely, Kathl~en A. Aho, CIPFA Executive Vice President \enc (EXHIBIT A) Treasury Obliaations Money Market Fund This money market mutual fund invests only in U.S. Treasury Obligations which are issued by the U.S. Government, its agencies or instrumentalities and which are fully guaranteed as to principal and interest by the United States. This fund will be AAA rated by Standard & Poors. The mutual fund selected for this purpose will be periodically reviewed and may be changed by First Trust from time. Government Obliaations Money Market Fund This money market mutual fund invests in U.S. Government securities which are either issued or guaranteed by the U.S. Government, its agencies or instrumentalities. The investments can include instruments backed only by the right of the issuer to borrow from the U.S. Treasury under certain circumstances or instruments backed by the credit of the agency issuing the obligation. The mutual fund selected for this purpose will be periodically reviewed and may be changed by First Trust from time to time. Tax-Free Oblfaations Money Market Fund This money market fund fund invests fn municipal securities which are debt obligations issued by or on behalf of any state, territory or possession of the U.S. including bonds rated Aa or better by Moody's or AA or better by Standard & Poor's; securities guaranteed by the U.S. Government; and tax-free commercial paper rated P-1 by Moody's or A-1 by Standard & Poor's. The mutual fund selected for this purpose will be periodically reviewed and may be changed by First Trust from time to time. First Bank Money Market Deposit Account This fund is a bank time deposit of First Bank National Association, Minneapolis, Minnesota. The interest rate paid fs the average of the Goldman ILA Prime Fund, the Shearson Temp and Federated Prime Funds. EFF 2/24/92 2797n/78 TO: First Trust Company 180 East Fifth Street St. Paul, MN. 55101 Elizabeth W. Vobach fax: (612) 223-7335 voice: 291-5067 REQUEST FOR DISTRIBUTION OF PROJECT FUNDS City of Brooklyn Center, City of Columbia Heights, City of Moorhead and the Robbinsdale Economic Development Authority Residual Interest Revenue Bonds, Series 1992 B & C City/EDA of Requested by Phone Number Date The above referenced issuer has expended or will expend upon receipt of project funds and requests that the following amount{s) be withdrawn from the issuers account(s) and transmitted to the issuer in accordance with the following instructions: Series B Amount $ Series C Amount $ Date for Withdrawal If to be sent by check, send to: Address Attn: If to be sent by wire, as follows: Name of Bank Location ABA # Attn: The following investments should be liquidated to provide for the withdrawal: Series B Series C Signed by: HOLMES & GRAVEN CHAR I'ERED BARBARA L. PORTWOOD AllOmc~ a~ Law Din:ct Dial (61"..) 337-92t3 November 16, 1992 Mr. Donald Schneider Execu~ve Director Columbia Heights HRA 590 - 40th Avenue N.E. Columbia Heights, Minnesota 55421 Expenditure Restrictions for City of Brooklyn Center, City of Columbia Heights, City of Moorhead and Robbinsdale Economic Development AuThority Residual Interest Revenue Bonds, Series 1992B and Ser~es 1992C Dear Mr. Schneider: You have asked fox. a description of the Limi~attorm on the expenditure of the proceeds of ~he captioned bonds (~he "Bonds"). The Bonds were issued pursuant to Lhe provisions of Minnesota Sta~u~es, Seczion 475.52, wh/ch authorizes the issuance of bonds for: the acquisition or betterment of public buildings, means of garbage disposal, hospitals, nursing homes, homes for the aged, schools, Hbrax, ies, museums, ar~c galleries, parks, playgrounds, a~ad/a, sewers, sewage d~sposal plants, subways, streets, sidewalks, warning systems; for any utility or other public convenience from wh/ch a revenue is or may be derived; for a permn~ent improvement revolving fund; for changing, con~rolHng ox. bridging streams and other waterways; for ~he acquisi~/on and bet~ermen~ of bridges and roads wi~b~n two miles of the corporate limits; and for acquisi~on of equipment for snow removal, street construction and maintenance, or fire fighting. Without lira/teflon by the foregoing the ci'~y may issue bonds to provide money fox, any authorized corporate purpose except current expenses. The Bonds were issued as mx exempt essential function bonds, and as a result the following limitations apply: No more than five percent (5%) of the proceeds may be used, directly or indirectly: (a) in a trade or business carried on by any person other than a governmental uni~, or (b) to m~ke or finance loans to persons othe~ than governmental units. BLP44755 NOV 16 '9,~ 1~:~? HOLMES .4~y activity carried on by a person other t]man a maturaI person ~s treated as a trade or business fox. xh~s purpose. Use as a member of the general public is not ta]cen into account for th.ts purpose. As you see, the rule oan be stated succf~ctly, however, ~che interpretal~on can be comp~ed. If you ~ve ~y ~ues~ons rear,nE w~t ~ns~tu~es use ~ a ~rade or bu~ess, or any other aspeo~ of t~ ~le, piece don't hesitate to ~H me. In any even~, ~e bes~ way to proceed is for us [o m~ about ~e spe~c use you p~ to ~e of the proceeds. If you have ~'urt. ber quesl:[ons, please call. $~ncerely,