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HomeMy WebLinkAboutSeptember 25, 2000 RegularCITY OF COLUMBIA HEIGHTS ADMINIS TRA TION September 22, 2000 Mayor Gary L. Peterson Councilmembers John Hunter Donald G. Jolly Marlaine Szurek Julienne Wyckoff City Manager Walter R. Fehst The following is the agenda for the regular meeting of the City Council to be held at 7:00 PM on Monday, September 25, 2000 in the City Council Chambers, City Hall, 590 40th Avenue N.E., Columbia Heights, Minnesota. The City of Columbia Heights does not discriminate on the basis of disability in the admission or access to, or treatment or employment in, its services, programs, or activities. Upon request, accommodation will be provided to allow individuals with disabilities to participate in all City of Columbia Heights' services, programs, and activities. Auxiliary aids for disabled persons are available upon request when the request is made at least 96 hours in advance. Please call the Deputy City Clerk at 706-3611, to make arrangements. (TDD/706-3692 for deaf or hearing impaired only) CALL TO ORDER/ROLL CALL PLEDGE OF ALLEGIANCE ADDITIONS/DELETIONS TO MEETING AGENDA (The Council, upon majority vote of its members, may make additions and deletions to the agenda. These may be items brought to the attention of the Council under the Citizen Forum or items submitted after the agenda preparation deadline.) CONSENT AGENDA (These items arc considered to be routine by the City Council and will be enacted as part of the Consent Agenda by one motion. Items removed from consent agenda approval will be taken up as next order of business.) A0 MOTION: Move to approve Consent Agenda items as follows: 1) Minutes for Approval MOTION: Move to approve the minutes of the September 11, 2000, Regular Council Meeting as presented. MOTION: Move to approve the minutes of the September 13, 2000, Election Canvass Meeting as presented. 2) Establish Ci_ty Council Work Session dates for October, 2000 MOTION: Move to establish Work Session meeting dates for Monday, October 2, 2000 at 7:00 p.m and Monday, October 16, 2000. 3) Authorize purchase of Laptops, Printers, and Software from 2000 School Based Parmership Grant MOTION: Move to approve the purchase of four Toshiba laptop computers from PC Solutions in the amount of $9,966.65 including shipping and tax, and two Hewlett Packard 4500 DN color printers in the amount of $8,401.79 including shipping and tax. Also, move to approve the purchase of Crime View software from Rowekamp Associates in the amount of $17,480.43 including shipping and tax. Funds for these purchases to come from the 1999 School Based Partnerships Grant Fund 279-42100-2011. THE CITY Of COLUMBIA HEIGHTS DOES NOT DISCRIMINATE ON THE BASIS OF DISABILITY IN EMPLOYMENT OR THE PROVISION OF SERVICES EQUAL OPPORTUNITY EMPLOYER City Council Agenda September 25, 2000 Page 2 Se 4) Authorize purchase of laptop computers MOTION: Move to approve the purchase of three laptop computers and three Gamber Johnson computer mounts with screen support for $8,224,98 plus tax; funding for these purchases to come from the 2000 Capital Equipment Fund. 5) Authorize Acceptance of the 2000-2001 Equipment Block Grant MOTION: Move to accept the 2000-2001 Federal Law Enforcement Block Grant in the amount of $21,578 with a 10 per cent match in the amount of $2,398, to come from unexpended funds in the 2000 Police Department general budget. 6) Authorize Agreement for Bad Check Recovery_ MOTION: Move to authorize the Mayor and City Manager to enter into an agreement with CheckRite Recovery Services, Inc. for check collection services. 7) Establish date for Public Special Assessment Levy Hearing MOTION: Move to establish Monday, November 20, 2000, at 7:00 p.m. as the Public Special Assessment Levy Heating to be held in the City Council Chambers. 8) Approve Rental Housing Licenses MOTION: Move to approve the items as listed on the rental housing license agenda for September 25, 2000. 9) Approve Business License Applications MOTION: Move to approve the items as listed on the business license agenda for September 25, 2000. 10) Payment of Bills MOTION: Move to pay the bills as listed out of proper funds. PROCLAMATIONS, PRESENTATIONS, RECOGNITIONS AND GUESTS Bo Proclamations 1. Polish American Heritage Month Presentations Introduction of New Employees 1. Michelle Steichen, Police Department Crime Analyst Recognition 1. Senior Olympic Winners - presentation of plaque - Karen Moeller ( Recognizing all participants) - (and watermelon seed spitter) 2. Girl Scout Troop #1078 - Girl Scout leader, Janet Kendall (Acknowledge primary election night attendance toward their government badge) City Council Agenda September 25, 2000 Page 3 e PUBLIC HEARINGS A. Consideration of Franchise Application MOTION: Move to continue the Public Hearing to consider the franchise applications of Wide Open West and Everest Connections Corporation to Monday, November 27, 2000 at 7:00 p.m. Adopt Resolution 2000-68, being a Resolution approving revocation of the Rental License held by Christopher Decker at 218-220 40~ Avenue NE. RECOMMENDED MOTION: Move to waive the reading of Resolution No.2000-68, there being ample copies available to the public. RECOMMENDED MOTION: Move to adopt Resolution No. 2000-68, Resolution of the City Council of the City of Columbia Heights Approving Revocation Pursuant to Ordinance Code Section 5A.408(1) of the Rental License held by Christopher Decker Regarding Rental Property at 218-220 42nd Avenue NE. Co Second Reading to Adopt Ordinance No. 1419, Being an Ordinance Amending Ordinance 853, Ci_ty Code of 1977, pertaining to the amendment of certain sections of the licensing requirements of the City MOTION: Move to waive the reading of Ordinance No. 1419, there being ample copies available for the public. MOTION: Move to adopt Ordinance No. 1419, being an Ordinance amending Ordinance #853, City Code of 1977, pertaining to the amendment of certain sections of the licensing requirements of the City. Approve Modified Redevelopment Plan for CBD Redevelopment Project and TIF Plan for TIF District (Redevelopment) No. 9 MOTION: Move to table the Public Hearing for continuance at a future meeting. ALTERNATE MOTION: Move to waive the reading of Resolution 2000-67, there being ample copies available to the public. ALTERNATE MOTION: Move to adopt Resolution 2000-67, being a Resolution Approving a Modified Redevelopment Plan for the Central Business District Redevelopment Project and a Tax Increment Financing Plan for Tax Increment Financing District (Redevelopment) No. 9 - the Transition Block Redevelopment Project for Crest View/Real Estate Equities. First reading to Adopt Ordinance #1420 being an Ordinance amending Ordinance No. 853, City Code of 1977, Authorization to Convey Certain Real Estate located at 4101 and 4103 Central Avenue NE and Approve Conflict of Interest Disclosure Statement MOTION: Move to waive the reading of Ordinance #1420, there being ample copies available to the public. MOTION: Move to schedule the second reading of Ordinance #1420, being an Ordinance amending Ordinance No. 853, City Code of 1977, Authorization to Convey Certain Real Estate located at 4101 and 4103 Central Avenue NE, for October 9, 2000 at 7:00 p.m. and to authorize the Mayor and City Manager to sign the Conflict of Interest Disclosure Statement. The Mayor and City Council also direct the City Manager to retain the law firm of Kennedy and Graven Chartered to review the Real Estate Contract on behalf of the City. City Council Agenda September 25, 2000 Page 4 e ITEMS FOR CONSIDERATION A. Other Ordinances and Resolutions B. Bid Considerations C. Other Business Approval of Preliminary Development Agreement for Transition Block Redevelopment Project MOTION: Move to approve the Preliminary Development Agreement by and among the City of Columbia Heights and Columbia Heights Economic Development Authority and Columbia Heights Transition Block, LLC: and furthermore, to authorize the Mayor and City Manager to enter into an agreement for the same. ADMINISTRATIVE REPORTS A. Report of the City Manager B. Report of the City Attorney e GENERAL COUNCIL COMMUNICATIONS A. Minutes of Boards and Commissions 1) Meeting of the September 5, 2000 Library Board of Trustees 2) Meeting of the August 28, 2000 Economic Development Authority (Special) 10. CITIZENS FORUM (At this time, citizens have an opportunity to discuss with the Council items not on the regular agenda. The citizen is requested to limit their comments to five minutes. Please note, the public may address the Council regarding specific agenda items at the time the item is being discussed.) 11. ADJOURNMENT Wa~ter R. FehstfC~ty Manager WF/pm OFFICIAL PROCEEDINGS COLUMBIA HEIGHTS CITY COUNCIL REGULAR COUNCIL MEETING SEPTEMBER 11, 2000 CALL TO ORDER/ROLL CALL The regular meeting of the City Council was called to order at 7:00 p.m. on Monday, September 11, 2000 in the City Council Chambers, City Hall, 590 40th Avenue N.E., Columbia Heights, Minnesota. Present: Mayor Peterson, Councilmember Jolly, Councilmember Wyckoff, Councilmember Hunter Absent: Councilmember Szurek, 2. PLEDGE OF ALLEGIANCE 3. ADDITIONS/DELETIONS TO MEETING AGENDA Hunter questioned what the final figure for Item #9from the last meeting regarding clean up of a home on Jackson Street authorizing up to $17, 900for clean up was. Staff was still not sure. 4. CONSENT AGENDA mo MOTION by Hunter, second by Wyckoff, to approve Consent Agenda items as follows: 1) Minutes for Approval Motion to approve the minutes of the August 28, 2000, Regular Council Meeting as presented. 2) Approve transfer of Funds to Repay Overtime Fund Motion to transfer $3,016, the total amount received from Northeast Bank, Columbia Heights Independent School District #13, and the Unique Thrift Store for off-duty security worked, from the General Fund to the Police Department 2000 budget under line #1020, police overtime. 3) Authorize Sale, Salvage, or Disposal of Surplus City Vehicles Motion to authorize the sale, salvage, or disposal of the attached listing of surplus City vehicles at the Hennepin County auction to be held on September 16, 2000. Fehst stated the City auction last Saturday netted $18,014. The City will attempt to sell vehicles at the Hennepin County Auction. Police Chief Tom Johnson indicated the number of people attending was lower than usual, and people did ask if any vehicles would be sold. Fehst stated that a large amount of staff time is involved to hold this event and suggested possibly holding the event every other year or to join with the City of Fridley for a joint auction. 4) Accept donation of vehicle to the Fire Department Motion to accept the donation of a junk vehicle from Ed Carlson for training use. Fehst stated that former Mayor, Ed Carlson, will donate a vehicle for the Fire Department to use for extraction training. 5) Accept donation of funds to assist in construction of a "Welcome" monument Motion to accept the donation from the Chamber of Commerce Transition Committee toward an entrance sign into the City of Columbia Heights, and the commitment to incorporate a suitable business salutation. City Council Minutes September 11, 2000 Page 2 Fehst stated that the welcome sign at 37tn and Central Avenue is 90percent complete. The former Columbia Heights Chamber of Commerce will donate $8-9,000, for an entrance sign into the City, requesting some recognition of appreciation to our business community. This sign will be placed at the north end of our community. 6) Adopt Resolution No. 2000-58, being a resolution opposing the concept of allowing further proliferation of Liquor sales from dispensaries other than duly authorized off- sale liquor stores Fehst stated this is a request by the League of MN Cities to enact a resolution opposing an attempt to sell beer and wine in grocery sales. Staff felt this may increase alcohol sales to minors, and our current municipal liquor revenue would be affected. Motion to waive the reading of Resolution No. 2000-58, there being ample copies available to the public. Motion to adopt Resolution 2000-58 being a resolution opposing the concept of allowing further proliferation of liquor sales from dispensaries other than duly authorized off-sale liquor stores. RESOLUTION NO. 2000-58 A RESOLUTION OPPOSING THE CONCEPT OF ALLOWING FURTHF, R PROLIFERATION OF LIQUOR SALES FROM DISPENSARIES OTltER THAN DULY AUTHORIZED OFF-SALE LIQUOR STORES WHEREAS the sale of 3.2 beer by convenience stores, grocery stores, gas stations, and other associated retail outlets for off premise consumption is currently allowed under Minnesota law, and WHEREAS the check out clerks at the aforementioned types of retail outlets do not specialize in liquor sales and they are not generally trained to recognize fake identification or in other alcohol management techniques normally required for the employees of duly authorized off-sale liquor dispensaries, and WHEREAS there is a proposal before the Minnesota Legislature that, if adopted and made law, would allow convenience stores, grocery stores, gas stations, and other similar retail outlets to sell wine including sweet "pop" wines, wine coolers, and associated products for offpremise consumption, and WHEREAS the City of Columbia Heights is endeavoring to curtail youth access to alcohol and tobacco products, and WHEREAS the proliferation of the types of outlets where the sale of alcohol provides additional opportunities for youth to have access to alcohol, now, therefore, be it RESOLVED by the City Council of the City of Columbia Heights that they hereby oppose the concept of allowing the further proliferation of liquor sales from dispensaries other than duly authorized off-sale liquor stores. Adopted this Offered by: Seconded by: 11tb day of September 2000. Hunter Wyckoff City Council Minutes September 11, 2000 Page 3 Roll Call: All ayes Mayor Gary L. Peterson Patricia Muscovitz, Deputy City Clerk 7) Authorize agreement to pave rear Murzyn Hall parking lot and driveway out to Mill Street Motion to authorize Mayor and City Manager to enter into an agreement with ACI Asphalt Contractors, Inc. and to award the bid for paving of Murzyn Hall rear parking lot and driveway on the west side of the building for the total amount of$41,115, with funds being appropriated from the Murzyn Hall and Recreation budget. 8) Acceptance of NSP Street Lighting Proposal for Mill Street Motion to accept the proposal from NSP for total system takeover of the Mill Street lighting system at an estimated cost of $9,800, with funding appropriated from 101- 43160-4000. Fehst stated this upgrade is to pass the NSP minimum requirements before NSP will take over maintenance of the Mill Street light poles. 9) Acceptance of Proposal for Property Acquisition and Relocation Services as recommended in the 1999 Storm Water Study Motion to accept proposal from Wilson Development Services in the amount of $4,800; and, authorize the Mayor and City Manager to enter into a contract for the same. Project costs will be allocated to each address which has been assigned an individual project number for tracking. Fehst stated these recommendations were made by the consultant for areas where there are major water problems. 10) Authorize payment to US West for repair of damaged cable at 40® and Central Avenue Motion to authorize payment to US West for repair of damaged cable at 40th Avenue and Central in the amount of $4,182.06, with funding appropriated from Fund #601- 49430-4000. Fehst gave the background of this situation which ended in a broken cable. Jolly stated this company is now called Qwest. 11) Final payment for Sullivan Lake Sanitary_ Sewer Improvement Project No. 9722 Motion to accept the work for Sullivan Lake Sanitary Sewer Improvement Project (Project No. 9722); and, authorize final payment of $4,507.11 to Penn Contracting Inc. Fehst stated this is the final payment for moving the lift station and sewer line. 12) Approve Agreement No. 80793M with Mn/DOT for internally lit traffic control signals on TH 47 Motion to waive Resolution No. 2000-65, there being ample copies available to the public. Motion to approve Resolution No. 2000-65, authorizing agreement No. 80793M with City Council Minutes September 11, 2000 Page 4 Minnesota Department of Transportation for installation of intemally lit signs at the existing traffic control signals on Trunk Highway 47; and, furthermore, to authorize the Mayor and City Manager to enter into an agreement for the same. RESOLUTION NO. 2000-65 AUTHORIZING AGREEMENT NO. 80793M WITH MINNESOTA DEPARTMENT OF TRANSPORTATION FOR INSTALLATION OF INTERNALLY LIT SIGNS AT THE EXISTING TRAFFIC CONTROL SIGNALS ON TRUNK HIGHWAY 47 WHEREAS, the City of Columbia Heights proposes to provide internally lit signs at the existing traffic controls signals and, WHEREAS, the improvements will benefit both the City of Columbia Heights and the Minnesota Department of Transportation. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Columbia Heights to enter into an agreement with the State of Minnesota, Department of Transportation for the following purposes, to wit: To provide maintenance and electrical energy for the new intemally illuminated signs at the existing traffic control signals on Trunk Highway No. 47 (University Avenue) at 37th Avenue Northeast, at County State Aid Highway No. 2 (40th Avenue Northeast), at 44th Avenue Northeast, and at County State Aid Highway No. 4 (49th Avenue Northeast) - County Road 104 (49th Avenue Northeast) in accordance with the terms and conditions set forth and contained in Agreement No. 80793M, a copy of which was before the Council. BE IT FURTHER RESOLVED that the proper City officers be and hereby are authorized to execute such agreement and any amendments, and thereby assume for and on behalf of the City all of the contractual obligations contained therein. Dated this 1 lth day of September, 2000 Offered by: Hunter Seconded by: Wyckoff Roll Call: All ayes Mayor Gary L. Peterson Patricia Muscovitz, Deputy City Clerk 13) Adopt Resolution 2000-62, being a resolution designating a change in the Zone 5 boundary_ of the street rehabilitation program to include Jackson Pond area. Fehst indicated that improvements are to help assure residents we are doing all we can to control water problems and to fix the fence around the pond. Motion to wave the reading of Resolution No. 2000-62, there being ample copies available to the public. Motion to adopt Resolution No. 2000-62, approving a change in Zone 5 Street Rehabilitation boundary to add the following area: Quincy Street to Central Avenue City Council Minutes September 11, 2000 Page 5 north of 41 st Avenue and to include fencing replacement at Jackson Pond in the Zone 5 Street Rehabilitation Program. RESOLUTION NO. 2000-62 BEING A RESOLUTION DESIGNATING A CHANGE IN ZONE 5 BOUNDARY OF STREET REHABILITATION PROGRAM TO INCLUDE JACKSON POND AREA WHEREAS, the City of Columbia Heights is in the process of evaluating streets in Zone 5 of the annual Street Rehabilitation Program, and WHEREAS, the City Council of Columbia Heights, at its May 8, 2000, meeting was directed to prepare plans for the replacement of the fencing surrounding Jackson Pond, and WHEREAS, the City of Columbia Heights has determined that street improvements will impact sewer systems in the area and impact Jackson Pond fencing, BE IT RESOLVED THAT the City of Columbia Heights determines that a Change in Zone 5 Boundary of Street Rehabilitation Program be authorized, adding the Jackson Pond area to the Zone 5 area and incorporating the fencing with the same street improvements. NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF COLUMBIA HEIGHTS, MINNESOTA: That said designation of the boundary in Zone 5 of Street Rehabilitation Program be changed to include Quincy Street to Central Avenue north of 41 st Avenue and to include fencing replacement at Jackson Pond in the Zone 5 Street Rehabilitation Program. Dated this 11th day of September, 2000. Offered by: Hunter Seconded by: Wyckoff Roll Call: All ayes Mayor Gary L. Peterson Patricia Muscovitz, Deputy City Clerk 14) Approve Variance Request for St. Timothy's Lutheran Church, 825 51st Ave NE. Motion to recommend approval of case # 2000-0923 for a twenty (20) foot variance request for a freestanding ground sign for St. Timothy's Lutheran Church at 825 51st Avenue NE, as a hardship exists for placement of the proposed sign, and the proposal is in keeping with the spirit and intent of the ordinance. 15) Approve Conditional Use Permit Case #2000-922, at 5101 University Avenue NE Motion to recommend approval of case # 2000-0922 for a Conditional Use Permit for Jeffery Bauer and 30 Minute Auto Service, 5101 University Avenue NE to allow for auto repair and used vehicle sales to continue, subject to the following conditions: 1. All required state and local codes, permits, licenses and inspections will be met and in full compliance. 2. All screening requirements of the Zoning Ordinance for fencing and trash enclosure shall be in compliance. City Council Minutes September 11, 2000 Page 6 Used vehicle sales shall be limited to a maximum of ten (10) vehicles, and vehicle signage must be displayed within vehicles at all times. 16) Approve Conditional Use Permit Case #2000-0925, at 5050 Central Avenue NE Motion to recommend approval of case # 2000-0925 for a Conditional Use Permit to allow for the operation of a Wendy's Restaurant at 5050 Central Avenue NE, subject to the following conditions: 1. All required state and local codes, permits, licenses and inspections will be met and in full compliance. 2. All proposed signage must be submitted on the City prescribed application form and must fully comply with the Zoning Ordinance. 3. Solid waste material shall be so located and fenced as to be removed from public view and shall be kept in an enclosed building or properly contained in a closed container for such purposes. 4. The cedar fence on the rear of the property shall be rebuilt or replaced to maintain separation from residential properties to buffer from noise and maintain aesthetics. Fehst stated this is the old Boston Market, and this site was next to the original Wendy's. 17) Adopt Resolution 2000-61, being a resolution adopting the 2001 Business License Fee Schedule as presented Motion to waive the reading of Resolution No. 2000-61, there being ample copies available to the public. Motion to approve Resolution 2000-61, being a resolution adopting the 2001 Business License Fee Schedule as presented. RESOLUTION NO. #2000-61 ADOPTING 2001 BUSINESS LICENSE FEE SCHEDULE WHEREAS: Ordinance No. 853, City Code of 1977, pertaining to commercial licensing regulations provides for the establishing of annual license fees; and WHEREAS: The City has participated in a survey of metropolitan municipalities regarding business license fees charged by other communities; and WHEREAS: The City is attempting to maintain business license fees which are comparable to other communities; and WHEREAS: The City annually reviews its business license fee schedule; NOW, THEREFORE, BE IT RESOLVED that the attached proposed license fee schedule be adopted and effective January 1, 2001. Passed this 1 lth day of September, 2000. Offered by: Hunter Seconded by: Wyckoff City Council Minutes September 11, 2000 Page 7 Roll Call: All ayes Mayor Gary L. Peterson Patricia Muscovitz, Deputy City Clerk 2001 BUSINESS LICENSE FEES Effective January 1, 2001 through December 31, 2001. CATEGORY Amusement Centers/Arcades ($5,000 Bond/S100 Inv. Fee) (PD) FEES $5OO ARTICLE IV SECTION Auto Recycling Dealer/Yard ($1000 Bond) PD,FD, ZA $5O0 II 2 Beer Sales (PD, BI, FI) On Sale ($150 Inv. Fee 1st time appl.) Off Sale ($150 Inv. Fee 1st time appl.) Temporary Beer (per day basis) ($500 Appl. Fee; $150 Investigation Fee) $400 $150 $100 V Carnivals ($500 deposit & insurance) (PD) $50/day V Christmas Tree Sales (FI) (P&Z Comm) ($200 Clean-up Deposit) $50 II 6 Cigarettes/Tobacco Sales (S&H) $200 III 2 Contractors (Bond and Insurance) General (if not licensed by State) Blacktop Excavator Masonry/Concrete Moving Demolition Plaster/Stucco Heating/Cooling Gas Piping Plumbing Sign Installation $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 IV Courtesy Benches (Insurance)(Eng. Dept.) $25/each VI Games Of Skill (PD) Plus $15/Location $15/machine IV 4 Kennels, Commercial (PD) Plus, per cage $50 $10 VI 9 City Council Minutes September 11, 2000 Page 8 CATEGORY Liquor Sales (PD, FI, BI) Class A (Inv. Fee $500-$2000) Class B (Inv. Fee $500-$2000) Class C (Inv. Fee $500-$2000) Class D (Inv. Fee $500-$2000) Class E (Inv. Fee $500-$2000) On Sale Wine (Inv. Fee $500-$2000) Sunday Liquor Sales Temporary On Sale (Inv. Fee $500-$2000) Club On Sale Liquor (Inv. Fee$500-$2000) up to 200 members 201 to 500 members 501 to 1,000 members 1,001 to 2,000 members 2,001 to 4,000 members 4,001 to 6,000 members Over 6,000 members Massage Therapist Business (PD,ZA) ($250 Investigation Fee) Massage Therapy, Individual (PD, ZA) ($250 Investigation Fee) Motor Vehicle Fuel Dispensing Stations (FI) First Metering Device Each Add'l. Metering Device L.P. Gas Per Metering Device Motor Vehicle Rental/Leasing (ZA) A. New Application B. Renewal Application Motor Vehicle Sales (New & Used) (PD) Multiple Dwellings (FI,BI) First 3-4 Units Each Additional Unit Over 4 Re-Inspection Fee for Code Compliance Pawnbroker ($5,000 Bond/$100 Inv. Fee) (PD) Pet Shop (PD)(Humane Officer) FEES ARTICLE SECTION $8,000 $6,500 V $6,500 V $8,OOO V $5,500 V $2,OOO V $200 V $100/day Per membership V $ 300 $ 500 $ 65O $ 8OO $1,000 $2,000 $3,000 3 3 3 3 5 6 3 $500 V 12 $100 V 12 II $5O $10 $5O VI $75 $5O 4 $200 II 7 VI $ 50 $ 5 $ 70 $12,000 II 6 $50 VI 9 PoolfBilliard Hall ($100 Inv. Fee) (PD) $100 IV 2 City Council Minutes September 11, 2000 Page 9 CATEGORY Popcorn, Candy, Food Catering Vehicles (PD) (Insurance - Public & Vehicle Liability) FEES $5O ARTICLE VI SECTION 6 Precious Metal Dealers ($5,000 Bond)(PD) ($100 Investigation Fee) New Applicant Renewal $3OO $200 VI 2 Rental Housing Licenses Single Family & Duplex (Per Unit Basis) Re-Inspection Fee $15 $5O VI Secondhand Merchant Business ($5,000 Bond) $100 (Investigation Fee $100) (PD, FI, BI) Exhibition/Convention/Shows/Expositions ($5,000 Bond) First Day $50 Each Additional Day $10 II II 4 4 Sexually Oriented/Adult Business (PD,FI,ZA, AC) (Investigation Fee $500-$10,000) $10,000 V Taxicab Driver (PD) $25 VI 3 Taxicab Vehicle (PD) $75 VI 3 Transient Merchant/Peddlers (PD) A. Itinerant Hawker/Peddler B. Transient Merchant II $50/day; $100/mo.; $500/yr. $50/day; $100/mo.; $500/yr. 3 Tree Removal & Treatment (Ins.) (PWD) $50 VI 10 LATE PENALTY ON ALL ANNUALLY RENEWABLE FEES 1 - 15 DAYS LATE 16-30 DAYS LATE OVER 30 DAYS LATE 25% PENALTY OVER ORIGINAL FEE 50% PENALTY OVER ORIGINAL FEE LEGAL PROCEDURES BEGUN. PD BI ZA DEPARTMENTS RESPONSIBLE FOR APPROVAL OF LICENSE Police Department Building Inspector Safety and Health Inspector Zoning Administrator FI - Fire Department PWD - Public Works Dpt S&H CF - City Forester AC - Anoka County All New Licenses Must Have Zoning Administrator's Approval 18) Establish Heating Dates Re: License Revocation or Suspension of Rental Properties at 218-220 40th Avenue NE. Motion to Establish a Hearing Date of September 25, 2000 for Revocation or City Council Minutes September 11, 2000 Page 10 Suspension of a License to Operate a Rental Property within the City of Columbia Heights against Christopher Decker at 218-220 40th Avenue NE. 19) Approve License Applications Motion to approve the items as listed on the business license agenda for September 11, 2000. 2o) Payment of Bills Motion to pay the bills as listed out of proper funds. Regarding item #10, Hunter asked if we have a poHcy in place to contact Gopher State. Hansen indicated the oversight was ours and a policy is in place. This type incident should never come up again. Fehst stated we will check to see if our insurance will pay for this. Wyckoff explained pros and cons to Item #6, liquor sales in grocery stores. Wyckoff indicated, on Item #9, two of the three property owners have agreed to sell. The homes will be removed and landscaped to look nice, and this should protect the properties around these homes. All ayes. Motion carried. PROCLAMATIONS, PRESENTATIONS, RECOGNITIONS AND GUESTS A. Proclamations B. Presentations C. Introduction of New Employees 1. Michelle Steichen, Police Department Research Analyst Chief Johnson indicated Ms. Steichen was not present. She will attend the next meeting. Do 2. Paula Haynus, Part Time Recreation Clerk Karen Moeller, Sr. Citizen Coordinator, introduced Paula Hynus hired to serve in a part- time capacity as secretary/receptionist. Paula thanked the City Council for this opportunity. Recognition PUBLIC HEARINGS A. Public Heating Regarding the Revocation or Suspension of the Rental License held by Michael Johnson at 4919-4921 Jackson Street NE. Motion to Close the Public Heating Regarding the Revocation or Suspension of the Rental License Held by Michael Johnson Regarding Rental Property at 4919-4921 Jackson Street in that the Property is in Compliance with the Housing Maintenance Code. Mayor Peterson closed the public hearing as the property is in compliance with Code. Bo Public Heating Regarding the Revocation or Suspension of the Rental License held by Myma Bourcy at 1132 40th Avenue NE Motion to Close the Public Hearing Regarding the Revocation or Suspension of the Rental License Held by Myma Bourcy Regarding Rental Property at 1132 40th Avenue in that the Property is in Compliance with the Housing Maintenance Code. Mayor Peterson closed the public hearing as the property is in compliance with Code C. First Reading of Ordinance No. 1419, Being an Ordinance Amending Ordinance 853, City City Council Minutes September 11, 2000 Page 11 Code of 1977. Ken Anderson, Community Development Director, indicated the City Attorney, Police Chief, and Licensing Clerk have reviewed our City Code pertaining to beer, wine and liquor licensing, and compared our Code to eleven other communities. Areas addressed include: Distances from schools/day cares (300 feeO, percentage of food to liquor sales (60%), and minimum seating numbers (150). Other areas of the Code were cleaned up and consolidated. Staff asked to set second public hearing date. MOTION by Jolly, second by Hunter, to waive the reading of Ordinance No. 1419, there being ample copies available for the public. All ayes. Motion carried. MOTION by Jolly, second by Hunter, to schedule a second reading of Ordinance No. 1419, being an ordinance amending Ordinance # 853, City Code of 1977, pertaining to the amendment of certain sections of the licensing requirements of the city for September 25, 2000 at 7:00 p.m. All ayes. Motion carried. (Proposed Ordinance #1419 attached to the end of these minutes) D. Request for setback variance for 3711 Van Buren Street NE E. Request for height variance for 3711 Van Buren Street NE Ken Anderson, Community Development Director, indicated the Planning and Zoning Commission heard two variance requests for 3711 Van Buren Street. The first application requested a set back tol 5 feet, on which the Commission determined the topography was a hardship, and recommended approval. Anderson indicated the second request was for afire-foot height variance, as the applicant requests storage on the second level of the garage in a barn type structure. The Planning and Zoning Commission could not determine a hardship and recommended denial. Anderson had photos available. Tom Ramsdell, Chairman of the Planning and Zoning Commission stated rafters could be built to match the house. There are similar structures in the neighborhood which were approved when the height limit was 18feet. The current height limit is 15feet. Ramsdell questioned the City Attorney regarding granting a variance without establishing a hardship. Jim Hoefi, City Attorney, indicated the Planning and Zoning Commission has to work within the guidelines that are in place and concurred with staff's recommendation. Jim Stoss and Wendy Howell, 3711 Van Buren, handed out additional pictures and drawings. Ms. Howell indicated the additional height would better match their home. She stated their neighbors garage is 22feet high and their request is for a 19-foot garage. In discussion Council agreed this would not be a problem in this area, but that the ordinance must be followed. Peterson indicated Council should address the ordinance. Wyckoff questioned future consequences if this variance were granted. Hoefi explained future possible repercussions. Mr. Stoss indicated he does not want to change the pitch of the roof. Peterson asked the timeframe to look at and possibly change the ordinance to allow for such instances. Hoeft estimated at least two months before a change could be approved. Jolly was concerned with rewriting an ordinance to allow changes for one property. City Council Minutes September 11, 2000 Page 12 Bruce Nawrocki, 1255 Polk Place sympathized, but agreed with the attorney and stated there is no legal hardship. MOTION by Wyckoff, second by Hunter, to approve a five (5) foot setback variance request to construct a 24 foot by 26 foot detached garage facing the alley at 3711 Van Buren Street NE due to topographic hardship, and the proposal is in keeping with the spirit and intent of the ordinance. All ayes. Motion carried. MOTION by Jolly, second by Hunter, to deny a four (4) foot height variance request to construct a 24 foot by 26 foot detached garage at 3711 Van Buren Street NE due to lack of hardship, as the owners could build a garage to meet the requirements. Ms. Howell asked that the City Council table their variance request until the ordinance has been looked at or changed. doily withdrew his motion. Hunter withdrew his second. MOTION by Jolly, second by Hunter, to table the height variance request for 3711 Van Buren Street NE for 60 days. Upon vote: Ayes-Jolly, Wyckoff, Hunter, Peterson. Motion carried. ITEMS FOR CONSIDERATION A. Other Ordinances and Resolutions 1. Adopt Resolution No. 2000-60, being a resolution adopting a proposed budget, setting the City, EDA, and HRA proposed local levy, and establishing a budget hearing date for property taxes payable in 2001. Peterson stated the correct resolution number is 2000-60. Fehst gave the proposed levy amounts and suggested a date for the hearing. He listed the EDA levy amounts and stated it will be the same as last year. Bill Elrite, Finance Director, indicated the State Legislature has expanded the steps to adopt a levy and budget, to insure residents get more complete information. State regulations now require adopting a preliminary budget~levy and certifying this to the county so they can determine what impact this will have on residents. An acknowledgment would be received in October of the realization of tax increase and notices of the Truth and Taxation meeting letters wouM be sent to residents in November indicating the hearing date of December 4th. Elrite stated the budget process starts with the department level to determine their needs to cover operational costs. The City Manager and Finance Director then determine what tax level is needed. Wyckoff reminded residents taxes contain three parts, City, County, and the School District. The City only receives 25 percent of taxes paid. Bruck Nawrocki strongly opposed the 10% levy increase, even if this is the maximum amount that can be used and that this can be reduced. He gave comparisons to other communities, and discussed the tax rate including the library levy. He urged Council to not approve the levy as requested. Wyckoff indicated that other communities with a lower levy have a heavy industrial tax base, and that this 10% increase wouM only be on the 25%portion of taxes the City receives. City Council Minutes September 11, 2000 Page 13 MOTION by Hunter, second by Wyckoff, to waive the reading of Resolution No. 2000-60, there being ample copies available to the public. All. ayes. Motion carried. MOTION by Hunter, second by Wyckoff, to adopt Resolution 2000-60 being a resolution adopting a proposed budget, setting the City, HRA and EDA proposed local levy, and establishing a budget hearing date for property taxes payable in 2001 with the total HRA levy set at $94,752, the City, Library and EDA levy set at $3,625,552, and the Truth in Taxation heating date of December 4, 2000 at 7:00 p.m. in the City Council Chambers. All ayes. Motion carried. MOTION by Jolly, second by Hunter, to schedule the budget review meeting with the Library Board and the City Council for Tuesday, October 3rd, at 7:00 p.m. in the Library Board room, and schedule the City Council budget review meeting with the Park and Recreation Commission for Wednesday, October 25th, at 7:00 p.m. in the Gauvitte Room at Murzyn Hall. All ayes. Motion carried. RESOLUTION 2000-60 RESOLUTION OF THE CITY COUNCIL FOR THE CITY OF COLUMBIA HEIGHTS, MN ADOPTING A PROPOSED BUDGET FOR THE YEAR 2001, AND SETTING THE PROPOSED TOTAL CITY LEVY COLLECTABLE FOR THE YEAR 2001 AND APPROVE THE HRA LEVY OF $94,752 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL FOR THE CITY OF COLUMBIA HEIGHTS, MINNESOTA: that the following is hereby adopted by the City of Columbia Heights. Section A. The proposed budget for the City of Columbia Heights for the year 2001 is hereby approved and adopted with appropriations for each of the funds listed below. General Fund Community Development Fund Economic Development Fund State Aid Cable Television Library DARE Project Capital Improvement Infrastructure Capital Equipment Replacement Funds Central Garage Fund Liquor Water Utility Fund Sewer Utility Fund Refuse Fund Storm Sewer Fund Energy Management Data Processing Police/Fire Contingencies Reserve Debt Service Fund Total Expense Including Interfund Transfers Expense 8,216,490 307,762 119,045 68,100 192,399 597,234 8,825 1,991,300 0 473,537 430,893 1,102,097 1,430,297 1,245,261 1,491,610 324,212 0 274,732 0 2,129,220 20,403,014 Section B. The estimated gross revenue to fund the budget of the City of Columbia Heights for all funds, including general ad valorem tax levies and use of fund balances, as hereinafter set forth for the year 2001: City Council Minutes September 11, 2000 Page 14 General Fund Community Development Fund Economic Development Fund State Aid Cable Television Library DARE Project Capital Improvement Infrastructure Capital Equipment Replacement Funds Central Garage Fund Liquor Water Utility Fund Sewer Utility Fund Refuse Fund Storm Sewer Fund Energy Management Data Processing Police/Fire Contingencies Reserve Debt Service Fund Total Revenue Including Interfund Transfers Revenue 8,216,490 307,762 119,045 68,100 192,399 597,234 8,825 1,991,300 0 473,537 430,893 1,102,097 1,430,297 1,245,261 1,491,610 324,212 0 274,732 0 2,129,220 20,403,014 Section C. The following proposed sums of money are levied for the current year, collectable in 2001, upon the taxable property in said City of Columbia Heights, for the following purposes: Estimated Area-Wide Estimated General and Library Fund Levy Estimated EDA Fund Levy 1,000,000 2,506,257 119,295 Total Proposed Levy 3,625,552 Section D. The City Council of the City of Columbia Heights hereby approves the Housing and Redevelopment Authority Tax Levy for the fiscal year 2001 in the amount of $94,752. BE IT FURTHER RESOLVED BY THE CITY COUNCIL FOR THE CITY OF COLUMBIA HEIGHTS, MINNESOTA: That the budget hearing is scheduled for December 4th at 7:00 pm in the City Council Chambers. The City Clerk is hereby instructed to transmit a certified copy of this resolution to the County Auditor of Anoka County, Minnesota. Approved this 11th day of September 2000. Offered by: Hunter Seconded by: Wyckoff Roll Call: All ayes. Gary L. Peterson, Mayor Patricia Muscovitz, Deputy City Clerk City Council Minutes September 11, 2000 Page 15 B. Bid Considerations 1. Resolution accepting bids and awarding the contract for MSC Concrete Floor Repairs and Coating Kevin Hansen, Public Works Director, stated the contract is to repair the Municipal Service Center concrete floor. The floor repair is on a five year cycle, and scheduled for this time. The bids were higher than budgeted for, but include the concrete repair and coating. Hansen stated testing has been done to identify areas that need repair. Hansen indicated repairs are required to the top surface and also the bottom of the second floor level. MOTION by Jolly, second by Wyckoff, to waive the reading of Resolution 2000-64, there being ample copies available to the public. All ayes. Motion carried. MOTION by Jolly, second by Wyckoff, to approve and adopt Resolution No. 2000-64 accepting bids and awarding the MSC Concrete Floor Repairs and Coating to TMI Coatings, Inc. of St. Paul, Minnesota, in the amount of $24,980.00 based upon their low qualified responsible bid; and, furthermore, to authorize the Mayor and City Manager to enter into an agreement for the same. All ayes. Motion carried. RESOLUTION NO. 2000-64 RESOLUTION ACCEPTING BID AND AWARDING CONTRACT FOR 2000 CONCRETE FLOOR REPAIRS AND COATING PROJECT NO. 0016 WHEREAS, pursuant to an advertisement for bids for 2000 Concrete Repairs and Coating Project No. 0016, bids were received, opened and tabulated according to law. The following bids were received complying with the advertisement: Bidder TMI Coatings, Inc. Pro Maintenance Floors Northwest Inc. Base Bid $24,980 $26,018 Notread, no Bid Bond WHEREAS, it appears that TMI Coatings, Inc., 2805 Dodd Road, St. Paul, Minnesota, is the lowest responsible bidder, NOW 1. o o THEREFORE BE IT RESOLVED by the City Council of Columbia Heights, Minnesota: The Mayor and Clerk are hereby authorized and directed to enter into a contract with TMI Coatings, Inc. in the name of the City of Columbia Heights for 2000 Concrete Repairs and Coating, Project No. 0016, according to plans and specifications therefore approved by the Council. The City Engineer is hereby authorized and directed to return, forthwith, to all bidders, the deposits made with their bids except the deposit of the successful bidder and the next lower bidder shall be retained until the contract has been signed. City Project #0016 shall be funded with approximately 100% City funds. Dated this 11th day of September, 2000. Offered by: Jolly Seconded by: Wyckoff Roll Call: All ayes Mayor Gary L. Peterson Patricia Muscovitz, Deputy City Clerk City Council Minutes September 11, 2000 Page 16 2. Rejection of Bids for the Central Avenue B acklit Street Signs CP 1999-20 Hansen recommended rejecting bids for the backlit street signs as one bid was about 30percent over the estimated cost. The contract will be rebid in 2001. MOTION by Hunter, second by Wyckoff, to wave the reading of Resolution No. 2000-63, there being ample copies available to the public. All ayes. Motion carried. MOTION by Hunter, second by Wyckoff, to consider Resolution No. 2000-63 for 2000 Improvement Program Project No. 1999-20 to reject the bid received and to add the project to the Central Avenue Street, Utility and Streetscaping Project No. 9912. All ayes. Motion carried. RESOLUTION NO. 2000-63 RESOLUTION REJECTING THE BIDS FOR THE 2000 IMPROVEMENT PROGRAM CITY PROJECT NO. 1999-20 UNIVERSITY AVENUE INTERNALLY LIT SIGNS WHEREAS, the Council ordered the bidding for the 2000 Improvement Program: City Project No. 1999- 20, and WHEREAS, a formal bid opening was held on August 15, 2000, at 10 a.m., and WHEREAS, a single bid was received, and WHEREAS, the lowest bidder's bid is 29 percent over the Engineer's Estimate NOW THEREFORE BE IT RESOLVED THAT: The 2000 Improvement Program Project No. 1999- 20 bids received August 15, 2000, be rejected and staff be directed to add the project to the Central Avenue Street Utility and Streetscaping Project, 1999-12, to be bid in 2001. Adopted by the City Council of Columbia Heights this 11th day of September, 2000. Offered by: Hunter Seconded by: Wyckoff Roll Call: All ayes Mayor Gary L. Peterson Patficia Muscovitz, Deputy City Clerk C. Other Business - None 8. ADMINISTRATIVE REPORTS A. Report of the City Manager Fehst indicated the Mayor received a letter requesting a trash container at the new bus shelter, and this will be done. Fehst asked the Public Works Director Hansen to look trash containers for Central Avenue that wouM add to the attractiveness. Fehst indicated staff has met with HUD to transfer Section 8 to Metro HRA. They request the transfer take place October 1st, and staff is now preparing letters to acknowledge all previous agreements. Fehst stated staff has met with NEI, and Real Estate Equities toward a final agreement. He contacted Ms. City Council Minutes September 11, 2000 Page 17 Soukup and indicated the agreement to purchase the Ostrander property has significantly moved forward. Final stages and agreements will be discussed at the next EDA meeting. Bo Report of the City Attorney Nothing to Report. e GENERAL COUNCIL COMMUNICATIONS A. Minutes of Boards and Commissions 1. Meeting of the September 5, 2000 Planning and Zoning Commission 10. CITIZENS FORUM (At this time, citizens have an opportunity to discuss with the Council items not on the regular agenda. The citizen is requested to limit their comments to five minutes. Please note, the public may address the Council regarding specific agenda items at the time the item is being discussed.) Wyckoff stated on Monday Sept 16tn the new bus routes would go into effect and the transit hub will be opened. Wyckoff asked for new bus schedules to be available at City Hall. Anderson stated these have been requested, but have not been received. Everyone is invited to the formal opening of the Transit Hub on Tuesday, September 19th, at 3:00p. m. Wyckoff described the new route. She stated there is currently no weekend service, but this will be addressed in the future. Fehst reminded the City Council that we contracted with Decision Resources to survey 400families in town to do a report card of our services. The questions have been reviewed by a committee on two occasions, and calls to residents may begin by the end of September or beginning of October. The questions may take 15 to 20 minutes to answer. He asked that residents take the time to answer these questions honestly, so we can get an accurate appraisal of our jobs. Wyckoff indicated the Big Lot store will open on September 24th. To answer a question, Hansen felt the work on Reservoir is close to completion. Wyckoff indicated there are currently openings on the Telecommunications, Planning and Zoning, and Human Services Commissions. She indicated the Human Services Commission would like to do a "Taste of Columbia Heights ", and conduct a panel with new immigrants, to hear their input. The next Human Services Commission meeting will be Wednesday, 7p.m., at Murzyn Hall Wyckoff wished Terry Randall well in the new position he has accepted as a Public Works Director. Council members and staff wished him well. Jolly mentioned visiting the Monticello Community Center with the City Manager and that they viewed their rollerblading facility. He questioned the City Attorney regarding liability and participants signing waivers. Hoefi indicated a waiver cannot stop negligence. Fehst has asked Hansen to look at paving an area at Ostrander Park to accommodate rollerblading. Hansen will bring ideas to the Park and Recreation Commission. Jolly questioned the status of the railroad tracks near Husset Park. Hansen indicated the project has not gone well because of issues with the title and the survey, but will probably close within the next month. Jolly asked staff to research the outside tent sale held at 49th and University. City Council Minutes September 11, 2000 Page 18 Mayor Peterson reminded everyone tomorrow is the Primary Election and encouraged residents to get out to vote. Jim Morel, 2301 40th Avenue, voiced concern about the flooding at 40th and McKinley and states he has had water in his basement three times. Hansen indicated on September 2n~, multiple areas in town received flooding. Ponding improvements were done in this area, however, this was over a "100 year storm" or 3.25 inches of rain in 90 minutes. Ponding is the rational to handle this water, but there is not enough in the area to handle it all. Morel stated that ponding works for smaller rains under two hours. He appreciates the attempts to correct the problem but it has not totally worked. Hansen stated this is not the only area with problems from this storm. He will meet with an Engineer to discuss problems from heavy storms. Peterson asked that staff keep them informed. Tony Roitero, 2310 40th Avenue, addressed Council members stating flooding of this area has happened three to four times since the ponding was put in place. He suggested a tanker be on stand by to suck water out of the street and pump it into the pond when a problem arises. Peterson asked that the Engineer look at all possible options. 11. ADJOURNMENT Mayor Peterson adjourned the meeting at 9:05 p.m. Patricia Muscovitz, Deputy City Clerk As there were no changes to Ordinance # 1419 at the first reading, only one copy of this Ordinance is included in this packet. Please find a copy of Ordinance # 1419 under: Public Hearings - item # 6 - C OFFICIAL PROCEEDINGS COLUMBIA HEIGHTS CITY COUNCIL SPECIAL COUNCIL MEETING - PRIMARY ELECTION CANVASS SEPTEMBER 13, 2000 Call the meeting to order Council President Jolly called the meeting to order at 5:10 p.m. Roll Call Present: Councilmember Jolly, Councilmember Wyckoff, Councilmember Hunter Mayor Peterson (arrived at 5:15 p.m.) Absent: Councilmember Szurek o Canvass Election Bill Elrite, City Clerk/Finance Director, reported the election went very well with the new voting equipment, and transmitting the results to Anoka County by computer modem. Local results were posted on the Intemet and local cable channel by 8:15 p.m. Aleksandr Chemin set up and monitored these systems and was complimented for a job well done. Elrite stated the process was also speeded up by processing Absentee Ballots during the day. Elrite stated voter turnouts averaged 31 percent. There were no over votes on the City election. 352 blank ballots (or 171 actual voters, as they could vote for two people) with no City office vote were recorded. There were 698 under votes (which means that voters only voted for one City office. MOTION by Hunter, second by Wyckoff, to waive the reading of Resolution No. 2000- 66, there being ample copies available to the public. MOTION by Hunter, second by Wyckoff, to adopt resolution 2000-66 canvassing municipal primary election returns. RESOLUTION NO. 2000-66 CANVASSING MUNICIPAL PRIMARY ELECTION RETURNS WHEREAS, the City of Columbia Heights, did on the 12th day of September, 2000, conduct and hold a Primary Municipal Election for the purpose of nominating candidates for two offices of Council Member to be voted on at a General Municipal Election on November 7, 2000; and WHEREAS, the City Council of the City of Columbia Heights at a meeting of said Council held on the 13th day of September 2000, did canvass the returns and results of said Primary Municipal Election; and WHEREAS, the following results were determined by said canvass of said Primary Municipal Election, to wit: City Council Primary Election Canvass September 13, 2000 Page 2 TOTAL BALLOTS CAST IN ELECTION: 3,478 Valid Votes Cast for Two 4-Year Council Seats Jerry Foss 338 Doug Hill 338 John Hunter 820 Bruce Nawrocki 1,561 Brec Noland 81 Tom Ramsdell Theresia Synowczynski 1,125 Bobby Williams 1,035 Overvotes 0 Times Blank Voted 352 Undervotes 698 608 NOW, THEREFORE, BE IT HEREBY RESOLVED by the City Council of the City of Columbia Heights, that Bruce Nawrocki, Theresia Synowczynski, Bobby Williams, and John Hunter are hereby declared to be the candidates for the two four-year Council Seats at the General Municipal Election to be held on November 7, 2000. Passed this 13th day of September, 2000 Offered by: Hunter Seconded by: Wyckoff Roll Call: All ayes Patricia Muscovitz, Deputy City Clerk 4. Adjournment Mayor Peterson adjourned the meeting at 5:22 p.m. Mayor Gary L. Peterson COLUMBIA HEIGHTS - CITY COUNCIL LETTER Meeting of: September 25, 2000 AGENDA SECTION: ORIGINATING DEPARTMENT: CITY MANAGER'S NO: t--~_/~~2,,, CITY MANAGER'S APPROVAL ITEM: O ctober2000WorkSession BY: P attyMuscovitz BY: ~.~/~Z NO: Dates DATE: September 21, 2000 DATE: Work Sessions dates: It is recommended that Work Sessions for October, 2000, be scheduled for: 1. Monday, October 2, 2000 at 8:00 p.m. 2. Monday, October 16, 2000 at 7:00 p.m. RECOMMENDED MOTION: Move to establish Work Session meeting dates for Monday, October 2, 2000 at 8:00 p.m., and Monday, October 16, 2000, at 7:00 p.m. COUNCIL ACTION: h:X2000-9-25worksession dates CITY COUNCIL LETTER Meeting of September 26 2000 AGENDA SECTION: Consent ORIGINATING DEPARTMENT CITY MANAGER NO. k~ A ~'~ POLICE APPROVAL: _,,. ~, .~! ITEM: Purchase of Laptops, Printers, and Software BY: Thomas M. Johnso~ BY:J~~J~ NO. From 2000 School Based Partnership Grant DATE: September 14, 2000 u v DATE: BACKGROUND: In 1999, the Police Department wrote a grant to analyze assaultive incidents at Columbia Heights Senior High School. At this time it was decided we would need four laptops, two color printers, and GIS software to develop a survey of students and faculty and to develop statistical data to track and research incidents of assault at the High School. The costs of these items were included and approved in the Federal School Based Partnership Grant. ANALYSIS/CONCLUSION: To get the most value for the grant dollar, the department has researched where we can obtain the needed equipment and software for the best price. For the hardware we require, we looked at three different vendors: Comp USA, PC Solutions, and CDW. We determined that PC Solutions offers the best value for the hardware required for our grant. In researching our software needs, we only found two available vendors: Omega Group and Rowekamp Associates. We have determined that Rowekamp Associates offers the best value for our grant dollar in the software area. RECOMMENDED MOTION: Move to approve the purchase of four Toshiba laptop computers from PC Solutions in the amount of $9,966.65 including shipping and tax, and two Hewlett Packard 4500 DN color printers in the amount of $8,401.79 including shipping and tax. Also, move to approve the purchase of Crime View software from Rowekamp Associates in the amount of $17,480.43 including shipping and tax. Funds for these purchases to come from the 1999 School Based Parmership Grant Fund 279-42100-2011. TMJ:mld 00-223 COUNCIL ACTION: PRINTER~ LAPTOPS AND SOFTWARE PROPOSAL SEPTEMBER 2000 presented by the Columbia Heights Police Department to the Columbia Heights City Council TABLE OF CONTENTS Information on the Printer Information on the Laptop Statement of Intent ........................................................... 1 Cost Comparison of the Printers, Laptops and Software ............................ 2 Information on CrimeView ................................................ 10 - 14 Printer, Laptop and Software Research Background In 1999, the Police Department wrote a grant to analyze crime at Columbia Heights Senior High School. At this time it was decided we would need 4 laptops, 2 color printers and GIS software to analyze crime. In August of 2000, we sat down and decided what specifications the Police Department needs in these products. Speed, multiple paper bins, color, duplexing, and being a network came out as priorities on the printers. On the laptops we wanted to make sure they had enough speed and memory to handle the sotSware that would be nm on them. The GIS software would be CrimeView the only GIS crime analysis software at this time. Upon compilation of this list, we started to contact sales representatives from Comp USA, PC Solutions and CDW. We gave the representatives from these companies our specifications and invited bids from them. Conclusion After receiving the bids, it was determined that PC Solutions was by far the lowest bid. PC Solutions offered a 2% discount for purchasing all products through them. Overall their bid for four laptops and two printers is $18368.44. This price does include tax, shipping and handling. PROPOSALS COLUMBIA HEIGHTS POLICE DEPARTMENT Company Printers Individual Price Total Purchase Total w/Shipping and Tax Comp USA 4500 DN 3999.00 $7998.00 $8900.32 PC Solutions 4500 DN $4025.00 $8050 $8583.00 PC Solutions * 4500 DN $3944.50 $7889 $8401.79 CDW 4500 DN $3999.00 $7998.00 $8517.87 + SHIP Company Laptops Total Price Total Purchase Total w/Shipping and Tax Comp USA Toshiba 2345.42 $9381.68 $10060.56 PC Solutions Toshiba 2385.00 $9540.00 $10169.85 PC Solutions * Toshiba 2337.30 $9349.20 $9966.65 CDW Toshiba 2389.00 $9556.00 $10177.14 + SHIP Company Software Total Price Total Omega Group Crime View 19,995 $19,995.00 + Tax Rowekamp Associates Crime View 16,946 $17,480.43 No other vendors *PC Solutions offered a 2 % price break if we purchased all items through them. In addition there is a $9.75 shipping and handling charge per order. If we order all items at once we will only incur the $9.75 charge once. 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Printer AppLication Memonj Network Enhancements HP CoLor Laser Jet 8.5- by 14-inch 32 MB oF RAM 4500 general office coLor printer Paper HandUng · Tray 1:150-sheet mu[Upurpose input tray supports ,,10 envelopes through 8.5 by 14, labels. card stock a~d speciaLs media · Tray 2: 250-sheet input tray supports AS through LegaL Optional Accessories · Printer cabinet with storage sheLf · Auto-dupLex unit· · 500-sheet Feeder HP CoLor laser, let 85- by M-inch 64 MB RAM HP JetDirec[ 600N 4500 N general office (EIO) 10/100 Base-TX -~ --~. : network-ready InternaL Print Server color printer · Tray 1:150-sheet multipurpose input tray supports #10 enveLopes through 8.5 by 14, LabeLs, card stock and specialty media · Tray 2: 2SO-sheet input tray supports AS through Legal · Printer cabinet with storage sheE · Auto-dupLex unit · 500-sheet Feeder HP CoLor LaserJet 8..5- by 14-inch 64 MB RAM HP JetDirect 600N 4500 DN generaL office (EIO) 10/100 Base-TX network-ready Internal Print Server color printer Connectivity Chart IPX/SPX · Novell NetWare v3.11, 3.12, 4.0, 4.1 · Novell NDS and NDPS · Microsoft" Windows' 95J~Vindows 98 Networking · Microsoft Windows NT° v3.51, 4.0 · Novell IntranetWare TCP/IP · IBM AIX v3.2.5 and later · HP-UX v10.2, ll.x ' Microsoft Windows NT · SunOS v4.1.3, v3.51, 4.0 4.1.4 · Microsoft Windows 95/ Solaris v2.3, 2.4, Windows 98 Networking 2.5x, 2.6 · Ipd · IBM OS/2 Warp · MPE-iX v5.5 v3.0, 4.0 · Mac OS v7.6.x, 8.1 or · Tray 1:150-sheet multipurpose input tray supports #10 envelopes through 8.5 by 14, LabeLs, card stock and specialty media · Tray 2: 250-sheet input tm-ag supports AS through Legal · Tray 3: 500-sheet Feeder standard on DN supports B5 through Legal · Auto-dupLex unit · Printer cabinet with storage shelf DLC/LLC · IBM 0S/2 Warp v3.0, 4.0 · Microsoft Windows NT v3.51, 4.0 · Artisoft LANtastic v7.0 EtherTalk · Mac 05 7.1 or greater (except J3112A Token Ring) HP Color Laser Jet 4500 Series Printers HassLe-Free network color printing For all §our business needs. HP Color Laser Jet 4500 DN The HP CoLor Lasedet 4500 DN printer Features two EIO interlace slots, an ECP paral.l.e[ C-connector, HP JetDirect 600N (EIO) Internal. Print Servers, an auto-dupl.ex unit and a 500-sheet Feeder. HP Color Laser Jet 4500 Series Printers Accessories OptionaL printer cabi- Optional, 500-sheet Four high-capacittj net with storage sheU: feeder aEo~vs more toner carb~ges pro- provides Root stand- media capacit§ and vide optimum output ing capabillttj and Rexibili~j. and are easib.j additional, s~orage replaced ~th no mess. area ~or suppEes. Precon~gured kits (HP Drum Kit. Transi:er Kit and Fuser Kit) contain all the necessanj components ~jou need to maintain premium-flualittj output over the life of the printer. HP CoLor LaserJet 4500 Series Printers SpeciFications Printing Process · Four-toner dry-type laser electrophotography Dut~j C~lc[e · Up to 35,000 pages per month Warrant~ · One-year onsite warranty · Enhance/upgrade basic warranty with I-LP SupportPack Speed and Throughput'* · 4-ppm full color; 16-ppm black and white · 133-MHz microprocessor · First page out in 35 seconds for full color printing; 26 seconds for black and white ResoLution · True 600 x 600 dpi engine · HP ImageREt 2400 uses a proprietary process to produce millions of solid colors and photo-realistic images · HP Co[orSmart II provides automatic halftoning and color control based on data type · Industry standard sRGB color management · Automatic color calibration ensures consistency of color over time, between different printers and in different environments Paper HandUng · Standard 150-sheet and gS0-sheet input trays, plus an optional 500-sheet feeder for a total of 900 sheets · Optional auto-duplex unit' for double-sided printing up to 8.5 x 14 inches · Standard output trays: 250 face-down: 100 face-up (straight- through paper path) · ~Output full' sensor · Input trays/capacities/media sizes: Multipurpose tray ~1 - 150-sheet capacity: 3 x 5 inch (straight- through paper path only) through 8.S x 14 inches and up to 10 #10 envelopes · Tray #2 250-sheet capacity: AS through legal · Tray #3 SOO-sheet capacity: B5 through legal · Paper input-level indicator · Auto-duplex unit* supports 17 to 28 lb paper Media Sizes · A4:210 x 297 mm; 8.3 x 11.7 in (printable: 201 x 288 mm: 7.9 x 11.3 in) · A5:210 x 148.5 mm: 8.3 x 5.8 in (printable: 198.1 x 138.1 mm; 7.8 x 5.4 in) · BS: 182 x 257 mm: 7.2 x 10.1 in (printable: 176 x 250 mm: 6.7 x 9.5 in) · Letter: 216 x 279 mm; 8.5 x 11 in (printable: 207 x 270 mm: 8.2 x 10.? in) · Legal: 216 x 356 mm: 8.5 x 14 in (printable: 207 x 347 mm: 8.2 x 13.7 in) · Executive: 184 x 267 mm: 7.3 x 10.5 in (printable: 175 x 258 mm; 6.9 x 10.2 in) Envetope Sizes · ~10 common: 241 X 105 mm: 9.5 x 4.1 in (printable: 235 x 100 mm: 9.3 x 3.93 in) · Monarch: 191 x 98 mm: 7.5 x 3.9 in (printable: 185 x 93 mm; 7.3 x 3.7 in) · DL: 220 x I10 mm; 8.7 x 4.3 in (printable: 214 x 105 mm: 8.43 x 4.1 in) · C5:229 x 162 mm: 9 x 6.4 in (printable: 223 x 157 mm; 8.8 x 6.2 in) · BS: 250 x 176 mm; 9.9 x 6.9 in (printable: 244 x 171 mm: 9.6 x 6.7 in) Media Tgpes · Papers: Copier. bond. recycled and HP Color Laser Jet Soft Gloss 4500/8500 Paper, HP Laser Jet and H~° Multipupose Paper · Specialty media: FIP Color Laser Jet Transparencies and laser- qualified labels · Standard 150-sheet multipurpose input tray #1 accepts 60 to 135 g/mz. (16 to 36 lb) ail sizes of media, 60 to 176 g/mz (16 to 4? lb) for media equal to or less than 148 mm (57/s in) width · Standard 250-sheet input tray #2 accepts 60 to 105 g/mz (16 to 28 lb) paper Management · HP Web JetAdmin printer management software--available from HP's website--for simple installation, configuration. management and troubleshooting from a web browser · HP JetAdmin printer management software provides easy printer setup and use · Pantone**** application palettes available via HP web site · TrueType* screen fonts · HP FontSmart · HP Laser Jet Utility for Macintosh · SNMP- and industry-standard printer MIB-comp[iant for heP, york management capability Printer drivers for Windows 3.1, Windows 95, Windows 98, Windows NT 3.51 and 4.0: · PCL HP ColorSmart II driver · PostScript* Level 2 emulation driver with HP ColorSmart II · Windows installer Printer drivers for OS/Z: · PCL driver · PostScript Level 2 emulation driver Printer drivers for Macintosh: · PostScript Level 2 emulation driver with HP ColorSmart II · Macintosh installer Connectivit9 · ECP parallel C-cormector interface · Two EIO interface slots for fast data transfer and modular expansion · Optional HP JetDirect 600N (EIO) Internal Print Servers for Fast Ethernet. Ethernet. Token Ring and LocalTalk environments · Most major network operating systems supported with appropriate HP JetDirect 600N (EIO) Internal Print Server card inserted into printer's EIO slot (see Connectivity Chart for specifics) · Automatic network protocol switching allows printer to support more than one network operating system · A full line of third-party interfaces is also available. See the WP Connectivity Solutions Guide (p/n 5968-1256EUC) for a complete listing "Throughput is application file- and system-dependent. Optimal performance achieved with the most current software applications and HP drivers. l~commended memory and I/0 configuration. "·Pantone [nc.'$ check-sbl, ndard trademark for color. HP CoLor LaserJet 4500 Series Printers SpeciFications HP Color Loser Jet 4500: · 32 MB RAM HP Co/or LaserJet 4500 N and 4500 DN: · 64 MB RAM All HP Color Laser/et 4500 Series printers: · Memory Enhancement technolog5 (MEt) · Three universal DIMM slots for maximum addressable memory Power Corzsumption: Color printing: 300 watts Monochrome printing: 500 watts Idle (ready state): 140 watts ENERGY STAR Powersave mode: <45 watts Off mode: <2 watts Minimum Circuit CapaciO,: 115 volts ~ 11 amps or 230 volts @ 5 amps capacity of up to 208 MB (3 x 64-MB DIMM) · Optional DRAM DIMMs in 4, 8. 16, 32 and 64 MB Printer Languages · HP PCL 5c · PostScript Level 2 emulat/on · Automatic language switching · HP JetSend-enabled Control Panel · Back[it 2 x 16 display with rocker switches to go forward or reverse through the menus · Expanded help messages are available on control panel. Dimensions (H x V/x D) HP Color Laser Jet 4500 and 4500 N: 390 x 500 x 570 mm (15.4 x 19.7 x 22.4 in) HP Color Laser Jet 4500 DN: 567 x 500 x 708 mm (22.3 x 19.7 x 27.9 in) Weight HP Color Laser Jet 4500 and 4500 N: 50.8 kg (112 lb) HP Color Laser Jet 4500 DN: 73 kg (162.5 lb) providing easy-to-follow instructions for repairing problems or replacing consumables · 'Toner low' and 'Toner out" messages for each color cartridge · Go and Cancel Job buttons · Language selection can also be done at control panel · Messages can be displayed in these 15 languages: Czech, Danish. Dutch. English. Finnish. French. German, Italian. japanese (Katakana). Norwegian. Polish, Portugese, Russian. Spanish and Swedish Product Certifications UL and cUL listed, Nom-NYCE approved, and carries CE marking for EU EMC and Low Voltage DirecrJ. ves. Complies with IEC 950/EN 60950 and IEC 825-1/EN60825-1 (Class Laser Product/LED product); meets FCC and ClSPR-22 Level B limits. Font Capabil. ities · 135 scaleable TrueType fonts (80 built in); all PostScript emulation and HP PCUaccessible · Language font DIMMs available: Arabic, Traditional and Simplified Chinese. Cyrillic, Greek. Hebrew. japanese and Korean · HP FontSmart software provides simple font management Intellifont and TrueType rasterizer built into HP PCL 5c Environmental. Ranges Temperature £or Printer Operating: 15° to 27° C (59° to 80.6° F) Storage: -20° to 40° C (-4° to 104° F) Humidi~y Operating: 10% to 70% Rtl Storage: 10% to 95% RH Acoustics · Operating Position: L57 dB (A} printing, L<49 dB (A) idle (per ISO 9296. DIN 45635, T. 19) · Bystander lin: L<52 dB (A) printing, L<45 dB (A) idle (per ISO 7779. DIN 45635, T. 19) · Sound Power: L=6.6 bels (A) printing, L=6.0 bels (A) idle (per ISO 9296) Power Requirements · Source: 100 to 127 volts (+/- 10%), 50/60 Hz (+/- 2 Hz) or 220 to 240 volts (*/- 10%), 50/60 Hz (+/- 2 Hz) · Printer's voltage ranges depend upon the country in which the printer is purchased [/~//] HI=WLI=TT' PACKAI::IO Expanding Possibilities Color LaserJet 4500 Series Ordering Information HP Part Number Description Printer C4084A C408gA C40g4A HP Color Lasedet 4500 HP Color Lasedet 4500 N HP Ccd. or LaserJet 4500 DN SuppUes and Accessories C4195A C4196A C4197A C4198A C4235A Drum K~t (imaging drum carr~dge, Large air filter, small a~r filter, hand wipel (25.000 pages black & white, 6500 pages color) Transfer Kit (transfer dndm, transfer beL transfer charger, cleaning miler, charcoal filter, hand wipe) (100,000 pages black & white, 25,000 pages color) 110-volZ Fuser Kit (100,000 pages black & white, 50,000 pages color) Z20-volZ Fuser Kit (100,000 pages black & white, 50,000 pages co[or) Printer cabinet with storage shebc Paper Handling C4083A C4082,A Auto-dupLex unit' 5OO-sheet Feeder Memorg C4140A C4141A C4142A C4143A C3913A 4-MB DIMM 8-MB DtMM 16-MB DIMM 32-MB DIMM 64-MB DIMM Toner C4191A C4192A C4193A C4194A 8lack tuner cm'tddge (9.000 pages) Cgan toner cartridge (6.000 pages) Magenta toner cartridge (6,000 pages) Yellow toner cartridge (6.000 pages) HP JetDirect 6OON (EIO) Internal J3110A J311IA J3112A J3113A Interface and CabLes C2946A Print Servers For Ethernet lOB~se-T (R J-45) networks For Ethernet lOBase-T (RJ-45}/10Base2 (BNO and LocalTalk (DIN-8) networks For Token Ring (OB9 & R J-45) networks For Fast E:hemet lO/lOOBase-TX (R J-45) networks (standard in HP CoLor Laser Jet 4500 N and 4500 DN) HP parallel C-connector cable Support Pack H5491A 3-year HP SupponPack *When auto~uplex unit is purchased separately for a base unit. a minimum of 40 MB of memo~' ts required in the printer. HP Customer Care HP Color Laser Jet 4500 Series printers are backed by HP Customer Care, providing award-winning service and support solutions that keep you up and running. HP Customer Care is available around the dock and around the world. If you have questions about HP Color Laser jet 4500 Series printers, there are a number of places you can turn to for answers: · HP Customer Care Online for convenient, 24-hour technical support at www. hp.com/go/support · liP's comprehensive portfolio of services at ww~.hp.co m/go/printservices · The HP Customer Care Center for fast, expert assistance by telephone: (208) 323-2551'. · lip Customer Care by Fax (HP FIRST) provides answers and fax support for hardware and software information Z4 hours a day: (800) 333-1917'. · HP Driver and Software Distribution for option- al software solutions and printer drivers For most popular applications: (970) 339-7009', tThese services are based in the Uni{ed States. Outside the U.S., call your HP regional office for information on country-specific support. Microsoft, Windows and Windows NT are regis- tered trademarks of Microsoft Corporation. TrueType is a U.S. trademark of Apple Computer Company, Inc. UNIX is a registered trademark of the Open Group. PostScript is a trademark of Adobe Systems Inc. ENERGY STAR is a U.S. registered service mark of the United States Environmental Protection Agency, All other brand and product names are trademarks or registered trademarks of their respective companies. Year 2000 Compliance: lip Color LaserJet 4500 Sedes printers are Year 2000 compliant. Preserving natural resources and minLmizing waste are part of HP's commitment to environmental stewardship. That's why all HP printers are 100 percent ENERGY STAR' compliant. The information in this document is subject to change without notice. Printed in USA on recycled paper 9/98 © Hewlett-Packard Company 1998 5968-0226EUC 09/11/00 11:44 WYBRITE/PC SOLUTIONS (612)-588-6112 P. 001 September I I, 2000 Fax# 706 3752 I Pase City of Columbia Heights Police Department Attn. Jill Please accept this quote as an update / re bid of the Toshiba Satellite Pro Model 4340 of my e-mail quote of 9/7/00: Tosh/ba Model 4340 - Satellite Pro Notebook Computer [nclude~: - Pill 650 Mhz. - 128 MB RAM - 12 GB I-I~d Drive - 6x DVD - 14. I" TFr Screen - V6. 98 - AC Adapter and Long Life Battery - 56k vg0 Modem - 2 Type Ill Card Slots - 1 Year W~rranty - Depot Purchase Price - $2385.00 ea. The price quoted above assumes a purchase quantity of six or more. Also as explained in my e-mail of 9/7/00, this price will be reduced an additional 2% if the City chooses to order both the notebook computers and one or more of previously quoted HP Color Laser Prmtcrs. Please advise iffy ~ditional information can b~ helpful. Very truly yours, John Lind~nann Voice 612 588-7501 ext 235 COMPUTER PRODUCTS . NETWORKING . SERVICE · SUPPORT 3839 Washington Avenue North. Minneapolis, MN 55412 800..542.5063 612.588.7501 Fax: 612.588-6112 ROWEKAMP ASSOCIATES~ INC. Authorized Reseller of the Entire Suite of ESRI® Desktop Products 1601 E Highway 13, Suite 201 Bumsville MN 55337 (952) 882-4776 FAX (952) 882-4779 Proposal to City of Columbia Heights Police CrimeView Software, Training and Technical Support September 6, 2000 SOFTWARE 1 ArcView 3.2 for Windows 1 Shipping/handling ArcView Spatial Analyst Extension Shipping/handling 60 1 With each license you get: days technical support provided by ESRI coupon worth $50 offArcView training provided by Rowekamp Associates (one coupon per person) 1 CrimeView 1.5 TRAINING ArcView training consists of a two-day Introduction to ArcView class: 1 per student CrimeView training consists of a Y2-day Introduction to Fire View class: 4 per student (minimum of 4) Unit Price Total Price $ 956 $ 956 $ 10 $ 10 $ 2,246 $ 10 N/C N/C $ 5,000 $ 5,000 $ 6OO $ 275 $ 1,100 CONSULTING Implementation of CrimeView will require significant effort to prepare data files and to construct scripts for data downloading. The following is our estimates of the tasks required to accomplish this project and the associated costs. It is meant to be comprehensive, but we cannot predict with complete accuracy until we better define your needs: · conduct project planning meetings $ 400 $ · create customized queries $ 240 $ · create customized report templates $ 480 $ · create customized incident legends $ 240 $ · create Exception Report query and template $ 240 $ · compile point-of-interest data and create theme $ 240 $ · locate, evaluate and enhance street centerline file $ 960 $ · develop alias tables if necessary to enhance ge0coding $ 480 $ · create city boundary theme $ 120 $ · create land use themes (parks, schools, etc.) $ 240 $ · create parcel theme from city or county data $ 240 $ 400 240 48O 240 240 240 960 48O 120 240 240 ROWEKAMP ASSOCIATES, INC. Authorized Reseller of the Entire Suite of ESRI® Desktop Products 1601 E Highway 13, Suite 201 Burnsville MN 55337 (952) 882-4776 FAX (952) 882-4779 · create street labels theme $ · create known offender theme $ · develop script to automatically download new incident data $ · convert historical incident data to CrimeView format $ · create System Administrator's manual $ · install system and conduct a final system test $ 120 $ 120 120 $ 120 4,000 $ 2,000 480 $ 480 480 $ 480 800 $ 800 TECHNICAL SUPPORT ArcView Following complimentary technical support, ESRI will provide technical support on a per call basis or for an annual fee 1~ Per call basis $ 1 Annual fee $ 5O 349 CrimeView The Omega Group, manufacturers of CrimeView, will provide unlimited, same day, phone support for any trained users of CrimeView. The support will also include sig-nificant cost reductions on soft-ware upgrades. 1 Annual fee (1st year is mandatory) $ 2,000 $ 2,000 TOTAL $ 16,946 Note: Prices do not include any applicable sales tax. This quote is valid for thirty days. CrimeView" Reporting, Query, and Mapping Tools for Crime Analysis Today, community-oriented policing is creating the demand for targeting and reducing crime by using advanced mapping tools to access, display, and analyze police data. This data typically includes incident locations, known offender addresses, landmarks, police jurisdictions, and other relevant location-based information. The capability to integrate crime data with geo- graphic information system (GIS) software and data layers enables law enforcement personnel to establish patterns and trends. This information allows officers to be deployed where they are most needed. How can police departments with limited budgets and staff take advantage of this technol- ogy? The answer is CrimeViewTM, an affordable and easy-to-use crime reporting, mapping, and analysis software application. CrimeView software is designed as a custom interface for the world's leading desktop GIS software, ArcView* GIS, from ESRI. ,~cView GIS integrates mapping analysis tools with data management tools for access and analysis of location-based information. CrimeView was developed by The Omega Group, an ESRI Business Partner. CrimeView is easy to use and tailored specifically for crime analysis. CrimeView includes a built-in report writer, mapping, and analysis functions. Crime Incidents Within 1000 Feet of a High School January - June 1997 '""" I ,,","~ .";..;;'L'. ~"'.:.%" /---i POLICE REPORT Density of Part 1 Crime and Pa.rolee~ Con~dc~ed ofPar~ 1 Crime January-March Users can point and click to display crime incidents by type, proximity, or other search criteria. CrimeView enables you to · Visualize incident patterns. · Prepare officer and citizen patrols for their shifts. · Identify trouble spots. · Improve officer safety. · Adjust beat boundaries. · Maximize limited resources. · Locate parolees and other registrants (Megan's Law). · Map drug arrests by proximity to schools. · Identify accident-prone intersections. · Map repeat calls. · Create density maps. GIS Solutions fer Crime Analysis ---- a 1500 ~t Ro~ ~ UC ~ Ni~t Shift Januo~-J~e For mo~ informaGon . n.~,K..e Cflm,~ Is ~d mmgam we~ mlm~m~ or m mn m~m& Crime View Automates Your Analysis CrimeView walks users through individual tasks and guides the user with minimal input. The application includes online help for all reporting, query., and mapping routines. Reporting Features CnmeView includes a full-featured report writer. Crime incidents, summary., and known offenders reports are provided. Additional custom reports can be developed for any data table. Instant Repons for any table can be generated on the fly. Reports can be exported in HTML format and can include linked tables, charts, bit maps, text files, and more. Query Features The power of GIS is its capability, to access and integrate different layers of information, such as incident locations, landmarks, beat boundaries, street addresses, and known offenders, to create unique views of information. Complex queries can be saved for future use. CrimeView helps users combine and display a variety, of location-based data such as · Incidents in a report area · Incidents near an address, landmark, or known offender (radius in feet or miles) · Known offenders near an address or incident Crime density · Hot spot investigation · Day of week charting · User-defined routines Stolen-Recovered Auto Linking Crime Analysis Unit Oenstty of Traffic Collis=ns anti Re;eat Calls for O~nl< Orr~ng Mapping Features Any number of data layers can be incorporated into a view including ArcView GIS shapefiles. ARC/INFO® coverages, AutoCAD® drawings, SQL connected data layers, and aerial photos. Any number of map layouts can be developed or produced on the fly, and templates can be saved. New Features in Crime View Version 1.5! Omega has added these new features to CrimeView Version 1.5--auto theft analysis, exception reporting, time series animation, and density maps using ESRI's ArcView Spatial Analyst. Auto theft analysis--links auto thefts and auto recoveries, creates maps of linkages to determine geographic trends, and creates cross-tabulation for stolen/recovered locations by report area. · Exception reporting--uses historical crime data to compare year-to-date statistics by crime type and geographic area. Call to learn more about these new developments in GIS crime analysis including CrimeView Internet Map Server (CrimeView IMS). CITY COUNCIL LETTER Meeting .of September 25, 2000 No.AGENDA SECTION: Consent k-~ . ~ . L[ ORIGINATINGpoLicEDEPARTMENT/ APPROVAL:CITY MANAGER ITEM: Request to purchase laptop computers BY: Thomas M. Johns~,~ ~ BY: NO. DATE: September 14, 2001T'~- DATE: BACKGROUND: In the 2000 Police Department Capital Improvement budget, the department included $14,500 to purchase two laptop computers, two modems, and two Gamber Johnson mounts, which will allow us to start replacing our original laptops purchased for our squads five years ago. ANALYSIS/CONCLUSION: The upgrading of MDT dumb terminals to dual function laptop computers has greatly increased the professional work product of our officers-not only on the street, but also those officers who are working in investigations, community oriented policing, and as a school liaison officer. By using laptop computers, we can enter data into the Laser fiche system in a faster digitized fashion. With our new shared records management system, officers will soon be able to obtain information or send information from any department on a subject or address from their squad car. It is the recommendation of the police department that we continue to offer our officers state of the art computer equipment to receive the most professional work product we can and to enhance officer safety. The department is recommending the purchase of the following items: Three Toshiba laptop computers $2,491.66 x 3 = Three Gamber Johnson computer mounts w/screen support $ 250 x 3 = Total $7,474.98 $ 750.00 $ 8,224.98 + tax RECOMMENDED MOTION: Move to approve the purchase of three laptop computers and three Gamber Johnson computer mounts with screen support for $8,224.98 plus tax; funding for these purchases to come from the 2000 Capital Equipment Fund. TMJ:mld 00-235 COUNCIL ACTION: CITY COUNCIL LETTER Meeting of September 18, 2000 t~ ORIGINATING DEPARTMENT CITY MANAGER AGENDA SECTION: Consent t./ ~ NO. - - POLICE APPROVAL: ITEM: 2000-2001 E quipmentBlockGrant BY: Th omasM. Johnson/t` BY: Y~~/~ NO. DATE: September 6, 2000-<~r~ DATE: BACKGROUND The U.S. Department of Justice has granted the Columbia Heights Police Department an equipment block grant for $21,578. To accept this grant, the City must agree to a match of $2,398. The department would like to use this money to pay for equipment that we could normally not afford. This would include miscellaneous training equipment, computer equipment, squad car equipment, officer safety equipment, etc. ANALYSIS/CONCLUSION At the present time it appears there would be adequate funds available in the 2000 Police Department budget to cover the match. The grant will be available to us early in 2001. RECOMMENDED MOTION: Move to accept the 2000-2001 Federal Law Enforcement Block Grant in the amount of $21,578 with a 10 per cent match in the amount of $2,398, to come from unexpended funds in the 2000 Police Department general budget. TMJ:mld 00-214 COUNCIL ACTION: Print Application Page 1 of 1 Application was submitted on 30-AUG-00. LLEBG FY 2000 Application Date Certified: 30-AUG-00 IDate Submitted: 30-AUG-00 Jurisdiction Information Ju sdisction: ICoun : Istate: ICOFA Number: Columbia Heights City ANOKA MINNESOTA 16.592 Budget Information Eligible Award Amount: Final Award Match Amount: Matching Funds Amount: Description: $21,578 $2,398 State and Local Government $21,578 Units CEO Information Title: Name Prefix: Last Name: First Name: Mayor Mr. Peterson Gary Address: Telephone: Fax: Emaih 590 40th Ave. NE 763-706-3607 763-706-3601 Columbia Heights, MN 55421-3878 Gary. Peterson@ci.columbia- heights.mn.us Program Contact Information Title: Name Prefix: Last Name: First Name: Police Chief Mr. Johnson Tom Address: Telephone: Fax: Email: 590 40th Avenue Northeast 763-706-3755 763-706-3752 Columbia Heights, MN 55421-3878 Tom. Johnson@ci.columbia- heights.mn.us Application Details Date Agreed to Trust Fund Requirement: Applicant is PSOHB Compliant: 30-AUG-00 Yes Date Agreed to SPOC Requirement: Date Agreed to SAA Review Requirement: 30-AUG-00 30-AUG-00 Date Agreed to Certifications: Date Agreed to Assurances: 30-AUG-00 30-AUG-00 https ://grants.ojp.usdoj.gov: 8004/gms_u.../llebg_main. app_read_only?p_bgid=2&p_action=prin 9/4/00 CITY COUNCIL LETTER Meetin; of: September 25, 2000 AGENDA SECTION: ORIGINATING DEPT: 'CIT~z MANAGER NO: [--}. ,~-~0 FINANCE e~~ ~)~APPROV'4-E-~~:i~ ITEM: BAD CHECK RECOVERY BY: William Elrit NO: DATE: 09/12/2000 · The City is currently writing off approximately $9,000 to $10,000 in bad checks on an annual basis. Over the years we have reviewed several alternatives and safeguards relating to accepting checks in the liquor operation, ranging from Telecheck, CheckMate, and other services, to various collection agencies for collecting the bad checks. On the front end, services such as Telecheck and CheckMate are not cost- effective as their fees are excessively high and their database of bad checks is not kept current enough to catch the majority of the bad checks that come through the stores. Based on our review, we recommend entering into a contract with CheckRite Recovery Services, Inc. to attempt collecting on our worthless checks. Our current practice is to send letters to everyone who writes a bad check, and we receive a slight response to these letters. Under the proposed plan we would submit the check to the bank twice. After it is returned from the bank as uncollectible, we would turn it over to CheckRite Recovery Services, Inc. to attempt collection. Basically, this is the point where we would spend a significant amount of time sending letters to people and have very limited results in collections. Attached is a proposal from CheckRite Recovery Services, Inc. They will be turning over to the City the full amount they collect on the check and $4.00 of the service fee. It is staff's recommendation to enter into an agreement with CheckRite Recovery Services, Inc. for collection services on worthless liquor store checks. RECOMMENDED MOTION: Move to authorize the Mayor and City Manager to enter into an agreement with CheckRite Recovery Services, Inc. for check collection services. WE:sms 0009121 COUNCIL Attachment COUNCIL ACTION: BERNARD E. STEFFEN RICHARD A. MERRILL DARRELL A. JENSEN JEFFREY S. JOHNSON RUSSELL H. CROWDER JON E ERICKSON LAWRENCE R. JOHNSON DAVlD A. COSSI THOMAS P. MALONE MICHAEL E HURLEY HERMAN k. TALLE CHARLES M SEYKORA DANIEL D. GANTER, JR. BEVERLY K. DODGE BOS Barna, Guzy & Steffen, Ltd. .ATTORNEYS .AT LAW 400 Northtown Financial Plaza 200 Coon Rapids Boulevard Minneapolis, MN 55433-5894 (763) 780-8500 FAX (763) 780-1777 JAMES D. HOEFT JOAN M. QUADE SCOTT M. LEPAK STEVEN G. THORSON ELIZABETH A. SCHAD1NG WILLIAM E HUEFNER BILADLEY A. KLETSCHER MALCOLM 12 TERRY KRISTI R. RILEY CHRISTOPHER DE LA FOREST MATTHEW M. QUINN CHERYL A. JORGENSEN Of Counsel ROBERT A. GUZY MEMORANDUM TO: FROM: RE: DATED: Bill Elrite, Finance Director, City of Columbia Heights Jim Hoeft, City Attorney~ CheckRite Contract September 7, 2000 Per your request I have reviewed the check recovery services agreement from CheckRite Recovery Services, Inc. regarding the liquor store NSF checks. Even prior to reviewing the service agreement, I was not too concerned about what that agreement might say simply because the only checks we are offering for collection through this service are checks that have gone through the bank twice and have not been collected. It is my further understanding that once a check has gone through the bank two times, and not been collected, there have really been no other efforts made to collect those dollars. Essentially, it appears that anything CheckRite can recover on these checks will be "found money." With that in mind, I did review the services agreement and do not have any concerns with the City entering into the Agreement. If you have any other questions or concerns regarding this matter, please do not hesitate in contacting me. 96894 I An Equal Opportunity Employer CHECKRITE RECOVERY SERVICES, INC. CHECK RECOVERY SERVICES AGREEMENT 70~0 Union Park Center · Suhe 200 * Midvale, Utah · 84047 Subject to the terms and conditions of this Service Agreement and Schedule A, please enter my order for the services of ChcckRJte Recovery Services, lnc. ("CheckRite") described herein ("Services") for an initial term of one (I) year. '1. CHECIO~ITE SERVICES. According to the terms of this Agreement and Schedule A, CheckRite will furnish Merchant with the Services described herein. a) Merchant authorizes CheckRite to pursue recovery ofall checks refcncd to Check. Rite by Merchant, and CheckRite hereby agrees to attempt to recover all referred checks through CheckRite's normal recovery procedures. b) ChcckRite agrees to remit to Merchant payment(s) received on checks successfully recovered. Merchant understands and CheckRite agrees that the intent of CheckRite, upon successful collection, is to remit the face value ofall checks, less any commissions due, directly to the Mcrchant. 2. LEGAL PROCESSING. Merchant agrees that CheckRite may select the attorney to handle any litigation on behalf of Merchant for the collection ofcach check assigned. and make all fee arrangements between CheckRite and the attorney, provided those arrangements are without any up-front cost to Merchant. Suit shall bc commenced tither in the name of CheckRite or in Merchant's name. If suit is commenced in Merchant's nnme~, the Attorney shall be regarded as Merchant's atlome)'. Merchant acknowledges that once legal processing has begun, CheckRite will have advanced legal fees and court costs. Merchant agrees that if, after legal processing has begun, Merchant accepts direct payment or requests that legal action be discontinued, Merchant will become liable to and be required to reimburse CheckRite for those fees and costs that CheckRite and its attorney have incurred. 3. FEES. Merchant shall pay a Set-Up Fee in the amount as per Schedule A with the submission of this Agreement. Thereafter, merchant shall pay: n) A commission on all checks successfully recovered, and such commission shall he based on the age of the dishonored check when received by Cbec 'kRite for processing, as per commission schedule in Schedule b) An Inventory Report fee to he paid each month as per Schedule A; c) An annual Postage and Handling fee as per Schedule A; and d) An annual Legal Processing fee as per Schedule A. In addition, Merchant shall pay all taxes (local, state and federal) and other charges incurred by CheckRite which may now or hereafter be imposed or levied upon the purchase, sale, lease, ownership, possession, use or control of the equipment or Services. Merchant shall promptly pay (or reimburse CheckRite for payment of) all such taxes upon receipt from CheckRJte of an invoice therefore. Merchant hereby authorizes CbeckRite to debit Merchant's business checking account for the fees set forth above and in Schedule A. Merchant agrees to provide a voided business check to CheckRite to allow for proper coding of bank transit number and direct deposit account number. Merchant warrants that its business checking account is held by a financial institution which is a member of the Automated Clearing House (ACH) network. If CheckRite is unable to collect applicable fees from thc business checking account or unable to deduct the amount from collected checks referenced above, Merchant agrees to pay a one and one-half percent (I ½%) per month service charge on all such fees that are not paid within thin), (30) days following receipt of any notice. Merchant agrees to reimburse CheckRite for all costs and expenses, including reasonable attorney fees, incurred by CheckRite in enforcing or defending this Agreement or actions taken pursuant to this Agreement including, but not limited to, the collection of any monies due CbeckRite under this Agreement. In the case of non-payment of applicable fees, Merchant authorizes Check. Rite to deduct from its remittance any amounts due CheckRite. All commissions due CheckRJte shall be deducted by CheckRite from amounts collected on behalf of Merchant before remittance of came to Merchant. 4. TERM AND TERMINATION. This Agreement shall remain in full force and effect for an initial term of one (I) year, beginning upon the date CheckRite executes the Agreement, and shall be automatically extended for successive one (I) year periods on the same terms and conditions expressed herein, or as may be amended, unless either party gives thc other party written notice of termination at least (30) days prior to the expiration of the initial term or any extension or renewals thereof or unless this Agreement is otherwise terminated as provided for herein. Immediately upon notice of termination by either party, Merchant will return to ChcckRite all CheckRite forms, equipment (if applicable), decals, and other supplies furnished by CheckRite to Merchant. Merchant acknowledges that CheckRite will have invested labor, postage, collection forms, and other valuable consideration on each check processed, and that CheckRite agrees to process to conclusion all checks received prior to termination. If Merchant elects to withdraw the checks from the collection process, Merchant shall pay CheckRite $10.00 for each check withdrawn. Checks withdrawn from legal processing shall be subject to a higher fee not to exceed $150.00 per check. $. USE OF THE SERVICES AND CHECK PROCESSING. Merchant agrees to follow all of the published instructions provided to Merchant by CheckRite from time to time. Merchant shall process all checks by forwarding to CheckRite; a) The original of any check that has been dishonored by the Customer's financial institution (no photocopies accepted). ASSIGNMENT OF CHECKS. Merchant shall assign to CheckR. ite, without recourse, all of Merchant's right, title and interest in the check, including any rights to uebie or punitive damages permitted under applicable law and including the entire amount of thc check. Merchant shall execute and deliver endorsement, instruments and papers and shall do whatever is necessary to secure and defend those rights and shall do nothing to prejudice those rights. Merchant shall cooperate with ChcckRite in its pursuit of those rights, including suing or prosecution of the Customer under all applicable laws. 7. NOTIFICATION OF PAYMENTS RECEIVED. Merchant shall notify CheckRite's Customer Service Department immediately by telephone of any payment received directly on a check that has been assigned to CheckRite. Said notification shall include the customer's identity. 8. SERVICE CHARGE NOTICE. Merchant shall display CheckRite's service charge notice to Customers at each location in a prominent and conspicuous place to ensure that each customer has seen such notice. Mercham agrees to pay Checkrite a fee equal to the amount of the service charges recovered, whether recovered by Merchant or by CheckRite. 8. CONFIDENTIALITY. Merchant hereby authorizes CheckRite to include checking account information obtained from checks referred to CheckRite by Merchant as pan of the CheckRite data base. Merchant agrees and certifies that any information derived from access to the database shall he used only for check verification purposes. Merchant, its employees and agents, shall t~at as confidential all information that comes to its attention in the performance of its duties under this Agreement and shall utilize such information only for the duties and obligations contained herein. Merchant hereby agrees to indemnify and hold CbeckRite harmless from any liabilities arising out of,he misuse of CheckRite information (including, but not limited to, any information contained in the database) by Merchant and/or Merchant employees. '10. LIMITATION OF LIABILITY AND INDEMNIFICATION. Neither CheckRite (nor its parents, affiliates or subsidiaries) shall be liable for failure to provide thc Services ifsuch failure is due to say cause or condition beyond its reasonable control. Such causes or conditions shall include but shall not be limited to acts of God or of the public enemy, acts of the Government in either its sovereign or contractual capacity, fires, floods, epidemics, quarantine restrictions, strikes, shortages oflahor or materials, freight embargoes, unusually severe xveather, electrical power failures, unavoidable delays, telecommunication failures, or other causes beyond CheckRite's control and neilher CheckRite (nor its patents, tt~liates or subsidiaries) shall have liability for losses, expenses or damages, ordinary, special or consequential, resulting directly or indirectly from such causes. CheckRite a~ees to nsc conmercially reasonable efforts at all times to provide prompt and efficient services; however, CheckRite makes no warranties or representations regarding the Services except as specifically stated in this Section 8. CheckRite shall use due care in providing the Services hereunder. CheckRite shall not be responsible in any manner for errors or failures of any party other than those of CheckRite. This warranty is exclusive and is in lieu of all other warranties, and Merchant hereby waives all other warranties express, implied or statutory, including but not limited to, any warranty of merchantability or fitness for use for a particular purpose. Should there he any failure in performance or errors or omissions with respect to the Services, liability of CheckRite (including its parents, affiliates and subsidiaries) shall be limited to using commercially reasonable efforts to correct such failure in performance or errors or omissions. In no event, except set forth herein, shall CheckRite or its parents, affiliates and subsidiaries he liable to M:-chant or any third panics (including Merchant's customers) for any claim, loss or damage, ordinal, special or consequential, or otherwise, even if CheckRite has been advised of the possibility of such damage. Due to thc nature of the services being performed by CheckRite, it is agreed that in no event will ChackRite (including its parents, afiqliates and subsidiaries) be liable for any claim, loss, liability, ~x~'rection, cost, damage or expense caused by CheckRite's performance or failure to perform hereunder which is not reported by Merchant within thirty (30) days ofsuch failure to perform or, in th~. event ora billing error, within sixty (60) days of thc earlier of (1) the date of the debit from Merchant's account, or (2) the date of invoice. CR RECOVT=RY Merchant shall indemnify and hold CbeckRite (includin~ its p~ents, affili~'s and subsidi~ics) Immdcss from and a~inst any and all liabilities, losses, damages, disputes, offsets, claims, counterclaims or expenses assermd against ChcckRitc by any customer of Merchant or other party with regard to any check written to Merchant or to any Service provided bemundcr or as n result of any breach of this Agreement by Mcrclmm. Liability of ChgckRitc (including its p~u~nts, ~ffili~es and subsidimics) in any and all cmggories and for any and all causes ~rising out of this Agreement shall, in thc aggregm¢, Bet exceed one ( 1 ) month's aYerage billing m Merchant t~kcn over thc lwelve (12) months preceding thc month in which thc damage or injury is alleged to have occurred, but if this Agreement has not been in effect for ~clve 02) months preceding such date, then over such fewer number of preceding months that this Agreement Ires been in effect. 11. RECOVERY IN EXCESS OF FACE VALUE. All recovery over thc f~ce value of thc check(s), including service charges, aV, omey fees, cour~ costs and damages, whether court-awarded or by setUemcnt, shall be relaincd by CbeckRitc or its dcaignatcd ~tomcy. 12. ADVERTISING. Mcrclumt shall use its best efforts to advertise the services provided by CheckRitc, including CbeckRitc's lradc name and logo in a form provided by ChcckRitc, with equal prominence to the displays of trade manes or loges of any other payment mcdi~. 13. RESOLUTION AND CONFLICTS. CheckRite reserves thc right to tcrminme this Agreement at any time upon written notice to Mcrehant. ChcckRitc shall have thc right to offset amounts duc IVlcrchants for recovered checks againsl any amounts duc ChcckRitc. CbeckRitc's continuation of performance thereafter shall not constitulc a waiver of any of CbeckRitc's rights under this Agreement and thc rights contained in this paragraph shall bc in addition to any other remedies at law or equity. i 4. NOTICES. Except as otherwise provided in this ^grecment, any notice required or given under this Agreement shall be in writing and shall be dccmcd validly given twenty-four (:24) hours aitcr deposit in thc first-class U.S. PosUd Service mail, post~gc prepaid; or, if by other means of notification, upon actual receipt o£dclivcry. Ali notices shall bc addressed and delivered to thc appropriate party at thc following offices: Presid,cnt, ChcckRitc, ?050 Union Park Center, Suite 200, lViidvalc. UT 84047 and Corporate Secretary, CheckRite, Two National Data Plaza, Atlanta, GA 30329-:2010. CheckRitc shall mail any notice in accordance with this paragraph to thc address found in thc "Merchant Information" section of this same Agreement. 15. MODIFICATIONS. This Agreement m-y be amended only in writing signed by ChcckRitc and Merchant, except that (a) any published instructions regarding thc Services may bc changed upon mn (10) days writlen notice to Merchant or (b) ChcckRitc may mail to Merchant, at least ten (10) days in advance, either a notice describing amendments to this Agreement or an entirely new Agreement, which amendment or new agreement will be binding upon Merchant if it submits a check for recovery after thc effective date of such amendment or new agreement as set forth in CheckRitc's notice. 16. MISCELLANEOUS. a) Neither party to this Agreement may assign its rights or obligations under this Agreement without thc express wriKcn consent of thc other party, except that thc obligations of ChcckRitc under this ^grecmcnt may bc assigned, provided or fulfilled by any parent, subsidiary, affiliate, successor-in-interest, or subcontractor of ChcckRitc. This Agreement shall be binding upon and shall inure to thc benefit ofthe parties hereto and their respective heirs, successors and assigns. b) This Agreement shall be construed and interpreted in accordance with thc laws of thc State of Georgia, without regard to its conflicts of law provisions. c) This Agreement, Schedule A and others published instructions shall constitute thc entire understanding between thc parties and any other prior negotiations or prior ~,recmcnts shall be considered a nullity. d) If any ~crm, covenant or provision of this Agreement, or thc application thcreo£to any person or circumsUmce, shall to any extent be held by a court of competent jurisdiction to be invalid or uncnfurceablc, thc remainder of the ~crms o£this Agreement shall remain in full force and effect and shall in no way bc alTectcd or invalidated. c) Thc panics, wishing to Mford this Agreement maximum applicability to their relalionship, thcre£ore, agree to uphold its terms in any su~c where thc same may bc enforced. f) CbeckRitc*s failure to enforce or failure lo insisl upon strict compliance o£any term of this Agreement shall not constitute a waiver ofth~ term and shall not constitute a waiver o£any other provisions of thc ^grecment. g) Wbencvcr appropriate, as used herein, thc singular denotes thc plural and thc masculine denotes the feminine. h) ChcckRite assumes no responsibility for goods or services not covered by this Agreement. '17. SERVICE OPTIONS. Notwithslanding the ~ovc provisions of this Agreement, CbeckRitc agrees to provide or acknowledge of the following options as checked below. a) REFERRED CHECKS. Scat to Checkritc for normal recovery procedures via; O Bank Forwarding O US Mail or Delivery Service b) ACKNOWLEDGMENTS. Reports shall bc sent to Merchant by; O Mail O Fax. Fax #; c) REMI'iTANCES. On a monthly basis remittances will be; O Mailed to Merchan~ I~ Deposited Electronically (ACH) m Merchant's Business Account. d) RECOVERY SERVICES. Checks referred for recovery services include; O Pre-existing Checks I~1 Future Checks O Non-Compliance Guarantee Checks c) INVENTORY REPORTS. O Yes, I elect IO receive monthly inventory reports, i understand i will be billed thc appropriate amount for thc type of report I choose. CHECKRITE RECOVERY SERVICES, INC. MERCHANT Signature Signature Printed Nmnc Prin~ed Name~ Title Date Title. Da~c . Schedule A Merchant Number Poslagc and Handling Legal Processing Inventory Rcpotl Set-Up Fcc (Annual Fcc) (Annual Fee) (Monthly Fee) (Commission S~bedule) the face ~moun! of che~ks rm~ved within or upon 30 d~ys from date of check. ~"~% of the f~ce amount of checks received more dmn 30 d~ys fi.om the dine of check. Corporate Name DBA Address. City Stmc Zip.~ Contact Name(s) Phone #: (~). Fax #: ( ) Mailing Addre~ City, Suac .Zip.__ Rep Name: Rep Number: Pre-Existing Check Acknowledgement Number of Checks: Amoum of Checks: Special Instructions: Type of Business. SIC .Zip.__ CR.RECOVERY 0!-8/99 CITY COUNCIL LETTER Meeting of · September 25, 2000 AGENDA SECTION' CONSENT ORIGINATING DEPT.' CITY MANAGER ~A'~ ASSESSING APPROVAL NO' ASSESSMENT LEVY HEARING NO: DATE. 9-18-2000 The City Council has, on an annual basis, conducted a special assessment levy hearing in the month of November. Staff is recommending Monday, November 20, 2000, at 7.00 P.M. for Council's consideration. RECOMMENDED MOTION: Move to establish Monday, November 20, 2000, at 7:00 P.M. as the Public Special Assessment Levy Hearing to be held in the City Council Chambers. ca11 levy. let COUNCIL ACTION' CITY COUNCIL LETTER Meeting of: September 25, 2000 AGENDA SECTION: CONSENT ORIGINATING DEPARTMENT: CITY MANAGER APPROVAL NO: ~\- ~- ~i Fire ITEM: Approval of Rental Housing License BY: Dana Alexon BY:~//~.~.~ Applications NO: DATE: September 20, 2000 DATE: Approval of the attached list of rental housing license applications, in that they have met the requirements of the Housing Maintenance Code. RECOMMENDED MOTION: Move to approve the items as listed on the rental housing license agenda for September 25, 2000. COUNCIL ACTION: Columbia Heights Fire Dept Occupany I.D. Property Owner Name Property Address Permit # 10503 Anoka County Community Action 4411 Main Street F4401B 30151 Lynde Investments Company 5121 University Avenue F43871 34005 C.H. Properties 4655 5th Street F4438 20078 Gary Anderson 4630 Taylor Street F4174 30101 Haji Azam 4655 Pierce Street F4264 12113 Morris Ballingrud 3940 Johnson Street F4349 30004 Irving Bassin 543 40th Avenue F4064 30170 Richard Berg 4233 3rd Street F4235A 10038 Allen Bestland 838 41st Avenue F4361 12216 Steve Bethel 4557 Fillmore Street F4233 12049 Mark Boege 4127 2nd Street F4165 10501 Kopacek Carrie 1321 45-1/2 Avenue F4401A 12196 Bryan Clem 3976 Van Buren Street F4232 20062 David Corbin 1013 43-1/2 Avenue F4444 20051 Marilyn Dalseth 4539 Fillmore Street F4412 20015 James Dickinson 1725 37th Avenue F4409 12052 Nathan Duncanson 4803 7th Street F4138 20325 Vern Elstad 4641 Taylor Street F4432 12088 Gilbert Evans 1717 37th Avenue F4039 12088 Gilbert Evans 1717 37th Avenue F4326 12204 Joel Fantle 3982 Tyler Street F4189 34010 Dennis Ferrara 1731 37th Avenue F4313 12007 Bruce Fischbach 4212 Washington Street F4433 09/20/200013:37Page1 Columbia Heights Fire Dept Occupany I.D. Property Owner Name Property Address Permit # 20050 David Fisher 4657 5th Street F4099 12066 Willam Franz 3830 3rd Street F4054 20053 Raymond Fritz 1332 Circle Terrace F4256 10070 Lawerence Gamer 3740 2nd Street F4167 30094 Charles Gramith 529 Mill Street F4056 20175 Gerald Grote 4144 Quincy Street F4395 30051 Bernard Gulland 970 43-1/2 Avenue F4338 12182 Chad Habeck 1343 Circle Terrace F4341 12182 Chad Habeck 1343 Circle Terrace T3553 12123 Stephen Hague 4110 Madison Street F44'15 30060 Paul Haines 4225 Central Avenue F4333A 30152 Paul Haines 4229 Central Avenue F4333 30074 Edwin Hansen 4534 Madison Street F4207 12019 Tod Hanson 4918 Tyler Street F4258 20142 Bette Harlan 5110 Washington Street F4144A 20144 Bette Harlan 5146 Washington Street F4144B 20146 Bette Harlan 5037 Jackson Street F4144E 20152 Bette Harlan 5140 Washington Street F4'144C 20154 Bette Harlan 5200 Washington Street F4144 20024 Jay Harris 1065 Polk Place F4429 12068 Diaa Hassan 4317 3rd Street F4151 12032 Adel Hegazi 1333 Circle Terrace F3697 12032 Adel Hegazi 1333 Circle Terrace F4139 09/20/200013:37Page2 Columbia Heights Fire Dept Occupany I.D. Property Owner Name Property Address Permit # 12106 Kenneth Henke 4427 2-1/2 Street F4284B 20066 Kenneth Henke 4433 2-1/2 Street F4284A 12086 Gladys Henry 3813 Pierce Street F4286 20003 Mark Hess 4029 2nd Street F4168 12124 Mike Hozempa 3804 3rd Street F4455 10030 Daniel Iverson 4153 4th Street F4308 12054 Jerald Janson 1268 Circle Terrace F4383 12078 Jane Johnson 5033 Jackson Street F4311 20068 Michael Johnson 4919 Jackson Street F3691 20068 Michael Johnson 4919 Jackson Street F4173 20299 Gerald Johnson 4655 Polk Street F4367 30115 Douglas Jones 4615 Tyler Street F4180 20049 Nurhan Kasar 1215 Circle Terrace F4262 12126 Amy Knoll 4817 5th Street F4273 12120 Robert Koponen 1035 Polk Place F4414A 20238 Robert Koponen 3930 Johnson Street F4414B 30024 Margaret Kortas 4308 4th Street F4436 20180 Ken neth Koster 5152 Washington Street F4128 30023 Harvey Kowalzek 4226 4th Street F4287 20418 David Lange 1231 Circle Terrace F4094C 30042 David Lange 1026 40th Avenue F4094B 09/20/200013:37Page3 Columbia Heights Fire Dept Occupany I.D. Property Owner Name Property Address Permit # 10024 Leon Larson 1221 43rd Avenue F4126 30169 Richard Larson 4201 3rd Street F4280 10059 Brian LeMon 5140 7th Street F4251 12197 Timothy Leland 5116 Washington Street F422'1 20036 Joe Maciaszek 4351 Washington Street F4260B 20037 Joe Maciaszek 4357 Washington Street F4260A 20074 John Majewski 5111 Washington Street F4336 20074 John Majewski 5111 Washington Street T3498 30116 Mary Marth 4619 Tyler Street F4'177 20044 Edwin Matthes 5229 7th Street F4116 20027 Joesph McGregor 1222 45-1/2 Avenue F4397 30164 Richard Meissner 4643 Pierce Street F40'14 30164 Richard Meissner 4643 Pierce Street F4263 12174 Kenneth Myhre 1143 Cheery Lane F4368 20054 Richard Olin 5218 Washington Street F4198 34001 Feriz Palic 3835 Tyler Street F4161 30006 Theodore Parker 3839 Tyler Street F4201 20183 Darwin Peterson 5228 Washington Street F4127 30119 Robert Prior 4628 Tyler Street F3996B 30119 Robert Prior 4628 Tyler Street F4205 30121 Robert Prior 4634 Tyler Street F3996A 09/20/200013:37Page4 Patty Muscovitz- 9 25 00.RTF ............... Page 5 Columbia Heights Fire Dept Occupany I.D. Property Owner Name Property Address Permit # 30121 Robert Prior 4634 Tyler Street F4205A 12165 John Ranweiler 4648 Taylor Street F4407 30077 Ku Richard 4550 Madison Street F4181 30077 Ku Richard 4550 Madison Street P3956 20096 Mohmoud Rifai 1201 37th Avenue F4334 20098 Mahmoud Rifai 1137 37th Avenue F4335 34011 Joanna Rocha 501 Mill Street F4322 12115 Linda Rogers 1057 Polk Place F4374 12194 Albertine Rotimi 1401 Parkview Lane F3623 12194 Albertine Rotimi 1401 Parkview Lane F4062 12107 Cheryl Salchow 4660 Taylor Street F4417 30118 Lloyd Sathre 4625 Tyler Street F4197A 30120 Thomas Sathre 4633 Tyler Street F4197 12058 Ronald Schloesser 4217 2nd Street F4170 30113 Maumer Sekizovic 4357 Tyler Place F4'178 30113 Maumer Sekizovic 4357 Tyler Place P4178 12173 Martin Sieger 1237 43-1/2 Avenue F4442 10017 Richard Stueland 1035 45th Avenue F4375 20012 Vickie Tierney 5252 Washington Street F4152 10043 Bernard Ubl 3707 Johnson Street F4354 20070 Stanley Van Blaricom 4500 Tyler Street F4278 09/20/200013:37Page5 Columbia Heights Fire Dept Occupany I.D. Property Owner Name Property Address Permit # 20071 Stanley Van Blaricom 4507 Taylor Street F4402A 20073 Stanley Van Blaricom 4529 Taylor Street F4402C 20009 Larry Wakeman 4606 4th Street F4451 30065 Arnold Weckwerth 3857 Edgemoor Place F4241 20243 Anthony Wojciak 4628 Johnson Street F4378 30130 Y.A.M. Inc. 4622 Tyler Street F4304 30158 Y.A.M. Inc. 4616 Tyler Street F4306 12122 Joseph Yang 3902 Reservoir Blvd F4166 20002 Mark Youngren 3816 3rd Street F4200 10052 Robert Zschokke 3823 Polk Street F4217 10058 Robert Zschokke 1827 41 st Avenue F4217A Dana Alexon, Assistant Fire Chief 09/20/200013:37Page6 CITY COUNCIL LETTER Meeting of: September 25, 2000 AGENDA SECTION: t~[_ /l ~~ ORIGINATING DEPT.: ~_ CITY MANAGER NO: __ License Department APPROVAL ITEM: License Agenda BY: Kathryn Pepin ~ DATE: NO: DATE: September 22, 2000 BY: BACKGROUND/ANALYSIS Attached is the business license agenda for the September 25, 2000 City Council meeting. The applications for Contractors are new applicants and are recommended for approval. At the top of the license agenda you will notice a phrase stating ~*Signed Waiver Form Accompanied Application". This means that the data privacy form has been submitted as required. If not submitted, certain information cannot be released to the public. RECOMMENDED MOTION: Move to approve the items as listed on the business license agenda for September 25, 2000. COUNCIL ACTION: TO CITY COUNCIL September 25, 2000 *Signed Waiver Form Accompanied Application 2000 BUSINESS LICENSE AGENDA APPROVED BY CONTRACTORS ADDRESS FEES BUILDING OFFICIAL *G.W. Cook Construction *Crown Masonry *R & C Erickson Ent. *Owens Companies, Inc. *S & S Plumbing 3133 Nicollet Ave. S. 4100 Excelsior Blvd. 20540 Polk St. N.E. 930 E. 80"5 St. 8374 Windbreak Tr. N. ,~50.00 50.00 50.00 50.00 50.00 license, ag BRC FINANCIAL SYSTEM 09/22/2000 08:56:42 FUND RECAP: FUND DESCRIPTION t01 GENERAL 201 COML~3NITY DEVELOPMENT FUND 202 ANOKA COUNTY CDBG 203 P~KVIEW VILLA NORTH 204 ECONOMIC DEVELOPMENT AUTH 205 SECTION 8 213 PARKVIEW VILLA SOUTH 225 CABLE TELEVISION 235 RENTAL HOUSING 240 LIBP~ARY 250 COL HGHTS AFTER SCHOOL ENRI 278 JUVENILE JUSTICE GRANT 401 CAPITAL IMPROVEMENTS 402 STATE AID CONSTRUCTION 405 DOWNTOWN MAINTENANCE 415 CAPITAL IMPROVEMENT - PIR 431 CAP EQUIP REPLACE-GENERAL 601 WATER UTILITY 602 SEWER UTILITY 603 REFUSE FUND 609 LIQUOR 652 SEWER CONSTRUCTION FUND 701 CENTRAL GARAGE 720 DATA PROCESSING 881 CONTRIBUTED PROJECTS-REC 884 INSURANCE 885 ESCROW 887 FLEX BENEFIT TRUST FUND TOTAL ALL FUNDS Check History DISBURSEMENTS 38,612.08 12,529.03 95,765.25 13,004.89 3,645.25 2,944.00 4,798.54 5,338.11 158.63 9,446.06 38.65 49.77 1,933.74 48,896.59 3,958.91 380,569.64 14,807.76 69,870.62 54,207.41 101,811.00 319,010.37 5,007.11 6,908.54 668.88 1,103.09 12,588.33 211,148.70 1,164.75 1,419,985.70 CITY OF COLUMBIA HEIGHTS GL060S-V06.27 RECAPPAGE GL540R BANK RECAP: BANK NAME ................................ BANK CHECKING ACCOUNT TOTAL ALL BANKS DISBURSEMENTS 1,419,985.70 1,419,985.70 BRC FINANCIAL SYSTEM 09/22/2000 08 Check History 9/25/00 COUNCIL REPORT CITY OF COLUMBIA HEIGHTS GL540R-V06.27 PAGE 1 BANK VENDOR CHECK NUMBER AMOUNT BANK CHECKING ACCOUNT AARP 88276 350.00 ALL SAINTS BRAND DISTRIB 88277 825.75 ATLAS AUTO BODY 88278 965.64 BAKER & TAYLOR 88279 299.57 BELLBOY BAR SUPPLY 88280 674.48 BELLBOY CORPORATION 88281 12,321.80 CHISAGO LAKES DISTRIBUTI 88282 3,299.05 CITY OF NEW HOPE 88283 580.00 COCA-COLA BOTTLING MIDWE 88284 1,523.42 COLUMBIA HEIGHTS I 88285 11,745.69 CURLEY/SARAH 88286 12.50 DAMEROW/LOREN & LOIS 88287 92.00 DAMIELSON/KAREN 88288 30.00 DAVES SPORT SHOP 88289 255.40 EAGLE WINE COMPANY 88290 2,940.02 EAST SIDE BEVERAGE CO 88291 57,347.90 EDLUND/DORINDA 88292 274.87 EGGE/JAMES 88293 442.00 EXTREME BEVERAGE 88294 58.00 FRED PRYOR SEMINARS 88295 79.00 GENUINE PARTS/NAPA AUTO 88296 80.64 GRIGGS-COOPER & CO 88297 8,798.20 HOHENSTEINS INC 88298 6,810.25 INSIDE CORNER UMPIRES 88299 608.00 JOHNSON BROS. LIQUOR CO. 88300 9,345.72 JOHNSON PAPER & SUPPLY C 88301 311.13 JOLLY/DONALD 88302 28.49 KHAN/MUJTAEA 88303 528.00 KUETHER DIST. CO. 88304 56,835.59 MARK VII DIST. 88305 25,622.56 MENARDS CASHWAY LUMBER-F 88306 76.36 MN DEPT OF REVENUE 88307 7,321.00 MN FALL MAINTENANCE EXPO 88308 315.00 NEW FOGEY FOLLIES 88309 526.50 NORTH STAR ICE 88310 1,579.48 NORTHWEST ASPHALT MAINTE 88311 3,508.26 PAUSTIS & SONS 88312 288.50 PENN CONTRACTING INC 88313 4,507.11 PEPSI-COLA-7 UP 88314 390.37 PETTY C~H - CINDI WILLP 88315 26.45 PETTY CASH - KAREN MOELL 88316 93.36 PETTY CASH - MARY DUGDAL 88317 133.71 PHILLIPS WINE & SPIRTS 88318 7,202.95 PINNACLE DISTR 88319 227.75 PRIOR WINE 88320 3,066.44 PRO TUFF DECALS 88321 653.99 QUALITY WINE & SPIRITS 88322 9,144.16 BRC FINANCIAL SYSTEM 09/22/2000 08 Check History 9/25/00 COUNCIL REPORT CITY OF COLUMBIA HEIGHTS GL540R-V06.27 PAGE 2 BANK VENDOR CHECK NUMBER AMOUNT BANK CHECKING ACCOUNT SAMS ~6310 88323 80.61 SLOWIK/MARY 88324 32.50 SORENSON/DALE 88325 74.50 ST PAUL-WC/THE 88326 8,123.83 STEFFEN/DEBORAH L 88327 74.66 SUBURBAN UTILITIES SUPTS 88328 75.00 THOMPSON/CH~LRLIE 88329 215.23 TRISKO/FRANK 88330 294.00 VERIZON WIRELESS 88331 147.48 WINE COMP~ff/THE 88332 978.18 WINE MERCHANTS 88333 221.38 WORLD CLASS WINE 88334 887.00 ACCAP 88335 658.00 ACE HARDWARE 88336 18.15 AT & T CONSUMER LEASE 88337 47.82 BkKER/NORMA 88338 12.20 BORIS/JUDY 88339 30.00 CITY WIDE WINDOW SERVICE 88340 24.50 GENUINE PARTS/NAPA AUTO 88341 63.28 GIBSON/ERIC 88342 215.01 GROSSE/PAUL 88343 89.33 HARRIS % EUGENE H~RRIS/M 88344 40.81 IPC PRINTING 88345 49.87 MAGEE/LINDA 88346 841.46 MEDICINE LAKE TOURS 88347 5,220.00 MIMNEGASCO 88348 26,18 MN AMERICAN PLANNING ASS 88349 140,00 MOELLER/K~REN 88350 163,87 N S P 88351 3,599,51 NAUS/JUDY 88352 221,56 ORCHARD TRUST COMPANY 88353 6,586,50 PETTY CASH - JOANNE BANE 88354 80,33 PETTY CASH - KAREN MOELL 88355 75,22 PHILLIPS WINE & SPIRTS 88356 11,495,88 PLYMOLrfH PLAYHOUSE 88357 100,00 PROVIS CORP 88358 97.50 QUALITY WINE & SPIRITS 88359 229.67 SEKIZOVIC/MAUMER 88360 364.00 STEEL TECH INC 88361 47.03 ACCAP 88362 658.00 AFFINITY PLUS FEDERAL CR 88363 484.77 AFSCME 88364 954.46 DELTA DENTAL 88365 4,289.64 FIRST COMMUNITY CREDIT U 88366 1,910,00 ICMA RETIREMENT TRUST 45 88367 10,550,05 MINNESOTA DRA USER'S GRO 88368 30,00 MN CHILD SUPPORT PAYMENT 88369 808,16 BRC FINANCIAL SYSTEM 09/22/2000 08 Check History 9/25/00 COUNCIL REPORT CITY OF COLUMBIA HEIGHTS GL540R-V06.27 PAGE 3 BANK VENDOR CHECK NUMBER AMOUNT BANK CHECKING ACCOUNT NCPERS GROUP LIFE INS 39 88370 294.00 NORWEST BANK - PAYROLL A 88371 146,940.61 ORCHARD TRUST COMPANY 88372 6,662.20 PERA 88373 24,730.97 RAMSDELL SCHOLARSHIP FUN 88374 54.25 RELIASTAR EMPLOYEE BENEF 88375 1,541.60 STANDARD INSURANCE COMPA 88376 856.97 UNION 49 88377 609.00 UNITED WAY 88378 47.00 WI DEPARTMENT OF REVEIfJE 88379 133.95 A & C SMALL ENGINE 88380 40.06 AAA AWARDS 88381 38.00 ACE HARDWARE 88382 524.25 ACE SUPPLY COMPANY INC 88383 253.38 ADAM'S PEST CONTROL, INC 88384 66.56 AID ELECTRIC SERVICE INC 88385 1,940.29 ALL SAINTS BRAND DISTRIB 88386 454.40 AMERIPRIDE 88387 122.75 ANOKA COUlfI7 LIBRARY 88388 105.84 ANOKA CTY - CENTRAL COMM 88389 231.33 ASPEN MILLS, INC. 88390 415.50 BAKER & TAYLOR 88391 4,193.07 BAKERS SQUARE 88392 60.41 BARNA GUZY & STEFFEN LTD 88393 19,815.54 BARNES & NOBLE 88394 67.64 BATTERY CITY INC 88395 132.10 BFI/WOODLAKE SANITARY SE 88396 101,778.84 BIFF'S,INC. 88397 745.31 BITUMINOUS RO~WAYS, INC 88398 47.30 BLACKBOURN MEDIA PACKAGI 88399 46.50 BLUE RIBBON CHEM-DRY 88400 90.52 BOOK WHOLESALERS INC 88401 83.96 BROOKDALE DODGE 88402 508.60 BRW INC 88403 48,549.79 CAPSTONE PRESS INC 88404 298.27 CCP INDUSTRIES 88405 215.16 CENTER FOR ENERGY/ENVIRO 88406 95,765.25 CENTRAL LOCK & SAFE 88407 42.19 CHISAGO L;~<ES DISTRIBUTI 88408 2,686.85 CITIES 97 88409 3,120.00 COCA-COLA BOTTLING MIDWE 88410 585.11 COLLECTOR BOOKS 88411 200.29 COLUMBIA HEIGHTS RENTAL 88412 67.10 COLUMBIA PARK MEDICAL GR 88413 3,958.91 COMM CENTER 88414 435.70 CONSUMER GUIDE 88415 99.00 CONTRACT SOURCE INC 88416 475.00 BRC FINANCIAL SYSTEM 09/22/2000 08 Check History 9/25/00 COUNCIL REPORT CITY OF COLUMBIA HEIGHTS GL540R-V06.27 PAGE 4 BANK VENDOR CHECK NUMBER AMOUNT BANK CHECKING ACCOUNT CORPORATE EXPRESS 88417 9.83 CREIGHTON,BRADLEY & GUZZ 88418 3,998.65 CREST VIEW LUTHERAN HOME 88419 12,631.35 CSC CREDIT SERVICES 88420 30.00 DANKA 88421 27.00 DANKA OFFFICE IMAGING CO 88422 270.00 DAVIES WATER EQUIP CO. 88423 739.49 DCI INDUSTRIES LTD 88424 84.14 DEMCO 88425 13.90 DIAMOND VOGEL PAINTS 88426 82.22 DRAIN DOCTOR 88427 118.50 EAGLE WINE COMPANY 88428 313.93 EAST SIDE BEVERAGE CO 88429 10,217.65 EHLER & ASSOCIATE-PUBLIC 88430 1,923.75 FADDEN PUMP 88431 93.18 FIDELITY SERVICES INC 88432 6,200.94 FOCUS NEWSPAPERS 88433 701.10 G & K SERVICES 88434 355.50 GALE GROUP/THE 88435 52.54 GILBERT MECHANICAL 88436 168.50 GLASS MASTERS 88437 626.25 GLENWOOD INGLEWOOD 88438 91.59 GRIGGS-COOPER & CO 88439 3,869.86 GUINEVERE PURCHASE 88440 500.00 HAPPEL DBA PLANSIGHT/JER 88441 5,256.25 H~3~DRIVES INC 88442 376,649.28 MATCH - PETERSON SALES 88443 676.70 HEIGHTS ELECTRIC INC. 88444 124.25 HITES FLORAL 88445 39.00 HOHENSTEINS INC 88446 2,132.80 HOME DEPOT #2802 88447 220.89 HOUCHEN BINDERY LTD 88448 130.75 HYDRANT SPECIALIST 88449 500.00 ICI DULUX PAINT CENTER 88450 582.02 INFO USA MARKETING INC 88451 545.00 INFRATECH 88452 500.00 INSTRUMENTAL RESEARCH IN 88453 484.75 J H LARSON ELECTRIC COMP 88454 471.90 JOE SCHMITZ BOOKSELLER 88455 19.57 JOHNSON BROS. LIQUOR CO. 88456 7,742.76 K MART 88457 67.58 KATH FUEL OIL SERVICE 88458 257.68 KENNEDY & GRAVEN 88459 1,348.15 KUETHER DIST. CO. 88460 36,609.85 LD~DERSOURCE 88461 2,500.00 LUBE-TECH 88462 251.16 MAC QUEEN EQUIPMENT CO. 88463 26.70 BRC FINANCIAL SYSTEM 09/22/2000 08 Check History 9/25/00 COUNCIL REPORT CITY OF COLUMBIA HEIGHTS GL540R-V06.27 PAGE 5 BANK VENDOR CHECK NUMBER AMOUNT BA/~K CHECKING ACCOUI~Ff ~CTA 88464 498.00 MARK VII DIST. 88465 4,779.45 MARSHALL CONCRETE PRODUC 88466 3,765.85 MARUDAS PRINTING 88467 45.80 MEDTOX LABORATORIES, tNC 88468 157.00 MENARDS CASHWAY LUMBER-F 88469 227.26 METROPOLITAN COUNCIL WAS 88470 52,752.00 MHSC ADVANCED DRIVING FA 88471 1,004.00 MIDWAY FORD 88472 28.78 MIDWEST TAPE 88473 138.96 MILLAR ELEVATOR SERVICE 88474 125.00 MINNEAPOLIS FINANCE DEPT 88475 59,223.74 MINN~POLtS OXYGEN CO. 88476 4.79 MINND~POLIS SAW CO. 88477 25.85 MINNESOTA SOCIETY OF CPA 88478 215.00 ~ SPOKESMAN-RECORDER 88479 102.34 MTI DISTRIBUTING 88480 14,807.76 NORTH STAR ICE 88481 581.68 OFFICE DEPOT 88482 457.81 PARK SUPPLY INC 88483 41.41 PEPSI-COLA-7 UP 88484 181.50 PHILLIPS WINE & SPIRTS 88485 9,759.34 PHYSICIANS DESK REFERENC 88486 87.28 PINKERTON SERVICE GROUP 88487 60.00 PINNACLE DISTR 88488 94.45 PPJ~CTITIONERS PUBLISHING 88489 146.97 PRIOR WINE 88490 883.51 RIME AUCTIONEER/MARK 88491 921.40 S R F CONSULTING GROUP I 88492 11,008.14 SCHINDLER ELEVATOR CORP 88493 180.51 SIGN SOLUTIONS, INC 88494 957.00 SOUTHERN ANOKA COUNTY CH 88495 32.00 SQUEEGEE PRO WINDOW CLFA 88496 t45.85 SROGA'S AUTOMOTIVE SERVI 88497 55.00 STREICHER GUN'S INC/DON 88498 15.92 SUN PUBLICATION 88499 311.50 SURPLUS SERVICES 88500 25.00 SYSTEMS SUPPLY INC. 88501 377.37 TAUTGES, REDPATH, & CO., 88502 65.00 TECHIF~ BUSINESS SYSTEM 88503 8.00 TUEBS/MARSHA 88504 17.97 UNIFORMS UNLIMITED INC 88505 31.95 UNITED RElf~ALS 88506 55.72 VALLEN SAFETY SUPPLY COM 88507 72.65 VALUE LINE PUBLISHING IN 88508 570.00 VIDEO BY CYCLING 88509 374.23 WASTE MANAGEMENT - ELK R 88510 32.16 BRC FINANCIAL SYSTEM 09/22/2000 08 Check History 9/25/00 COUNCIL REPORT BANK VENDOR BANK CHECKING ACCOUNT ZARNOTH BRUSH WORKS, INC ZEP MANUFACTURING COMPAN ZIEGLER INC CITY OF COLUMBIA HEIGHTS GL540R-V06.27 PAGE 6 CHECK N-~MBER AMOUNT 88511 264.12 88512 264.12 88513 42.14 1,419,985.70 *** PROCLAMATION POLISH AMERICAN HERITAGE MONTH PROCLAMATION OCTOBER, 2000 WHEREAS: October is Polish American Heritage Month, which is a national celebration of Polish Heritage; and WHEREAS: This observance also recognizes the Polish culture and pride in cooperation with the Polish American Congress and Polonia across America; and WHEREAS: the Polish American Heritage Month Committee is celebrating the Nineteenth Anniversary of its founding since being recognized in Philadelphia, Pennsylvania; and WHEREAS: The purpose of the Committee is to bring attention to the contributions of Poles and Polish Americans to the United States and world history; and WHEREAS: In 2000 the 209th Anniversary of Poland's Constitution is being observed; and WHEREAS: The Columbia Heights/Lomianki, Poland, Sister Cities International Committee has provided the following: Funds for a van for the Children's Hospital in Lomianki; Care for the planters at Murzyn Hall and Lomianki Park; Free classes for Polish Culture, Language and History; Books and videos for the City Public Library; Books to Lomianki's Schools & Library; Exhibits at City Hall and at the Library; Promoting the Polish Film Festival at the Heights Theater; and continual personal contacts with Lomianki through correspondence, personal visits and ham radio operators. WHEREAS: The City of Columbia Heights has many residents who take pride in their Polish heritage and ancestry, NOW THEREFORE BE IT RESOLVED, that, I, Gary L. Peterson, Mayor of the City of Columbia Heights, do hereby publicly proclaim recognition by designating the month of October, 2000 as POLISH AMERICAN HERITAGE MONTH in the City of Columbia Heights, Minnesota. Mayor, Gary L. Peterson City of Columbia Heights, Minnesota CITY COUNCIL LETTER Meeting of: September 25, 2000 AGENDANo: SECTION: PUBLIC HEARINGS ~ - A CITyORIGINATINGMANAGER'DEPARTMENTs: AP PP~DVA~L C I TY jFL~NAGER/'/S , At the Council Meeting of April 24, 2000, the City Council authorized publication of a Notice of Intent to Franchise, soliciting applications from qualified entities interested in constructing a cable system and providing cable service within the territorial limits of the City. The notice set forth a deadline of May 26, 2000, for receipt of applications. Moreover, the notice indicated the City would hold a public hearing on July 10, 2000, to consider any franchise applications it received. The City received two applications. The applications received were from: Wide Open West Everest Connections Corporation At the Council meeting of July 10, 2000, the Public Hearing was continued to September 25, 2000. Creighton, Bradley, and Guzzetta (the City's attorneys for cable-related matters) and staff are still in the process of reviewing the applications and the legal, technical, and financial qualifications of the applicants, and will be negotiating specific franchise terms and conditions for recommendation and presentation to the Telecommunications Commission and City Council. Staff recommend continuing the public hearing to Monday, November 27, 2000, at 7:00 p.m. RECOMMENDED MOTION: Move to continue the Public Hearing to consider the franchise applications of Wide Open West and Everest Connections Corporation to Monday, November 27, 2000, at 7:00 p.m. COUNCIL ACTION: CITY COUNCIL LETTER Meeting of September 25, 2000 AGENDA SECTION: ORIGINATING DEPARTMENT: CITY MANAGER NO: ~ ~ t~ Fire APPROVAL ITEM: RevocationCl°seHearing/Ad°ptRes°luti°nF°r BY: D anaAlexon BY: 4//rJ~ NO: 2000-68 DATE: September 20, 2000 DATE: Revocation of the license to operate a rental unit within the City of Columbia Heights is requested against Christopher Decker regarding rental property at 218-220 42nd Avenue for failure to meet the requirements of the Housing Maintenance Codes. Mayor: Close the public heating RECOMMENDED MOTION: Move to waive the reading of Resolution No.2000-68, there being ample copies available to the public. RECOMMENDED MOTION: Move to adopt Resolution No. 2000-68, Resolution of the City Council of the City of Columbia Heights Approving Revocation Pursuant to Ordinance Code Section 5A.408(1) of the Rental License held by Christopher Decker Regarding Rental Property at 218-220 42nd Avenue NE. COUNCIL ACTION: RESOLUTION 2000-68 RESOLUTION OF THE CITY COUNCIL FOR THE CITY OF COLUMBIA HEIGHTS APPROVING REVOCATION PURSUANT TO ORDINANCE CODE SECTION 5A.408(1) OF THAT CERTAIN RESIDENTIAL RENTAL LICENSE HELD BY CHRISTOPHER DECKER (HEREINAFTER "LICENSE HOLDER"). WHEREAS, LICENSE HOLDER IS THE LEGAL OWNER OF THE REAL PROPERTY LOCATED AT 218-220 421~ AVENUE, COLUMBIA HEIGHTS, MINNESOTA, AND WHEREAS, PURSUANT TO COLUMBIA HEIGHTS CODE SECTION 5.104(1)(A), WRITTEN NOTICE SETTING FORTH THE CAUSES AND REASONS FOR THE PROPOSED COUNCIL ACTION CONTAINED HEREIN WAS GIVEN TO THE LICENSE HOLDER ON AUGUST 21, 2000 OF A PUBLIC HEARING TO BE HELD ON SEPTEMBER 25, 2000. NOW, THEREFORE, IN ACCORDANCE WITH THE FOREGOING, AND ALL ORDINANCES AND REGULATIONS OF THE CITY OF COLUMBIA HEIGHTS, THE CITY COUNCIL OF THE CITY OF COLUMBIA HEIGHTS MAKES THE FOLLOWING: FINDINGS OF FACT 1. That on May 16, 2000, Steve Kolosky and Dan O'Brien, inspectors for the City of Columbia Heights, inspected the property and noted five violations. Compliance orders listing the violations were mailed by regular mail to the owner's agent in charge of the property at the address listed on the Rental Housing License Application. 2. That on July 6, 2000, Steve Kolosky and Dan O'Brien, inspectors for the City of Columbia Heights, inspected the property and noted that they were unable to get into both units to recheck the fiver violations and they noted one new violations. Compliance orders listing the violations were mailed by regular mail to the owner's agent in charge of the property at the address listed on the Rental Housing License Application. 3. That on August 21, 2000, Steve Kolosky and Dan O'Brien, inspectors for the City of Columbia Heights, inspected the property and were not met by the owner and noted that six violations remained uncorrected. Compliance orders listing the violations were mailed by regular mail to the owner's agent in charge of the property at the address listed on the Rental Housing License Application. 4. That on September 7, 2000, Steve Kolosky and Dan O'Brien, inspectors for the City of Columbia Heights, went to the property and performed a reinspection, inspectors noted that six violations remained uncorrected. Compliance orders listing the violations were mailed by certified mail to the owner's agent in charge of the property at the address listed on the Rental Housing License Application. 5. That based upon said records of the Enforcement Officer, the following conditions and violations of the City's Housing Maintenance Code were found to exist, to-wit: A. FAILURE TO CORRECT VIOLATION OF THE HOUSING MAINTENANCE CODE B. FAILURE TO SUBMIT REINSPECTION FEES OF $150.00 6 That all parties, including the License Holder and any occupants or tenants, have been given the appropriate notice of this heating according to the provisions of the City Code Section 5A.306(1) and 5 A.303(1)(d). CONCLUSIONS OF COUNCIL 1. That the building located at 218-220 42na Avenue is in violation of the provisions of the Columbia Heights City Code as set forth in the Compliance Order attached hereto; 2. That all relevant parties and parties in interest have been duly served notice of this heating, and any other heatings relevant to the revocation or suspension of the license held by License Holder. 3. That all applicable rights and periods of appeal as relating to the license holder, owner, occupant, or tenant, as the case may be, have expired, or such rights have been exercised and completed. ORDER OF COUNCIL 1. The rental license belonging to the License Holder described herein and identified by license number F4370 is hereby revoked/suspended (cross out one); 2. The City will post for the purpose of preventing occupancy a copy of this order on the buildings covered by the license held by License Holder; 3. All tenants shall remove themselves from the premises within 60 days from the first day of posting of this Order revoking the license as held by License Holder. Passed this __ day of ,2000 Motion by: Second by: Roll call: Mayor Gary L. Peterson Patricia Muscovitz, Deputy City Clerk CITY COUNCIL LETTER Meeting of: September 25,2000 AGENDA SECTION: ~ _~., ORIGINATING DEPT.: ~~ CITY,.--__~MANAGER NO: License Department APPROVAL ITEM: Ordinance pertaining to sections By: Kathryn Pepin NO: of the liquor licensing requirement~ DATE: September 20, 2000 BY: BACKGROUND/ANALYSIS Since March of this year, The License Committee has been conducting the process of review and rewrite of Chapter 5, Article V of the City Code pertaining to beer, wine and liquor licensing for the City of Columbia Heights. Staff has gathered similar ordinances from eleven other cities for comparison. Those city's are Andover, Anoka, Blaine, Brooklyn Park, Brooklyn Center, Coon Rapids, Crystal, Fridley, Golden Valley, Ling Lakes, Minneapolis. We also used Chapter 340A of State Statute to assure compliance with State law. Ordinance 141§ contains the rewritten sections pertaining to Club On Sale Liquor, On Sale Intoxicating Liquor, Sunday On Sale Intoxicating Liquor, and Temporary On Sale Intoxicating Liquor. We have combined the Sunday On Sale Club section with Sunday On Sale Liquor repealing the current Sunday Club Liquor section as the language for both was the same or similar. The Limited On Sale Liquor section has been combined into the On Sale Intoxicating Liquor section under 5.503(3). Section 5.505 pertaining to Limited On Sale Liquor is being repealed. The remaining sections have been significantly changed with a lot of old language eliminated that was not necessary or not in conformance with State Statute. In response to the City Council's concern with the 300 foot distance required currently for any beer, wine or liquor establishment, the License Committee found that the 300 foot requirement was the minimum distance of the eleven cities used in our comparison. It was the consensus of the License Committee to leave the 300 foot distance as currently stated. The ratio of food/liquor sales which currently requires 40% food sales has been increased to 60% food sales. The 60% ratio was the number used by more than half of the eleven cities. In addition, the food/ratio requirement will now be the same for all aspects of beer, wine or liquor establishments. The minimum seating requirement for on sale liquor is currently at 150 seats. The survey of the eleven cities showed that a variety of calculation methods were used including square footage of the entire building, the dining area, the seating, etc. After much discussion regarding future development and direction of the City, the 150 seat requirement is proposed to remain. On September 11, 2000 the City Council had the first reading of Ordinance//141 RECOMMENDATION: The License Committee feels that this finished product will best serve the needs of the City in implementation and enforcement of licensing rules and regulations regarding the sale of intoxicating liquor. RECOMMENDED MOTION: Move to waive the reading of Ordinance//1419 there being ample copies available to the public. RECOMMENDED MOTION: Move to adopt Ordinance//1419, being an ordinance amending Ordinance 853, City Code of 1977, pertaining to the amendment of certain sections of the licensing requirements of the city. COUNCIL ACTION: ORDINANCE NO. 1419 BEING AN ORDINANCE AMENDING ORDINANCE NO. 853, CITY CODE OF 1977, PERTAINING TO THE AMENDMENT OF CERTAIN SECTIONS OF THE LICENSING REQUIREMENTS OF THE CITY. The City of Columbia Heights does ordain: SECTION 2: Section 5.502 of Ordinance No. 853, City Code of 1977, pertaining to the licensing of Intoxicating Liquor, Club Sales which currently reads as follows to wit: 5.5020) On-sale licenses for the sale of intoxicating liquor may be issued to bona fide clubs, as defined herein, which have been in existence for fifteen (15) years or more, or to an incorporated congressionally chartered veterans organization which has been in existence for ten (10) years or more. (a) For purposes of this section, club shall be defined as any corporation duly organized under the laws of the State for civic, fraternal, social or business purposes or for intellectual improvement or for the promotion of sports, which shall have more than fifty members and which shall, for more than a year have owned, hired or leased a building or space in a building of such extent and character as may be suitable and adequate for the reasonable and comfortable accommodation of its members, and whose affairs and management are conducted by a Board of Directors, executive committee, or other similar body chosen by the members at a meeting held for that purpose, none of whose members, officers, agents or employees are paid directly or indirectly any compensation by way of profit from the distribution or sale of beverages to the members of the club, or its guests, beyond the amount of such reasonable salary or wages as may be fixed and voted each year by the Directors or other governing body. (b) The licenses issued shall be for sale of intoxicating liquors to club members and guests only. (c) The license fee shall be set by Resolution of the Council. In the absence of such Resolution, the license fee shall be $300.00 annually. 5.502(2) Any club as defined herein, may make application for such license. The application shall be made with the Clerk and shall contain the following information on a form described by the Minnesota Liquor Control Commissioner: (a) Name and address of club. (b) Date of Incorporation of club. (c) Certified copy of the Articles of Incorporation. (d) Certified copy of the By-Laws of the club, including therein a definition of the work "member". (e) A list of the membership. (f) A copy of the Charter, if any. (g) (h) (i) O) (k) (1) (m) (n) (o) (P) (q) (r) (s) 5.502(5) 5.502(6) (a) 0') 5.502(7) List of corporate officers and Board of Directors. A copy of Resolution of the club appointing a person to be in full charge of liquor operation. Copy of plat plan showing the size and location of building upon premises and occupied by the applicant. Description of off-street parking that is available. Zoning of land. Statement of Ownership of premises occupied by the applicant. A statement as to whether or not real estate and personal property taxes to the premises to be licensed are fully paid, and if not paid, the years and amounts of delinquency. Executed signature of an officer of the corporation. If a permit to the Federal Government is required, the application shall state whether such permit has been issued and if so, in what name. The true name of the person in charge. Place and date of birth of the person in charge. Residence street address of the person in charge of the liquor operation and whether the person in charge of the liquor operation is married or single. If married, the true name and place and date of birth and residence street address of the person and charge's spouse. Whether the person in charge and his spouse are registered voters in Anoka County and of Columbia Heights. Every applicant and licensee shall provide insurance in accordance with Section 5.503(15). The Clerk shall forward the license application to the Chief of Police for an investigation of the truthfulness of the statements set forth in the application. 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. The Chief of Police shall report and endorse his findings upon the application and return the same to the Clerk. The Clerk shall refer applications for an on-sale liquor license under this section to the Chief of the Fire Prevention Bureau and the Building Inspector for an inspection of the premises and a report indicating whether the premises are in compliance with applicable ordinances and regulations. No license shall be issued in violation of any of the provisions of Minnesota Statutes Chapter 340, which provisions shall govern over any contradiction or conflict in the interpretation of the provisions of this chapter. No on-sale license shall be granted to any club which does not have at the time of making its application, an unrevoked license issued by the city for the on-sale of non-intoxicating malt liquor, providing that if the said applicant, coincident with its application for an on-sale liquor license has made application and paid the fee for an on-sale beer license, and the same has been granted by the Council or is granted coincident with the granting of the application for an on-sale liquor license, said on-sale liquor license may be granted. No on-sale license shall be issued for any building, room or place within 600 feet of any public or parochial school, or church, said distance to be measured in a straight line fi.om the building in which such school or church is conducted and to the main public entrance to the premises for which the license is sought. 5.502(8) Clubs which are licensed pursuant to the provisions of this section shall be subject to the following regulations: (a) No sales of any intoxicating or non-intoxicating malt liquor or intoxicating liquor may be made (1) between 1:00 a.m. and 8:00 a.m. on the days of Tuesday through Saturday; (2) between 12:00 midnight and 8:00 a.m. on Mondays; (3) after 1:00 a.m. on Sundays; or (4) between 8:00 p.m. on December 24 and 8:00 a.m. on December 25. (b) Sales shall be made only to club members and their guests. (c) Liquor may only be sold at the premises designated in the license. (d) The Clerk shall be notified of any change in the person managing the liquor operations for the club. (e) The licensee shall at all times keep in full force and effect the bond or insurance as required by this section. Failure at any time to do so shall be grounds for immediate revocation of the license. (0 No licensee, or any agent or employee of such licensee shall violate any of the provisions of State law relating to the sale, possession, manufacture or transportation of liquor upon the premises of a licensee operating with a license issued pursuant to the provisions of this section. 5.502(9) Any on-sale license issued pursuant to the provisions of this section may be revoked or suspended for a violation by the licensee, or any agent or employee thereof, of any provision of the laws of the State of Minnesota relative to the sale, possession, manufacture, or transportation of liquor upon the premises of a club licensed pursuant to this section. (a) If such violation was not willful on the part of the licensee, the Council may suspend said license for a period of up to thirty (30) days for the first violation, or for a period of up to ninety (90) days for the second violation. (b) Any revocation or suspension under this section shall be invoked in accordance with the procedures prescribed by 5.104. 5.502(10) Any person violating any provision of this ordinance shall be guilty of a misdemeanor, and upon conviction thereof, shall be guilty of a misdemeanor, and upon conviction thereof, shall be punished by a fine of not more than $500.00 and imprisonment for not more than 90 days. SHALL HEREAFTER BE AMENDED TO READ AS FOLLOWS: 5.502(1) On-sale licenses for the sale of intoxicating liquor may be issued to bona fide clubs, as defined herein, which have been in existence for three (3) years or more, or to an incorporated congressionally chartered veterans organization which has been in existence for three (3) ten t,,,/years or more. (a) (-b-)-The licenses issued shall be for sale of intoxicating liquors to club members and guests only. The license fee shall be set by Minnesota State Statute ...... 11. · ....... j. No license will be issued unless at the time of application the applicant has paid the license fee in full and a non-refundable investigation fee as set by City Council resolution. Where all applicants are in-state, the investigation fee will be $500; where any applicants are out of state, the investigation fee shall be $2,000. If the investigation fee for in-state or out of state applicants exceeds the minimum fee, the additional costs of the investigation will be billed to the applicant(s). Upon rejection of any application for a license, or upon withdrawal of an application before approval of the issuance by the City Council, the license fee shall be refunded to the applicant. In any case, the investigation fee will be non- refundable. All licenses shall expire on the last day of December of each year. 5.502(2) Any club as defined herein, may make application for such license. The application shall be made with the Clerk and shall contain the following information in addition to on a form from describe6- by the Minnesota Liquor Control Commissioner: (a) (b) /-% ~,,~,d) Name and address of club. Date of and copy of Certificate of Incorporation of club or other documentation of legal status. Certified copy of the By-Laws of the club, including therein a definition of the word "member". A list of the membership. A copy of the Charter, if any. List of corporate officers, and Board of Directors and manager. I ...... -t'l')-----1..&.'---- -- -" &'L.. -- --1..1- .... .'--,~.'---- -- ........ * 1.-- .'-- e'.11 --'L. ..... -*"1' ........ * t'n .....J~'--l--& --1~-- -1. .... .'---- ,~.1.-- ..' .... J 1----~&.'---- ---r'1....'1.,1.' ........... ; ..... ..,! ...... .'--A 1.... ~I.. .... (g)(-})--Copy of Lease Agreement or Statement of Ownership of premises occupied by thc applicant. (h)(m-)-A statement as to whether or not real estate --'~...... 1 ....... '~,'~ ~ ........ v,,'v,~,,: taxes and local assessments for ~ the premises to be licensed ~e ~lly paid, ~d if not p~d, the ye~s ~d mounts which are unpaid~x--C.~zzaz~.~za~y.J--1: ....... (i)(-n-)--Executed signature of an officer of the corporation. /--% (J) Full legal name of applicant and applicants spouse, place and date of birth, street address of residence and length of time at that address of the applicant and applicant's spouse; and any other information deemed necessary by the City Council or issuing authority. /--% 1.. ~'L...' - of Cc~ ......... ,~,r:,, 5.502(3 and 4) Repealed 11/23/89 Ordinance 1190. 5.502(35) the time of filing an application for any on-sale intoxicating liquor license, the applicant shall file with the Clerk proof of financial responsibility for liability. The issuer or surety on any liability insurance policy or bond shall be duly licensed to do business in the State of Minnesota, and all documents shall be approved as to content, form and execution. The licensee and the City shall be named as joint insured on the liability insurance policy. The policy shall be effective for the entire license year or term of license. Proof of financial responsibility may be provided by supplying to the Clerk any of the following items: (a) A certificate that there is in effect for the license period an insurance policy providing at least $50,000 of coverage because of bodily injury to any one person in any one occurrence, $100,000 because of bodily injury to two or more persons in any one occurrence, $10,000 because of bodily injury to or destruction of property of others in any one occurrence, $50,000 for loss of means of support of any one person in any one occurrence, and $100,000 for loss of means of support of two or more persons in any one occurrence; or (b) A bond of a surety company with minimum coverages as provided in Section 5.502(5)(a), or (c) A certificate of the State Treasurer that the licensee has deposited with the State Treasurer $100,000 in cash or securities that may be legally purchased by savings banks or trust funds having a market value of $100,000. 5.502(4) The operation of an intoxicating liquor license without having on file at all times with the City the liability insurance policy or other evidence of financial responsibility required herein shall be grounds for immediate revocation of the license. Notice of cancellation of a current liquor liability policy serves as notice to the licensee of the impending revocation and unless evidence of compliance with the financial responsibility requirements of this section are presented to the Clerk before the termination is effective, the license will be revoked instantly upon the lapse in coverage. Any liability insurance required by this section must provide that it may not be canceled for: (a) Any cause, except for nonpayment of premium, by either the insured or the insurer unless the canceling party has first given thirty days' notice in writing to the issuing authority of intent to cancel the policy; and (b) Nonpayment of premium unless the canceling party has first given ten days' notice in writing to the issuing authority of intent to cancel the policy. 5.502(56) ao All applications shall be referred to the Chief of Police. The Chief of Police or his/her designee is empowered to conduct any and all investigations to verify the information on the application, including ordering a computerized criminal history inquiry obtained through the Criminal Justice System and/or a driver's license history inquiry as recorded by the State Department of Public Safety on the applicant. The application shall also be referred to the Chief of the Fire Department, the Building Official and the City Planning and Zoning Department for a report indicating whether said premises are in compliance with applicable ordinances and regulations. A public hearing shall then be held before the City Council, at which time the application for a license shall be considered. Opportunity shall be given to any person to be heard for or against the granting of the license at a public hearing. The City Council may accept or reject the license application in its discretion upon completion of the public hearing. Each license shall be issued to the applicant(s) only and shall not be transferable to another holder. Each license shall be issued only for the premises described in the application. 5.502(67) 8tat C1- ..... ,~ ~^ ...1-:_1- ..... :_: .... ~.~,1 ...................., .~:_,: non- dp No license shall be issued to any applicant for a location within 300 feet of any school or church, unless such license has been previously approved when no school or church was so situated. 5.502(78) Clubs which are licensed pursuant to the provisions of this section shall be subject to the following regulations: (a) No sales of any: ..... :--': ....... : ..... :--': .... ............. ~ ....... - ............. ~ ...... liquor or intoxicating liquor may be made {-1-) between 1:00 a.m. and 8:00 a.m. on the days of Monday Tucaday through Saturday, nor (-2-) between 1:00 a.m. and 12:00 noon on Sunday. (b) Sales shall be made only to club members and their guests. (c) Liquor may only be sold at the premises designated in the license. (d) The Clerk shall be notified of any change in the person managing the liquor operations for the club. [AX 5.502(89) Any on-sale license issued pursuant to the provisions of this section shall be subject to Section 5.503(11) of this ordinance, may ......... ....... :-- -c1: ........... 1. .....:.__ f -,-1. 1: .....a ~ ,t.' /--% /1_ % 5.502(9-1-0) Any person violating any provision of this ordinance shall be guilty of a misdemeanor, and upon conviction thereof, shall be punished as per State Statute "" - =-- -" ........ "-- ""~^"' ~'" --" :----' ....... " .......... 1.-- SECTION 3: Section 5.503 of Ordinance No. 853, City Code of 1977, pertaining to the licensing of Intoxicating Liquor Sales which currently reads as follows to wit: SECTION 3 INTOXICATING LIQUOR 5.503(1) Definitions shall be as follows: (a) The term intoxicating liquor shall mean and include ethyl alcohol and include distilled, fermented, spiritous, vinous, and malt beverages containing in excess of 3.2% of alcohol by weight. (b) The terms sale and/or sell mean and include all barters and all manners or means of furnishing intoxicating liquor or liquors as above described in violation or evasion of law and also include the usual meaning of terms. (c) The term on-sale means the sale of intoxicating liquor by the glass or by the drink for consumption on the premises only. (d) The term off-sale means the sale of intoxicating liquor in the original package in retail stores for consumption off or away from the premises where sold. (e) The terms package or original package means any corked or sealed container or receptacle holding intoxicating liquors. (f) The term hotel means and includes any establishment having a resident proprietor or manager, where, in consideration of payment thereof, food and lodging are regularly furnished to transients, which maintains for the use of its guests not less than one hundred (100) guest rooms with bedding and other usual suitable and necessary furnishings in each room, which is provided at the main entrance with a suitable lobby, desk, and office for the registration of its guests o on the ground floor, which employs an adequate staffto provide suitable and usual service, and which maintains under the same management and control as the rest of the establishment and has, as an integral pan thereof, a dining room with appropriate facilities for seating not less than one hundred (100) guests at one time, where the general public are, in consideration of payment thereof, served with meals at tables. (g) (i) The term restaurant means any establishment, other than a hotel under the control of a single proprietor or manager, having appropriate facilities for the serving of meals, and where, in consideration of payment therefor, meals are regularly served at tables to the general public, and which employs an adequate staff to provide the usual and suitable service to its guests. Such establishment shall have facilities for seating not less than one hundred fifty (150) guests at one time. At least forty percent (40%) of the annual receipts of the establishment must result from the sale of food. (ii) Any bowling alley with not less than fifteen (15) lanes and with appropriate facilities for the serving of food to not less than thirty (30) persons. Such establishment may include bowling receipts with food receipts for purposes of calculating the sixty percent (60%) food receipt requirement of Section 5.503(11)(p) and may include the area of its bowling lanes in the minimum dining area requirement for purposes of Section 5.503(10)(c). (h) The Twin City Metropolitan Area is defined as being comprises of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott and Washington Counties. (i) The term "interest" as used in this section includes any pecuniary interest in the ownership, operation, management or profits of a retail liquor establishment, but does not include bona fide loans; bona fide fixed sum rental agreements; bona fide open accounts or other obligations held with or without security arising out of the ordinary and regular course of business of selling or leasing merchandise, fixtures, or supplies to such establishment; or an interest often percent (10%) or less in any corporation holding a license. A person who receives moneys from time to time directly or indirectly from a licensee, in the absence of a bona fide consideration therefor and excluding bona fide gifts or donations, shall be deemed to have a pecuniary interest in such retail license. In determining "bona fide" the reasonable value of the goods or things received as consideration for any payment by the licensee and all other facts reasonably tending to prove or disprove the existence of any purposeful scheme or arrangement to evade the prohibitions of this section shall be considered. 5.503(2) No person except wholesalers or manufacturers to the extent authorized under state license shall directly or indirectly deal in, sell, or keep for sale any intoxicating liquor without first having received a license to do so as provided in this chapter. 5.503(3) Every application for a license shall be verified and filed with the City Clerk. 5.503(4) In addition to the information which may be required by the State Liquor Control Commissioner's form, the application shall contain the following: (a) Whether the applicant is a natural person, corporatiion, partnership, or other form of organization. (b) Type of license applicant seeks. (c) If the applicant is a natural person, the following information: (i) True name, place and date of birth, and street resident address of applicant. (ii) Whether applicant has ever used or been known by a name other than his true name and, if so., what was such name or names and information concerning dates and places where used. (iii) The names of the business if it is to be conducted under a designation, name or style other than the full individual name of the applicant, in such case, a copy of the certification as required by Chapter 333, Minnesota Statutes, certified by the Clerk of the District Court, shall be attached to the application. (iv) Whether applicant is married or single. If married, true name, place of birth, and street residence address of applicant's present spouse. (v) whether applicant and present spouse are registered voters, and, if so, where. (vi) Street addresses at which applicant and present spouse have lived during the preceding ten years. (vii) Kind, name and location of every business or occupation applicant or present spouse have been engaged in during the preceding ten years. (viii) Names and addresses of applicant's and spouse's employers and partners, if any, for the preceding ten years. (ix) whether applicant or his spouse or a parent, brother, sister, or child of either of them has ever been convicted of any felony, crime, or violation of any ordinance other than traffic. If so, the applicant shall furnish information as to the time, place and offense for which convictions were had. (x) Whether applicant or his spouse, or a parent, brother, sister, or child of either of them has ever been engaged as an employee or in operating a saloon, hotel, restaurant, caf6, tavern, or other business of a similar nature. If so, applicant shall furnish information as to the time, place, and length of time. (xi) Whether applicant has ever been in military service. If so, applicant shall, upon request, exhibit all discharges. (xii) The name, address, and business address of each person who is engaged in Minnesota in the business of selling, manufacturing, or distributing intoxicating liquor and who is nearer of kin to the applicant of his spouse than second cousin whether of the whole or half blood computed by the rules of civil law or who is a brother-in-law or sister-in-law of the applicant or his spouse. (d) If the applicant is a partnership, the names and addresses of all partners and all information concerning each partner as is required of a single applicant in Subsection C above. A managing partner or partners shall be designated. The interest of each partner in the business shall be disclosed. A true copy of the partnership agreement shall be submitted with the application; and if the partnership is required to file a certificate as to a trade name under the provisions of Chapter 333, Minnesota Statutes, a copy of such certificate certified by the Clerk of District Court shall be attached to the application. (e) If the applicant is a coproration or other organization and is applying for an on sale license, the following: (i) Name and if incorporated, the state of incorporation. (ii) A tree copy of Certificate of Incorporation, Articles of Incorporation or Association Agreement, and By-Laws and ifa foreign corporation a Certificate of Authority as described in Chapter 303, Minnesota Statutes. (iii) The name of the manager or proprietor or other agent in charge of the premises to be licensed, the assistant manager(s), the food manager(s), and the beverage manager(s), giving all the information about said person(s) as is required of a single applicant in Subsection C above. (iv) Notwithstanding the definition of interest as given in Section 1, Subdivision I above, the application shall contain a list of all persons who singly or together with their spouse or a parent, brother, sister, or child or either of them own or control an interest in said corporation or association in excess of five percent or who are officers of said corporation together with their addresses and all information as is required of a single applicant in Subsection C above. (f) The exact legal description of the premises to be licensed together with a plot plan of the area showing dimensions, location of buildings, street access, parking facilities, and the locations of distance to the nearest church building and school grounds. (g) An applicant for an on-sale license shall submit a floor plan of the dining room or dining rooms which shall be open to the public, shall show dimensions, and shall indicate the number of persons intended to be served in each of said rooms. (h) If a permit from the federal government is required by the laws of the United States, whether or not such permit has been issued and if so required in what name issued and the nature of the permit. (i) The amount of the investment that the applicant has in the business, building, premises, fixtures fumiture, stock in trade, etc., and proof of the source of such money. (J) The names and addresses of all persons other than the applicant who have any financial interest in the business, building, premises, fixtures, furniture, stock in trade; the nature of such interest, amount thereof, terms for payment, or other reimbursement. This shall include but not be limited to any lessees, lessors, mortgagees, mortagors, lendors, lein holders, trustees, trustors, and persons who have cosigned notes or otherwise loaned, pledged, or extended security for any indebtedness of the applicant. (k) The names, residences and business addresses of three persons of good moral character not related to the applicant or financially interested in the premises or business who may be referred to as to the applicant's character or, in the case of a manager, the manager's character. These referrals shall be residents of the Twin City Metropolitan Area unless either the applicant or the Columbia Heights Police Department can demonstrate to the Council that it would be preferable to have referrals from persons residing outside of Anoka County. (1) Whether or not all real estate and personal property taxes for the premises to be licensed which are due and payable have been paid and if not paid, the years and amounts which are unpaid. (m) Whenever the application for an on sale license to sell intoxicating liquor or for a transfer thereof is for premises either planned or under construction or undergoing substantial alteration, the application shall be accompanied by a set of preliminary plans showing the design of the proposed premises to be licensed. If the plans or design are on file with the Building and Inspection Division, no plans need be filed with the License Division. (n) Such other information as the City Council shall require. 5.503(5) Applications for the renewal of an existing license shall be made at least 60 days prior to the date of the expiration of the license. If, in the judgment of the City Council, good and sufficient cause is shown by an applicant for his failure to file for a renewal within the time provided, the City Council may, if the other provisions of this ordinance are complied with, grant the application. At the earliest practicable time after application is made for a renewal of an on sale license, and in any event prior to the time that the application is considered by the City Council, the applicant shall file with the City clerk a statement prepared by a certified public accountant that shows the total gross sales and the total food sales of the restaurant for the twelve-month period immediately preceding the date for filing renewal applications. A foreign corporation shall file a current Certificate of Authority. 5.503(6) If the application is by a natural person, it shall be signed and sworn to by such person; if by a corporation, by an officer thereof; if by a partnership, by one of the partners; if by an unincorporated association, by the manager or managing officer thereof. If the applicant is a partnership, the application, license and bond (or insurance policy) shall be made and issued in the name of all parmers. 5.503(7) License fees shall be as follows: (a) The initial license fee shall be paid in full before the application for a license is accepted. Renewal license fees shall be paid in full by December 20 preceding each license year. All fees shall be paid into the general fund of the City. All licenses shall expire on the last day of December of each year. Upon rejection of any application for a license, or upon withdrawal of application before approval of the issuance by the City Council, the license fee shall be refundedto the applicant. (b) The fee for an on sale license granted after the commencement of the license year shall be prorated on a daily basis. (c) When the license is for premises where the building is not ready for occupancy, the time fixed for computation of the license fee for the initial license period shall be 90 days after approval of the license by City Council or upon the date the building is ready for occupancy, whichever is sooner. (d) No transfer of a license shall be permitted from place to place or person to person without complying with the requirements of an original application except as provided by Section 4 of this ordinance. (e) No part of the fee paid for any license issued under this ordinance shall be refunded as a result of the suspension or revocation of a license under this ordinance. The City Council may in its judgment refund a pro rata portion of the fee paid for the unexpired portion of a license fee, when operation of the licensed business ceases not less than one month before the expiration of the license because of: (i) Destruction or damage of the licensed premises by fire or other catastrophe. (ii) The licensee's illness. (iii) A change in the legal status of the municipality making it unlawful for a licensed business to continue. (f) W here a new application is filed as a result of incorporation by an existing licensee and the ownership control and interest in the license are unchanged, no additional license fee will be required. (g) The annual licensee fee shall be set by Resolution of the Council. In the absence of a Resolution, the annual license fee shall be $5,000.00. 5.503(8) All applications shall be referred to the Chief of Police for investigation and to such other City Departments as the City Manager shall direct for verification and investigation of the facts set forth in the application and such other pertinent information as the Council, Manager, or Chief of Police shall deem necessary. No license may be issued unless at the time of application the applicant shall have paid an investigation fee as the Council shall set by Resolution. In the absence of any Resolution the fee shall be $500.00. The Council may waive a portion of the fee upon a finding that the application for a license is caused by a mere corporate reorganization with none of the owners of five or more percent interest holders changing. Provided, however, that such investigation fee shall be required because of a change in the ownership or control of a licensed corporation or because a person not previously listed in the original application shall seek to acquire or shall have acquired an interest of five percent or more of the ownership of the corporation. No investigation fee shall be charged simply because of the incorporation of an existing license without change of ownership, control and interest in the premises or license. At any time that an additional investigation is required because of an alteration, enlargement, or extension of premises previously licensed or a transfer fi.om place to place, the licensee shall pay an additional investigation fee of $100.00. Should the City Council find that an investigation is required outside the State of Minnesota, the Council may require an investigation fee of up to $10,000.00 or such lesser sum as the Council may set by Resolution. Upon completion of the investigation, the amount of such fee for an outside the state investigation not actually expended, including staff costs, shall be refunded to the applicant. 5.503(9) No license shall be granted to or held by any person: (a) Under nineteen (19) years of age. (b) Who is not of good moral character and repute. (c) Who, if an individual, is an alien. (d) Who within fifteen (15) years to the application for such license has been convicted of any willful violation of any law of the United States, the State of Minnesota, or any other State or Territory, or of violation of any local ordinance with regard to the manufacture, sale, distribution, or possession for sale or distribution of intoxicating liquor. (e) Who within fifteen (15) years prior to the application has had a license under the Intoxicating Liquor Act revoked for any willful violation of the laws or ordinances referred to in this Section. (f) Who is a manufacturer or wholesaler of intoxicating liquor and no manufacturer or wholesaler shall either directly or indirectly own or control or have any financial interest in any retail business selling intoxicating liquor. (g) Who is directly or indirectly interested in any other establishment in the City of Columbia Heights to which an on sale license has been issued under this ordinance. (h) Who is the spouse of a person otherwise ineligible for a license under this ordinance, or who is not the real party at interest or beneficial owner of the business operated, or to be operated, under the license. (i) Who, if the applicant is a partnership, has any partner who would be otherwise ineligible for a license under this ordinance. (J) Who, if a corporation, has an owner of a five or more percent interest who would be otherwise ineligible for a license under this ordinance. (k) Who is or has a proprietor or manager who is otherwise ineligible for a license under this ordinance. (1) A licensee who, at the time of application for renewal of a license, is not a resident of the Twin City Metropolitan Area. (m) Who, in the case of a partnership, at the time of application for renewal, does not have a managing panner who is a resident of the Twin City Metropolitan Area. (n) Who, in the case of a corporation, does not have a manager who is a resident of the Twin City Metropolitan Area at the time of renewal. (o) No person shall own an interest in more than one establishment or business within Columbia Heights for which an on sale license has been granted. 5.503(10) Places ineligible for license are as follows: (a) No license shall be granted, or renewed, for operation on any premises, on which taxes, assessments or other financial claims of the City or of the State are due, delinquent or unpaid. In the event an action has been commenced pursuant to the provisions of Chapter 278, Minnesota Statutes, questioning the amount or validity of taxes, the Council may, on application by the licensee, waive strict compliance with this provision; no waiver may be granted, however, for taxes or any portion thereof, which remain unpaid for a period exceeding one year after becoming due. (b) No license shall be issued for the premises owned by a person to whom a license may not be granted under this ordinance, except any owner who is a minor, alien, or a person who has been convicted of a crime other than a violation of Minnesota Statutes, Section 340.07 through 340.09. Provided, however, that no such person may have a financial interest in the operation of the business at such location. (c) No on sale license shall be granted for a restaurant that does not have a dining area, open to the general public, with a total minimum floor area of 3000 square feet or for a hotel that does not have a dining area open to the general public with a total minimum floor area of 2000 square feet. (d) No license shall be granted for any place which has a common entrance or exit between any two establishments except that a public concourse or public lobby shall not be construed as a common entrance or exit. (e) No license shall be granted for any hotel or restaurant building, the nearest point of which building structure is within 200 feet of the center of the main or front door of a church measured in a straight line. A church shall have only one main or front door for the purposes of this chapter. The erection of a church within a prohibited area or a change of location of a main or front door, after an original application has been granted, shall not, in and of itself, render such premises ineligible for renewal of the license. No license shall be granted for any hotel or restaurant building, the nearest point of which measured in a straight line, is within 300 feet of a school building. (f) No license shall be issued for premises other than a hotel or restaurant. (g) No license shall be granted for any premises which does not have a sprinkler system. 5.503(11) Conditions of license shall be as follows: (a) Every license shall be granted subject to the conditions of the following subdivisions and all other subdivisions of this ordinance and of any other applicable ordinance of the City or State law. (b) The license shall be posted in a conspicuous place in the licensed establishment at all times. (c) Any police officer, building inspector, or any employee so designated by the City Manager shall have the unqualified right to enter, inspect, and search the premises of the licensee during business hours without a warrant. (d) Every licensee shall be responsible for the conduct of his place of business and the conditions of sobriety and order in the place of business and on the premises. (e) No on sale licensee shall sell intoxicating liquor off sale. (f) No license shall be effective beyond the space named in the license for which it was granted. (g) No intoxicating liquor shall be sold or fumished or delivered to any intoxicated person, to any habitual drunkard, to any person under 19 years of age, or to any person to whom sale is prohibited by state law. (h) No person under 19 years of age shall be employed in any rooms constituting the place in which intoxicating liquors are sold at retail on sale, except that persons under 19 years of age may be employed to perform the duties of a busboy or dishwashing services in places defined as a restaurant or hotel or motel serving food in rooms in which intoxicating liquors are sold at retail on sale. (i) No equipment or fixtures in any licensed place shall be owned in whole or in part by any manufacturer or distiller of intoxicating liquor except such as shall be expressly permitted by state law. (J) No licensee shall sell, offer for sale, or keep for sale, intoxicating liquors from any original package which has been refilled or partly refilled. No licensee shall directly or through any other person delete or in any manner tamper with the contents of any original package so as to change its composition or alcoholic content while in the original package. Possession on the premises by the licensee of any intoxicating liquor in the original package differing in composition or alcoholic content in the liquor when received from the manufacturer or wholesaler from whom it was purchased, shall be prima facie evidence that the contents or the original package have been diluted, changed or tampered with. (k) No licensee shall apply for or possess a Federal Wholesale Liquor Dealer's special tax stamp or a Federal gambling stamp. (1) No licensee shall keep ethyl alcohol or neutral spirits which are not potable on his licensed premises or permit their use on the premises as a beverage or mixed with a beverage. (m) The business records of the licensee, including Federal and State tax returns, shall be available for inspection by the City Manager, or other duly authorized representative of the city at all reasonable times. (n) Changes in the corporate or association officers, corporate charter, articles of incorporation, by- laws or parmership agreement, as the case may be, shall be submitted to the City Clerk within 30 days after such changes are made. In the case of a corporation, the licensee shall notify the City Clerk when a person not listed in the application acquires an interest which, together with that of his spouse, parent, brother, sister or child, exceeds five percent (5%), and shall give all information about said person as is required of a person pursuant to the provisions of Section 4 of this ordinance. (o) At the time a licensee submits his application for renewal of a license, he shall state the nature and amount of may contribution he has made in the preceding five years for state and local campaign or political purposes, the person to whom the contribution was made and the person or organization for whom intended. (p) A licensed restaurant shall be conducted in such a manner that no less than forty percent (40%) of the business receipts for license year is the serving of foods. A hotel shall be conducted in such a manner that, of that part of the total business receipts attributable to or derived from the serving of foods and intoxicating liquors, no less than forty percent (40%) of the business receipts for a license year is the serving of foods. A bowling alley shall be conducted in such a manner that no less than sixty percent (60%) of the business receipts for the license year shall be derived from the serving of food and from bowling. (q) No licensee shall knowingly permit the licensed premises or any room in those premises or any adjoining building directly or indirectly under his control to be used as a resort for prostitutes. (r) No licensee shall keep, possess, or operate or permit the keeping, possession, or operation of any slot machine, dice, or any gambling device or apparatus on the licensed premises; and he shall not permit any gambling therein. Provided, however, that charitable gambling and charitable gambling devices shall be permitted only to the extent specifically authorized by resolution of the Council. (s) At the time of application for renewal of an application for an on sale license, the applicant shall submit proof to the City that during the license year immediately preceding the year for which the application is made: (i) in case of a restaurant, not less than forty percent (40%) of the gross sales of the establishment for which the on sale license is to be issued was from the serving of food, or (ii) in the case of a bowling alley, not less than sixty percent (60%) of the gross sales of the establishment for which the on sale license is to be issued was from bowling receipts and the serving of food. 5.503(12) No sale of intoxicating liquor for consumption on a licensed premises may be made (1) between 1:00 a.m. and 8:00 a.m. on the days of Tuesday through Saturday; (2) between 12:00 midnight and 8:00 a.m. on Mondays; (3) after 1:00 a.m. on Sundays; or (4) between 8:00 p.m. on December 24 and 8:00 a.m. on December 25. 5.503(13) No sale of intoxicating liquor shall be made to or in guest rooms of hotels unless the rules of such hotel provide for the service of meals in guest rooms or unles~ the sale of such intoxicating liquor is made in the manner on sales are required to be made or unless such sale accompanies and is incidental to the regular service of meals to guests therein or unless the rules of such hotel and the description, location, and number of such guest rooms are fully set out in the application for a license. 5.503(14) Restrictions on purchase and consumption are as follows: (a) No licensee, his agent, or employee shall serve or dispense upon the licensed premises any intoxicating liquor or nonintoxicating malt liquors to any person under the age of 19 years; nor shall such licensee, his agent, or employee permit any person under the age of 19 years to be furnished or consume any such liquors on the licensed premises; nor shall such licensee, his agent, or employee permit any person under the age of 19 years to be delivered any such liquors. (b) No person under 19 years of age shall misrepresent his age for the purpose of obtaining intoxicating liquor or nonintoxicating malt liquor nor shall he enter any premises licensed for the retail sale of intoxicating liquor or nonintoxicating malt liquor for the purpose of pumhasing or having served or delivered to him for consuming any such intoxicating liquor or beer nor shall any such person purchase, attempt to purchase, consume, or have another person purchase for him any intoxicating liquor of beer. (c) No person under 19 years of age shall receive delivery of intoxicating liquor. (d) No person shall induce a person under the age of 19 years to purchase or procure or obtain intoxicating liquor or nonintoxicating malt liquor. (e) Proof of age for purposes of consuming, purchasing, or possessing an alcoholic beverage the consumption, sale or possession of which is regulated by age may only be established by a valid driver license or a current non-qualification certificate issued pursuant to Minnesota Statutes, Section 171.07. Any person who may appear to the licensee, his employees, or agents to be under the age of 19 years shall upon demand of the licensee, his employee, or agent produce and permit to be examined his driver license or current nonqualification certificate which shall be imprinted by the licensee on forms described in Subdivision h hereof. Such imprintation shall be prima facie evidence that the licensee, his agent or employee, is not guilty of a violation of the above provisions and shall be conclusive evidence that a violation, if one has occurred, was not willful or intentional. (g) The above imprintation shall be made by means of a mechanical device capable of leaving a true and identical copy of the raised printing on the driver license or nonqualification certificate and shall not be merely a handwritten transcription of the license or certificate. (h) The form upon which the imprintation is to be made shall be furnished at cost to the licensees and may be used as evidence in any prosecution and by the City Council in any proceeding before the Council or a committee thereof relating to the business or operations of the licensee. Such forms shall be kept on file by the licensee for a period of one year after imprintation. The form shall consist of a statement of age, driver license number or nonqualifying certificate number. The following statements shall appear on the form and shall be read and signed, dated and witnessed: "Read carefully before signing: M.S.A. 360.731: "It shall be unlawful for any person to misrepresent or misstate his or her age or the age of any other person for the purpose of inducing any licensee or any employee of any licensee or any employee of any municipal liquor store to sell, serve, or deliver any alcoholic beverage to a minor". "M.S.A. 340.035: "It shall be unlawful for any minor to misrepresent his age for the purpose of obtaining nonintoxicating malt liquor." "I, by witness of my signature affixed, do hereby declare that I am 19 years of age or over and that the driver license or age credentials presented by me before signing this statement for the purchasing of beer or liquor belong to me and no other person". (i) No person shall give, sell, procure, or purchase intoxicating liquor to or for any person to whom the sale of intoxicating liquor is forbidden by law. (J) No person shall mix or prepare intoxicating liquor for consumption or consume in any public place not licensed in accordance with the ordinances of the City of Columbia Heights and State of Minnesota. (k) No intoxicating liquor shall be sold or consumed on a public highway or in an automobile. 5.503(15) Every applicant and licensee must file and maintain proof of financial responsibility with the city Clerk as follows: (a) A certificate that there is in effect for the license period an insurance policy or pool providing at least $50,000 of coverage because of bodily injury to any one person in any one occurrence, $100,000 because of bodily injury to two or more persons in any one occurrence, $10,000 because of bodily injury to or destruction of property of others in any one occurrence, $50,000 for loss of means of support of any one occurrence, and $100,000 for loss of means of support of two or more persons in any one occurrence; (b) A bond of a surety company with minimum coverages as provided in Section 5.503(15)(a), or (c) A certificate of the State Treasurer that the licensee has deposited with the State Treasurer $100,000 in cash or securities that may be legally purchased by savings banks or trust funds having a market value of $100,000. This section does not prohibit an applicant or licensee from posting limits higher than those required under this section in combination with other insurance coverage. The applicant and licensee must provide an annual aggregate policy limit dram shop insurance of not less than $300,000 per policy year. (d) Any insurance certificates or policies filed with the City shall provide that the insured or insurer may not cancel the policy, certificate or other coverage unless the canceling party has first given not less than 30 days written notice to the City of its intent to cancel the policy. Any certificate or policy posted in accordance with this section must show the names of the insurance company and agency, policy number, and policy expiration date. Receipt by the City of a notice of expiration of required insurance or certificates or of entry into the final 30 days of the term of any required policy or certificate without a renewal or other complying policy being filed with the Clerk shall result in the immediate revocation or suspension of the license. 5.503(16) The City Council may suspend or revoke any intoxicating liquor license for the violation of any provision or condition of this ordinance or of any State law or Federal law regulating the sale of intoxicating liquor, and shall revoke such license for any willful violation which, under the laws of the State, is grounds for mandatory revocation, and shall revoke for failure to keep the insurance required by Section 15 in full force and effect. Except in the case of a suspension pending a hearing on revocation, nonmandatory revocation or suspension by the Council shall be preceded by written notice to the licensee and a public hearing. The notice shall give at least ten days notice of the time and place of the hearing and shall state the nature of the charges against the licensee. The Council may, without any notice, suspend any license pending a hearing '~n revocation for a period not exceeding 30 days. The notice may be served upon the licensee personally or by leaving the same at the licensed premises with the person in charge thereof. No suspension after public hearing shall exceed 60 days. 5.503(17) Any person violating any provision of this ordinance shall be guilty of a misdemeanor, and upon conviction thereof, shall be punished by a fine of not more than Five Hundred ($500.00) Dollars and imprisonment for not more than 90 days. SHALL HEREBY BE AMENDED TO READ AS FOLLOWS: SECTION 3 INTOXICATING LIQUOR /1- \ (d) (i) 5.503(1~) No person, except wholesalers or manufacturers to the extent authorized by State Statute liccnac, shall directly or indirectly deal in, sell, or keep for sale any intoxicating liquor without first having received a license to do so as provided in this chapter. On-sale intoxicating liquor licenses may be issued to the following establishments: (a) (b) (c) (d) hotels; restaurants with minimum seating for 150 guests at one time and a dining area with a minimum floor area of 3,000 square feet; bowling centers with not less than fifteen lanes and with appropriate facilities for the serving of food to not less than 30 persons; clubs or congressionally chartered veterans organizations, with the approval of the commissioner, provided that the organization has been in existence for at least three (3) years; liquor sales only to members and bona fide guests. 5.503(2) On sale intoxicating liquor licenses shall be granted to establishments that derive at least sixty percent (60%) of the annual gross receipts from the sale of food. A hotel shall have a dining area providing seating for at least 75 guests at one time and a minimum often guest rooms, and of that part of the total business receipts attributable to or derived from the serving of foods and intoxicating liquors, no less than 60% of the business receipts from a license year must be attributable to the sale of food. A bowling center shall be conducted in such a manner that no less than sixty percent (60%) of the business receipts for the license year shall be derived from the serving of food and bowling. 5.503(3) A restaurant which contains a minimum of 3,300 square feet of building area located on the same floor with minimum seating for 150 guests at one time and a combined waiting and dining space with a minimum floor area of 2,000 square feet may make application for a Limited Intoxicating Liquor License provided that the premises does not contain an elevated counter, commonly known as a bar and meets the 60% requirements of 5.503(2). The annual license fee shall be set by resolution of the City Council. In the absence of a resolution, the license fee shall be $5500.00. 5.503(4) No license shall be granted for any premises which does not have a sprinkler system. 5 503(35) E ry ppli ti fo li -~--" ~- .... -'~'-,3 --,3 ~"-,3 --':'~- '~-- '~:'-' '~-~' ii i i ti g liquor on-sale shall be made on a form supplied by the City. Applications shall be filed with the Clerk. It shall be unlawful to make any false statement in an application. By submitting an application, the applicant consents to any and all investigations the City deems appropriate and waives any claims the applicant may have. Copies of the application shall be submitted to such other City departments as the City Council shall deem necessary for verification and investigation of the facts set forth in the application. 5.503(46) In addition to the information whir-may-be required by on the State Liquor Control Commissioner's form, the on-sale intoxicating liquor license application shall contain the following information: (a) Type of license applicant seeks. (a) (b) Whether the applicant is a natural person, corporation, partnership, or other form of organization. preceding, t,~-n ycara. (c) Full legal name of applicant and applicants spouse, place and date of birth, street address of residence and length of time at that address of the applicant and applicant's spouse; and any other information deemed necessary by the City Council or issuing authority. fi) Whether the applicant has ever used or been known by a name other than his/her true name, and, if so, what was such name or names and information concerning dates and places where used. (ii) Name of business. (iii) The nature of any other business to be operated in conjunction with the on-sale of intoxicating liquor and whether the applicant is the owner or operator of such other business, and if so, the length of time in such business. (iv) Street addresses at which applicant and current spouse have lived during the preceding ten years. (v) Kind, name and location of every business or occupation applicant or present spouse have been engaged in during the preceding ten years. (vi) Names and addresses of applicant's and spouse's employers and partners, if any, for the preceding ten years. (vii) Whether applicant or spouse has ever been convicted of any felony, crime, or violation of any ordinance other than traffic. If so, the applicant shall furnish information as to the time, place and offense for which convictions were had. (viii) Whether applicant or spouse has ever been engaged as an employee or in operating a bar, saloon, hotel, restaurant, caf6, tavern or other business of a similar nature. If so, applicant shall furnish information as to the time, place, and length of time. (ix) Whether applicant has ever been in military service. If so, applicant shall attach DD/214 form. (d) In the case of corporations, partnerships, or other form of organization, such information relating to the identity of each officer, director and partner as required in 5.503(5)(c). (e) If the applicant is a corporation or other organization and is applying for an on sale license, the following will be required: (1) Name and, if incorporated, the state of incorporation. (2) A true copy of Certificate of Incorporation or other documentation of legal status. An applicant for an on-sale license shall submit a floor plan of the dining room or dining rooms which shall be open to the public, shall show dimensions, and shall indicate the number of persons intended to be served in each of said rooms. /1.\ (g) Three character references located within the State of Minnesota. (h) Whether or not all real estate and pcrac~nal propc~y taxes and local assessments for the premises to be licensed which are due and payable have been paid and if not paid, the years and amounts which are unpaid. (i) Such other information as the City Council shall require. 5.503(37) Applications for the renewal of an existing license shall be made at Icaat a minimum of 60 days or to the date of the ext,,ration of the license. At the ....... practicable time,,.,.,-a-- application is made for a renewal of an on sale license, o...--" .,:- any cvc. nt --' .....~-- ,:--- ,,--, .,- .... ,:--,-'--: ..... :.~----, ~-.. ,,-- ~-'.-. ,~ ..... :~ the applicant shall file with the C-4-W Clerk a statement prepared by a certified public accountant that shows the total gross sales and the total food sales of the restaurant for the twelve-month period immediately preceding the date for filing renewal applicatio A lc, 'gn ~c, atlc, n ns. rcl cc, r 5.503(68) If the application is by a natural person, it shall be signed and sworn to by such person; if by a rp ti b ..... "~- .... '- .... '" :"'--' pa-W, l-,ip ~,j ..........v ....... , ,- ~,~ ........... t, ...... co ora. on, .~ ,,,, .,.,,.,., .,,.,,.,,,, ,, ,,j a cra , k...... CtL_----...* ..... .'.Cl. .......2 ....... *-- 1 organization, by an authorized representative of the same. 5.503(~9) T,_,,,.,.,o,._. ..... z'.,~.,.J'g' .... Ollr. l.,,.l!'--ll 1----U~, .gtO---- l%Jll'.,J W ~.~'--11 ...... No license will be issued unless at the time of application the applicant has paid the license fee in full and a non-refundable investigation fee as set by City Council resolution. In the absence ora resolution, the license fee shall be $6,500; where all applicants are in-state, the investigation fee will be $500; where any applicants are out of state, the investigation fee shall be $2,000. If the investigation fee for in-state or out of state applicants exceeds the minimum fee, the additional costs of the investigation will be billed to the applicant(s). A new application shall be submitted and a license fee and investigation fee paid when there is a change in ownership or control of a licensed corporation. Upon rejection of any application for a license, or upon withdrawal of an application before approval of the issuance by the City Council, the license fee shall be refimded to the applicant. In any case, the investigation fee will be non- refundable. The license fee for an on-sale license granted after the commencement of the license year shall be pro-rated on a monthly basis. All licenses shall expire on the last day of December of each year. /1-\ (-e-)-- (a) When the license is for premises where the building is not ready for occupancy, the time fixed for computation of the license fee for the initial license period shall be 90 days after approval of the license by City Council or upon the date the building is ready for occupancy, whichever is sooner. No transfer of a license shall be permitted from place to place or person to person without ....... : .3 ~..1 .. complying with the requirements of an original application, except ,,o v ....... b: (ii) Thc-' 5.503(10) Ali applications shall be referred to the Chief of Police. The Chief of Police or his/her designee is empowered to conduct any and all investigations to verify the information on the application, including ordering a computerized criminal history inquiry obtained through the Criminal Justice System and/or a driver's license history inquiry as recorded by the State Department of Public Safety on the applicant. The application shall also be referred to the Chief of the Fire Department, the Building Official and the City Planning and Zoning Department for a report indicating whether said premises are in compliance with applicable ordinances and regulations. A public hearing shall then be held before the City Council, at which time the application for a license shall be considered. Opportunity shall be given to any person to be heard for or against the granting of the license at a public hearing. The City Council may accept or reject the license application in its discretion upon completion of the public hearing. Each license shall be issued to the applicant(s) only and shall not be transferable to another holder. Each license shall be issued only for the premises described in the application. 5.503(911) No license shall be granted to or held by any person: (a) Under n-;nctccn,,,../" "' ....... ;,.~o ~,,~' ,~,,.--- Who is less than 21 years of age. (b) Who is not of good moral character and repute. (c) · ~,__ :,,__ :_~:..:,3.._1 : ....':-- Who is not a citizen of the United States or a resident alien, or upon whom it is impractical to conduct a background and financial investigation due to the unavailability of information. (d) Who has been convicted of a felony or any violation of law of this state or local ordinance relating to the manufacture, transportation or sale of beer, wine, or of intoxicating liquors. (e) For the sale of intoxicating liquor on any premises also oeeupiefl by a previous licensee who was convicted of a violation of this ordinance or where a license has been revoked by the City Council. (0 Who is a manufacturer ...... ..... ~-'~ ....... --'-,.,. , .~ liq 1...-.' ...... 112---- .'--&--..:----+.'---- 1: /1 .'X I ............. a pro ctor ,,, manager who i9 ~,th ...... ordinanc¢. Who is not the proprietor of the establishment for which the license is issued. (1) (n) (o) (h) Who is or during the period of this license becomes the holder of a federal retail liquor dealer's special tax stamp for the sale of intoxicating liquor at such place. (i) No license shall be issued to any applicant for a location within 300 feet of any school or church, unless such license has been previously approved when no school or church was so situated. (g) 5.503(12-1-1-) On sale intoxicating liquor licenses granted pursuant to the provisions of this section shall be subject to the following conditions: ,~..A:.: .... ,,,: ...... ,._,, ,._ __ ,,_,, ...... (a) Every license shall be granted subject to the conditions and provisions of this ordinance and of ~-~a ~"nll .... -' ..... LA-'..-'--' ..... ,1 --11 --d.1. ..... 1. A;...'--.' .... ~"4.L.'- ---- -' ....... ............. ~ ............................................... d .........d c,f any other applicable ordinances of the City or State law. (b) The license shall be posted in a conspicuous place in the licensed establishment at all times. (c) shall have the unqualified right to enter, inspect, and search the premises of the licensee during business hours without a warrant upon information or belief of a violation of Federal, State or local laws. Business hours sha{l be deemed any time when licensee or employees are present on the premises. Refusal to permit such inspection is a violation of this ordinance and grounds for revocation of license. (d) Every licensee shall be responsible for the conduct of his place of business and the conditions of sobriety and order in the place of business and on the premises. The act of any employee on the licensed premises authorized to sell intoxicating liquor there is deemed the act of the licensee as well, and the licensee shall be liable to all penalties provided by ordinance, statute, or regulation equally with the employee. (e) No on sale licensee shall sell intoxicating liquor off sale. (f) No license shall be effective beyond the space named in the license for which it was granted. (g) No intoxicating liquor shall be sold or fumished or delivered to any obviously intoxicated person, t,, any ................ , ....~ p ............. yearn c,f age, or to any person to whom sale is prohibited by state law. (h) No licensee shall permit 18, 19, or 20 year old persons to remain on the premises unless to perform work for the establishment including the sale or serving of alcoholic beverages, consume meals, and attend social functions that are held in a portion of the establishment where liquor is not sold. ,,T .......... ~,__, ,, ....... ,- .... ,__,, ,_ .... , .... .,: .......... .... *='a-..*.'---- .1.-- --1----- .' .... 1..'-1. ='__*--_.:~_~.='__ 1: ...........1.3 _~. ; .... 4. 2----a.2---- 12 ...........1..,1 -- ----~----'1 ---- 0)------(i)No licensee shall sell, offer for sale, or keep for sale, intoxicating liquors from any original package which has been refilled or partly refilled. No licensee shall directly or through any other person delete or in any manner tamper with the contents of any original package so as to change its composition or alcoholic content while in the original package. Possession on the premises by the licensee of any intoxicating liquor in the original package differing in composition or alcoholic content in the liquor when received from the manufacturer or wholesaler from whom it was purchased, shall be prima facie evidence that the contents or the original package have been diluted, tampered with or changed. (J) (o) (r k) 1 ......... .-a. .... 1-.' ........ .t. __ ~.1- ......... 1--- -1..--11 1- .... 1-__:4./.._-1 ._ 4.1-_ t'~.'4... · .,1~..~ --"" ...... 1- ~1,. .......... .3- T-- 4.1- ...... .C ....... *.'---- ~.1.-- 1.' ....... 1-; ............. 4. t..--~4-1-~-- --'-& ..... t..'1-1 ......-1..Cl. ......... 4. /~0/\ ---.3 -1,.-11 ~.' .... 11 In the case of corporations, partnerships, or other forms of organizations, when there is a change in officers, directors, or partners, a new application must be submitted. No gambling allowed, nor any gambling device prohibited by law. No 1~ .... 1.--11 1 ................. & ........ .',L 4.1.~ 1 .... ; ......... ; !.,,~.. ...... ,L1---4 .1.~--2J---1-1 .... 1.12 .... -1 --1.----1'4.--1.1 .... 1.1-'---- -1--..-' .... 1.--11 1.-- (i) 5.503(13-1-2) No sale of intoxicating liquor for consumption on a licensed premises may be made (-t--) between 1:00 a.m. and 8:00 a.m. on the days of Monday Tuc~day through Saturday, nor between 1:00 a.m. and 12:00 Sunday . ,,~x ~_ ....... , ,.,.,,-, _:.,_:_,-. __., o.,-,^ .... ,,__.~ ..... ,.,., _,~_ , .,-,^ .... ,-,.._.., ..... ..... :----..1 1.:- ..1.~' .... 12 ............. ~. ....... 1.'-t~.__&2 .... ,--a.:--t~.__d. .... 1.1--1. --'L.--11 1.-- .'---- "--4.--A 1.... &L-- 12 ........ ,g'----- .,3 --- --,.~'l- -- A .'-- Cn..1...3.'..:..'___ 1. 1. .... J~' Ch.._1_ .'____,.~'__&_&.'____ -1.--11 1.__ --,*~'--n ~nn;.~ ..... ;-Z ..... A -1.--11 1. ..... 1..-2 ...... .'.3 ....+1.-~- - ..2--1.~..'---- Z,L"------ L ......... .1 ....... + ...:11.C..1 ~z7 5.503(14-1-3) At the time of filing an application for any on-sale intoxicating liquor license, the applicant shall file with the Clerk proof of financial responsibility for liability. The issuer or surety on any liability insurance policy or bond shall be duly licensed to do business in the State of Minnesota, and all documents shall be approved as to content, form and execution. The licensee and the City shall be named as joint insured on the liability insurance policy. The policy shall be effective for the entire license year or term of license. Proof of financial responsibility may be provided by supplying to the Clerk any of the following items: (a) A certificate that there is in effect for the license period an insurance policy or-poo~ providing at least $50,000 of coverage because of bodily injury to any one person in any one occurrence, $100,000 because of bodily injury to two or more persons in any one occurrence, $10,000 because of bodily injury to or destruction of property of others in any one occurrence, $50,000 for loss of means of support of any one person in any one occurrence, and $100,000 for loss of means of support of two or more persons in any one occurrence; or (b) A bond of a surety company with minimum coverages as provided in SeCtion 5.503(14fi)(a), or (c) A certificate of the State Treasurer that the licensee has deposited with the State Treasurer $100,000 in cash or securities that may be legally purchased by savings banks or trust funds h ing arket alue of $100 000 ~'-: .... :-- -' ....... ":'-: .... ': ......': ...... av a m v , · · AgO 0~[1~./11 t,~VbO ll~Jl, l~l~JllltJl;. 4glAl (·IJIJII~,.~O,·IL UI ll~.~lli~9~' IIUIII L 1. 4.1. J a.L (d) 5.503(15) The operation of an intoxicating liquor license without having on file at all times with the City the liability insurance policy or other evidence of financial responsibility required herein shall be grounds for immediate revocation of the license. Notice of cancellation of a current liquor liability policy serves as notice to the licensee of the impending revocation and unless evidence of compliance with the financial responsibility requirements of this section are presented to the Clerk before the termination is effective, the license will be revoked instantly upon the lapse in coverage. Any liability insurance required by this section must provide that it may not be canceled for: (a) Any cause, except for nonpayment of premium, by either the insured or the insurer unless the canceling party has first given thirty days' notice in writing to the issuing authority of intent to cancel the policy; and (b) Nonpayment of premium unless the canceling party has first given ten days' notice in writing to the issuing authority of intent to cancel the policy. 5.503(16) The City Council may suspend or revoke any intoxicating liquor license for the violation of any provision or condition of this ordinance or of any State law or Federal law regulating the sale of intoxicating liquor, and shall revoke such license for any willful violation which, under the laws of the State, is grounds for mandatory revocation, and shall revoke for failure to keep the insurance required by Section 5.503(13~ in full force and effect. ~' ...... :-'" ..... f p d g h g ....... :-- N dar ry ti p i by o~,v~,,o,u,, cn in a cmnn ~,, ...~...~.., om~ o revoca on or sus ens on · e Council shall be preceded by wfi~en notice to the licensee ~d a public hemng. The notice shall give at least ten days notice of the time ~d place of the hemng ~d shall state the nature of the ch~ges against the licensee. The Council may, without ~y notice, suspend ~y license pending a he~ng on revocation for a period not exceeding 30 days. ~e notice may be se~ed upon the licensee pe~onally or by leaving the sine at the licensed premises wi~ the person in ch~ge thereofi No suspension after public he~ng shall exceed 60 days. 5.503(17) Any person violating any provision of this ordinance shall be guilty of a misdemeanor, and upon conviction thereof, shall be punished as per State Statute. by a fine -" ........ ~--- ~:-'~' "--"---' t*~"" ""' ECTION 5: Section 5.505 of Ordinance No. 853, City Code of 1977, pertaining to the licensing of Limited Intoxicatinll Liquor Licenses which currently reads as follows to wit: LIMITED INTOXICATING LIQUOR LICENSES 5.5o5(1) The provisions of Sections 5.503(1) through 5.503(17) inclusive, with the exceptions of Sections 5.503(7)(g), 5.503(10)(c), and 5.503(12), are applicable in all respects to all persons licensed or otherwise affected by limited intoxicating liquor licenses except as is otherwise herein specifically provided. 5.505(2) The annual license fee for limited intoxicating liquor licenses shall be set by resolution of the council. In the absence of a resolution, the annual license fee shall be $5,400.00. 5.503(3) No sale of intoxicating liquor for consumption on the premises licensed under this section may be made (1) before 8:00 a.m. on any day; (2) after 11:00 p.m. on any day; (3) on Sundays; or (4) between 8:00 p.m. on December 24 and 8:00 a.m. on December 25. 5.505(4) No license shall be granted under this section for a restaurant that: (a) (b) (c) (d) Contains less than 3,300 square feet of building area located on the same floor; Contains a combined dining and waiting area of less than 2,000 square feet; Contains a seating capacity open to the general public of less than 150 seats; or Contains an elevated counter, commonly known as a bar, the primary purpose of which is used as a place where persons may purchase and consume intoxicating liquor. 5.5o5(5) No license shall be granted under this section for the sale of any intoxicating liquor except in conjunction with a food purchase. No person shall sell or purchase intoxicating liquor on premises licensed under this section except in conjunction with a food purchase. 5.505(6) Any person violating any provision of this Section 5.505 of this Code shall be guilty of a misdemeanor and, upon conviction thereof, shall be punished by a fine of not more than $500.00 and imprisonment for not more than 90 days. SHALL HEREAFTER BE REPEALED. SECTION 6: Section 5.506 of Ordinance No. 853, City Code of 1977, pertaining to the licensing of Sunday Intoxicating Liquor Sales which currently reads as follows to wit: 5.506(1) Establishments to which on-sale licenses have been issued or hereafter may be issued, pursuant to Sections 5.503 or 5.505 may serve intoxicating liquors between the hours of 10:00 a.m. and 12:00 midnight on Sundays in conjunction with the serving of food, provided that such establishment is in conformance with the following, to-wit: (a) (b) (c) the Minnesota Clean Indoor Air Act; the licensing provisions of Sections 5.503 and 5.505; the applicant is not in violation of any provision of this Code. 5.506(2) No person, finn or corporation shall sell or serve, directly or indirectly, intoxicating liquors pursuant to Section 5.506(1) without having first obtained a special license pursuant to this section. 5.506(3) A Sunday liquor license may be issued only for a one (1) year period coinciding with the dates of applicant's other license, for a fee of $200.00. If Minnesota Statute #340.14, Subd. 5(b) is amended to allow charging a fee in excess of $200.00, the Council may, by resolution, charge a fee in excess thereof. 5.506(4) Any license granted hereunder may be revoked for cause or for any violation of Sections 5.503 or 5.505. 5.506(5) The provisions of Minnesota Statute #340.112 shall apply to Sunday liquor licenses. 5.506(6) No license to serve intoxicating liquor on Sunday shall be granted under this chapter unless the applicant makes application pursuant to Section 5.503 of this Code. 5.506(7) The provisions of Sections 5.503(17) and 5.505(6) shall apply to any person, firm or corporation selling or serving beverages in violation of this section. SHALL HEREAFTER READ AS FOLLOWS: 5.506(1) Establishments to which on-sale licenses have been issued or hereafter may be issued, pursuant to Sections 5.502 and 5.503 A~d 5.5¢5 may serve intoxicating liquors between the hours of 10:00 a.m. and ' ......... ,~,,~ ............ .~o 1:00 A.M. on Mondays in conjunction with the serving of food, provided that such establishment is in conformance ' ,~.A ,._,, ....: with ,.,~ .,,.,.,.,.~, the Minnesota Clean ~floor Air Act; 5.506(2) No person, firm or corporation shall sell or serve, directly or indirectly, intoxicating liquors pursuant to Section 5.506(1) without having first obtained a special license pursuant to this section. 5.506(3) A Sunday liquor license may be issued only for a one (1) year period coinciding with the dates of applicant's c, hhcr intoxicating liquor license, for a fee of $200.00. If Minnesota Statutes~-~,~."~ ~^ ',-~, ~ ~,,,,,,,.°'-'--' -,w) is are amended to allow charging a fee in excess of $200.00, the Council may, by resolution, charge a fee in excess thereof. 5.506(4) Any license granted hereunder may be revoked ~ or suspended for any violation of Sections 5.503 or 5.502 5.505. 5.506(7) Any person violating any provision of this ordinance shall be guilty of a misdemeanor, and upon conviction thereof, shall be punished as per State SECTION 8: Section 5.508 of Ordinance No. 853, City Code of 1977, pertaining to the licensing of Sunday Club Intoxicating Liquor Sales which currently reads as follows to wit: 5.5o8(1) Establishments to which on-sale licenses have been issued or hereafter may be issued, pursuant to Sections 5.502 may serve intoxicating liquors between the hours of 10:00 a.m. and 12:00 midnight on Sundays in conjunction with the serving of food, provided that such establishment is in conformance with the following, to-wit: (a) (c) the Minnesota Clean Indoor Air Act; the licensing provisions of Sections 5.502; the applicant is not in violation of any provision of this Code. 5.506(2) No person, firm or corporation shall sell or serve, directly or indirectly, intoxicating liquors pursuant to Section 5.508(1) without having first obtained a special license pursuant to this section. 5.506(3) A Sunday liquor license may be issued only for a one (1) year period coinciding with the dates of applicant's other license or for such lesser period as is set by resolution of the Council. The license fee shall be set by resolution of the Council. 5.506(4) Any license granted hereunder may be revoked for cause or for any violation of Sections 5.502. 5.506(5) The provisions of Minnesota Statute #340.112 shall apply to Sunday liquor licenses. 5.506(6) No license to serve intoxicating liquor on Sunday shall be granted under this chapter unless the applicant makes application pursuant to Section 5.502 of this Code. 5.506(7) The provisions of Sections 5.502(10) shall apply to any person, firm or corporation selling or serving beverages in violation of this section. SHALL HEREAFTER BE REPEALED. SECTION 10: Section 5.510 of Ordinance No. 853, City Code of 1977, pertaining to the licensing of Temporary_ On-Sale Intoxicating Liquor Licenses which currently reads as follows to wit: 5.51o(1) A temporary license for the on-sale of intoxicating liquor in connection with a social event within the City sponsored by the licensee may be issued to a club or charitable, religious, or other nonprofit organization in existence for at least three years as set forth in this section. 5.510(2) 5.510(3) 5.51o(4) 5.51o(5) 5.510(6) ao 5.510(7) The license may authorize the on-sale of intoxicating liquor for not more than three consecutive days, and may authorize on-sales on premises other than the premises the licensee owns or permanently occupies. The license may provide that the licensee may contract for intoxicating liquor catering services with the holder for a full-year on-sale intoxicating liquor license issued by the municipality. License applicants shall furnish the information required by Section 5.509(2) of this Code. In addition, the Council may, at its option, require a license applicant to provide the information required by 5.509(3) of this Code. If an applicant has already provided certain required information in conjunction with applying for another license under this Code, the applicant may simply refer to the other information by reference and shall not be required to reproduce all such information if such information is the same. The application shall be processed in accordance with Section 5.509(5). Provided, however, the police investigation may be waived for any applicant currently licensed under this Chapter. The Council may accept or reject the license application in its discretion upon completion of the public heating, subject to the following criteria: No license shall be issued to any applicant who is unable to demonstrate that applicant has permission to use the premises proposed to be licensed on the date(s) for which the license is sought. No license shall be issued to any club who has a member convicted of a violation of any law directly related to the sale, possession, manufacture or transportation of beer or liquor, subject to the provisions of Minnesota Statutes Chapter 364. No license shall be issued unless the applicant shall have made adequate plans and provisions to keep the liquor within the premises and to clean up the premises after conclusion of the event. No license shall be issued unless the applicant has first paid an application fee, license fee, and clean-up deposit fee in an amount set by Resolution of the Council. In the absence of a Resolution, the application fee shall be $200, the license fee shall be $100 per day or portion thereof, and the clean-up deposit shall be $200. The clean-up deposit less the City's cost of clean-up and administration shall be returned to the applicant. Licenses granted pursuant to the provisions of this Chapter shall be subject to the following conditions: No licensee or his agent may sell or permit the sale of intoxicating liquor licensed to be sold under this section between the hours of 1:00 a.m. and 8:00 a.m. on days Monday through Saturday, nor between the hours of 1:00 a.m. and 12:00 noon on Sunday. No licensee or his agent or any other person shall consume or allow to be consumed on the licensed premises any intoxicating liquor between the hours of 1:30 a.m. and 8:00 a.m. Should the Council decide to additionally restrict the hours of sale in granting the license, no licensee or his agent may sell or permit the sale of intoxicating liquor at any time not specifically allowed in such license. All licensees under this section shall allow the business premises to be inspected by police or health officials at any time during which the premises are open to the public for business. All licensees under this section shall maintain the sanitation conditions prescribed by 5.301 that are applicable to the serving of beverages. do No person under the age of nineteen (19) years shall be employed on a premises licensed to sell intoxicating liquor "on-sale", to draw or serve intoxicating liquor. eo No person or customer, other than the licensee and his employees, may remain on any licensed premises after one-half hour after closing. f. No licensee or his agent shall serve intoxicating liquor to a minor. No licensee or his agent shall make or permit a sale of intoxicating liquor to a minor or to any obviously intoxicated person. ho No licensee or his agent shall permit or allow any person to take intoxicating liquor from the licensed premises without the permission of the Council. No licensee or his agent shall serve intoxicating liquor in any glass or metal container. When an intoxicating liquor license is granted in conjunction with an event at which a carnival is operating, no licensee or his agent shall make any sale of intoxicating liquor to any person who operates any ride or concession at such carnival. 5.510(8) Licenses under this section are not valid unless first approved by the Commissioner of Public Safety. 5.510(9) Any person violating any provision of this section shall be guilty of a misdemeanor, and upon conviction thereof, shall be punished by a fine of not more than $700 and imprisonment for not more than ninety (90) days. SHALL HEREAFTER BE AMENDED TO READ AS FOLLOWS: 5.510(1) A temporary license for the on-sale of intoxicating liquor in connection with a social event within the City sponsored by the licensee may be issued to a club or charitable, religious, or other nonprofit organization in existence for at least three years as set forth in this section. 5.510(2) The license may authorize the on-sale of intoxicating liquor for not more than three four consecutive days, and may authorize on-sales on premises other than the premises the licensee owns or permanently occupies. No more than three four-day, four three-day, six two-day, or 12 oue-day temporary licenses, in any combination not to exceed 12 days per year to any one organization or for any one location, within a twelve month period. No more than one temporary license to any one organization or for any one location within any 30-day period. Temporary on-sale licenses are only valid for the dates, times and locations specifically stated on the license. 5.510(3) The license may provide that the licensee may contract for intoxicating liquor catering services with the holder for a full-year on-sale intoxicating liquor license issued by the municipality. 5.510(4) License applicants shall furnish the information required by Section ~ 5.503(5) of this Code. In addition, the Council may, at its option, require a license applicant to provide the information as follows: -reqa/red-by (a) Name and address of club/church. (b) Full legal name of person in charge of event if not applicant, spouse's full legal name if applicable; date of birth, residence street address and length of time at that address of person in charge and spouse; and any other information deemed necessary by the City Council or issuing authority. (c) Site plan of the area where sales will occur indicating the size, location and nature of the premises planned to be used along with a depiction of its relationship to the adjacent premises. (d) Certificate of Incorporation. (e) Statement from property owner granting permission to applicant for use of the premises on which the stated activity is proposed. (0 Executed signature of an officer of the club/church. 5.5 o(5) All applications shall be referred to the Chief of Police. The Chief of Police or hisser designee is empowered to conduct any and all investiga~ons to verify the information on the application, including ordering a computer,ed criminal histo~ inqui~ obtained through the Criminal Justice System and/or a driver's license histo~ inqui~ as recorded by the State Depa~ment of Public SafeW on the applicant. The application shall also be referred to the Chief of ~he Fire Depa~ment, the Building O~cial and the CiW Planning and Zoning Depa~ment for a repo~ indicating whether said premises are in compliance with applicable ordinances and regulations. A 5.510(6) public hearing shall then be held before the City Council, at which time the application for a license shall be considered. Opportunity shall be given to any person to be heard for or against the granting of the license at a public hearing. The Council may accept or reject the license application in its discretion upon completion of the public hearing, subject to the following criteria: b.a. No license shall be issued to any ¢l'.:b organization who's applicant has-a member been convicted of a felony or any violation of any law of this state or local ordinance direetty related to thc sale, ~ manufacture or transportation of beer, wine or intoxicating liquor., -'~-: ...... ~-~ d-:. b. No license shall be issued unless the applicant has first paid an-a?ptica-~ fcc, license fee, --= -' ...... = .... "' ........ -,,v ,,,~},,,o- fcc in an amount set by Resolution of the Council. In the absence of a Resolution, ..... license fee shall be $100 per day or portion thereof., ---' "-- A, ...... ,, .... .., .......................................... vv ....... No license will be issued unless at the time of application the applicant has paid a non-refundable investigation fee as set by City Council resolution. Where ail applicants are in-state, the investigation fee will be $500; where any applicants are out of state, the investigation fee shall be $2,000. If the investigation fee for in-state or out of state applicants exceeds the minimum fee, the additional costs of the investigation will be billed to the applicant(s). If the organization holds an existing annual liquor license, an investigation fee need not be collected. Upon rejection of any application for a license, or upon withdrawal of an application before approval of the issuance by the City Council, the license fee shall be refunded to the applicant. In any case, the investigation fee will be non-refundable. 5.510(7) Licenses granted pursuant to the provisions of this Chapter shall be subject to the following conditions: No licensee or his agent may sell or permit the sale of intoxicating liquor licensed to be sold under this section between the hours of 1:00 a.m. and 8:00 a.m. on days Monday through Saturday, nor between the hours of 1:00 a.m. and 12:00 noon on Sunday. No licensee or his agent or any other person shall consume or allow to be 'consumed on the licensed premises any intoxicating liquor between the hours of 1:30 a.m. and 8:00 a.m. Should the Council decide to additionally restrict the hours of sale in granting the license, no licensee or his agent may sell Co L s.s o(8) or permit the sale of intoxicating liquor at any time not specifically allowed in such license. All licensees under this section shall allow the business premises to be inspected by police or health officials at any time during which the premises are open to the public "-- '-"-:--- ........... a. Business hours shall be deemed any time when licensee or employees are present on the premises. Refusal to permit such inspection is a violation of this ordinance and grounds for revocation of license. l-' .......... ; ............. m~ ................... ~ ........ ~,,,a. All sales and consumption of intoxicating liquor must be in a separated and confined area. No licensee shall permit 18, 19, or 20 year old persons to remain on the premises unless to perform work for the establishment including the sale or serving of alcoholic beverages. No intoxicating liquor shall be sold or furnished or delivered to any obviously intoxicated person or to any person to whom sale is prohibited by state law. At the time of filing an application for any temporary on-sale intoxicating liquor license, the applicant shall file with the Clerk proof of financial responsibility for liability. The issuer or surety on any liability insurance policy or bond shall be duly licensed to do business in the State of Minnesota, and all documents shall be approved as to content, form and execution. The licensee and the City shall be named as joint insured on the liability insurance policy. The policy shall be effective for the entire license 5.51o(9) 5.51o(lo) 5.51o(811) 5.510(129) term. The location of the event and date of the event must be indicated on the Certificate of Insurance. Proof of financial responsibility may be provided by supplying to the Clerk any of the following items: a. A Certificate that there is in effect for the license period an insurance policy providing at least $50,000 of coverage because of bodily injury to any one person in any one occurrence, $100,000 because of bodily injury to two or more persons in any one occurrence, $10,000 because of injury to or destruction of property of others in any one occurrence, $50,000 for loss of means of support of any one person in any one occurrence, and $100,000 for loss of means of support of two or more persons in any one occurrence; or b. A bond of a surety company with minimum coverages as provided in 5.510(8)(a); or c. A certificate of the State Treasurer that the licensee has deposited with that office $100,000 in cash or securities which may legally be purchased by savings banks or for trust funds having a market value of $100,000. Any liability insurance required by this section must provide that it may not be canceled for: (a) Any cause, except for nonpayment of premium, by either the insured or the insurer unless the canceling party has first given thirty days' notice in writing to the issuing authority of intent to cancel the policy; and (b) Nonpayment of premium unless the canceling party has first given ten days' notice in writing to the issuing authority of intent to cancel the policy. The operation of a temporary on sale intoxicating liquor license without having on file at all times with the City the liability insurance policy or other evidence of financial responsibility required herein shall be grounds for immediate revocation of the license. Notice of cancellation of a current liquor liability policy serves as notice to the licensee of the impending revocation and unless evidence of compliance with the financial responsibility requirements of this section are presented to the Clerk before the termination is effective, the license will be revoked instantly upon the lapse in coverage. Licenses under this section are not valid unless first approved by the State of Minnesota Commissioner of Public Safety. Any person violating any provision of this section shall be guilty of a misdemeanor, and upon conviction thereof, shall be punished as uer State Statute ,...,,n c--- -,- ........ '--- ~'"~'"' ---' i~p~i~r.-n f~,r not "--- CITY OF COLUMBIA HEIGHTS Meeting o:~ September 25, 2000 AGENDA SECTION: , ~ ORIGINATING DEPARTMENT: CITY MANAGER NO: (.~' -~ Community Development APPROVAL ITEM: Public Hearing: Approve Modified BY: Kenneth R. Anderson ~ BY: ~//~~ Redevelopment Plan for CBD DATE: September 20, 2000 Redevelopment Project and TIF Plan for TIF District (Redevelopment) No. 9 ISSUE STATEMENT: The City Council is scheduled to conduct a public hearing and consideration of adoption of Resolution 2000-67 on the proposal to Approve a Modified Redevelopment Plan for the Central Business District Redevelopment Project and a Tax Increment Financing Plan for Tax Increment Financing District (Redevelopment) No. 9 which is for the Transition Block Redevelopment Project (Crest View/Real Estate Equities). BACKGROUND/ANALYSIS: This proposed project consists of constructing 22 affordable rental townhouses and a 50 unit assisted senior living facility. A number of revenue sources have been secured to fund project costs, including tax increment fmancing (TIF). This is a proposal to provide TIF to the developer dba Columbia Heights Transition Block, LLC. The TIF may be used to pay for land acquisition costs, site improvements, installation of public utilities, administrative expenses, and capitalized interest. The TIF plan anticipates that the increment will be provided to the developer on a pay-as- you-go basis rather than up-front bond proceeds. This type of assistance eliminates the financial liability the City/EDA may be exposed to in that we are only obligated to make TIF payments to the developer after the property taxes are actually paid to Anoka County and a portion is disbursed to the City in the form of tax increment. If taxes are not paid, no increment will be provided to the developer. This will be a redevelopment TIF district which has a maximum term of 25 years. The district boundaries include 4157 Jackson Street, (Ostrander residence), 825 41 st Avenue (NEI College of Technology), 4156 Central Avenue (City wide Locksmith), and 4150 Central (EDA property, former Columbia Professional Building). The proposed budget for TIF eligible expenditures can be found on page 5 of the TIF Plan and are conservatively estimated to be $4,330,000. The actual costs and term of TIF to be provided to the developer are subject to ongoing negotiation and have not been finalized. This TIF district is subject to a local contribution (LGA penalty) of 5% of the annual TIF generated which must be provided from unrestricted money and cannot be made from TIF. For this project, we are fortunate in that the $545,000 grant from the Metropolitan Council can be contributed as the local contribution of the City which means no City funds must be contributed for the local contribution requirement. Dan Greensweig, legal counsel with Kennedy and Graven, Chartered, will be present to respond to questions. Keith Jans of Real Estate Equities will make a brief presentation on the project and proposed financing. RECOMMENDATION: The staff and consultants are recommending that the public hearing be tabled and continued at a furore meeting until more progress is made in property acquisition and further analysis is performed for the amount of fmancing required by the developer. The EDA will be meeting on September 25, 2000 to consider approval of the plan subject to Council satisfaction with the detail of the Plan. RECOMMENDED MOTION: Move to table the Public Hearing for continuance at a future meeting. ALTERNATE MOTION: Move to waive the reading of Resolution 2000-67, there being ample copies available to the public. ALTERNATE MOTION: Move to adopt Resolution 2000-67, being a Resolution Approving a Modified Redevelopment Project and a Tax Increment Financing Plan for Tax Increment Financing District (Redevelopment) No. 9. (Transition Block Redevelopment Project - Crest View/Real Estate Equities). Attachments: COUNCIL ACTION: CITY OF COLUMBIA HEIGHTS RESOLUTION NO. 2000 - 67 RESOLUTION APPROVING A MODiFIED REDEVELOPMENT PLAN FOR THE CENTRAL BUSINESS DISTRICT REDEVELOPMENT PROJECT AND A TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT (REDEVELOPMENT) NO. 9 BE IT RESOLVED By the City Council of the City of Columbia Heights, Minnesota (City) as follows: Section 1. Recitals. 1.01. The City of Columbia Heights ("City") has previously established the Central Business District Redevelopment Project (the "Project") and a redevelopment plan therefor (the "Redevelopment Plan"), originally administered by the Housing and Redevelopment Authority in and for the City of Columbia Heights ("HRA"). 1.02. By resolution approved January 8, 1996, the City transferred the control, authority and operation of the Project from the HRA to the Columbia Heights Economic Development Authority ("Authority"). 1.03. The Authority has proposed the establishment within the Project of Tax Increment Financing District (Redevelopment) No. 9 (the "TIF District") and a Tax Increment Financing Plan ("TIF Plan") therefor, pursuant to the HRA Law and Minnesota Statutes, Sections 469.174 through 469.179 ( the "TIF Act"). 1.04. The Authority has caused to be prepared a document titled "City of Columbia Heights, Minnesota, Columbia Heights EDA Tax Increment Financing Plan for Tax Increment Financing District (Redevelopment) No. 9 (Transition Block Redevelopment Project - Crest View/Real Estate Equities)" (the "Plan"). 1.05. The Authority has submitted the Plan to the City Planning and Zoning Commission, which has found that it conforms to the comprehensive City plan. 1.06. Estimates of the fiscal and economic implications of the Plan were presented to the appropriate school and county boards and officials at least 30 days before the public heating on the Plan. 1.07. By resolution approved September 25, 2000, the Authority has approved the Plan and has recommended approval thereof by this Council, and such resolution, and its findings and supporting documentation is hereby incorporated herein. 1.08. This City Council has fully reviewed the contents of the Plan and on this date conducted a public hearing thereon, at which the views of all interested persons were heard. Section 2. Findings; Project. 2.01. It is hereby found and determined that within the Project there is a need to improve the tax base and housing and employment opportunities, and to provide an impetus for commercial development. 2.02. It is further specifically found and determined that: a) the land within the Project would not be made available for development without the public intervention and financial assistance described in the Plan; b) the Plan will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development of the Project by private enterprise; and c) the Project and the Plan conform to the general plan for development of the City as set forth in the comprehensive municipal plan. 2.03. It is found and determined that it is necessary and desirable for the sound and orderly development of the Project and the City as a whole, and for the protection and preservation of the public health, safety, and general welfare, that the authority of the TIF Act be exercised by the City to provide public financial assistance as described in the Plan. 2.04. It is further found and determined, and it is the reasoned opinion of the City, that the development proposed in the Plan for TIF District No. 9 could not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the district permitted by the plan. 2.05. The proposed public improvements to be financed in part through tax increment financing are necessary to permit the City to realize the full potential of the TIF District and Project in terms of development intensity, housing and employment opportunities, and tax base. 2.06.. The Plan conforms to the general plan of development of the City as a whole. 2.07. The Plan will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development of the TIF District and Project by private enterprise. 2.08. TIF District No. 9 is a redevelopment district under Section 469.174, subd. 10 of the TIF Act, based on the findings described in the Plan, which are incorporated herein by reference, and other records on file with the City, which are also incorporated herein by reference. 2 2.09. Reasons and facts supporting the findings herein are set forth in the TIF Plan. The City has also relied upon the reports and recommendations of its staff as well as the personal knowledge of members of the City Council in reaching its conclusions regarding TIF District No. 9. 2.10. The City elects to make a qualifying local contribution under Minnesota Statutes, Section 273.1399, subd. 6(d), and therefore anticipates that the TIF District will be exempt from state aid loss under that statute. Section 3. Plan Adopted; Certification; Filing. 3.01. The Plan is hereby approved and adopted and the Redevelopment Plan is hereby modified accordingly. 3.02. The Board hereby makes all the findings set forth in the Plan, which is incorporated herein by reference. 3.03. City staff and consultants are authorized to take all actions necessary to implement the Plan, including negotiation and preparation of agreements in connection with development and redevelopment within the TIF District and Project area. City staff and consultants are further authorized and directed to transmit a certified copy of this resolution together with a certified copy of the Plan to Anoka County with a request that the original tax capacity of the property within TIF District No. 9 be certified to the City pursuant to Section 469.177, subd. 1 of the TIF Act, and to file a copy of the Plan with the Minnesota Commissioner of Revenue as required by the TIF Act. Approved by the City Council of the City of Columbia Heights this 25th day of September, 2000. CITY OF COLUMBIA HEIGHTS Mayor Gary L. Peterson ATTEST: Patty Muscovitz, Deputy City Clerk H:\City Resolution 2000-67, TIF District No. 9. 3 .... 09ff__~/@0 12:02 FA_~..!$12233002 SPRINGSTED INC. ~002/024 City of Columbia Heights, Minnesota Columbia Heights EDA Tax Increment Financing Plan for Tax Increment Financing (Redevelopment) District No. 9 ('rransition Block Redevelopment Project - Crest View/Real Estate Equities Project) Dated: September 25, 2000 Prepared by: SPRINGSTED INCORPORATED 85 E. Seventh Place, Suite 100 St. Paul, MN 55101-2887 (651) 223-3000 www. sprin gsted, com 09/22/00 12:03 FAI 6512233002 S?RINGSTF.,I) INC. ~003/024 TABLE OF CONTENTS Section Paae(s} A. Definitions .................................................................................................................. 1 B. Statutory Authorization .............................................................................................. 1 C. Statement of Need and Public Purpose ..................................................................... 1 D. Statement of Objectives ............................................................................................ 1 E. Designation of Tax Increment Financing District as a Redevelopment District .......... 1 F. Duration of the TIF District and the Three Year Rule...' .............................................. 3 G. Property to be Included in the TIF District .................................................................. 3 H. Property to be Acquired in the TIF District ..'....; .......................................................... 3 I. Specific Development Expected to Occur Within the TIF District ............................... 3 J. Findings and Need for Tax Increment Financing ....................................................... 4 K. Estimated Public Costs .............................................................................................. 5 L. Estimated Sources of Revenue ................................................................................. 5 M. Estimated Amount of Bonded Indebtedness ............... : .............................................. 6 N. Original Net Tax Capacity .......................................................................................... 6 O. Odginal Tax Capacity Rate ........................................................................................ 6 P. Projected Retained Captured Net Tax Capacity and Projected Tax Increment .......... 7 Q. Use of Tax Increment ................................................................................................ 7 R. Excess Tax increment ............................................................................................... 8 S. Tax Increment Pooling and the Five Year Rule .......................................................... 8 T. Limitation on Administrative Expenses ................................................................. ; .... 9 U. Limitation on Property Not Subject to Improvements - Four Year Rule ...................... 9 V. Estimated Impact on Other Taxing Jurisdictions ........................................................ 10 W. Local Government Aid Penalty .................................................................................. 10 X. Prior Planned Improvements ..................................................................................... 10 Y. Development Agreements ......................................................................................... 10 Z. Assessment Agreements ........................................................................................... 11 AA. Modifications of the Tax Increment Financing Plan .................................................... 11 AB. Administration of the Tax Increment Financing Plan .................................................. 1 1 AC. Financial Reporting and Disclosure Requirements .................................................... 12 Map of the Tax Increment Financing District .......................................................... Assumptions Report .............................................................................................. Projected Tax Increment Report ............................................................................ Estimated Impact on Other Taxing Jurisdictions Report ........................................ Market Value Analysis Report ................................................................................ EXHIBIT I EXHIBIT II EXHIBIT III EXHIBIT IV EXHIBIT V 09/22/00~12:03 FAX 6512233002 . SPRINGSTED INC. ~004/024 City of Columbia Heights, Minnesota Section A Definitions The terms defined in this section have the meanings given herein, unless the context in which they are used indicates a different meaning: "AuthoriW" means the Columbia Heights Economic Development Authority "City" means the City of Columbia Heights, Minnesota; also referred to as a "Municipality". 'City Council" means the City Council of the City; also referred to as the "Governin.q Body'. "County' means Anoka County, Minnesota. "CBD' means the Central Business District Redevelopment Project in the City, which is described in the corresponding Redevelopment Plan. "CBD Plan"' means the Redevelopment Plan for the CBD. 'Proiect Are~," means the geographic area of the CBD. "School District' means Independent School District No. 13, Minnesota. 'State" means the State of Minnesota. "TIF Act" means Minnesota Statutes, Sections 469.174 through 469.1791, both inclusive. "TIF District" means Tax Increment Financing (Redevelopment) District No. 9. "TIF Plan' means the tax increment financing plan for the TIF District (this document). Section B Statutory Authorization See Section A of the CBD Plan for the CBD. Section C Statement of Need and Public Purpose See Section B of the CBD Plan for the CBD. Section D Statement of Objectives See Section D of the CBD Plan for the CBD. Section E Designation of Tax Increment financing District as a Redevelopment District Redevelopment districts are a type of tax increment financing district in which one or mom of the following conditions exists and is reasonably distributed throughout the district: (1) parcels comprising at least 70% of the area of the district are occupied by buildings, streets, utilities, or other improvements, and more than 50% of the buildings (not including outbuildings) are structurally substandard requiring substantial renovation or clearance. A parcel is deemed 'occupied" if at least 15% of the area of the parcel contains some type of improvement; or [~ SPRINGSTED Paoe 1 09/22/00 12:03 FAX 6512233002 SPRINGSTED INC. ~005/024 City of Columb~ Heights, Minnesota (2) the property consists of vacant, unused, underused, inappropriately used, or Infrequently used railyards, rail storage facilities, or excessive or vacated railroad right- of-ways; or (3) tank facilities, or property whose immediately previous use was for tank facilities, as defined in section 115C.02, subdivision 15, if the tank facilities: (i) have or had a capacity of more than 1,000,000 gallons; (ii) are k:x:ated adjacent to rail facilities; and (iii) have been removed or are unused, underused, inappropriately used, or infrequently used. For districts consisting of two more noncontiguous areas, each area must individually qualify under the provisions listed above, as well as tile entire area must also qualify as a whole. The TIF District qualifies as a redevelopment district in that it meets all of the criteria listed in (1) above. The supporting facts and documentation 'for this determination will be retained by the Authority for the life of the TIF District and are available to the public upon request. "Structurally substandard" is defined as buildings containing defects or deficiencies in structural elements, essential utilities and facilities, light and ventilation, fire protection (including egress), layout and condition of interior partitions, or similar factors. A building is not structurally substandard if it is in compliance with the building code applicable to a new building, or could be modified to satisfy the existing code at a cost of less than 15% of the cost of constructing a new structure of the same size and type. A city may not find that a building is structurally substandard without an interior inspection, unless it can not gain access to the property and there exists evidence which supports the structurally substandard finding. Such evidence includes recent fire or police inspections, on- site property tax appraisals or housing inspections, exterior evidence of deterioration, or other similar reliable evidence. A parcel is deemed to be occupied by a structurally substandard building if the following conditions are met: (1) the parcel was occupied by a substandard building within a three-year period prior to the parcels inclusion in the district; and (2) if the substandard building was demolished or removed within the three year period, such demolition or removal was performed or financed by the Authority, or was performed by a developer under a development agreement with the Authority. In addition, the Authority must have found by resolution before such demolition or removal occurred that the building was structurally substandard and that the Authority intended to include the parcel in the TIF District. In the case of (2) above, the County Auditor shall certify the original net tax capacity of the parcel to be the greater of (a) the current tax capacity of tl3e parcel, or (b) a computed tax capacity of the parcel using the estimated market value of the parcel for the year in which the demolition or removal occurred, and the appropriate classification rate(s) for the current year. At least 90 percent of the tax increment from a redevelopment district must be used to finance the cost of correcting conditions that allow designation as a redevelopment district. These costs include, but are not limited to, acquiring properties containing structurally substandard buildings or improvements or hazardous substances, acquiring adjacent parcels necessary to provide a site of sufficient size to permit development, demolition and rehabilitation of structures, clearing of land, removaJ of hazardous substances, and installation of utilities, roads, sidewalks, and parking facilities for the site. The allocated administrative expenses of the authority may be included in the qualifying costs. ~] SPRINGSTED Paoe 2 09/22/00 12:04 FAX 6512233002 SPRINGSTED INC. ~006/024 City of Columbia Heights, Minnesota Section F Duration of the TIF District and the Three Year Rule Redevelopment districts may remain in existence 25 years from the date of receipt of the first tax increment. This term shall be reduced to 20 years if the Authority elects to delay receipt of the first tax increment until a minimum market value for the TIF District is reached or exceeded, or four years have elapsed from the date of certification, whichever is earlier. Modifications of this plan (see Section AA) shall not extend these limitations. The Authority does not elect to delay receipt of the first tax increment. The Authority reserves the dght to allow the TIF District to remain in existence the maximum duration allowed by law (projected to be through the year 2028, but anticipates that the TIF District will be decertified prior to that time (see Section P). All tax increments from taxes payable in the year the TIF District is decertified shall be paid to the Authority. In addition, no tax increments shall be paid to the Authority from the TIF District after three years from the date of certification unless within that time period: (1) bonds have been issued in aid of the Project Area (except revenue bonds issued pursuant to M.S. Sections 469.152 to 469.165); (2) the Authority has acquired property within the TIF District; or (3) the Authori[y has constructed public improvements within the TIF District. Section G Property to be Included in the TIF District The TIF District is a 3 Parcel, 7.2 acre area of land located within the Project Area. A map showing the location of the TIF District is shown in Exhibit I. The boundaries and area encompassed by the TIF District are described below: Parcel ID Number Le._qal Description 35-30-24-14-0091 : 35-30-2&14-0092 35-30-24-14-0096 35-30-24-14-0141 Lot 1, except the south eleven (11) feet, Block 38, Columbia Heights Annex to Minneapolis, Anoka County, Minnesota. Lot 2 and the South eleven (11) feet of Lot 1, Block 38, Columbia Heights Annex to Minneapolis, Anoka County, Minnesota Lots 29 and 30, Block 39, Columbia Heights Annex to Minneapolis, Anoka County, Minnesota. Lot 1, Block 2, Northwestern Addition, Anoka County, Minnesota. The area encompassed by the TIF District shall also include all street or utility right-of-ways located upon or adjacent to the property described above. Section H Properly to be Acquired in the TIF District The Authority may acquire and sell any or all of the property located within the TIF District; however, the Authority does not anticipate acquiring any such property at this time. ~'~ SPRINGSTED Paoe 3 09/22/00 1~:04 FAX 6512233002 SPRINGSTED INC. ~007/024 City of Columbia Heights, Minnesota Section I Specific Development Expected to Occur Within the TIF District The proposed TIF District is intended to assist two projects. The first is a 22-unit affordable townhome project of which 3 units will be under the MHOP Program and 19 will be taxable. They will be 2, 3 and 4 bedroom units with fleor-plans ranging from 1,150 to 1,575 sq. ft. The second project will be a 50-unit assisted living arrangement building. These will be smaller apartment-style units. The facility is expected to be fully constructed in 2001 and be 100% assessed and on the tax rolls as of January 2, 2002 for taxes payable in 2003. At the time this document was prepared there were no signed construction contracts with regards to the above described development. Section d Findings and Need for Tax Increment Financing In establishing the TIF District, the City makes the following findings: (1) The TIF District qualifies as a redevelopment district; See Section E of this document for the reasons and facts supporting this finding. (2) The proposed development, in the opinion of the City, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future, and the increased market value of the site that could reasonably be expected to occur without the use of tax increment would be less than the increase in market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the TIF Oistdct permitted by the TIF Plan;-' The reasons and facts supporting this finding are that the developer has represented to the Authority that it would not undertake the proposed development without the assistance of tax increment financing. Pdvate '. investment will not finance these, development activities because of prohibitive costs. It is necessary to finance these development activities through the use of tax increment financing so that other development by private enterprise will occur within the Project Area. A comparative analysis of estimated market values both with and without establishment of the TIF District and the use of tax increments has been performed as described above and is shown in Exhibit V. This analysis indicates that the increase in estimated market value of the proposed development (less the indicated subtractions) exceeds the estimated market value of the site absent the establishment of the TIF District and the use of tax increments. (3) The TIF Plan conforms to the general plan for development or redevelopment of the City as a whole; and The reasons and facts supporting this finding are that the TIF District is, or will be, properly zoned, and the TIF PIan has been approved by the 'City Planning and Zoning Commission and will generally complement and serve to implement policies adopted in the City's comprehensive plan. (4) The TIF Plan will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development of the Project Area by pdvate enterprise. ~ SPRINGSTED Paoe ,~ 09/22/00 i2:04 FAX 6512233002 SPRINGSTED INC. 0008/024 City of Columbia He. ights, Minnesota The reasons and facts supporting this finding are that the development activities are necessary so that development and redevelopment by pdvate enterprise can occur within the Project Area. Seotio~ K Estimated Public Costs The estimated public costs of the TIF District are listed below. reimbursement from tax increments of the TIF District. Land/building acquisition Site improvements/ preparation costs Installation of public utilities Loan interest payments Administrative expenses Capitalized Interest Subtotal Transfers out Total Tax Credit Senior $24E,,.,5,000 $550,000 225,000 215,000 50,000 25,000 $520,000 $790,000 Such costs are eligible for Ostrander School Total $140,000 $ 935,000 30,000 $325,000 795,000 75,000 1,850,000 375,000 300,000 4330,000 0 $170,000 $325,000 $4,330,000 The Authority reserves the right to administratively adjust the amount of any of the items listed above or to incorporate additional eligible items, so long as the total estimated public cost is not increased. Section L Estimated. Sources of Revenue Tax increment revenue Interest on invested funds Loan proceeds Real estate sales Grants $4,330,000 0 0 0 0 Sub~i 4330,000 Tran~ers in 0 Tot~ $4.330.000 The Authority anticipates providing financial assistance to the proposed development through the use of a pay-as-you-go technique. As tax increments are collected from the TIF District in future years, a portion of these taxes will be distributed to the developer/owner as reimbursement for public costs incurred (see Section K). The Authority reserves the right to finance any or all public costs of the TIF District using pay- as-you-go assistance, internal funding, general obligation or revenue debt, or any other financing mechanism authorized by law. The Authority also reserves the right to use other ~ SPRINGSTED Paoe 5 09/ii/00 ~I:05 FAX $$1223~00~ SPRIN6$T£D INC. ~009/02t City of Columbia Heights, Minnesota sources of revenue legally applicable to the Project Area lo pay for. such costs including, but not limited to, special assessments, utility revenues, federal or state funds, and investment income. S~--tion M Estimated Amount of Bonded Indebtedness The Authority does not anticipate issuing tax increment bonds to finance the estimated public costs of the TIF District, but reserves the right to issue such bonds in an amount not to exceed $~,4eo,ooo. Section N Original Net Tax Capacity The County Auditor shall certify the original net tax capacity of the TIF District. This value will be equal to the total net tax capacity of all property in the TIF District as certified by the State Commissioner of Revenue. For districts certified between January 1 and June 30, inclusive, this value is based on the previous assessment year. For districts certified between July 1 and December 31, inclusive, this value is based on the.current assessment year. The Estimated Market Value of all property within the TIF District as of January 2, 2000, for taxes payable in 2001, is approximately $321,458. This is an estimate of the estimated market value of taxable property following the necessary re-platting of parcels. Upon establishment of the TIF District, and subsequent reclassification of property, it is estimated that the odginal net tax capacity of the TIF District will be approximately $4,932. Each year. the County Auditor shall certify the amount that the original net tax capacity has increased or decreased as a result of: (1) changes in the tax. exempt status of property; (2) reductions or enlargements of the geographic area of the TIF District; (3) changes due to stipulation agreements or abatements; or (4) changes in property classification rates. Section O Original Tax Capacity Rate The County Auditor shall also certify the original tax capacity rate of the TIF District. This rate shall be the sum of all local tax rates that apply to property in the TIF District. This rate shall be for the same taxes payable year as the original net tax capacily. In future years, the amount of tax increment generated by the TIF Distdct will be calculated using the lesser of (a) the sum of the current local tax rates at that time or (bi the odginal tax capacity rate of the TIF District. At the time this document was prepared, the sum of ali local tax rates that apply to property in the TIF District, for taxes levied in 2000 and payable in 2001, was not yet available. When this total becomes available, the County Auditor shall certify this amount as the original tax capacity rate of the TIF District. For purposes of estimating the tax increment generated by the T]F District, the sum of the local tax rates for taxes levied in 1999 and payable in 2000, is 132.510% as shown below. Taxinq Jurisdiction City of Columbia Heights Anoka County Independent School District # 13 Other Total 1999/2000 Local Tax Rate 30.147% 28.125% 66.465% 7.773% 132.510% ~ SPRINGSTED Pac~e 6 09/22/00 12:05 FAX 6512233002 SPRINGSTED INC. ~010/024 City of Columbia Heights, Minnesota Section P ProjectmJ Retained Captured Net Tax Capacity and Projected Tax Increment Each year the County Auditor shall determine the current net tax capacity of all property in the TIF District. To the extent that this total exceeds the original net tax capacity, the difference shall be known as the captured net tax capacity of the TIF District. For communities affected by the fiscal disparity provisions of Minnesota Statutes, Chapter 473F and Chapter 276A, the original net tax capacity of the TIF District shall be determined before the application of fiscal disparity. In subsequent years, the current net tax capacity shall either (a) be determined before the application of fiscal disparity or (bi exclude the product of any fiscal disparity increase in the TIF District (since the original net tax capacity was certified) times the appropriate fiscal disparity ratio. The method the Authority elects shall remain the same for the life of the TIF District, except that a single change may be made at any time from method (a) to method (bi above. The City elects method (bi. The County Auditor shall certify to the Authority the amount of captured net tax capacity each year. The Authority may choose to retain any or all of this amount. It is the Authority's intention to retain 100% of the captured net tax capacity of the TIF District. Such amount shall be known as the retained captured net tax capacity of the TIF District. Exhibit il gives a listing of the various Information and assumptions used in preparing a number of the exhibits contained in this TIF Plan, including Exhibit I1! which shows the projected tax increment generated over the anticipated life of the TIF District. Section O Use of Tax Increment Each year the County Treasurer shall deduct 0.25% of the annual tax increment generated by the TIF District and pay such amount to the State's General Fund..Such amounts will be appropriated to the State Auditor for the cost of financial reporting and auditing of tax increment. financing information throughout the state. Exhibit III shows the projected deduction for this' purpose over the anticipated life of the TIF District. The Authority has determined that it will use 100% of the remaining tax increment generated by the TIF District for any of the following purposes: (2) (3) (4) (5) pay for the estimated public costs of the TIF District (see Section K) and County administrative costs associated with the TIF District (see Section '1'); pay principal and interest on tax increment bonds or other bonds issued to finance the estimated public costs of the TIF District; accumulate a reserve securing the payment of tax increment bonds or other bonds issued to finance the estimated public costs of the TIF District; pay all or a portion of the county road costs as may be required by the County Board under M.S. Section 469.175, Subdivision la; or return excess tax increments to the County AuditOr for redistribution to the City, County and School District. Tax increments from property located in one county must be expended for the direct and primary benefit of a project located within that county, unless both county boards involved waive this requirement. Tax increments shall not be used to clmumv'ent levy limitations applicable to the City. ~ SPRINGSTED Paae 7 09/22/00 12:05 FAX 651223300~ SPRINGSTEI) INC. ~]011/024 City of C,~lumbla Heights, Minnesota Tax increment shall not be used to finance the acquisition, cor~. truction, renovation, operation, or maintenance of a building to be used primarily and regularlylfor conducting the business of a municipality, county, school district, or any other local unit of government or the State or federal government. This prohibition does not apply to the construction or renovation of a parking structure, a common area used as a public park, or a facility, used for social, recreational, or conference purposes and not primarily for conducting the business of the community. If there exists any type of agreement or arrangement providing for the developer, or other beneficiary of assistance, to repay all or a port~on of the assistance that was paid or financed with tax increments, such payments shall be subject to all of the restrictions imposed on Ifie use of tax increments. Assistance includes sale of property at les~ than the cost of acquisition or fair marl(et value, grants, ground or other leases at less the~. fair market rent, interest rate subsidies, utility service connections, roads, or other similar assistance that would othe~Nise be paid for by the developer or beneficiary. Section R Excess Tax Increment In any year in which the tax increments from the TIF District gxceed the amount necessary to pay the estimated public costs authorized by the TIF Plan, th& Authority shall use the excess tax increments to: (1) prepay any outstanding tax increment bonds; (2) discharge the pledge of tax increments thereof; (3) pay amounts into an escrow account dedicated to the payment of the tax increment bonds; or (4) return excess tax increments to the County Auditor for redistribution to the City, County and School District. The County l Auditor must report to the Commissioner of Education the amount oI any excess tax increment redistributed to the School District within 30 day~ of such redistribution. Section S Tax Increment Pooling and the Five Year Rule At least 75% of the tax increments from the TIF District must be expended on activities within the district or to pay for bonds used to finance the estimated public costs of the TIF District (see Section E for additional restrictions). No more than 25% of the tax increments may be spent on costs outside of the TIF District but within the boundaries of ~he Project Area, except to pay debt service on credit enhanced bonds. All administrative es penses are considered to have been spent outside of the TIF District. Tax increments are :onsidered to have been spent within the TIF District if such amounts are: (1) actually paid to a third party for activities perforf md within the TIF District within five years after certification of the district; | (2) used to pay bonds that were issued and sold t~ a third party, the proceeds of which are reasonably expected on the date of issuance to be spent within the later of the five-y~ar period or a reasonable temporary period or are deposited in a reasonably required reserve or replacement fu~cl. / (3) used to make payments or reimbursements ,to a third party under binding contracts for activities performed within the TIF District, which were entered into within five years after certification of the district; (~r (4) used to reimburse a party for payment of el!gible costs (including interest) incurred within fige. years from certification of the district. ~ SPRINGSTED I Pae~e 8 09/22/00 [2:05 FAX 6512233002 SPRINGSTED INC. ~012/024 City of Columbia Heights, Minnesota Beginning with the sixth year following certification of the TIF District, at least 75% of the tax- increments must be used to pay outstanding bonds or make contractual payments obligated within the first five years. When outstanding bonds have been defeased and sufficient money has been set aside to pay for such contractual obligations, the TIF District must be decertified. The Authority does not anticipate that tax increments will be spent outside of the TIF District (except for allowable administrative expenses); however, the Authority does reserve the right to allow for tax increment pooling from the TIF District in the future. Section T Limitation on Administrative Expenses Administrative expenses are defined as all costs of the Authority other than: (1) amounts paid fo~the purchase of land; (2) amounts paid fo~ materials and sergices, including architectural and engineering services directly connected with the physical development of the real property in the project; , (3) relocation benefits paid to, or services provided for, persons residing or businesses located Jn the project; (4) amounts used t~ pay principal or interest on, fund a reserve for, or' sell at a discount bo~ds issued pursuant to section 469.~78; or (5) amounts used to pay other financial obligations to the extent those obligations were used to finance costs described in clause (1) to (3). Administrative expenses includi~ amounts paid for services provided by bond counsel, fiscal consultants, planning or econo~ic development consultants, and actual costs incurred by the County in administering the TIF District. Tax increments may be used to pay administrative expenses of the 'I'IF District Ul~ to the lesser of (a) 10% of the total estimated public costs authorized by the TIF Plan or (b:) 10% of the total tax increment expenditures for the project. Section U Limitation on P~perty Not Subject to Improvements - Four Year Rule if after four years from certification of the TIF District no demolition, rehabilitation, renovation, or qualified improvement of an ladjacent street has commenced on a parcel located within the TIF District, then that parcel ~.all be excluded from the TIF District and the original net tax capacity shall be adjusted accordingly. Qualified improvements of a street are limited to construction or opening of a n~w street, relocation of a street, or substantial reconstruction or rebuilding of an existing street, l'l'he Authority must submit to the County Auditor, by February 1 of the fifth year, evidence that {he required activity has taken place for each parcel in the TIF District. If a parcel is excluded from I the TIF District and the Authority or owner of the parcel subsequently commences any .bf the above activities, the Authority shall certify to the County Auditor that such activity has cbmmenced and the parcel shall once again be included in the TIF District. The County Audito~ shall certify the net tax capacity of the parcel, as most recently certified by the Commissioner of Revenue, and add such amount to the original net tax capacity of the TIF District. ~ SPRINGSTED Pace 9 09/22/00 12:06 FAil 6512233002 SPRINGST£D INC. City of Columbia Heights, Minnesota Section ¥ Estimated Impa~t on Other Taxing Jurisdictions / Exhibit IV shows the estimated impact on other taxing jurisdictions if the maximum projected retained captured net tax capa~;ity of the TIF District was hypothetically available to the other taxing jurisdictions. The Authoiity believes that there will be no adverse impact on other taxing jurisdictions dudng the life of tfie TIF District, since the proposed development would not have occurred without the establ~hment of the TIF District and the provision of public assistance. A positive impact on other taxing j~risdictions will occur when the TIF District is decertified and the development therein becomes p:art of the general tax base. Section W Local Governm ~ent AJd Penalty Tax increment financing distric~ established or expanded after April 30, 1990 may cause a reduction in the local government aid (LGA/I-IACA) received by the City from the State· For tax increment financing plans approved on of after July 1, 1995, the City may elect at the time of such approval to make quahfy~ng local contnbutmns to the project, and thereby be exempt from any loss of local government aid. For redevelopment districts th~se contributions must equal 5.0% of the annual increment generated by the district. If the City elects to make the local contribution but fails to do so in any year, a reduction in local g(~vemment aid will occur. The loss of aid will equal the greater of 1) the required local contribution or 2) the loss of aid which would have been incurred had the local contribution election not b~en made. Local contributions must be m .~ade out of unrestricted money and may not be made, directly or indirectly, with tax increments d~r developer payments. The contributions must be used to pay project costs and cannot be u~ed for general government purposes or for costs which would have been incurred absent thg project. The Authority may request contributions from other local governmental entities that Nill benefit from the establishment of the district. The City elects to make the qua ifying local contributions to the project· : Section X Prior Planned In provernents The Authority shall accompan~ its request for certification to the County Auditor (or notice of district enlargement), with a liS, ting of all properties within the TIF District for which building permits have been issued durihg the 18 months immediately preceding approval of the TIF Plan. The County Auditor shal~ increase the original net tax capacity of the TIF District by the net tax capacity of each improvement for which a building permit was issued. There have been no building pe~Tnits issued in the last 18 months in conjunction with any of the properties within the TIF DistdctL Section Y Development ~ reements If within a project containing a redevelopment district, more than 25% of the acreage of the property to be acquired by the Authority is purchased with tax increment bonds proceeds (to which tax increment from the p operly is pledged), then pdor to such acquisition, the Authority must enter into an agreement =or the development of the property. Such agreement must provide recourse for the Authodt't should the development not be completed. The Authority anticipates enteri g into an agreement for development, but does not anticipate acquiring any property located ithin the TIF District. ~'J SPRINGSTED Paoe 10 09/22/00 12:07 FAI 6512233002 SPRINGSTED INC. ~014/024 The assessment agreement sh~ the plans and specifications fo~ previously assigned to the lan( assessment agreement appea agreement as reasonable. Th~ the County Recorder of each premature termination of this a{ City of Columbia Heights, Minnesota Section Z Assessment Ag,recreants The Authority may, upon entering into a development agreement, also enter into an assessment agreement with th~ developer, which establishes a minimum market value of the land and improvements for eacl year during the life of the TIF District. ]1 be presented to the County or City Assessor who shall review the improvements to be constructed, review the market value , and so long as the minimum market value contained in the r's to be an accurate estimate, shall certify the assessment assessment agreement shall be ~ed for record in the office of county where the property is located. Any modification or reement must first be approved by the City, County and School District. The Authority does not anticipa entering into an assessment agreement. Section AA Modifications o,f the Tax Increment Financing Plan Any reduction or enlargement~n the geographic area of the Project Area or the TIF District; increase in the amount of bor~ded indebtedness to be incurred; increase in the amount of capitalized interest; increase inJthat portion of the captured net tax capacity to be retaiaed by the Authority;, increase in the tcital estimated public costs; or designation of additional property to be acquired by the Authority shall be approved only after satisfying all the necessary requirements for approval of th6 original TIF Plan. This paragraph does not apply if: (2) The Authority must notify the C geographic area of the TIF Dist~ not enlarged after five years foil, Section AB Administration Upon adoption of the TIF Plan, Department of Revenue. The odginal net tax capacity and n Auditor in this process, the establishing the TIF District ar improvements. The Authority s establishing the minimum marl( the only modifica ,~on is elimination of pamels from the TIF District; and the current net tax capacity of the parcels eliminated equals or exceeds the net tax capacity of tt- ose parcels in the TIF District's. original net tax capacity, or the Authority agrees [hat the TIF District's original net tax capacity will be reduced by no more than the current net tax capacity of the parcels eliminated. ounty Auditor of any modification that reduces or enlarges the ict. The geographic area of the TIF District may be reduced but )wing the date of certification. Df the Tax Increment Financing Plan the Authority shall submit a copy of such plan to the Minnesota Authority shall also request that the County Auditor certify the ;t tax capacity rate of the TIF District. To assist the County uthodty shall submit copies of the TIF Plan, the resolution ~d adopting the TIF Plan, and a listing of any prior planned lall also send the County Assessor any assessment agreement ;t value of land and improvements in the TIF District, and shall request that the County Assessor review and certify this assessment agreement as reasonable. 1 The County shall distribute t~ the Authority the amount of tax increment as it becomes available. The amount of tax increment in any year represents the applicable property taxes generated by the retained cap ~red net tax capacity of the TIF District. The amount of tax increment may change due to development anticipated by the TIF Plan, other development, inflation or property values, er changes in property classification rates or formulas. In administering and implementinc the TIF Plan, the following actions should occur on an annual basis: ~ ~ SPR~NGSTED Paoe 1 t 09/22/00 12:07 FA~ 6512235002 SPRINGSTED INC, ~015~p24 ' City of Columbia Heights, Minnesota prior to Ju~y 1, he Authority shall [notify the County Assessor of any new development that has occurred in the TIF District during the past year to insure that the new valu{e will be recorded in ,a timely manner. if the County Auditor receives tile request for certification of a new TIF District, or for modification 0f an existing TIF District, before July 1, the request shall be recognized in d~termining local tax rates for the current and subsequent levy years. Requests~ received on or afte~ July 1 shall be used to determine local tax rates in subsequent years. : each year ther~C~unty Auditor shall certify the amount of the original net tax capacity of the TIF District. The amount certified shall reflect any changes that occur as a result of the following: (a) the value of property that changes from tax-exempt to taxable shall be added to the odginal net tax capacity of the TIF District. The reverse shall also apply; .: (b) the origh~al net tax capacity may be modified by any approved enlargement or reduction of the TIF District; (c) if laws goFerning the classific~, fion of real property cause changes to the . percentage of estimated market value to be applied for property tax purposes~ then the resulting increase or decrease in net tax capacity shall be applied~ proportionately to the original net tax capacity and the retained captured her tax capacity of the TIF District. (1) (2) (3) The County Auditor shall notify of the TIF District. Section AC Financial Repor~ The State Auditor shall enforce financial and compliance auditi before August I of each year,: Auditor and to the governing bo (1) (2) (3) (4) he Authority of all changes made to the original net tax capacity Jng and Diaciosur~ Requirements be provisions of the .TIF Act and shall have full responsibility for ng of the Authority's use of tax increment financing. On or le Authority must annually submit to the State Auditor, County ly of the municipality a report which shall: provide full disclc ~ure of the sources and uses of public funds in the TIF District; permit compads¢ r~ and reconciliation ~f the accounts and financial reports; permit auditing o' the funds expended on behalf of the TIF District; and be consistent witl ~igenerally acceptedlaccounting principles. ~)ther items, the fo lowing information: ~x capacity of the distdct and any subdistrict under 469.177, ~ for the reporting I~eriod of the district and any subdistrict; the captured net ~x capacity of the di.~trict; III any fiscal dispad~ deduction from the captured net tax capacity under section 469.177, subdivi~i,bn 3; the captured net subdivision 2, pal The report (1) (2) (3) (4) (5) ~ SPRINGSTED shall include, among the odginal net subdivision 1; the net tax capa( capacity retained[ for tax increment financing under 469.177, agraph (a), clause (1}; Pacle 12 09/22/00 12:07 FA,][ 6512233002 SPRINGSTE]) INC. ~015/024 -_~ (6) (7) (9) (10) (11) (12) (13) (14) City of Columbia Heights, Minnesota any captured netitax capacity distrirduted among affected taxing districts under 469.177, Subdivision 2, paragraph (a)i, clause (2); the type of district; the date the municipality approved the tax increment financing plan and the date of approval of any modification of the tax increment financing plan, the approval of which requires notice, discussion, a public headng, and findings under subdivision 4, paragraph (a); the date the auth,ority first requested.certification of the original net tax capacity of the district and ~he date of request for certification regarding any parcel added to the distdct; the date the county auditor first certified the original net tax capacity of the district and the date of certification of the original net tax capacity of any parcel added to the district; the month and year in which the authority has received or anticipates it will receive the first increment from the district; the date the distri(~t must be decertified; for the reporting period and pdor years of the district, the actual amount received from, at least, the :following categories: '(i) tax increments paid by the captured net tax capacity retained for tax increment financing under section 469.177, subdivision 2, paragraph (a), clause (1),! but excluding any excess taxes; (ii) tax increm,~nts that are interest or other investment earnings on or from tax increments; (iii) tax incremlents that are proc[eeds from ne sale or lease of property, tangible or! intangible, purchased by the authority with tax increments; (iv) tax increments that are repayments of loans or other advances made by the authority with tax increments; ' (v) bond or loan proceeds; (vi) special assessments; (vii) grants; and (viii) transfers from funds not exclusively associated with the district; for the reporting i periocl and for th~) prior years of the district, the amount budgeted under !he tax increment, financing plan, and the actual amount expended for, at least, the following categories: (i) acquisitionlof land and buildin[~s through condemnation or purchase; ({0 site improvements or preparat(on costs; (iii) installationi of public utilities, parking facilities, streets, roads, sidewalks, or other similar public improvements; I ' (iv) administra~ve costs, including lhe allocated cost of the Authority; and (v) public pa~ facilities, facilities for social, recreational, or conference purposes, ,or other similar public improvements; and (vi) transfers td funds not exclusively associated with the district; for properties sold to developers, the; total cost of the property to the Authority and the price paid iby the developer; I ' ~ SPRINGSTED Paoe 13 09/22/00 12:08 FAX 6512233002 (16) SPRINGSTED INC. [~017/024 ! City of Columbia Heights, Minnesota the amount of any payments and th~ value of b-kind benefits, such as physical improvements and the use of building space, that are paid or financed with tax increments and are provided to another governmental unit other than the municipality during the reporting perio,'d; the amount of any payments for activities and improvements Jocated outside of the district that are paid for or financed with tax increments; the amount of payments of principal and interest that are made dudng the reporting period on any non-defeased: (i) general obligation tax increme'nt financing bonds; (ii) other tax increment financing bonds; and (iii) notes and pay-as-you-go conffacts; the principal amount, at the end of the reporting period, of any non-released: (i) general obligation tax increment financing bonds; (ii) other tax increment financing .bonds; and (.iii) notes and pay-as-you-go cont..racts; the amount of principal and interest payments that are due for the current calendar year on any non-defeased: (i) general obligation tax incremeht financing bonds;" (ii) other tax increment financing bonds; and (iii) notes and pay-as-you-go contr.'acts; if the fiscal disparities contribution under chapter 276A or 473F for the district is computed under section 469.177, subdivision 3, paragraph (a). the amount of increased property taxes imposed on other properties in the municipality that approved the tax increment financing plan as a result of the fiscal disparities contribution; whether the tax increment financing plan or other governing document permits increment revenues to be expended; ' (i) to pay bonds, the proceeds i of which were or may be expended on activities outside of the district; for deposit into a common lbond fund from which money may be expended on activities Iocatedioutside of the district; or to otherwise finance activities located outside of the tax increment financing district; and any additional information the state auditor may require. (17) (18) (19) (20) (21) (22) (ii) (iii) (23) The Authority must also annually publish in a newspaper of general circulation in the City an annual statement for each tax increment financing district showing: (1) (2) (3) the originai net tax capacity of the district and any subdistdct under 469.177, subdivision 1; , the net tax capacity for the reporting ~eriod of the district and any subdistrict; the captured net tax capacity of the district; ~ SPRINGSTED Pa(~e 14 09/22/00 12:08 FAX 6512233002 SPRINGSTED INC. ~018/024 I 1 City of Columbia Heights, Minnesota I (4) ~he month and year Jn which II~e ~uthority bas received or anticipates it will · .receive the first increment from Ithe district; (5) the date the district must be decertified; / (6) the amount of principal and i~nterest payments that are due for the current calendar year on any non-defed, sed obligations; 1 (7) if the fiscal disparities contribut~pn u ~r~der chapter 276A or 473F for the district is computed under section 469.1~77, s~bdivision 3, paragraph (a). the amount of increased property taxes impend o'~ other properties in the municipality that approved the tax increment firiancing plan as a result of the fiscal disparities contribution; (8) the amounts of tax increment r~Ceive~l.and expended in the reporting peric~; (9) and any additional information ~e au{hority deems necessary. The annual statement must inform readers at additional information regarding each district may be obtained from the authority, and mu,,it e~piain 13ow the additional information may be requested. The Authority must publish the an~3ual siatement for a year no later than August 15 of the next year. The authority 'must identify th~ newspaper of general circulation in the municipality to which the annual statement has be~n or will be submitted for publication and provide a copy of the annual statement to th~ county board, county auditor, the school board. , the state auditor, and the governing body of tl~e muhicipality on or before August 1 of the year in which the statement must be published. / ! The reporting and disclosure requirements outlined ~n this section shall begin with the year the district was certified, and shall end in the year in which both the district has been decertified and all tax increments have been spent or returne,~l to tl~e county for redistribution. Failure to meet these requirements, as determined by the State A~aditors Office, may result, in suspension of distribution of tax increment. SPRINGS'TED Pate 15 09/22/00 12:08 FAX $$12233002 SPRINGSTED INC. ~019/024 J Central NE ; I EXHIBIT I :1 Jackson Street Tax Increment Financing District (Redevelopme~) (Re~evelopme~:) - 09/22/00 ~2:09 FAX 6512233002 SPRINGSTED INC. ~]020/024 EXHIBIT I (Continued) 09/22,/00 12:09 FA.[ 6512233002 SPRINGSTE. D INC. ~021/024 EXHIBIT II 1_ As.umpt?ons Repo~ I City of Columbia Hei~. Minnesota T~x In~me~ flnm~ (~el~) ~sM~ No. 9 ~Ho A Ty~ of T= In~ Fha~ng D~t~ Dece~lcation Dam 10/01/00 I2/01121 (20 Ye-we of Increment) Base Estimated Market Value (UHTC) Base Estimated Mamm Value (Sen~) Times: Class 4d (UHTC) T, mas: Man, et Rate (Senior) Or~i~l ~ T~x Capacity 100% 2.40% 2000/2001 S122,$78 1,988 $4.932 Base Estimated Ma~ka! Value (EMV). Dec~ease in EMV (Demo) Increase in EMV (UHTC)(1) Increase in EMV (SeniorX2) Total Eslima~d Marital Value Times: Clas~ 4d (LIHTC) ,'~larke~ Rate Total Net Tax Capacity 1.00% 2.40% 2000/2001 As~esament/Coaactinfl Year 2001/2002 20o2r2oo3 532.1,458 0 0 0 $321.450 s321.~e $321.4,50 o (49.200) (49.200) o 1,615.000 1.615.ooo 0 3.250.000 3,2~0.000 $.321,468 $321,458 $5,137,258 $5,137,258 0 0 16,138 18,136 0 0 79.763 79.763 $0 ~ $97,901 $97,901 Bas~ IMlalion Factor Local Tax Capacity Rate Fmcal Disparities Contribution From TIF District Adndnislrative Retainage Percent (rnaxknum = 10%) Pooling Peme~t City Tax Rate (Only if Local. Effmt TIF) NA 132.510% NA 10.00% 0.00% NA 19o,9/00 Bonds Bonds Dated NA Fwst Intamst Date NA Undera~ters Discount NA No{e ( Pa_v-As-You-C-ml Note Dated 10/01 Nole Rate 8.130% Wdl A~nuM Local Conbibulion Be Made (Ye~ or No)? I.S.D JK)13 Equaliz. d Tax Capacity Rate I.$.D ~1013 Sales RaUo Cib/Sales Ratio & Taxable Net Tax (~apacity Pre~ent Vakae Date & Rate 36.18% 1999/00 91.80% 1~9~/00 1(VOl/00 5.50% (1) Baaed on 19 taxable units (out of 22 total) (~$85,O00AJnit. (2) Based on 50 units ~ $65,OOWumt. Prepered by: Springsled h'x:Mporalid (priMed o~ 9/22/00 M 9:26 AM) Redevelopment District - Bolh - non-cash con~b..xlsAssumpliaes 09/22,/00 12:09 FAX 6512233002 SPRINGSTED INC. ~022/024 EXHIBIT Iii o o o,o '" o ~" o o OQ O O O O O O O .', O Q ° O O O O O O O O '~ ~ , ~ 09/22/00 12:10 F~ 6512233002 SPRINGSTED INC. ~023/024 EXHIBIT IV 09/22/00 12:10 FA[ 6512233002 SPRINGSTED INC. ~024/02~ Market Value Analysi~ Report City of Columbia Ha{lilts, Minltesota Increment Financing (Redevelopmeat) Oi~bist No. g Assisted Living/UHTC Proje=t Scenado A EXHIBIT V Present Value Dale ' 10/01/00 P.V. Rate - Gro~ T.I. 5.50% Increase in EMV With TIF District Less.' P.V of Gross Tax Increment Subtotal Less: Increase in EMV Without TI; Dlff'emnce $1.615,D00 2.335,321 ($720.321) 0 ($720.321) Y'QaF Annual Present Gross T~ Value ~ Increment 5.50% 1 2003 123,103 104,913 2 2004 128,382 103.632 3 200~J 133,779 102,359 4 2006 139.392 101,093 5 2007 145.229 g9,836 6 2008 151,299 98,586 7 2009 157,613 97,346 8 2010 164,179 96,115 9 2011 171.007 94,89~ 10 2012 178,109 93,682 11 2013 185,495 92.481 12 2014 193,176 91,289 13 2015 201,164 90,10& 14 2016 209,472 88.938 15 2017 218.113 67.779 16 2018 227.099 86,631 17 2019 236,444 85,493 18 2020 246,183 84,367 19 2021 256,271 83,253 20 2022 266.783 82.149 21 2023 277.716 81,058 22 2024 289,06(i 79,976 23 2025 300.91 t 7B,909 24 2026 313,209 77,85Z 25 2027 3,?.5,999 76,807 26 2028 339,300 75,773 $5,578.583 $2,335,321 Prepared by: Springsted Incorporated (9/22/00) COLUMBIA HEIGHTS - CITY COUNCIL !,i~,TTER Meeting of: September 25, 2000 AGENDA SECTION: Public Hearings ORIGINATING DEPARTMENT: CITY MANAGER'S NO: CITY MANAGER'S APPROVAL Convey Real Estate at 4010 and 4103 DATE: September 22, 2000 DATE: Central Avenue NO: Background Attached please find a Real Estate Purchase Agreement for 4101 and 4103 Central Avenue NE and a Conflict of Interest Disclosure Statement from the law firm of Bama and Guzy. The City purchased the 4101 Central Building in July of 2000. They also, at that time, entered into a Lease agreement with Families Moving Forward (F.M.F.). FMF informed me on Friday that they have closed on the purchase of another building in North Minneapolis. As such, they will be forwarding to us a letter terminating their lease on the property. This leaves the property available for sale without the encumbrance of a lease. Washbum-McReavy Funeral Chapels, Inc. has submitted a Purchase Agreement for $375,000. The City purchased the property for $360,000. The Conflict of Interest Disclosure statement is submitted for Council review and action since the Bama-Guzy firm, which prepared the purchase agreement is also the firm which the City uses for their corporation counsel (different individuals from the firm prepared the purchase agreement, other than the City's regular attorney, Jim Hoefi). Nevertheless, I am recommending that the City Council consider directing the Staff to retain the Kennedy and Graven Chartered law firm to review the Purchase Agreement on the City's behalf. RECOMMENDED MOTION: Move to waive the reading of Ordinance #1420, there being ample copies available to the public. RECOMMENDED MOTION: Move to schedule the second reading of Ordinance #1420, being an Ordinance amending Ordinance No. 853, City Code of 1977, Authorization to Convey Certain Real Estate located at 4101 and 4103 Central Avenue NE, for October 9, 2000 at 7:00 p.m. and to authorize the Mayor and City Manager to sign the Conflict of Interest Disclosure Statement. The Mayor and City Council also direct the City Manager to retain the law firm of Kennedy and Graven Chartered to review the Real Estate Contract on behalf of the City. COUNCIL ACTION: h:~2000-9-25 4101 centralsale ORDINANCE NO. 1420 BEING AN ORDINANCE AMENDING ORDINANCE NO. 853, CITY CODE OF 1977 AUTHORIZATION TO CONVEY CERTAIN REAL ESTATE LOCATED AT 4101 AND 4103 CENTRAL AVENUE NE The City of Columbia Heights does ordain: Section 1: The City of Columbia Heights, a Minnesota municipal corporation, may convey unto Washbum-McReavy Funeral Chapels, Inc., the real property described as follows, to wit: Lots 27, 28, 29, 30 and the West ½ of Lot 31, Block 4, Except North 120 feet of West V2 of said Lot 31, Block 4, Reservoir Hills, Except Road, Anoka County, Minnesota. The South twenty (20) feet of Lot 26, Block 4, Reservoir HillS, Anoka County Minnesota. Section 2: The Mayor and City Manager are herewith authorized to execute a deed to effectuate the conveyance of said real estate subject to the terms, purchase price, and conditions specified in the purchase agreement. Section 3: 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: September 25, 2000 Offered By: Seconded By: Roll Call: Mayor Gary L. Peterson Patricia Muscovitz, Deputy City Clerk REAL ESTATE PURCHASE AGREEMENT THIS AGREEMENT is made as of September ,2000, between City of Columbia Heights, a. Minnesota municipal corporation ("Seller"), and Washbum-MeReavy Funeral Chapels, Inc., a Minnesota corporation, or assigns ("Buyer"). In consideration of this Agreement, Seller and Buyer agree as follows: 1. Sale of Property. Seller agrees to sell to Buyer, and Buyer agrees to buy from Seller, the following property (collectively, "Property"): (a) Real Property. Seller's interest the real property located in Anoka County, Minnesota described on the attached Exhibit A ("Land"), together with (1) all buildings and improvements constructed or located on the Land ("Buildings"), and (2) all easements and rights benefiting or appurtenant to the Land (collectively the "Real Property"). Co) Personal ProperS. Seller's interest in all of the personal property situated in or about the Real Property owned by Seller, including without limitation, that described on the inventory attached to this Agreement as Exhibit B ("Personal Property"). (c) Leases. Seller's interest as lessor in all of the leases as described on the rent roll attached to this Agreement as Exhibit C ("Leases"). (d) Contracts. Seller's interest in the service and maintenance contracts, equipment leases and other contracts regarding the Real Property and the Personal Property described on the attached Exhibit D ("Contracts"). (e) Permits. Seller's interest in the permits and licenses described on attached Exhibit E ("Permits"). (f) Warranties. Seller's interest in ail warranties and guaranties given to, assigned to or benefiting Seller or the Real property of the Personal Property regarding the acquisition, construction, design, use, operation, management or maintenance of the Real Property and the Personal ' Property ("Warranties"), if any. (g) Plans. Seller's interest in all originals and copies of the as-built blueprints, plans and specifications regarding the Real Property and the Personal Property, if any, in Seller's possession ("Plans"). paid by Buyer Thousand and 2. Purchase Price and Manner 0fPayment. The total purchase price ("Purchase Price") to be to Seller for Interest as a tenant-in-common in the Property shall be Three Hundred Seventy-five 00/100 Dollars ($375,000.00) and shall be payable as follows: (a) $5,000.00 as earnest money ("Earnest Money") to be deposited in a trust account of Commercial Partners Title, LLC ("Title") within three (3) days of the date of the last signature completing the execution of this Agreement. Co) The balance of $370,000.00 in certified check or wire transfer to the account of Seller or. ~e Closing Date as hereinafter defined. 3. Contingencies. 3.1 Buyer General Contingencies. The obligations .of Buyer under this Agreement are contingent upon each of the following: (a) Title. The status of title shall have been found acceptable, or been made acceptable, in accordance with the requirements and terms of Section 6 below. Condition of Property. Buyer obtaining, at Buyer's sole cost and expense, an engineering report suitable to Buyer stating that the Buildings on the Property are in sound condition. (c) Governmental Approvals. Buyer obtaining, at Buyer's sole cost and expense, adequate assurances from all appropriate governmental authorities that the Property can be used for Buyer's intended purposes. The sufficiency of the assurances must be determined by Buyer in Buyer's sole discretion. (d) Hazardous Waste. Buyer obtaining, at Buyer's sole cost and expense, an environmental assessment from an environmental engineer satisfactory to Buyer showing that the Property is free of contamination from any hazardous waste, pollutant or contaminant, including but not limited to asbestos, the release and clean-up of which is regulated by any federal, state or local governmental agency or entity. The sufficiency of the report shall be determined by Buyer in Buyer's sole discretion. (e) Documents. Within ten (10) days after the date of acceptance by Seller of this Agreement, Seller shall provide Buyer with the following items: (1) Complete plans and specifications of the building(s) located on the Property, if available; (2) Existing Plat and As-built survey of the Property, if available; (3) Current rent roll, listing the names of each tenant, occupancy date, apartment number, apartment rent, garage rent, if any, and security deposit held by Seller; (4) Seller shall make available for Buyer's review complete copies of all leases, addenda to leases, and security deposit agreements; (5) Complete copies of all engineering reports, and any subsequent updates, if any; (6) The most recent Annual Tank Certification on the fuel oil tank, if any; (7) Copy of existing Phase I Environmental reports and any subsequent reports or updates, if any; (8) Copy of the fuel tank soil test reports, if any; (9) Complete copies of all service and employment contracts of any kind or nature affecting the Property, including management agreement, caretaker contracts and service contracts, if any, such as rubbish removal; -2- (10) (11) True and correct copies of all insurance coverage maintained by Seller on the Property., which coverage Seller shall keep in full force and effect until the date of closing; A complete statement of operating income and expense for the years 1995, 1996, and year to date 1997, and Seller's certification that all available documents have been supplied, and a listing of documents not available; (12) M.A.I appraisal, if any; (13) Copy of the most recent real estate tax statement. The "Contingency Date" shall be September 29, 2000. If any such contingency has not been satisfied on or before the stated date, then this Agreement may be terminated, at Buyer's option, by written notice from Buyer to Seller. Such notice of termination may be given at any time on or before the Closing Date. Upon such termination, the Earnest Money and any interest accrued thereon shall be released to Buyer and upon such return, neither party will have any ftmher rights or obligations regarding this Agreement or the Property. All the contingencies set forth in this Agreement are specifically stated and agreed to be for the sole and exclusive benefit of the Buyer and the Buyer shall have the right to unilaterally waive any contingency by not exercising its right to terminate this Agreement. Seller shall allow Buyer, and Buyer's agents, access to the Real Property without charge and at all reasonable times for the purpose of Buyer's appraisal, investigation and testing the same. Buyer shall pay all costs and expenses of such appraisal, investigation and testing and shall hold Seller and the Real Property harmless from all costs and liabilities relating to the Buyer's activities. Buyer shall further promptly repair and restore any damage to the Real Property caused by or occurring during Buyer's testing and return the Real Property and/or Personal Property to substantially the same condition as existed prior to such entry. 4. Closing. The closing of the purchase and sale contemplated by this Agreement (the "Closing") shall occur on September 29, 2000, or at such other time mutually agreed to by Buyer and Seller (the "Closing Date"). The Closing shall take place at 9:00 a.m. local time at the office of Bama, Guzy & Steffen, Ltd., or at such other place as may be agreed to. Seller agrees to deliver possession of the Property to Buyer on the Closing Date, subject to the rights of tenants under the Leases in their capacity as tenants. Buyer shall be entitled to extend the Closing Date for an additional 30 days in the event Buyer needs additional time to satisfy requirements of any lender. A. Seller's Closing Documents. On the Closing Date, Seller shall execute and/or deliver to Buyer the following (collectively "Seller's Closing Documents"): (1) Deed. A Warranty Deed, in form reasonably satisfactory to Title, conveying the Real Property to Buyer, flee and clear of all encumbrances, except the Permitted Encumbrances hereafter defined. (2) Bill of Sale. A Warranty Bill of Sale, in form reasonably satisfactory to Buyer, conveying the Personal Property to Buyer, free and dear of all encumbrances. (3) Assimament of Leases. An Assignment of Leases, in form reasonably satisfactory to Buyer, conveying the Leases and any security deposits, prepaid rents or collections regarding the Leases to BUyer, free and clear of all encumbrances. -3- (4) Assignment of Contracts. An Assignment of Contracts, in form reasonably satisfactory to Buyer, conveying the Contracts to Buyer, free and clear of all encumbrances, together with the consent of all parties having a right to consent to such Assignment. (5) ...Assignment of Permits. An Assignment of Permits, in form reasonably satisfactory to Buyer, conveying the Permits to Buyer, free and clear of all encumbrances, together with the consent of all parties having a right to consent to such Assignment. (6) Assignment of Warranties. An Assignment of Warranties, if any, in form reasonably satisfactory to Buyer, conveying the Warranties to Buyer, free and clear of all encumbrances, together with the consent of all parties having a right to consent to such Assignment. (7) Revised Rent Roll. A revised rent roll certified as to its accuracy by Seller as of the Closing Date. (8) Notice to Tenant. Notice to the tenant under the Leases, in form reasonably satisfactory to Buyer, advising them of the sale of the Property and directing them to make future lease payments to Buyer at the place designated by Buyer. (9) Title Commitment. A Commitment for Title Insurance, or a suitably marked up Commitment for Title Insurance initiated by Title. (10) Seller's Affidavit. An Affidavit of Title by Seller indicating that on the Closing Date there are no outstanding, unsatisfied judgments, tax liens or bankruptcies against or involving Seller or the Real Property; that there has been no skill, labor or material furnished to the Real Property for which payment has not been made or for which mechanics' liens could be filed; and that there are no other unrecorded interests in the Real Property, together with whatever standard owner's affidavit and/or indemnity (ALTA Form) which may be required by Title to issue an Owner's Policy of Title Insurance. (11) Certificate(s) of Occupancy. One or more certificates of occupancy issued by the appropriate governmental body authorizing the use of the Real Property for the purposes now used. (12) Security Deposits and Prepaid Rents. All security deposits together with accrued interest thereon and prepaid rents under the Leases, including valid transfers of any noncash securities or documents held for such purposes, if any. (13) Original Documents. Original copies of the Leases, the Contracts, the Permits, the Warranties, the Plans and the Records in Seller's possession. (14) FIRPTA Affidavit. A non-foreign affidavit, properly executed and in recordable form, containing such information as is required by IRC Section 1445(b)(2) and its regulations. (15) IRS Reporting Form. The appropriate Federal Income Tax reporting form, if any is required. (16) Other Documents. All other documents reasonably determined by Title Insurer or Lender to be necessary to transfer the Property to Buyer free and clear of all encumbrances. B. Buyer's Closing Documents. On the Closing Date, Buyer will execute and/or deliver to Seller the following (collectively, "Buyer's Closing Documents"): -4- (1) (2) regarding this (a) Co) (c) (d) (e) (f) (g) Purchase Price. The cash portion of the Purchase Price, by wire transfer.of U.S. Federal Funds, or by certified check to be received in Title's trust account and/or delivered to Seller at the closing on the Closing Date together with the Note. Title Documents. Such affidavits of Purchaser, Certificates of Value or other documents as may be reasonably required by Title in order to record the Seller's Closing Documents and issue a Title Insurance Policy. 5. Prorations. Seller and Buyer agree to the following prorations and allocation of costs Agreement: Title and Closing Fee. Seller will pay all costs of the Title Evidence and the fees charged by Title for any escrow required regarding Tire Insurer's Objections. Buyer will pay all premiums required for the issuance of the Owner's Title Insurance Policy and any mortgagee's Title Policy required by Lender. Seller and Buyer will divide equally the closing fee or charge imposed by any closing agent designated by the Title Company. Deed Tax. Seller shall pay all state deed tax regarding the Warranty Deed to be delivered by Seller under this Agreement. Real Estate Taxes and Special Assessments. Seller will pay, on or before the Closing Date, all special assessments levied, pending or constituting a lien against the Real Property as of the Closing Date including without limitation any installments of special assessments including interest payable with general real estate taxes in the year of Closing. General real estate taxes and installments of special assessments payable therewith for the years prior to Closing will be paid by Seller. General real estate taxes payable in the year of Closing shall be prorated by Seller and Buyer as of the Closing Date based upon a calendar fiscal year. Seller shall pay all deferred real estate taxes or special assessments which may become payable as a result of the sale contemplated hereby. To the extent that levied assessments cannot be partially prepaid, Seller shall credit buyer at closing the Seller's proportionate share of such assessments. Basic Rents. All basic rem and other charges under the Leases will be prorated as of the Closing Date. If at the Closing Date a tenant under any Lease is delinquent in any payment required of it, then to the extent Buyer receives from such tenant mounts in excess of the payments due Buyer pursuant to this Agreement, Buyer will remit such amounts to Seller. However, Buyer will have no obligation to seek or collect any such payments and will only be obligated to make such payment to Seller after Buyer is fully paid for all amounts due it. Security Deposits. All security deposits paid by tenants pursuant to the rent roll, plus interest thereon, shall be paid to Buyer by Seller at closing. Recording Costs. Seller will pay the cost of recording all documents necessary to establish title in Seller as required by this Agreement. Buyer will pay the cost of recording all other documents. Other Costs. All other operating costs of the Property, will be allocated between Seller and Buyer as of the Closing Date, so that Seller pays that part of such other operating costs payable before the Closing Date, and Buyer pays that part of such operating costs payable from and after the Closing Date. -5- Attorney's Fees. Each of the parties will pay its own attorneys fees, except that a party defaulting under this Agreement or any closing document will pay the reasonable attorneys' fees and court costs incurred by the non-defaulting party to enforce its rights regarding such default. 6. Title Examination. Title Examination will be conducted as follows: (a) Seller's Title Evidence. Seller shall furnish the following (collectively, "Title Evidence") to Buyer: (1) Title Insurance Commitment. Within twenty (20) days of the date of this Agreement, Seller shall cause to be delivered to Buyer, at Seller's expense, a commitment for title insurance, issued by Tire, properly certified, including proper searches coveting bankruptcies, state and federal tax liens, judgments, unpaid taxes, assessments and pending assessments. (2) ALTA/ACSM Land Title Survey. Seller shall deliver to Buyer, at Seller's sole cost and expense, within 30 days after the execution of this Agreement, a currently certified ALTA/ACSM Land Title Survey meeting minimum standard detail requirements for an urban survey (1992). (3) UCC Searches. A report of UCC Searches made of the Uniform Commercial Code records of the Secretary of State of Mirmesota, made by said Secretary of State, or by search finn acceptable to Buyer, showing no UCC filings regarding any of the Property. (b) Buyer's Objections. Within 20 days after receiving the last of the Title Evidence, Buyer will make written objections ("Objections") to the form and/or contents of the Title Evidence. Buyer's failure to make Objections within such time period will constitute waiver of Objections. Any matter shown on such Title Evidence and not objected to by Buyer shall be a "Permitted Encumbrance" hereunder. Seller will have 60 days after receipt of the Objections to cure the Objections, during which period the Closing will be postponed as necessary. Seller shall use its best efforts to correct any Objections. If the Objections are not cured within such 60-day period, Buyer will have the option to: (1) Terminate this Agreement and receive a refund of the Earnest Money and the interest accrued and unpaid on the Earnest Money, if any, and, in such case, the parties agree to sign a Cancellation of Purchase Agreement; or (2) Withhold from the Purchase Price an amount which, in the reasonable judgment of Title, is sufficient to assure cure of the Objections. Any amount so withheld will be placed in escrow with Title, pending such cure. If Seller does not cure such Objections within ninety (90) days after such escrow is established, Buyer may then cure such Objections and charge the costs of such cure (including reasonable attorneys' fees) against the escrowed amount. If such escrow is established, the parties agree to execute and deliver such documents as may be reasonably required by Title, and Seller agrees to pay the charges of Title to create and administer the escrow. (3) Waive the objections and proceed to close. -6- 7. Operation Prior to Closing. During the period from the date of the Seller's acceptance of this Agreement to the Closing Date (the "Executory Period"), Seller shall operate and maintain the Property in the ordinary course of business in accordance with prudent, reasonable business standards, including the maintenance of adequate liability insurance and insurance against loss by fire, windstorm and other hazards, casualties and contingencies, including vandalism and malicious mischief. Representations and Warranties by Seller. Seller represents and warrants to Buyer as follows: (a) Title to Real Property. Seller owns the Real Property, free and clear of all encumbrances except the first mortgage which will be assumed by Buyer at the time of Closing. Co) Title to Personal Property. Seller owns the Personal Property free and clear of all encumbrances. (c) Leases. Seller has made available to Buyer a correct and complete copy of each Lease and all its amendments. The information regarding the Leases contained in attached Exhibit C is correct and complete as of the date of this Agreement. Except as noted by Seller, the Leases are in full force and neither Seller, nor any tenant, is in default under the Leases. There are no other leases or possessory rights of others regarding the Real Property. The term of each lease is for a month to month tenancy. (d) Contracts. To the best knowledge of Seller, Seller has made available to Buyer a correct and complete copy of each Contract and its amendments. To the best knowledge of Seller, the Contracts are in full force and neither Seller, nor any other party to the Contracts, is in default under the Contracts. All other contracts in effect regarding the Property are terminable on or before the Closing Date. (e) Permits. To the best knowledge of Seller, Seller has made available to Buyer a correct and complete copy of each Permit and its amendments. To the best knowledge of Seller, the Permits are in full force, and Seller is not in default under the Permits. (f) Certificates of Occupancy. Seller has received no notice of actual or threatened cancellation or suspension of any certificates of occupancy for any portion of the Real Property. (g) Assessments. Seller has received no notice of actual or threatened special assessments or reassessments of the Real Property. Environmental Laws. Seller hereby represents and warrants that, to the best of Seller's knowledge, the property is free of hazardous substances and is not subject to any "super fund" type liens or claims by governmental regulatory agencies or other third parties arising from the release or threatened release of hazardous substances in, on or about the property. Seller also represents and warrants that it has not used the property in connection with the generation, disposal, storage, treatment or transportation of hazardous substances. (i) Rights of Others to Purchase Property. Seller has not entered into any other contracts for the sale of the Property, nor are there any rights of first refusal or options to purchase the Property or any other rights of others that might prevent the consummation of this Agreement. 0) Seller's Defaults. To the best knowledge of Seller, Seller is not in default concerning any of its obligations or liabilities regarding the Property. -7- FIRPTA. Seller is not a "foreign person", i'foreign Partnership", "foreign trust" or "foreign estate" as those terms are defined in Section 1445 of the Internal Revenue Code. (1) Proceedings. To the best knowledge of Seller, there is no action, litigation, investigation, condemnation or proceeding of any kind pending or threatened against Seller or any portion of the Property. (m) Agents and Employees. No management agents or other personnel employed in connection with the operation of the Property have the right to continue such employment after the Closing Date. There are no claims for leasing commission or other payments with respect to the existing Property, including leases which will survive and remain unpaid after the Closing Date. (n) Condition. As of the Closing Date all plumbing and electrical will be in working order. Seller will indemnify Buyer, its successors and assigns, against, and will hold Buyer, its successors and assigns, harmless from, any expenses or damages, including reasonable attorneys' fees, that Buyer incurs because of the breach of any of the above representations and warranties, whether such breach is discovered before or after Closing. Each of the representations and warranties herein contained shall survive the Closing. Except as herein expressly stated, Buyer is purchasing the Property based upon its own investigation and inquiry and is not relying on any representation of Seller or other person and is agreeing to accept and purchase the property "as is, where is" subject to the conditions of examination herein set forth and the express warranties herein contained. Consummation of this Agreement by Buyer with knowledge of any such breach by Seller will constitute a waiver and release by Buyer of any claims due to such breach. 9. Representations and Warranties by Buyer. Buyer represents and warrants to Seller that Buyer is a corporation in good standing under the laws of the State of Minnesota; that Buyer is duly qualified to transact business in the State of Minnesota; that Buyer has the requisite power and authority to enter into this Agreement and the Buyer's Closing Documents signed by it; such documents have been duly authorized by all necessary action on the part of Buyer and have been duly executed and delivered; that the execution, delivery and performance by Buyer of such documents do not conflict with or result in violation of Buyer's organizational documents or any judgment, order or decree of any court or arbiter to which Buyer is a party; such documents are valid and binding obligations of Buyer, and are enforceable in accordance with their terms. Buyer will indemnify Seller, its successors and assigns, against, and will hold Seller, its successors and as§igns, harmless from, any expenses or damages, including reasonable attorneys' fees, that Seller incurs because of the breach of any of the above representations and warranties, whether such breach is discovered before or after closing. Consummation of this Agreement by Seller with knowledge of any such breach by Buyer will constitute a waiver and release by Seller of any claims due to such breach. 10. Name of Building. Seller agrees that it will relinquish and transfer to Buyer on the Closing Date, all rights to designate the name of the Building and agrees that Buyer shall have the right to continue the use of the present name. 11. Damage. If, prior to the Closing Date, all or any part of the Property is substantially damaged by fire casualty, the elements or any other cause, Seller shall immediately give notice to Buyer of such fact and at Buyer's option (to be exercised within thirty days after Seller's notice), this Agreement shall terminate, in which event neither party will have any further obligations under this Agreement and the Earnest Money, together with any accrued interest, shall be refunded to Buyer. If Buyer fails to elect to terminate despite such damage, or if the Property is damaged but not substantially, Seller shall promptly commence to repair such damage or destruction and return the property to its condition prior to such damage. If such damage -8- shall be completely repaired prior to the Closing Date then there shall be no-reduction in the Purchase Price and Seller shall retain the proceeds of all insurance related to such damage. If such damage shall not be completely repaired prior to the Closing Date but Seller is diligently proceeding t9 repair, then Seller shall complete the repair after the Closing Date and shall be entitled to receive the proceeds of all insurance related to such damage after repair is completed; provided, however, Buyer shall have the right to delay the Closing Date until repair is completed. If Seller shall fail to diligently proceed to repair such damage then Buyer shall have the right to require a closing to occur and the Purchase Price (and specifically the cash portion payable at the Closing Date) shall be reduced by the cost of such repair or at Buyer's option, the Seller shall assign to Buyer all right to receive the proceeds of all insurance related to such damage and the Purchase Price shall remain the same. For purposes of this Section, the words "substantially damaged" mean damage that would cost $100,000.00 or more to repair. 12. Condemnation. If, prior to the Closing Date, eminent domain proceedings are commenced against all or any part of the Property, Seller shall immediately give notice to Buyer of such fact and at Buyer's option (to be exercised within thirty days after Seller's notice), this Agreement shall terminate, in which event neither party will have further obligations under this Agreement and the Earnest Money together with any accrued interest, shall be refunded to buyer. If Buyer shall fail to give such notice then there shall be no reduction in the Purchase Price, and Seller shall assign to Buyer at the Closing Date all of Seller's right, title and interest in and to any award made or to be made in the condemnation proceedings. Prior to the Closing Date, Seller shall not designate counsel, appear in, or otherwise act with respect to the condemnation proceedings without Buyer's prior written consent. 13. Broker's Commission. Seller and Buyer represent and warrant to each other that they have dealt with no brokers, finders or the like in connection with this transaction, and agree to indemnify each other and to hold each other harmless against all claims, damages, costs or expenses of or for any other such fees or commissions resulting from their actions or agreements regarding the execution or performance of this Agreement, and will pay all costs of defending any action or lawsuit brought to recover any such fees or commissions incurred by the other party, including reasonable attorney's fees. 14. Survival. All representations and warranties contained in Paragraphs 8 and 9 of this Agreement shall survive the Closing of this transaction. 15. Notices. Any notice required or permitted to be given by any party upon the other is given in accordance with this Agreement if it is directed to Seller by delivering it personally to an officer 6f Seller, or if it is directed to Buyer, by delivering it personally to an officer of Buyer, or if mailed in a sealed wrapper by United States registered or certified mail, remm receipt requested, postage prepaid, or if deposited cost paid with a nationally recognized, reputable overnight courier, properly addressed as follows: If to Seller: City of Columbia Heights ATTN: City Manager 590 40th Avenue NE Columbia Heights, MN 55421 with a copy to: James D. Hoeft, Esq. Bama, Guzy & Steffen, Ltd. 400 Northtown Financial Plaza 200 Coon Rapids Boulevard Coon Rapids, MN 55433 If to Buyer: Washbum-McReavy Funeral Chapels, Inc. -9- ATTN: William L. McReavy 2413 Silver Lane NE St. Anthony Village, MN 55421 with a copy to: Jeffrey S. Johnson, Esq. Barna, Guzy & Steffen, Ltd. 400 Northtown Financial Plaza 200 Coon Rapids Boulevard Coon Rapids, MN 55433 Notices shall be deemed effective on the earlier of the date of receipt or the date of deposit as aforesaid; provided, however, that if notice is given by deposit, that the time for response to any notice by the other party shall commence to run one business day after any such deposit. Any party may change its address for the service of notice by giving written notice of such change to the other party, in any manner above specified, 10 days prior to the effective date of such change. 18. Captions. The paragraph headings or captions appearing in this Agreement are for convenience only, are not a part of this Agreement and are not to be considered in interpreting this Agreement. 19. Entire Agreement; Modification. This written Agreement constitutes the complete agreement between the parties and supersedes any prior oral or written agreements between the parties regarding the Property. There are no verbal agreements that change this Agreement and no waiver of any of its terms will be effective unless in writing executed by the parties. 20. Binding Effect. This Agreement binds and benefits the parties and their heirs, successors and assigns. 21. Controlling Law. This Agreement has been made under the laws of the State of Minnesota, and such laws will control its interpretation. 22. Remedies. If either party defaults under this Agreement, both parties shall retain all rights and remedies available under the laws of Minnesota. 23. Withdrawal of Offer. This Agreement shall be deemed to be withdrawn unless accepted by Seller and a fully executed counterpart of this Agreement returned to Buyer on or before September , 2000. -10- Seller and Buyer have executed this Agreement as of the date first written above. SELLER: City of Columbia Heights, A Minnesota municipal corporation BUYER: Washbum-McReavy Funeral Chapels, Inc., a Minnesota corporation BY: Its Mayor BY: William L. McReavy Its Chairman BY: Its City Clerk 96700 -11- Exhibit B Personal Property Exhibit D Contracts Exhibit F Permitted Encumbrances CONFLICT OF INTEREST DISCLOSURE STATEMENT This law fnma of Bama, Guzy & Steffen, Ltd. (the "Law Firm") has been requested to represent Washburn-McReavy Funeral Chapels, Inc., a Minnesota corporation ("Washburn- McReavy") in the matter of a land sale/purchase transaction involving Washbum-McReavy and The City of Columbia Heights ("City"). The facts relating to the Law Firm's representation of City and Washburn-McReavy are as follows: The Law Firm has represented both City and Washburn-McReavy in the past. The Law Firm represents both City and Washbum-McReavy at the present time and expects to continue representing both in the future. In connection with the proposed transaction, the Law Firm's role on behalf of Washbum- McReavy and City will be advice relating to the structuring of the transaction in a manner that would achieve for both clients the purchase and sale of the real property as mutually agreed upon by the parties, preparation of appropriate documentation to evidence the basic agreements made by the companies, and such other documentation as may be necessary to facilitate the consummation of the proposed transaction. AGREEMENT I have reviewed the foregoing statement disclosing that a conflict of interest exists for the law firm of Bama, Guzy & Steffen, Ltd. (the "Law Firm") in connection with its simultaneous representation of the City of Columbia Heights ("City") and Washbum-McReavy Funeral Chapels, Inc., a Minnesota corporation CWashbum-McReavy"). I understand that the conflict arises out of the Law Firm's representation of both parties in a land sale/purchase transaction now being negotiated between the parties. With the authority vested in me by the board of directors as Chairman of Washbum- McReavy, I hereby consent on behalf of Washbum-McReavy to the Law Finn's representation of both parties in the aforementioned transaction. Furthermore, on behalf of Washburn- McReavy and with the authority of the board of directors, I waive any objection to such conflict of interest based on the facts of which I am aware on the date hereof. On behalf of Washbum- McReavy, I also waive any breach of confidentiality as to information the Law Firm may have obtained concerning Washbum-McReavy's affairs in its role as Washbum-McReavy's counsel in past matters. Dated this day of September, 2000. WASHBURN-MCREAVY FUNERAL CHAPELS, INC., a Minnesota corporation By: William L. McReavy Its: Chairman -2- AGREEMENT On behalf of the City of Columbia Heights ("City") We have reviewed the foregoing statement disclosing that a conflict of interest exists for the law firm of Barna, Guzy & Steffen, Ltd. (the "Law Firm") in connection with its simultaneous representation of the City and Washburn-McReavy Funeral Chapels, Inc., a Minnesota corporation CWashbum-McReavy"). We understand that the conflict arises out of the Law Firm's representation of both parties in a land sale/purchase transaction now being negotiated between the parties. The City hereby consems to the Law Firm's representation of both parties in the aforementioned transaction. The City waives any objection to such conflict of interest based on the facts of which we are aware on the date hereof. Dated this __ day of September, 2000. City of Columbia Heights 96701 1 By: By: Its Mayor Its City Clerk -3- CITY OF COLUMBIA HEIGHTS Meetin~ o:: September 25, 2000 AGENDA SECTION: "'-[ C ORIGINATING DEPARTMENT: CITY MANAGER NO: - Community Development APPROVAL ITEM: Approval of Preliminary BY: Kenneth R. Anderson~r-~, )[ BY:~/~ Development Agreement for DATE: September 20, 2000 ~_¥~ Transition Block Redevelopment Project ISSUE STATEMENT: The City Council is requested to approve the Preliminary Development Agreement for the Transition Block Redevelopment Project. BACKGROUND/ANALYSIS: The Transition Block Redevelopment Project consists of a proposal to construct 22 units of affordable rental townhouses and 50 units of assisted senior living units generally between 41st and 42"a Avenue N.E. and Central Avenue and Jackson Streets N.E. In order for the developer to proceed further with the project planning and property acquisition, they have requested the City/EDA consider approval of a Preliminary Development Agreement. Attached please find a memorandum from Dan Greensweig, legal counsel with Kennedy and Graven, Chartered. The cover memo and attached Preliminary Development Agreement discuss the background and policy highlights of concern to the Columbia Heights Economic Development Authority and the City of Columbia Heights. The attached Preliminary Development Agreement will require approval by the City of Columbia Heights and the Columbia Heights Economic Development Authority as well as the developer ownership entity, Columbia Heights Transition Block, LLC. The attached draft is the fifth draft and is dated September 15, 2000. Please refer to the attached memorandum for a discussion of the issues and policies which should be considered by the City Council and the Columbia Heights EDA for consideration prior to approval of the proposed Preliminary Development Agreement. RECOMMENDATION: The Columbia Heights Economic Development Authority has approved the proposed Preliminary Development Agreement at its meeting of September 19, 2000. RECOMMENDED MOTION: Move to approve the Preliminary Development Agreement by and among the City of Columbia Heights and Columbia Heights Economic Development Authority and Columbia Heights Transition Block, LLC; and furthermore, to authorize the Mayor and City Manager to enter into an agreement for the same. Attachments: COUNCIL ACTION: H: \Consent\Approval of Preliminary Agr. [Ken Anderson-Cover le~er memo re real estate equities preliminary development con Page 1 EDA/City Council September 13, 2000 Page 1 of 3 ': cHARTERED 470 Pillsbury Center 200 South Sixth Street Minneapolis MN 55402 (612) 337-9300 telephone (612) 337-9310 fax http://www, kennedy-graven.com DANIEL J. Gm~E~sw~,m Attorney at La,~ Direct Dial (612) 337-9231 e-mail: dgreenswcig~kennedy-graven.con' September 13, 2000 President and Commissioners Columbia Heights Economic Development Authority 590 40th Avenue, NE Columbia Heights, MN 55421 Mayor and Councilmembers City of City of Columbia Heights 590 40th Avenue NE Columbia Heights, MN 55421 BY E-MAIL Ken Anderson asked that I provide you with this memo as a brief description of the Real Estate Equities/Crest View preliminary development agreement being considered by the City of Columbia Heights and the Columbia Heights Economic Development Authority. (You will note that there are a number of different development entities referenced in the agreement, but they are all controlled by, closely related to, or established by Real Estate Equities or Crest View, and I will use those names for ease of discussion). I am assuming that you will have drawings available at your meetings and that someone will be present and able to answer planning, architectural, and related questions, and I will therefore not attempt to describe the project from those perspectives. Although this memo should not be considered a substitute for a complete review of the entire agreement, there are a number of points that are worth highlighting. To begin with, and perhaps most importantly, this agreement is intentionally designed as a preliminary agreement, as DJG-186055vl CL205-11 Ken Anderson - Cover letter memo re real estate equities preliminary development con Page 2 I EDNCity Council September 13, 2000 Page 2 of 3 explained in its Section 3.4. Therefore, it is subject to the City, the EDA, and the developer mutually making decisions on any number of design, planning, and financing issues, and those decisions being reflected in future documents that will supercede this preliminary one. Failure to reach agreement on those points will essentially result in this preliminary agreement terminating without any further obligation on behalf of the city or EDA. Nevertheless, Real Estate Equities believes that the City and EDA are interested in the proposed project and feels that this sort of preliminary agreement will help in a number of ways, including making it easier for Real Estate Equities to obtain both the property it needs and other sources of financing. As to the actual content of the transaction, it can be summarized as follows. Real Estate Equities will construct a 22-unit low-income tax credit eligible rental complex. Crest View will construct a 50-unit senior rental housing facility. Both these projects will be constructed according to the terms of a planned unit development agreement that is in the process of being worked out by the city attorney, and that will also include NEI, which is the current owner of much of the property that will be used for the new development. In addition to entering into the PUD agreement, the City and EDA will participate in two major ways. First, they will assist Real Estate Equities in obtaining title to property necessary to the project, including an existing locksmith shop and the home at 4157 Jackson Street. I believe that discussions are underway with those property owners. Second, the EDA will establish a tax increment financing district, presumably a redevelopment district, to help provide financing. While no definite agreements have been reached, it is currently envisioned that revenue notes with a 21-year term would be issued. Real Estate Equities would use the TIF generated by the tax credit project to help support its cash flow. Crest View would use the TIF generated by the senior rental facility to help repay 501(c)(3) revenue bonds that would be issued by the City to assist in financing construction of this facility. This financing plan would also be supported by money received through Livable Communities grants, HOME funds, CDBG funds, and MHOP sources. Again, however, the financing plan has not been finalized, and a number of issues, such as the source and application of the local match necessary for the proposed redevelopment TIF district, has not yet been formally determined. There are, of course, a number of other provisions in the preliminary agreement, pertaining to insurance requirements, construction plans, and the like, but they are for the most part self- explanatory and I do not think it is necessary to go over them in this memo. From the perspective of the City and the EDA, the most important questions you should ask as you determine whether to approve execution of this agreement are: Do you approve of this project from a policy standpoint, after considering land use, economic development, and other related objectives? Do you want to encourage Real Estate Equities to continue moving ahead with the project? DJG-186055vl CL205-11 Ken Anderson, Cover letter mem0 re leal estate equ!ties preliminary de~elgP~ent ~p~ EDNCity Council September 13, 2000 Page 3 of 3 Does the proposed structure of the project, both financial and otherwise, seem appropriate in a very general way? If the answer to any of the previous questions are no, then the agreement should not be executed, at least until any concerns can be resolved. If the answers to the previous questions are yes, then I recommend that the EDA and City approve execution of this preliminary agreement, doing so with the understanding that either body, or Real Estate Equities, can terminate the agreement and stop the process at almost any time prior to final agreements being signed. I offer this recommendation, however, with the understanding that even though the agreement allows termination at virtually any time, it is always better to address issues and concerns earlier rather than later. Thus, I would not suggest entering into the agreement if either the EDA or the City believes that there are currently significant and potentially insurmountable obstacles to the construction of the proposed facilities. In any event, to the extent that it has not already occurred, this is an appropriate time for the EDA and the City to have a thorough public discussion with Real Estate Equities about its proposal. Please let me know if you have any further questions or if I can be of any further assistance. Sincerely, Daniel J. Greensweig DJG: Attachments DJG-186055vl CL205-11 Ken Anderson _ fifth draft real estate e uities relimina development COntract dOC pae 1 Fifth Draft September 13, 2000 PRELIMINARY DEVELOPMENT AGREEMENT BY AND AMONG CITY OF COLUMBIA HEIGHTS AND Columbia Heights ECONOMIC DEVELOPMENT AUTHORITY AND Columbia Heights transition block llc Dated ,2000 This document was drafted by: KENNEDY & GRAVEN, Chartered 470 Pillsbury Center Minneapolis, MN 55402 (612) 337-9300 DJG- 178 ! 66v5 CL205-11 PRELIMINARY DEVELOPMENT AGREEMENT THIS AGREEMENT is made as of the __ day of ., 2000 by and among the City of Columbia Heights, Minnesota, a municipal corporation under the laws of Minnesota (the "City"), the Columbia Heights Economic Development Authority, a body corporate and politic (the "Authority") Columbia Heights Transition Block LLC, a Minnesota limited liability company (the "Developer"). WITNESSETH: WHEREAS, the City and the Authority have determined that: (i) the Developer has proposed a project to redevelop certain blighted property within the City; (ii) there is a need to alleviate a shortage of decent, safe and sanitary housing for persons aged 62 and older and other persons of low or moderate income in the City; and (iii) it is appropriate in this connection to envision the creation of one or more tax increment financing districts within the City pursuant to Minnesota Statutes, Sections 469.174 to 469.179; and WHEREAS, the City and the Authority have determined to address such blight and shortage in part through redevelopment of certain property within the City and the facilitation of the development of housing for low and moderate income persons as further described herein; WHEREAS, in order to achieve their objectives as described herein, the parties hereto are prepared to pay certain development costs and undertake certain activities in order to bring about redevelopment of blighted property and development of housing for persons of low or moderate income; WHEREAS, the City and the Authority believe that the fulfillment generally of this Agreement is in the vital and best interests of the Authority and the City, and the health, safety, morals, and welfare of its residents, and in accord with the public purposes and provisions of the applicable State and local laws and requirements under which the development intended hereunder will be undertaken and is being assisted; and WHEREAS, the Developer desires to acquire title to certain real property within the City, to be transferred to separate parties designated herein for the purpose of developing and constructing a senior housing assisted living residential facility (the "Senior Housing Project") and a rental housing multi-family residential facility (the "Rental Housing Project"). NOW, THEREFORE, in consideration of the mutual covenants and obligations of the City, the Authority and the Developer, each party does hereby represent, covenant and agree with the other as follows: 2 DJG-178166v5 CL205-11 ARTICLE I Definitions Section 1.1. In this Agreement, unless a different meaning clearly appears from the context: "Agreement" means this Agreement, as the same may be from time to time modified, amended, or supplemented. "Authority" means the Columbia Heights Economic Development Authority. "Bond Documents" means, collectively, the documents entered into by any or all of the parties hereto in connection with issuance of the Bonds. "Bonds" means the tax-exempt 501(c)(3) bonds expected to be issued by the City to assist in financing the Senior Housing Project. "City" means the City of Columbia Heights, Minnesota. "Closing Date" means, with respect to the Senior Housing Project, the date of the issuance of the Senior Housing Note, and with respect to the Rental Housing Project, the date of issuance of the Rental Housing Note. "Concept Plan" means the plans, descriptions, and other materials set forth at Exhibit A hereto and pertaining to the Rental Housing Project and the Senior Housing Project. "Construction Plans" means plans, specifications, drawings and related documents on the construction work to be performed on the Property which (a) shall be as detailed as the plans, specifications, drawings and related documents which are submitted to the appropriate building officials of the City, and (b) shall include at least the following: (1) site plan; (2) landscape plan; and (3) such other plans or supplements to the foregoing plans as the City may reasonably request to allow it to ascertain the nature and quality of the proposed construction work and that are available to the Developer at a reasonable cost. The Construction Plans for any building to be constructed on the Property shall additionally include the following: (1) foundation plan; (2) basement plans; (3) floor plan for each floor; (4) cross sections of each (length and width); and (5) elevations (all sides). "Crest View" means Crest View Corporation, a Minnesota nonprofit corporation, or its permitted successors and assigns. "Crest View Advanced Missions I LLC" means Crest View LLC, a Colorado nonprofit limited liability company which is a member of Crest View ONDC I and of which Crest View Corporation is the single member. 3 DJG-178166v5 CL205~1 l "Crest View ONDC I" means Crest View ONDC I, a Minnesota nonprofit corporation qualifying as an organization described within Section 501(c)(3) of the Internal Revenue Code of 1986, which has as its sole members Crest View Advanced Missions I LLC and ONDC. "County" means the County of Anoka, Minnesota. "Definitive Development Agreements" means the final contracts for private development to be entered into pursuant to Section 3.1(i) among the City, the Authority and the Rental Housing Owner with respect to the Rental Housing Project and among the City, the Authority and the Senior Housing Owner with respect to the Senior Housing Project. "Developer" means Columbia Heights Transition Block LLC, a Minnesota limited liability company, or its permitted successors and assigns. "Event of Default" means an action by the Developer listed in Article IX of this Agreement. "Holder" means the owner of a Mortgage. "Material" means any effect or change which significantly alters the intended use of the Property, or increases or decreases the costs of any individual item of the Minimum Improvements by more than $100,000. "Maturity Date" means the date that the Notes have both been paid in full or have otherwise been terminated according to their terms. "Minimum Improvements" means the construction on the Property of the Rental Housing Project and the Senior Housing Project. "Mortgage" means any mortgage made by the Rental Housing Owner or the Senior Housing Owner which is secured, in whole or in part, with the portion of the Property owned by such party and which is a permitted encumbrance pursuant to the provisions of Article VIII of this Agreement. "NEI" means NEI College of Technology, a Minnesota nonprofit corporation, which is the seller of the Property and the owner of real property adjacent to the Property. "ONDC" means Opportunity Neighborhood Development Corporation, a Minnesota nonprofit corporation. "Parcel 1" means the real property on which the Rental Housing Project will be constructed as shown generally on the Concept Plan. "Parcel 2 means the real property on which the Senior Housing Project will be constructed as shown generally on the Concept Plan. 4 DJG-178166v5 CL205-11 "Planned Unit Development Agreement" means the agreement of such name to be entered into by and among the City, the Rental Housing Owner, the Senior Housing Owner, and NEI pertaining to granting of the appropriate permits and authorizations necessary to provide for a planned unit development project. "Property" means Parcel 1 and Parcel 2, collectively. "Rental Housing Note" means a Tax Increment Revenue Note to be delivered by the Authority to the Rental Housing Owner for the purpose of assisting in financing the Rental Housing Project, such note expected to have a term of 21 years and commit to payments by the Authority to the Rental Housing Owner of 89.75% of the Tax Increment generated by the Rental Housing Project and received by the Authority. "Rental Housing Owner" means Columbia Heights Housing Limited Partnership I, a Minnesota limited partnership, or its permitted successors and assigns. "Rental Housing Project" means the construction on Parcel 1 of a 22-unit affordable rental complex that: (i) meets all the requirements for a low-income tax credit under Section 42 of the Intemal Revenue Code of 1986, as amended through the date of this Agreement; and (ii) otherwise complies with the requirements pertaining thereto as set forth in this Agreement, the Planned Unit Development Agreement, and the Definitive Development Agreements. "Senior Housing Note" means a Tax Increment Revenue Note to be delivered by the Authority to the Senior Housing Owner for the purpose of assisting in financing the Senior Housing Project, such note expected to have a term of 21 years and commit to payments by the Authority to the Senior Housing Owner 89.75% of the Tax Increment generated by the Senior Housing Project and received by the Authority. "Senior Housing Owner" means Crest View ONDC I, or, on an interim basis, pending receipt of a determination letter from the Internal Revenue Service regarding the tax-exempt status of Crest View ONDC I and/or Crest View Advanced Missions I LLC. "Senior Housing Project" means the construction on Parcel 2 of a 50-unit senior rental housing facility that complies with the requirements pertaining thereto as set forth in the Bond Documents, this Agreement, the Planned Unit Development Agreement, and the Definitive Development Agreements. "State" means the State of Minnesota. "Tax Increment" means that portion of the real property taxes which is paid with respect to the TIF District and which is remitted to the Authority as tax increment pursuant to the Tax Increment Act. "Tax Increment Act" or "TIF Act" means the Tax Increment Financing Act, Minnesota Statutes, Sections 469.174 to 469.179, as amended. 5 DJG-178166v5 CL205-11 - fifth draft ~eal estate equities preiimina~ development contract a°~ p~ge6 Ken Anderson t "Tax Increment District" or "TIF District" means the one or more tax increment financing districts expected to be created by Authority to assist in financing construction of the Minimum Improvements. "Tax Increment Plan" or "TIF Plan" means the Authority's tax increment financing plan or plans, as the case may be, for the TIF District, as it or they may be amended. "Tax Official" means any County assessor, County auditor, County or State board of equalization, the commissioner of revenue of the State, or any State or federal district court, the tax court of the State, or the State Supreme Court. "Unavoidable Delays" means delays beyond the reasonable control of the party seeking to be excused as a result thereof which are the direct result of strikes, other labor troubles, prolonged adverse weather or acts of God, fire or other casualty to the Minimum Improvements, litigation commenced by third parties which, by injunction or other similar judicial action, directly results in delays, or acts of any federal, state or local governmental unit (other than the City in exercising its rights under this Agreement) which directly result in delays. 6 DJG- 178166v5 CL205-11 Ken AnderSon, fifth d[aft real eState equities preii~inary deye!opment 9ontr~gt~doc ~ : PagezI ARTICLE II Representations and Warranties Section 2.1. Representations by the City. The City makes the following representations as the basis for the undertaking on its part herein contained: (a) hereunder. The City has the power to enter into this Agreement and carry out its obligations (b) The activities of the City are undertaken to redevelop blighted property within the City and facilitate the creation of housing opportunities for persons aged 62 and older and other persons of low and moderate income. Section 2.2. Representations by the Authority. The Authority represents and warrants that: (a) The Authority has the power to enter into this Agreement and carry out its obligations hereunder. (b) The activities of the Authority are undertaken to redevelop blighted property within the City and facilitate the creation of housing opportunities for persons aged 62 and over and other persons of low and moderate income. Section 2.3. Representations and Warranties by Developer. Developer represents and warrants that: (a) Developer is a limited liability company in good standing under the laws of Minnesota and has power to enter into this Agreement. (b) Developer has received no notice or communication from any local, State, or federal official that the activities of the Developer, the City, the Authority, the Rental Housing Owner or the Senior Housing Owner pursuant to or envisioned by this Agreement may be or will be in violation of any environmental law or regulation. Developer is aware of no facts the existence of which would cause the Developer, the Rental Housing Owner or the Senior Housing Owner to be in violation of or give any person a valid claim under any local, State, or federal environmental law, regulation, or review procedure. (c) Neither the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with the terms and conditions of this Agreement is prevented, limited by, or conflicts with or results in a breach of the terms, conditions, or provisions of any corporate or partnership restriction or any evidences of indebtedness, agreement, or instrument of whatever nature to which Developer is now a party or by which it is bound, or constitutes a default under any of the foregoing. 7 DJG- 178 166v5 CL205-11 (d) The development of the Minimum Improvements would not occur but for the tax increment financing assistance being provided hereunder. 8 DJG- 178166v5 CL205-I 1 Page 9t ARTICLE III Public Assistance and Other Undertakines Section 3.1. Undertakings of the Parties. In order to make development of the Minimum Improvements economically feasible, the parties to this Agreement expect to undertake certain activities, which may include, but not necessarily be limited to, the following: (a) On or prior to the Closing Date for the Rental Housing Project, the Developer shall transfer fee ownership of Parcel 1 to the Rental Housing Owner and the Rental Housing Owner shall enter into the Definitive Development Agreement with the City and the Authority pursuant to which the Rental Housing Owner assumes all obligations of the Developer hereunder relating to the Rental Housing Project. On or prior to the Closing Date for the Senior Housing Project, the Developer shall acquire and transfer fee ownership of Parcel 2 to the Senior Housing Owner and the Senior Housing Owner shall enter into the Definitive Development Agreement with the City and the Authority pursuant to which the Senior Housing Owner assumes all obligations of the Developer hereunder relating to the Senior Housing Project. (b) The Developer shall cause the Rental Housing Owner and the Senior Housing Owner to undertake construction of the Minimum Improvements in substantially the form shown in the Concept Plan. (c) The City and the Authority shall take such steps as are required to review: (i) vacation of an existing alley; (ii) relocation of a an existing storm drainage pond and easement, (iii) the Planned Unit Development Agreement; and (iv) such other requests for replatting, lot splits, parking, financing, variances, rezoning, and related items as may be deemed necessary or desirable for construction of the Minimum Improvements. (d) The City or the Authority shall design, finance, and construct parking improvements and enter into agreements necessary to facilitate the Developer's execution and performance of a purchase agreement with NEI, such purchase agreement to be for the purpose of acquiring property necessary for the construction of the Minimum Improvements. (e) The City or the Authority shall cooperate with the Developer in acquiring other property necessary for the construction of the Minimum Improvements to the extent that such property is currently owned by third-parties, provided that the Developer shall be responsible for all costs of such acquisition, whether incurred by the Developer, the City, or the Authority, and provided further that the City or the Authority may undertake condemnation proceedings if either or both decide in their respective sole discretion that doing so will appropriately facilitate construction of the Minimum Improvements. (f) The City or the Authority shall acquire from the owner or, if it becomes the owner, the Developer, the real property parcel located immediately adjacent to the Property with the street address of 4157 Jackson Street, Colun~bia Heights, Minnesota, and shall move the existing single-family house thereon to a location within the City, such site to be determined in 9 DJG- 178166v5 CL205-11 the sole discretion of the City or the Authority. (g) The City or the Authority shall undertake green space improvements adjacent to the Property, such improvements as to be determined to the mutual satisfaction of the parties to this Agreement and as generally shown in the Concept Plan. (h) The Authority shall, for consideration of $1.00, convey to the Developer, or to the Rental Housing Owner or the Senior Housing Owner, as determined by the Developer, certain property owned by the Authority as of the date of this Agreement and necessary for the construction of the Minimum Improvements, as generally described in the Concept Plan. (i) The Authority shall enter into Definitive Development Agreements with the Senior Housing Owner and the Rental Housing Owner pursuant to which the Authority will issue the Senior Housing Note and the Rental Housing Note or otherwise undertake tax increment financing assistance to the Senior Housing Project and the Rental Housing Project, and all parties hereto shall undertake such other related actions as are necessary to create the related TIF District. (j) The City or the Authority shall issue conduit 501(c)(3) bonds and loan the net proceeds thereof to the Senior Housing Owner pursuant the terms of a loan agreement with the Senior Housing Owner and other necessary or desirable bond documents, for the purpose of financing the construction of the Senior Housing Project, and the Senior Housing Owner and the City or the Authority shall each undertake all necessary or desirable related actions. (k) The parties hereto shall enter into such other agreements as may be necessary or desirable, including but not limited to agreements pertaining to the use of HOME, CDBG, LCA, and MHOP funds. Section 3.2. Payment of Administrative Costs. The Developer agrees to pay all costs incurred by the City and the Authority in the preparation, review, and approval of this Agreement and any other agreement, resolution, financial calculation, engineering review, document, review, or process prepared or undertaken pursuant to or arising out of this Agreement (the "Administrative Costs"). Prior to or immediately upon the execution of this Agreement by the City and the Authority, the Developer shall pay to the Authority the amount of $10,000, such amount to be applied to Administrative Costs. The Developer shall further from time to time pay, or cause the Rental Housing Owner or the Senior Housing Owner, as the case may be, to pay, to the City and the Authority, within ten (10) days of request for such payment by the City or the Authority, any amount by which the Administrative Costs exceed $10,000 and for which the City or the Authority have not been previously reimbursed. The Developer acknowledges and agrees that time is of the essence with regard to this Section 3.2 and that the obligations of the City and the Authority hereunder are expressly contingent on the Developer's compliance with the terms of this Section 3.2. The provisions of this Section 3.2 shall survive termination of this Agreement. Section 3.3. Soil Conditions. The Developer acknowledges that neither the City nor the Authority make any representations or warranties as to the condition of the soils on the Property 10 DJG- 178166v5 CL205-11 Ken Anders°n. fifth draft real eState equities preliminary devel°pment c0ntra~t, d0C page 11 I or any other parcel of land or its fitness for construction of the Minimum Improvements or any other purpose for which the Developer may make use of the Property or such parcel. The Developer further agrees that it will indemnify, defend, and hold harmless the City, and its governing body members, officers, and employees, from any claims or actions arising out of the presence, if any, of hazardous wastes or pollutants on the Property. The provisions of this Section 3.3 shall survive termination of this Agreement. Section 3.4. Necessity for Final Agreement; Relationship of Parties. (a) It is the intention of the parties to this Agreement that this Agreement be construed as an agreement to negotiate in good faith regarding the terms and conditions of one or more final agreements to be entered into by or among the parties and setting forth the complete understanding of the parties regarding the Minimum Improvements, the Planned Unit Development Agreement, and all other undertakings related to them; provided, however, that each party to this Agreement shall have the sole and absolute discretion to accept or reject any such final agreements on any terms such party deems desirable. (b) Notwithstanding anything to the contrary herein, if the City, the Authority, or both have not, by no later than June 30, 2001, entered into one or more Definitive Development Agreements with the Rental Housing Owner and the Senior Housing Owner that expressly supercede this Agreement, this Agreement shall automatically terminate. In addition to the foregoing, any party to this Agreement may at any time and for any reason or no reason immediately terminate this Agreement upon providing notice to the other parties as provided herein. (c) In no case, shall this Agreement be construed as creating any joint venture or parmership between the City or the Authority and any other person. 11 DJG-178166v5 CL205-11 ARTICLE IV Construction of Minimum Improvements Section 4.1. Construction of Minimum Improvements. (a) The Developer will cause the Rental Housing Owner and the Senior Housing Owner to construct the Minimum Improvements on the Property in accordance with the Construction Plans. At all times prior to the Maturity Date, the Developer will cause the Rental Housing Owner and the Senior Housing Owner to operate and maintain, preserve, and keep the Minimum Improvements, or cause the Minimum Improvements to be maintained, preserved, and kept, with the appurtenances and every part and parcel thereof, in good repair and condition. Neither the City nor the Authority shall have any obligation to operate or maintain the Minimum Improvements. (b) The Developer will cause the Rental Housing Owner and the Senior Housing Owner to construct the Minimum Improvements in accordance with all local, State, and federal energy-conservation laws or regulations. (c) The Developer will obtain, or cause the Rental Housing Owner and the Senior Housing Owner to obtain, in a timely manner, all required permits, licenses, and approvals, and will meet, in a timely manner, all requirements of all applicable local, State, and federal laws and regulations which are required to be obtained or met before the Minimum Improvements can be lawfully constructed, including, without limitation, the requirements of any necessary special use permits. (d) The Developer shall promptly advise the City and the Authority, or cause the Rental Housing Owner and the Senior Housing Owner to promptly advise the City and the Authority, in writing of all litigation or claims affecting any part of the Minimum Improvements and all written complaints and charges made by any governmental authority materially affecting the Minimum Improvements or materially affecting the Developer, the Rental Housing Owner, the Senior Housing Owner, or their businesses which may require changes in construction of the Minimum Improvements. Section 4.2. Construction Plans. (a) Before beginning construction of the Minimum Improvements, the Developer shall submit, or cause the Rental Housing Owner and the Senior Housing Owner to submit, Construction Plans to the City and the Authority. The Construction Plans shall provide for the construction of the Minimum Improvements and shall be in conformity with the Bond Documents, this Agreement, the Planned Unit Development Agreement, the Definitive Development Agreements and all applicable State and local laws and regulations. The City and the Authority will approve the Construction Plans in writing if: (i) the Construction Plans conform to the terms and conditions of this Agreement and the Planned Unit Development Agreement; (ii) the Construction Plans conform to the goals and objectives of the Development Plan; (iii) the Construction Plans conform to all applicable federal, state and local laws, ordinances, rules and regulations; (iv) the Construction Plans are adequate to provide for construction of the Minimum Improvements; (v) the Construction Plans do not provide for expenditures in excess of the funds available to the respective owner for construction of the 12 DJG- 178166v5 CL205-11 Ken Anderson :fifth draft real estate equities pre!!minary deyel0pment 90ntra%do~ Page 13 I Minimum Improvements; and (vi) no Event of Default has occurred. Approval may be based upon a review by the City's Building Official of the Construction Plans. No approval by the City or the Authority shall relieve the Developer, the Rental Housing Owner or the Senior Housing Owner of the obligation to comply with the terms of this Agreement, the Definitive Development Agreement to which any such person is a party, or of the Development Plan or of the Planned Unit Development Agreement, applicable federal, state and local laws, ordinances, rules and regulations, or to construct the Minimum Improvements in accordance therewith. No approval by the City or the Authority shall constitute a waiver of an Event of Default hereunder or under the respective Definitive Development Agreement. If approval of the Construction Plans is requested by the Developer, the Rental Housing Owner or the Senior Housing Owner in writing at the time of submission, such Construction Plans shall be deemed approved unless rejected in writing by the City or the Authority, in whole or in part. Such rejections shall set forth in detail the reasons therefore, and shall be made within fourteen (14) days after the date of their receipt by the City and the Authority. If the City or the Authority rejects any Construction Plans in whole or in part, the Developer shall submit or shall cause the Rental Housing Owner or the Senior Housing Owner to submit new or corrected Construction Plans within fourteen (14) days after written notification to the Developer of the rejection. The provisions of this Section relating to approval, rejection and resubmission of corrected Construction Plans shall continue to apply until the Construction Plans have been approved by the City and the Authority. Said approval shall constitute a conclusive determination that the Construction Plans (and the Minimum Improvements constructed in accordance with said plans) comply to the City's and the Authority's satisfaction with the provisions of this Agreement relating thereto. (b) If the Developer desires to make any material change in the Construction Plans after their approval by the City and the Authority, the Developer shall submit or shall cause the Rental Housing Owner or the Senior Housing Owner to submit the proposed change to the City and the Authority for their approval. If the Construction Plans, as modified by the proposed change, conform to the requirements of this Section 4.2 of this Agreement with respect to such previously approved Construction Plans, the City and the Authority shall approve the proposed change and notify the Developer in writing of its approval. Such change in the Construction Plans shall, in any event, be deemed approved by the City and the Authority unless rejected, in whole or in part, by written notice by the City or the Authority to the Developer or the submitting party, setting forth in detail the reasons therefor. Such rejection shall be made within ten (10) days after receipt of the notice of such change. Section 4.3. Commencement and Completion of Construction. The Developer shall complete or shall cause the Rental Housing Owner or the Senior Housing Owner to complete the construction of the Minimum Improvements within eighteen (18) months of the respective Closing Date. All work with respect to the Minimum Improvements to be constructed or provided by the Developer or the Rental Housing Owner or the Senior Housing Owner, as the case may be, on the Property shall be in conformity with the Construction Plans. Section 4.4. Certificate of Completion. (a) Promptly after substantial completion of the Minimum Improvements in accordance with those provisions of the respective Definitive Development Agreements relating solely to the obligations of the Developer, or the Rental Housing Owner or the Senior Housing Owner, as the case may be, to construct the Minimum 13 DJG- 178166v5 CL205-11 Improvements (including the dates for beginning and completion thereof), the Authority will furnish the Developer and either the Rental Housing Owner or the Senior Housing Owner, as the case may be, with a certificate evidencing the conclusive determination of satisfaction and termination of the agreements and covenants in this Agreement and the respective Definitive Development Agreements with respect to the obligations of the Developer, the Rental Housing Owner or the Senior Housing Owner, and their successors and assigns, to construct the Minimum Improvements and the dates for the beginning and completion thereof. Such certification and such determination shall not constitute evidence of compliance with or satisfaction of any obligation of the Developer, the Rental Housing Owner or the Senior Housing Owner to any Holder of a Mortgage, or any insurer of a Mortgage, securing money loaned to finance the Minimum Improvements, or any part thereof. (b) If the Authority shall refuse or fail to provide any certification in accordance with the provisions of this Section 4.4, the City shall, within thirty (30) days after written request by the Developer, the Rental Housing Owner or the Senior Housing Owner, provide the requesting party with a written statement, indicating in adequate detail in what respects the Developer or such other requesting party has failed to complete the Minimum Improvements in accordance with the provisions of this Agreement, or is otherwise in default, and what measures or acts it will be necessary, in the opinion of the Authority, for the Developer or such other requesting party to take or perform in order to obtain such certification. (c) The construction of the Minimum Improvements shall be deemed to be substantially completed when the Developer or the Rental Housing Owner or the Senior Housing Owner, as the case may be, has received an occupying permit from the responsible inspecting authority for all residential units, common areas, and other portions of the Minimum Improvements. 14 DJG-178166v5 CL205-11 Ken Anderson - fifth draft real estate equities preliminary development contract, doc Page 15, ARTICLE V Insurance 5.1. Insurance. (a) Upon commencement of construction and continuing until at least the Maturity Date, the Developer shall maintain, or cause to be maintained, at its cost and expense, and from time to time at the request of the Authority shall furnish proof of the payment of premiums on, insurance as follows: (i) Insurance against loss and/or damage to the Minimum Improvements under a policy or policies covering such risks as are ordinarily insured against by similar businesses; (ii) Comprehensive general public liability insurance, including personal injury liability (with employee exclusion deleted), against liability for injuries to persons and/or property, in the minimum amount for each occurrence and for each year of $1,000,000, and shall be endorsed to show the Authority as additional insured; and (iii) Such other insurance, including workers' compensation insurance respecting all employees of the Developer, or the owner of such Project, in such amount as is customarily carded by like organizations engaged in like activities of comparable size and liability exposure. (b) All insurance required in this Article V shall be taken out and maintained in responsible insurance companies selected by the Developer which are authorized under the laws of the State to assume the risks covered thereby. Upon request, the Developer will deposit or will cause the Rental Housing Owner or the Senior Housing Owner to deposit annually with the Authority policies evidencing all such insurance, or a certificate or certificates or binders of the respective insurers stating that such insurance is in force and effect. Unless otherwise provided in this Article V of this Agreement, each policy shall contain a provision that the insurer shall not cancel nor modify it in such a way as to reduce the coverage provided below the amounts required herein without giving written notice to the City and the Authority at least thirty (30) days before the cancellation or modification becomes effective. In lieu of separate policies, the Developer may maintain or cause the Rental Housing Owner or the Senior Housing Owner to maintain a single policy, blanket or umbrella policies, or a combination thereof, having the coverage required herein, in which event the Developer shall deposit or shall cause the Rental Housing Owner or the Senior Housing Owner, as the case may be, to deposit with the Authority a certificate or certificates of the respective insurers as to the amount of coverage in force upon the Minimum Improvements. (d) The Developer agrees to notify, or cause the Rental Housing Owner or the Senior Housing Owner, as the case may be, to notify the Authority immediately in the case of damage exceeding $100,000 in amount to, or destruction of, the Minimum Improvements, or any portion thereof resulting from fire or other casualty. In such event the Developer will forthwith repair, reconstruct, and restore, or cause the Rental Housing Owner or the Senior Housing Owner to 15 DJG-178166v5 CL205-11 Ken Anders°n_ fifth draft real estate equities Preliminary deve!opment c°ntract.dOc repair, reconstruct, and restore, the Minimum Improvements to substantially the same or an improved condition or value as it existed prior to the event causing such damage and, to the extent necessary to accomplish such repair, reconstruction, and restoration, the Developer will apply, or will cause the Rental Housing Owner or the Senior Housing Owner, as the case may be, to apply, the net proceeds of any insurance relating to such damage received to the payment or reimbursement of the costs thereof. The Developer shall complete, or cause the Rental Housing Owner or the Senior Housing Owner, to complete, the repair, reconstruction, and restoration of the Minimum Improvements, whether or not the net proceeds of insurance received by any such party for such purposes are sufficient to pay for the same. Any net proceeds remaining after completion of such repairs, construction and restoration shall be the property of primary insured party. (e) The parties hereto agree that all of the provisions set forth in this Article V shall terminate upon the Maturity Date. 16 DJG- 178166v5 CL205-11 ARTICLE VI Use of Tax Increment Section 6.1. Use of Tax Increments. Except for their obligations under this Agreement, the Senior Housing Note, and the Rental Housing Note regarding Tax Increment, the Authority and the City shall be free to use any Tax Increment received from the Property for any purpose for which such Tax Increment may lawfully be used, and neither the Authority nor the City shall have any obligation to the Developer, the Rental Housing Owner or the Senior Housing Owner with respect to the use of such Tax Increment. 17 DJG- 178166v5 CL205-11 I Ken Andeis°n' fifth draft real estate equ!ties preiiminary deVelop~en[ C~ti~[~ ARTICLE VII Financin~ Section 7.1. Mortgage Financing. (a) Before commencement of construction of the Minimum Improvements, the Developer shall submit, or shall cause the Rental Housing Owner or the Senior Housing Owner to submit, to the City and the Authority evidence of one or more commitments or definitive agreements providing for mortgage financing which, together with committed equity for such construction, is sufficient for the acquisition of the Property, platting, construction of the public improvements in connection with the plat, and undertaking the Minimum Improvements. Such commitments may be submitted as short term financing, long term mortgage financing, a bridge loan with a long term take-out financing commitment, or any combination of the foregoing. Such commitment or commitments for short term or long term mortgage financing shall be subject only to such conditions as are normal and customary in the mortgage banking industry. (b) If the City and the Authority find that the mortgage financing is sufficiently committed and adequate in amount to provide for the construction of the Minimum Improvements then the City and the Authority shall notify the Developer in writing of its approval. Such approval shall not be unreasonably withheld and either approval or rejection shall be given within thirty (30) days from the date when the City and the Authority are provided the evidence of mortgage financing. A failure by the City or the Authority to respond to such evidence of mortgage financing shall be deemed to constitute an approval hereunder. If the City or the Authority reject the evidence of mortgage financing as inadequate, they shall do so in writing specifying the basis for the rejection. In any event the Developer shall submit adequate evidence of mortgage financing within thirty (30) days after such rejection. Section 7.2. Option to Cure Default on Mortgage. In the event that there occurs a default under any Mortgage authorized pursuant to this Agreement, the Developer shall cause the City and the Authority to receive copies of any notice of default received by the Developer from the holder of such Mortgage. Thereafter, the City and the Authority shall have the right, but not the obligation, to cure any such default on behalf of the Developer within such cure periods as are available to the Developer or the Rental Housing Owner or the Senior Housing Owner, as the case may be, under the Mortgage documents. 18 DJG- 178166v5 CL205-11 ARTICLE VIII Prohibitions Against Assignment and Transfer; Indemnification Section 8.1. Representation as to Development. The Developer represents and agrees that its undertakings pursuant to this Agreement are for the purpose of development of the Property. Section 8.2. Release and Indemnification Covenants. (a) Except for any willful misrepresentation or any willful or wanton misconduct or negligence of the following named parties, the Developer agrees, and shall cause the Rental Housing Owner and the Senior Housing Owner to agree, to protect and defend the City, the Authority, and their governing body members, officers, agents, servants, and employees, now or forever, and further agrees to hold the aforesaid harmless from any claim, demand, suit, action or other proceeding whatsoever by any person or entity whatsoever arising or purportedly arising from this Agreement, or the transactions contemplated hereby or the acquisition, construction, installation, ownership, and operation of the Minimum Improvements. (b) Except for any negligent act of the following named parties, the City, the Authority, and their governing body members, officers, agents, servants, and employees shall not be liable for any damage or injury to the persons or property of the Developer, the Rental Housing Owner or the Senior Housing Owner or their partners, officers, agents, servants, employees, or to any other person who may be about the Property or Minimum Improvements. (c) All covenants, stipulations, promises, agreements, and obligations of the City or the Authority contained herein shall be deemed to be the covenants, stipulations, promises, agreements, and obligations of the City and the Authority, respectively, and not of any governing body member, officer, agent, servant, or employee of the City or the Authority in the individual capacity thereof. (d) The provisions of this Section 8.2 shall survive termination of this Agreement. Section 8.3. No Assignment by Developer. The Developer acknowledges and agrees that the City and the Authority are entering into this Agreement in express reliance on the identity of the Developer and that neither the Developer's rights nor its obligations pursuant to this Agreement may be assigned, sold, hypothecated, pledged, or otherwise transferred to any party other than the Rental Housing Owner or the Senior Housing Owner without the express written consent of both the City and the Authority. 19 DJG- 178166v5 CL205 - 11 Ken Anderson; f fth draft rea estate equ ties Preim nary development cont[ac! do~, pag~ ~ I ARTICLE IX Events of Default Section 9.1. Events of Default Defined. The following shall be "Events of Default" under this Agreement and the term "Event of Default" shall mean, whenever it is used in this Agreement (unless the context otherwise provides), any failure by any party to observe or perform any other covenant, condition, obligation or agreement on its part to be observed or performed hereunder, or under the Planned Unit Development Agreement or the Bond Documents, provided that when such failure or breach does not involve the payment of money to the City or the Authority such failure or breach shall not constitute an "Event of Default" if corrective action is instituted by or on behalf of such party within such thirty (30) day period and diligently pursued until the earlier of the date such default is corrected or one hundred eighty (180) days has elapsed. Nothing in this Article IX shall limit the City's rights to exercise any remedy to which it is entitled under any other provision of this Agreement, the Bond Documents, or the Planned Unit Development Agreement. Section 9.2. Remedies on Default. Whenever any Event of Default referred to in Section 9.1 of this Agreement occurs, the non-defaulting party may: (a) suspend its performance under this Agreement until it receives assurances that the defaulting party will cure its default and continue its performance under this Agreement; (b) cancel and rescind or terminate this Agreement; and (c) take whatever other action, including legal, equitable, or administrative action, which may appear necessary or desirable to collect any payments due under this Agreement, or to enforce performance and observance of any obligation, agreement, or covenant under this Agreement. Section 9.3. No Remedy Exclusive. No remedy herein conferred upon or reserved to the any party in this Agreement is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. In order to entitle the City to exercise any remedy reserved to it, it shall not be necessary to give notice, other than such notice as may be required in this Article IX. Section 9.4. No Additional Waiver Implied by One Waiver. In the event any agreement contained in this Agreement should be breached by any party and thereafter waived by another party, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other concurrent, previous or subsequent breach hereunder. 20 DJG- 178166v5 CL205-11 ARTICLE X Additional Provisions Section 10.1. Conflict of Interests; Authority and Representatives Not Individually Liable. The City, the Authority, and the Developer, to the best of their respective knowledge, represent and agree that no member, official, or employee of the City or the Authority shall have any personal interest, direct or indirect, in this Agreement, nor shall any such member, official, or employee participate in any decision relating to this Agreement which affects his or her personal interests or the interests of any corporation, partnership, or association in which he or she is directly or indirectly interested. No member, official, or employee of the City or the Authority shall be personally liable to the Developer, the Rental Housing Owner or the Senior Housing Owner, or any successor in interest, in the event of any default or breach by the City or the Authority, or for any amount which may become due to the Developer, the Rental Housing Owner or the Senior Housing Owner or successor or on any obligations under the terms of this Agreement. Section 10.2. Equal Employment Opportunity. The Developer, for itself and its successors and assigns, agrees that during the construction of the Minimum Improvements provided for in this Agreement it shall comply with all applicable federal, State, and local equal employment and non-discrimination laws and regulations. Section 10.3. Restrictions on Use. The Developer agrees that prior to the Maturity Date, it, the Rental Housing Owner or the Senior Housing Owner, and their successors and assigns: (a) shall use the Property solely for the purpose of constructing and operating housing facilities pursuant to the terms of this Agreement; (b) shall not discriminate upon the basis of race, color, creed, sex, national origin, or any other classification prohibited by law in the sale, lease, or rental, or in the use or occupancy of the Property or any improvements erected or to be erected thereon, or any part thereof; and (c) shall otherwise comply with the restrictions on use set forth in this Agreement. Section 10.4. Provisions Not Merged With Deed. None of the provisions of this Agreement are intended to or shall be merged by reason of any deed transferring any interest in the Property and any such deed shall not be deemed to affect or impair the provisions and covenants of this Agreement. Section 10.5. Titles of Articles and Sections. Any titles of the several parts, Articles, and Sections of this Agreement are inserted for convenience of reference only and shall be disregarded in construing or interpreting any of its provisions. Section 10.6. Notices and Demands. Except as otherwise expressly provided in this Agreement, a notice, demand, or other communication under this Agreement by either party to the other shall be sufficiently given or delivered if it is dispatched by registered or certified mail, postage prepaid, return receipt requested, or delivered personally; and 21 DJG-178166v5 CL205-11 (a) in the case of the City, is addressed to or delivered personally to the City at 590 40th Avenue N.E., Columbia Heights, MN, Attn: City Administrator; (b) in the case of the Authority, is addressed to or delivered personally to the Authority at 590 40th Avenue N.E., Columbia Heights, MN, Attn: Executive Director; and (c) in the case of the Developer, is addressed to or delivered and personally to Columbia Heights Transition Block LLC, 325 Cedar Street, Suite 400, St. Paul, MN 55101; or at such other address with respect to either such party as that party may, from time to time, designate in writing and forward to the other as provided in this Section 10.6. Section 10.7. Counterparts; Modifications. This Agreement may be executed in any number of counterparts, each of which shall constitute one and the same instrument. This Agreement may not be modified, waived, or otherwise amended except by a writing signed by the Developer, the City, and the Authority. Section 10.8. Attorney Fees. Whenever any Event of Default occurs and if the City or the Authority shall employ attorneys or incur other expenses for the collection of payments due or to become due, or for the enforcement of performance or observance of any obligation or agreement on the part of the Developer under this Agreement, the Developer agrees that it shall, within ten (10) days of written demand by the City and the Authority, pay to the City and the Authority the reasonable fees of such attorneys and such other expenses so incurred by the City and the Authority. Section 10.9. Continuation of Certain Obligations. Nothing in this Agreement shall act to modify, amend, or otherwise relieve the Developer of its obligations and undertakings as stated in the Bond Documents, the Planned Unit Development Agreement, or any other agreement to which the City or the Authority is a party. Section 10.10. Governing Law; Venue. This Agreement shall be construed in accordance with the laws of the State of Minnesota. Any dispute arising from this Agreement shall be heard in the state or federal courts of Minnesota, and all parties waive any objection to the jurisdiction thereof, whether based on convenience or otherwise. Section 10.11. Termination of Agreement. Upon termination of this Agreement, no party hereto shall have any obligation or rights hereunder and this Agreement shall be of no further force and effect, except as such provisions herein are expressly stated to survive such termination. 22 DJG-178166v5 CL205-11 IN WITNESS WHEREOF, the City, the Authority and the Developer have caused this Agreement to be duly executed in their name and on their behalf, with actual execution on the dates set forth below. CITY OF COLUMBIA HEIGHTS By Its Mayor By Its City Administrator DATE: ., 2000 23 DJG-178166v5 CL205-11 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY By Its President By Its Executive Director DATE: .,2000 24 DJG-178166v5 CL205-11 Ken AnderSOn :fifth draft real estate equities preliminary de~elgpment C°nt[act'd°c COLUMBIA HEIGHTS TRANSITION BLOCK LLC By Its DATE: ,2000 25 DJG- 178166v5 CL205-11 EXHIBIT A INSERT CONCEPT PLAN A-26 DJG~ 178166v5 CL205-11 COLUMBIA #£1G#T$ PUBLIC LIBRARY BOARD OI TRU$?££$ MINUTES September 5, 2000 The meeting was called to order by Chair, Barbara Miller at 7:05 p.m. Those present were: Patricia Sowada, Barbara Miller. Nancy Hoium, Catherine Vesley, Richard Hubbard. John Hunter, and Becky Loader. It was moved, seconded, and passed to approve the minutes of the August 1st, 2000, meeting as mailed. The August 14, 2000 II, bill list was reviewed. It was moved, seconded, and passed that they be paid. The August 28, 2000, bill list was reviewed. It was moved, seconded, and passed that they be paid. The September 1 I, 2000, bill list was reviewed. It was moved, seconded, and passed that they also be paid. The accounting was reviewed. The CHASE bill list and accounting was reviewed by the Board. Old Business: 1. Flowers were sent to the Rum River grand opening celebration by the Board. New video shelves have been installed. The shelves are very attractive and make retrieval of videos much simpler, as they can now be kept in numerical order. A substantial savings was obtained by factory direct ordering. The Internet browsers have been installed. Statistics are being kept for inclusion in the annual report to the State. There have been no incidents to this point. Page schedule update was presented. We are currently at half staff, with only 2 pages per session working. Alternative scheduling, recruitment advertising, and work shifts are being explored. A budget update was presented. John Hunter reported that the proposed levy for Columbia Heights will be certified by the Council at the next City Council meeting. The Council is proposing a 10% increase, this can be lowered after certification. John reported that among other communities the increases range from 29% at the high end down to 4% to 5%. At this time the proposed 2001 budget for the library has not been reduced. The Library Board will meet with the City Council on October 3rd, at 7:00 p.m. to discuss the 2001 proposed budget. A brief Board meeting is scheduled for that same evening at 6:30 p.m. Reports on summer program statistics from Marsha Tubbs were reviewed by the Board. All programs were well attended and very successful. Pictures from the Harry Potter party were shared with the Board. Libra reading club and circulation statistics were discussed. 7. A report on the status of the Foundation Fund was tabled for a future Board meeting. 8. Negatives from the parade were made available to the Board for reprints. New Business: The November Board Meeting date has to be changed due to National Elections. The November meeting will be on Wednesday, November 1, 2000 at 7:00 p.m. The Columbia Heights Public Library Holiday and Closed schedule for 2001 was reviewed. It was moved, seconded, and passed to approve the schedule as presented. New drafts and interpretations from ALA were discussed. These documents are a part of our Policy Manual, they will be monitored and discussed again. The Board discussed what measures could be taken by the library to accommodate the patrons we have whose primary language is not English. Among the possibilities were foreign language newspapers, magazines, or videos. Research would have to be done to determine what language you might need. 4. Crossover statistics for June were reviewed. 5. Crossover statistics for July were reviewed. Items for the City Auction from the library were shared with the Board. The City Auction will be Saturday, September 9. 7. Graffiti in the men's restroom was reported by a patron. A police report was filed and photographs were taken. Becky participated in the Commuter Train demo on August 10. Participants rode from Fridley to downtown Minneapolis and back. This is proposed commuter transportation that would run from St. Cloud to the Mall of America. It is European/East Coast type of transportation. Open houses were attended by Library staff at the three public elementary schools on August 31. The response to the library was overwhelming and very positive. 10. Article from the Focus newspaper from the week of 8/31/00 by Robert Buboltz was shared with the Board. 11. The Board requested an update from John Hunter concerning what the City Council has been doing. The Council is exploring ways to entice new businesses into locating here, and "spiffing up" some the buildings in the City. The Gateway project is progressing. The marble to complete the structure should be coming in soon. There being no further business the meeting was adjourned at 8:35 p.m. Respectfully submitted, Jeanine M. Schmidt Secretary to the Library Board of Trustees. The City of Columbia Heights does not discriminate on the basis of disability in the admission or access to, or treatment or employment in, its services, programs, or activities. Upon request, accommodation will be provided to allow individuals with disabilities to participate in all City of Columbia Heights' services, programs, and activities. 2 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) SPECIAL MEETING MINUTES OF AUGUST 28, 2000 CALL TO ORDER. The Special Meeting of the Columbia Heights Economic Development Authority (EDA) was called to order by President Ruettimann at 6:30 p.m., Monday, August 28, 2000, in the Conference Room 1, Columbia Heights City Hall, 590 40* Avenue N.E., Columbia Heights, Minnesota. ROLL CALL. Commission Members Present: Commission Members Absent: Staff Present: Robert Ruettimann, Patricia Jindra, Marlaine Szurek, Don Jolly, Gary L. Peterson, Julienne Wyckoff, and John Hunter Walt Fehst, Executive Director Kenneth Anderson, Deputy Executive Director Randy Schumacher, Community Development Assistant PLEDGE OF ALLEGIANCE. APPROVE UNIT RELOCATION FEE OF $125 FOR PERSONS ON EXISTING WAITING LIST FOR INTERNAL MOVES AT PARKVIEW VILLA. President Ruettimann introduced this agenda item and indicated that the EDA Board had taken action at its meeting in July to increase the fee charges to Parkview Villa North and South residents wishing to relocate from one unit in the building to another unit. The previous relocation fee was set at $125. This fee was increased to $400 to account for the expenses incurred to paint the vacated unit, clean carpets, and perform other minor repairs, maintenance and clean up. The increased fee was to be effective September 1, 2000. President Ruettimarm stated that at the time of approval on July 18, 2000 information was not presented to the Board stating that there were approximately fifteen persons on the waiting list. As a result, it was his desire to amend the policy to "grandfather" those persons on the waiting_list for internal moves at the former fee of $125. Therefore, fifteen (15) members on the current internal move waiting list would not be subject to the increased fee of $400, rather they would be able to move at some future time after September 1, 2000 at the rate of $125. The impact of this change in policy will mean that the $275 in lost revenue per unit for the fifteen members on the existing relocation list may result in less income in the total amount of $4,125. MOTION by Don Jolly, seconded by Marlaine Szurek, to amend the internal relocation fee to allow all fifteen (15) persons on the attached relocation list dated August 23, 2000, be subject to the relocation fee of $125. All Ayes. MOTION CARRIED. Discussion followed on how the waiting list was administered according to the date persons signed. The Board requested that a written procedure on how the units are offered to the residents be provided to the Board members. They also requested that the residents be notified in writing of their current place on the relocation list. ADOPT PRELIMINARY 2001 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY BUDGET AND PROPOSED 2001 LEVY. President Ruettimarm introduced the discussion on the Preliminary 2001 EDA Budget and Proposed 2001 Levy. President Ruettimann introduced this item and indicated that staffhad prepared a Preliminary Proposed Budget for fiscal year 2001 and drafted Resolution 2000-11 which adopts the Preliminary Budget and recommendation setting the local levy. President Ruettimann indicated that it was only necessary for the EDA to approve the levy and suggested that it be set at the maximum limit allowed by State Statute. Anderson indicated that staff recommended the levy be set at $119,295 based upon the formula for calculating the maximum EDA levy that would not be subject to a reverse referendum. Anderson then corrected himself and indicated that the recommended levy of $119,295 is the same levy amount adopted for taxes payable in 2000. The Statute allowed a maximum levy to be $120,020.96. That figure was arrived at by taking the statutory levy maximum of .01813% of the taxable market value in the City. Discussion followed on the need to set the levy as an amount, or in the alternative, to pass a motion to set the maximum amount allowed in the event there is a change. William Elrite, Assistant Treasurer, indicated the levy Economic Development Authority Minutes August 28, 2000 Page 2 needed to be established as a dollar mount and that the City Council would be forwarding a recommendation on the maximum levy to Anoka County by September 15, 2000. President Ruetfimann determined that it was only necessary to set the maximum EDA local levy and said that the Budget can be reviewed in detail later. MOTION by Julienne Wyckoff, seconded by Marlaine Szurek, to adopt EDA Resolution 2000-11, being a Resolution of the Columbia Heights EDA recommending setting the EDA local levy of $119,295. All Ayes. MOTION CARRIED. There being no further business, President Ruettimarm adjourned the meeting at 6:45 p.m. /Assistant Secretary/Deputy Executive Director Attachment H:kEDAminutes\Special Mtg 8-28-00