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HomeMy WebLinkAboutJuly 23, 2007 RegularCITY OF COLUMBIA HEIGHTS 590 40`h Avenue NE, Columbia Heights, VIN 55421-3878 (763)706-3600 TDD (763) 706-3692 io.. v....vebs~.c ... .,1., ,.t~: r., ,.t,: Mai•nr Gary L. Peterson Councilmembers Rnhart.A. fVilliam.s Bruce Naxorocki Tammera Diehm Bruce Kelrenberg City Manaeer 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, July 23, 2007 in the City Council Chambers, City Hall, 590 40th Avenue N.E., Columbia Heights, MN. __ The City of Columbia Heights does rot discriminate on the basis of disability i?i 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 763-706-3611, to make arrangements. (TDD/706-3692 for deaf or hearing impaired only) I. CALL TO ORDER/ROLL CALL/INVOCATION Invocation by Pastor Dan Thompson, Columbia Heights Assembly of God 2. PLEDGE OF ALLEGIANCE 3. ADDITIONS/DELETIONS TO MEETING AGENDA (The Council, upon majority vote of its members, may make additions and deletions to the agenda. These maybe items brought to the attention of the Council under the Citizen Forum or items submitted after the agenda preparation deadline.) 4. PROCLAMATIONS, PRESENTATION, RECOGNITION, GUESTS A. Acknowledge Militar~Duty Ed Raati and Jesse Davies 5. CONSENT AGENDA (These items are considered to be routine by the City Council and will be enacted as part of the Consent Agenda by one motion. Items removed fram consent agenda approval will be taken up as the next order of business.) A. Approve City Council meetingminutes for the July 9 2007 regular City Council meeting. MOTION: Move to approve the minutes of the July 9, 2007 regular City Council meeting as presented. Pg B. Approve the minutes of the July 16 2007 City Council a11eY lightingpublie improvement P3 0 meeting. MOTION: Move to approve the minutes of the July 16, 2007 City Council alley lighting public improvement meeting as presented. C. Authorization to seek bids for 2007 Sanitar~Sewer Pipe Lining Project P34 MOTION: Move to authorize staff to seek bids for the 2007 Sanitary Sewer Pipe Lining Project for the pipe segments identified herein. City Council Agenda Monday, July 23, 2007 Page 2 of 7 D. Accept bids on three~3) generators and award the contract to Cummins NPower p36 MOTION: Move to accept bids and award the contract for the purchase of generators, including inctallatinn fnr Watar Pttm» Ctatinn 7 Mttniri»al ,1P,rVi[;P, (~P.T1tE;1' atl(1 Mlli-7vT1 Hall t0 CUmmmS NPower of White Bear Lake, MN, in the amount of $163,390 and authorize the Mayor and City Manager to enter into a contract for the same; and to appropriate $56,900 in the Capital Improvements General Government Buildings Fund for the Murzyn Hall generator. E. Approve Professional Services Agreement with Bonestroo for the 2008 Comprehensive Plan p37 update. MOTION: Move to approve the professional services agreement with Bonestroo far the City of Columbia Heights' 2008 Comprehensive Plan update. F. Ap-proval of the attached list of rental housing license applications psi MOTION: Move to approve the items Listed for rental housing license applications for July 23, 2007. G. Approve Business License Applications pss MOTION: Move to approve the items on the business license agenda for July 23, 2007 as presented. H. Approve Payment of bills p57 MOTION: Move to approve payment of the bills out of the proper funds as listed in the attached check register covering Check Number 122156 through Check Number 122349 in the amount of $3,114,899.32. MOTION: Move to approve the Consent Agenda items. 6. ITEMS FOR CONSIDERATION A. Other Ordinances and Resolutions 1. Adopt Resolution 2007-121 being a Resolution approving an Amended and Restated p66 Contract for Private Redevelopment MOTION: Move to waive the reading of Resolution 2007-121, there being an ample amount of copies available to the public. MOTION: Move to Adopt Resolution 2007-121, a Resolution approving an amended and restated contract for private redevelopment between the Columbia Heights Economic Development Authority, The City of Columbia Heights and Huset Park Development Corporation; and furthermore, to authorize the Mayor and City Manager to enter into an agreement for the same. 2. Adopt Resolution 2007-122 being_a Resolution Approving Authority°s Issuance of Revenue plsa Bonds MOTION: Move to waive the reading of Resolution 2007-122, there being an ample amount of copies available to the public. MOTION: Move to Adopt Resolution 2007-122, a Resolution consenting to and approving the issuance by the Columbia Heights Econorr~ic Development Authority, Minnesota of Tax Increment Revenue Bonds to f nonce certain public redevelopment costs of the Huset Park area Tax Increment Financing District within the downtown CBD Redevelopment Project under Minnesota Statutes, Sections 469.174-469.1799, as amended; and furthermore to authorize the City Council Agenda Monday, July 23, 2007 Page 3 of 7 Mayor and City Manager to enter into an agreement for the same. Z '~„(i Raorl;,,rr of (lrrhr.anra l~Tn 1 477 haina an (lrr~inanra nrnvirlina fnr the iccnance and tale p158 J. L11U 1~VtA11111~ +t ~+ -- ~ ~~ of approximately $1 000 000 General Obligation Improvement and Street Rehabilitation Bonds, Series 2007A. MOTION: Move to waive reading of the Ordinance No. 1527 there being ample copies available to the public. MOTION: Move to adopt Ordinance No. 1527, being an Ordinance providing for the issuance and sale of approximately $1,000,000 General Obligation Improvement and Street Rehabilitation Bonds, Series 2007A. 4. Adopt Resolution No 2007-132 being a Resolution determining the necessity to enter into a p174 lease purchase agreement with the Columbia Heights Economic Development Authority and requesting the issuance of public facility lease revenue bonds thereof (Municipal Liquor Stores ro' ect . MOTION: Move to waive reading of the Resolution No. 2007-132, there being ample copies available to the public. MOTION: Move to adopt Resolution No. 2007-132, being a Resolution determining the necessity to enter into a lease purchase agreement with the Columbia Heights Economic Development Authority and requesting the issuance of public facility lease revenue bonds thereof (Municipal Liquor Stores project). 5. First reading=Adopt Ordinance #1528 being an Ordinance adopting the MN State Building p187 Code MOTION: Move to waive the reading of Ordinance #1528, there being ample copies available to the public. MOTION: Move to establish the second reading of Ordinance #1528, being an Ordinance adopting the MN State Building Code, for Monday, August 13, in the City Council Chambers, at approximately 7:00 p.m. 6. Second Reading_Ordinance 1526 being_an ordinance adopting the permit fee schedule for p19o temporary signs. MOTION: Move to waive the reading of Ordinance No. 1526, being ample copies available to the public. MOTION: Move to adopt Ordinance No. 1526, being an ordinance adopting the permit fee schedule for temporary signs. B. Other Business Public Safety facility Update 7. PUBLIC EA NGS A. Adopt Resolution No 2007-173 being a resolution for rental housing license revocation at 1124- plat 1126 45th Avenue N.E. MOTION: Move to class the public hearing and to waive the reading of Resolution No.2007- City Council Agenda Monday, July 23, 2007 Page 4 of 7 123, there being ample copies available to the public. M(lTT(1T~T• Mnva to a~nr,t Racnlntinn l~Tn ~nm_~7~ Recnhitinn nfthe City (~nuncil of the City ~.." ~ ~.,~.. ~.~.,.., ~., ~~.,r~ ,~,,.,,,......... ~ ..,. _., ., , --..~ ---...,__.---- -- ---- --~ - - -- of Columbia Heights approving revocation pursuant to City Code, Chapter SA, Article IV, Section SA.408(A) of the rental license held by Delanza Elliot regarding rental property at 1124- 1126 45th Avenue N.E. B. Adopt Resolution No 2007-115 being_a Resolution for abatement of violations at 4916 6th pz9s Street N.E. MOTION: Move to close the public hearing and to waive the reading of Resolution No. 2007- 115, there being ample copies available to the public. MOTION: Move to adopt Resolution No. 2007-115, a resolution of the City Council of the City of Columbia Heights declaring the property at 4916 6th Street N.E. a nuisance and approving the abatement of violations from the property pursuant to City Code section 8.206. C. Adopt Resolution No 2007-116 being a Resolution for abatement of violations at 1131 37th P'-98 Avenue N.E MOTION: Move to close the public hearing and to waive the reading of Resolution No. 2007- 116, there being ample copies available to the public. MOTION: Move to adopt Resolution No. 2007-116, a resolution of the City Council of the City of Columbia Heights declaring the property at l 131 37th Avenue N.E. a nuisance and approving the abatement of violations from the property pursuant to City Code section 8.206. D. Adopt Resolution No 2007-117 being a Resolution for abatement of violations at 201. 40th pzol Avenue N.E. MOTION: Move to close the public hearing and to waive the reading of Resolution No. 2007- 117, there being ample copies available to the public. MOTION: Move to adopt Resolution No. 2007-117, a resolution of the City Council of the City of Columbia Heights declaring the property at 201. 40th Avenue N.E. a nuisance and approving the abatement of violations from the property pursuant to City Code section 8.206. E. Adopt Resolution No X007-118 being a Resolution for abatement of violations at 3723 Johnson pzo4 Street N.E. MOTION: Move to close the public hearing and to waive the reading of Resolution No. 2007- 1 I8, there being ample copies available to the public. MOTION: Move to adopt Resolution No. 2007-118, a resolution of the City Council of the City of Columbia Heights declaring the property at 3723 Johnson Street N.E. a nuisance and approving the abatement of violations from the property pursuant to City Code section 8.206. F. Adopt Resolution No 2007-119 being a Resolution for abatement of violations at 3828 Jackson pzo~ Street N.E. MOTION: Move to close the public hearing and to waive the reading of Resolution No. 2007- 119, there being ample copies available to the public. MOTION: Move to adopt Resolution No. 2007-119, a resolution of the City Council of the City of Columbia Heights declaring the property at 3828 Jackson Street N.E. a nuisance and City Council Agenda Monday, July 23, 2007 Page 5 of 7 approving the abatement of violations from the property pursuant to City Cade section 8.206. /~ Arln.zt T?u>anl»tinn TtTn 7(1M_17h hA;,,R o Racnlntinri fnr a{~atArnant nfvinlatinr~e at dS~7_dSZd. .-,~~ n V. L IUV~I~ 1\V JVt UIf VLl L\V. LVV / 1LV VVlll~, k t\VJVl~.lli V11 1 jl c.1V Fillmore Street N.E. MOTION: Move to close the public hearing and to waive the reading of Resolution No. 2007- 120, there being ample copies available to the public. MOTION: Move to adopt Resolution No. 2007-120, a resolution of the City Council of the City of Columbia Heights declaring the property at 4532-4534 Fillmore Street N.E. a nuisance and approving the abatement of violations from the property pursuant to City Code section $.206. H. Adapt Resolution No. 2007-124 'oeing, a resolution far rerital housing license revocation at 4514- ~2z3 4516 Fillmore Street N.E. MOTION: Move to close the public hearing and to waive the reading of Resolution No. 2007- 124, there being ample copies available to the public. MOTION: Move to adopt Resolution No. 2007-124, Resolution of the City Council of the City of Columbia Heights approving revocation pursuant to City Code, Chapter SA, Article IV, Section 5A.408(A) of the rental license held by Ed Fitzpatrick regarding rental property at 4514- 4516Fillmore Street N.E. I. Adopt Resolution No. 2007-125 being a resolution for rental housing license revocation at 4525 pai6 Chatham Road N.E. MOTION: Move to close the public hearing and to waive the reading of Resolution No.2007- 125, there being ample copies available to the public. MOTION: Move to adopt Resolution No. 2007-125, Resolution of the City Council of the City of Columbia Heights approving revocation pursuant to City Code, Chapter SA, Article IV, Section SA.408(A) of the rental license held by Enes Hegic regarding rental property at 4525 Chatham Road N.E. J. Adopt Resolution No. 2007-126 being a resolution for rental. housing license revocation. at 4721. pzl9 University Avenue N.E. MOTION: Move to close the public hearing and to waive the reading of Resolution No. 2007- 126, there being ample copies available tc the public. MOTION: Move to adopt Resolution No. 2007-126, Resolution of the City Council of the City of Columbia Heights approving revocation pursuant to City Code, Chapter 5A, Article IV, Section SA.408(A) of the rental license held by Rochelle McCain regarding rental property at 4721 University Avenue N.E. K. Adopt Resolution No. 2007-127 being a resolution for rental housing license revocation at 4226 paaa 4th Street N.E. MOTION: Move to close the public hearing and to waive the reading of Resolution No. 2007- 127, there being ample copies available to the public. MOTION: Move to adopt Resolution No. 2007-127, Resolution of the City Council of the City of Columbia Heights approving revocation pursuant to City Code, Chapter SA, Article IV, Section SA.408(A) of the rental License held by Michelle Parson regarding rental property at 4226 4th Street N.E. City Council Agenda Monday, July 23, 2007 Page 6 of 7 L. Adopt Resolution No. 2007-128 being a resoluton_f_or rental housing license revocation at 4550 Paas Madison Street N.E. E d(lTTlITT. Rif..<>.~ +.< ,.t,~r,~ +ho ,~.,.1-.lip. 1~o.<rirsn or•~t to <a~oivo t),a YP•a i'l1n rT of Racnh~tinn hTn 7nn7_ 1V1V L1V1V. 1V1VV V tV l+tV.~~ LLl~. YuV11t. ti~ut ul~ uuu ~v vv uivv uiv ivuuu.b v. ...v.~v....uv... ~.... ... .. ... 128, there being ample copies available to the public. MOTION: Move to adopt Resolution No. 2007-128, Resolution of the City Council of the City of Columbia Heights approving revocation pursuant to City Code, Chapter SA, Article IV, Section SA.408(A) of the rental license held by Catalina Peralta regarding rental property at 4550 Madison Street N.E. M. Adopt Resolution No 2007-129 being a resolution for rental housing license revocation at 1807- Pzas i 809 41st Avenue N.E. MOTION: Move to close the public hearing and to waive the reading of Resolution No. 2007- 129, there being ample copies available to the public. MOTION: Move to adopt Resolution No. 2007-129, Resolution of the City Council of the City of Columbia Heights approving revocation pursuant to City Code, Chapter SA, Article IV, Section SA.408(A) of the rental license held by Steven Caputo regarding rental property at 1807- 1809 41st Avenue N.E. N. Adopt Resolution No 2007-130 beinl~ a resolution for rental housing license revocation at 3953 Pz3 i Jackson Street N.E. MOTION: Move to close the public hearing and to waive the reading of Resolution No. 2007- 130, there being ample copies available to the public. MOTION: Move to adopt Resolution No. 2007-130, Resolution of the City Council of the City of Columbia Heights approving revocation pursuant to City Code, Chapter SA, Article IV, Section SA.408(A) of the rental license held by Joel Virtue regarding rental property at 3953 Jackson Street N.E. O. Adopt Resolution No 2007-131 being a resolution for rental housing license revocation at 4533 Pz34 Madasor. Street N.E. MOTION: Move to close the public hearing and to waive the reading of Resolution No. 2007- 131, there being ample copies available to the public. MOTION: Move to adopt Resolution No. 2007-131, Resolution of the City Council of the City of Columbia Heights approving revocation pursuant to City Code, Chapter SA, Article IV, Section SA.408(A) of the rental license held by Veronica Moroz regarding rental property at 4533 Madison Street N.E. 8. ADMINISTRATIVE REPORTS Report of the City Manager Report of the City Attorney 9. CITIZENS FORUM At this tithe, citizens have an opportunity to discuss with the Council items not on the regular agenda. Citizens are requested to limit their comments to five minutes. Anyone who would like to speak shall state his/her name and address for the record. 10. COUNCIL CO E City Council Agenda Monday, July 23, 2007 Page 7 of 7 11. ADJOURNMENT Walter R. Fehst, City Manager WF/pvm CITY OF COLUMBIA HEIGHTS OFFICIAL MINUTES OF THE CITY COUNCIL FOR THE MEETING OF JULY 4, 2007 CALL TO ORDER/APPOINTMENT OF SECRETARY PRO TEM/ROLL CALL/INVOCATION The meeting was called to order by Council President Tami Ericson-Diehm at 7:02 p.m. Motion by Councilmember Nawrocki, seconded by Councilmember Williams to appoint Carole Blowers as Secretary Pro Tem for this meeting. Motion passed unanimously. Roll Call: Present: Diehm, Kelzenberg, Nawrocki, Williams. Absent: Peterson. Council President Diehm will preside over tonight's meeting in the absence of Mayor Peterson. The invocation was provided by Bob Lyndes from Crestview. PLEDGE OF ALLEGIANCE -recited 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.) Council President noted that the revocation item regarding 950 39`'' Avenue, which was tabled at the June 25, 2007, meeting is now in compliance. Item 6L, under public hearings, adopting Resolution 2007-109 regarding 1625 Innsbruck Parkway N.E., will be pulled from the agenda. Council President Diehm requested that Item 6Q (first reading of Ordinance No. 1527) be moved up to the beginning of public hearing section of this agenda. Councilmember Nawrocki asked that discussion on pool safety, Alexandra House, and July work session items be added to the agenda. These items will be added under 7C. Motion by Councilmember Kelzenberg, seconded by Councilmember Nawrocki, to approve the additions/deletions to the agenda. Motion passed unanimously. PROCLAMATIONS, PRESENTATION, RECOGNITION, GUESTS A. Presentation -Anoka County Economic Development Authority County Commissioner Kordiak talked to the council about the county-wide EDA initiative project and the recommendations made to the County Board. After June 12th, EDA will give power to the Anoka County HRA. This will provide a bigger pool of resources to improve Anoka County's image and communication infrastructure. Karen Skepper, Anoka County Community Development Director, presented information to the City Council. She explained there was an exploratory eleven-member committee. Various elected officials from Anoka County cities served on the committee, as well as two county commissioners. Broad representation on the committee was sought. The committee met four times to study and make recommendations regarding the economic development services in the county. The committee's options were to either recommend no changes and remain an HRA, or to form an EDA. City Council Minutes July 4, ?007 Page 1 a822 Anoka County is growing and will. continue to grow. With 21 cities in the county, there is a gap in services. There are currently ten cities that have an EDA and eleven cities that do not (in Anoka County}. Some communities have resources to develop economically, and some do not. There are transportation, technology, funding, and limited staffing dedicated to economic development throughout the county. It would be a plus to expand the tax base and employment opportunities. Ms. Skepper stated that based on state statutes, there cannot be multiple levies. Based upon study and review by the committee, an Anoka County EDA was created with a regional focus. Each city will have the choice to opt into the county EDA program. Advantages for cities to opt into the county EDA program would be: an additional funding source, reduction of efforts (i.e., bringing hi speed Internet into our county-a1121 communities could work together to get it, instead of each community working on it separately), grant opportunities, and business venture capital options. Ms. Skepper stated she would have a sample resolution and fact sheet for cities soon. She stated a city could opt in any time within five years. Councilmember Nawrocki wondered if this would really reduce duplication of efforts. The City Manager, Walt Fehst, asked what would be the maximum rate if we opted into the county EDA program. He also asked what was the commitment from our HRA to spend the dollars in their city. Ms. Skepper stated the HRA levy rate is .1440% and the EDA levy rate is .1813%. Councilmember Nawrocki stated that looking back historically, the amount of funding given cities was based on a formula. Councilmember Williams stated the county has helped our city greatly with various funds. Council President Diehm thanked Commissioner Kordiak and Ms. Skepper for attending tonight's meeting and for the information. presented. CONSENT AGENDA (These items are 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 the next order of business.) Councilmember Nawrocki asked that items A and F be removed from the consent agenda. A. Approve City Council Meeting Minutes for the June 11, 2007 regular City Council meeting B. Accept Minutes of the Aril 19 2007, Charter Commission. meeting Move to accept the April 19, 2007, Charter Commission minutes. Nawr°ocki doted that in the April 19, 2007, Char~ter• Commission naina.~tes, the City Attorney stated that comrn~ission members coadd write articles in the newspaper as a citi~e~z, but cozald not ide~~tify themselves as a commissiofa~ mem~bef-. He foa;•nd that hard to believe, arzd wanted to know who or what states that. The City Attorney stated that it is case law. Nawrocki stated he would like snore irafornaatiora on that. C. Reissue rental license for the property located 3959-3961 Polk Street N.E. Move to issue arental-housing license to Walter Caughey to operate the rental property located at 3959-3961 Polk Street NE in that the provisions of the residential maintenance code have been complied. with. City Council Minutes July 9, ~QQ7 Page 2 0 22 D. Approve attached list of rental housing license applications Move to approve the items listed for rental housing license applications for July 9, 2007. E. Accept bids and award contract to Braun Intertec for construction and testing; services for Municipal Liquor Stores and 200'/ Street Rehabilitation Project Move to accept bids and award contract to Braun Intertec in the amount of $34,300 for construction and testing services for Municipal Liquor Store and 2007 Street Rehabilitation Project; and, furthermore, to authorize the Mayor and City Manager to enter into a contract for the same. F. Adopt Resolution 2007-98 being a resolution sporting application for 2008 bonding for pedestrian bride G. Approve landing of State Patrol helic^pter at Huset Park for Safetyamp on August 1 j, 2007 Move to approve the landing/take-off of a Minnesota State Patrol Helicopter during Safety Camp on August 15, 2007 between 2:00 p.m. and 3:00 p.m. at Huset Park. H. Approve business license a eg nda Move to approve the items on the business license agenda for July 9, 2007, as presented. I. Approve payment of bills Move to approve payment of the bills out of the proper funds as listed in the attached check register covering Check Number 121990 through Check Number 122155 in the amount of $2,154,786.26. MOTION by Councilmember Nawrocki, seconded by Councilmember Williams, to approve the Consent Agenda items, with the exception of items A and F. Motion passed unanimously. Discussion of items pulled from the consent agenda: City Council Minutes of June 11, 2007 Councilmember Nawrocki stated that the minutes should reflect that as a matter of record at the June 11, 2007, council meeting, the Mayor adjourned the meeting at the end without the opportunity for him to speak and. ask questions. Motion by Councilmember Kelzenberg, seconded by Councilmember Williams, to approve the minutes of June 11, 2007. Motion passed. Resolution 2007-98 supporting application for 2008 bonding for pedestrian bride RESOLUTION N0.2007-98 BEING A RESOLUTION REQUESTING CONSIDERATION AND SUPPORTING AN APPLICATION TO THE STATE OF MINNESOTA FOR 2008 STATE CAPITAL BONDING FOR THE REPLACEMENT OF THE TH 65 AND 49TH{ AVENUE PEDESTRIAN BRIDGE WHEREAS, the City of Columbia Heights desires to remove and reconstruct the pedestrian bridge over T.H. 65, at 49`h Avenue NE; WHEREAS, the improvements will benefit both the City of Columbia Heights, surrounding communities, Columbia Heights School District and the Minnesota Department of Transportation; and City Council Minutes July 4, ~4Q7 Pale 3 of ~2 WHEREAS, the City of Columbia Heights is committed to securing other federal, state, and local funding to provide full project funding in addition to 2008 State of Minnesota bond funds. NOW THEREFORE BE IT RESOLVED by the City Council of the City of Columbia Heights that the City shall be responsible for the preliminary engineering, project design, and permitting functions of said improvements; and BE IT FURTHER RESOLVED that the project costs of the improvements not funded by 2008 State of Minnesota bonding shall be funded by other Federal, State funding sources and the City of Columbia Heights. The City Manager stated this resolution is in support of the state capital bonding bridge project (Central and 49`h Avenue). For several years, we have been trying to get 50% of the costs by state capital bonding. We should apply for monies from the federal government as well. The project is going to take a collaboration of efforts from the state, federal, city, and school levels. The Minnesota Design Team made recommendations about these bridge improvements several years ago. Nawrocki questioned the need to replace the bridge. It's a state bridge, and they have not expressed concerns about it. Councilmember Williams expressed his support of this application. Council President Diehm stated we should seek funding from more sources. MOTION by Councilmember Williams, seconded by Councilmember Kelzenberg to waive the reading of Resolution 2007-98, there being ample copies available to the public. Motion passed unanimously. MOTION by Councilmember Williams, seconded by Councilmember Kelzenberg, to adapt Resolution 2007-98, being a resolution supporting application for 2008 bonding for pedestrian bridge. Roll call vote: Ayes: Kelzenberg, Williams, Diehm; Noyes: Nawrocki. Absent: Peterson. Motion passed. 6. PUBLIC HEARINGS First Reading of Ordinance No. 1527, an ordinance providing for the issuance and sale of approximately $1,000,000 General Obligation Improvement and Street Rehabilitation Bonds, Series 2007A ORDI*IAl`1CE N'O. I527 ORDINANCE PROVIDING FOR THE ISSUANCE AND SALE OF APPROXIMATELY ~I,000,000 GENERAL OBLIGATION IMPROVEMENT AND STREET REHABILITATION BONDS, SERIES 2007A THE CITY OF COLUMBIA HEIGHTS DOES ORDAIN: It is hereby determined that: (a) The City has duly ordered the assessable public improvements designated as the Street Rehabilitation Program 07-02 (the "Assessed. Improvements") pursuant to the provisions of Minnesota Statutes, Chapter 429 (the "Act"}. (b) The City further plans, to undertake future portions of the Street Rehabilitation Program designated as 08-02 and 09-02 ("Future Impr°ovements"}. City Council Minutes July 9, ~~37 Page 4 of 22 (c) It is necessary and expedient to the sound financial management of the affairs of the City to issue its General Obligation Improvement and Street Rehabilitation Bonds, Series 2007A (the "Bonds") in a principal. amount not to exceed $1,000,000, pursuant to the Act and the City Charter to provide financing for the Assessed Improvements and the Future Improvements. 2. Ehlers & Associates, as financial advisor to the City, is authorized to negotiate the sale of the Bonds in the maximum principal amount specified in Section 1(b), in accordance with terms of proposal approved by the City Finance Director. The City Council will meet on August 27, 2007 or such other date specified by the City Manager in accordance with the City Charter, to consider the sale of the Bonds and take any other appropriate action with respect to the Bonds. 3. This ordinance shall be in full force and effect from and after thirty (30) days after its passage. City Manager Fehst discussed the infrastructure fund encompassing general and liquor funds. He explained that the $1,000,000 is the amount calculated at this time, but it could be less. This item will be further discussed at the work session on July 16th; and the second. reading will be on July 23`a. Councilmember Nawrocki questioned the amount and commented on the general obligation bond rate and how much extra cost that will add to this bond sale. This item will be further discussed at the work session on July 16th. Also, the second reading will be on July 23`a MOTION by Councilmember Kelzenberg, seconded by Councilmember Williams, to waive the reading of the Ordinance No. 1527, thei°e being ample copies available to the public. Motion passed unanimously. MOTION by Councilmember Kelzenberg, seconded by Councilmember Williams, to schedule July 23, 2007, at approximately 7:00 p.m. in the City Council Chambers for the second reading of Ordinance No. 1527 being an ordinance providing for the issuance and sale of approximately $1,000,000 General Obligation Improvement and Street Rehabilitation Bonds, Series 2007A. Motion passed unanimously. First Reading of Ordinance 1526, being an ordinance adopting the permit fee schedule for temaorarv signs DRAFT ORDINANCE 1526 BEING AN ORDINANCE ADOPTING THE FERMIT FEE SCHEDULE FOR TEMPORARY SIGNS AND FORMALLY ESTABLISHING A REFUND POLICY Section L Permit Fees. The issuance of temporary sign permits and the collection of fees shall be as authorized by the Columbia Heights City Council. Therefore, fees for permits will be assessed in the amount of $20.00 per temporary sign permit. Section 2. Effective Date of Ordinance. This ordinance shall be in full force and. effect from and after thirty (30) days after its passage. The City Manager stated this ordinance covers the size, permit cost, and time frame for temporary signage. MOTION by Councilmember Williams, seconded by Councilmember Kelzenberg, to waive the reading of Ordinance No. 1526, being ample copies available to the public. Motion passed unanimously. City Council Minutes July 9, ~~7 Pace 5 0 2 MOTION by Councilmember Williams, seconded by Councilmember Kelzenberg, to set the second reading of Ordinance No. 1526 for Monday, July 23, 2007, at approximately 7:00 p.m. in the City Council Chambers. Motion passed unanimously. Adopt Resolution No 2007-99 bein>; a Resolution for Rental Housing License Revocation at 1026 40th Avenue N.1/. Council President Diehm opened the public hearing and asked if there was anyone in the audience who wished to speak regarding this property. A neighbor to the property at 1020 40th appeared at the hearing, and asked questions regarding the wall at 1026 40th Avenue N.E. Council President Diehm asked if there was anyone else present that wished to speak regarding this property. There being no one further, she asked for a motion to close the public hearing. RESOLUTION 2007-99 Resolution of the City Council for the City of Columbia Heights approving revocation pursuant to City Code, Chapter SA, Article N, Section SA.408(A) of that certain residential rental license held by Shahdi Hossein (Hereinafter "License Holder"). Whereas, license holder is the legal owner of the real property located at 1026 40`h Avenue N.E., Columbia Heights, Minnesota, Whereas, pursuant to City Code, Chapter SA, Article N, Section SA.40$(B), written notice setting forth the causes and reasons for the proposed Council action contained herein was given to the License Holder on June 1, 2007 of an public hearing to be held on 7uly 9, 2007. 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 i. That on March 5, 2007, inspectors for the City of Columbia Heights, inspected the property described above and noted one violation. A compliance letter listing the violations was mailed by regular mail to the owner at the address listed on the Rental Housing License Application. 2. That on June 1, 2007, inspectors for the City of Columbia Heights, reinspected the property and noted one violation remained uncorrected. A statement of cause was mailed via regular mail to the owner at the address listed on the rental housing license application. 3. That on 3uly 2, 2007, inspectors for the City of Coiunibia Heights, performed a final inspection at the property and noted one violation remained uncorrected. A statement of cause was mailed via regular mail to the owner at the address listed on the rental housing license application. 4. That based upon said records of the Enforcement Office, the following conditions and violations of the City's Residential Maintenance Code were found to exist, to-wit: a. Shall repair retaining wall that has fallen down in back 5. That all parties, including the License Holder and any occupants or tenants, have been given the appropriate notice of this hearing according to the provisions of the City Code, Chapter SA, Article III SA.306 and SA.303(A). ORDER OF COUNCYL 1. The rental license belonging to the License Holder described herein and identified by License number F8061 is hereby revoked. 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. Al] tenants shall remove themselves from the premises within 60 days from the first day of pasting of this Order revoking the license as held by License Holder. City Council Minutes July 9, ~~7 Pae~ 6 of _2 MOTION by Councilmember Nawrocki, seconded by Councilmember Williams, to close the public hearing and to waive the reading of Resolution No.2007-99, there being ample copies available to the public. Motion passed unanimously. MOTION by Councilmember Nawrocki, seconded by Councilmember Williams, to adopt Resolution No. 2007-99, Resolution of the City Council of the City of Columbia Heights approving revocation pursuant to City Code, Chapter SA, Article IV, Section SA.408(A) of the rental license held by Shahdi Hossein regarding rental property at 1026 40th Avenue N.E. Motion passed unanimously. Motion passed unanimously. Adopt Resolution No 2007-100 being a Resolution for Rental Housing License Revocation at 1336-1338 43-1/2 Avenue N.E. Council President Diehm opened the public hearing and asked if there was anyone in the audience who wished to speak regarding this property. Resident Ismael Omer appeared at the hearing. Council President Diehm asked if there was anyone else present that wished to speak regarding this property. There being no one further, she asked for a motion to close the public hearing. RESOLUTION 2007-100 Resolution of the City Council for the City of Columbia Heights approving revocation pursuant to City Code, Chapter SA, Article IV, Section SA.408(A) of that certain residential rental license held by Ismael Omer (Hereinafter "License Holder"). Whereas, license holder is the legal owner of the real property located at 1336-1338 43 '/z Avenue N.E., Columbia Heights, Minnesota, Whereas, pursuant to City Code, Chapter SA, Article IV, Section SA.408(B), written notice setting forth the causes and reasons for the proposed Council action contained herein was given to the License Holder on June 19, 2007 of an public hearing to be held on July 9, 2007. 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: FIi1DINvS OF FACT i. That on December 13, 2006 inspectors for the City of Columbia Heights, inspected the property described above and noted seven violations. A compliance letter listing the violations was mailed by regular mail to the owner at the address listed on the Rental. Housing License Application. 2. That on June 19, 2007 inspectors for the City of Columbia Heights reinspected the property and noted three violations remained uncorrected. A statement of cause was mailed via regular mail to the owner at the address listed on the rental housing license application. 3. That on July 2, 2007, inspectors for the City of Columbia Heights, performed a final inspection at the property and noted three violations remained uncorrected. A statement of cause was mailed via regular mail to the owner at the address listed on the rental housing license application. 4. That based upon said records of the Enforcement Office, the following conditions and violations of the City's Residential Maintenance Code were found to exist, to-wit: a. Shall remove brush piles from the yard b. Shall remove all tree stumps in the yard to within 2-4 inches below ground level c. Shall. cut down trees falling over in the yard 5. That all parties, including the License Holder and any occupants or tenants, have been given the appropriate notice of this hearing according to the provisions of the City Code, Chapter SA, Article III SA.306 and SA.303(A). ORDER OF COUNCIL 1. The rental license belonging to the License Holder described herein and identified by license number F8119 is City Council Minutes July 9, ?10,p'7 Page 7 of _Z hereby revoked. 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. MOTION by Councilmember Nawrocki, seconded by Councilmember Williams, to close the public hearing and to waive the reading of Resolution No.2007-100, there being ample copies available to the public. Motion passed unanimously. MOTION by Councilmember Nawrocki, seconded by Councilmember Williams, to adopt Resolution No. 2007-100, Resolution of the City Council of the City of Columbia Heights approving revocation pursuant to City Code, Chapter SA, Article IV, Section SA.408(A} of the rental license held by Ismael Omer regarding rental property at 1336-1338 43 '/z Avenue N.E. Motion passed unanimously. Adopt Resolution No 2007-101 beinl7 a Resolution for Rental Housing License Revocation at 4644 Washington Street N.E. Council President Diehm opened the public hearing and asked if there was anyone in the audience who wished to speak regarding this property. There being none, she asked for a motion to close the public hearing. RESOLUTION 2007-101 Resolution of the City Council for the City of Columbia Heights approving revocation pursuant to City Code, Chapter SA, Article IV, Section SA.408(A) of that certain residential rental license held by Joe Kollasch (Hereinafter "License Holder"). Whereas, license holder is the legal owner of the real property located at 4644 Washington Street N.E., Columbia Heights, Minnesota, Whereas, pursuant to City Code, Chapter SA, Article IV, Section SA.408(B), written notice setting forth the causes and reasons for the proposed Council action contained herein was given to the License Holder on June 20, 2007 of an public hearing to be held on July 9, 2007. 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 i. That on May 15, 2007 inspectors for the City of Columbia Heights, inspected the property described above and noted two violations. A compliance letter listing the violations was mailed by regular mail to the owner at the address listed on the Rental Housing License Application. 2. That on June 20, 2007 inspectors for the City of Columbia Heights, reinspected the property and noted two violations remained uncorrected. A statement of cause was mailed via regular mail to the owner at the address listed on the rental housing license application. 3. That on June 29, 2007, inspectors for the City of Columbia Heights, performed a final inspection at the property and noted two violations remained uncorrected. A statement of cause was mailed via regular mail to the owner at the address listed on the rental housing license application. 4. That hased upon said records of the Enforcement Offtce, the following conditions and violations of the City's Residential Maintenance Code were found to exist, to-wit: a. Shall remove the scrub growth in the rear by the fence b. Shall remove all/any outside storage from the praperty 5. That all parties, including the License Holder and any occupants or tenants, have been given the appropriate notice of this 1}earing according to the provisions of the City Code, Chapter SA, Article III SA.306 and SA.303(A). City Council Minutes July 9, ?~~7 Page & of ? ORDER OF COUNCIL 1. The rental license belonging to the License Holder described herein and identified by license number F8079B is hereby revoked. 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 nremises within 60 days from the first day_ of posting of this Order revoking the license as held by License Holder. MOTION by Councilmember Nawrocki, seconded by Councilmember Williams, to close the public hearing and to waive the reading of Resolution No.2007-101, there being ample copies available to the public. Motion passed unanimously. MOTION by Councilmember Nawrocki, seconded by Councilmember Williams, to adopt Resolution No. 2007-101, Resolution of the City Council of the City of Columbia Heights approving revocation pursuant to City Code, Chapter SA, Article IV, Section SA.408(A) of the rental license held by Joe Kollasch regarding rental property at 4644 Washington Street N.E. Motion passed unanimously. Adopt Resolution No 2007-102 being a Resolution for abatement of violations at 5030 Johnson Sheet N.E. Council President Diehm opened the public hearing and asked if there was anyone in the audience who wished to speak regarding this property. There being none, she asked for a motion to close the public hearing. RESOLUTION 2007-102 Resolution of the City Council for the City of Columbia Heights declaring the property a nuisance and approving abatement of ordinance violations pursuant to Chapter 8, Article II, of City Code, of the property owned by Kathy Brown (Hereinafter "Owner of Record"). Whereas, the owner of record is the legal owner of the real property located at 5030 Johnson Street N.E., Columbia Heights, Minnesota. And whereas, pursuant to Columbia Heights Code, Chapter 8, Article II, Section 8.206, written notice setting forth the causes and reasons for the proposed council action contained herein was sent via certified mail to the owner of record on June 20, 2007 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 15, 2007 an inspection was conducted on the property listed above. Inspectors found three violations. A compliance order was sent via regular mail to the owner at the address. 2. That on June 20, 2007 inspectors reinspected the property listed above. Inspectors noted that two violations remained uncorrected. A compliance order and statement of cause was mailed via certified and regular mail. to the owner listed in the property records. 3. That on June 29, 2007 inspectors reinspected the property and found that two violations remained uncorrected. A. That based upon said records of the Fire Department, the following conditions and violations of City Cades(s) were found to exist, to wit: B. Shall remove al]/any outside storage from the property C. Shall remove the two dirt piles in the back yard 4. That all parties, including the owner of record and any occupants or tenants, have been given the appropriate notice of this hearing according to the provisions of the City Code Section 8.206(A) and 8.206(B). CONCLUSIONS OF COUNCIL 1. That the property located. at 5030 Johnson Street N.E. is in violation of the provisions of the Columbia Heights City Cade as set faith in the Notice of Abatement. City Council Minutes July 9, ?~~7 Page 9 of _2 2. That all relevant parties and parties in interest have been duly served notice of this hearing, and any other hearings relevant to the abatement of violations on the property listed above. 3. That all applicable rights and periods of appeal as relating to the owner of record, occupant, or tenant, as the case may be, have expired, or such rights have been exercised and completed. ORDER OF COUNCIL 1. The property located at 5030 Johnson Street N.E. constitutes a nuisance pursuant to City Code. 2. That a copy of this order shall be served upon all relevant parties and parties in interest. MOTION by Councilmember Williams, seconded by Councilmember Kelzenberg, to close the public hearing and to waive the reading of Resolution No. 2007-102, there being ample copies available to the public. Motion passed unanimously. MOTION by Councilmember Williams, seconded by Councilmember Kelzenberg, to adopt Resolution No. 2007-102, a resolution of the City Council of the City of Columbia Heights declaring the property at 5030 Johnson Street N.E. a nuisance and approving the abatement of violations from the property pursuant to City Code section 8.206. Motion passed unanimously. Adopt Resolution No 2007-103 being a Resolution for abatement of violations at 2126 45th Avenue N.E. Council President Diehm opened the public hearing and asked if there was anyone in the audience who wished to speak regarding this property. There being none, she asked for a motion to close the public hearing. RESOLUTION 2007-103 Resolution of the City Council for the City of Columbia Heights declaring the property a nuisance and approving abatement of ordinance violations pursuant to Chapter 8, Article II, of City Code, of the property owned by Patrick Englehart (Hereinafter "Owner of Record"). Whereas, the owner of record is the legal owner of the real property located at 2126 45"' Avenue N.E. Columbia Heights, Minnesota. And whereas, pursuant to Columbia Heights Code, Chapter 8, Article II, Section 8.206, written notice setting forth the causes and reasons for the proposed council action contained herein was sent via certified mail to the owner of record on June 1, 2007 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 November 28, 2006 an inspection was conducted on the property listed above. Inspectors found three violations. A compliance order was sent via regular mail to the owner at the address. 2. That on December 18, 2006 inspectors reinspected the property listed above and found that two violations were corrected and one violation remained. uncorrected. A seasonal extension was granted. The property owner was sent a extension letter with the date of the next reinspection. 3. That on June 1, 2007 inspectors reinspected. the property listed above. Inspectors noted that one violation remained uncorrected. A compliance order and statement of cause was mailed via certified and regular mail to the owner listed in the property records. 4. That on July 2, 2007 inspectors reinspected the property and found that one violation remained uncorrected. 5. That based upon said records of the Fire Department, the following conditions and violations of City Codes(s) were found to exist, to wit: a. Shall repair or replace the deteriorated driveway 6. That all parties, including the owner of record and any occupants or tenants, have been given the appropriate notice of this hearing according to the provisions of the City Code Section 8.206(A) and. 8.206(B}. City Council Minutes July 9, ?iQ¢7 Page 10 0 ' 22 CONCLUSIONS OF COUNCIL 1. That the property located at 2126 45"' Avenue N.E. is in violation of the provisions of the Columbia Heights City Code as set forth in the Notice of Abatement. 2. That all relevant parties and parties in interest have been duly served notice of this hearing, and any other hearings relevant to the abatement of violations on the property listed above. 3. That all. applicable rights and periods of appeal as relating to the owner of record, occupant, or tenant, as the case may be, have expired, or such rights have been exercised and completed. ORDER OF COUNCIL 1. The property located at 2126 45"' Avenue N.E. constitutes a nuisance pursuant to City Code. 2. That a copy of this order shall be served upon all relevant parties and parties in interest. MOTION by Councilmember Kelzenberg, seconded by Councilmember Williams, to close the public hearing and to waive the reading of Resolution No. 2007-103, there being ample copies available to the public. Motion passed unanimously. MOTION by Councilmember Kelzenberg, seconded by Councilmember Williams, to adopt Resolution No. 2007-103, a resolution of the City Council of the City of Columbia Heights declaring the property at 2126 45th Avenue N.E. a nuisance and approving the abatement of violations from the property pursuant to City Code section 8.206. Motion passed unanimously. Adopt Resolution No 2007-104 being a Resolution for abatement of violations at 3720 2-1/2 Street N.E. Council President Diehm opened the public hearing and asked if there was anyone in the audience who wished to speak regarding this property. The owner of the subject property, Kenneth Evans, appeared at the hearing. He had a siding contract in hand. He stated he wasn't going to scrape and paint his house- he has told the fire department that-he had a verbal agreement with John Larkin. John Larkin then appeared at the meeting, and stated that a written agreement with a contractor was OK, as well as a copy of a significant down payment. Council President Diehm asked if there was anyone else present that wished to speak regarding this property. There being no one further, she asked for a motion to close the public hearing. RESOLUTION 2007-104 Resol!rtion of the City Council fn_r the City of Columbia. Heights declaring the property a nuisance and approving abatement of ordinance violations pursuant to Chapter 8, Article II, of City Code, of the property owned by Kenneth Evans (Hereinafter "Owner of Record"). Whereas, the owner of record is the legal owner of the real property located at 3720 2 `/ Street N.E. Columbia Heights, Minnesota. And whereas, pursuant to Columbia Heights Code, Chapter 8, Article II, Section 8.206, written notice setting forth the causes and reasons for the proposed council action contained herein was sent via certified mail to the owner of record on June 1, 2007 Now, therefore, in accordance with the foregoing, and al! ordinances and regulations of the City of Columbia Heights, the City Council. of the City of Columbia Heights makes the following: FINDINGS OF FACT That on June 14, 2006 an inspection was conducted an the property listed above. Inspectors found five violations. A compliance order was sent via regular mail to the owner at the address. That on November 9, 2006 inspectors reinspected the property listed above and. found that four violations were corrected and one violation remained uncorrected. A seasonal extension was granted. The property owner was sent a extension Letter with the date of the next reinspection. That on June 1, 2007 inspectors reinspected the property listed above. Inspectors noted that one violation City Council Minutes July 9, ?~~7 Page I I o ?2 remained uncorrected. A compliance order and statement of cause was mailed via certified and regular mail to the owner listed in the property records. 4. That on July 2, 2007 inspectors reinspected the property and found that one violation remained uncorrected. 5. That based upon said records of the Fire Department, the following conditions and violations of City Codes(s) were found to exist, to wit: a. Shall scrape/paint the areas on the house where the paint is peeling 6. That all parties, including the owner of record and any occupants or tenants, have been given the appropriate notice of this hearing according to the provisions of the City Code Section 8.206(A) and 8.206(B). CONCLUSIONS OF COUNCIL 1. That the property located at 3720 2 '/z Street N.E. is in violation of the provisions of the Columbia Heights City Code as set forth in the Notice of Abatement. 2. That all relevant parties and parties in interest have been duly served notice of this hearing, and any other hearings relevant to the abatement of violations on the property listed above. 3. That all applicable rights and periods of appeal as relating to the owner of record, occupant, or tenant, as the case may be, have expired, or such rights have been exercised and completed. ORDER OF COUNCIL 1. The property located at 3720 2 '/ Street N.E. constitutes a nuisance pursuant to City Code. 2. That a copy of this order shall be served upon all relevant parties and parties in interest. MOTION by Councilmember Williams, seconded by Councilmember Kelzenberg, to close the public hearing and to waive the reading of Resolution No. 2007-104, there being ample copies available to the public. Motion passed unanimously. MOTION by Councilmember Williams, seconded by Councilmember Kelzenberg, to adopt Resolution No. 2007-104, a resolution of the City Council of the City of Columbia Heights declaring the property at 3720 2 '/z Street N.E. a nuisance and approving the abatement of violations from the property pursuant to City Code section 8.206. Motion passed unanimously. Admit Resolution No 2007-105 being a Resolution for abatement of violations at 3724 2nd Street N.E. Council President Diehm opened the public hearing and asked if there was anyone in the audience who wished to speak regarding this property. There being none, she asked for a motion to close the public hearing. RESOLLJ'rION 20Q~-iOJ Resolution of the City Council for the City of Columbia Heights declaring the property a nuisance and approving abatement of ordinance violations pursuant to Chapter 8, Article II, of City Code, of the praperty awned by Jeffrey Hansen (Hereinafter "Owner of Record"). Whereas, the owner of record is the legal owner of the real property located at 3724 2"d Street N.E. Columbia Heights, Minnesota. And whereas, pursuant to Columbia Heights Code, Chapter 8, Article II, Section 8.206, written notice setting forth the causes and reasons for the proposed council action contained herein was sent via certified mail to the owner of record on June 13, 2007 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 8, 2007 an inspection was conducted on the propei°ty listed above. Inspectors found three violations. A compliance order was sent via regular mail to the owner at the address. 2. That on June 13, 2007 inspectors re-inspected. the praperty listed above. Inspectors noted. that three violations City Council Minutes July 9, ?~QQ7 Pace 12 ~ ~7 remained uncorrected. A compliance order and statement of cause was mailed via certified and regular mail to the owner listed in the property records. 3. That on July 2, 2007 inspectors reinspected the property and. found that one violation remained uncorrected. 4. That based upon said records of the Fire Department, the following conditions and violations of City Codes(s) were found to exist, to wit: a. Shall repair the damaged stucco on the garage - on the alley side 5. That all parties, including the owner of record and any occupants or tenants, have been given the appropriate notice of this hearing according to the provisions of the City Code Section 8.206(A) and 8.206(B). CONCLUSIONS OF COUNCIL 1. That the property located at 3724 2"d Street N.E. is in violation of the provisions of the Columbia Heights City Code as set forth in the Notice of Abatement. 2. That ali relevant parties and parties in interest have been duly served notice of this hearing, and any other hearings relevant to the abatement of violations on the property listed above. 3. That all applicable rights and periods of appeal as relating to the owner of record, occupant, or tenant, as the case may be, have expired, or such rights have been exercised and completed. ORDER OF COUNCIL 1. The property located at 3724 2°d Street N.E. constitutes a nuisance pursuant to City Code. 2. That a copy of this order shall be served upon all relevant parties and parties in interest. MOTION by Councilmember Nawrocki, seconded by Councilmember Williams, to close the public hearing and to waive the reading of Resolution No. 2007-105, there being ample copies available to the public. Motion passed unanimously. MOTION by Councilmember Nawrocki, seconded by Councilmember Williams, to adopt Resolution No. 2007-105, a resolution of the City Council of the City of Columbia Heights declaring the property at 3724 2nd Street N.E. a nuisance and approving the abatement of violations from the property pursuant to City Code section 8.206. Motion passed unanimously. Adopt Resolution No. 2007-106 being a Resolution for abatement of violations at 4021 Jefferson Street N.E. Council President Diehm opened the public hearing and asked if there was anyone in the audience who wished to speak regarding this property. There being none, she asked for a motion to close the public hearing. RESOLU'I'If31~ 2067-I06 Resolution of the City Council for the City of Columbia Heights declaring the property a nuisance and approving abatement of ordinance violations pursuant to Chapter 8, Article II, of City Code, of the property owned by Anita Streiff (Hereinafter "Owner of Record"). Whereas, the owner of record is the legal owner of the real property located at 4021 Jefferson Street N.E. Columbia Heights, Minnesota. And whereas, pursuant to Columbia Heights Code, Chapter 8, Article II, Section 8.206, written notice setting forth the causes and reasons for the proposed council action contained herein was sent via certified mail to the owner of record on June 1, 2007 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 March 19, 2.007 an inspection was conducted on the property listed above: Inspectors found three violations. A compliance order was sent via regular mail to the owner at the address. 2. That on June 1, 2007 inspectors reinspected the property listed above. Inspectors noted that three violations remained uncor°rected. A compliance order and statement of cause was mailed via certified and regular mail to City Cbunci1 Minutes 7uly 4, 2}{37 Page 13 0 ~? the owner listed in the property records. 3. That on July 2, 2007 inspectors reinspected the property and found that three violations remained uncorrected. 4. That based upon said records of the Fire Department, the following conditions and violations of City Codes(s) were found to exist, to wit: a. Replace rotted garage fascia boards and paint b. Shall repair hardsurfaced parking in rear near garage off the alley. Asphalt is in poor condition and weeds area growing throughout parking area c. Shall remove all/any vehicles from landscaped areas of the property. Vehicles can only be parked on concrete or asphalt/tar parking pads or driveways 5. That all parties, including the owner of record and any occupants or tenants, have been given the appropriate notice of this hearing according to the provisions of the City Code Section 8.206(A) and 8.206(B). CONCLUSIONS OF COUNCIL 1. That the property located at 4021 Jefferson Street N.E. is in violation of the provisions of the Columbia Heights City Code as set forth in the Notice of Abatement. 2. That all relevant parties and parties in interest have been duly served notice of this hearing, and any other hearings relevant to the abatement of violations on the property listed above. 3. That all applicable rights and periods of appeal as relating to the owner of record, occupant, or tenant, as the case may be, have expired, or such rights have been exercised and completed. ORDER OF COUNCIL 1. The property located at 4021 Jefferson Street N.E. constitutes a nuisance pursuant to City Code. 2. That a copy of this order shall be served upon all relevant parties and parties in interest. MOTION by Councilmember Nawrocki, seconded by Councilmember Williams, to close the public hearing and to waive the reading of Resolution No. 2007-106, there being ample copies available to the public. Motion passed unanimously. MOTION by Councilmember Williams, seconded by Councilmember Kelzenberg, to adopt Resolution No. 2007-106, a resolution of the City Council of the City of Columbia Heights declaring the property at 4021 Jefferson Street N.E. a nuisance and approving the abatement of violations from the property pursuant to City Code section 8.206. Motion passed unanimously. Adopt Resolution No 2007-107 being a Resolution for abatement of violations at 4329 Main Street N.E. Council President Dielun opened the public hearing and asked if there was anyone in the audience who wished to speak regarding this property. There being none, she asked for a motion to close the public hearing. RESOLUTION 2007-107 Resolution of the City Council for the City of Columbia Heights declaring the property a nuisance and approving abatement of ordinance violations pursuant to Chapter 8, Article II, of City Code, of the property owned by Bart Mady (Hereinafter "Owner of Record"). Whereas, the owner of record is the legal owner of the real property located at 4329 Main Street N.E. Columbia Heights, Minnesota. And whereas, pursuant to Columbia Heights Code, Chapter 8, Article II, Section 8.206, written notice setting forth the causes and reasons for the proposed council action contained herein was sent via certified mail to the owner of record on June I, 2007 Now, therefore, in accordance with the foregoing, and alI ordinances and regulations of the City of Columbia Heights, the City Council of the City of Columbia Heights makes the fallowing: FINDINGS OF FACT 1. That on October 4, 2006 an inspection was conducted an the property listed above. Inspectors found five City Council Minutes July 9, 2~2~~ Page 14 0 '2 violations. A compliance order was sent via regular mail to the owner at the address. 2. That on February 6, 2007 inspectors reinspected the property listed above and found that three violations were corrected and two violation remained uncorrected. A seasonal extension was granted. The property owner was sent a extension letter with the date of the next reinspection. 3. That on June 1, 2007 inspectors reinspected the property listed above. Inspectors noted that two violations remained uncorrected. A compliance order and statement of cause was mailed via certified and regular mail to the owner listed in the property records. 4. That on July 2, 2007 inspectors reinspected the property and found that two violations remained uncorrected. 5. That based upon said records of the Fire Department, the following conditions and violations of City Codes(s} were found to exist, to wit: a. Shall replace all missing/damaged fascia on the garage b. Shall repair the damaged roof and the damage soffit and the damaged fascia on the building 6. That all parties, including the owner of record and any occupants or tenants, have been given the appropriate notice of this hearing according to the provisions of the City Code Section 8.206(A) and 8.206(B). CONCLUSIONS OF COUNCIL 1. That the property located at 4329 Main Street N.E. is in violatian of the provisions of the Columbia Heights City Code as set forth in the Notice of Abatement. 2. That all relevant parties and parties in interest have been duly served notice of this hearing, and any other hearings relevant to the abatement of violations on the property listed above. 3. That all applicable rights and periods of appeal as relating to the owner of record, occupant, or tenant, as the case may be, have expired, or such rights have been exercised and completed. ORDER OF COUNCIL 1. The property located at 4329 Main Street N.E. constitutes a nuisance pursuant to City Code. 2. That a copy of this order shall be served upon all relevant parties and parties in interest. MOTION by Councilmember Nawrocki, seconded by Councilmember Williams, to close the public hearing and to waive the reading of Resolution No. 2007-107, there being ample copies available to the public. Motion passed unanimously. MOTION by Councilmember Nawrocki, seconded by Councilmember Williams, to adopt Resolution No. 2007-107, a resolution of the City Council of the City of Columbia Heights declaring the property at 4329 Main Street N.E. a nuisance and approving the abatement of violations from the property pursuant to City Code section 8.206. Motion passed unanimously. Adopt Resolution No 2007-108 being a Resolution for abatement of violations at 3704 2nd Street N.E. Council President Diehm opened the public hearing and asked if there was anyone in the audience who wished to speak regarding this property. There being none, she asked for a motion to close the public hearing. RESOLUTION 200'7-108 Resolution of the City Council for the City of Columbia Heights declaring the property a nuisance and approving abatement of ordinance violations pursuant to Chapter 8, Article II, of City Code, of the property owned by Leonardo Campos Garcia (Hereinafter "Owner of Record"). Whereas, the owner of record is the legal owner of the real property located at 3704 2"`~ Street N.E. Columbia Heights, Minnesota. And whereas, pursuant to Cohtmbia Heights Code, Chapter 8, Article II, Section 8.206, written notice setting forth the causes and reasons for the proposed council action contained herein was sent via certified mail to the owner of record on June I3, 2007 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: City Council Minutes July 9, 7 Page (5 0 22 FINDINGS OF FACT 1. That on May 8, 2007 an inspection was conducted on the property listed above. Inspectors found three violations. A compliance order was sent via regular mail to the owner at the address. 2. That on June I3, 2007 inspectors re-inspected the property listed above. Inspectors noted that three violations remained uncorrected.. A compliance order and statement of cause was mailed via certified and regular mail. to the owner listed in the property records. 3. That on July 2, 2007 inspectors reinspected the property and found that three violations remained uncorrected. 4. That based upon said records of the Fire Department, the following conditions and violations of City Codes(s) were found to exist, to wit: a. Shall replace the missing storm door on the side of the house b. Shall scrape and paint the garage trim c. Shall remove all/any outside storage from the property. 5. That all parties, including the owner of record and any occupants or tenants, have been given the appropriate notice of this hearing according to the provisions of the City Code Section 8.206(A) and 8.206(B). CONCLUSIONS OF COUNCIL 1. That the property located at 3704 2°d Street N.E. is in violation of the provisions of the Columbia Heights City Code as set forth in the Notice of Abatement. 2. That all relevant parties and parties in interest have been duly served notice of this hearing, and any other hearings relevant to the abatement of violations on the property listed above. 3. That all applicable rights and periods of appeal as relating to the owner of record, occupant, or tenant, as the case may be, have expired, or such rights have been exercised. and completed. ORDER OF COUNCIL 1. The property located at 3704 2°d Street N.E. constitutes a nuisance pursuant to City Code. 2. That a copy of this order shall be served upon all relevant parties and parties in interest. MOTION by Councilmember Nawrocki, seconded by Councilmember Williams, to close the public hearing and to waive the reading of Resolution No. 2007-108, there being ample copies available to the public. Motion passed unanimously. MOTION by Councilmember Nawrocki, seconded by Councilmember Williams, to adapt Resolution No. 2007-108, a resolution of the City Council of the City of Columbia Heights declaring the property at 3704 2nd Street N.E. a nuisance and approving the abatement of violations from the property pursuant to City Code section 8.206. Motion passed unanimously. Adopt Resolution No. 2007-109 being a Resolution for abatement of violations at 1625 Innsbruck Parkway N.E (,ITEM PULLED FROM ACrENDA) Adopt Resolution No 2007-110 beintz a Resolution for abatement of violations at 4236 Madison Street N.E Council President Diehm opened the public hearing and asked if there was anyone in the audience who wished to speak regarding this property. There being none, she asked for a motion to close the public hearing. RESOLUTION 2007-110 Resolution of the City Council for the City of Columbia Heights declaring the property a nuisance and approving abatement of ordinance violations pursuant to Chapter 8, Article II, of City Code, of the property owned by Patrick Brady (Hereinafter "Owner of Record"}. Whereas, the owner of record is the legal. owner of the real property located at 4236 Madison Street N.E. Columbia Heights, Minnesota. City Council Minutes July 9, 2j?Q7 Page 16 0 ~2 And whereas, pursuant to Columbia Heights Code, Chapter 8, Article II, Section 8.206, written notice setting forth the causes and reasons for the proposed. council action contained herein was sent via certified mail to the owner of record on June 1, 2007 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 I. That on August 1, 2006 an inspection was conducted on the property listed above. Inspectors found three violations. A compliance order was sent via regular mail to the owner at the address. 2. That on February 6, 2007 inspectors reinspected the property listed above and found that one violation was corrected. and two violations remained uncorrected. A seasonal extension was granted. The property owner was sent a extension letter with the date of the next reinspection. 3. That on June 1, 2007 inspectors reinspected the property listed above. Inspectors noted that two violations remained uncorrected. A compliance order and statement of cause was mailed via certified and regular mail to the owner listed in the property records. 4. That on July 2, 2007 inspectors reinspected the property and found that one vialation remained uncorrected. 5. That based upon said records of the Fire Department, the following conditions and violations of City Codes(s} were found to exist, to wit: a. Replace rotted siding on garage and paint 6. That all parties, including the owner of record and any occupants or tenants, have been given the appropriate notice of this hearing according to the provisions of the City Code Section. 8.206(A) and 8.206(B). CONCLUSIONS OF COUNCIL 1. That the property located at 4236 Madison Street N.E. is in violation of the provisions of the Columbia Heights City Code as set forth. in the Notice of Abatement. 2. That all relevant parties and parties in interest have been duly served notice of this hearing, and any other hearings relevant to the abatement of violations on the property listed above. 3. That all applicable rights and periods of appeal as relating to the owner of record, occupant, or tenant, as the case may be, have expired, or such rights have been exercised and completed. ORDER OF COUNCIL 1. The property located at 4236 Madison Street N.E. constitutes a nuisance pursuant to City Code. 2. That a copy of this order shall be served upon all relevant parties and parties in interest. MOTION by Councilmember Williams, seconded by Councilmember Kelzenberg, to close the public hearing and to waive the reading of Resolution No. 2007-110, there being ample copies available to the public. Motion passed unanimously. PdiOTION by Councilmember ~J`Jilliams, seconded by Councilmember Kelzenberg, to adopt Resolution No. 2007-110, a resolution of the City Council of the City of Columbia Heights declaring the property at 4236 Madison Street N.E. a nuisance and approving the abatement of violations from the property pursuant to City Code section 8.206. Motion passed unanimously. Adopt Resolution No. 2007-111 beint; a Resolution for abatement of violations at 1870 Fairway Drive N.E. Council President Diehm opened the public hearing and asked if there was anyone in the audience who wished to speak regarding this property. There being none, she asked for a motion to close the public hearing. RESOLUTION 2007-111 Resolution of the City Council for the City of Columbia Heights declaring the property a nuisance and approving abatement of ordinance violations pursuant to Chapter 8, Article II, of City Code, of the property owned by Beverly Schaefer (Hereinafter "Owner of Record"). City Council Minutes July 9,'~~7 Page 17 of 22 Whereas, the owner of record is the legal owner of the real property located. at 1870 Fairway Drive N.E. Columbia Heights, Minnesota. And whereas, pursuant to Columbia Heights Code, Chapter 8, Article II, Section 8.206, written notice setting forth the causes and reasons for the proposed council action contained herein was sent via certified mail to the owner of record on June 1, 2007. 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 June 8, 2006 an inspection was conducted on the property listed above. Inspectors found six violations. A compliance order was sent via regular mail to the owner at the address. 2. That on November 20, 2006 inspectors reinspected the property listed above and found that five violations were corrected and one violation remained uncorrected.. A seasonal extension was granted. The property owner was sent a extension letter with the date of the next reinspection. 3. That on June i, 2007 inspectors reinspected the property listed above. Inspectors noted that one violation remained uncorrected. A compliance order and statement of cause was mailed. via certified and regular mail to the owner listed in the property records. 4. That on July 2, 2007 inspectors reinspected the property and found that one violation remained uncorrected. 5. That based upon said records of the Fire Department, the following conditions and violations of City Codes(s) were found to exist, to wit: a. Shall scrape and paint the peeling paint on the fascia and soffit 6. That all parties, including the owner of record and any occupants or tenants, have been given the appropriate notice of this hearing according to the provisions of the City Code Section 8.206(A) and 8.206(B). CONCLUSIONS OF COUNCIL 1. That the property located at 1870 Fairway Drive N.E. is in violation of the provisions of the Columbia Heights City Code as set forth. in the Notice of Abatement. 2. That all relevant parties and parties in interest have been duly served notice of this hearing, and any other hearings relevant to the abatement of violations on the property listed above. 3. That all applicable rights and periods of appeal as relating to the owner of record, occupant, or tenant, as the case may be, have expired, or such rights have been exercised and completed. ORDER OF COUNCIL 1. The property located at 1870 Fairway Drive N.E. constitutes a nuisance pursuant to City Code. 2. That a copy of this order shall be served upon all relevant parties and parties in interest. MOTION by Councilmember Williams, seconded by Councilmember Kelzenberg, to close the public hearing and to waive t_h_e _reading of Resolution No: 2007-11 1, there being ample copies available to the public. Motion passed unanimously. MOTION by Councilmember Williams, seconded by Councilmember Kelzenberg, to adopt Resolution No. 2007-111, a resolution of the City Council of the City of Columbia Heights declaring the property at 1870 Fairway Drive N.E. a nuisance and approving the abatement of violations from the property pursuant to City Code section 8.206. Motion passed unanimously. Adopt Resolution No. 2007-112 being a Resolution for abatement of violations at 2314 Maiden Lane N.E. Council President Diehm opened the public hearing and asked if there was anyone in the audience who wished to speak regarding this property. Residents Mr. and Mrs. Robin Stromberg appeared before the council and stated that due to numerous personal issues, they needed more time to put the driveway in. Councilmembers agreed to proceed with the abatement of violations and give the resident 90 days to comply. The residents were encouraged to contact Bab Streetar, Community Development Director, about possible funding sources. City Council Minutes July 9, 2~p7 Page 18 0 ~2 Council President Diehm asked if there was anyone else present that wished to speak regarding this property. There being no one further, she asked for a motion to close the public hearing. RESOLUTION 2007-112 Resolution of the City Council for the City of Columbia Heights declaring the property a nuisance and approving abatement of ordinance violations pursuant to Chapter 8, Article II, of City Code, of the property owned by Robin Stromberg (Hereinafter "Owner of Record"). Whereas, the owner of record is the legal owner of the real property located at 2314 Maiden Lane N.E. Columbia Heights, Minnesota. And whereas, pursuant to Columbia Heights Code, Chapter 8, Article II, Section 8.206, written notice setting forth the causes and reasons for the proposed council action. contained herein was sent via certified mail to the owner of record on June 14, 2007. 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 9, 2007 an inspection was conducted on the property listed above. Inspectors found one violation. A compliance order was sent via regular mail to the owner at the address. 2. That on June 14, 2007 inspectors reinspected the property listed above. Inspectors noted that one violation remained uncorrected. A compliance order and statement of cause was mailed via certified and regular mail to the owner listed in the property records. 3. That on July 2, 2007 inspectors reinspected the property and found that one violation remained uncorrected. 4. That based upon said records of the Fire Department, the following conditions and violations of City Codes(s) were found to exist, to wit: a. Shall install a hard surface driveway OR an approved. landscaping material in front of the garage where there is no driveway 5. That all parties, including the owner of record and any occupants or tenants, have been given the appropriate notice of this hearing according to the provisions of the City Code Section 8.206(A) and 8.206(B). CONCLUSIONS OF COUNCIL 1. That the property located at 2314 Maiden Lane N.E. is in violation of the provisions of the Columbia Heights City Code as set forth in the Notice of Abatement. 2. That all relevant parties and parties in interest have been duly served notice of this hearing, anal any other hearings relevant to the abatement of violations on the property listed above. 3. That all applicable rights and periods of appeal as relating to the owner of record, occupant, or tenant, as the case may be, have expired, or such rights have been. exercised and completed. ORDER OF COUNCIL 1. The property located at 2314 Maiden Lane N.E. constitutes a nuisance pursuant to City Code. 2. That a copy of this order shall be served upon all relevant parties and parties in interest. MOTION by Councilmember Williams, seconded by Councilmember Kelzenberg, to close the public hearing and to waive the reading of Resolution No. 2007-112, there being ample copies available to the public. Motion passed unanimously. MOTION by Councilmember Williams, seconded by Councilmember Kelzenberg, to adopt Resolution No. 2007-112, a resolution of the City Council of the City of Columbia Heights declaring the property at 2314 Maiden Lane N.E. a nuisance and approving the abatement of violatians fram the property pursuant to City Cade section 8.206. Motion passed unanimously. Adopt Resolution No 2007-113 being a Resolution for abatement ofviolations at 4149 7th Street N.E. City Council Minutes July 9, 2~7 t';~ge 19 0 ?2 Council President Diehm opened the public hearing and asked if there was anyone in the audience who wished to speak regarding this property. Fire Chief, Gary Gorman, stated that the property is vacant and is being foreclosed. Council President Diehm asked if there was anyone else in the audience who wished to speak regarding this property. There being none, she asked for a motion to close the public hearing. RESOLUTION 2007-113 Resolution of the City Council for the City of Columbia Heights declaring the property a nuisance and approving abatement of ordinance violations pursuant to Chapter 8, Article II, of City Code, of the property owned by Roy & Pamela Villa (Hereinafter "Owner of Record"). Whereas, the owner of record is the legal owner of the real property located at 4149 7`h Street N.E. Columbia Heights, Minnesota. And whereas, pursuant to Columbia Heights Code, Chapter 8, Article II, Section 8.206, written notice setting forth the causes and reasons for the proposed council action contained herein was sent via certified mail to the owner of record on June 1, 2007. 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 September 1, 2006 an inspection was conducted on the property listed above. Inspectors found eleven violations. A compliance order was sent via regular mail. to the owner at the address. 2. That on February 1, 2007 inspectors reinspected. the property listed above and noted that three violations were corrected and eight violations remained uncorrected. A seasonal extension letter was mailed to all interested parties listed for that parcel. 3. That on June 1, 2007 inspectors re-inspected the property listed above. Inspectors noted that five violations remained uncorrected. A compliance order and statement of cause was mailed via certified and regular mail to the owner listed in the property records. 4. That on July 2, 2007 inspectors reinspected the property and found that five violations remained uncorrected. 5. That based upon said records of the Fire Department, the following conditions and violations of City Codes(s) were found to exist, to wit: a. Shall repair all/any damaged windows on the structure b. Shall seal, stain, paint all bare wood around the basement egress window on the south side of the house c. Shall repair the damaged gutters on the south side of the house d. The fallen tree has damaged the house. Shall repair the house to current code e. Shall have a qualified, licensed electrician. repair the electrical service to the house 6. That ali parties, including the owner of record and any occupants or tenants, have been given the appropriate notice of this hearing according to the provisions of the City Code Section 8.206(A} and 8.206(B). CONCLUSIONS OF COUNCIL 1. That the property located at 4149 7`h Street N.E. is in violation of the provisions of the Columbia Heights City Code as set forth in the Notice of Abatement. 2. That all relevant parties and parties in interest have been duly served notice of this hearing, and any other hearings relevant to the abatement of violations on the property listed above. 3. That all applicable rights and periods of appeal as relating to the owner of record, occupant, or tenant, as the case may be, have expired, or such rights have been exercised and completed. ORDER OF COUNCIL 1. The property located at 4149 T~' Street N.E. constitutes a nuisance pursuant to City Code. 2. That a copy of this order shall be served upon all relevant parties and parties in interest. MOTION by Councilmember Nawrocki, seconded by Councilmember Williams, to close the public heating and to waive the reading of Resolution No. 2007-113, there being ample copies available to the public. Motion passed unanimously. City Council Minutes July 9,~7 Page 20 0 ~2 MOTION by Councilmember Nawrocki, seconded by Councilmember Williams, to adopt Resolution No. 2007-113, a resolution of the City Council of the City of Columbia Heights declaring the property at 4149 7th Street N.E. a nuisance and approving the abatement of violations from. the property pursuant to City Code section 8.206. Motion passed unanimously. 7. ITEMS FOR CONSIDERATION A. Other Ordinances and Resolutions -None B. Bid Considerations -None C. Other Business Public Safety facilit,~pdate: The City Manager stated that more police and fire stations have been looked at in the metropolitan area. He stated TIF funds will be coming due in the future, and we should be looking at an RFP from various developers. Councilmember Nawrocki stated that he wants to be involved with the interviews of the developers; however, he feels this step is premature. We should use our current Police Department space far the Fire Department. Pool Inspections: Councilmember Nawrocki inquired who is doing pool inspections, in light of the recent pool incident in the metro area. The City Manager stated that Anoka County inspects the pools yearly, checking numerous items, prior to opening each season. Donation to Alexandra House: A request for a donation has been received from the Alexandra House. Discussion on county contribution to these programs was held. MOTION by Councilmember Nawrocki, seconded by Councilmember Williams, to direct the City manager to send a letter to Alexandra House denying their request for a donation. Motion passed unanimously. Work Session Items for July 16, 2007: Councilmember Nawrocki asked what the items were for the work session of Julyl6th. The City Manager went over these items in item 8A of the agenda. It was noted that the property at 950 39th Avenue, which was tabled at the last council meeting, is now in compliance. 8. ADMINISTRATIVE REPORTS Report of the City Mariage~ Work session items for July 16, 2007: • Public Improvement Hearing on Alley Lights (after actual work session) • Generator bids far Murzyn Hall, Municipal Service Center, and Water pumping station #2 • Infrastructure Fund 20 year project (funding) The City Manager stated that the Fire Department is doing a good job on the weeds in the city. City Council Minutes Jufy 9, 2~7 Page 21 0 ~2 Councilmember Nawrocki stated that improvements can be seen. Report of the City Attorney-Nothing to report 9. CITIZENS FORUM At this time, citizens have an opportunity to discuss with the Council items not on the regular agenda. Citizens are requested to limit their comments to five minutes. Anyone who would like to speak shall state his/her name and address for the record. 10. COUNCIL CORNER Kelzenber~: Hoped everyone enjoyed the Jamboree parade and events. Williams: Read an e-mail from a resident about their idea to conveniently locate all city services around Huset Park property, offering access and convenience to long-term community services in a central govennnent center. Diehm: Hoped everyone enjoyed Jamboree events and others around the city, i.e., the Way Way Off Broadway presentation (offered through our Recreation Department). She also stated that Evelyn Kleine from Parkview Villa will be celebrating her 100`" birthday on July 11 from 6-8 p.m., and the public is invited. RSVP's to (763) 785-2588 or (763) 706-6465. Nawrocki: He recently attended the League of Minnesota Cities meeting in Duluth. He attended various sessions on city services, financial restrictions, development, positive public perception, better information for citizens, public purpose expenditures, employee off-duty conduct, data practices, and law summaries. He offered his handouts of these subjects to anyone who was interested. Councilmember Nawrocki also commented on the proposal for the Community Center newsletter, and asked if there were other proposals requested besides the one from Nystrom's. He stated there is a berm/drainage issue at 1040 49`'' Avenue. At 5121 University, there are two apartment units with a retaining wall issue. Regarding the comprehensive plan, the selection process used was questioned, as there were six proposals received and only two presented for consideration. A progress report on the beeping stop light at 40t" and Central was requested. Junk vehicles in the area of 39`h and 37`'' need attention if we are trying to improve oui° community. Comments were made regarding 4631-33 Pierce. The appliance recycling phone number is 952- 894-1448. 11. ADJOURNMENT The meeting adjourned at 9:42 p.m. Respectfully submitted, Carole J. Blowers Secretary Pro Tem. City Council Minutes July 9, 2~Q7 Pace ?~ o ~? OFFICIAL PROCEEDINGS CITY OF COLUMBIA HEIGHTS CITY COUNCIL PUBLIC IMPROVEMENT HEARING JULY 16, 2007 The following are the Special Meeting minutes for the Public Hearing of the City Council held at 6:00 p.m. on Monday, July 16, 2007 in the City Council Chamber, City Hall, 590 40`h Avenue NE, Columbia Heights, MN. CALL TO ORDER/ROLL CALL Present: Mayor Peterson, Councilmember Nawrocki, Councilmember Diehm, Councilmember Kelzenberg, Councilmember Williams (arrived 6:43 p.m.} PUBLIC HEARING: ALLEY LIGHTING, PIR 677-35 Alley Lighting Project 1) Presentation of information on alley lighting project by Staff Kevin Hansen, City Engineer, stated this is for 15 alley lights at six locations. He referred to a map which showed the proposed locations. These areas were recommended by the police department. The cost was estimated at a total $8.63 a month or about $100 a year. The lights would go on existing poles. Fehst asked if 100 watt lights are standard. Hansen stated yes. Nawrocki questioned the number of lights on the map and indicated that there are lights already at 957 47`h, 954 Tyler, and 4633-41 Tyler. Hansen stated that he has checked the sites, but if incorrect a light would not be placed. Diehm asked if the businesses have their own lighting. Hansen stated that they do and some locations already have lights. Nawrocki stated that on the Polk and Taylor alley there are properties with weeds and piles of branches and the Vietnamese restaurant has graffiti on the back of the building. 2} Questions and Comments on project Jane Halek, 4600/4602 Fillmore, duplex owner, asked the cost with utility poles already in place. Hansen stated that Xcel does not charge for installation of lights, just the electric usage fee. Haiek stated that to save energy, sorer rights should be considered. She stated she was against this project as she has flood lights that are used and all others in her area, but one, also have flood lights. Halek indicated that the lights would flood her bedroom every night. She refereed to her neighbor's overflowing garbage in the alley that would now be lit up. 4607 Taylor has construction garbage. Halek again requested the lighting be solar. She stated that if this is for security, neighbors with lights were still robbed, so she is not sure it deters crime. Nawrocki stated that with solar panels there would be a cost. Halek stated they do not use the alley because of the elevation. Nawrocki indicated his belief in lighting, as early on his property was broken in to and in 1968 he had a light put in with no further incidents. Halek indicated she would be willing to pay a one time fee far solar lights and asked haw this could be accomplished. Kelzenberg stated that Council approval requires a 4/5`" vote. Nawrocki stated a petition could be filed. Halek referred to paying far the electronic meter readep•s. Fehst stated that security was the reason this was considered, along with possibly installing cameras. There has been additional policing in the area. People do not leave their lights on, and these lights would be left on. Hansen stated that solar lights are not available for municipal lighting programs. He does not 30 Columbia Heights Public Improvement Hearing July 1 b, 2007 Page 2 of 4 have the purchase or maintenance costs for solar lights. Nawrocki stated that if Ms. Halek has such a source, we would appreciate the information. Peterson stated that private lighting would probably cost more than a $1 a month. Richard Davies, 1111 46th Avenue, stated he previously spoke to the City Manager about lights for the roads, not the alleys. Diehm stated that the roads would be lit and paid for by the city, but alley lighting must be assessed. Davies stated that he was not in favor of the alley lighting. Lee Stauch, 4554/56 Fillmore Street, stated that all garages but one have motion sensor lights. He did not agree to more assessments on the alley. There is graffiti on buildings that are lit. He suggested the police officers walk through the alleys and streets. Diehm stated that this lighting is consistent with other areas of the city. Fehst stated it is a little more comprehensive than other areas, and has proven to reduce crime in neighborhoods. Ke11y Sullivan, 4540 Polk Street, stated they paid for their alley light and indicated she appreciates the light, as you can see down the alley and not wait for a motion light to trigger. She thanked the Council for doing this in their neighborhood. Edith Horvath, 4617 Polk Street, stated that the alleys are too dark and this allows drug dealing. There was a shooting in the area last March. She stated that she is in favor of the lighting, as crime is a big problem in her area. Nawrocki stated that lighting would not solve the problem, but it is a step in the right direction. We should spend more time cleaning up the properties in this area. He indicated that at apartment buildings 1410 and 1440 47th the garbage vats are overflowing. Police Chief Tom Johnson stated that all safety training points to lighting of areas for the best defense. Motion detectors are dangerous for officers; they may trip it while the criminal is hiding in the dark. Officers do get out of their cars checking the area as much as possible. We have an officer on the Drug Task Force working such areas. We want to make it safer for our officers and for the residents. Johnson encouraged the City Council to approve the alley lighting. We want to improve the area and we are also looking to place a public service building there. Hopefully, we can begin bike patrols in the area. Halek stated her appreciation of the police coverage, but requested the solar lighting option be checked. A I-esident asked if people in the area carry guns. Johnson stated that officers have take several guns a month from that area. Diehzn indicated that our Di°ug Task Force Officer is undercover and should not be noticeable. Kelzenberg stated that he likes the idea of having officers on bikes. Capt. Roddy indicated that he prefers permanent dusk to dawn lighting, as it makes the environment less inviting. Permanent lighting assisted officers in following a suspect to the 4600 block of Tyler, He could not be located after that because of darkness. Lighting would assist the police to be more effective. Roddy stated that Ms. Halek's property is extremely well lit, but alley lighting will cover 150 feet each side of the light. 31 Columbia Heights Public Improvement Hearing Juty 16, 2007 Page 3 of 4 Close the Public Hearing and Consideration of Resolution Motion by Nawrocki, second by Diehm, (with the understanding to research solar sheet lighting) to close the Public Hearing of the Alley Lighting Project, PIR 677-38 and to waive the raarlina of RPenhrtinn Nn 7(1(17_1 14 thPrP hPina amn1P ~nniPC availahlP to the »nhlic Upon vote: All ayes. Motion carried. Motion by Nawrocki, second by Diehm, to adopt Resolution No. 2007-114, being a resolution ordering and levying fifteen lights located in six alleys between Central Avenue and Fillmore Street, 45`h Avenue to 47`h Avenue, known as PIR 677-38. Upon vote: All ayes. Motion carried. RESOLUTION N0.2007-114 RESOLL'TICN LEVYING A~1D ADOPTIPdG ALLEY LIGHTS ASSESSMENT NC. 677-38 Adopting assessment roll according to the City Charter for the following local. improvement and determining that said improvement will be made and ratifying and confirming all other proceedings, heretofore had: Special Assessment for alley lights numbered 677-38 WHEREAS, the City Council of the City of Columbia Heights, Minnesota, met at 6:00 p.m. on the 16`h day of July 2007, in the City Council Chambers, 590 40`h Avenue N.E. Columbia Heights, Minnesota, being the time and. place set when and where all persons interested could appear and be heard by the Council with respect to benefits, and to the proportion of the cost of making the local improvement above described, a notice of such hearing having been heretofore duly published as required by law, and a notice mailed to each property owner of record, stating the proposed amount of the assessment; and, WHEREAS, this Council has heretofore estimated the cost of such local improvement and has prepared an assessment roll therefore, THE CITY COUNCIL OF THE CITY OF COLUMBIA HEIGHTS HEREBY RESOLVES: Section i. That this Council does hereby adopt the aforesaid assessment roll known and described as "Assessment Roll for Local Improvements" numbered 677-38 for alley lighting. Section 2. That this Council hereby finds and determines that each of the lots and parcels of land enumerated in said assessment roll was and is especially benefited by such improvements. This Council further finds and determines that the proper proportion of the cost of such improvement to be especially assessed against each lot or parcel of land is the amount as billed annually by Xcel Energy Company. Section 3. That the assessment will be added to the utility bill prepared and mailed by the City of Columbia Heights to property owners or occupants on record with the Finance Departfiietit. Section 4. This resolution shall take effect immediately upon its passage. Peterson stated that we are attempting to clean up this area. Halek stated that she changed her mind and wants the lights to help protect our officers, but still requests looking into solar lighting. Halek asked if Columbia Heights would consider mandating recycling. Fehst described the single sort recycling pilot program. Fehst indicated that if dumpsters are overflowing, we could require larger cantainers or more frequent pickups. We do receive annual awards for recycling. Fehst referred to the mandate on electronic recycling. Resident asked if police officers can fine people for throwing battles in their yards. Roddy stated we would if they are seen doing it. A,J<OU ENT Mayor Peterson adjourned the meeting at 6:53 p.m. 32 Columbia Heights Public Improvement Hearing July ]b, 2007 Page 4 of 4 Patricia Muscovitz CMC City Clerk 33 CITY COUNCIL LETTER Meeting of 7/23/07 AGENDA SECTION: CONSENT AGENDA ORIGINATING DEPARTMENT: CITY MANAGER NO: PUBLIC WORKS ITEM: AUTHORIZATION TO SEEK BIDS FOR 2007 BY: K. Hansen BY: SANITARY SEWER PIl'E LINING PROJECT DATE 7/18/07 DATE: Background: Public V~Iorks annually budgets $125,000 for pipe lining to address pipe deficiencies. Through the sewer lining televising program, utility crews televise and inspect 16,000 - 20,000 feet a year. From these reports, a determination is made on pipe conditions. Along with a history of plugged sewers and/or backups, a determination is made for which pipe segments would benefit from pipe lining. Analysis & Conclusions: Three segments of pipe are recommended for lining in 2007: 659 feet of l2" VCP clay the on Madison Street, from 50`h Avenue to S l S` Avenue. Inspection reports have identified significant joint infiltration and cracked pipe. Lining will restore pipe integrity and eliminate root intrusion and infiltration at the joints. 2. 1,334 feet of 12" VCP clay the on Sls` Avenue, from Madison Street to Easement between Jackson Street and Central Avenue. Inspection reports have identified significant joint infiltration and cracked pipe. Lining will restore pipe integrity and eliminate root intrusion and infiltration at the joints. 3. 565 feet of 8" VCP clay the on 3rd Street, 37`h Avenue to 38`h Avenue. Inspection reports have identified significant joint infiltration and cracked pipe. Lining will restore pipe integrity and eliminate root intrusion and infiltrationz at tie joints. Recommended Motion: Move to authorize staff to seek bids for the 2007 Sanitary Sewer Pipe Lining Project for the pipe segments identified herein. COUNCIL ACTION: s4 CITY COUNCIL LETTER Meeting of 7/23/07 AGENDA SECTION: CONSENT AGENDA ORIGINATING DEPARTMENT: NO: PUBLIC WORKS ITEM: ACCEPTING BIDS ON THREE GENERATORS BY: K. Hansen AND AWARDING A CONTRACT TO CUMMINS DATE: 7/17/07 NPOWER CITY MANAGER BY: DATE: Background: In September of 2005 a severe thunderstorm swept through the area causing the entire City to lose power. The City Hall building, due to the prior purchase of a new building generator, was fully operational until power was restored. This was not the case with other City buildings, specifically Murzyn Hall and Public Works. Both of these buildings are a vital part of City services and are part of the City's overall Emergency Operation Plan. Public Works is proposing to replace the 1960's generator in the City pump house at 44`h Avenue and Reservoir Boulevard. Due to age, and the fact it can only run one of the two pumps makes this generator insufficient. A 100 kW replacement generator is proposed. The overall goal of Emergency Management staff is for the City to provide 100% of vital city services during, and after emergencies. The purchase/replacement of these three generators brings us closer to meeting this goal. At this time both generators for Public Works are in the 2007 budget. The Murzyn Hall generator is not in this year's budget. In discussions with generator vendors, the purchase of three generators at once will save approximately 5 - 7 % over buying them separately. It is our recommendation that the generator for Murzyn Hall be purchased. at this time with the other two due to the cost savings. The City authorized staff to seek. bids for the 3 generators at their Apri19`" meeting. Analysis/Conclusions: Staff prepared specifications for the supply and installation of three generators and advertised for publ is bidding. Eight contractors or suppliers requested copies of the bidding documents. Six bids were received and publicly read aloud at the June 27"', 2007 bid opening. A copy of the complete bid tabulation is attached. The low bid is from Cummings NPower out of White Bear Lake, who provides Onan Generators. The existing generator at City Hall. is an Onan generator. Staff had received pricing in 2006 on individual locations and the bids received herein represent an approximate 8 % savings from those price quotes. The Municipal Service Center and Water Pump Station #2 were budgeted in the 2007 adopted budget. T he Murzyn Hail gorier ator is proposed to be funded out of the Capital Improvements General Government Buildings Fund (fund 411). This fund was established to fund capital improvements to the City's four major buildings. As of December 31, this fund has a balance of $688,290. RECOMMENDED MOTION: Move to accept bids and award the contract for the purchase of generators, including installation, for Water Pump Station 2, Municipal Service Center and Murzyn Hall to Cummins NPower of White Bear Lake, MN, in the amount of $163,390 and authorize the Mayor and City Manager to enter into a contract for the same and to appropriate $56,900 in the Capital Improvements General Government Buildings fund for the Murzyn Hall generator. COUNCIL ACTION: 36 COLUMBIA HEIGHTS CITY COUNCIL LETTER Meetin of: Jul 23, 2007 AGENDA SECTION: Consent Agenda ORIGINATING DEPARTMENT: CITY MANAGER' S 1V V : l.lJ1Ill11Ulllly LG V GLlIiJ111Gl11 t1r t All V riL ITEM: Approve Professional Services BY: Jeff Sargent, City Planner BY: Agreement from Bonestroo for the DATE: July 17, 2007 Comprehensive Plan Update. BACKGROUND Columbia Heights is seeking professional services to assist in completing its Comprehensive Plan update. The previous plan was completed in 2000. The City is at a pivotal point in its planning history with abundant redevelopment activities underway through City initiatives that started in 2002. It will be important to create a plan that will continue to support these efforts and identify additional redevelopment efforts to maintain Columbia Heights as a vital place to live, work, shop, and recreate. The planning process will focus on updating the Comprehensive Plan to meet the Metropolitan Council's minimum requirements. It will also focus on reviewing and updating current goals and policies to fit the desires of the City Council, Boards and Commissions, and the public for future community redevelopment. This will include updates to major sections of the comprehensive plan outlined in the Request for Proposal (RFP}. A subcommittee, consisting of Mayor Peterson, Planning Commission Chair Szurek, Community Development Director Bob Streetar, City Engineer Kevin Hansen and City Planner Jeff Sargent reviewed the proposals submitted by Bonestroo, Short Elliott and Hendrickson, Inc. (SEH) and URS. The unanimous consensus of the group was that Bonestroo would be the best firm for the City's Comprehensive Plan Update because of their experience in the first ring suburbs, their experience working directly with the City of Columbia Heights, and their exceptional staff assigned to the project. Therefore, the subcommittee recommends the City Council to approve the professional services agreement submitted by Bonestroo for the 2008 Comprehensive Plan Update. RECOMMENDED MOTION: Move to approve the professional services agreement for Bonestroo for the City of Columbia Heights' 2008 Comprehensive Plan Update. Attachments: Professional Services A regiment from Bonestroo COUNCIL ACTION 37 Professional Services Agreement Bonestroo TH115 [5 AEI AGREEMEtdT, effective on 1u1~23, 2007 between the City of Columbia Heights ("Client") and Bonestroo, Inc. ("Consultant") for professional technical services. Client and Consultant agree as follows. 1. Project Description And Understanding The "Project" is a Comprehensive Plan Update for the Client as described in Appendix B. 2. Consultant's Serviees Scope of Basic Services The Consultant will provide Basic Services as outlined in Appendix B. Supplemental Services The Consultant may provide Supplemental Services (services authorized by the Client which are not included in Basic Services} as described in Appendix B. Consultant will furnish an estimate of the cost for Client-requested Supplemental Services for the Client's written approval prior to commencement of the work. 3. Compensation Payment for Basic Services For the Basic Services outlined in Appendix B, the Client will pay the Consultant as follows: The lump sum of $49,300, which includes Reimbursable Expenses. Reimbursable Expenses are estimated at $2,500. See Appendix B for an estimated breakdown by phase. This cost estimate is based on the City providing: • Electronic copies where available of existing plans, ordinances and studies relevant to the planning process. • Digital parcel or ownership data, as available • Notification, mailings, and meeting invitations to the Planning Commission, City Council and public. • Reproduction of materials for distribution to the Planning Commission, City Council and public. Consultant will work closely with the City to manage costs. Strategies far containing costs will include: • CitSi staff reproduction of meeting materials • Internet-based public communication efforts • Joint meetings with Planning Commission and City Council. Pavment for Sufor Supplemental Services For Supplemental Services authorized by the Client and performed by the Consultant, the Client will pay the Consultant on an hourly basis, plus Reimbursable Expenses. As an alternative if agreed to by bath parties, the Client will pay the Consultant on a lump sum basis where the amount is negotiated between the two parties. Billing Rate Schedule Consultant's hourly charges will be based on the Billing Rate Schedule attached as Appendix C. 4. Standard Terms and Conditions The Standard Terms and Conditions attached as Appendix A are incorporated in this Agreement. 5. Preliminary Schedule Both the Consultant and the Client will put forth reasonable efforts to complete their respective duties in a timely manner, according to the preliminary Project Schedule attached as Appendix D. Because the Consultant's performance must be rendered with due diligence and be governed by sound professional practices, the Consultant is not responsible for delays occasioned by factors beyond its control. Public Sector- no design or construction 38 Please have both copies of this agreement signed by Columbia Heights' authorized representative(s) and return one copy to Tina.Goodroad as notice to proceed. IN WITNESS WHEREOF, the parties hereto have made and executed this .Agreement as of the day and year first above written. CONSULTANT: BONESTRO0, INC. B ~ ~ ~~~ Y David 0. Loskota, Contracts Officer Date ~~ b d~ _ CLIENT: CITY OF COLUMBIA HEIGHTS By (Signature) (Printed name and tit/e) Rate And by (Signature) (Printedname and title) Date Public Sector- no design ar construction 39 Appendix A . Standard Terms and Conditions Section 1. Consultant's Services Consultant shall act as the Client's agent only as provided for within this Agreement. Section 2. The Client's Responsibilities The Client shall: 1} Provide full information as to its requirements for the Project Client agrees to pay any undisputed portions of an invoice. No deductions shall be made from the Consultant's compensation except as may be determined by mediation, arbitration, litigation or other dispute resolution mechanism to which the Consultant is a party. 3.3 Suspension of Work If the Client fails to make payments when due or otherwise breaches this Agreement, the Consultant may suspend work after providing five days notice to the Client. The Consultant will not be liable for any costs or damages resulting from such a suspension of work. 2} Furnish to the Consultant, prior to any performance by the Consultant under this Agreement, a copy of any planning standards which the Client shall require the Consultant to follow in the conduct of its services for the Project. 3) Place at Consultant's disposal all available written data in the possession of or readily available to the Client and pertinent to the Project, including existing reports, plats, surveys, contour mapping, utility mapping, record plans, wetlands, land-use, and zoning maps, borings and other data useful to the Consultant in the performance of its services. 4) Provide access to the Project site and make all provisions for the Cansultant to enter upon public and private lands as required by the Consultant to perform its services. 5} Designate a single person to act as the Client's Representative with respect to the Consultant's services. Such person shall have complete authority to transmit instructions, receive information, and interpret and define the Client's policies and decisions with respect to services covered by this Agreement, subject to Client's governing body approval when required by law. 6) Fumish, or instruct the Consultant to provide at the Client's expense, necessary "Supplemental Services" as may be provided for i~~ this Agreement, or other services as they maybe required. In performing its services, the Consultant may rely upon the accuracy and completeness of al! Client-provided information. Section 3. Compensation 3.1 Payment For Reimbursable Expenses, Unless otherwise provided, in addition to consulting fees, the Client will pay the Consultant for Reimbursable Expenses on the basis of the Consultant's cost plus 10%. Although not a complete list, examples of Reimbursable Expenses include: project-specific printing, duplicating, tabs and indexes; testing; mileage; travel and per-diem expenses of the Consultant for out•of-town trips required for the Project; long distance telephone calls and faxes as required to expedite the work; postage and delivery charges; any new taxes, fees or costs imposed on the Consultant's services (such as sales taxes} after the date of this Agreement; and out-of-pocket expenses incurred directly for the Project. 3.2 Obiedions to Invoices/No Deductions It is important far the Cansultant to be promptly informed of problems. If the Client objects to any portion of an invoice, the Client shall notify the Consultant in writing within twenty days of the invoice`s receipt. The 3.4 Progress Payments The Client will make progress payments to the Consultant in proportion to services performed, as reasonably estimated by the Consultant. The Consultant will invoice the Client monthly during the progress of the work. The Client shall pay each properly documented invoice of the Consultant within 30 days after the Client's receipt of such invoice. Client may not reserve as retainage any portion of a payment due under this Agreement. 3.5 interest/Collection Costs The Client agrees to pay the Consultant 1.5% per month interest on all invoices of the Consultant, with interest beginning to accrue 30 days after the date, of the invoice. If the Minnesota Prompt Payment Act (Minn. Stat. Sect. 471.425) requires a higher rate of interest, that rate shall apply. If the Client fails to pay Consultant all amounts owing pursuant to the terms of this Agreement, the Client agrees to pay all casts of collection, including reasonable attorney's fees, in addition to all other amounts due under this Agreement. Section 4. General Considerations 4.1 Standard of Care The Consultant shall exereise the same degree o€ care, skill and diligence in the performance of its services as is ordinarily exercised by members of the profession under like circumstances. Nothing in this Agreement, or otherwise prepared as a result of the Project, shall modify the foregoing standard of care. The Consultant shall not be required to sign any documents that would result in it having to certify, guarantee or warrant the existence of conditions whose existence the Consultant cannot ascertain. 4.2 De-lays Both the Consultant and the Client vvill put forth reasonable efforts to complete their respective duties in a timely manner. Because the Consultant`s performance must be governed by sound professional practices, the Consultant is not responsible for delays occasioned by factors beyond its control or that could not reasonably have been foreseen at the time of preparation of this Agreement. 4.3 Opinions of Costs and Schedules Since the Consultant has na control over the cost of labor and material or aver competitive bidding and market conditions, the Consultant's Opinion of Probable Construction Cost and of Project schedules can only Public Sector- no design orconstructi°n 40 be made on the basis of experience or qualifications as a professional Consultant. The Consultant does not guarantee that proposals, bids, actual Project costs or construction schedules will not vary from Consultant's opinions or estimates. 4.4 Insurance 4.4.1 The Consultant agrees to maintain a professional liability insurance policy for negligent acts, errors or omissions in an amount of at least $4,000,000 per claim and $4,000,000 annual aggregate, on a claims-made basis, as long as such insurance is reasonably available under standard policies at rates comparable to those currently in effect. The Consultant will not cancel the insurance until thirty days after providing the Clientwritten notice. 4.4.2 The Consultant shall maintain: 1) Statutory workers compensation and employers' liability insurance coverage. 2) Comprehensive general liability insurance coverage of not less than $1,000,000 and automobile liability insurance coverage of not less than $1,D00,000 combined single limit. 4.5 Use of Instruments of Service Documents (including Digital Data) prepared by the Consultant, such as drawings, specifications and reports ("Consultant Documents") are instruments of the Consultant's professional services, and not products. The Consultant Documents are prepared for a specific Project and may not be used by the Client for other Projects. For health and safety reasons, the Client agrees it will not use the Consultant Documents (except for computer hydraulic or hydrologic modeling data) €or other purposes or provide them to other persons. If the Client violates this provision, it waives any resulting claims against the Consultant, and agrees to defend and indemnify the Consultant from any resulting claim or liability (including reasonable attorneys' fees}. 4.6 Digital Data 4.6.1 If included in Basic Services or Supplemental Services and as a convenience to the Client, the Consultant will furnish the Client with electronic data versions of certain varitten documents ("Digits! Data") provided in hard copy form. In the event of any conflict between a hard copy document and the Digital Data, the hard copy document governs. The Digital Data shall be prepared in the current software in use by the Consultant and is not warranted to be compatible with other systems or software. 4.6.2 Any Digital Data submitted by the Consultant to the Client is submitted for an acceptance period of 60 days ("Acceptance Period"). Any defects that the Client discovers during this period and reports to the Consultant will be corrected by the Consultant at no extra charge. For correction of defects reported to the Consultant after the Acceptance Period, the Client shall compensate Consultant on an hourly basis at Consultant's normal billing rates. The Client understands that the Digital Data is perishable and the Client is responsible for maintaining it. 4.7 Termination Suspension or Abandonment 4.7.1 The Client or the Consultant may terminate or suspend this Agreement for substantial non-performance by the other party, including without limitation tl,e failure to make payments in accordance with this Agreement The party terminating or suspending this Agreement shall give seven days written notice to the other party. 4.7.2 If the Project or the Consultant's services are suspended for more than 90 days, the Consultant may terminate this Agreement upon seven days written notice to the Client The Consultant shall have no liability on account of a suspension by the Client. If a suspended Project is relnStateU, all equltaule tlU~U~UUeut tv uir ~..uuauuan~o wmpen.,...w,. may be necessary. 4.7.3 In the event of termination or suspension permitted by this Agreement, the Client shall compensate the Consultant for services performed prior to termination, suspension or abandonment and for services directly attributable to the termination, suspension or abandonment itself, together with Reimbursable Expenses. If the Client properly terminates Consultant for cause, Client may withhold from Consultant's compensation those damages directly attributable to the cause of the termination. 4.8 Disoute Resolution 4.8.1 In an effort to resolve any conflicts that arise out of the services under this Agreement, all disputes between the Client and the Consultant arising out of or relating to this Agreement shall be submitted to nonbinding mediation prior to commencing arbitration or litigation. The Mediator's fee shall be shared equally and mediation shall proceed only at a place where arbitration or litigation is proper. Mediation shall not be a condition precedent to arbitration or litigation if a party refuses to make reasonable arrangements for a mediation within 20 days of demand by the other party. If a dispute relates to or is the subject of a lien arising out of the Consultant`s services, the Consultant may proceed in accordance with applicable law to comply with the lien notice or filing deadlines prior to reso{ution of the matter by mediation or arbitration. 4.8.2 Unless the Client and the Consultant mutually agree otherwise, all claims, disputes, and other matters in question arising out of or relating to this Agreement which are not resolved by mediation and where the amount in controversy is less than $1,000,000, shall be decided by binding arbitration in accordance with the then-most current Construction Industry Rules of the American Arbitration Association. The arbitrators will not have jurisdiction, power or authority to consider any claim or dispute: (a) where the amount in controversy is more than $1,000,000 (exclusive of interest and costs); (b) when the demand for arbitration is made after the date when a court action would be barred by any applicable statute or period of repose or limits#ions; or (c) when the claim or dispute is a claim for contribution or indemnity arising out of a claim by a third parry who does not consent to joinder in arbitration. 4.8.3 In the event of litigation or arbitration arising from or related to the services provided under this Agreement, the prevailing party is entitled to recovery of all reasonable costs incurred, including staff time, court costs, attorney's fees and other related expenses. 4.8.4 If the Consultant or the Client intends to assert a claim against the other as a result of a dispute with a third parry, the claiming party. shall notify the other party as soon as possible, and in any event prior to resolving the dispute with the third party. 4.8.5 So that any claims of the Client may be intelligently addressed by the Consultant, the Client agrees to make no claim for professional negligence against the Consultant unless the Client has first provided the Consultant a written certification signed by an independent professional licensed in the state in which the Project is located and currently practicing in the same discipline. The certification shall specify every act or omission of the Consultant that is a violation of the applicable standard of care and the basis for the certifier's opinion(s). This cert'rficate shall be provided no fewer than 30 days prior to instituting arbitration or suit Public Sector- no design orconstruction 41 4.8.6 Causes of action between the Consultant and the Client relating to acts or failures to act shall be deemed to have accrued and the applicable statute of limitations shall commence to run not later than the date of substantial completion of a Project. 4.9 Hazardous Substances The Consultant's scope of services does not include any services related to hazardous or toxic materials, including asbestos and PCBs. If it becomes known that such materials may he present at or near a Project that may affect the Consultant's services, the Consultant may suspend performance of its services, without liability, and will assist the Client to retain appropriate consultants to adequately identify and abate such materials so that Consultant's services may resume. Nothing in this Agreement shall be construed to require the Consultant to: {a} assume the status of a generator, scorer, transporter, treater, or disposal facility as those terms appear within the Resource Conservation and Recovery Act, 42 USC 6901 et seq, as amended, or within any state statute governing the generation, treatment, storage and disposal of waste; or (b) arrange for the transportation, treatment, or disposal of hazardous substances, as described in the Comprehensive Environmental Response, Compensation and Liability Act, 42 USC 9601, et. seq, as amended. The Client agrees to defend, indemnify and hold harmless the Consultant, its employees, subcontractors and agents from all claims, losses, damages liability and costs, including attorney's fees, relating to or arising out of hazardous or toxic materials at or near a Project. 4.10 Governing_Law This Agreement shall be governed by the laws of the state in which the Project is located. 4.11 Integration This is an integrated Agreement and it supersedes all prior negotiations or agreements between the parties. It shall be modified only by a written document signed by the party sought to be bound. The provisions of this Agreement are severable, and if any provision is found to be unenforceable, the remaining provisions continue to be valid, and the unenforceable provision shall be reformed with a valid provision that comes as near as possible to expressing the intention of the unenforceable provision. 4.12 Assignment and Waiver Except for the Consultant's use of necessary consultants, the Consultant and the Client shall not assign or delegate their respective obligations .~_e_ n ..+1..,..+ +k.. written rnneant of tleP nthar party. under' uus HgIee1118111 Vvlulvut u~c w'+~~«~-~~ ~"~~"-~•~ "~ which consent shall not be unreasonably withheld. The waiver of any term or condition or breach thereof by either party shall not constitute a waiver of any other term or condition or breach thereof. Section 5. Liability Having considered the potential liabilities that exist during the performance of the Consultant's services, the benefits of the Project, the Consultant's fee for its services, and the promises contained in this Agreement, the Client and the Consultant agree that risks should be allocated in accordance with this section, to the fullest extent permitted by law. 5.1 Indemnification The Consultant and the Client each agree to defend and indemnify each other from liability for claims, losses, damages or expenses (including reasonable attorney`s fees) to the extent they are caused by their negligent acts, errors or omissions relating to this Agreement. In the event the claims, losses, damages or expenses are caused by the joint or concurrent negligence of the Consultant and the Client, they shall be borne by each party in proportion to its own negligence. 5.2 Limitation of Liability The aggregate liability to the Client of Consultant, its employees, and anyone else for whom they may be legally liable, for any and all claims, losses or damages arising out of any Project or this Agreement for any cause shall not exceed the insurance proceeds available at the time of settlement or judgment. This limitation shall apply regardless of the cause of action or legal theory pled or asserted. 5.3 Consequential Damages Neither the Client nor the Consultant shall be liable to the other for any consequential damages incurred due to the fault of the other or their agents. Consequential damages include, but are not {invited to, loss of use and loss of profit. **,rt~*~****t~~*m*x,atr~~,r,t*~***,axa t~~,r,r~wt*t*,r*:r~:r Public Sector-no design or construction 42 Appendix B Consultant`s Services 1. Project Description/Understanding/Approach Columbia Heights is seeking professional services to assist in completing its Comprehensive Plan update. The previous plan was completed 2000. The City is at a pivotal point in its planning history with abundant redevelopment activities underway through City initiatives that started in 2002. It will be important to create a plan that will continue to support these efforts and identify additional redevelopment efiforts to maintain Columbia Heights as a vital place to live, work, shop, and recreate. The planning process will focus on updating the Comprehensive Plan to meet the Metropolitan Council's minimum requirements. ft will also focus on reviewing and updating current goals and policies to fit the desires of the City Council, Boards and Commissions, and the public for future community redevelopment. This will include updates to major sections of the comprehensive plan outlined in the RFP. Consultant ("We")will incorporate a focus to identify pedestrian transit ways and bike ways into the plan and coordinate work with grant application efforts for a complete Pedestrian and Bike Plan. We will prepare required water resource plans, focusing on the surface water management plan and other areas as required by the Metropolitan Council and City needs. The plan will include an updated Housing Plan that provides specific action tips and financial strategies to achieve short and long range housing goals. This will include evaluating demographic research already completed by City staff and reviewing additional data relevant to complete the task. Each chapter wild link important goals and policies identified by the City Council, Boards and Commissions, and public. We will also seek and identify emerging issues and trends, within each chapter, affecting Columbia Heights as a first ring community. As an extension of goals and policies, identifying trends will help set priorities far the City to take advantage of new trends, To plan effectively we must clearly understand current conditions, understand how current conditions came to be (influences), and rational future projection (trends). To comprehend these areas, we will complete a unique "background" assessment looking at Columbia Heights' past, present, and future. In looking at the past, we wil(identify "how we became what we are," looking specifieally at the years since 2000, We will then look toward the regional setting to illustrate how the regional context has and will continue to affect Columbia Heights and the issues and opportunities facing it. Finally, we will look at the present conditions and emerging trends in a context of a dynamic and complicated region, This will explore how the City evolved and factors of demographics, racial diversification, technology, aging facilities and housing stock/turnover, accessibility, character, approaches to redevelopment that have shaped the community and identify principles to help guide the community into the future. This effort wil! serve as the "background" step and kick-off for the Comprehensive Plan update with presentation to the City Council; Board and Commissions, and public. This type of analysis is appropriate for first ring communities with a wealth of history and planning efforts already underway and unique issues within the region. The planning process will seek input and use information gathered from the City Council and Boards and Commissions. We understand many of these meetings will be held }°ointly to maintain and efficient process. Community participation is also an important and essential component of the planning process. We propose three community forums at key points of the process: public Sector- no design or construction 43 1. Issue and visioning 2. Goals and polices ~ n ~, ___..:'.. ,. +,..,.,.I. +h., ..~ ~t,G~ inns ~4 nn tha i inrlatA 3. HILefIIdLIVCJ W ~CCI~ luC Nuunt, n~Nu~ vn un.. ut..+....- A final open house will be planned to share the draft document prior to the Planning Commission public hearing. We are open to scheduling these public meetings concurrently with joint meetings to maintain efficiencies. A community participation component will be including residents of all cultures into the planning process. It is often necessary to seek out this input in arenas that they meet, rather then expecting them to attend "city" meetings. We added to our work program an effort to find interpreters and groups/meeting/events to gain the input of ail groups. 2. Basic Services Work Program The Client ("City")will use the City Council and Boards and Commissions for main source of input into the update process, We will use joint meetings to share/receive information efficiently, This group will support broad community participation and input throughout the process, Its recommendations will be summarized and presented to the City COURCII. We anticipate extensive City staff participation, Staff members possess the necessary expertise and first-hand knowledge of the City and its technical details to drive effective decision-making. We planned for weekly meetings or teleconferenceswlth City staff to coordinate and discuss progress. We propose five phases as a framework for the Comprehensive Planning process. The attached Process Diagram shows the phases in more detail. PHASE 1: iNiiiAii~N~ INiPE~iTfDRY, AND AI~~".LY~IS This phase includes initiating the process with the City Council and Boards and Commissions in a public open house setting to introduce the public to: ® The benefits of the comprehensive plan process Requirements Now the public can 6e a voice in the plan This phase also includes collecting and analyzing background data, base mapping, and preparing a background report. The background report will look atthe Past, Present, andFutureof Columbia Heights, focusing on issues and emerging trends. This background report becomes an important tool to help set the stage for participants in the visioning process, 1.1 lO1NT INITIATION MEETING Bonestroo will present the planning process to the City Council, Boards and Commissions, and the public and answer any questions. We will review the roles and expectations of the City Council, Boards aril Commissions, consultant, and City staff. 1.2 DATA COLLECTION AND ANALYSIS Data wilt be collected aid analyzed in the following areas: History Land Use Redevelopment Plans and Activities Demographics Housing Employment and Economic Data Water Resources Existing Plans and ordinances Public sector - no design or construction 44 1.3 BASE MAPPING Consultant will prepare base maps of the city, including existing land use, regional context, zoning, and others as ~a~o«ar„ rr, ~mr~arctanrl anti communicate relevant issues. These visuals are an important tool in the public ~~..~~..~.,,r .., ....,....___.._ _._ --. participation process. 1.4 BACKGROUND REPORT This phase will conclude with a Past, Present, and Future background report. Consultant will #acilitate a joint City Council and Boards and Commissions meeting to present the report. Deliverable.' Past, Present, and Future Report PHASE 2: VISION AND GOAL5 2,7 PUBLIC PARTICIPA7IDN/VI510NING SESSIONS Public participation is central to the comprehensive planning process. A Comprehensive Plan update is an opportunity for the community to come together, discuss, and provide input regarding: ~, Where the City has been e Where the City is today The vision that defines the quality of the community residents want to live in by the year 2030 This effort must be community based and include a broad spectrum of community input. City Wide Visioning Session(s): We propose three visioning sessions. Sessions are open to the public and include a wide scope of participation. 2.2 COMMUNITY FORUM #7 A community meeting will be held to conduct a Vision and issue Forum. The session(s) will incorporate the SWOT process, which will help gain insight into the City's strengths, weaknesses, opportunities, and threats This process wil{ include: ~. ®Discussion by all participants Sharing information to large group Selecting the top three to four choices in each discussion eategory Generated ideas will be voted on by all participants and tallied. Responses will be summarized into vision/issue statements that wiN be directed toward a set of topic areas that can be used in developing alternatives, plan policies, and implementation strategies. Topic areas could inciude: .. Land tJse and Growth ~. Transportation Housing Commercial areas/redevelopment ~: Parks and Trails s. Community Facilities and Services Working with the City, we wi[I advertise the meetings with the widest possible scope of participation. This includes reaching out to various cultural groups, We will also work with the City to meet various cultural groups within their own setting or group and activities (with interpreters} to give ample opportunity for their participation, Public Sector-no design or construction 45 Other communication types will be created to assist the City's communication with the public. This can include active links to the City's web site with updated information and local newspaper and/or City newsletter articles with updated information on the process. 2.3 PREPARE VISION AND GOAL STATEMENTS Consultant will prepare an updated set of vision and goal statements, using input from the selected Vision and Issue Forum and review and input from the City Council and Boards and Commissions. 2.4101NT PLANNING COMMISSION/CITY COUNCIL REVIEW The Planning Commission and City Council will review the vision and goal statements in a joint meeting. Before moving to Phase 3, both groups must approve the vision and goal statements. De/iverab/e.~ Final Vision and Goals PHASE 3: ALTERNATIVES Consultant will develop up to three draft alternative land use concepts for achieving the Vision and Goofs. 3.7 PREPARE DRAFT ALTERNATIVES Up to three concept alternatives will be designed to achieve the vision and goals within the context of the Comprehensive.Plan, These alternatives will illustrate redevelopment opportunities. This will include identifying additional areas and possible redevelopment alternatives. Developing alternatives will focus primarily on visual representations including: a Mapping Hand drawings Graphics Where necessary, narrative text will communicate the intent of the different alternatives. Consultant will work with City staff to produce the most effective means to communicate alternative concepts to the Task Force and the public. 3.2 REVIEW OF ALTERNATIVES The City Council and Boards and Commissions will meet to review and further develop the alternatives. City staff will assist Consultant in collecting feedback on the three alternatives 3,3 REVISE ALTERNATIVES After this meeting Consultant will incorporate relevant feedback and develop a set of final alternatives. A memorandum will be produced summarizing the design process and input collected. 3.4 COMMUNITY FORUM #2 A Community Forum will be held to present all three alternatives in a public open house format. City staff will assist Consultant in collecting and summarizing public input on the alternatives far presentation to the City Council and Boards and Commissions. 3.5 ALTERNATIVE APPROVAL-PLANNING AND ZONING COMMISSION AND CITY COUNCIL After all input is synthesized, the Planning and Zoning Commission and City Council will recommend a preferred alternative, De/i~erab/e.~Preferred Alternative Public Sector - no design or construction 46 g PHASE 4: PUBLIC DRAFT FOR REVIEW Consultant will prepare a draft comprehensive plan for review by the City Council and Boards and Commissions. r. ~ _~ ~___..ta_.,,., ..u ., ;~+ ~c+,~ ~+~ff en~irh u,hmittinn tha nlan to AfItACPnt IUCISdICtIOnS once the public dram Is accepteu, I.UII~Ulldlll VVIII ASSu1. ~.ity stun vriu~ ~uN"^«...y "'~ t.,,~•. -_ __.~_.__ _ ~ for comment. 4.1 PREPARE PUBLIC DRAFT FOR REVIEW Consultant will prepare the draft comprehensive plan consisting of the following sections: ® Executive Summary Background Vision and Goals • Land Use • Housing s Transportation - Transit - Bicycle and Pedestrian Facilities - Aviation Water Resources - Wastewater - Water Supply Plan - Surface Water Management a Community Facilities e Parks, Open Space & Natural Areas P Economic Development Intergovernmental Coordination ® Urbanization and Redeve{opment Areas ® Implementation 4.2 CITY COUNCIL AND BOARD AND COMMISSION REVIEW Consultant tn~ill present the draft plan to the City Council and Boards and Commissions for review and comment. 4.3 REVISIONS Consultant will make any necessary changes to the draft plan based on Task Farce feedback. Consultant will produce 20 bound, color copies of the draft plan, unbound reproducible original copy, and a CD-ROM with all relevant files in a format acceptable to City staff. 4.4 JOINT PLANNING CITY COUNCIL AND BOARDS AND COMMISSION WORKSHOP Consultant will present the draft plan to the City Council and Boards and Commissions in a joint workshop setting. This workshop will bean opportunity to collect feedback and inform the City Council and Boards and Commissions Plan in a hands-on, informal setting using maps, graphics, and other tools. Based on the feedback collected at the meeting, relevant changes will be made to the plan, 4.5 COMMUNITY FORUM 3 The next meeting will be a Community Forum. Consultant wilt present the public draft in an open house setting. City staff will assist Consultant in collecting and summarizing public input on the alternatives for presentation to the Planning Commission and City Council ~~ ~a Public Sector - no design or construction °'~.:~:~ 4.6 PUBLIC DRAFT APPROVAL-PLANNING COMMISSION PUBLIC HEARING Consultant will present the public draft to the Planning Commission for their recommendation. 4.~' PUBLIC DRAFT' APPROVAL- CITY COUNCIL The City Council will meet to accept the draft plan for distribution to reviewing jurisdictions as mandated by the Metropolitan Council. De/iverab/e.• Draft Plan for distribution to Metropolitan Council and adjacent jurisdictions and schoo{ districts PHASE 5: METROPOLITAN COUNCIL REVIEW AND FINAL DRAFT P4AN 5.1 SUBMIT PLAN TO JURISDICTIONS Consultant will work with City staff on submitting the plan to adjacent jurisdictions. 5.2 METROPOLITAN COUNCIL MEETINGS Consultant will attend the Metropolitan Council Community Development Committee. 5.3 METROPOLITAN.000NCILMEETlNGS Consultant will attend the Metropolitan Council Meeting. 5.4 PREPARE FINAL PLAN Consultant will work with City staff to produce a final draft that incorporates all necessary changes based on input from adjacent jurisdictions and the Metropolitan Council Review process, Consultant will produce 35 copies of the Final Plan and a CD-ROM including relevant files in a format acceptable to City staff. 5.5 F9NAL PLAN APPROVAL- PLANNING COMMISSION Consultant will present the final plan at a public hearing of the Planning Commission. 5.5 FINA! PLAN APPROVAL- CITY COUNCIL After a recommendation from the Planning Commission, Consultant will present the final plan to the City Council. As directed by the City Council, any necessary changes will be made to the final plan document before adoption. After council adoption, Consultant will turn over the final draft of the plan for distribution by the City. De/iverab/e.• Final Comprehensive Plan COMMUNICATION EFFORTS This process hinges on the City Council's decisions. However, it is driven by public input. Keys to a successful planning process will be: « Efforts to engage the public « Encouraging participation in the dialog at each public meeting Seeing that they are informed about what stage the planning process is in and that they are familiar with the work completed to date A communication effort will follow the Council decisions at the end of each phase. These efforts will use a various means of public communication including newsletters, email distribution lists, direct mailings, and local newspapers. Preferably, Consultant could provide information for the City website devoted solely to the comprehensive planning process, Experience has shown that this is an increasingly effective public communication method. The communication efforts correspond directly to the City Council's decision-making steps. 4s 11 Pu61ic Sector-no design or construction Communication efforts will correspond to the following events: s Initiating the Planning Process ® City Council review of the Background Report e Reviewing the Vision and Goal statements (accumulated from the public participation and visioning sessions} Selecting a Preferred Alternative a Approving the Draft Plan for Metropolitan Council Review g Adopting the Final Plan Besides these specific events, the public will be kept informed ofi the process and be invited to participate, and have access to relevant documents through the City's website. 3. Pre-Authorized Supplemental Services Consultant is pre-authorized to perForm or furnish, without requesting or receiving specific advance authorization from the Client, the Supplemental Services of the types listed below. 1. Making revisions in documents when such revisions are: 1.1. Inconsistent with approvals or instructions previously given by the Client; 1.2. Required by the enactment or revisions of codes, laws or regulations subsequent to the preparation of such documents; 1.3. Due to changes required as a result of the Client's failure to render decisions in a timely manner; or 1.4. Due to any other causes beyond the Consultant's control. 4. Other Potential Supplemental Services If authorized by the Client, the Consultant may provide the following Supplemental Services. 1. Attendance at neighborhood meetings in excess of those noted in Basic Services. 2. Expanded public participation efforts for a variety of ethnic and cultural groups. 3. Attendance at and assistance ~nrith public hearings in excess of those noted in Basic Services. 4. Assistance with easements. 5. User rate studies. 6. Preparation of applications for funding assistance 7. Hydraulic and hydrologic studies, such as: 7.1. Hydraulic analysis benefiting an area greater than that of the Project. 7.2. Stormwater, surface water and groundwater quality analyses. 8. Assisting the Client or its representative in connection with mediation, arbitration, litigation or other proceedings involving the Project, including preparing to testify and testifying as an expert witness. 9. Providing any other service not otherwise included in Basic Services or not customarily furnished in accordance with generally accepted professions! technical practice. 4s 12 Public Sector - na design or mnstrudion 5. Campensatian Task Descri tion Total Cast Phase 1: initiation, Inventor ,and Anal sis Task 1.1: Joint Initiation Meetin Task 1.2; Data Collection and Analysis Task 1.3: Base Ma in and Re Tonal Plannin Task 1.4: Pre aration of Back round Re ort Phase 1 Subtotal $9,400 Phase 2: Vision and Goals Task 2.1: Public Partici ationiVisionin Sessions Task 2.2; Community Forum #1 Task 2.3: Pre are Vision and Goals Task 2.4: Joint Planning Commission/Ci Council Review Phase 2 Subtotal $4,800 Phase 3: Alternatives Task 3.1: Pre are Draft Alternatives Task 3,2: Review Alternatives Task 3.3: Revise Alternatives Task 3.4: Community Forum #2 Task 3.5: Alternate A royal Phase 3 Subtotal $7,500 Phase 4: Prepare Public Draft for Review Task 4.1: Prepare ubiic draft for review Task 4.2: Plannin Commission/Ci Council Worksho Task 4.3: Revisions Task 4.4: Joint Worksho Task 4.5: Communi Forum #3 Task 4.6: Public Draft A. proval-Plannin and Zonin Task 4.7: Public Draft A royal- Ci Council Phase 4 Subtotal $25,500 Phase 5: Met Council Review and Final Draft Plan Task 5.1: Submit Plan to Jurisdictions Task 5.2: Met Council Meetin s Task 5.3: Metro olitan Council Meetin s Task 5.4: Pre are Final Plan Task 5.5: Final Plan A proval- Planning and Zonin Task 5.6: Final Plan A proval-City Council Phase 5 Subtotal $2,500 Grand Total $49,300 nntinnal(oublicoutreach to ~ariousethnicgroups) ,~2,50~ 50 13 Public Sector - no design or construction Appendix C YEAR Billing Rate Schedule Classification Hourly Rate Senior Princi al $133.04 - $189.00 Princi ai 127.00 - __175.00 S ecialist * 103.00 - 215.00 Pro'ect Mana er 122.00 - 160.00 Senior Engineer /Scientist /Architect !Landscape Architect /Planner 105.00 - 140.00 Architect ~ Landscape Architect 105.00 __ 140.00 En ineer Planner 88.00 - 129.00 Environmental Scientist 88.00 - 114.00 Desi ner GIS Landsca a Desi ner Gra hits 84.00 - 108.00 En ineering Technician 73.00 - 108.00 Pro'ect Technician 49.00 - _ 72.00 Field Su ervisor 86.00 - 150.00 Crew Chief 75.00 - 108.00 Ins ector T1.00 - 99.00 nician h Surve Tec 52.00 - 72.00 _ _ GPS Surve E ui ment _ $38.00 nt Total Station E ui me 28.00 _ GlS Workstation E ui ment 22.00 GPS Submeter Unit (per use) 80.00 Flow Meter (er week) 200.00 Air Detection E ui ment (per half da) 25.00 * Specialist: E;,perts in highly technical disciplines including Registered Land Surve ors, Principal Planners and Market Analysts. These rates are adjusted annually in accordance with the normal review procedures of Bonestroo, Inc. 51 14 PubEic Sector-no design or consffudian CITY COUNCIL LETTER Meeting of July 23, 2007 AGENDA SECTION: CONSENT ORIGINATING DEPARTMENT: CITY Fire MANAGER NO: APPROVAL ITEM: Rental Housing BY: Gary Gorman BY: LICenSeS NO: DATE: July 16, 2007 DATE: Approval of the attached list of rental housing license applications, in that they have met the requirements of the Residential Maintenance Code. RECOMMENDED MOTION: Move to approve the items listed for rental housing license applications for July 23, 2007. COUNCIL ACTION: 53 List of 2007 Rental Licenses to Approve Occupany I.D. Property Owner Name Property Address 10054 10500 10502 10504 10508 20176 20282 20500 30008 30090 30184 30186 30500 30502 30504 34049-NC 20282 10110 20214 20250 10050 10008 20283 12221 15009-NC 30010 20099 12032 12161 30119 30121 30039 30005 30132 20067-NC 10043 20072 20043 MDC 2000 Attn: Doug Wahl 3820 Tyler Anoka County Community Action Prograrr4349 5TH Anoka County Community Action Prograrrt3928 T yier Anoka County Community Action Prograrrxt304 5TH Anoka County Community Action Prograrrt~411 MAIN Koke Properties 4108 MADISON Guardian Property Management 3731 PIERCE Anoka County Community Action Prograrr4641 POLK Columbia Court Town Homes 841 41ST CNJI, LLC 3801 VAN BUREN Lynde Investment Company, LLP 5131 UNIVERSITY Lynde Investment Company, LLP 5141 UNIVERSITY A.C.C.A.P. 3932 CENTRAL Anoka County Community Action Prograrrt~641 Tyler Anoka County Community Action Prograrr4647 Tyler Nancy Abbott 1429 42ND Hytham Abdel-Karim 3731 PIERCE Joe Adams 410 42ND Shacker Alnajjar 4637 PIERCE David Anderberg 976 44 1/2 Pam Bradshaw 1121 39TH Heather Callier 4033 ARTHUR Ita Ekah 3801 PIERCE William Field 4433 MAIN Donna Frank 4148 Tyler Vicente Gavilan 3819 i~iAiN Jay Harris 1065 POLK Dan Krick 4333 WASHINGTON Dorothy Langie 4527 Taylor Anwaar Minhas 4628 Tyler Anwaar Minhas 4634 Tyler Joanna Rocha 501 MILL JoAnne Schaefer 4220 4TH Maumer Sekizovic 970 44TH Willard Thorp 1411 37th Bernard Ubl 3707 JOHNSON Stanley Van Blaricom 4513 Taylor Gregory Wilson 1324 CIRCLE TERRACE 07/17/2007 09:25 54 Page 1 CITY COUNCIL LETTER Meeting of: July 23, 2007 AGENDA SECTION: ORIGINATING DEPT.: CITY MANAGER NO: License Department APPROVAL ITEM: License Agenda BY: Shelley Hanson DATE: NO: DATE: July 18, 2007 BY: BACKGROUND/ANALYSIS Attached is the business license agenda for the July 23, 2007 City Council meeting. This agenda consists of applications for Contractor licenses for 2007. 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: Mohan: Move to approve the items on the business license agenda for July 23, 2007 as presented. COUNCIL ACTION: 55 TO CITY COUNCIL July 23, 2007 *Signed Waiver Form Accompanied Application 2007 BUSINESS LICENSE AGENDA CONTRACTORS LICENSES Bldg *Barnes Plumbing Co Inc 3923 Washington St, Mpls $60 *Hutton & Rowe Inc 15790 Jarvis St NW, Elk River $60 *Stieg Mechanical Inc 19520 Stieg Rd, Rogers *Voson Plumbing 1515-A 5`h St So. Hopkins $60 *Ridgedale Plumbing 3050 Carriage Dr, Medina $60 *Hendricks Mechanical 16730 Co Rd 6, Plymouth $60 *Copeland Bldg Corp 5300 Hyland Green Dr, Bloom. $60 *JE Dunn-North Central 9855 West 78`h St #270, Eden Pr $60 Ares Tree Service 636 39`'' Ave, Col Hts $60 Carroll Excavating 34188 Puna St NW, Princeton $60 *McGuire & Sons Plumbing 605 12`h Ave So, Hopkins $60 $60 ~s CITY OF COLUMBIA HEIGHTS FINANCE DEPARTMENT COUNCIL MEETING OF: July 23, 2007 STATE OF MINNESOTA COUNTY OF ANOKA CITY OF COLUMBIA HEIGHTS Motion to approve payment of bills out of the proper funds, as listed in the attached check register covering Check Number 122156 through 122349 in the amount of $ ....3,.1.14,899.32 These checks have been examined and found to be legal charges against the CITY OF COLUMBIA HEIGHTS, and are herby, recommended for payment. 57 ACS FINANCIAL SYSTEM CITY OF COLUMBIA HEIGHTS 07/19/2007 12:56:59 Check History GL050S-V06.74 COVERPAGE GL540R ******************************************************************************* * *** C O U N C I L * *** C O U N C I L * *** C O U N C I L * *** C O U N C I L ******************************************************************************* Report Selection: Optional Report Tit1e.......07/23/2007 COUNCIL LISTING INCLUSIONS: Fund & Account .............. Check Date .................. Source Codes ................ Journal Entry Dates......... Journal Entry Ids........... Check Number ................ Project.... Vendor ...................... Invoice ..................... Purchase Order .............. Bank ........................ Voucher .................... Released Date ............... Cleared Date ................ Include Exp{Rev Closing Entries thru thru thru thru thru 122156 thru 122349 thru thru thru thru thru thru thru thru N Run Instructions: Jobq Banner Copies Form Printer Hold Space LPI Lines CPI CP SP J COUNCIL 02 P4 Y S 6 066 10 Y Y 58 ACS FINANCIAL SYSTEM 07/19/2007 12 BANK VENDOR BANK CHECKING ACCOUNT CITY OF COLUMBIA HEIGHTS Check History GL540R-V06.74 PAGE 1 07/23/2007 COUNCIL LISTING CFIECK NUMBER AMOUNT NORTHEAST BANK 122156 2,000,000.00 AMERICAN BOTTLING COMPAN 122157 409.38 BELLBOY CORPORATION 122158 8,614.89 CENTERPOINT ENERGY 122159 22.24 CHISAGO LAKES DISTRIBUTI 122160 9,422.04 DEX MEDIA EAST LLC 122161 400.65 EMERGENCY AUTOMOTIVE TEC 122162 180.00 EXTREME BEVERAGE 122163 960.00 FIRST NATIONAL INSURANCE 122164 1,000.00 FLOORS NORTHWEST INC 12:2165 942.14 FSH COMMUNICATIONS, LLC 122166 56.10 G & K SERVICES INC 122167 200.87 GRIGGS-COOPER & CO 122168 478.21 GUTIERREZ/MANUELA 122169 125.99 JJ TAYLOR DIST OF MN 122170 55,883.84 KNUTSON/ELAYNE 122171 57.00 LOADER/REBECCA 122172 81.48 LOWRY CENTRAL BOWLERS 122173 323.60 MEDICINE LAKE TOURS 122174 2,112.00 MOELLER/KAREN 122175 62.70 PETTY CASH - JOANNE SAKE 122176 98.35 PETTY CASH - KAREN OLSON :L22177 200.00 PREMIUM WATERS INC 122178 21.75 QUALITY WINE & SPIRITS 122179 3,421.62 RAMNAUTH/VIDYA 122180 221.13 S & T OFFICE PRODUCTS IN 122181 82.96 SHAMROCK GROUP/ACE ICE 122182 1,484.87 SIETSEMA/JUDY 122183 32.50 ST PAUL FIRE & SAFETY SE 122184 60.00 STANISLOWSKI/OLIVE 122185 50.00 SYNOWCZYNSKI/STEVE 122186 28.50 WEIGMAN/DANA 122187 52.38 XCEL ENERGY (N S P) 122188 19,210.92 YOUNG/KATHY 122189 33.75 ALCORN BEVERAGE CO INC 122190 637.02 ANOKA COUNTY TREASURER 122191 525.00 ARCH WIRELESS/METROCALL 122192 128.12 ASFAW/MULAT 122193 207.85 BAKKEN/CHERYL 122194 30.00 BARNICK/ROBERT & PRISCIL 122195 380.00 BELLBOY CORPORATION 122196 2,413.40 CAPITOL BEVERAGE SALES L 122197 56,366.63 CERTIFIED APPLIANCE RELY 122198 50.00 CHISAGO LAKES DISTRTBUTI 122199 88.28 CITY OF COLUMBIA HEIGHTS 122200 136,954.15 CITY OF EAGAN 122201 180.00 CITY WIDE WINDOW SERVICE 122202 17.04 59 ACS FINANCIAL SYSTEM 07/19/2007 12 BANK VENDOR BANK CHECKING ACCOUNT CITY OF COLUMBIA HEIGHTS Check History GL540R-V06.74 PAGE 2 07/23/2007 COUNCIL :LISTING CHECK NUMBER AMOUNT COLUMBIA HEIGHTS ACTIVIT 122203 8,670.25 COLUMBIA HEIGHTS TRANSIT 122204 3,806.00 CREST VIEW ONDC 1 122205 18,048.00 DANIMAL DISTRIBUTING INC 122206 655.00 FAMILY FUN SHOWS 1'>2207 500.00 FARNER-BOCKEN 122208 22,083.59 FIELD/MATTHEW 122209 53.70 GENUINE PARTS/NAPA AUTO 122210 527.67 GRIGGS-COOPER & CO 122211 24,270.22 JOHNSON BROS. LIQUOR CO. 122212 69,809.51 JOHNSON'S OUTDOOR SERVIC 122213 700.00 LANDI/MARIA 122214 55.00 MOELLER/KAREN 122215 85.20 NEXTEL COMMUNICATIONS 122216 374.46 PATCHIN MESSNER & DODD I 122217 1,507.50 PETERSON/BRIAN 122218 23.60 PETTY CASH - LIZ BRAY 122219 28.40 PETTY CASH -KATHERINE GR 122220 48.50 PIONEER DRAMA SERVICES 122221 36.25 POSTAGE BY PHONE RESERVE 122222 6,000.00 QWEST BUSINESS SERVICES 122223 513.40 QWEST COMMUNICATIONS 1'>2224 96.22 RENTER/STEPHEN 1'1.2225 102.01 SCOTT/LARRY 122226 292.35 SHAMROCK GROUP/ACE ICE 122227 234.54 STICKLER/DOROTHY 122228 263.02 VERIZON WIRELESS 1'22229 38.52 VINOCOPIA INC 122230 1,641.75 WINE COMPANY/THE 122231 212.80 XCEL ENERGY (N S P) 1'22232 54.05 A M BEST COMPANY 1'?2233 2,139.90 AAA STRIPING SERVICE INC 122234 3,334.32 ABLE HOSE & RUBBER INC 1'>2235 49.75 ACCURINT 122236 131.50 ACE HARDWARE 122237 12.47 ALL SAFE FIRE & SECURITY 122238 830.53 AMERICAN CITY BUSINESS J 122239 69.00 AMERICAN LIBRARY ASSOCIA 122240 24.00 AMERIPRIDE INC 122241 39.68 ANOKA COUNTY ATTORNEY 1?.2242 68.40 ANOKA COUNTY HISTORICL S 122243 30.00 ANOKA COUNTY LIBRARY 122244 365.31 ANOKA CTY - CENTRAL COMM 122245 720.00 ASPEN MILLS, INC. 122246 447.38 ASSOC OF MN COUNTIES 1?.2247 100.00 ATLAS AUTO BODY, INC 122248 904.42 BAKER & TAYLOR 122249 3,501.84 60 ACS FINANCIAL SYSTEM 07/19/2007 12 BANK VENDOR BANK CHECKING ACCOUNT CITY OF COLUMBIA HEIGHTS Check History GL540R-V06.74 PAGE 3 07/23/2007 COUNCIL LISTING CHECK NUMBER AMOUNT BAKER & TAYLOR ENTERTAIN 122250 59.38 BARNA GUZY & STEFFEN LTD 122251 13,527.00 BKV GROUP INC 122252 540.00 BLUEMELS TREE SERVICE 122253 4,304.64 BOOK PAGE 122254 216.00 BOUND TREE MEDICAL LLC 122255 34.30 BRADLEY & GUZZETTA LLC 1.22256 2,430.00 BRODART 122257 259.36 BUREAU OF CRIMINAL APPR 122258 200.00 BUREAU OF CRIMINAL APPRE 122259 630.00 CAMDEN PET HOSPITAL, INC 122260 1,122.18 CCH INCORPORATED 122261 329.36 CCP INDUSTRIES 122262 409.84 CENTRAL IRRIGATION SUPPL 122263 120.41 GRADER BUSINESS EQUIP CO 122264 10.60 CHOICE POINT SERVICES 122265 168.00 CINTAS FIRST AID-SAFETY 122266 255.25 COL HGTS FIREFIGHTERS AS 122267 915.61 COLUMBIA HEIGHTS RENTAL 1.22268 17.00 COLUMBIA PARK MEDICAL GR 122269 113.00 COMMERCIAL ASPHALT 1.22270 18,518.48 CSC CREDIT SERVICES INC 122271 25.66 DISCOUNT STEEL INC 122272 44.67 DU ALL SERVICE CONTRACTO 1.22273 2,993.99 E L REINHARDT COMPANY IN 122274 34.55 ELK RIVER FORD 122275 13,980.70 EMERGENCY AUTOMOTIVE TEC 122276 279.61 FIDELITY SERVICES INC 122277 5,167.90 FLEX COMPENSATION, INC 1.22278 168.00 G & K SERVICES INC 122279 937.95 GAYLORD BROS 122280 43.33 GENE'S WATER & SEWER INC 122281 12,029.05 GENUINE PARTS/NAPA AUTO 122282 131.75 GRAFIX SHOPPE, INC 122283 268.96 HD SUPPLY WATER WORKS 122284 1,260.00 HEIGHTS ELECTRIC INC. 122285 352.95 HEINRICH ENVELOPE CORP 122286 164.07 HOME DEPOT ##2802 122287 228.90 ICMA PRODUCT FULFILLMENT 122288 109.50 INSTRUMENTAL RESEARCH IN 122289 467.80 JANWAY 122290 47.00 KENNEDY & GRAVEN 122291 3,018.00 KIMLEY-HORN & ASSOCIATES 122292 2,579.79 LAKE RESTORATION INC 122293 424.76 LEAGUE OF MINNESOTA CITI 122294 300.00 LOT SURVEYS COMPANY INC 122295 500.00 MARCO 122296 455.33 61 ACS FINANCIAL SYSTEM 07/19/2007 12 BANK VENDOR BANK CHECKING ACCOUNT CITY OF COLUMBIA HEIGHTS Check History GL540R-V06.74 PAGE 4 07/23/2007 COUNCIL LISTING CHECK NUMBER AMOUNT MEDICS TRAINING INC 122297 400.00 MEDTOX LABORATORIES, INC 122298 225.55 MELSA 122299 18.00 MENARDS - COON RAPIDS 122300 65.53 MENARDS CASHWAY LUMBER-F 122301 338.48 METRO FIRE, INC 122302 390.00 METROPOLITAN COUNCIL WAS 122303 68,308.19 MID CITY MECHANICAL 122304 745.00 MIDWAY FORD 122305 196.29 MIDWEST ASPHALT CO. 122306 280,253.66 MINNEAPOLIS FINANCE DEPT 122307 101,905.15 MINNEAPOLIS OXYGEN CO. 122308 11.50 NtINNEAPOLIS SAW CO. 122309 8.29 MN COUNCIL ON FOUNDATION 122310 94.50 MN HIGHWAY SAFETY & RESE 122311 1,336.00 MTI DISTRIBUTING 122312 68.00 NATIONAL AUTOMOBILE DEAL 122313 70.00 NEENAH FOUNDRY COMPANY 122314 2,902.13 NORTHEASTER 122315 80.00 NORTHERN AIR 12.2316 553.00 NORTHERN WATER WORKS SUP 122317 211.34 NYSTROM PUBLISHING COMPA 122318 3,542.93 OFFICE DEPOT 122319 1,156.51 ONVOY INC 122320 59.99 ORKIN INC 122321 65.65 PEPSI-COLA-7 UP 122322 173.00 PERFORMANCE OFFICE PAPER 122323 459.44 PREMIUM WATERS INC 122324 23.16 RACHEL CONTRACTING LLC 122325 51,884.00 RANDOM HOUSE, INC 122326 750.70 RESOURCE RECOVERY TECHNO 122327 4,025.70 RICOH AMERICAS CORPORATI 1~?2328 2,613.05 ROYAL TIRE 122329 559.50 RYDBERG/SCOTT 122330 45.00 S & T OFFICE PRODUCTS IN 122331 76.97 SANITARY ENGINEERING LAB 122332 450.00 SCHOOLHOUSE MAGAZINE 122333 7.95 STAPLES BUSINESS ADVANTA 122334 450.46 STATE OF MINN-DEPT OF FI 122335 34.20 STREICHER'S GUN'S INC/DO 122336 439.35 SUN PUBLICATION TNC 122337 1,136.41 SWEENEY BROTHERS 122338 16.99 TAUTGES, REDPATH, & CO., 122339 12,020.75 TEMP AIR INC 122340 307.77 TERMINAL SUPPLY CO, INC 122341 5.13 THOMSON GALE 122342 1,340.61 US HOSPITALITY PUBLISHER 122343 550.00 62 ACS FINANCIAL SYSTEM CITY OF COLUMBIA HEIGHTS 07/19/2007 12 Check History GL540R-V06.74 PAGE 5 07/23/2007 COUNCIL LISTING BANK VENDOR CHECK NUMBER =UNT BANK CHECKING ACCOUNT VERIZON WIRELESS 122344 6.14 VIKING ELECTRIC SUPPLY 122345 229.58 WERNER ELECTRIC SUPPLY C 122346 61.38 WESTWIND WOODWORKERS INC 122347 435.00 WW GRAINGER,INC 122348 155.01 3M 122349 5,632.39 3,114,899.32 *** 63 ACS FINANCIAL SYSTEM 07/19/2007 12 BANK VENDOR REPORT TOTALS: CITY OF COLUMBIA HEIGHTS Check History GL540R-V06.74 PAGE 6 07/23/2007 COUNCIL LISTING CHECK NUMBER AMOUNT 3,114,899.32 RECORDS PRINTED - 000861 64 ACS FINANCIAL SYSTEM 07/1 9/2007 12:57:01 Check History FUND RECAP: FUND --°- DESCRIPTION ---------------------------- DISBURSEMENTS 101 GENERAL 67,980.66 201 COMMUNITY DEVELOPMENT FUND 7,704.10 203 PARKVIEW VILLA NORTH 480.83 212 STATE AID MAINTENANCE 3,037.74 213 PARKVIEW VILLA SOUTH 240.42 225 CABLE TELEVISION 2,910.83 240 LIBRARY 10,390.61 261 TWENTY-FIRST CENTURY PROGRAM 830.75 265 CONFISCATED/FORFEITED PROP 102.60 385 MULTI-USE REDEVELOPMENT PLAN 380.00 389 R8:TRANSITION BLK REDEVELOP 21,854.00 415 CAPITAL IMPRVMT - PIR PROD 303,531.08 418 COMMUNITY CTR CAPITAL BLDG 3,542.93 420 CAP IMPROVEMENT-DEVELOPMENT 52.24 431 CAP EQUIP REPLACE-GENERAL 13,980.70 436 CAPITAL EQUIP REPLACE-LIQUOR 54,963.79 601 WATER UTILITY 106,696.38 602 SEWER UTILITY 73,234.86 603 REFUSE FUND 1,165.44 604 STORM SEWER UTILITY 1,314.66 609 LIQUOR 266,929.63 651 WATER CONSTRUCTION FUND 12,029.05 701 CENTRAL GARAGE 7,060.52 720 DATA PROCESSING 573.39 875 FISCAL AGENCY: GIS RANGER 5,632.39 881 CONTRIBUTED PROJECTS-REC 8,818.15 883 CONTRIBUTED PROJECTS-OTHER 435.00 884 INSURANCE 1,904.42 885 PAYROLL FUND 131,419.88 886 INVESTMENT FUND 2,000,000.00 887 FLEX BENEFIT FUND 5,702.27 TOTAL ALL FUNDS 3,114,899.32 BANK RECAP: BANK NAME DISBURSEMENTS ---- ---------------------------- BANK CHECKING ACCOUNT 3,114,899.32 TOTAL ALL BANKS 3,114,899.32 CITY OF COLUMBIA HEIGHTS GL060S-V06.74 RECAPPAGE GL540R 65 CITY COUNCIL LETTER Meeting ~f~ .Yalu 24. ?~~'7 AGENDA SECTION: Consent ORIGINATING DEPT.: CITY MANAGER ~TI 1' • ('~...«.«...,.: s.. Tl~_..,7 ., _____ ___~ `,viiuuuituy licvciu~uicut A TITTI /lt l A T ~rrtcvvt~L ~ ITEM: Resolution 2007-121, Approving BY: Randy Schumacher BY: Amended and Restated Contract DATE: July 18, 2007 Background: The City and the Huset Park Development Corporation entered into a Contract for Private Redevelopment dated October 25, 2004, setting forth the terms and conditions of redevelopment of certain property within the redevelopment project, generally Located east of University Avenue and south and west of Huset Park, known as the old Industrial Park. The parties have determined the need to modify the contract in certain respects, and have prepared an Amended and Restated Contract for Private Redevelopment. The Amended Contract includes the following points: • Addresses issuance of the revenue bonds and technical details regarding how Tax Increment is pledged to all obligations. • Updates the description of the various phases of development, and revises the construction schedule. • Provides for an EDA Inter Fund Tax Increment Loan to repay $75,000 in environmental cost encountered in construction of the parkway. Steve Bubul, our legal. counsel from Kennedy & Graven, and Mark Ruff, our fiscal agent from Ehlers & Associates, will be present to provide more detail and answer any questions concerning these issues. Recommendation: Adoption of Resolution 2007-121 Approving and Amended and Restated Contract for Private Redevelopment between the Columbia Heights Economic Development Authority, the City of Columbia Heights and Huset Park Development Corporation. Recommended Motion: Move to waive the reading of Resolution 2007-121, there being an ample amount of copies available to the public. Move to Adopt Resolution 2007-121, a Resolution Approving an Amended and Restated Contract for Private Redevelopment between the Columbia Heights Economic Development Authority, the City of Columbia Heights and Huset Park Development Corporation; and furthermore, to authorize the Mayor and City Manager to enter into an agreement for the same. COUNCIL ACTION: 66 CITY OF COLUMBIA HEIGHTS RESOLUTION N0.2007-121. Resolution Approving An Amended And Restated Contract For Private Redevelopment Between The Columbia Heights Economic Development Authority, The City Of Columbia Heights And Huset Park Development Corporation BE I'I' RESOLVED By the City Council ("Council") of the City of Columbia Heights, Minnesota ("City") as follows: Section 1. Recitals. 1.01. The Columbia Heights Economic Development Authority ("Authority") has deternuned a need to exercise the powers of a housing and redevelopment authority, pursuant to Minnesota Statutes, Sections. 469.090 to 469.108 ("EDA Act"), and is currently administering the Downtown CBD Redevelopment Project ("Redevelopment Project") pursuant to Minnesota Statutes, Sections 469.001 to 469.047 ("HRA Act"). 1.02. The Authority, the City and Huset Park Development Corporation (the "Redeveloper") entered into a into a Contract for Private Redevelopment dated as of October 25, 2004 (the "Contract"), setting forth the terms and conditions of redevelopment of certain property within the Redevelopment Project, generally located east of University Avenue and south and west of Huset Park . 1.03. The parties have determined a need to modify the Contract in certain respects, and have caused to be prepared an Amended and Restated Contract for Private Redevelopment (the "Amended Contract"). 1.04. The Council has reviewed the Amended Contract and finds that the execution thereof and performance of the City's obligations thereunder are in the best interest of the City and its residents. Section 2. Cit~pproval; Further Proceedings. 2.01. The Amended Contract as presented to the Council is hereby in all respects approved, subject to modifications that do not alter the substance of the transaction and that are approved by the Mayor a_nd City Manager, provided that exec~.:tior. of the documents by such officials shall be conclusive evidence of approval. 2.02. The Mayor and City Manager are hereby authorized to execute on behalf of the City the Amended Contract and any documents referenced therein requu-ing execution by the City, and to carry out, on behalf of the City its obligations thereunder. 2007. Approved by the City Council of the City of Columbia Heights, Minnesota this of July, Offered by: Second: Roll Call: Attest: Mayor Gary L. Peterson. Patt•icia Muscovitz -City Clerk 67 ~~:° 470 U.S. Bank Plaza ~ 200 South Sixth Street Minneapolis, MN 55402 III ~ '~• (612) 337-9300 telephone ~ ~ (612) 337-9310 fax htep: (/vrww.kennedy-graven.com CHARTERED , P . C . Affirmative Action, Equal Opportunity Employer STEPHEN J. BUBUL Attorney at Law Direct Dial (612} 337-9228 Email: sbubul@kennedy-gravencom July 18, 2007 Randy Schumacher City of Columbia Heights Columbia Heights City Hall 590-40th Avenue Northeast Columbia Heights, MN 55421-3835 RE: Huset Park Redevelopment Matters Dear Randy: You asked me to summarize the actions before the City Council and EDA Board on July 23 and 24, in connection with financing for Huset Park Redevelopment project. As you know, the City and EDA entered into the Contract for Private Redevelopment with Huset Park Development Corporation (the "Redeveloper") dated October 25, 2004 (the "Original Contract"). Under the Original Contract, the EDA agreed to help finance certain "Public Redevelopment Costs" of the project through issuance of tax increment revenue notes (referred to as "Initial Notes"), with the further expectation that Initial Notes would be replaced by tax-exempt revenue bonds (referred to as "Refmancing Notes"). The EDA has not issued any Initial Notes do date, but most of the Public Redevelopment Costs have been incurred and Phase I and part of Phase II of the original development are now substantially complete. The Redeveloper has now requested that the EDA issue the following: 1. Tax Increment Revenue Bonds (Huset Park Redevelopment Project) Series 200?, in the maximum principal amount of $3,200,000 (the "Revenue Bonds"). The actual principal amount is expected to be closer to $2,880,000 (the final amount will be determined upon pricing of the bonds on July 25}. These bonds are the equivalent of "Refinancing Notes" under the Original Contract. The proceeds will be used to reimburse the Redeveloper for a portion of the Public Redevelopment Costs incurred to date. The Revenue Bonds are sold to third parties (such as banks), and are secured solely by a portion of the tax increment from the TIF District; they are not a general obligation of the EDA or the City. The tax increment from housing units already completed or under construction is expected to be sufficient to pay at least 125% of the debt service on the Revenue Bonds. 2. Taxable Tax Increment Revenue Nate, Series 2407A in the principal amount of $6,650,000 (the "TIF Nate"). The TIF Note represents one of the Initial Notes deseribed in the Original Contract. This is a so-called "pay as you note," issued to the Redeveloper (rather than third parties), and represents reimbursement of additional Public Redevelopment Costs above and beyond the amount 314811v1 SJB CL205-23 68 Randy Scumacher July 18, 200? Page 2 of 2 reimbursed from proceeds of the Revenue Bonds. The TIF Note is secured by a portion of the tax increment from the TIF District. on a subordinate basis to the Revenue Rnn~l.c ~P'T'TF ilTntr will hP nairi only if and to the extent the remaining phases of the development are completed and generate sufficient tax increment. Like the Revenue Bonds, the TIF Note is not a general obligation of the EDA or the City. The maximum tax increment assistance described in the Original Contract was $'7,995,400, subject to adjustment based on actual expenditures. Following the adjustment procedures under the Original Contract, issuance of the Revenue Bonds and the TIF Note, combined, will represent an approximately $1,500,000 increase (subject to further adjustment as final costs are determined}. In connection with issuance of the Revenue Bonds and the TIF Note, the City and EDA will also consider revisions to the Contract, which are included in an Amended and Restated Contract for Private Redevelopment (the "Amended Contract"). The Amended Contract includes these major points: • addresses issuance of the Revenue Bonds and some technical details regarding how tax increment is pledged to all obligations. Updates the description of the various Phases of development, and revises the construction schedule. • Provides for an EDA interfund tax increment loan to repay $75,000 in environmental cost ovemms encountered in construction of the Parkway. (The EDA and Redeveloper will share equally in the tax increment available after each debt service payment on the Revenue Bonds). To summarize, the actions before the City Council and EDA are as follows: Council: 1. Resolution approving the Amended and Restated Contract. 2. Resolution approving issuance by the EDA of the Revenue Bonds. EDA: Resolution approving the Amended and Restated Contract. Resolution approving sale of the Revenue Bonds. 3. Resolutian approving issuance of the TIF Note. I will be available for questions at the Council meeting on July 23 and (if necessary) at the EDA meeting on July 24. If you or Council members/EDA commissioners have questions before then, please contact me. Very truly yours, Steph . Bubu 3I4811v1 SJB CL205-23 69 Second Draft July 16, 200'7 AMENDED AND RESTATED CONTRACT FOR PRIVATE REDEVELOPMENT By and Between COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY COLUMBIA HEIGHTS, MINNESOTA and CITY OF COLUMBIA HEIGHTS and HUSET PARK DEVELOPMENT CORPORATION Dated as of: August 1, 2001 This document was drafted by: KENNEDY & GRAVEN, Chartered 470 U.S. Bank Plaza 200 South Sixth Street Minneapolis, Minnesota 55402 Telephone: X612) 337-9300 70 TABLE OF CONTENTS PREAMBLE ----------------------------- ARTICLE I Definitions Section 1.1. Definitions .................................................................................. ARTICLE II Representations and Warranties Section 2.1. Representations and Covenants by the Authority and City ....... Section 2.2. Representations and Warranties by the Redeveloper ................. ............. 3 ...................... 8 ...................... 9 ARTICLE III Property Acquisition, Conveyance; Public Redevelopment Cost Financing Section 3.1. Status of the Property ...................................................................................... 10 Section 3.2. Authority Parcels ............................................................................................ 11 Section 3.3. Relocation ....................................................................................................... 13 Section 3.4. Platting ............................................................................................................ 14 Section 3.5. Contamination Cleanup-Phase I ................................................................... 14 Section 3.6. Contamination Cleanup-Phases II and III .................................................... 15 Section 3.7. Environmental Warranties and Indemnities .................................................... 16 Section 3.8. Issuance of Initial Notes .................................................................................. 16 Section 3.9. TIF Lookback .................................................................................................. 19 Section 3.10. Authority Refinancing of Initial Notes ........................................................... 20 Section 3.11. Payment of Authority Costs ............................................................................ 23 Section 3.12. Business Subsidy ............................................................................................ 24 Section 3.13. Other Grants .................................................................................................... 24 ARTICLE IV Construction of Minimum Improvements and Public Improvements Section 4.1. Construction of Minimum Improvements ...................................................... 25 Section 4.2. Master Site Plan and Construction Plans ........................................................ 25 Section 4.3. Completion of Construction ............................................................................ 26 Section 4.4. Certificate of Completion ............................................................................... 27 Section 4.5. Grant Covenants .............................................................................................. 28 Section 4.6. Association Covenants .................................................................................... 28 Section 4.7. Records ........................................................................................................... 28 Section 4.$. Reports ............................................................................................................ 29 Section 4.9. Acknowledgments ........................................................................................... 29 Section 4.10. Construction of Public Improvements ............................................................ 29 i 71 ARTICLE V Insurance Section S.I. Insurance ...................................... Section 5.2. Subordination ............................... Section 5.3. Qualifications ............................... ARTICLE VI Tax Increment; Taxes Section 6.1. Right to Collect Delinquent Taxes........ Section 6.2. Review of Taxes ................................... Section 6.3. Qualifications ........................................ ARTICLE VII Financing Section 7.1. Mortgage Financing ..................................................... ARTICLE VIII Prohibitions Against Assignment and Transfer; Indemnification ......................... 31 ......................... 32 ......................... 32 .................... 33 .................... 33 .................... 33 34 Section 8.1. Representation as to Redevelopment .............................................................. 35 Section 8.2. Prohibition Against Redeveloper's Transfer of Properly and Assignment of Agreement .............................................................................. 35 Section 8.3. Release and Indemnification Covenants ......................................................... 37 ARTICLE IX Events of Default Section 9.1. Events of Default Defined .............................................................................. 38 Section 9.2. Remedies on Default ....................................................................................... 38 Section 9.3. No Remedy Exclusive ..................................................................................... 39 Section 9.4. No Additional Waiver Implied by One Waiver .............................................. 39 ARTICLE X Additional Provisions Section 10.1. Conflict of Interests; Authority Representatives Not Individually Liable...... 40 Section 1.0.2. Equal Employment Opportunity ..................................................................... 40 Section 10.3. Restrictions on Use ......................................................................................... 40 Section 10.4. Provisions Not Merged With Deed ................................................................. 40 Section 10.5. Titles of Articles and Sections ........................................................................ 40 Section 10.G. Notices and Demands ..................................................................................... 40 Section 10.7. Counteiparts .................................................................................................... 41 ii 72 Section 10.8. Recording ........................................................................................................ 41 Section 10.9. Amendment ..................................................................................................... 41 Section 10. I0. Authority or City Approvals ........................................................................... 41 Section 10.1 L Termination ..................................................................................................... 41 SCHEDULE A SCHEDULE B SCHEDULE C SCHEDULE D SCHEDULE E SCHEDULE F SCHEDULE G SCHEDULE H SCHEDULEI Description of Redevelopment Property Master Site Plan Design Guidelines Authorizing Resolution Certification of Completion Public Improvements Budget Public Redevelopment Costs Development Budget Form of Redeveloper Pro Forma 111 73 CONTRACT FOR PRIVATE REDEVELOPMENT THIS AGREEMENT, made on or as of the Is` day of August, 2007, by and between COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY, COLUMBIA HEIGHTS, MINNESOTA, a public body corporate and politic (the "Authority"), established pursuant to Minnesota Statutes, Sections 469.090 to 469.1081 (hereinafter referred to as the "Act"), the CITY OF COLUMBIA HEIGHTS, a Minnesota municipal corporation (the "City") and HUSET PARK DEVELOPMENT CORPORATION, a Minnesota corporation (the "Redeveloper"). WITNESSETH: WHEREAS, the Authority was created pursuant to the Act and was authorized to transact business and exercise its powers by a resolution of the City Council of the City of Columbia Heights ("City"); and WHEREAS, the City and the Authority (as successor to the Housing and Redevelopment Authority in and for the City of Columbia Heights) have undertaken a program to promote redevelopment of land that is characterized by blight and blighting factors within the City, and in this connection the Authority administers a redevelopment project known as the Downtown CBD Redevelopment Project ("Project") pursuant to Minnesota Statutes, Sections 469.001 to 469.047 (the "HRA Act"); and WHEREAS, pursuant to the Act and the HRA Act, the Authority is authorized to acquire real property, or interests therein, and to undertake certain activities to facilitate the redevelopment of real property by private enterprise; and WHEREAS, within the Project, the City and Authority have created the Huset Park Area Tax Increment Financing District ("TIF District") in order to facilitate redevelopment of certain property in the Project; and WHEREAS, the Authority and Redeveloper have previously entered into a Contract for Private Redevelopment dated as of October 25, 2004 (the ``Original Contract") regarding redevelopment of the property described in Schedule A hereto, designated as the Redevelopment Property; and WHEREAS, this Agreement is intended to supersede and replace the Original Contract in all respects; and WHEREAS, the Authority believes that the redevelopment of the Redevelopment Property pursuant to this Agreement, and fulfillment generally of this Agreement, are in the vital and best interests of 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 Project has been undertaken and is being assisted. 1 74 NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: 75 ARTICLE I DefiniHnnc Section 1.1. Definitions. In this Agreement, unless a different meaning clearly appears from the context: "Act" means the Economic Development Authority Act, Minnesota Statutes, Sections 469.090 to 469.108, as amended. "Affiliate" means with respect to the Redeveloper (a) any corporation, partnership, corporation or other business entity or person controlling, controlled by or under common control with the Redeveloper, and (b) any successor to such party by merger, acquisition, reorganization or similar transaction involving all or substantially all of the assets of such party (or such Affiliate). For the purpose hereof the words "controlling", "controlled by" and "under common control with" shall mean, with respect to any corporation, partnership, corporation or other business entity, the ownership of fifty percent or more of the voting interests in such entity possession, directly or indirectly, of the power to direct or cause the direction of management policies of such entity, whether ownership of voting securities or by contract or otherwise. "Agreement" means either the Original Contract or this Amended and Restated Contract, as the context requires, and as the same may be from time to time modified, amended, or supplemented. "Amended and Restated Contract" means this Amended and Restated Contract for Private Redevelopment between the Authority and Redeveloper. "Authority" means the Columbia Heights Economic Development Authority, or any successor or assign. `:A~,:*.hority Costs" has the mea:ung provided in Section 3.11. "Authority Representative" means the Executive Director of the Authority, or any person designated by the Executive Director to act as the Authority Representative for the purposes of this Agreement. "Authorizing Resolution" means the resolution of the Authority, substantially in the form of attached Schedule D to authorize the issuance of the Initial Notes. "Available Tax Increment" means, on any payment date far any Initial Note or Refinancing Note, the Tax Increment derived from the Redevelopment Property during the six-month period preceding each Payment Date after (i) deducting $16,500 and the fees of a paying agent, if any, in connection with such notes. 76 `Business Day" means any day except a Saturday, Sunday, legal holiday, a day on which the City is closed for business, or a day on which banking institutions in the City are authorized by law or executive order to close. "Business Subsidy Act" means Minnesota Statues, Sections 116J.993 to 116J.995, as amended. "Certificate of Completion" means the certification provided to the Redeveloper, or the purchaser of any part, parcel or unit of the Redevelopment Property, pursuant to Section 4.4 of this Agreement. "City" means the City of Columbia Heights, Minnesota. "Construction Plans" means the plans, specifications, drawings and related documents on the construction work to be performed by the Redeveloper on the Redevelopment 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 for each building: (1) site plan; (2) foundation plan; (3) basement plans; (4) floor plan for each floor; (5) cross sections of each (length and width); (6) elevations (all sides); (7) landscape plan; and (8) such other plans or supplements to the foregoing plans as the Authority may reasonably request to allow it to ascertain the nature and quality of the proposed construction work. "County" means the County of Anoka, Minnesota. "DEED" means the Minnesota Department of Employment and Economic Development. "DEED Grant Agreement" means the Contamination Cleanup Program Grant Agreements between DEED and the City dated as of December 31, 2003 and April 6, 2004 (related to Phase I), February 4, 2005 (related to Phase II) and February 21, 2006 (related to Phase III). "Design Guidelines" means the Design Guidelines for the Redevelopment Property attached as Schedule C. "Development Budget" means the Development Budget attached as Schedule H. "Event of Default" means an action by a party described in Section 9.I of this Agreement. "HRA Act" means Minnesota Statutes, Sections 469.001 to 469.047. "Holder" means the owner of a Mortgage. "Initial Note" or "Initial Notes" means Taxable Tax Increment Revenue Notes, substantially in the form contained in the Authorizing Resolution, to be delivered by the Authority to the Redeveloper in accordance with Section 3.8 hereof. 4 77 "Master Site Plan" means the plan for development of the Redevelopment Property, attached as Schedule B as it may be revised from time to time under Section 4.2. The Master Site Plan attached to this Amended and Restated C'~ntract ;s the ratan ;,, Pfferr a~ ~f A„a„c+ ~ ~nm ThP ,,,,,,,har of „n;+~ listed in Phase III represents the maximum number for that Phase, while the defimition of Phase III under Minimum Improvements represents the current expectations "Met Council" means the Metropolitan Council. "Met Council Grant Agreement" means the Metropolitan Livable Communities Act Tax Base Revitalization Account Grant Agreements between the Metropolitan Council and the City dated as of April 13, 2004 (related to Phase I), April 4, 2005 (related Phase II), and Maich 3, 2006 (related to Phase III). "Minimum Improvements" means the construction on the Phase I Property of approximately 123 units of owner occupied townhomes (Phase IA) and 50 units of cooperative senior housing ("Phase IB") (together, "Phase I"); and the construction on the Phase II Property of approximately 103 units of owner-occupied townhomes ("Phase IIA") and 51 additional units of owner occupied townhomes ("Phase IIB"), and the construction on the Phase III Property of approximately 47 owner occupied condominium or cooperative housing units ("Phase IIIA", approximately 52 owner occupied condominium or cooperative housing unit together with approximately 11,650 square feet of commercial facilities ("Phase IIIB"), and approximately 84 owner occupied condominium or cooperative housing units ("Phase IIIB"). "MURA" means the Minnesota Uniform Relocation Act, Minnesota Statutes, Sections 117.50 to 117.56, as amended. "Mortgage" means any mortgage made by the Redeveloper which is secured, in whole or in part, with the Redevelopment Property and which is a permitted encumbrance pursuant to the provisions of Article VIII of this Agreement. "Original Contract" means the Contract for Private Redevelopment between the Authority and Redeveloper dated as of Gctober 26, 2007. "Parcel" means any parcel of the Redevelopment Property. "Parkway" means the parkway running tlu-ough the Redevelopment Property from Jefferson Street NE to 37`h Street, as shown on the Master Site Plan. "Parkway Interfund Loan" has the meaning provided in Section 4.10(d) hereof. "Phase I", Phase II" and "Phase III" have the meaning provided in the definition of Minimum Improvements. "Phase I Property," "Phase II Property" and "Phase III Property" mean the respective portions of the Redevelopment Property so designated in the Master Site Plan. 78 "Planning Contract" has the meaning provided in Section 3.1(b} hereof. "Public Improvements" has the meaning provided in Section 4.10 hereaf. "Public Redevelopment Costs" means the costs described in Schedule G. "Redeveloper" means Huset Park Development Corporation or its permitted successors and assigns. "Redevelopment Project" means the Authority's Downtown CBD Redevelopment Project. "Redevelopment Property" means the property so described on Schedule A. "Redevelopment Plan" means the Authority's Redevelopment Plan for the Redevelopment Project, as amended. "Refinancing Notes" has the meaning provided in Section 3.8(a). "Series 2007 Bonds" has the meaning provided in Section 3.8(h). "State" means the State of Minnesota. "Subdeveloper" has the meaning provided in Section 8.2(a). "Tax Increment" means that portion of the real property taxes which is paid with respect to the Redevelopment Property and which is remitted to the Authority as tax increment pursuant to the Tax Increment Act. The term Tax Increment does not include any amounts retained by or payable to the State auditor under Section 469.177, subd. 11 of the Tax Increment Act, or any amounts described in Section 469.174, subd. 25, clauses (2) through (4) of the Tax Increment Act. "Tax Increment Act" or "TIF Act" means the Tax Increment Financing Act, Minnesota Statutes, Sections 459.174 to 459.1799, as amended. "Tax Increment District" or "TIF District" means the Authority's Huset Park Area Tax Increment Financing District. "Tax Increment Plan" or "TIF Plan" means the Authority's Tax Increment Financing Plan for the TIF District, as approved by the Authority and City on October 25, 2004, and as it may be amended from time to time. "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 court including the tax court of the State. "Termination Date" means the date the Authority receives the last installment of Tax Increment from the Caunty. 6 79 "Transfer" has the meaning set forth in Section 8.2(a) hereof. "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 war, terrorism, strikes, other labor troubles, 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, economic events beyond the control of the parties that materially reduce the marketability of for sale housing, including unusual increases in mortgage rates or economic recession, or acts of any federal, state or local governmental unit (other than the Authority in exercising its rights under this Agreement) which directly result in delays. Unavoidable Delays shall not include delays in the Redeveloper's obtaining of permits or governmental approvals necessary to enable construction of the Minimum Improvements by the dates such construction is required under Section 4.3 of this Agreement, unless (a) Developer has timely filed any application and materials required by the City for such permit or approvals, and (b) the delay is beyond the reasonable control of the Redeveloper. 7 sa ARTICLE II Representations and Warranties Section 2.1. Representations and Covenants by the Authority and City. (a) The Authority is an economic development authority duly organized and existing under the laws of the State. Under the provisions of the Act and the HRA Act, the Authority has the power to enter into this Agreement and carry out its obligations hereunder. (b) The Authority and City will use their best efforts to facilitate development of the Minimum Improvements, including but not limited to cooperating with the Redeveloper in obtaining necessary administrative and land use approvals and construction and/or permanent financing pursuant to Section 7.1 hereof. (c) The activities of the Authority are undertaken for the purpose of fostering the redevelopment of certain real property that is or was occupied primarily by substandard and obsolete buildings, which will revitalize this portion of the Redevelopment Project, increase tax base, and increase housing and employment opportunities. (d) The City is a home rule charter city duly organized and existing under the laws of the State, and is a state public body under Section 469.041 of the HRA Act. Under the provisions of its charter and the HRA Act, the City has the power to enter into this Agreement and cant' out its obligations hereunder. (e) The City and Authority have taken or will take all actions necessary to establish the TIF District as a redevelopment district as defined in the TIF Act, except for filing the request for certification of the district with the County. Before issuance of any Initial Note, the Authority will file the request for certification of the TIF District. (fj The City and Authority will take no action, nor omit to take any action, regarding the TIF District that materially impairs the collection or payment of Tax Increment. (g) As of the date of this Agreement, the Minimum improvements constructed in accordance with the Master Site Plan are allowed uses under the City zoning ordinance and are consistent with the City comprehensive Plan. (h) As of the date of this Agreement, the City and Authority have completed all required environmental review and determined that no further environmental. review is required under the Minnesota Environmental Policy Act, Minn. Star. Ch. 1 I6.D. (i) 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 charter or statutory limitation or any indebtedness, agreement or 81 instrument of whatever nature to which the City or Authority is now a party or by which it is bound, or constitutes a default under any of the foregoing. (e) The Authority shall promptly advise City in writing of all litigation or claims affecting any part of the Minimum Improvements. Section 2.2. Representations and Warranties by the Redeveloper. The Redeveloper represents and warrants that: (a) The Redeveloper is a corporation organized and in good standing under the laws of the State of Minnesota, is not in violation of any provisions of its article of incorporation or the laws of the State, is duly authorized to transact business within the State, has power to enter into this Agreement and has duly authorized the execution, delivery and performance of this Agreement by proper action of its governing body. (b) Upon acquisition of the Redevelopment Property, the Redeveloper will construct, operate and maintain the Minimum Improvements in accordance with the terms of this Agreement, the Redevelopment Plan and all applicable local, state and federal laws and regulations (including, but not limited to, environmental, zoning, building code and public health laws and regulations). (c) The Redeveloper will 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 must be obtained or met before the Minimum Improvements may be lawfully constructed. (d) 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 partnership or company restriction or any evidences of indebtedness, agreement or instrument of whatever nature to which the Redeveloper is now a parry or by which it is bound, or constitutes a default under any of the foregoing. (e) The Redeveloper shall promptly advise City in writing of all litigation or claims affecting any part of the Minimum Improvements and all written complaints and charges made by any govenunental authority materially affecting the Minimum Improvements or materially affecting Redeveloper or its business which may delay or require changes in construction of the Minimum Improvements. (f) The proposed redevelopment by the Redeveloper hereunder would not occur but far the tax increment financing assistance being provided by the Authority hereunder. 9 82 ARTICLE III Property Acquisition. Convevance: Puhlic Redeve8nnment f pct Finanrina Section 3.1. Status of the Property. (a) As of the date of this Agreement, an Affiliate of the Redeveloper owns Parcel A of the Redevelopment Property (also referred to as the "SR Parcel"). During the term of the Preliminary Development Agreement, the Redeveloper acquired Parcel B and entered into a purchase agreement to acquire Parcel C, in each case for a price the Authority has determined is reasonable. Parcels D, E, F and G are owned by third parties and Redeveloper has not secured purchase agreements for those Parcels as of the date of this Agreement. The Redeveloper must use commercially reasonable efforts to acquire Parcels D, E, F and G through voluntary negotiation, subject to the terms of Section 3.2. As of the date of this Agreement, Redeveloper or an Affiliate has made written offers to owners of all such Parcels. Further commercially reasonable efforts to acquire must include, at a minimum, by December 31, 2004 an offer to mediate if the negotiations are not successful, and reasonable efforts to conclude such mediation by January 7, 2005. The Redeveloper must consult with the Authority on any price to be paid for a voluntary acquisition and no voluntary acquisition shall be undertaken except at a price approved by the Authority as reasonable. As of the date of this Amended and Restated Contract, the Redeveloper has acquired all parcels of the Redevelopment Property. (b) Redeveloper shall pay all costs to acquire Parcels by voluntary purchase, and all carrying costs on such Parcels (in each case, excluding the SR Parcel). All such costs are subject to reimbursement as a Public Redevelopment Cost in accordance with Section 3.8, provided that interest costs will be reimbursable only to the extent such cost represents interest on any valid evidence of indebtedness under general federal income tax principles. As of the date of this Amended and Restated Contract, the Redeveloper has paid all costs required under this paragraph. (c) The Redeveloper will acquire the SR Parcel from its Affiliate for a price equal to that Parcel's fair market value (approved by the Authority), which amount will be ir~co~porated u-~ the final Development Budget and used to calculate Redeveloper's net return on costs as described in Section 3.9. For purpose of the Development Budget, Redeveloper's cost of carry on the value of such Parcel (as agreed upon under this paragraph) will be treated as a project cost from November 1, 2004. If the Authority and Redeveloper cannot agree on the fair market value, the parties shall obtain an appraisal by the appraiser conducting the appraisals for the Authority on other Redevelopment Property. Both the Authority and the Redeveloper shall meet with the appraiser and advise of their view of value. If upon completion of the final appraisal the Authority and Redeveloper still cannot agree on value, the Redeveloper shall obtain a separate appraisal by an MAI appraiser of its choice. Following this appraisal, the two parties will further negotiate regarding value. If no agreement is then reached, the Authority and Redeveloper shall submit the matter to arbitration, which determination shall be final. Notwithstanding anything else to the contrary in this Agreement, no Tax Increment shall be paid to Redeveloper as reimbursement for the acquisition cost of the SR Parcel. 10 sa As of the date of this Amended and Restated Contract, the parties agree that the fair market value of the SR Parcel for the purposes of this Section is $2,600,000. (d) The Redeveloper shall not Transfer any portion of the Redevelopment Property to any Subdeveloper (or to itself or an Affiliate for any Phase or portion thereof retained and constructed by Redeveloper) at price less than the fallowing: $ 39, 000 per townhome (As amended August 1, 2007) $ 18,000 per condominium or cooperative unit $300,000 for the commercial portion of Phase III The above amounts are payable at closing on any such Transfer, provided that if the Subdeveloper undertakes site improvements, any portion of such payment attributable to the cost of site improvements on the transferred Parcel may be deducted and paid by the Subdeveloper as those costs are incurred. In addition, each Subdeveloper shall pay to the Redeveloper at closing on such land sale the net present value of Projected Tax Increment from the transferred Parcel (calculated as described in Section 3.8(b) hereof). Upon such payment, the Authority shall issue the Initial Note for such amount, subject to all the terms and conditions of Section 3.8. Section 3.2. Authority Parcels. (a) If the Redeveloper notifies the Authority in writing on or after December 1, 2004 that it has been unsuccessful in accomplishing acquisition of Parcels D, E, F and G voluntarily after commercially reasonable efforts (such notice to include a detailed description of the Redeveloper's acquisition efforts), then the Authority (and City, for any Parcels or portions thereof needed for Parkway right of way) will proceed to acquire all such Parcels (hereinafter referred to as "Authority Pa1-cels"} through negotiation or the exercise of its powers of eminent domain to the extent permissible under law. The Authority and City will utilize so-called "quick take" powers under Minnesota Statutes Ch. 11'7 to the extent needed or desirable to allow the redevelopment described in this Agreement to proceed in accordance with the overall schedule. The parties will cooperate and consult with one another on any condemnation actions and specifically on the final price to be paid in settlement of any condemnation action. (b) During the pendency of any Authority actions to acquire any Authori~y Parcel, the Redeveloper shall be required to promptly pay all expenses incurred by the Authority in connection with the prosecution thereof, including legal, survey, title, appraisal, relocation, process service, court costs, and similar expenses (subject to reimbursement as a Public Redevelopment Cost in accordance with Section 3.8). The Authority shall, not more often than monthly during the pendency of the action, furnish the Redeveloper with a written itemized statement of all such expenditures. Redeveloper shall have two weeks from the receipt of such statement to pay its share of the same. (c) Not later than five days prior to any date on which the Authority is required to deposit any amount into court to obtain title and possession to any Authority Parcel, Redeveloper shall deliver to the Authority 100 percent of the amount of any such deposit or payment. The Authority shall then have the right, and subject to the terms and conditions hereof, the obligation to use such funds to make such deposit or such payments. The Authority shall have no obligation to repay such funds received, deposited or paid pursuant to this Agreement should the redevelopment covered by this Agreement not be campleted for any reason, except to the extent provided otherwise in Section 3.2(e) hereof. 11 s4 (d) The Authority will not make the deposit and obtain title to and possession of any Authority Parcel unless: (i) Redeveloper is not in default of any provisions of this Agreement; (ii) The Redeveloper has provided the Authority with an undertaking in the form of a written. agreement and security reasonably acceptable to the Authority (including but not limited to a letter of credit, escrow deposit, or lien) that will assure payment by the Redeveloper of: (l } 100 percent of any condemnation award for the Authority Parcel or Parcels in excess of the previously deposited sums; (2) any relocation benefits for which are not yet paid; (3) the obligation of the Redeveloper under Section 3.2(e) hereof; and (4) the obligation of the Redeveloper under Section 3.2(g) hereof. Such security shall be in the amount adequate to ensure performance of the above-described obligations outstanding from time to time and shall remain in effect according to its terms, and in any event, until suitable and adequate substitute security is agreed to by the parties, or until the obligations secured thereby are fully performed. (iii) The Authority is satisfied that the Redeveloper has obtained, or will be obtaining, fee simple title to all other Parcels of the Redevelopment Property required for the relevant Phase (including any property needed for Public Improvements related to that Phase). (e) Notwithstanding anything herein to the contrary, if at any time before the Authority takes title or is legally required to take title to all interest in any Authority Parcel, the Redeveloper elects to discontinue the cor~derr~nation action, then upon written notice from the Redeveloper, the Authority shall immediately discontinue its acquisition activities, and thereafter the Redeveloper's sole obligation shall be (i) to reimburse the Authority for all costs and expenses incurred by the Authority in connection with the acquisition activities and all costs payable by the Redeveloper under Section 3.9, and (ii) to indemnify and save harmless the Authority and the City and their officers, agents and employees and to defend the same from any claim or cause arising out of or occasioned by the discontinuance of such acquisition activities, and the City's and Authority's sole remedy shall be to obtain such reimbursement and indemnity from the Redeveloper. Any amounts deposited by the Redeveloper with the Authority under Section 3.2(c) hereof that remain within the control of the Authority shall be applied toward the Redeveloper's obligations hereunder, and the balance of such amounts returned to the Redeveloper upon. determination by the Authority, in its reasonable discretion, that such balance exceeds the amount reasonably expected to be necessary to satisfy the Redeveloper's obligations under this Section 3.2(e). The ~-etum of any such balance shall not affect or diminish the Redeveloper"s continuing obligations under clause (ii) of this Section 3.2(e). 12 85 (f) The Authority will execute and deliver to the Redeveloper a quit claim deed for each Authority Parcel on the date the Authority has acquired such Parcel, or on such date as the Authority and Redeveloper mutually agree in writing. subiect in anv cage to the A„rhnrity hav;no hPl~i a nnhlir hearing regarding such conveyance in accordance with Section 429.029 of the HRA Act. Unless otherwise mutually agreed by the Authority and the Redeveloper, the execution and delivery of all deeds, documents shall be made at the offices of the Authority. The deed shall be in recordable form and shall be promptly recorded in the proper office for the recordation of deeds and other instruments pertaining to the Redevelopment Property. At closing on acquisition and conveyance of the Authority Parcels the Redeveloper shall pay: (i) all recording costs, including state deed tax, in connection with acquisition of the Parcel by the Authority and the conveyance thereof to the Redeveloper, including casts of recording any instruments needed to remove title encumbrances; (ii} all property taxes due and payable in the year of closing; (iii) any title company closing fees and any other fees related to the transaction. (g) The purchase price to be paid to the Authority by the Redeveloper in exchange for conveyance of the Authority Parcels is the Authority's actual cost of acquisition of such Parcels together with all costs of condemnation. including relocation and attorney fees, provided that any amounts paid or deposited by the Redeveloper under Section 3.2 shall be credited against the purchase price, and further provided that in the event the Authority takes title and possession of Authority Parcels under Minnesota Statutes, Section 117.042 before final determination of the damage award, the Redeveloper shall remain obligated to pay to the Authority, within five days after written notice thereof, any additional costs of acquisition through final detemnation of the damage award under Minnesota Statutes, Chapter 117, to the extent such costs exceed amounts paid or deposited under Section 3.2. (h) As of the date of this Amended and Restated Contract, the Redeveloper has acquired title to Parcel D, E and F directly from the third party owners, and the Authority has acquired Parcel G pursuant to the terms of this Section 3.2 and has conveyed that parcel to Pedeveloper. Section 3.3. Relocation. (a) The Redeveloper shall pay all relocation costs (unless properly waived as described in paragraph (b) below) in accordance with M[URA, arising from acquisition of all Parcels of the Redevelopment Property, whether acquired voluntarily or by condemnation. The parties agree and understand that prior to the date of this Agreement, Redeveloper retained Evergreen Land Services ("Relocation Consultant") as a relocation consultant on behalf of the Authority, regarding the relocation benefits and payments to be provided to owners and tenants of the Redevelopment Property. Redeveloper and Authority agree and understand that they will continue to work with the Relocation Consultant (or any successor appointed by the Authority) regarding relocation matters under this Agreement. Any relocation costs paid by Redeveloper are a reimbursable Public Redevelopment Cost in accordance with Section 3.8. (b) For each Parcel the Redeveloper acquires by voluntary acquisition, before closing the Redeveloper must deliver- to the Authority either (i} certification from the Relocation Consultant 13 86 describing in detail the relocation services, payments and benefits to be provided; or (ii} a written relocation waiver agreement, in a form approved by the Authority and which includes the Authority as an express third-party beneficiary, specifically describing the tune an~i amnnntc of relncatinn assistance services, payments and benefits for which eligible, separately listing those services being waived. In addition, the Redeveloper shall furnish to the Authority a written certification from the Relocation Consultant that prior to execution of any relocation waiver agreement, the Relocation Consultant explained the contents thereof to the owner-occupant. Notwithstanding anything to the contrary in this Section, the waiver option under clause (ii) may not be used for tenants of any Parcel (unless the tenant is also an owner of the Parcel or an Affiliate of the Owner); instead, the Redeveloper must comply with the provisions of clause (i). (c) Without limiting the Redeveloper's obligations under Section 8.3 hereof, the Redeveloper will indemnify, defend, and hold harmless the Authority, the City, and their governing body members, employees, agents, and contractors from any and all claims for benefits or payments arising out of the relocation or displacement of any person from the Redevelopment Property (whether from any Authority Parcel or otherwise) as a result of the implementation of this Agreement. Section 3.4. Platting. (a) Before commencing construction of each Phase, the Redeveloper shall prepare and obtain City approval of a plat of the relevant portion of the Redevelopment Property at Redeveloper's cost and subject to all City ordinances and procedures. The plat must be consistent with the Master Site Plan, provided that nothing in this Agreement is intended to limit the City's authority in reviewing any preliminary or final plat, or to preclude revisions requested or required by the City. The City and Authority will cooperate in all replatting. The relationship between the Master Site Plan and the plat is further described in Section 4.2(a) hereof. The Redeveloper must dedicate to the City, at no cost, all public rights of way needed for the Parkway, storm water ponding area and any necessary utility easements. (b) In connection with each plat, the parties agree and understand that the Redeveloper and City will enter into a development agreement (the "Planning Contract") that addresses planning and land use requirements and is consistent with the covenants regarding the Minimum Improvements and Public Improvements described in Article IV hereof. (c) The City will vacate existing streets and rights of way as needed to effectuate each plat. The Redeveloper will cooperate with the City in this effort, including without limitation filing any requests or consents required under City ordinances or State law. (d) The Redeveloper shall pay all SAC and WAC fees and park dedication fees in accordance with applicable City policies and ordinances. The Redeveloper will receive SAC/WAC credits applicable to the Redevelopment Property, and a credit against park dedication fees for the portion of the storm water pond dedication area not used for the storm water pond (such credit being in the amount of the fair market value of that land area). The details of SAC, WAC and park dedication fees, including amounts and timing of payment, will be specified in each Planning Contract. Section 3.5. Contamination Cleanup-Phase L (a) The City will promptly undertake all contamination cleanup activities (the "Cleanup Costs") on the Phase I Property specified in the DEED Grant Agreement and the Met Council Grant Agreement. The DEED Grant Agreement requires that a 14 s7 portion of the Cleanup Costs must be paid with a local match. The City, Authority and Redeveloper agree that the required local match will be made from (1) the amount of the Met Council grant, together with (2) the amount deposited by the RedevelnnPr to acanrrlanrP ~x~ith C'artinr~ 2 S(hl hereof ~ ~ ~ _ ---- --_r-- --- --__.,_.....__.. ...... ti.,.,..~~. ~..,~,,, (b) On or before the first disbursement of DEED grant proceeds to pay Cleanup Costs after the date of this Agreement, the Redeveloper must deposit with the Authority the Redeveloper's share of the local match required under the DEED Grant Agreement (currently estimated to be $340,949), together with any additional amounts needed to cover cost overruns as described in paragraph (c) below (collectively the "Redeveloper Escrow"}. The Redeveloper Escrow shall be held and applied by the City solely for the purposes described in this Section. Interest earnings on the Redeveloper Escrow shall be credited to that account. Upon the final disbursement for Cleanup Costs under this Section, any balance in the Redeveloper Escrow shall be returned to the Redeveloper. The amounts deposited in the Redeveloper Escrow will be reimbursable Public Redevelopment Costs to the extent permitted by law. (c) If Cleanup Costs for Phase I exceed the aggregate amount of the DEED grant, Met Council grant and the Redeveloper Escrow, such excess shall be the sole responsibility of the Redeveloper, but shall be reimbursable as a Public Redevelopment Cost. Redeveloper shall deposit such additional amounts in the Redeveloper Escrow within 30 days after Authority determines such costs with reasonable certainty and notifies Redeveloper in writing. However, if additional contamination is found in buildings on the Phase I property during the course of cleanup activities, the Authority or City will apply for additional DEED grant funds for Phase I, which, if awarded, will be applied to offset Redeveloper's obligation under this paragraph. (d) The Redeveloper hereby grants to the Authority and City a temporary right of access over, under and across any portion. of the Phase I Property now or hereafter owned by Redeveloper, for the purpose of undertaking the Cleanup Costs. Such right of access is in effect for the time deemed reasonably necessary by the Authority or City to carry out the Cleanup Costs. (e) The City will commence the Cleanup Costs on Parcels of the Phase I Property owned by Redeveloper as soon as reasonably practicable after the date of this Agreement, and will use its best efforts to complete Cleanup Costs on all the Phase I Property in a timely fashion that accommodates the construction schedule for Phase i, subject to Redeveloper (or the Authority, under Section 3.2) having acquired title to such property. (f) Redeveloper and the Authority will cooperate to obtain all necessary and desirable VIC and VPIC approvals from the Pollution Control Agency to assure no liability for Redeveloper, the Authority and the City from acquisition and clean-up of Phase I. Costs of any VIC or VPIC approvals paid by Redeveloper shall be a Public Redevelopment Cost. (g) As of the date of this Amended and Restated Contract, all Phase I cleanup is complete and Redeveloper has paid all Cleanup costs in excess of available grant proceeds. Section 3.6. Contamination Cleanup--Phases II and III. (a) The City or Authority, as appropriate, will timely apply with DEED and the Met Council far eontatnination cleanup grants far Phases II and III according to the following schedule: 15 ss For Phase II, apply in fall 2004; if unsuccessful, re-apply in spring 2005 grant cycle. For Phase III. annly in snrin~ 2005: if unsuccescfi~l reply ;n fall ~~~5 oranr wriP (b) Redeveloper will cooperate and assist with all grant applications. For any grants awarded, the Redeveloper will pay any DEED Local Match (to the extend not satisfied by a Met Council grant), subject to reimbursement as a Public Redevelopment Cost to the extent permitted by law. The terms of Section 3.5 shall apply to any contamination cleanup activities for Phases II and III, including without limitation the right of access in Section 3.5(d). The parties further agree to amend this Agreement as needed to carry out the terms of the future grant agreements or otherwise implement the contamination cleanup on the Phase II and III Property. (c) If, after the two grant cycles for each Phase described in paragraph (a) above, the City or Authority does not receive DEED and Met Council grant funds in at least the amount of 87.5 percent of the projected Cleanup Costs for such Phase (excluding demolition costs), the Authority and Redeveloper will each be responsible for half of any unfunded Cleanup Costs for the respective Phases, provided that in no event shall the Authority's obligation under this paragraph for Phases II and III combined exceed $1,000,000. The parties acknowledge to each other that the grant amounts estimated to be needed are $791,512 for Phase II and $1,069,737 for Phase III. This arrangement does not affect the Redeveloper's share of the DEED local match for each Phase, which shall be funded by the Redeveloper. Each party must provide its share of unfunded Cleanup Costs at the times required to commence Phases II and III, subject to financing under the following terms: (i) The Authority may finance its share with. an internal loan, revenue bonds or City-issued general obligation bonds (collectively referred to an "Authority Subordinate Note"), secured by Tax Increment subordinate to the Initial Notes and any Refinancing Notes. Any internal loan will carry interest at the maximum rate permitted under Section 469.178, subd. 7 of the TIF Act (which rate may be adjusted annually); and any bonds will be subject to market interest rates. (ii} The Redeveloper will receive as potential repayment for its share a tax increment revenue note (the "Redeveloper Subordinate Note"} secured by Tax Incre~r~ent subordinate to the Initial Notes, any Refinancing Notes, and any Authority Subordinate Note. The Redeveloper Subordinate Note will carry interest at rate of 9.0 percent. (iii) To the extent Available Tax Increment will support a greater principal amount of Refinancing Notes than needed to prepay the Initial Notes, the excess proceeds will be used to prepay the Authority Subordinate Note and the Redeveloper Subordinate Note pro rata based on the outstanding principal amounts of such notes, subject to all the terms and conditions of Section 3.10. (d} As of the date of this Amended and Restated Contract, the Authority received grants from DEED and Met Council for Phase II in the amount of $871,789 and for Phase III in the amount of $991,226 The remediation activity has been substantially completed, and the parties do not anticipate that Cleanup Costs will exceed available grant proceeds, and therefore do not anticipate the issuance of an Authority Subordinate Note or Redeveloper Subordinate Note. However, the Authority 16 89 authorizes an interfund loan in connection with costs of the Parkway as described in Section 4.10(d} hereof. Section 3.7. Environmental Warranties and Indemnities. The Redeveloper acknowledges that the Authority makes no representations or warranties as to the condition of the Redevelopment Property or the fitness of such property for construction of the Minimum Improvements or any other purpose for which the Redeveloper may make use of such property, and that the assistance provided to the Redeveloper under this Agreement neither implies any responsibility by the Authority or the City for any contamination of the Redevelopment Property nor imposes any obligation on such parties to participate in any cleanup of such property except as expressly provided otherwise in Section 3.5. Nothing in this section will be construed to limit or affect any limitations on liability of the City or Authority under State or federal law, including without limitation Minnesota Statutes Sections 466.04 and 604.02. Section 3.8. Issuance of Initial Notes. (a) Generally. In order to make development of the Minimum Improvements financially feasible, the Authority will reimburse the Redeveloper for Public Redevelopment Costs incurred by Redeveloper through issuance of one or more Initial Notes in accordance with the terms of this Section. The Authority will issue the Initial Notes in series, with each Initial Note secured by Available Tax Increment on a parity basis with one another, except to the extent specific parcels are released from such pledge in accordance with the terms of the Initial Note. The pledge of Available Tax Increment to any Initial Notes will be (i} subordinate to the pledge of such revenue to any outstanding Refinancing Notes (including the Series 200'7 Bonds), as such subordination may be further explained or qualified in the resolution or indenture under which Refinancing Notes are issued; and (ii) in a shared position with the Parkway Interfund Loan to the extent described in Section 4.10(d) hereof. (b) Principal An~oicnt. The maximum aggregate principal amount of all Initial Notes is $7,955,400, which represents the amount of assistance needed to provide Redeveloper a 15 percent return on costs as master Redeveloper, as shown in the Development Budget attached as Schedule H. The aggregate principal. amount of Initial Notes is subject to adjustment as described in Section 3.9. The principal amount of any individual Initial Note will be the net present value of the Projected Tax Increment attributable to the Redevelopment P_rope_rty and the Minimum Lmprovements to be constructed thereon, assuming the interest rate specified in paragraph (c), unless otherwise agreed by the Authority. The term "Projected Tax Increment" means Available Tax Increment for the maximum duration of the TIF District under law, assuming market values for the subject Minimum Improvements as estimated by the Authority in consultation with the Redeveloper as of issuance of the Initial Note, and class rates and tax rates applicable in the year of issuance. (c) Terms. Each Initial Note will bear interest (a) at the market rate, for Initial Notes transfel-red to a third parry, subject to Authority approval of undei-~vriting assumptions; and (b) at a rate of 6.0 percent annum for Initial Notes awned by the Redeveloper (including any Subdeveloper}. Initial Notes will be paid in semi-annual installments on each February 1 and August 1, commencing with the first August 1 after Available Tax Increment is anticipated to be received from the subject Parcel and concluding no later than February 1 of the year following the last calendar year in which the Authority receives Tax Increment fiom the TIF District. Interest on each Initial Note will accrue from the date of delivery of the Initial Note in accordance with paragraph (d) below. The payment 17 90 schedule for each Note will. be calculated by assuming that interest accruing from the date of original issue through and including the February 1 before first payment date is compounded semiannually on February 1 and August 1 ctf each year and added m nrincinal (d) Certification of Public Redevelopment Costs. Except as otherwise provided in paragraph (f) below, the Initial Notes will be issued in consideration of payment by Redeveloper of Public Redevelopment Costs incurred by Redeveloper and not paid with any other public financing source under this Agreement. Before issuance and delivery of any Initial Note (or before each disbursement of Initial Note proceeds, in the case of Initial Notes issued under paragraph (f) below), Redeveloper must submit to the Authority one or more certificates signed by the Redeveloper's duly authorized representative, containing the following: (i) a statement that each cost identified in the certificate is a Public Redevelopment Cost as defined in this Agreement and that no part of such cost has been included in any previous certification or any disbursement from any other public financing source described in Article VII hereof, (ii) evidence that each identified Public Redevelopment Cost has been paid or incurred by or on behalf of the Redeveloper, and (iii) a statement that no uncured Event of Default by the Redeveloper has occurred and is continuing under the Agreement. The Authority may, if not satisfied that the conditions described herein have been met, return any certificate with a statement of the reasons why it is not acceptable and requesting such further documentation or clarification as the Authority may reasonably require. The Redeveloper may apply Public Redevelopment Costs incurred anywhere within the Redevelopment Property toward the principal amount of any Initial Note. (e) Authorisation and Delivery. Each Initial Note will be issued in substantially the form set forth in the Authorizing Resolution attached as Schedule D. Each Authorizing Resolution will be approved upon mutual determination by the Authority and Redeveloper of the principal amounts of and payment schedule for each Initial Note in accordance with the teams of this Section. The obligation to deliver each Initial Note is conditioned upon (i) the Redeveloper having delivered to the Authority an investment letter for the Initial Note in a form reasonably satisfactory to the Authority; and (ii) the Redeveloper having delivered to the Authority, and the Authority having accepted, certification of Public Redevelopment Costs in accordance with paragraph (d) in at least the principal amount of the Initial Note, or the Redeveloper having satisfied the conditions of paragraph (f j below; and (iii) there being no uncured Event of Default by Redeveloper under this Agreement with respect to the relevant Phase. Notwithstanding anything to the contrary in this Agreement, if the conditions for delivery of the any Initial Note are not met within five years after the date of certification of the TIF District by the County, the Redeveloper's rights and interest to receive such hutial Note terminate. (fl Delivery before expenditure of Public Redevelopment Costs. Notwithstanding anything to the contrary herein, the Authority will issue and deliver any Initial Note before Redeveloper has expended Public Redevelopment Casts in the principal amount of the Initial Note, if the following conditions are satisfied: (i) Redeveloper pays the Authority a purchase price equal to the principal amount of the Initial Note; 18 91 (ii} The proceeds of the Initial Note are held by an escrow agent mutually agreed upon by the Redeveloper and the Authority (the "Escrow Agent"), under an escrow agreement (the "Escrow Aureement"1 to be entered aman~ the Authority. Ret~evPlnnPr anc~ .. .. " _. - ---------~ > ----- ---r -- --___ Escrow Agent. The form of the Escrow Agreement must be approved by the Authority Representative; (iii) Disbursements are made from the Escrow Agreement upon written approval of the Authority Representative, subject to all the terms and conditions described in paragraph (d) above; (iv) The Escrow Agreement provides that Initial Note proceeds held by the Escrow Agent will be invested in accordance with Minnesota Statutes, Chapter 118A, all interest earnings are credited to funds held under the Escrow Agreement, and the agreement further pravides for a suitable accounting system to insure the safe and proper use of Initial Note proceeds for Public Redevelopment Costs and compliance with the terms of this Section and the TIF Act; and (v) Redeveloper pays all Authority Costs related to such transaction, and all costs of the Escrow Agent. (~ No representations. The Redeveloper understands and acknowledges that the Authority makes no representations or warranties regarding the amount of Projected Tax Increment or Available Tax Increment, or that revenues pledged to any Initial Note will be sufficient to pay the principal and interest on such Initial Note. Any estimates of Tax Increment prepared by the Authority or its financial advisors in connection with the TIF District or this Agreement are for the benefit of the Authority, and are not intended as representations on which the Redeveloper may rely. If the Public Redevelopment Costs exceed the principal amount of the Initial Notes, such excess is the sole responsibility of Redeveloper. (h) Statccs tender Amended ccnd Restated Contract. Prior to the date of this Amended and Restated Contract, the parties elected not to proceed with issuance of Initial Notes. As an alternative to a portion of the Initial Tlotes, the Authority will issue its Tax Increment Revenue Bonds, Series 2007 in the maximum principal amount of $3,200,000 (the "Series 2007 Bonds"). The Series 2007 Bands will be issued under substantially the terms described for Refmancing Notes under section 3.10 hereof, and the Series 2007A Bonds will be treated as Refinancing Notes for the purposes of this Agreement except to the extent otherwise provided herein. Proceeds of the Series 2007A Bonds will be used to reimburse a portion of the Public Redevelopment Costs incurred by Redeveloper to date. The principal amount of the Series 2007 Bonds will be counted toward the maximum aggregate principal amount of Initial Notes under Section 3.8(b), as such amount may otherwise be adjusted under the terms of this Agreement. (i) Additional Initial Nates under Ancended and Restated Contc~act. Upon. approval of this Amended and Restated Contract, the Authority will also approve issuance of Initial Notes under the teens of this Section, in a principal amount equal to the balance of Public Redevelopment Costs incurred to date by Redeveloper in excess of the net amount to be disbursed fio~n proceeds of the 19 92 Series 2007 Bonds, subject to the maximum principal amount of Initial Notes under Section 3.8(b) as such amount may otherwise be adjusted under the terms of this Agreement. Section 3.y T IF Lookback. (a) Genet°ally. The financial assistance to Redeveloper under this Agreement is based on certain assumptions regarding likely costs and expenses affecting the Minimum Improvements and proceeds to be derived by the Redeveloper from the sale of the Redevelopment Property. Specifically, the maximum aggregate principal amount of the Initial Notes has been determined based on the amount of assistance needed to provide Redeveloper a 15 percent return on costs, as shown in the current Development Budget attached as Schedule H. The Authority and Redeveloper agree that those assumptions will be reviewed at the times described in this Section, and that the amount of Tax Increment assistance under Section 3.8 will be adjusted accordingly. (b) Master- Redeveloper. (i) For all portions of the Redevelopment Property, the Redeveloper shall submit certified cost and revenue analysis to the Authority's financial advisor in the form of the Development Budget and prepared in accordance with generally accepted accounting principles. As shown in Schedule H, the Development Budget shall include a contingency for increases in cost of $100,000, but any other cost changes shall be handled in accordance with subsection (ii) of this paragraph (b). Further, the following costs will be excluded from calculation of return on costs: (1) the monthly administration fee for Redeveloper's activities as the master Redeveloper equal to $10,000 per month from January 1, 2004 through the date of sale of the last housing unit for all Phases (but not to exceed 50 months); (2) the principal amount of any Redeveloper Subordinate Note issued under Section 3.6(c); and (3) any increase in the value of the SR Parcel determined under Section 3.1(c) over the value of such Parcel reflected in the original Development Budget. The Redeveloper agrees to provide to the Authority's consultant any background documentation related to the financial data, upon request. The Authority may retain. an accountant to audit the submitted Development Budget, at Redeveloper's cost. The Development Budget must be submitted (1) within 60 days after substantial completion of each Phase; and (2) before issuance of the final Initial Note that will bring the aggregate principal amount of all Initial Notes to the maximum specified in Section 3.8(b). (ii) At the time of final_ review under ci_ause (i) above, the Authority will determine whether the aggregate actual costs are higher or lower than projected in Schedule H. If the actual costs (excluding any costs paid by grants or other sources of public financing) are higher, the maximum aggregate principal amount of Initial Notes will be increased by 80 percent of such next excess figure, plus 15 percent of the product of that calculation. This increase will be added to the final Initial Note, subject to compliance with all other terms and conditions of Section 3.8. If the actual costs (excluding any costs paid by grants or other sources of public financing) are lower than shown in Schedule H, the maximum aggregate principal amount of Initial Notes will be reduced by 50 percent of such net savings figul°e, and by 15 percent of the product of that calculation. The reduction will be applied to reduce the principal amount of the final Initial Note, or, if the reduction exceeds the potential amount of final Initial Note, will be applied as prepayment of the outstanding principal amount of any outstanding Initial Note. Such prepayment will be effective upon delivery to Redeveloper of a written notice stating the amount of required prepayment determined by the Authority in accordance with this Section. 2a 93 (c) Redeveloper as constructor. For all portions of the Redevelopment Property where Redeveloper constructs the Phase or portions thereof, before commencement of construction the Authority and Redeveloper shall mutually agree in writing on a development pro forma for that Phase or portion thereof allowing far 12 percent net profit to Redeveloper. The pro forma must be in substantially the form of the prototype Redeveloper Pro Forma attached as Schedule I, and net profit will be calculated substantially as described in that schedule. The parties agree and understand that the pro forma will permit administrative costs and overhead costs in the amount of $5,000 per month for up to 20 months, which amounts are excluded from net profit. Within 60 days after substantial completion of the relevant Minimum Improvements, the Redeveloper shall submit certified cost and revenue analysis to the Authority's financial advisor in the form of the final Master Redeveloper Pro Forma and prepared in accordance with generally accepted accounting principles. The Redeveloper agrees to provide to the Authority's consultant any background documentation related to the financial data, upon request. The Authority may retain an accountant to audit the submitted Redeveloper Pro Forma, at Redeveloper's cost. At the time of final review under this paragraph, the Authority will determine whether the net profit is higher or lower than 12.0 percent. If the net profits exceed 12.0 percent but are less than 15.0 percent, then 25 percent of the excess profit will be applied to reduce the principal amount the Initial Note related to that Phase or portion thereof. If the net profits exceed 15.0 percent, then 50 percent of the excess profit will be applied to reduce the principal amount of the Initial Note related to that Phase or portion thereof. In each case, the reduction will be applied to reduce the principal amount of the relevant Initial Note if it has not been issued at the time of this calculation, or will be applied to prepayment if the relevant Initial Note is outstanding. Such prepayment will be effective upon delivery to Redeveloper of a written notice stating the amount of required prepayment determined by the Authority in accordance with this Section. Any prepayment or reduction under this paragraph is in addition to the prepayment and reduction described in paragraph (b). Section 3.10. Authority Refinancing of Initial Notes (a) Generally. Upon Redeveloper's request, the Authority will refinance the outstanding principal amount of any Initial Note by issuing one ar more tax-exempt tax increment revenue notes or bonds (the "Refinancing Notes") to one or more third parties, subject to the terms and conditions contained herein. The Refinancing Notes may be issued in one or more series, or in series over time. Refinancing Notes will be secured solely by Available Tax Increment. Redeveloper and the Authority will reasonably and timely cooperate with the refinancing efforts, including providing requested information and attorney opinions and signing documents. Redeveloper shall be solely responsible for securing buyer(s) for the Refinancing Notes. (b) Principal Arnoatnt, Terlns. Issuance of any Refinancing Note is subject to the following terms and conditions: (1) The revenue stream for Refinancing Notes will be based on estimates of Available Tax Increment from the relevant Minimum Improvements for the duration of the TIF Distl-ict based on the actual estimated market value (as determined by the County Assessor's Offace} of the relevant portion of the Minimum Improvements constaucted thereon, including a I percent annual inflation factor; 21 94 (2) Estimates of Available Tax Increment (reviewed and approved by the Authnritvl must nrnvirie at least 17(1 percent r1Pht cervinP envPraQa nn the RPfinanrina Notes, subject to adjustment if market conditions permit less and the Authority approves. (3) The Authority must approve the underwriter and all underwriting terms and assumptions, provided that the Authority's consent will not be unreasonably withheld; (4) No Refinancing Note will be issued later than 18 months after the later of (i} the date the expenditures for Public Redevelopment Costs allocated to the relevant Initial Note were paid, or (ii) the date the facilities financed by the Initial Note are placed in service but no later than 3 years after the date of the original expenditure of the Public Redevelopment Costs related to that Initial Note. However, if a Refinancing Note is eligible for the small-issuer rebate exception under Section 148(f)(f)(D) of the Internal Revenue Code of 1986 as amended, the "18 month" limitation above is changed to " 3 years" and the " 3-year" maximum period in clause (ii) is disregarded. This paragraph does not apply if (1) the Refinancing Note is issued on a taxable basis, or (2) the Authority receives an opinion of anationally-recognized bond counsel selected by the Authority to the effect that the Refinancing Note represents refunding of an "obligation" as defined in Treasury Regulations 1.150-1(b). (5) Issuance of any Refmancing Note is subject to market, legal and timing constraints described in paragraph (c) below. (6) All Refinancing Notes will be issued on a parity basis with one another, including the Series 2007 Bonds, subject to the conditions for issuance of such parity debt set forth in the Paying Agent Agreement between the Issuer and Band Trust Services Corporation dated August 1, 2007, entered into in connection with issuance of the Series 2007 Bonds. (c) Timiizg. Notwithstanding the foregoing, the Authority shall have the option to delay issuance of any Refinancing Note ternpoi°arily oi° fo~• as long as the fallowing conditions exist: (1) The Authority is prohibited from issuing any Refinancing Note pursuant to changes in federal law enacted after the date of this Agreement; (2} Substantial adverse changes in the market conditions have occurred that make it infeasible to refinance a Initial Note on a reasonable basis, as confirmed by a bond underwriter to the Redeveloper and Authority in writing; or (3} Delay is necessary to ensure that either the Authority or City will issue less than $10,000,000 of "qualified exempt obligations" (as defined in Section 265(b}(3) of the Internal Revenue Code of 1986, as amended} in the year of issuance of the Refinancing Notes; provided that the Authority may not delay issuance under this clause if such delay would extend issuance past the time required for issuance of a Refinancing Note under Section 3.10(b}(4}. z2 95 (d) Redeveloper Responsibility Upo~a Refiraa~ici~ag. If the Authority determines that the nat nrnraarlc of a cariPC of RPfinanrin~r Nntac xx~ill ha inenffir~iPnt to rxrPr.av the Pr~txrP nrinnirxal ..,.. t,.,,,,.,....., ... .. .,......., .,. ~e....~.......~..b , ...,..J., .. ... ~... ,...,,....,.,...... w t...,t,~.y «~v .~~~«... t..~~~.,,t,ux amount of the relevant outstanding Initial Note or that the Refinancing Notes cannot be issued, the Redeveloper shall: (1) upon issuance of the Refinancing Notes and application of proceeds to pay the outstanding balance of the relevant Initial Note to the extent possible, return the relevant Initial Note to the Authority along with an unconditional release from the Redeveloper and any assignee owner of the Initial Note, which terminates the Authority's obligations with respect to the unpaid principal of and accrued interest on the Initial Note; (2) provide written assurances to the Authority, deemed acceptable to the Authority, that the Redeveloper will deliver to the Authority on or before the date of issuance of the Refinancing Notes an amount which, along with the net proceeds of the Refinancing Notes, will be sufficient to prepay the relevant outstanding Initial Note (the "Cash Requirement"); and deliver the Cash Requirement to the Authority, in immediately available funds, no later than fifteen (15) days prior to the issuance of the Refinancing Notes, in which event the Authority will issue and the Redeveloper will accept a subordinate tax increment revenue note in the amount of the Cash Requirement, secured by Available Tax Increment subordinate to the Refinancing Notes and any outstanding Authority Subordinate Note; or (3) provide a written notice to the Authority that Redeveloper waives its right to request issuance of the relevant Refinancing Notes, in which event the relevant Initial Note will not be prepaid but will remain in full force and effect. (e) Excess Proceeds of Refinancing Notes. If the Authority determines that the net proceeds of a series of Refinancing Notes will exceed the amount needed to prepay the relevant outstanding Initial Nate, such excess proceeds will be applied to prepay to the Authority Subordinate Note and the Redeveloper Subordinate Note under the terms described in Section 3.6(c). (f) Redeveloper Represefztatio~~s. The Redeveloper makes the following representations to the Authority with respect to the Refinancing Notes: (I } The Redeveloper will take no action, and will not fail to take an action, the effect of which will be to cause any Refinancing Note to be determined to be a "private activity bond" (as such term is defined in Section 141 of the Internal Revenue Code of 1986, as amended (the "Code") and in applicable Treasury Regulations promulgated pursuant to applicable provisions of the Code (the "Regulations"} (2} The Redeveloper will take no action, and will not fail to take an action, the effect of which will be to cause the "private security or payment test" (as such term is defined in Section 141. of the Code and in applicable Regulations) or the "private loan 23 96 financing test (as such term is defined in Section 141 of the Code and in applicable Regulations to be satisfied with respect to the Refinancing Notes. (3) The Redeveloper will take no action, and will not fail to take an action, the effect of which will be to cause any Refinancing Note to be determined to be an "arbitrage bond"(as such term is defined in Section 148 of the Code and in applicable Regulations). (4} The Redeveloper will take no action, and will not fail to take an action, the effect of which will be to cause interest on any Refinancing Note to be includable in gross income for federal income tax purposes. (g) Other Qualifications. Notwithstanding anything to the contrary in this Agreement, from and after the date of issuance of any Refinancing Note, the Authority shall have no right to enforce, and the Redeveloper shall have no obligations under Sections 6.1 and 8.3 of this Agreement, unless and to the extent that the Authority shall have received an opinion of a nationally-recognized bond counsel selected by the Authority to the effect that the receipt by the Authority of such payment will not cause the interest on the Refinancing Notes to become includable in gross income of the holder thereof for purposes of federal income taxation. Section 3.11. Payment of Authority Costs. The Redeveloper is responsible to pay "Authority Costs," which team means out-of pocket-costs incurred by the City or Authority after December 1, 2003 for: (i) the Authority's financial advisor in connection with the Authority's financial participation in redevelopment of the Redevelopment Property, including without limitation all costs related to establishment of any development or tax increment financing districts, (ii) the City or Authority's legal counsel in connection with negotiation and drafting of the Preliminary Agreement, this Agreement and any related agreements or documents, and any legal services related to the Authority's financial participation in redevelopment of the Property; (iii) any consultants retained in connection with analysis of the Redevelopment Property for eligibility for designation as a redevelopment project or as a redevelopment tax increment financing district; (iv) any consultants retained in connection with the preparation and approval of an EAW and any other state or federal approval for the Redevelopment; and (v) consultants retained by the City and Authority for planning, environmental review, and engineering for the Redevelopment, including the zoning and Land use approvals and Public Improvements feasibility studies and approvals and applications for any additional grant funding. Costs in connection with the environmental remediation of Phase I shall not be Authority Costs and shall be funded by the grants obtained for such purpose. In addition City and Authority staff costs and costs and expenses shall not be Authority Costs. (b) At any time, but not more often. than monthly, the City or Authority may request payment of Authority Costs, and the Developer agrees to pay all Authority Costs (in excess of the initial deposit made under the Preliminary Development Agreement), within ten days of the City or Authority's written request, supported by suitable billings, receipts or other evidence of the amount and nature of Authority Costs incurred. At Redeveloper's request, but no more often than monthly, the Authority will provide Developer with a written report on current and anticipated expenditures for Authority Costs, including invoices or othet• comparable evidence. Any Authority Costs paid by Redeveloper are a Public Redevelopment Cost reimbug-sable under Section 3.8 to the extent permitted by law. 24 97 Section 3.12. Business Subsidy. (a) The parties agree and understand that any assistance provided to the Redeveloper under this Agreement with re~nect to PhacPC T is not a "hncinPac cnhcidv" under the Business Subsidy Act because the Tax Increment assistance is primarily for housing and entirely for redevelopment property polluted by contaminants as defined in Minnesota Statutes, Section 1161.552, subd. 3; and the DEED and Met Council grant assistance is entirely for pollution control and abatement. In addition, any assistance provided with respect to Phases II and III is entirely for housing and for redevelopment property polluted by contaminants. (b) Notwithstanding the exclusion of the assistance under this Agreement from the defmition of business subsidy, Redeveloper shall file the reports required under Section 1161.994, subd. 7 (c) of the Business Subsidy Act by March 1 of each year, commencing March 1, 2005 and continuing until issuance of the final Certificate of Completion for all three Phases. For the purposes of such reports, the parties agree and understand that the goals of the assistance are to accomplish the cleanup of contaminants on the Redevelopment Property, and to achieve redevelopment of the property as evidenced by completion of the Minimum Improvements according to the phasing schedule described in Article IV. The form of the report is further described in Section 4.8 hereof. If the Redeveloper fails to timely file any report required under this Section, the Authority will mail the Developer a warning within one week after the required filing date. If, after 14 days of the postmarked date of the warning, the Redeveloper fails to provide a report, the Redeveloper must pay to the Authority a penalty of $100 for each subsequent day until the report is filed. The maximum aggregate penalty payable under this Section is $1,000. (c) The Redeveloper releases and waives any claim against the Authority and the City and the governing body members, officers, agents, servants and employees thereof arising from application of the Business Subsidy Act to this Agreement, including without limitation any claim that the Authority failed to comply with the Business Subsidy Act with respect to this Agreement. Section 3.13. Other Grants. The Authority, City and Redeveloper will cooperate to obtain other grants to fund costs of the redevelopment described in this Agreement, including without limitation Metropolitan Council Liveable Communities Funds. To the extent obtained, such funds shall provide enhanced amenities or offset other public costs. 25 s$ ARTICLE IV r'nnctrmtrtinn of Minimaam Taxanrne~nax nsafn sa n.a D,. hl:.. i.~.~e ..4.. lalawa V r 4.aaaLaa lO [laau 1 ua)1aL 11aaNl VVGalaCaa L.1. Section 4.1. Construction of Minimum Improvements. The Redeveloper agrees that it will construct or cause (through a Subdeveloper as provided herein or otherwise) construction of the Minimum Improvements on the Redevelopment Property, in accordance with approved Construction Plans and at all times while Redeveloper owns the Redevelopment Property, will operate, maintain, preserve and keep the respective components of the Minimum Improvements or cause such components to be operated, maintained, preserved and kept with the appurtenances and every part and parcel thereof, in goad repair and condition. Section 4.2. Master Site Plan and Construction Plans. (a) Master Site Plan. The Master Site Plan for the Redevelopment Property as of August 1, 2007 is attached hereto as Schedule B. The parties agree and understand that the Master Site Plan may be refined and modified as part of the review and approval process for each plat, subject to approval by the Authority. (b) Construction Plans. Before commencing construction of each Phase, the Redeveloper shall submit to the Authority Construction Plans for the subject Phase. The City's chief building official and community development director will review and approve all Construction Plans on behalf of the Authority, and for the purposes of this Section the teen "Authority" means those named officials. The Construction Plans shall provide for the construction of the subject Phase and shall be in conformity with this Agreement, the Master Site Plan as it may be revised, the Design Guidelines, the TIF Plan, the relevant Planning Contract and all applicable State and local laws and regulations. The Authority will approve the Construction Plans in writing or by issuance of a permit if (i) the Construction Plans conform to all terms and conditions of the Master Site Plan, the Design Guidelines, this Agreement, the final plat for the relevant Phase and the relevant Planning Contract; (ii) the Construction Plans conform to the goals and objectives of the TIF 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 subject Phase; and (v) there is no uncured Event of Default. i~1o approval by the Authority snail relieve the Redeveioper of the obligation to comply with the teams of this Agreement, applicable federal, state and local laws, ordinances, rules and regulations, or to construct the subject Phase in accordance therewith. No approval by the Authority shall constitute a waiver of an Event of Default, or waiver of any State or City building or other code requirements that may apply. Within 30 days after receipt of complete Construction Plans and permit applications for a building within any Phase, the Authority will deliver to the Redeveloper an initial review letter describing any comments or changes requested by Authority staff. Thereafter, the parties shall negotiate in good faith regarding final approval of Construction Plans for that building. The Authority's approval shall not be unreasonably withheld or delayed. Said approval shall constitute a conclusive determination that the Construction Plans (and the subject Phase, constructed in accordance with said plans) comply to the Authority's satisfaction with the provisions of this Agreement relating thereto. The Redeveioper hereby waives any and all claims and causes of action whatsaever resulting from the review of the Construction Plans by the Authority and/or any changes in the Construction 26 99 Plans requested by the Authority, except for any failure by Authority to perform its obligations under this Section. Neither the Authority, the City, nor any employee or official of the Authority or City C}151~~ }1P YPCiI(lYi C1~1~P tYi AY1[7 Mannar av}eat~+~en~~nr ~ r . rlm~ !.+ :,z t'4,., ('~.......~...,,.~: ,.« TTi ,.... ,. ... ___t_ ----- ~_ _.,.,r ............. .......~ ,.......~..,, ..~,ud„~,dd..~ a.,~ aii`y ua.iti.~.~ ui uie, ~.vii~uu~uvu r iaii~ yr lit arty wutx done pursuant to the Construction Plans, including changes requested by the Authority. (c) Construction Plan Changes. If the Redeveloper desires to make any material change in the Construction Plans or any component thereof after their approval by the Authority, the Redeveloper shall submit the proposed change to the Authority for its 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 Authority shall approve the proposed change and notify the Redeveloper in writing of its approval. Such. change in the Construction Plans shall, in any event, be deemed approved by the Authority unless rejected, in whole or in part, by written notice by the Authority to the Redeveloper, setting forth in detail the reasons therefor. Such rejection shall be made as soon as reasonably practicable but in any event within 30 days after receipt of the notice of such change. 'The Authority's approval of any such change in the Construction Plans will not be unreasonably withheld. Section 4.3. Completion of Construction. (a} Subject to Unavoidable Delays and the provisions of paragraphs (b) and (c) below, the Minimum Improvements must be constructed in accordance with the following schedule: Phase I: As of the date of this Amended and Restated Contract, the internal site improvements and at least 80 percent of the required number of units for Phase IA are complete. Redeveloper must substantially complete all internal site improvements for Phase IB, including roads, and at least 80 percent of required number of housing units for Phase IB, by December 31, 2008. Phase II: As of the date of this Amended and Restated Contract, Phase IIA is under construction. Redeveloper must substantially complete all internal site improvements, including roads, together with at least 80 percent of required number of housing units for Phase IIA, by July 31, 2008. Redeveloper must substantially complete all internal site improvements, including roads, together with at least 80 percent of required number of housing units for Phase IIB, by December 31, 2009. Phase III: Redeveloper must construct and complete all internal site improvements, including roads, and. at least 80 percent of the required number of pausing units, according to the following schedule: Phase IIIA: Commence by December 31, 2008; complete by December 31, 2010. Phase IIIB: Commence by December 31, 2010; complete by December 31, 201.2. 27 100 Phase IIIC: Commence by December 31, 2012; complete by December 31, 2014. (b} The parties agree and understand that the number and type of units and construction schedule for each Phase may be adjusted, subject to approval by the Authority Representative, except that if the total number of units for any Phase is reduced by 10 percent or more, such change must be approved by the Authority's board of commissioners. The parties also acknowledge that the final numbers and types of units will be specified in the Planning Contract for each Phase. (c) AlI work with respect to the Minimum Improvements to be constructed or provided by the Redeveloper on the Redevelopment Property shall be in substantial. conformity with the Construction Plans as submitted by the Redeveloper and approved by the Authority, and with the Planning Contract. If the Redeveloper is making substantial progress with respect to the redevelopment project, and is unable to meet one or more of the above-referenced deadlines, the Authority and the Redeveloper shall negotiate in good faith for a reasonable period to extend the time in which necessary action(s) must be taken or occur, the lapse of which time would otherwise constitute a default under this Agreement. The Redeveloper agrees for itself, its successors and assigns, and every successor in interest to the Redevelopment Property, or any part thereof, that the Redeveloper, and such successors and assigns, shall promptly begin and diligently prosecute to completion the redevelopment of the Redevelopment Property through the construction of the Minimum Improvements thereon, and that such construction shall in any event be commenced and completed within the period specified in this Section 4.3 of this Agreement. Upon an approved assignment to a Subdeveloper pursuant to Section 8.2, it is understood that the obligation of the Redeveloper as regards any portion of the Project so assigned shall be limited or terminated in accordance with the approved assigmment. Subsequent to conveyance of the Redevelopment Property, or any part thereof, to the Redeveloper, and until construction of the Minimum Improvements has been completed, the Redeveloper shall make reports, in such detail and at such times as may reasonably be requested by the Authority, as to the actual progress of the Redeveloper with respect to such construction. Section ~.4. Certificate of Completion. (a} Promptly after substantial completion of the Minimum Improvements (and each Phase thereof) in accordance with those provisions of the Agreement relating solely to the obligations of the Redeveloper to construct the Minimum Improvements (including the dates for completion thereof), the Authority will furnish the Redeveloper with a Certificate of Completion in substantially the form attached as Schedule C. Such certification by the Authority shall be a conclusive determination of satisfaction and termination of the agreements and covenants in the Agreement and in any deed with respect to the obligations of the Redeveloper, and its successors and assigns, to construct the relevant Phase of the Minimum Improvements and the dates for the completion thereof. Such certification and such determination shall not constitute evidence of compliance with. or satisfaction of any obligation of the Redeveloper to any Holder of a Mortgage, or any insurer of a Mortgage, securing money loaned to finance the Minimum Improvements, or any part thereof. 2$ 101 {b) Upon Redeveloper's request, the Authority shall famish to the Redeveloper a Certificate of Completion for each housing unit upon substantial completion of such unit, as evidenced by issuance of a certificate of occupancy therefor by the responsible inspecting authority. (c) Each Certificate of Completion provided for in this Section 4.4 of this Agreement shall be in such farm as will enable it to be recorded in the proper office far the recordation of deeds and other instruments pertaining to the Redevelopment Property. If the Authority shall refuse or fail to provide airy certification in accordance with the provisions of this Section 4.4 of this Agreement, the Authority shall, within thirty (30) days after written request by the Redeveloper, provide the Redeveloper with a written statement, indicating in adequate detail in what respects the Redeveloper has failed to complete the Minimwn Improvements in accordance with the provisions of the Agreement, or is otherwise in default, and what measures or acts it will be necessary, in the opinion of the Authority, for the Redeveloper to take or perform in order to obtain such certification. (d} The construction. of the Minimum Improvements or any Phase thereof shall be deemed to be substantially complete for the purposes of this Agreement when the Redeveloper has received a certificate of occupancy from the City for the required number of housing units specified in Section 4.3(a) for that Phase, and the specified site improvements for that Phase have been substantially completed as reasonably determined by the Authority Representative. In the case of Phase I, the certificate of occupancy for commercial improvements may exclude tenant build-outs. Section 4.5. Grant Covenants. (a) As required under the DEED Grant Agreement for Phase I, at least 10 percent of the number of units required for Phase I must be sold initially at a purchase price not to exceed 110 percent of the maximum affordable price under Met Council guidelines in effect in the year of the sale. As a condition to issuance of a Certificate of Completion for Phase I (and in any event, prior to issuing any Refinancing Note related to Phase I}, Redeveloper shall submit to the Authority evidence of compliance with this Section, including at a minimum certificates of real estate value delivered at closing for the required number of units. The parties agree and understand that, as of the date of this Amended and Restated. Contract, the requirements of this paragraph regarding Phase I have been. met. (b} If the Authority or City receives DEED cleanup grants for Phase II and/or III, and the grant imposes similar requirements, the provisions of paragraph (a} shall apply for those Phases. As of the date of this Amended and Restated Contract, Redeveloper acknowledges its continuing obligation regarding maximum sales price with respect to Phases II and III, in order to comply with DEED grant agreements for those phases. Section 4.6. Association Covenants. (a) Upon execution of the Planning Contract for each Phase or portion thereof, the Authority shall be entitled to review and approve the initial articles, bylaws and declaration of restrictive covenants for the townhome or condominium association (the ``Association") to be created (collectively, the "Housing Association Documents"). (b) The Housing Association Documents shall include at least the following provisions, unless and to the extent any provisions are prohibited by rules of federal agencies, quasi-federal 29 102 agencies or similar nationally recognized entities providing financing or guarantees for construction or purchase of the Minimum Improvements: (i) a requirement that eacl. unit ov~ner be a member of the Association; (ii) a requirement that the Association have the authority to assess unit owners; (iii} a requirement that the Association establish a maintenance fund for exteriors, common areas and utilities including an annual assessment per unit reasonably acceptable to the Authority; and (iv} along-teen plan providing for maintenance and replacement reasonably acceptable to the Authority, describing the timing, cost and monthly assessment needed to pay such costs. Section 4.7. Records. The Authority, the Met Cowicil, DEED, the Legislative Auditor and the State Auditor's office, through any authorized representatives, shall have the right after reasonable notice to inspect, examine and copy all books and records of Redeveloper relating to the Public Redevelopment Costs and the Minimum Improvements. Redeveloper shall also use reasonable efforts to cause the contractor or contractors, all sub-contractors and their agents and lenders to make their books and records relating to the Public Redevelopment Costs available to the Authority, upon reasonable notice, for inspection, examination and audit. Redeveloper shall maintain such records and provide such rights of inspection for a period of six years after issuance of the Certificate of Completion for the Minimum Improvements. Section 4.8. Reports. The Redeveloper must submit to the Authority a written report at least quarterly, commencing March 1, 2005 and continuing until issuance of the Certificate of Completion for the final Phase of the Minimum Improvements. The report must describe progress on construction of the Minimum Improvements and must comply with the DEED Grant Agreement, the Met Council Grant Agreement, and. Section 116J.994, subd. 7(c} of the Business Subsidy Act. The Authority will provide information to the Redeveloper regarding the required forms. Section 4.9. Acknowled_ements. During work on the Public Redevelopment Costs and the Minimum Improvements, Redeveloper must post a sign on the site containing the following or similar language: This project was financed in part through the Columbia Heights Economic Development Authority, with grant funds provided by the Meh°opolitan Council through the Livable Communities Demonstration Account of the Metropolitan Livable Conununities Fund, and by the Minnesota Department of Employment and Economic Development. Section 4.10. Construction of Public Improvements. (a) City Responsibilities. The City will construct the Parkway; all sewer and water utilities in the Parkway right of way; and. the storm sewer improvements and open space improvements i~n the area dedicated in the plat for storm water ponding (collectively, the "Public Improvements"). The City will consult with Redeveloper regarding final plans for the Public Improvements and reasonably respond to Redeveloper comments on such plans. City will construct the Public Improvements in a time flame consistent with the construction schedule for the Minimum Improvements. 30 1Q3 (b) Redeveloper Responsibilities. The Redeveloper will construct, at its cost, all interior roads and. associated infrastructure. As noted in Section 3.4, the Redeveloper will. dedicate the Parkway right of way as a public street. The City and Redeveloper will mutually agree whether interior roads in each Phase will be private or dedicated to the public (such determination to be specified in the relevant the Planning Contract). Notwithstanding anything to the contrary in this Section, a determination that interior roads will be dedicated to the public will not relieve Redeveloper's obligation to pay the cost of construction. All costs incurred by Redeveloper under this paragraph are a Public Redevelopment Cost reimbursable in accordance with Section 3.8. (c) Financing of Public Improvements. Costs of the Public Improvements will be allocated between the City and Redeveloper substantially in accordance with the Public Improvements Budget attached as Schedule F. Such budget is subject to modification by mutual agreement of the City and Redeveloper as final plans are developed. The City currently expects to finance its portion of Public Improvement costs from a combination of Minnesota Department of Transportation. state aid funds and City utility funds. The Redeveloper's portion of the Public Improvement Costs will be specially assessed against the Redevelopment Property. Before the City awards bids for any portion the Public Improvements, the Redeveloper must execute and deliver to the City a petition and waiver agreement in a form acceptable to the City, under which Redeveloper accepts special assessments in the amount shownl in the Public Improvement Budget (as it may be modified), and waives all rights to challenge such assessments. (d) In connection with construction of the Parkway, the City experienced cost overruns in the amount of $ 150,000 created by the need for remediation of unexpected contamination in the Parkway right of way. Upon execution of this Amended and Restated Contract, Redeveloper shall reimburse the City for $75,000 of such casts (which payment is eligible for treatment as a Public Redevelopment Cost to extent not otherwise reimbursed from grant proceeds as described hereinafter). The Authority will reimburse the City for its $75,000 share of such costs through an Interfund loan under the terms of this paragraph (referred to as the "Parkway Interfund Loan"). The principal amount, together with interest at the rate of 5% accrued from August 1, 2007, is payable from Available Tax Increment on each August 1 and February 1 commencing February 1, 2008 and continuing until the Parkway Interfund Loan is paid in full or the date of last receipt of Available Tax Increment, whichever occurs first. The pledge of Available Tax Increment to the Parkway Interfund Loan is (i) subordinate to the pledge of such revenue to any outstanding Refinancing Notes (including the Series 2007 Bonds), as such subordination may be further explained or qualified in the resolution or indenture under which Refinancing Notes are issued, and (ii) in a shared position with any outstanding Initial Notes, such that 50 percent of the Available Tax Increment remaining on any payment date under any Initial Notes, after payment or provision for payment of amounts then due under the Series 2007 Bonds and. any other outstanding Refinancing Notes, is pledged to the Parkway Interfund Loan, and the remaining 50 percent is pledged to any outstanding Initial Notes. Notwithstanding anything to the contrary herein, (a) before applying its share of Available Tax Increment to the Parkway Interfund Loan, the Authority will apply toward payment of the Parkway Interfund Loan. in any year $22,000 of the Tax Increment received. as of any payment date (i.e. $l 1,000 on each semi-annual payment date}, representing a portion of the Tax Increment deducted from. the definition. of Available Tax Increment; and (b} to the extent proceeds of Met Council or DEED grants remain after payment of all Cleanup Costs under Article III, and such proceeds may legally be applied to contamination costs incurred in the Parkway, the City or Authority will apply 31 104 such excess grant proceeds first to prepay the Parkway Interfund Loan, and second to reimburse Redeveloper for its share of costs paid to the City under this paragraph. 32 105 ARTICLE V Insurance Section 5.1. Insurance. (a} The Redeveloper will provide and maintain at all times during the process of constructing the Minimum Improvements an All Risk Broad Form Basis Insurance Policy and, from time to time during that period, at the request of the Authority, furnish the Authority with proof of payment of premiums on policies covering the following: (i) Builder's risk insurance, written on the so-called "Builder's Risk -- Completed Value Basis," in an amount equal to one hundred. percent (1.00%) of the insurable value of the Minimum Improvements at the date of completion, and with coverage available in nonreporting form on the so-called "all risk" form of policy. The interest of the Authority shall be protected in accordance with a clause in form and. content satisfactory to the Authority; (ii} Comprehensive general liability insurance (including operations, contingent liability, operations of subcontractors, completed operations and contractual liability insurance) together with an Owner's Contractor's Policy with limits against bodily injury and property damage of not less than $2,000,000 for each occurrence, and shall be endorsed to show the City and Authority as additional insured (to accomplish the above-required limits, an umbrella excess liability policy may be used); and (iii} Workers' compensation insurance, with statutory coverage. (b) Upon completion of construction of the Minimum Improvements and prior to the Termination Date, the Redeveloper shalt maintain, or cause to be maintained, at its cost and expense, and from time to time at the request of the Authority shall fumish 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 $2,000,000 and shall be endorsed to show the City and Authority as additional insureds. (iii) Such other insurance, including workers' compensation insurance respecting all employees of the Redeveloper, in such amount as is customarily carried by Like organizations engaged in like activities of comparable size and liability exposure; provided that the Redeveloper may be setf-insured with respect to atl or any part of its liability for workers' compensation. 33 106 (c) All insurance required in Article V of this Agreement shall be taken out and maintained in responsible insurance companies selected by the Redeveloper that are authorized wilder the laws of the State to assume the risks covered thereby. Upon request, the Redeveloper will deposit annually with the Authority a certifcate or certificates or binders ofthe 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 Redeveloper and the Authority at least 30 days before the cancellation or modification becomes effective. In lieu of separate policies, the Redeveloper may maintain a single policy, blanket or umbrella policies, or a combination. thereof, having the coverage required herein, in which event the Redeveloper shall deposit with the Authority a certificate or certificates of the respective insurers as to the amount of coverage in force upon the Minimum Improvements. Any insurance required under this Article may be provided separately by Phase or building. {d) The Redeveloper agrees 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 Redeveloper wilt forthwith 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 Redeveloper will apply the net proceeds of any insurance relating to such damage received by the Redeveloper to the payment or reimbursement of the costs thereof. The Redeveloper shall complete the repair, reconstruction and restoration of the Minimum. improvements, regardless of whether the net proceeds of insurance received by the Redeveloper 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 the Redeveloper. Section 5.2. Subordination. Notwithstanding anything to the contrary herein, the rights of the Authority with respect to the receipt and application of any insurance proceeds shall, in all respects, be subordinate and subject to the rights of any Holder under a Mortgage allowed pursuant to Article VII of this Agreement. Section 5.3. Qualifications. Notwithstanding anything herein to the contrary, the parties acknowledge and agree that: (a) The provisions of Section 5.1 hereof shalt not apply to a housing unit from and after the date that such unit is substantially completed and sold to an owner-occupant. (b) Upon transfer of the Redevelopment Property or portion thereof to another person or entity except for sales to owner-occupant, the Redeveloper will remain obligated under Section 5.1 hereof relating to such portion transferred, unless the Redeveloper is released from such obligations in accordance with the terms and conditions of Section 8.2(b) or 8.3 hereof. 34 107 ARTICLE VI Tax Increment; Taxes Section 6.1. Right to Collect Delinquent Taxes. The Redeveloper acknowledges that the Authority is providing substantial aid and assistance in furtherance of the redevelopment described in this Agreement, in part through issuance of the Note. The Redeveloper understands that the Tax Increments pledged to payment of the Note are derived from real estate taxes on the Minimum Improvements, which taxes must he promptly and timely paid. To that end, the Redeveloper agrees for itself, its successors and assigns, in addition to the obligation pursuant to statute to pay real estate taxes, that it is also obligated by reason. of this Agreement to pay before delinquency all real estate taxes assessed against the Redevelopment Property and the Minimum Improvements. The Redeveloper acknowledges that this obligation creates a contractual right on behalf of the Authority through the Termination Date to sue the Redeveloper or its successors and assigns to collect delinquent real estate taxes and airy penalty or interest thereon and to pay over the same as a tax payment to the county auditor. 1n any such suit, the Authority shall also be entitled to recover its costs, expenses and reasonable attorney fees. Section 6.2. Review of Taxes. The Redeveloper agrees that prior to the Termination Date, it will not cause a reduction in the real property taxes paid in respect of the Redevelopment Property through: (A) willful destruction of the Redevelopment Properly or any part thereof; or (B) willful refusal to reconstruct damaged or destroyed properly pursuant to Section 5.1 of this Agreement. The Redeveloper also agrees that it will not, prior to the Termination Date, apply for a deferral of property tax on the Redevelopment Property pursuant to any law, or transfer or permit transfer of the Redevelopment Property to any entity whose ownership or operation of the property would result in the Redevelopment Property being exempt from real estate taxes under State law (other than any portion thereof dedicated or conveyed to the City or Authority in accordance with this Agreement). Section 6.3. Qualifications. Notwithstanding anything herein to the contrary, the parties acknowledge and agree that: (a) The provisions of Sections 6.1 and 6.2 hereof shall not apply to a housing unit from and after the date that such unit is substantially completed and sold to an owner-occupant. (b) Upon transfer of the Redevelopment Property or portion thereof to another person or entity except for sales to owner-occupants, the Redeveloper will remain obligated under Sections b.1 and 6.2 hereof relating to such portion transferred, unless the Redeveloper is released from such obligations in accordance with the terms and conditions of Section 8.2(b} or 8.3 hereof. 35 108 ARTICLE VII Financing Section 7.1. Mortgage Financing. (a) Before commencement of construction of any Phase, the Redeveloper shall submit to the City evidence of one or more commitments for financing which, together with committed equity for such construction, is sufficient for payment of the Minimum Improvements. Such commitments may be submitted as short teen financing, long term mortgage financing, a bridge loan with a long term take-out financing commitment, or any combination of the foregoing. (b) If the Authority finds that the financingrs sufficiently committed and. adequate in amount to pay the casts specified in paragraph (a) then the Authority shall notify the Redeveloper in writing of its approval. Such approval shall not be unreasonably withheld and either approval or rejection shall be given within twenty (20) days from the date when the Authority is provided the evidence of financing. A failure by the Authority to respond to such evidence of financing shall be deemed to constitute an approval hereunder. If the Authority rejects the evidence of financing as inadequate, it shall do so in writing specifying the basis for the rejection. In any event the Redeveloper shall submit adequate evidence of financing within ten (10) days after such rejection. (c) In the event that there occurs a default under any Mortgage authorized pursuant to Section 7.1 of this Agreement, the Redeveloper shall cause the Authority to receive copies of any notice of default received by the Redeveloper from the holder of such Mortgage. Thereafter, the Authority shall have the right, but not the obligation, to cure any such. default on behalf of the Redeveloper within such cure periods as are available to the Redeveloper under the Mortgage documents. In the event there is an event of default under this Agreement, the Authority will. transmit to the Holder of any Mortgage a copy of any notice of default given by the Authority pursuant to Article IX of this Agreement. (d} In order to facilitate the securing of other financing; the Authority agrees to subordinate its rights under this Agreement provided that such subordination shall be subject to such reasonable terms and conditions as the Authority and Halder mutually agree in writing. Notwithstanding anything to the contrary herein, any subordination agreement must include the provision described. in Section 7.1(c). 36 109 ARTICLE VIII Prohibitions Against Assignment and Transfer; Indemnification Section 8.1. Representation as to Redevelopment. The Redeveloper represents and agrees that its purchase of the Redevelopment Property, and its other undertakings pursuant to the Agreement, are, and. will be used, for the purpose of redevelopment of the Redevelopment Property and not for speculation in land holding. Section 8.2. Prohibition Against Redeveloper's Transfer of Property and Assignment of Agreement. The Redeveloper represents and agrees that until the Termination Date: (a) Except as specifically described in this Agreement, the Redeveloper has not made or created and will not make or create or suffer to be made ar created any total or partial. sale, assignment, conveyance, or lease, or any trust or power, or transfer in any other mode or form of or with respect to this Agreement or the Redevelopment Property or any part thereof or any interest therein, or any contract or agreement to do any of the same, to any person or entity (collectively, a ``Transfer"), without the prior written approval of the Authority's board of commissioners. The term ``Transfer" does not include (i} encumbrances made or granted by way of security for, and only for, the purpose of obtaining construction, interim or permanent financing necessary to enable the Redeveloper or any successor in interest to the Redevelopment Property or to construct the Minimum Improvements or component thereof, (ii) any lease, license, easement or similar arrangement entered into in the ordinary course of business related to operation of the Minimum. Improvements, or (iii) any sale, conveyance, or transfer in any form to any Affiliate. The parties agree and understand that Redeveloper intends to Transfer certain portions of the Redevelopment Property, along with certain rights and obligations of Redeveloper under this Agreement, to one or more third party developers ("Subdevelopers") who will construct portions of the Minimum Improvements. Any such Transfer is subject to the provisions of this Section. (b) If the Redeveloper seeks to effect a Transfer, the Authority shall be entitled to require as conditions to such Transfer that: (1) Any proposed transferee shall have the qualifications and financial responsibility, in the reasonable judgment of the Authority, neeessai°y and adequate to fulfill the obligations undertaken in this Agreement by the Redeveloper as to the portion of the Redevelopment Property to be transferred; and (2) Any proposed transferee, by instrument in writing satisfactory to the Authority and in form recordable in the public land records of Anoka County, Minnesota, shall, for itself and its successors and assigns, and expressly far the benefit of the Authority, have expressly assumed all of the obligations of the Redeveloper under this Agreemeit as to the pardon of the Redevelopment Property to be transferred and agreed to be subject to all the conditions and restrictions to which the Redeveloper is subject as to such portion, except that the "lookback provisions" of Section 3.9(c) shall not apply to a transferee; provided, however, that the fact that any transferee of, or ai7y ether successor in interest whatsoever to, the Redevelopment Property, or any part thereof, shall not, far whatever reason, have 37 110 assumed such obligations or so agreed, and shall not (unless and. only to the extent otherwise specifically provided in this Agreement or agreed to in writing by the Authority} deprive the Authority of anv rights or remedies or controls with respect to the Kedevelopment Property, the IvLinimum Improvements or any part thereof or the construction of the Minimum Improvements; it being the intent of the parties as expressed in this Agreement that (to the fullest extent permitted at law and in equity and excepting only in the manner and to the extent specifically provided otherwise in this Agreement} no transfer of, or change with respect to, ownership in the Redevelopment Property or any part thereof, or any interest therein, however consummated or occurring, and. whether voluntary or involuntary, shall operate, legally, or practically, to deprive or limit the Authority of or with respect to any rights or remedies on controls provided in or resulting from this Agreement with respect to the Redevelopment Property that the Authority would have had, had there been no such transfer or change. In the absence of specific written agreement by the Authority to the contrary, no such transfer or approval by the Authority thereof shall be deemed to relieve the Redeveloper, or any other party hound in any way by this Agreement or otherwise with respect to the Redevelopment Property, from any of its obligations with respect thereto. (3) Any and all instruments and other legal documents involved in effecting the transfer of any interest in this Agreement or the Redevelopment Property governed by this Article VIII, shall be in a form reasonably satisfactory to the Authority. (c) If the conditions described in paragraph (b) are satisfied, then the Transfer will be approved and the Redeveloper shall be released from its obligation under this Agreement, as to the portion of the Redevelopment Property that is transferred, assigned, or otherwise conveyed, unless the parties mutually agree otherwise. The Authority will review and respond to a request for Transfer within 45 days after receipt of a written. request. Notwithstanding anything to the contrary herein., any Transfer that releases the Redeveloper from its obligations under this Agreement (or any portion thereof} shall be approved by the Authority's board of commissioners. If the Redeveloper remains fully bound under this Agreement notwithstanding the Transfer, as documented in the transfer instrument, the Transfer may be approved by the Authority Represe..tative. The provisions of this paragraph (c} apply to all subsequent transferors. (d) Nothing in this Article VIII will be construed to require, as a condition for release of the Redeveloper hereunder or otherwise, that purchasers of any unit assume any obligations of the Redeveloper. Upon sale of any residential unit to an initial owner-occupant, the Authority will provide to Redeveloper or the buyer a certificate in recordable form releasing the unit from all encumbrances of this Agreement. (e) Notwithstanding anything to the contrary in this Agreement: (1) If a Phase is transferred under this Section in part but not in whole, and Redeveloper will. be, upon such. transfer, released from its obligations as to the portion transferred, as a condition to approval of the Transfer the Authority may designate the portion of Minimum Improvements far that Phase that are allocated to the transferred Parcel, such that the transferee is bound by all the terms of this Agreement as to the allocated number of housing units (or aYnotiu7t commercial improvements in the case of Phase I); and 38 111 (2) the "lookback provisions of Section 3.9(c} will not apply to any permitted transferee under this Section and no Initial Note issued to or held by a transferee shall be subiect to reduction or prepayment under the terms of Section 3.9(b}. Section 8.3. Release and Indemnification Covenants. (a) The Redeveloper releases from and covenants and agrees that the Authority and the City and the governing body members, officers, agents, servants and employees thereof shall not be liable for and agrees to indemnify and hold harmless the Authority and the City and the governing body members, officers, agents, servants and employees thereof against any loss or damage to property or any injury to or death of any person occurring at or about or resulting from any defect in the Minimum Improvements. (b} Except for willful or negligent misrepresentation, misconduct or negligence of the Indemnified Parties (as hereafter defined), and. except for any breach by any of the Indemnified Parties of their obligations under this Agreement, the Redeveloper agrees to protect and defend the Authority and the City and the governing body members, officers, agents, servants and employees thereof (the "Indemnified Parties"), now or forever, and further agrees to hold the Indemnified Parties 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. (c) Except for any negligence of the Indemnified Parties (as defined in clause (b} above), and except for any breach by any of the Indemnified Parties of their obligations under this Agreement, the Indemnified Parties shall not be liable for any damage or injury to the persons or properly of the Redeveloper or its officers, agents, servants or employees or any other person who may be about the Minimum Improvements due to any act of negligence of any person. (d) All covenants, stipulations, promises, agreements and obligations of the Authority contained herein shall be deemed to be the covenants, stipulations, promises, agreements and obligations of the Authority and not of any governing body member, officer, agent, servant or employee of the Authority in the individual capacity thereof. 39 112 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, any one or more of the following events, after the non-defaulting party provides 30 days written notice to the defaulting party of the event, but only if the event has not been cured within said 30 days or, if the event is by its nature incurable within 30 days, the defaulting party does not, within such 30-day period, provide assurances reasonably satisfactory to the party providing notice of default that the event will be cured and will be cured as soon as reasonably possible: (a) Failure by the Redeveloper or the Authority to observe or perform any covenant, condition, obligation, or agreement on its part to be observed or performed under this Agreement or the Planning Contract; (b} The Redeveloper: (i} files any petition in bankruptcy or for any reorganization, arrangement, composition, readjustment, liquidation, dissolution, or similar relief under the United States Bankruptcy Act or under any similar federal or State law; (ii) makes an assignment for benefit of its creditors; (iii} admits in writing its inability to pay its debts generally as they become due; or (iv) is adjudicated. a bankrupt or insolvent. Section 9.2. Remedies on Default. (a) Whenever any Event of Default referred to in co o I f th'~ ~greeme~~t occurs, the non-default...g partj' may exerc.se its rights under this ~,,ction ~. o ~~ Section 9.2 after providing thirty days written notice to the defaulting party of the Event of Default, but only if the Event of Default has not been cured within said thirty days or, if the Event of Default is by its nature incurable within thirty days, the defaulting party does not provide assurances reasonably satisfactory to the non-defaulting party that the Event of Default will be cured and will be cured as soon. as reasonably possible: (b) Upon an Event of Default by the Redeveloper, the Authority may withhold payments under any Initial Note in accordance with its terms, which withheld amount is payable, without interest thereon, on the first payment date after the default is cured. Notwithstanding anything to the contrary herein, upon default under this Agreement or the Planning Contract with respect to any Phase (or any Parcel of a Phase transferred to a Subdeveloper), the Authority may withhold Available Tax Increment attributable to the defaulting Phase or Subdeveloper's Parcel, but may not withhold Available Tax Increment attributable to any Phase or Parcel thereof for which there is no uncured default as of the relevant payment date. However, any default in Redeveloper's obligation u~~der Section 4.5 will 40 113 entitle the Authority to withhold Available Tax Increment attributable to the entire Phase, whether or not Parcels are transferred to a Subdeveloper. If Redeveloper submits evidence to the Authority that the remedy for breach of Section 4.5 described herein materially impairs the ability to finance the Minimum Improvements or any portion thereof, the Authority will negotiate in good faith with Redeveloper regarding an alternative remedy, but in any event such alternative remedy will reasonably protect the Authority and City from liability in the event DEED or Met Council demands repayment of all or any portion of funds provided under the DEED Grant Agreement and Met Council Grant Agreement. (c) Take whatever 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 Authority or Redeveloper 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 Authority 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 either party and thereafter waived by the other 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. 41 114 ARTICLE X Additional Prnvicinnc Section 10.1. Conflict of Interests; Authorit~presentatives Not Individually Liable. The Authority and the Redeveloper, to the best of their respective knowledge, represent and agree that no member, official, or employee of the Authority shall have any personal interest, direct or indirect, in the Agreement, nor shall any such member, official, or employee participate in any decision relating to the Agreement which affects his personal interests or the interests of any corporation, partnership, or association in which he is, directly or indirectly, interested. No member, official, or employee of the Authority shall be personally liable to the Redeveloper, or any successor in interest, in the event of any default or breach by the Authority or County or for any amount which may become due to the Redeveloper or successor or on any obligations under the terms of the Agreement. Section 10.2. Equal Employment Opportunity. The Redeveloper, for itself and its successors and assigns, agrees that during the construction of the Minimum Improvements provided for in the Agreement it will cornpiy with all applicable federal, state and local equal employment and non-discrimination laws and regulations. Section 10.3. Restrictions on Use. The Redeveloper agrees that until the Termination Date, the Redeveloper, and such successors and assigns, shall devote the Redevelopment Property to, the operation of the Minimum Improvements for uses described in the definition of such term in this Agreement, and shall not discriminate upon the basis of race, color, creed, sex or national origin in the sale, lease, or rental or in the use or occupancy of the Redevelopment Property or any improvements erected or to be erected thereon, or any part thereof. 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 Redevelopment Property and any such deed shall not be deemed to affect or impair the provisions aiid cC'iVenarttS Gf thlS Agreement. Section 10.5. Titles of Articles and Sections. Any titles of the several parts, Articles, and Sections of the 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 t11is Agreement, a notice, demand, or other communication under the 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 (a) in the case of the Redeveloper, is addressed to or delivered. personally to the Redeveloper at 615 First Avenue NE, Minneapolis, MN 55413, Attention. Bradley J. Schafer; and 42 115 (b} in the case of the Authority or City, is addressed. to or delivered. personally at 590 40th Avenue NE, Columbia Heights, Minnesota 55421, Attn: Executive Director/City Manager; 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. Section 10.7. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall constitute one and. the same instrument. Section 10.8. Recording. The Authority may record this Agreement and any amendments thereto with the Anoka County recorder. The Redeveloper shall pay all costs for recording. Section 10.9. Amendment. This Agreement may be amended only by written agreement approved by the Authority and the Redeveloper. Section 10.10. Authority or City Approvals. Unless otherwise specified, any approval required by the Authority under this Agreement may be given by the Authority Representative. Section 10.11. Termination. This Agreement terminates on the Termination Date, except that termination of the Agreement does not terminate, limit or affect the rights of any party that arise before the Termination Date. 43 116 IN WITNESS WHEREOF, the Authority has caused this Agreement to be duly executed in its name and behalf and its seal to be hereunto duly affixed and the Redeveloper has caused this Agreement to be duly executed in its name and behalf on or as of the date first above written. By By STATE OF MINNESOTA ) } SS. COUNTY OF ANOKA } COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY Its President- Gary L. Peterson Its Executive Director- Walter R. Fehst The foregoing instrument was acknowledged before me this day of , 2007, by Gary Peterson and Walter R. Fehst, the President and Executive Director of the Columbia Heights Economic Development Authority, a public body politic and corporate, on behalf of the Authority. Notary Public S-1 117 CITY OF COLUMBIA HEIGHTS By STATE OF MINNESOTA ) } SS. COUNTY OF ANOKA ) Its Mayor- Gary L. Peterson Its City Manager- Walter R. Fehst By The foregoing instrument was acknowledged before me this day of , 2007, by Gary Peterson and Walter R. Fehst, the Mayor and City Manager of the City of Columbia Heights, a Minnesota municipal corporation, on behalf of the City. Notary Public S-2 118 HUSET PARK DEVELOPMENT CORPORATION By Its STATE OF MINNESOTA } SS. COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 2007 by Bradley J. Schafer, the President and Chief Executive Officer of Huset Park Development Corporation, a Minnesota corporation, on behalf of the corporation. Notary Public S-3 119 SCHEDULE A REDEVELOPMENT PROPERTY Note: the parties agree to correct any errors in the legal descriptions following completion of full title reports and surveys of the Redevelopment Property as depicted on the Site Plan, Schedule B. Parcel A: [SR Parcel] Tract B and C, Registered Land Survey No. 159, Anoka County, Minnesota. Parcel B: [Rayco] PARCEL 1 All of Lots 29, 30, 31 and all of Lot 28, except the East 13 feet of said Lot 28, in Block 83, and the vacated 14 foot alley North and adjacent to said above described. property; all in "Columbia Heights Annex to Minneapolis, Anoka County, Minnesota". Also that part of Block "F" of "Columbia Heights Annex to Minneapolis, Anoka County, Minnesota", described as follows: Beginning at the southwest corner of said Block "F"; thence East along the north line of alley a distance of 152.5 feet; thence North on a line running parallel with the east line of 5th Street Northeast to its intersection with the southeasterly line of 39th Avenue Northeast as opened; thence Southwesterly along said southeasterly street line to its intersection. with the east line of 5th Street Northeast; thence South along said east street line to the point of beginning. Also that land added to Block "F" of "Columbia Heights Annex to Minneapolis, Anoka County, 1l~linnesota", described as follo.vs: The north half of that part of the vacated alley as dedicated in the plat of "Columbia Heights Annex to Minneapolis, Anoka County, Minnesota", lying easterly of the northerly extension across it of the west line of the east 13 feet of Lot 28, Block 83, said plat "Columbia Heights Annex to Minneapolis, Anoka County, Minnesota", and lying westerly of a line drawn parallel with and distant 152.5 feet east of the east line of Fifth Street N.E., said parallel line also being the west line of Tract A, REGISTERED LAND SURVEY NO. 159. PARCEL 2 Tract A, REGISTERED LAND SURVEY NO. 159, Anoka County, Minnesota. Torrens Property Torrens Certificate No.79188 A-1 12Q Parcel C [Duffy] Parcel 1: All of Lots 7 and 8, Rearranged of Block E, Columbia Heights Annex, Anoka County, Minnesota. That part of Lots 5, 6 and 9, said. Rearrangement of Block E, Columbia Heights Annex, lying Easterly of the East line of University Avenue NE, except that part thereof lying Northerly and Westerly of the following described line: Commencing at the Northeast corner of said Lot 5, in said Rearrangement of Block E, Columbia Heights Annex; thence South 30 degrees 19 minutes 23 seconds East on an assumed bearing along the Easterly line of Lots 1 through 8 in said Rearrangement of Block E, a distance of 32.33 feet to a ''/a" inside diameter iron pipe monument capped R.L.S. 10832, the actual point of beginning; thence South 89 degrees 45 minutes 19 seconds West a distance of 107.77 feet to a'h" inside diameter iron pipe monument capped R.L.S. 10832; thence South. 51 degrees 48 minutes 07 seconds West a distance of 115.26 feet to a''/2" inside diameter iron pipe monument capped R.L.S. 1.0832; thence South 1 degree 03 minutes 07 seconds East a distance of 54.97 feet to a''/2" inside diameter iron pipe monument capped R.L.S. 10832; thence South 89 degrees 41 minutes 39 seconds West a distance of 134.51 feet, more or less, to a point on the Easterly line of University Avenue NE distant 734.92 feet Southerly from the intersection of said Easterly line of University Avenue NE and the Northerly line of Lot 1 in said Rearrangement of Block E, Columbia Heights Annex, and there terminating. EXCEPT That part of Lot 5, described as follows: Commencing at the Northeast corner of said Lot 5; thence South 30 degrees 19 minutes 23 seconds East of an assigned bearing along the Easterly line of said Lot 5 a distance of 32.33 feet to a''/z" inside diameter iron pipe monument capped R.L.S. 1.0832, to the actual. point of beginning; thence South 89 degrees 45 minutes 19 seconds West a distance of 107.77 feet to a'/~" inside diameter iron pipe monument capped. 10832; thence South 51 degrees 48 minutes 07 seconds West a distance of 27.64 feet; thence North 89 degrees 10 minutes 53 seconds East a distance of 138.61 feet to the Easterly line of said Lot 5; thence North 30 degrees 19 :nirutes 23 seconds Vilest along said Easterly line of said Lot 5 a distance of 18.04 feet to the point of beginning and there terminating. Lots 41 and 42, Block 70, Columbia Heights Annex to Minneapolis, except those portions thereof taken for street or highway purposes. Lots 43 to 54, inclusive, Block 70, said Columbia Heights Annex to Minneapolis. That part of Block E, Columbia Heights Annex to Minneapolis, Anoka County, Minnesota, described as follows: Beginning at the Southeast corner of Block E; thence North along the West line of Fifth Street NE, 171.6 feet; thence Northwesterly along the Southwesterly line of Lookout Place, 182 feet; thence Southwesterly to a point in the Northeasterly line of alley and in the Northwesterly radial boundary line of the above described part of said Block 70, said radial boundary line being produced to the A-2 121 Northeasterly line of said alley; thence along the said Northeasterly line of alley Southeasterly to the North line of Thirty-Eighth Avenue NE; thence East along the North line of Thirty-Eighth Avenue NE to the point of be~innin~. Vacated Edgemoor Place lying Easterly of the Easterly line of University Avenue NE and Northerly of the North line of 38th Avenue NE. The vacated alley lying Easterly of and adjacent to Block 70, Columbia Heights Annex to Minneapolis, and bounded on the West by the Easterly line of University Avenue NE and bounded on the South by the Northerly line of 38th Avenue NE. Lots 7 through 12, inclusive, Block 69, Columbia Heights Annex to Minneapolis; the vacated alley in Block 69, Columbia Heights Annex to Minneapolis, lying Southerly of the Westerly extension of the South line of the Northerly 12.5 feet of Lot 1 l in said Block 69; and vacated Lookout Place lying Southerly of the Westerly extension of the South line of the Northerly 12.5 feet of Lot I 1 in said Block 69. That part of Block 98, Columbia Heights Annex to Minneapolis, lying Easterly of the East line of University Avenue NE. Abstract Property Parcel 2: Lots 13, 14, 15, 16, Block 69, Columbia Heights Annex to Minneapolis, and that part of Lot 17, Block 69, Columbia Heights Annex to Minneapolis, lying Southerly of the Westerly extension of the North line of the South half of Lot 10 in said Block 69. Anoka County, Minnesota Torrens Property Torrens Certificate No. 87560 Parcel 3: Lots 9 through 20, inclusive, Block 2, First Subdivision of Block F, Columbia Heights, Minnesota, Anoka County, Minnesota. Lot 12, Block 1, First Subdivision of Block F, Columbia Heights, Minnesota, Anoka County, Minnesota. The West half of that vacated alley lying Easterly of Lots 18, 19 and 20 in said Block 2, First Subdivision of Block F, Columbia Heights, Minnesota. That vacated alley lying between Lots 9, 10 and 11 on the East and Lots 12 through 17, inclusive, on the West, in said Block 2, First Subdivision of Block F, Columbia Heights, Minnesota. A-3 122 That vacated street lying between Lot 12, Block 1, on the East and Lots 9, 10 and 11, Black 2, on the West, all in said First Subdivision of Block F, Columbia Heights, Minnesota. A tract of Land bounded on the North by the Southerly line of First Subdivision of Block F, Columbia Heights, Minnesota; bounded on the West by the West line of Block 2 in said First Subdivision of Block F, Columbia Heights, Minnesota, produced Southerly; bounded on the East by the East line of Block 1 in said First Subdivision of Block F, Columbia Heights, Minnesota, produced Southerly; and bounded on the South by a line parallel with and 10 feet distant Northwesterly (measured. at right angles) from the center line of the main track of the Minneapolis, St. Paul and Sault Ste. Marie Railroad Company's so called Columbia Heights spur. Abstract Property Anoka County, Minnesota Abstract and Torrens Property Parcel D [Pearo] Lsgal I7eSCr~pt~41~ feT 515 ~& 519 3$`~ AVenue NE, Columbia Heights, I~~1 PID# 35-30-24-3A-t}414 Legal Descrtptc~ct: COLUMEIA HEIGHTS ANNEX TYl Mi1~l~+lI~AI~3LkS,AN{lKA CC}~I3N~Y,MII3NBS{3TA IAT 2'7 ~ B,ASB t3VEE>t B i2 PT (?F Lt3T 28 ~ ALL flF ELY 23 FT flP LOT ~~ BLK 83 CAL IC'I' S ANNEX T~ WITH ' CORRI3SPONI7INt~ I3 F°T €IF ALLEY N C)F & AI37 "Tt) PRl'~P1TY ~f ~C~T9` J~°~~G~`~4"L11J$~ Legal rllskio~: CC3Lt~114~IA IC3ITS ANNI"'.X Tt3 A!t~~lN'BAI~OLIS,ANCIKA CQUNTY +IF.SDTA LOTS 24 25 2G ~ VAC ALLEY N c~ AI73 TC1 SI} LgTS B).K 83 CC}L I3X Parcel E [Greit~ A-4 123 Lots 7, 8, 9, 10, 11, 12, 13, 14 and 15 in Block 90 in Columbia Heights Annex to Minneapolis; also the following described portion of Block "G" said Columbia Heights Annex to Minneapolis: COMMENCING at the southwest corner of said Block "G", running thence north along the line between said Block "G" and the above mentioned Block 90, 360 feet to the northeast corner of said Lot 7, in said Block 90; running thence east parallel with the south line of said Block "G" 279.9 feet to a point 50 feet westerly at right angles from the center of the railroad tract operated across said Block "G"; thence running southerly curving to the left along a line which is the right of way line of said railroad and 50 feet westerly from and parallel with said tract, said tract being upon a curve of 5 degrees, to the south line of said Block "G"; running thence west along the south line of said Block "G" 194.4 feet to the place of beginning. BEING the same premises conveyed to the party of the first part by the Columbia Heights Foundry Co., a corporation of the State of Minnesota, by deed. bearing date the 2nd day of August, 1909, and recorded on August 3rd, 1909 in Book "61" Page 539. COMMENCING at a point 279.9 feet easterly from the northeast corner of lot 7, Block 90, Columbia Heights Annex to Minneapolis, and in a line drawn from said northeast corner of said lot 7 parallel with the south line of Block "G" of said Columbia Heights Annex to Minneapolis, said point of beginning being the northeasterly corner of a tract of land heretofore under date of August 2nd, 1909, conveyed by Columbia Heights Foundry Company to said party of the first part; thence running east on a line parallel with the south line of said Block "G" to a point 6 feet westerly from the center of the westerly rail of the railroad tract running in a northerly and southerly direction across said Block "G", said tract being the first track east of the tract of land conveyed to said first party by said deed of August 2nd, 1909; thence southerly, on a 5 degree curve to the left, along a line parallel with and 6 feet distant westerly from the center of said westerly said of said railroad tract, to the south line of said Block "G"; thence westerly along said south line of said Block "G" to a point 194.4 feet easterly from the southwest corner of said Block "G", said point easterly from said southwest corner of said Block "G" being the southeasterly corner of said tract heretofore under date of August 2nd, 1909 conveyed to said first party; thence running north on a 5 degree curve to the right along the easterly line of said tract deeded said first party of August 2nd, 1909, and parallel ~~~ith said westerly rail of said railroad tract, to the place of beginning. The last described premises being subject to the provisions of a certain agreement bearing date the 30t" day of December 1909, made between the party of the first part and The Arcade Investment Company, a Minnesota corporation, and being the same premises conveyed to the party of the first part by said The Arcade Investment Company by deed bearing date the 30t~' day of December, 1909, and recorded on the 21St day of February 1910, in Book "60" Page 351.. ALL that part of Block "G", Columbia Heights Annex to Minneapolis, described as follows, to-wit: COMMENCING at a point 86.5 feet easterly from. the northeast corner of lot 7, Block 90, in said Columbia Heights Annex to Minneapolis, and. in a line drawn easterly from said northeast corner of said lot 7 and parallel with the south line of said Block "G"; deflecting thence 90 degrees from said Line to the north and running thence north a distance of 118.18 feet to a point 6 feet south, measured at right angles from the center of the southerly rail of the Thiem Manufacturing Company's spur A-5 124 track which crosses said Block "G", as the same is now laid out and established on the ground; thence deflecting to the right 90 degrees 16 minutes and 30 seconds and running thence southeasterly a distance of 100 feet to a point 6 feet southerly. measured at right angles from the center of the said southerly rail of said spur track; thence deflecting to the left 8 degrees 52 minutes 30 seconds, and running thence northeasterly a distance of 100 feet to a point 6 feet southerly, measured at right angles from the center of said southerly rail of said spur track; thence deflecting to the left 12 degrees 56 minutes, 30 seconds and running thence northeasterly a distance of 76.96 feet to a point 6 feet southerly, measured at right angles from the center of said southerly rail of said spur track and 47.64 feet westerly, measured at right angels from the center of the westerly rail of the Soo Railway track which crosses said Block "G" farthest to the west; thence deflecting to the right 1.40 degrees 3 minutes and running thence southwesterly a distance of 100 feet to a point 47.64 feet westerly, measured at right angles from the center of the said westerly rail of said Soo track; thence deflecting to the left 5 degrees 2 minutes and running thence southwesterly a distance of 79.55 feet to a point 47.64 feet westerly, measured at right angles from the center of the said westerly rail of said Soo Railway track, said point being also 276.61 feet easterly from said northeast corner of said lot 7, Block 90, and in a line drawn from said northeast corner of said lot 7 and parallel with the south line of said Block "G"; thence deflecting to the right 66 degrees 25 minutes and running thence west along said line drawn easterly from said northeast corner of said lot 7, Block 90, and parallel with the south line of said Block "G", a distance of 190.11 feet to the place of beginning. BEING the same premises conveyed to the party of the first part by the said The Arcade Investment Company by deed bearing date the 24th day of July, 1911, and. recorded on the 14th day of November, 191.1, in Book "69 Page 137. ALL that part of Block "G", Columbia Heights Annex to Minneapolis, described as follows, to-wit: COMMENCING at a point 321.36 feet easterly from the northeast corner of lot 7, Block 90, said Columbia Heights Annex to Minneapolis and in a line drawn from said northeast corner of said lot 7 and parallel with. the south line of said Block ""G", said point being also 6 feet westerly, measured at right angles from the center of the westerly rail of the Soo Railway Company's track which crosses said Block "G" farthest to the west; thence west along said line described as dra~x~r. easterly from the said northeast corner of said lot 7 and parallel with the south line of said Block "G" a distance of 44.75 feet to a point, said point being 276.61. feet easterly from the said northeast corner of said lot 7, Block 90, measured along said line described as drawn parallel with the south line of said Block "G"; thence deflecting to the right 113 degrees 35 minutes, and running thence northeasterly a distance of 79.55 feet to a point 47.64 feet westerly, measured at right angles from the center of said westerly rail of said Soo track; thence deflecting to the right 5 degrees 2 minutes, and running thence northeasterly 100 feet to a point 6 feet southerly, measured at right angles from the center of the southerly rail of the Thiem Manufacturing Company's spur track which crosses said Block "G", as the same is now laid out and established. on the ground, and 47.64 feet westerly, measured at right angles from the center of the westerly rail of said Soo track.; thence deflecting to the right 39 degrees 57 minutes and running thence northeasterly a distance of 23.04 feet to a point 6 feet southerly, measured at right angles from the center of the southerly rail of said Thiem spur track; thence deflecting to the left 11 degrees 22 minutes and 30 seconds, and. running thence northeasterly 65.15 feet to a point 6 feet southerly, measured at right angles from the center of the A-6 125 said southerly rail of said Thiem spur track, and 6 feet westerly, measured at right angles from the center of the westerly rail of the said Soo track; thence deflecting to the right 154 degrees 32 minutes, and running thence southwesterly a distance of 100 feet to a point 6 feet westerly, measured at right angles from the said westerly rail of said Soo track; thence deflecting to the left 4 degrees 40 minutes and running thence southeasterly 100 feet to a point 6 feet westerly, measured at right angles from the said westerly rail of said Soo track; thence deflecting to the left 3 degrees 18 minutes, and running thence southwesterly a distance of 33.30 feet to the point of beginning. EXCEPT That part of Lot 5, Auditor's Subdivision No. 50, Anoka County, Minnesota, beginning at the southwest corner of lot 4 in said Subdivision; thence East along the Pine dividing said Lots 4 and 5 a distance of 86.5 feet to an angle point in said line; thence North along the line dividing said Lots 4 and 5, a distance of 4.35 feet to the actual point of beginning of the tract of land to be described; thence continuing North along said dividing line 113.83 feet to an angle point in said line; thence Easterly along the dividing line between said Lots 4 and 5 a distance of 172.8 feet to the east line of said Lot 4; thence South along the extension of the east line of said Lot 4 a distance of 2.4 feet; thence Southwesterly along a curved line, convex to the northwest, with a radius of 1730.25 feet, and running parallel with and 11.5 feet Northwesterly of the center line of a spur track running through said Lot 5, to the actual point of beginning. ALL IN ANOKA COUNTY, MINNESOTA. Highway easement(s) over all that part of the following described lots: Lots 7 to 15 inclusive of Block 90, Columbia Heights Annex to the City of Minneapolis, which lies westerly of the following described line: Beginning at a point on the south line of said Block 90, distant 15 feet east of the southwest corner thereof; thence run northwesterly to the northwest corner of Lot 7 of said Block 90 and there terminating as reserved in Document No. 92527. Right to construct and maintain temporary snow fences over lands adjacent to Highway 47 acquired by the State of Minnesota as evidenced by Document No. 91948. Parcel F [Buckles] Lots 1 and 2, Block 3, 2°d Subdivision of Block F, together with that portion of the North'/2 of 38th %2 Avenue Northeast abutting said Lots, heretofore vacated Together with vacated and to be vacated streets and alleys accruing thereto upon vacation and appurtenant easements if any. According to the map or plat thereof on file and of record in the office of the County Recorder in and for Anoka County, Minnesota Parcel G [Smith] That part of Lot 3, Auditor's Subdivision No. 50, Anoka County, Minnesota, lying 9.00 feet Northwesterly of the vacated spur track once located on said Lot 3. A-7 126 Together with vacated and to be vacated streets and alleys accruing thereto upon vacation and appurtenant easements if any. According to the map or plat thereof on file and of record in the office of the County Recorder in and for Anoka County, Minnesota. A-8 127 SCHEDULE B ~~.. ~~ ~~. ~_ _.~.,~_..._ r . , . 1111. L"ii_~3 ». ,~ ~ ,.. ~ ~. tL _ ; 'a ~r ~ ~ ~ , ~ ,, , , ~ °h ~~~ ~ I 1i + l ~.~` rt ,~. .,~ ,~K ~ w, - ,~ ~7 ~+'f> ,,fir , ~y • a 1 ate. M •~v y~ yl ••~r •• k+•+~ ." ~~~+i./ / t~pi k. _ ~ G- --- of r.. // / f ~~ P'... ', F ... ~ ~•' r. . ~~ x~ ,.y ~ ~~~~ ~~tt*~rsi ~~ ~.., ,. ._ _ ~,~_...T.-.-~.y i, ~~ ~~~e ~. ~ A , i ~ f, . I~~ ,~ ~~ 5 ~ ~~ =r::~. ~`~ MASTER SITE PLAN =~. .- ~ , t~ i' ~ r i 4-. _ j,.t ...'. ~. 4 ~, ~_~_ ~. .. ~ .. C ~ r ~. .~..,_rv _..R . _ .~. ~. . ~~~fis~~r T~a~~. 17~~~+'~.LOI' \t E[~I T' ~C06?F4~?RhTICiN ~.;. ¢ B~ 1 128 SCHEDULE C DESIGN GUIDELINES HOW TO USE THESE GUIDELINES A development of the size and nature of the Industrial Park redevelopment area benefits greatly from possessing a number of governing design elements that identify each component of the project as being part of the same new neighborhood. These common features come in the form of related architectural treatments, streetscape elements, and site planning guidelines. The intent of the guidelines is to establish a level of quality and visual interest for the all of the design elements within the development by setting forth the vision for the overall design and character of the Industrial Area redevelopment. The character to be achieved in the Industrial Park redevelopment is that of a mixed use urban neighborhood with a diversity of residential types (in terms of unit types, massing and densities), development that is of a human scale and conducive to pedestrian circulation, and a variety of building materials throughout the development. The guidelines address building placement, architecture, and signage. Certain guidelines include measurements and/or percentages of materials, building openings, fagade lengths or similar features. Where such measurements or percentages are listed, they are meant to be a framework within which to approach building design. These measurements and percentages do not need to be strictly adhered to if the developer can show that using a lesser or different measurement or percentage in conjunction with the application of other design elements achieves the same design intent of providing visual interest and diversity of building materials and types. Design guidelines for the parkway, entry signage, landscaping, and stormwater management are addressed in and shall be in accordance with the City of Columbia Heights Zoning Ordinance, the City of Columbia Heights Industrial Area Redevelopment Plan dated November 2003 and all other applicable city codes and plans, and shall be reviewed on a case by case basis. The design guidelines describe the quality that is to be achieved at the Industrial Area redevelopment. These guidelines should be used as a tool by the City to evaluate design elements and as a resource for landowners to achieve a consistent design character and level of quality. CHAPTER 1: INTRODUCTION The Project Area The Project Area to which these design guidelines apply is shown in Figure 1. The total Project Area contains approximately 28 acres. The majority of existing land uses are a mix of large and email scale industrial uses. The Project Area is surrounded by residential land use C-1 129 I ~~. i °~=, and Huset Park on the north, industrial land use on the east, residential land use on the south, and University Avenue on the west. Figure 1: Project Area Consistency with the Comprehensive Plan and Zoning Ordinance The Comprehensive Plan guides the Project Area for Transit Oriented Development land use, which calls for mixed-use pedestrian-oriented development near transit nodes that will provide new opportunities for high-density residential and neighborhood commercial development. Redevelopment of these areas will also provide the opportunity for pedestrian linkages to other parts of the community. The Zoning of the Project Area is MXD Mixed-Use (Transit Oriented Mixed Use), the purpose of which is to promote efficient use of existing City infrastructure, ensure sensitivity to surrounding neighborhoods, create linkages between compatible areas of the City, provide appropriate transitions between uses, ensure high quality design and architecture, create good pedestrian circulation and safety; promote alternative modes of transportation, and increase the quality of life and community image of Columbia Heights. Livable Communities Objectives The redevelopment of the Project Area directly complies with the following Livable Communities objectives: • The development creates connected places that support auto, pedestrian and bike travel, are linked to transit and will build capacity for future transit. • The development balances residential, commercial, workplace and public/green spaces within and adjacent to the site. • The development expands housing choices to increase life-cycle and affordable housing options, especially close to jobs. • The development fosters distinctive community places and promotes community identity. • The development considers the natural environment, including restoring natural features and managing stormwater. CHAPTER 2: LAND USES The redevelopment of the Project Area will be designed to reflect a mix of residential uses with a small amount of commercial space, all adjacent to the City's Huset Park and the open space created by the parkway. A summary of potential development for the Industrial Area redevelopment site follows, described by land use. The final site plan, preliminary plat, final plat and Development Agreement will govern the final mix, size and location of uses as approved by the City. The development will then occur in phases, as approved by the City. Residential Land Use The goal of residential redevelopment is to provide the City of Columbia Heights with a dynamic new residential neighborhood that will be thoughtfully designed and built to complement the community while at the same time establishing its awn sense of identity. The intent of the residential redevelopment is to provide a range of different housing types that reflect the current and future needs of the existing population, as well as provide housing choices for new residents. C-2 130 The site is served by a Metro Transit route, which will provide convenient access to and from the residential area. The approximate total number of units far the residential portion of the Industrial Area, as reflected in a Concept Plan submitted in the Preliminary Development Agreement between the City, are listed below. Townhomes 183 units Co-Op Units 80 units Flats 296 units Commercial 11,650 sq. ft. Mixed Use Land Use A small amount of the site, in the northeast portion of the redevelopment area, will be used for mixed use neighborhood commercial/residential uses. This includes 11,650 sq. ft. of retail space, with residential units above. Park and Open Space Huset Park is immediately adjacent to the north end of the Project Area. The City is currently undertaking a master planning process for the park. The park will be an amenity to the new residential community, as well as being an amenity to the entire city. Parkway The redevelopment concept includes a new parkway that curves from 37t" Avenue NE (just east of University Avenue) to the intersection of 39'" Avenue NE and Jefferson Street, then runs north through Huset Park to 40t" Avenue. The parkway would have boulevard and median landscape treatments and include a sidewalk system. The parkway will be designed in accordance with the Design Guidelines in the City's Industrial Area Redevelopment Plan dated November 2003 and the Feasibility Report for Huset Parkway dated July 7, 2004 prepared by SEH. Chapter 3: Architecture Building Placement All buildings should have swell-defined front fagade with primary entrances facing the street. Buildings should be aligned so that the dominant lines of their fagades parallel the line of the street. Residential buildings should be setback between 10 and 20 feet from the sidewalk edge. The purpose of the setback is to provide a transitional semi-private area between the sidewalk and the front door. Landscaping, steps, porches, grade changes, and low ornamental fences or walls may be used to provide increased privacy and livability for first floor units. Buildings comprised of two or more side-by side units with individual front entries far each unit (e.g. townhomes and rowhomes) are encouraged to have modest variations in the placement/setbacks of the front facades of each individual unit. C-3 131 Mixed use building fagades should be flush with the sidewalk or set back between 0 and 10 feet for at least 60 percent of the length of their front fagade. At intersections, these buildings should have street fagades at or near the sidewalk on both streets. Primary Facades and Roof Treatments Residential buildings shall be designed with pitched roofs, except that buildings labeled as lofts in the concept site plan are encouraged to have flat roofs. Rooftop terraces on loft buildings are also encouraged. A variety of roof shapes and parapet details are encouraged; however, non- structural, purely decorative roof elements should be avoided. Eaves of gabled roofs should extend a minimum of one foot from the building fagade. Mixed use buildings may be designed with pitched or flat roofs. Pitched roofs may include gable or hip roofs, but not mansard or other roof types not characteristic of the region. The base or ground floor of the building should include elements that relate to the human scale, including texture, projections, doors and windows, awnings, canopies or ornamentation. Building Width and Facade Articulation Residential and mixed use buildings with primary fagades of 30 feet or more in width should be articulated into smaller increments of 30 feet or less through one or more of the following techniques or similar ones: • Stepping back or extending forward a portion of the fagade; • Use of different textures or contrasting, but compatible materials; • Division into storefronts with separate display windows and entrances; • Arcades, awnings, window bays, balconies or similar ornamental features; • Variation in roof lines to reinforce the articulation of the primary fagade. Building Height Residential buildings shall be designed as two- to faur-story buildings. The City Council may consider and approve buildings of a greater height in certain areas on a case by case basis. Mixed use buildings shall be two to three stories in height, with the first level containing commercial uses and upper levels containing residential uses. Window and Door Openings Residential buildings should have a minimum of 20 percent of primary (street-facing} fagades and 15 percent of each side or rear fagade consist of window and door openings designed as specified below. Mixed use buildings should have a minimum of 30 percent of the area of the ground floor of the primary street fagade consist of window and daor openings. A minimum of 20 percent of any two sides or rear fagades at ground level shall consist of window and door openings designed as C-4 132 specified below. A minimum of 15 percent of all upper story fagades shall consist of window or balcony door openings designed as specified below. • Windows shall be designed with punched and recessed openings, in order to create a strong rhythm of light and shadow in keeping with traditional architecture. • Mirrored glass or glass block should not be used on street-facing fagades. Glass on windows and doors should be clear or slightly tinted, allowing views into and out of the interior. • Window shape, size and patterns should emphasize the intended organization of the fagade and the definition of the building. • Display windows at least 3 feet deep may be used to meet this requirement, but not windows located above eye level. Entries Residential building entrances should face the primary abutting public street or walkway, or be linked to the street by a clearly defined and visible walkway or courtyard. Additional secondary entrances may be oriented to a secondary street or parking area. Porches, steps, pent roofs, roof overhangs, hooded front doors or similar architectural elements should be used to define the primary entrances to all residences. Mixed use buildings shall have their primary building entrances facing the primary abutting street or walkway, or be linked to the street by a clearly defined and visible walkway or courtyard. Additional secondary entrances may be oriented to a secondary street or parking area. In the case of a corner building or building abutting more than one street, the street with the higher classification shall be considered primary. The main entrance should be placed at sidewalk grade. Entries shall be designed with one more of the following: • Canopy, portico, overhang, arcade or arch above the entrance; • Recesses or projections in the building fagade surrounding the entrance; • Peaked roof or raised parapet over the door; • Display windows surrounding the entrance; • Architectural detailing such as file work or ornamental moldings; ® Permanent planters or window boxes for landscaping. Rear Fagades and Entries Mixed use buildings shall have rear fagades that are well maintained and welcoming in appearance. Landscaping and small wall signs identifying businesses are encouraged. If customers park at the rear of the building, swell-defined and lighted rear entrance is strongly encouraged. If a rear entrance is provided, an awning is also encouraged. If no entrance is provided, a signed and lighted walkway to the front of the building should be provided. A small identification sign with the name of the business is also encouraged. Rooftop Equipment All rooftop equipment shall be screened from view from adjacent streets, public rights-of-way and adjacent properties. Preferably, rooftop equipment should be screened by the building parapet, or C-5 133 should be located out of view from the ground. If this is infeasible, the equipment should be grouped within a single enclosure. This structure shall be set back a distance of 1'/2 times its height from any primary fagade fronting a public street. Screens shall be of durable, permanent materials (not including wood) that are compatible with the primary building materials. Exterior mechanical equipment such as ductwork shall not be located on primary building fagades. Ground level utility meters should be located away from public rights of way and screened from pedestrian views using vegetation or other natural materials. Building Materials All buildings should be constructed of high-quality materials, including the following: Primary Materials • Brick; • Natural stone; • Precast concrete units and concrete block, provided that surfaces are integrally colored and molded, serrated or treated with a textured material in order to give the wall surface a three dimensional character; • Stucco, integrally colored; • Jumbo brick may be used on up to 30 percent of any fagade, provided that it is used only on the lower third of the building wall; • Glass, for window and door openings; • Synthetic wood (fiber cement) siding resembling horizontal lap siding with an exposure no greater than 5 inches, such as Hardiplank and similar materials. Prohibited Materials • Unadorned plain or painted concrete block; • Tilt-up concrete panels; • Prefabricated steel or sheet metal panels; • Aluminum, vinyl (applies to commercial and mixed-use buildings only), fiberglass, asphalt or fiberboard (masonite) siding. Accent Materials may be used on up to 15% of any of the building's fagades. These may include architectural metalwork, glass block, or similar materials as approved by the Planning Commission. Building materials of similar quality should be used on front side and rear fagades, and detailing of all fagades should be compatible. However, on rear fagades, EIFS may be used as a primary material, at a height of at least 3 feet above grade. On front or side fagades, EIFS may only be used as an accent material on up to 15 percent of the fagade area. Residential buildings may also use the following materials: • Vinyl siding resembling horizontal lap siding, clapboard siding, and shake shingles. Decorative elements may include overlapping patterns such as fishscale or diamond shaped siding. Vinyl siding must be of a heavy gage and a predominant number of units with siding, per each building grouping, must be of a deep color such as gray, tan, olive, blue, or red. Vinyl siding may not be used on the first (base) two feet of a building. C-6 134 For residential buildings comprised of two or more side-by-side units with individual front entries for each unit (e.g. townhomes and rowhomes) where brick or siding may be used as the primary exterior material, the following percentage of individual units shall have a brick exterior: Buildings with up to six units: 33 percent • Buildings with eight or more units: 38 percent For residential buildings comprised of two or more units that are side-by-side with individual front entries or two or more units in a multi-level building with a shared front entry and where only siding is used as the primary material, the facades of such buildings shall include a primary siding color and a secondary siding color and be further articulated through architectural details and accent colors and materials. Building Colors For all buildings, building colors should accent, blend with or complement surroundings. Principle building colors should consist of subtle, neutral or muted colors with low reflectance (e.g. browns, grays, tans, dark or muted greens, blues and reds). "Warm-toned" colors are encouraged because of their year-round appeal. No more than two principal colors may be used on a facade or individual storefront. Primary colors should be used only as accents, occupying a maximum of 15 percent of building fagades, except when used in a mural or other public art. Garage doors should be of a similar color as or complementary color to the building. Architectural Detailing For all buildings, architectural details such as ornamental cornices, arched windows and warm- toned brick with bands of contrasting color are encouraged in new construction. The contemporary adaptation of historic and vernacular residential, commercial and mixed-use styles found in Columbia Heights and in Northeast Minneapolis is encouraged. Awnings For mixed use buildings, where awnings are desired, canvas or fabric awnings are preferred. Metal awnings may be allowed on a case-by-case basis depending on functionality of the awning. Wood and plastic awnings are not allowed. Awnings should be installed without damaging the building or visually impairing distinctive architectural features. Internally illuminated awnings are prohibited. CHAPTEl? 4a StAG C-7 135 Wall and Projecting Signs For mixed use buildinas. sians should be architecturally compatible with the stvle. composition. „_, . „ .. , materials, colors and details ofi the building, and with other signs on nearby buildings. Signs should be positioned so they are an integral design feature of the building, and to complement and enhance the building's architectural features. Signs should not obscure or destroy architectural details such as stone arches, glass transom panels, or decorative brickwork. Signs may be placed: • In the horizontal lintel above the storefront windows; • Within window glass, provided that no more than 25 percent of any individual window is obscured; • Projecting from the building; • As part of an awning; • In areas where signs were historically attached. Wall signs should generally be rectangular. In most cases, the edges of signs shall include a raised border that sets the sign apart from the building. Individual raised letters set onto the sign area surface are also preferred. Projecting signs may be designed in a variety of shapes. Sign colors shall be compatible with the building fagade to which the sign is attached. No more than three colors should be used per sign, unless part of an illustration. To ensure the legibility of the sign, a high degree of contrast between the background and letters is preferable. A combination of soft/neutral shads and dark/rich shades (see Building Color standard) are encouraged. Materials Sign materials should be consistent or compatible with the original construction materials and architectural style of the building fagade on which they are to be displayed. Natural materials such as wood and metal are more appropriate than plastic. Neon signs may be appropriate for windows. Illumination External illumination of signs is permitted by incandescent, metal halide or fluorescent light that emits a continuous white light. Light shall not shine directly onto the ground or adjacent buildings. Neon signs are permitted. Internally lit box signs and awnings are prohibited, with the exception of existing timeltemperature signs. C-8 136 SCHEDULE D ATTHQRI7aNG RF,SOi,ITTinN Authorizing Resolution COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. RESOLUTION AWARDING THE SALE OF, AND PROVIDING THE FORM, TERMS, COVENANTS AND DIRECTIONS FOR THE ISSUANCE OF ITS $ TAXABLE TAX INCREMENT REVENUE NOTES, SERIES BE IT RESOLVED BY the Board of Commissioners ("Board") of the Columbia Heights Economic Development Authority, Columbia Heights, Minnesota (the "Authority") as follows: Section 1. Authorization• Award of Sale. 1.01. Authorization. The Authority and the City of Columbia Heights have heretofore approved the establishment of the Huset Park Area Tax Increment Financing District (the "TIF District") the Downtown CBD Redevelopment Project (the "Project"), and have adopted a tax increment financing plan for the purpose of financing certain improvements within the Project. In connection with the TIF District, the Authority and City have approved a Contract for Private Redevelopment between the Authority and Huset Park Development Corporation (the "Agreement"). Pursuant to Minnesota Statutes, Section 469.178, the Authority is authorized to issue and sell its bonds for the purpose of financing a portion of the public development costs of the Project. Such bonds arc payable mom all or any potion of revenues derived from the TIF District and pledged to the payment of the bonds. The Authority hereby finds and determines that it is in the best interests of the Authority that it issue and sell its Taxable Tax Increment Revenue Note in the maximum principal amount of $ (the "Note'') for the purpose of financing certain public redevelopment costs of the Project. 1.03. Issuance Sale and Terms of the Note. The Authority hereby delegates to the Executive Director the determination of the date on which the Note is to be delivered, in accordance with the Agreement. The Note shall be issued to Huset Park Development Corporation ("Owner"). The Note shall be dated as of the date of delivery, shall mature no later than February 1, 20 and shall bear interest at the rate of percent per annum from the date of original issue of the Note. The Note is issued in accordance with Section 3.8 of the Agreement. D-1 137 Section 2. Form of Note. The Note shall be in substantially the following form, with the blanks to be properly filled in and the principal amount and payment schedule adjusted as of the date of icane~ UNITED STATE OF AMERICA STATE OF MINNESOTA COUNTY OF ANOKA COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY No. R-1 $ TAXABLE TAX INCREMENT REVENUE NOTE SERIES 20_ Date Rate of Original Issue 20 The Columbia Heights Economic Development Authority ("Authority") for value received, certifies that it is indebted and hereby promises to pay to or registered assigns (the "Owner"), solely from the sources and in the manner hereinafter provided, the principal sum of $ or so much. thereof as has been from time to time advanced (the "Principal Amount"), as provided in the Agreement defined hereafter, together with interest on the unpaid balance thereof accrued from the date of original issue hereof at the rate of percent per annum (the "Stated Rate"). This Note is given in accordance with that certain Contract for Private Redevelopment between the Issuer, the City of Columbia Heights and Huset Park Development Corporation dated as of 2004 (the "Agreement") and the authorizing resolution (the "Resolution") duly adopted by the Authority on , 20 Capitalized terms used and not otherwise defined herein have the meaning provided for such terms in the Agreement unless the context clearly requires otherwise. 1. Pa,~. Principal and interest ("Payments") shall be paid on August 1, 20 and each February I and August 1 thereafter to and including February 1, 20 ("Payment Dates") in the amounts set forth on the attached payment schedule, payable solely from the sources set forth in Section 3 herein. Payments shall be applied first to accrued interest, and then to unpaid principal. Payments are payable by mail to the address of the Owner or such other address as the Owner may designate upon 30 days written notice to the Authority. Payments on this Note are payable in any coin or currency of the United States of America which, on the Payment Date, is legal tender for the payment of public and private debts. 2. Interest. Interest accruing from the date of original issue through and including February I, 20_ will be compounded semiannually on February I and August 1 of each year and added to principal. Interest shall be computed on the basis of a year of 360 days and twelve 30-day months. D-2 13& 3. Available Tax Increment. All payments on this Note are payable on each Payment Date solely from and in the amount of the "Available Tax Increment," which means, on each Pavment Date, 90 uercent of the Tax Increment attributable to the (relevant property as defined in the Agreement that is paid to the Authority by Anoka County in the six months preceding the Payment Date; provided that while any Authority Subordinate Note described in Section. 3.6(c) of the Agreement is outstanding, "80 percent" is substituted for "90 percent" in this sentence. The Authority shall have no obligation to pay principal of and interest on this Note on each Payment Date from any source other than Available Tax Increment If on any Payment Date there is available to the Authority insufficient Available Tax Increment to pay the scheduled Payment due on such date, the amount of such deficiency shall be deferred and paid, without interest thereon, on the next Payment Date on which the Authority has available to it Available Tax Increment in excess of the amount necessary to pay the scheduled amount due on such subsequent Payment Date. 4. Default. Upon an Event of Default by the Redeveloper under the Agreement, the Authority may exercise the remedies with respect to this Note described in Section 9.2 of the Agreement, the terms of which are incorporated herein by reference. 5. Optional Prepay. (a) The principal sum and. all accrued interest payable under this Note is prepayable in whole or in part at any time by the Authority without premium or penalty. If the Authority prepays the Note in part, the prepayment will be applied first to accrued interest and then to the outstanding principal amount of the Note in inverse order of principal installments due. Ten days' prior notice of any such prepayment shall be given by first-call mail by the Registrar to the registered owner of the Note. No partial prepayment shall affect the amount or timing of any other regular Payment otherwise required to be made under this Note. (b) The Note may be deemed prepaid in whole or in part in accordance with Section 3.9 of the Agreement. Upon any such prepayment, the Authority will deliver to the Owner a statement of the amount applied to prepayment under Section 3.9 and the outstanding principal balance of the Note after application of the deemed prepayment. Any deemed prepayment under this paragraph will be applied under the same procedures described in paragraph (a) above. 6. Nature of ObIi ag tin. This Note is one of ar. issue in the to±al principal amount of $ issued to aid in financing certain public redevelopment costs and administrative costs of a Project undertaken by the Authority pursuant to Minnesota Statutes, Sections 469.001 through 469.047, and is issued pursuant to the Resolution, and pursuant to and in full conformity with the Constitution and laws of the State of Minnesota, including Minnesota Statutes, Sections 469.174 to 469.179. This Note is a limited obligation of the Authority which. is payable solely from the revenues pledged to the payment hereof under the Resolution. This Note and the interest hereon shall not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision thereof, including, without limitation, the Authority. Neither the State of Minnesota, nor any political subdivision thereof shall be obligated to pay the principal of or interest on this Note or other costs incident hereto except from and to the extent of the revenues pledged hereto, and neither the full faith and credit nor the taxing power of the State of Minnesota or any political subdivision thereof is pledged to the payment of the principal of or interest on this Note or other casts incident hereto. D-3 139 7. Registration and Transfer. This Note is issuable only as a fully registered note without coupons. As provided in the Resolution, and subject to certain limitations set forth therein, this Note is transferable upon the books of the Authority kept for that bumose at the principal office of the City Chief Financial Officer, by the Owner hereof in person or by such Owner's attorney duly authorized in writing, upon surrender of this Note together with a written instrument of transfer satisfactory to the Authority, duly executed by the Owner. Upon such transfer or exchange and the payment by the Owner of any tax, fee, or governmental charge required to be paid by the Authority with respect to such transfer or exchange, there will be issued in the name of the transferee a new Note of the same aggregate principal amount, bearing interest at the same rate and maturing on the same dates. This Note shall not be transferred to any person unless the Authority has been provided with an opinion of counsel or a certificate of the transferor, in a form satisfactory to the Authority, that such transfer is exempt from registration and prospectus delivery requirements of federal and applicable state securities laws. IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions, and things required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen, and to be performed in order to make this Note a valid and binding limited obligation of the Authority according to its terms, have been done, do exist, have happened, and have been performed in due form, time and manner as so required. IN WITNESS WHEREOF, the Board of Commissioners of the Columbia Heights Economic Development Authority have caused this Note to be executed with the manual signatures of its President and Executive Director, all as of the Date of Original Issue specified above. COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY Executive Director President REGISTRATION PROVISIONS The ownership of the unpaid balance of the within Note is registered in the bond register of the City Chief Financial Officer, in the name of the person last listed below. Date of Registration Registered Owner Huset Park Development Corporation Federal Tax I.D. No. Signature of City Chief Financial Officer D-4 140 Section 3. Terms, Execution and. Delivery. 3.01. Denomination. Payment. The Note shall be issued as a single typewritten note numbered R-1. v The Note shall be issuable only in fully registered form. Principal of and interest on the Note shall be payable by check or draft issued by the Registrar described herein. 3.02. Dates; Interest Payment Dates. Principal of and interest on the Note shall be payable by mail to the owner of record thereof as of the close of business on the fifteenth day of the month preceding the Payment Date, whether or not such day is a business day. 3.03. Registration. The Authority hereby appoints the City Chief Financial Officer to perform the functions of registrar, transfer agent and. paying agent (the "Registrar"). The effect of registration and the rights and duties of the Authority and the Registrar with respect thereto shall be as follows: (a) Register. The Registrar shall keep at its office a bond register in which the Registrar shall provide for the registration of ownership of the Note and the registration of transfers and exchanges of the Note. (b) Transfer of Note. Upon surrender for transfer of the Note duly endorsed by the registered owner thereof or accompanied by a written instrument of transfer, in form reasonably satisfactory to the Registrar, duly executed by the registered owner thereof or by an attorney duly authorized by the registered owner in writing, the Registrar shall authenticate and deliver, in the name of the designated transferee or transferees, a new Note of a like aggregate principal amount and maturity, as requested by the transferor. Notwithstanding the foregoing, the Note shall not be transferred to any person unless the Authority has been provided with an opinion of counsel or a certificate of the transferor, in a form satisfactory to the Authority, that such transfer is exempt from registration and prospectus delivery requirements of federal and applicable state securities laws. The Registrar may close the books for registration of any transfer after the fifteenth day of the zncnth preceding each Payment Date and until such Payment Date. (c) Cancellation. The Note surrendered upon any transfer shall be promptly cancelled by the Registrar and thereafter disposed of as directed by the Authority. (d) Improper or Unauthorized Transfer. When the Note is presented to the Registrar for transfer, the Registrar may refuse to transfer the same until it is satisfied that the endorsement on such Note or separate instrument of transfer is legally authorized. The Registrar shall incur no liability for its refusal, in good faith, to make transfers which it, in its judgment, deems improper or unauthorized.. (e) Persons Deemed. Owners. The Authority and the Registrar may treat the person in whose name the Note is at any time registered in the bond register as the absolute owner of the Note, whether the Note shall be overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on such Note and far all other purposes, and all such. D-5 141 payments so made to any such registered owner or upon the owner's order shall be valid and effectual to satisfy and discharge the liability of the Authority upon such Note to the extent of the sum or sums so raid. (f) Taxes, Fees and Charges. For every transfer or exchange of the Note, the Registrar may impose a charge upon the owner thereof sufficient to reimburse the Registrar for any tax, fee, or other governmental charge required to be paid with respect to such transfer or exchange. (g) Mutilated, Lost, Stolen or Destroyed Note. In case any Nate shall become mutilated or be lost, stolen, or destroyed, the Registrar shall deliver a new Note of like amount, maturity dates and tenor in exchange and substitution for and upon cancellation of such mutilated Note or in lieu of and in substitution for such Note Lost, stolen, or destroyed, upon the payment of the reasonable expenses and charges of the Registrar in connection therewith; and, in the case the Note lost, stolen, or destroyed, upon filing with the Registrar of evidence satisfactory to it that such Note was lost, stolen, or destroyed, and of the ownership thereof, and upon furnishing to the Registrar of an appropriate bond or indemnity in form, substance, and amount satisfactory to it, in which both the Authority and the Registrar shall be named as obligees. The Note so surrendered to the Registrar shall be cancelled by it and evidence of such cancellation shall be given to the Authority. If the mutilated, lost, stolen, or destroyed Note has already matured or been called for redemption in accordance with its terms, it shall not be necessary to issue a new Note prior to payment. 3.04. Preparation and Delivery. The Note shall be prepared under the direction of the Executive Director and shall be executed on behalf of the Authority by the signatures of its President and Executive Director. In case any officer whose signature shall appear on the Note shall cease to be such officer before the delivery of the Note, such signature shall nevertheless be valid and sufficient for all purposes, the same as if such officer had remained in office until delivery. When the Note has been so executed, it shall be delivered by the Executive Director to the Owner thereof in accordance with the Agreement. Section 4. Security Provisions. 4.01. Pledge. The Authority hereby pledges to the payment of the principal of and interest on the Note Available Tax Increment under the terms and as defined in the Note. Available Tax Increment shall be applied to payment of the principal of and interest on the Nate in accordance with the terms of the form of Note set forth in Section 2 of this resolution. 4.02. Bond Fund. Until the date the Note is no longer outstanding and no principal. thereof or interest thereon (to the extent required to be paid pursuant to this resolution) remains unpaid, the Authority shall maintain a separate and special "Bond Fund" to be used for no purpose other than the payment of the principal of and interest on the Note. The Authority irrevocably agrees to appropriate to the Bond Fund in each year Available Tax Increment in the amount necessary to pay principal and. interest when due on the Note. Any Available Tax Increment remaining in the Bond Fund shall be transferred to the Authority's account for the TIF District upon termination of the Note in accordance with its terms. D-6 142 4.03. Additional Bonds. if the Authority issues any bonds or notes secured by Available Tax Increment, such additional bonds or notes are subordinate to the Note in all respects. Section 5. Certification of Proceedings. 5.01. Certification of Proceedings. The officers of the Authority are hereby authorized and directed to prepare and furnish to the Owner of the Note certified copies of all proceedings and. records of the Authority, and such other affidavits, certificates, and information as may be required to show the facts relating to the Legality and marketability of the Note as the same appear from the books and records under their custody and control or as otherwise known to them, and all such certified copies, certificates, and affidavits, including any heretofore furnished, shall be deemed representations of the Authority as to the facts recited therein. Section 6. Effective Date. This resolution shall be effective upon approval. Adopted this day of , 20_. President- Gary L. Peterson Executive Director- Walter R. Fehst D-7 143 TAXABLE TAX INCREMENT REVENUE NOTE, SERIES _ PAYMENT SCHEDULE Payment Date Principal Interest Total Payment I~-8 144 SCHEDULE E ('E.RTTFT('ATE OF C'nMPT,ETTON WHEREAS, the Columbia Heights Economic Development Authority, Columbia Heights, Minnesota, a public body, corporate and politic (the "Grantor"), by a Deed recorded. in the Office of the County Recorder or the Registrar of Titles in and for the County of Anoka and State of Minnesota, as Deed Document Number(s) and respectively, has conveyed to a Minnesota (the "Grantee"), the following described land in County of Anoka and State of Minnesota, to-wit: (the "Property") and WHEREAS, said Deed contained certain covenants and restrictions set forth in Sections 1 and 2 of said Deed; and WHEREAS, said Grantee has performed said covenants and conditions with respect to the Property insofar as it is able in a manner deemed sufficient by the Grantor to permit the execution and recording of this certification; NOW, THEREFORE, this is to certify that all building construction and other physical improvements specified to be done and made by the Grantee on the Property have been completed and the above covenants and conditio„s in said Deed and the agreements and covenants ire Article IV of the Agreement (as described in said Deed) with respect to the Property have been performed by the Grantee therein, and the County Recorder or the Registrar of Titles in and for the County of Anoka and State of Minnesota is hereby authorized to accept for recording and to record, the filing of this instrument, to be a conclusive determination of the satisfactory termination of the covenants and conditions of Article IV of the Agreement with respect to the Property, E-1 145 Dated: , 20 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY By Its President- Gary L. Peterson By Its Executive Director- Walter R. Fehst STATE OF MINNESOTA ) ss. COUNTY OF ANOKA } On this _ day of , 20_, before me, a Notary Public within and for said County, personally appeared , to me personally known, who, being by me duly sworn, did say that (s)he is the President of the Authority named in the foregoing instrument; that the seal affixed to said instrument is the seal of said Authority; that said instrument was signed and sealed in behalf of said Authority by authority of its governing body; and said acknowledged said instrument to be the free act and deed of said Authority. Notary Public STATE OF MINNESOTA ) } ss. COUNTY OF ANOKA ) On this day of , 20_, before me, a Notary Public within and for said. County, personally appeared , to me personally known, who, being by me duly sworn, did say that (s)he is the Executive Director of the Authority named in the foregoing instrument; that the seal affixed to said instrument is the seal of said Authority; that said instrument was signed and sealed in behalf of said Authority by authority of its governing body; and said acknowledged said instrument to be the free act and deed of said Authority. Notary Public E-2 146 SCHEDULE F PT7RT.TC' TMPRQVF.MF,NTS BI7DGET ~i~~ ~~~ ~a~~lc~mi~i~~ H~ir~i'~ts -Huse P~~rk~w~~y - ~-__1~. Item E~ti~~a,'.~~ Frcit t~~a~t_ E~tirn~t~d P`r•~j+~~t Ft~n~i,~~ Fun~lin ~=aurc~ 5 ~~' F- tom` ~:ar `-1~EF ~,L:_ icy _~t~ ~ ~E`13:er .. :s' _~:-- i sr •~, .. -.. , s - y. S.. _~ i s t' . _ t .. ~ - ~* a~. f '~~'Jir~ ~+j~.. p~ ,~y!{ +~ifs?~e~fo:3 pp¢¢ ~~v~~ ~it ~SL° .. 1 ~~ . ~31- _~. - _ _ __ _., _ S 3'~ _= i .C° ~~r~~}"~+~ 2z33.i3ii 1.~7 ~~,~ -~~ ~~._, ~r"~rt r:~~; sralEt T-_ ~r: _~_~ ~~5t~ 3 335.~:~CJ i,~i~'f~ t,~1~:=8D ~;r~~ ., ~~ '~c~.~~a .~...~~i~ +v r1;t~r ~r r3r~'t T~t~ 12 -":~=~ 9.033,L~C7 _ i;tt~7.~t~~ .. ~, "~ F-1 147 SCHEDULE G PTTRT,TC RF,DEVF:T,QPMEIVT C_'OSTS Relocation (including relocation consultant) Demolition Environmental Costs (not funded by grants) Grading and site preparation Onsite roads and utilities Authority Costs paid under Section 3.11 Land Acquisition (exclusive of acquisition of the SR Parcel) Interest costs on above items to the extent such cost represents interest on any valid evidence of indebtedness under federal income tax principles. G- I 148 SCHEDULE H DEV_F.T.QPMFNT RiTDCTF.T Revenues Sales Proceeds - Townhomes Sales Proceeds -Condos TIF Sales Proceeds -Commercial Total Sales Proceeds Costs Site Costs Per New roads 4,520 lin. Ft. $375.00 lin. Ft. Renovated roads 2,200 lin. Ft. $175.00 lin. Ft. Excavation 113,000 cu. Yds. $ 3.25 cu. Yds. Import 24,000 cu. Yds. $ 8.00 cu. Yds. Misc 28 acres $30,000 acres Contingency Total Site Costs Parkway Costs Relocate, Remediate 8< Demo Relocation & Consultant Remediation Demolition Contingency Total Relocate, Remediate & Demo Consulting Fees/Soft Costs Ehlers & Associates DSU SEH Engineering Developer A & E -Site Property Taxes & Property Operating Costs Appraisals Market Study Survey Contingency Total Consulting Fees Legal Fees Developer's Legal Lender`s Legai City's Legal Bond Counsel Other Legal Contingency Total Legal 7,161,000 6,768,000 7,955,400 300.000 1,695, 000 385, 000 367,250 192,000 840, 000 840,000 600,000 1,100,000 25,000 25,000 25,000 280,000 251,000 40,000 15, 000 65, 000 340, 000 25,000 75,000 60,000 15,000 22,184,400 3,480,000 1,680,000 2,540,000 726, 000 515, 000 H-1 149 Financing Financing Fees, etc. Interest Bond issuance Costs Contingency Land Acquisition SR Buckles Pearo Rayco Duffy Greif Smith Contingency Total Costs Total Financing Total Land Developer Fee (15% of Costs) + $10k/mo Admin Total Uses 226, 000 790, 000 284, 000 1,300,000 2,090,000 375, 000 350, 000 1,050, 000 2,650,000 1,600,000 400,000 8, 515, 000 100, 000 18, 856, 000 3,328,400 15.0% 184,400 1-I-2 150 SCHEDULEI FClR1VI (lF RF.IIF.VF.i,C1PF.R PR(l F(?RMA Davolopmcnl Prcla•ma °°_ _ __~... ~T___ _ , _ _ T Goof S;lmmaty C F'2hed'_t: =y'=cho5+s ~ F -ahe~. ~ •,~z-.-,9~~Sv~r3 ....~ ii rCIDLie itl Oil . ,. .. _. ...». , __ _-_ _- .. .,..,, __~__~ s~ Tr,i:rl I!'~ft1sL7UGt43f'p ,. ,~~, _~...~ 4} . ~., .. ..., ur" _ ....__ rr--_ ,u ~Toia3 Can tructi ,n costs '.23D,GuD ~ aa h l"1 'i E~ ~ ~ 3~ i ! ~Gt't~GGD . r~ ri ~ i At i ~t :r= . _ .~..,. '~ .. sl w.~!%tj ~ _ t__ Testa! 1AaikMin Ty0.000 p i , -: i,,,. -. ?, C~I,,.r C: r: 27._:3 Total Carry~nr~ GGSiS 542.CAB p: _ tr,,;r.;,,~ G _ ., ~-,,~ - - - 3,~~_~~ ~ .- ,,:, _,~ - t' ;~-- ~i - - -- ~_,- - - ~ . ' ~t: r ~ . :.4::: s~ ., lotai QIh l S ,ft ~c as 137. , 7oia! Projec. Cost ~.33A,US70 Housing 8reakdcvrn ~~~~~~ Ret5,1 val»a _ i3nit~ ~ G071U9tttitliioill~ 9,4Sp,OD7 ~~J Commarciai SDaco 1,~D;3,U~D 72,©D© ~'KOm.c S'_,.. ~ rn4 .______~~ ---- #S n -` .~ 8#» a_,. yr _ I-1 151 CITY COUNCIL LETTER Meeting of: July 24, 2007 AGENDA SECTION: Consent ORIGINATING DEPT.: CITY MANAGER NO: Community Development APPROVAL ITEM: Resolution 2007-122, Approving BY: Randy Schumacher BY: Authority's Issuance of Revenue Bonds DATE: July 18, 2007 Background: The City and EDA entered into the Contract for Private Redevelopment with Huset Park Development Corporation on October 25, 2004. Under the original contract, the EDA agreed to help finance certain "Public Redevelopment Costs" of the project through issuance of Tax Increment Revenue Notes, referred to as Initial Notes, with the further expectation that Initial Notes, would be replaced by Tax Exempt Revenue Bonds, referred to as Refinancing Notes. The EDA has not issued any Initial Notes to date, but most of the Public Redevelopment Costs have been incurred by Schafer Richardson and Phase 1 and part of Phase 2 of the original development are now substantially complete, The redeveloper has now requested that the EDA issue the Tax Increment Revenue Bonds. The proceeds will be used to reimburse the redeveloper for a portion of the Public Redevelopment Costs incurred to date. The Revenue Bonds are sold to third parties such as banks, and are secured solely by a portion of the Tax Increment from the TIF District; they are not a general obligation of the EDA or the City. The Tax Increment from housing units already completed or under construction is expected to be sufficient to pay at least 125 percent of the debt service on the Revenue Bonds. Steve Bubul, our legal counsel from Kennedy & Graven, and Mark Ruff, our fiscal agent from Ehlers & Associates, will be present to provide more detail. and answer any questions concerning these issues. Recommendation: Adoption of Resolution 2007-122, consenting to and approving the issuance by the Columbia Heights Economic Development Authority, Minnesota of Tax Increment Revenue Bonds to finance certain public redevelopment costs of the Huset Park area Tax Increment Financing District within the downtown CBD Redevelopment Project under Minnesota Statutes, Sections 469.174-469.1799, as amended. Recommended iVIotion: Move to waive the reading of Resolution 2007-122, there being an ample amount of copies available to the public. Move to Adopt Resolution 2007-122, a Resolution consenting to and approving the issuance by the Columbia Heights Economic Development Authority, Minnesota of Tax Increment Revenue Bonds to finance certain public redevelopment costs of the Huset Park area Tax Increment Financing District within the downtown CBD Redevelopment Project under Minnesota Statutes, Sections 469.174-469.1799, as amended; and furthermore, to authorize the Mayor and City Manager to enter into an agreement far the same. COUNCIL ACTION: 152 RESOLUTION N0.2007-122 CITY OF COLUMBIA HEIGHTS, MINNESOTA CONSENTING TO AND APPROVING THE ISSUANCE BY THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY, MINNESOTA OF TAX INCREMENT REVENUE BONDS TO FINANCE CERTAIN PUBLIC REDEVELOPMENT COSTS OF THE HUSET PARK AREA TAX INCREMENT FINANCING DISTRICT WITHIN THE DOWNTOWN CBD REDEVELOPMENT PROJECT UNDER MINNESOTA STATUTES, SECTIONS 469.174-469.1799, AS AMENDED BE IT RESOLVED By the City Council of the City of Columbia Heights, Mimiesota (the "City") as follows: Section 1. Findings 1.01. The Columbia Heights Economic Development Authority (the "Authority") and the City previously established the Huset Park Area Tax Increment Financing District (the "TIF District") pursuant to authority granted by Minnesota Statutes, Sections 469.174-469.1799, as amended (the "Tax Increment Act"), within the Downtown CBD Redevelopment Project (the "Redevelopment Project"), and adopted a tax increment financing plan for the purpose of financing certain improvements within the TIF District. In order to provide for the redevelopment of the Redevelopment Project and the TIF District, the Authority entered into a Contract for Private Redevelopment, dated as of October 25, 2004, between the Authority, the City and the Redeveloper, as amended by an Amended and Restated Contract for Private Redevelopment thereto dated August 1, 2007 (the "Contract"}. 1.02. Pursuant to Section 469.178 of the Tax Increment Act, the Authority is authorized to issue and sell its bonds for the purpose of financing or refnancing public redevelopment costs of the Redevelopment Project and to pledge tax increment revenues derived from a tax increment financing district established within the Redevelopment Project to the payment of the principal of and interest on such obligations. 1.03. Oil July 24, 2007, the Board of Camiiiissioners (tile "Board"} of the Authority is scheduled to consider a resolution (the "Bond Resolution''), authorizing the issuance of its Tax Increment Revenue Bonds (Huset Park Area Redevelopment Project} Series 2007 (the "Bonds"}, in a principal amount not to exceed $3,200,000. The Bonds are proposed to be issued pursuant to the terms of the Band Resolution and a Paying Agent Agreement, dated on or after August 1, 2007 (the "Paying Agent Agreement"}, between the Authority and a paying agent to be designated by the Authority (the "Paying Agent"). The Bands shall be secured by the terms of the Paying Agent Agreement and shall be payable solely from Available Tax Increment (as defined in the Paying Agent Agreement) that is expressly pledged to the payment of the Bonds pursuant to the terms of the Paying Agent Agreement. 1.04. Pursuant to City Council Resolution No. 2001-62 (the enabling resolution for the Authority), the City Council must approve the issuance of bonds by the Authority. Section 2. Approval of Bands. 2.01. The City Council Hereby approves and. consents to the issuance by the Authority of the Bonds upon the teens and pursuant to the conditions set forth in the Bond Resolution. and the Paying 153 Agent Agreement. The City Council approves and consents to the application of the proceeds derived from the sale of the Bonds to the financing of certain public redevelopment costs of the Redevelopment Project, the payment of the casts of issuance and other related costs with respect to the Bonds, and the funding of the Reserve rand. 2.02. As provided in the Paying Agent Agreement and the Bonds, the Bonds are not to be payable from nor charged upon any funds of the Authority or of the City, other than the revenues pledged to the payment thereof; the Authority and the City are not subject to any liability thereon except from such revenues pledged to the payment thereof, and no holders of the Bonds shall ever have the right to compel any exercise of the taxing powers of the Authority or the City (other than as contemplated by the pledge of tax increment revenues under the terms of the Paying Agent Agreement} to pay any of the Bonds or the interest thereon, nor to enforce payment thereof against any property of the Authority or City other than the property expressly pledged thereto; the Bonds shall not constitute a charge, lien, or encumbrance, legal or equitable, upon any property of the Authority or the City other than the revenues expressly pledged thereto; each Bond issued under the Paying Agent Agreement shall recite that the Bonds are issued without a pledge of the general or moral obligation of the Authority, and that the Bonds, including interest thereon, are payable solely from the revenues pledged to the payment thereof; and no Bond shall constitute a debt of the Authority or the City within the meaning of any constitutional, statutory, or charter limitation. Passed and adopted this _ day of Offered by: Second: Roll Call: CITY OF COLUMBIA HEIGHTS, MINNESOTA Mayor Gary L. Peterson Attest: Patricia Muscovitz, CMC City Clerk 154 °°"~~~III ~I III ~7a us. sanl~ l~ • ~ 20o sa,~~h sixth s Minneapolis, MN 55442 ~' (612) 337-9304 tclephane ~ {612) 337-9310 fax hrtpJ/www kennedy-graven.com C H A R T E R E D, P. e. A#lirtnative Actian, Equal Oppartunirq Employer STEPHEN d. BUBLTL AiWrney at Law Direct Dial (bit) 33?-922$ Email: sbubulQkannedy-gra3+en.com July 18, 2007 Randy Schumacher City of Columbia Heights Columbia Heights City Hall 590-40th Avenue Northeast Columbia Heights, MN 55421-3835 RE: Huset Park Redevelopment Matters Dear Randy: You asked me to summarize the actions before the City Council and EDA Board on July 23 and 24, in connection with financing far Huset Park Redevelopment project. As you know, the City and EDA entered into the Contract for Private Redevelopment with Huset Park Development Corporation (the "Redeveiopei"j dated October 25, 2004 (the "Original Contract"}. Under the Original Contract, the EDA agreed to help finance certain "Public Redevelopment Costs" of the project through issuance of tax increment revenue notes (referred tc> as "Initial Notes"}, with the further expectation that Initial Notes would be replaced by tax-exempt revenue bonds (referred to as "Refinancing Notes"}. The EDA has not issued any Initial Notes do date, but most of the rublic Redevelopment Costs have been incurred and Phase I and part of Phas4 II of the original de~clvYm~nt are now substantially complete. The Redeveloper has now requested that the EDA issue the following: 1. Tax Increment Revenue Bonds (Huset Park Redevelopment Project} Series 2007, in the maximum principal amount of X3,200,000 (the "Revenue Bonds"). The actual prlrleipal amount is expected to be closer to $2,880,000 (the final amount will be determined upon pricing of the bonds on July 25}. These bonds are the equivalent of "Refinancing Notes" under the Original Contract. The proceeds will be used to reimburse the Redeveloper for a portion of the Public Redevelopment Costs incurred to date. The Revenue Bonds are sold to third parties (such as banks), and are secured solely by a portion of the talc increment from the 'I'IF District; they are not a general obligation of the EDA or the City. Tile tax increment from housing units already completed or under construction is expected to be sufficient to pay at least 125a1o of the debt service on the Revenue Bonds, 2. Taxable Tax Increment Revenue Note, Series 2f~d7A in the principal arna~ir~t cif $6,650,000 (the "'I"IF Note"}. The Note represents one of the Lf~t~ai Totes dcs~<ribcd i~3 ~~u Gi~gi~~a> Cdlntra~Gt. This is a sfD-cc111ed "~,2ay a.~ y£}ll n£3t~.'," is33ed tGE tllf" Re~PE'P'InrPr <rat~ler t~??n t~hyrd ~art-?p~s> an represents reimbursement of additional Public Redevelopment Coss above and beyand tie amount 3148I1v1 CL205-23 156 randy Scutnacher July 18, zoQ7 Page 2 of 2 reimbursed from proceeds of the Revenue Bonds. The T]F Note is secured by a portion of the talc incremen4 fr:;rn the TiF T1iyfi arty rn; a c~*~whnrriin~~t„~a tr~ei~e, tin, f}ie 17a~,areni,~~ Rm~~e. The T'iT+' 74Tntw urill tnairI only if and to the extent the remaining phases of the development are completed and generate sufficient tax increment. Like the Revenue Bonds, the TiF Note is not a general obligation of the EDA or the City. The maximum tax increment assistance descn`bed in the Original Contract was 57,995,4U0, subject to adjustment based on actual expenditures. Following the adjustment procedures under the Original Contract, issuance of the Revenue Bonds and the TIF Note, combined, will represent an approximately $1,540,000 increase (subject to fiarkher adjustment as final costs are determined}. In connection with issuance of the Revenue Bonds and the TIF Note, the City and EDA will also consider revisions to' the Contract, which are included in an Amended and Restated Contract for Private Redevelopment (the "Amended Contract"). The Amended Contract includes these major points: • addresses issuance of the Revenue Bonds and some technical details regarding how tax increment is pledged to all obligations. • Updates the description of the various Phases of development, and revises the construction schedule. • Provides for an EDA interfund tax increment loan to repay $75,004 in environmental cost ovemuts encountered in construction of the Parkway. (The EDA and Redeveloper will share equally in the tax increment available afleer each debt service payment on the Revenue Bonds). To summarize,. the actions before the City Council and EDA are as follows: Council: Resolution approving the Amended and Restated Contract. 2. Resolution approving issuance by the EDA of the Revenue Bonds. EDA: 1. Resolution approving the Amended and Restated Contract. 2. Resolution approving sale of the Revenue Bonds. 3. Resolution approving issuance of the TIF Note. I will be available for questions at the Council meeting ors July 23 and (if necessary} at the EDA meeting on July 24. if you or Council memberslEDA comrnissoxters have questions before then, please contact me. Very truly yours, Steppe ~. F~ubu 31481tvt ~»~ CL~`v5-23 157 CITY COUNCIL LETTER MEETING OF: JULY 23, 2007 AGENDA SECTION: PUBLIC HEARINGS NO: ORIGINATING DEPT: FINANCE CITY MANAGER APPROVAL ITEM: ORDINANCE PROVIDING FOR THE BY: WILLIAM ELRITE BY: ISSUANCE AND SALE OF APPROXIMATELY $1,000,000 GENERAL DATE: JULY 17, 2007 OBLIGATION IMPROVEMENT AND STREET REHABILITATION BONDS, SERIES 2007A Na: This is the second reading of Ordinance No. 1527. The attached ordinance was drafted by Steve Bubul of Kennedy & Graven for the saie of approximately $1,000,000 in G.O. Improvement and Street Rehabilitation Bonds. Mark Ruff of Ehlers & Associates will be available at the July 23rd meeting to explain this in more depth. RECOMMENDED MOTION: Move to waive reading of the Ordinance No. 1527 there being ample copies available to the public. RECOMMENDED MOTION: Move to adopt Ordinance No. 1527, being an Ordinance providing for the issuance and sale of approximately $1,000,000 General Obligation Improvement and Street Rehabilitation Bonds, Series 2007A. WE:pvm Attachment: Ordinance 1527 COUNCIL ACTION: 158 ORDINANCE NO.152? ORDINANCE PROVIDING FOR THE ISSUANCE AND SALE OF APPROXIMATED.' Si,400,4U0 GENTy,, i2AL.. (li2L.if'tlTIC1N CTRF.E.T RFNARTt.i'TA'i'itlN RONT)S, SERIES 2flfl?A THE CITY OF COLUMBIA HEIGHTS DOES ORDAIN: It is hereby determined that: (a} The City is currently undertaking and has completed certain public improvements designated as the 2006 & 200? Street Rehabilitation Projects (collectively, the "Street Rehabilitation"), pursuant to the Charter of the City of Columbia Heights (the "Charter"). (b) It is necessary and expedient to the sound financial management of the affairs of the City to issue its General Obligation Street Rehabilitation Bonds, Series 200?A (the "Bonds") in a principal amount not to exceed $1,000,000, pursuant to the Charter to provide financing for the Street Rehabilitation. 2. Ehlers & Associates, as financial advisor to the City, is authorized to negotiate the sale of the Bonds in the maximum principal amount specified in Section 1(b), in accordance with terms of proposal approved by the City Finance Director. The City Council will meet on August 2?, 200? or such other date specified by the City Manager in accordance with the Charter, to consider the sale of the Bonds and take any other appropriate action with respect to the Bonds. 3. This ordinance shall be in full force and effect from and after thirty (30) days after its passage. First Reading: 3uly 9, 2007 Second Reading: Date of Passage: Offered by: Second by: Roll Call: Mayor Gary L. Peterson Attest: Patricia Muscovitz CMC City Clerk 159 sr L, 1 ~ t 11~~ ~ ~~ ~~~P. ~~f .~1 ~ ~ ! ". )1 )l s c~Isc~d t $1,000,000 G.O. Street Rehabilitation Bonds, Series 2007 (the "Bonds"). ur~c~se: To reimburse the City for the 2006 and 2007 street reconstruction projects (the "Project"). ~riin: The Bonds are being issued pursuant to the City's Charter, to finance the Project in the amount of $970,000. The City Council can issue G.O. bonds for corporate purposes with asuper-majority vote fo the Council and a 30 day waiting period for a petition to trigger a referendum. Financing the Project requires a bond issue in the amount of $1.,000,000. The proposed finance plan consists of the sources and uses of funds attached to this Report. ~$ig: The City has an underlying "A 1 " rating by Moody's Investor Services. A rating will be requested for this issue. 'T~~°~a~~'El t€~r~: Principal on the Bonds will be due on February 1 in the years 2009 through 2018. This schedule assumes no capitalized interest, interest only payment on August 1, 2008, and 10 years of full. payments thereafter. Bands maturing February 1, 2016, and thereafter will be subject to prepayment at the discretion ofthe City on February 1, 2015. ur~elirsg t~ttt The Bonds are expected to be paid with tax levies beginning with taxes payable in 2008. i~i~iort Iu~~: The first interest payment on the Bands will be August 1, 2008, and semiannually thereafter on February 1 and August 1. The projected debt service and flow of funds 3 ~ ~= ;q; . Prepag•ed by Ehlers & Associates, Inc. 160 are attached to this Report. ask ualified. The Bonds will be "qualified tax-exempt obligations", which will allow banks to buy the Bonds and result in slightly lower interest rates. Arbitrage. With increasing short-term investment rates, IRS rules regarding the amount of interest that the City may earn on bond proceeds is more of a concern. Because the City/EDA is issuing more than $5,000,000 this calendar year, the project must meet certain spend down requirements within two years to avoid the requirement to rebate or repay interest earned that is more than the interest rate on the bonds. The excess interest earnings are known as arbitrage. The City will also need. to keep its debt service funds within IRS parameters to avoid penalties on carrying too high of a balance during the life of the issue. ~~he~efie: Attachrs~~nt~: Sources and Uses of Funds First reading of ordinance Second reading of ordinance Publish notice in newspaper Conference call with Rating Agency Award sale of bond Closing date Proposed Debt Service Schedule Ehlers Contacts: July 9, 2007 July 23, 2007 By July 26, 2007 Week of August 20, 2007 August 27, 2007 Week of September 17, 2007 Financial Advisors: Mark Ruff (651) 697-8505 Shelly Eldridge (651) 697-8504 Stacie Kvilvang (651} 697-8506 a_^ Prepared by Ehlers ~ Associates, lnc. 161 Bond Analysts: Diana Lockard (651) 697-8534 Debbie Holmes (651) 697-8536 Band Sale Coordinator: Connie Kuck (651 } 697-8527 The Official Statement for this financing will be mailed to the Council Members at their bonze address for review prior to the sale date. ,~~=r. 162 Prepared by Ehlers & Associates, lrlc. 163 City of Columbia Heights, MN $1,000,000.00 G.O. Street Rehabilitation Bonds, Series 2007 Sources & Uses -----~ I Dated 09/15/2007 I Delivered 09/15/2007 Sources Of Funds ~ Par Amount of Bonds _ $1,000,000.00 I Total Sources $1,000,000.00 Uses Of Funds ', Total Underwriter's Discount (1.000%) _ 10,000.00 Costs of Issuance 19,000.00 Deposit to Project Construction Fund 970,000.00 ' Rounding Amount 1,000.00 Total Uses $1,000,000.00 I I series 2007 go street reh i SINGLE PURPOSE (7/18/2007 i 9:52 PM i I 164 ~ ---~ City of Columbia Heights, MN ~ $1,000,000.00 G.O. Street Rehabilitation Bonds, Series 2007 ~I Debt Service Schedule I Date Principal Coupon Interest Total P+I Fiscal Total ~' 09/15/2007 - - - - - 08/01/2008 - - 39,482.44 39,482.44 - ', 02/01/2009 65,000.00 4.250% 22,490.00 87,490.00 126,972.44 ~, 08/01 /2009 - - 21,108.75 21,108.75 - ', 02/01 /2010 85,000.06 4.360°l0 21,108.75 106,108.75 127,217.50 ', 08/01/2010 - - 19,281.25 19,281.25 - 'i 02/01/2011 90,000.00 4.350% 19, 281.25 109, 281.25 128, 562.50 I 08/01/2011 - - 17,323.75 17,323.75 - ~ 02/01/2012 95,000.00 4.400% 17,323.75 112,323.75 129,647.50 08/01/2012 - - 15,233.75 15,233.75 - 02/01/2013 100,000.00 4.450% 15,233.75 115,233.75 130,467.50 08/01/2013 - - 13,008.75 13,008.75 - 02/01/2014 105,000.00 4.500% 13,008.75 118,008.75 131,017.50 08/01/2014 - - 10,646.25 10,646.25 - 02/01/2015 105,000.00 4.550% 10,646.25 115,646.25 126,292.50 08/01/2015 - - 8,257.50 8,257.50 - 02/01/2016 110,000.00 4.600% 8,257.50 118,257.50 126,515.00 08/01/2016 - - 5,727.50 5,727.50 - 02/01/2017 120,000.00 4.650% 5,727.50 125,727.50 131,455.00 08/01!2017 - - 2,937.50 2,937.50 - 02/01/2018 125,000.00 4.700% 2,937.50 127,937.50 130,875.00 Total $1,000,000.00 - $289,022.44 $1,289,022.44 - ', Yield Statistics I Bond Year Dollars _ $6,337.78 ', Average Life 6.338 Years Average Coupon 4.5603120% Net Interest Cost (NlC) 4.7180960% True interest Cost (TiC) 4.7366910% Bond Yield for Arbitrage Purposes 4.5479367% _____ - Ail Inclusive Cost (AIC) 5.1026559% IRS Form 8038 ', Net Interest Cost 4.5603120% Weighted Average Maturity 6.338 Years series 2067 go street reh I SINGLE PURPOSE 1 7/18/2007 1 9:52 PM i ~. _ ~ 165 City of Columbia He%ghts Public Works Department Work Session Discussion Item Work Session Date: July 16`i', 2007 Prepared by: Kevin Hansen, Public Works Director/City Engineer Item: City-wide Street Rehabilitation Program Update of 20-year Financial Projection -Revenue 1'~eeds Background: In 1996 the City of Columbia Heights adapted Resolution No. 96-28 that initiated a Street Rehabilitation Program. This program was set up to preserve the large investment in and extend the life of the local street system. Under the Street Rehabilitation Program, the City is divided into seven zones (ar areas) providing far a repeating 8-year program, with the additional year added for alleys ar other projects. Analysis/Conclusions: At the time that the original program was set up, a 20-year cash flaw projection was prepared by Public Works. At that time,. a detailed analysis of the condition of the City streets was not available. Therefore, assumptions were made based on the age of the street section and the likely treatment to extend that section life. Many streets were assumed to be in satisfactory condition, with the recommended treatment of a mill and overlay. As the program moved into the construction phase, detailed analysis became available each year, and staff treatment recommendations have resulted in mare partial and full reconstruction than originally projected. Staff provided the City Council with updates of the 20-year cash flaw in 2002 ((1/07/02} and 20{35 (1/17/OS}. With a complete 8-~ecxr cycle now completed, and work in Zones 2 & 3 currently ongoing in the second $-year cycle, a mare accurate update of that 20-year projection has been prepared and attached as Exhibit "A". Exhibit "A" prajeets out through the year 2020, carrying. out three full cycles through the 8-year citywide program, A couple of important assumptions should be noted of Exhibit "1Z" • The City pays far the first seal cant after one of the three resurfacing treatments. • Many Zones have been split into quadrants, adding additional years to the overall program. • The assessment policy and associated City share (percentage) remains constant aver the projection. • Casts and revenues are estimated with an annual 3°l4 inflation factor. • Alley or other construction is assumed in each subsequent `off' year @ $170,000 (unfactored). Tl':is :-:gay or may nit occur. • Additional program revenue of 5270,000, annually, is included from the certification of th€: City's Laval State-Aid: system, which 1?as to be recertified every two years and is not guaranteed. 16E3 Work Session Item: City-wide Street Rehabilitation Program Update of 20-year Financial Projection W UI'K JGJSSUIl UiilC. J U!y 1 V , GVV i Page 2 In the 2002 and 2045 20-year financial projection distributed to the Council, it was reported that the fund would be drawn into the red,. or incur a negative operating balance for 5 and 8 consecutive years, respectively, but end the 3'~ eight year program cycle in 2020 with a fund balance of $454,000 - .DS50,044. Exhibit `A' shows that the program is now expected to incur negative operating losses for 12 of the last i 3 years. There are two main reasons for this: l . Accurate analyses of the existing street conditions have resulted in more partial and full reconstruction than originally projected. 2. Construction costs have experienced significant increases over the last several years. To financially sustain this extremely important program, additional revenue is needed. We are currently applying for and receiving the maximum amount of State-Aid funds with. the certification of our system. General Obligation (G.O.} Bonding is recommended to provide the necessary financial support for the program. The impact of a $800,040 and $1,000,000 bond revenue are shown on exhibits "B' and `C.' As originally set up, the program is #hought to be continuous and ongoing, but that costs should decrease as the condition of the street is brought up and maintained at or above a reasonable level At the end of three 8-year cycles, the program should have a large enough balance to continue and sustain recommended treatments. The program will incur negative operating balances over the remaining two full program cycles without additional revenue or changes to the current assessment Polley. It is critical to recognize that infrastructure represetzts a huge public investment and in the long term., it is more cost effective to make the investment to maintain streets at a satisfactory or good canditic~n level as opposed to letting the streets go and bear that extraordinary cast in the future. Recommended Motion: Authorize the sale of $1,000,000 of G.O. Bands with the proceeds dedicated to the Infrastructure Fund 430. Attachments: Exhibit `A' - 2407 2(!-year caste flow update Exhibit `13' - 200'7 20-year cash flow update w/~8Q0,000 new revenue Exhibit `C' - 2007 20-year cash flaw update wl~ 1,000,00(} new revenue 167 EXHIBIT A Total Total Total LS, GF, B Other Fund 430 Year Zane Canstructian Assessment Ci Share Contrib GitY Cantrib Cash Flaw 1(~` y003,.^X~3 1 1997 1 & 2 $1,165,020 $916,841 $248,179 $1,000 $795,202 1998 3 $861,533 $554,544 $308,989 $50,000 $194.882 $733,095 1999 ALLEY $661,710 $330,657 $331,053 $50,000 $130,000 $582,042 20{)0 4 $650.985 $397,300 $253,685 $50,000 $212,500 $590,857 2001 5 $838,428 $609,043 $229,385 $50,000 $171,000 $582,472 2002 6A $829.920 $414,960 $414,960 $50.000 $222.715 $440,227 2003 68 $750,277 $449,735 $300,542 $50,000 $270,000 $459,685 20x4 7A $1,421,394 $892,289 $529,105 $50,000 $270,000 $250,580 2005 2006 p,~tr $141,137 "" Fina i transfer from project to infrastructure fund had not been made 2006 78 & 1A $1.440,835 $920,835 $520,000 $50,000 $270,000 ($58,863) 2007.. > :•: •:~•'.&•3 -:•:~: $1,t22,285 ~ ~ .~.~•$817,776.:• :~:-:~>:~~r:~: :.<>-x,000 LS $270,000.•. •.•...•.•..$~;~• $50,000 GF 2008 SPEGiAL $1,072,777 $181,982 $890,795 $50,000 GF $870,000 $35,833 {Univ Ave !Zone 1 SGy $531,087 $130,405 $400,682 $100,000 ($264,649) {50th Tum Lane t Zone 2 & 3 2009 4 $1.075,626 $685,258 $390,368 $270,000 ($84,535} 2010 5 $831,693 $654,973 $176,7 $270,000 $8,745 2011 6 $2,OL'2,413 $1,232,553 $849,860 $50,000 $270,000 ,$521,115} 2{312 7 $788,594 $6,157 $282,437 $50,000 $270,000 ($483,552} 2013 t $2,155,222 $1,590,933 $564,289 $50,QD0 $270,000 ($727,841} 2014 2 $1.438,421 $1,037,314 $401,107 $50,000 $270,000 ($808,948} 2015 3 $645,821 $507,893 $137,928 $50,000 $270,000 ($626,876) 2016 ALLEY $0 ${3 $0 $50,000 ($576,876} 2017 4 $1,093,832 $852,t48 $241,684 $50,000 $270,000 ($498,560} 2018 5 $814,ti3 $577,935 $236,178 $50,~ $270, ($414.738} 2019 6 $723,866 $462,821 $261,045 $50,000 $270,000 ($355.783} 2020 7 $794,648 $596.183 _$198,465 $270, ($234,248} TOTAL: $IGJt { ~Oy $ E ~,aiLVye7p7mT $~y®'HE7a ®a744~ $~, e'~ ~ 8l/~7 168 EXHtBiT B Year 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Au 2006 2007 2008 I 2009 2010 2011 2012 2013 2(514 2015 2016 2017 2018 2019 TCSTAL Zone 1& ALLE E E 7 iit 78 & 1 SPECIAL Total Total Total LS, GF, B tither Fund 434 Construction Assessment G` Share Contrib City Contrib Cash Flow $8os,381 $1,165,020 $916,841 $248,179 $160,0 $795,202 $861,533 $554,544 $306,989 $50,000 $194,882 $733,095 $661.710 $330,657 $331,053 $50,000 $130,000 $582,042 $650,985 $397,300 $253,685 $50,0 $212,500 $590,$57 $838,428 $609,043 $229,385 $50,0«5 $171,000 $582.472 $829,920 $414,960 $414,980 $50,000 $222,715 $440,227 $750,277 $449,735 $300,542 $50,000 $270,000 $459.!685. $1,421,394 $892,289 $529,105 $50,000 $270,000 $250.580 ** $141,137 (50th Tum Lane /Zone 2 & 3 SC} 4 $1,075,626 $685,258 $390,368 $270,000 $414,783 5 $831,693 $654,973 $176,7 $270,000 $508,063 6 $2,Q82,413 $1,232,553 $849.860 $50,000 $270,000 ($21,797} 7 $788,594 $506,157 $282,437 $50,000 $270,000 $15,766 1 $2,155,222 $1.590,933 $564,285 $50,(540 $270,00 ($228,523} 2 $1,438,421 $1,037,314 $401,107 $50,000 $270,000 ($309,630} 3 $645,821 $507,893 $137,928 $50,000 $270,000 ($127,558} Y $0 $0 $0 $50,000 ($77,558} 4 $1,093,832 $852.148 $241,684 $50,000 $270,000 $758 5 $814,.113 $577,935 $236,178 $50,000 $270,0 ,580 6 $723,866 $462,821 $261,045 $~?, $270,000 $143,535 7 $794,648 $596,183 $198, $50, $270, $265,070 $23,790, $15,320,535 $8.469,965 $6,111,097 *"' Fi nal transfer from project to infrastructure fund had not been made $1,440,835 $920,635 $520,000 $50,000 $270,000 ($58,863} . •: $1,122,285 ~~~~ • ~• -•$817,776. ......$304,5 .. $50,000' -.LS.• ~.-. ,-•$270,000...-.. .....•.•.$6,628 $50,000 GF $1,072,777 $181,982 $890,795 $50,000 GF $870,000 $35,833 ;Univ Ave t Zone 1 SG7 $531,087 $1315,405 $400,68"1 $800,000 B $100,000 $535,151 169 EXHIBIT C Total Total Totaf LS, GF, 8 Other Fund 434 Year Zane Gonstnaotion Assessment Ci Share Contrb City Contrib Cash. Flow 1996 ~ $883,381 1997 1 8 2 $1,165,020 $916,841 $248,979 $160,000 $795,202 1998 3 $861,533 $554,544 $306,989 $50,000 $194,882 $733,Q95 1999 ALLEY $661,710 $330,657 $331,053 $50,000 $130,Q00 $582,042 2000 4 $650,985 $397,300 $253,685 $50,000 $212,500 $590,857 2IX71 5 $838,428 $609,043 $229,385 $50,000 $171,000 $582,472 2002 6A $829,920 $414,960 $414,960 $5{7,000 $222,715 $440,227 200:1 6B $750,277 $449,735 $300,542 $50,000 $270,000 $459,685 2004 7A $1,421,394 $892,289 $529,105 $50,000 $270,000 $250,580 2005 2006 Au dit "" $141,137 *` Fina! transfer from project to infrastructure fund had not fs~n made 2006 76 & 1A $1,440,835 $920.835 $520,000 $50.000 $270,000 ($58,863} ......... ......... ........ ......... 2007 .......... .......... .......... .......... 2 & 3 .................. .................. .................. .................. $1,922,285 ................ ................ ................ ................ $817,776 ................ ................ ............... ................ $304,509 ................... ................... .................... ................... $50,000 LS ................ ................ ................ ................ $270,000 .............. .............. .............. .............. $6,628 $50,000 GF 2008 SPECIAL $1,072,777 $181,982 $890,795 $50,000 GF $870,000 $35,833 {Univ Ave /Zone 1 SC} $531,{}87 $130,405 $400,682 $1.000,000 B $100,000 $735,151 2{709 2090 2021 2012 2013 2014 202 5 2016 2017 202 8 2019 TOTAL {50th Tum Lane /tone 2 & 3 SC) 4 $1,075,626 $685,258 5 $831,693 $654,973 6 $2,082,413 $1,232,553 7 $788.594 $506,157 1 $2,155,222 $1,590,933 2 $1,438,421 $1,037,314 3 $645.821 $507,893 Y $0 $0 4 $1,093,832 $852,148 5 $814,113 $5T7,935 6 $723,866 ,s21 7 $794.648 $596.183 $390.368 $176,720 $849,860 $282,437 $564,289 $401,107 $137,928 $0 $241,684 $236,178 $261,045 $23,730, $15,320,535 $8,469,965 170 $50.000 $5d},p00 $50,000 $50.000 $50,(700 $50,000 $3,000 $50, $50, $270,000 $270,000 $270,000 $270,000 $270,0(M7 $270,000 $270,000 $270,000 $270, $270, $6,111, 7 $614,783 $708,063 $178,2 $215,766 ($28,523} {$1,630} $72,442 $122,442 $200,758 $284,580 $343,535 CfTY OF COLUMBIA HEIGHTS ANALYSIS OF: INFRASTRUCTURE FUND #430 prepared 06/29/2007 SIX MO ENDED 2004 2005 2006 6/30/07 REV & TRANSFERS-tN Investment income 6,940.63 3,658.00 7,700.00 - Budgeted transfers-in from: Liquor fund 50,0.00 50,000.00 50,000.04 25,OOOA2 General fund - - - 25,000.02 Other 2,175.69 - - - Subtotal 59,i 16.32 53,658.00 57,700.04 50,000.04 EXP & TRANSFERS-OUT Other Svc & Chgs Anoka Ca GID City extract - 600.00 - - Anoka Co DPBMD license - - 516.50 - Cityviewsupport - - 1,943.88 - Capital Outiay pro) 0402 87,224.45 - 111,759.00 - Subtotal 8.7,224.45 600.00 114,219.38 - CHANGE IN FUND BALANCE (28,108.13) 53,058.00 (56,519.34] 50,000.04 FUND BALANCE: beginning 172,706.60 144,598.47 197,656.47 141,.137.13 ending 144,598.47 197,656.47 141,137.13 191,137.17 171 CITY OF C4L UMBIA HEIGHTS DATE: JUNE 29, 200'7 TO: WALT FEHST CITY MANAGER FROM: WILLIAM ELRITE FINANCE DIRECTOR RE: BONDING FOR INFRASTRUCTURE FUND Until the late 19$0's the City assessed for all street, sewer, and water improvements. In the late 1984's this practice was eliminated with sewer and water improvement funding coming from the respective Sewer and Water funds. At that time the City also established an Infrastructure fund to pick up 60% of all street improvements with only 44% being assessed to the benefiting properties. With the City picking up the majority of street improvement costs, an Infrastructure fund was created and funded initially with a small transfer of fund balance from the General and Liquor funds. Over the years. small annual transfers from the General and Liquor funds have maintained the Infrastructure fund. However, it has always been significantly under funded and at times projects have been delayed because there were not adequate amounts in this fund. When the City hired Kevin Hansen he restructured the state aid funding by having our system certified. This allowed us to use state aid street maintenance dollars to supplement the infrastructure funding level. However, this still has not provided an adequate revenue base. In retrospect, when the fund was initially established the City should have said bonds to provide an initial funding base that could have been maintained with annual transfers from the Liquor and General funds and state aid maintenance. At this time it is my recommendation that the City Council review the option of selling bonds to provide funding for the Infrastructure fund. Kevin is still working an estimates for the dollar amount of this bond issue, which we estimate to be approximately $1,440,444. The proposed bond sale would be a G.O. with the annual principal and interest paid from a property tax Levy. A $1,400,040 G.O. band with aten-year Life would require annual payments of approximately $125,440. Based on approximately 6,000 properties in Columbia Heights, this would equal an average annual property tax increase of less than $25. The reason for bringing this recommendation up at this time is that we will be selling lease revenue bands to fund the construction of the two new liquor stores. If we have a G.O, bond sale at the same time there will be savings in attorney fees, Moody rating fees, publication and other expenses. I will be available at the work session to provide more information regarding the City's Infrastructure fund and the timeline for a bond sale. If you require anything additional, please let ine know. WE:sms 4746292CM 172 CITY (7F GQL.Ui~tC3iA FiEIGNTB ANAt_"YSIS CJ~F: IhlFR,~STRUCTURE FtJt~ID ~d30 prepared 06t291~20t~7 SIX MC ~~dEb 244~t 2005 yJ 2008 .~ fii30147 REV & TRANSFCRS-IN Investment income 6,944.63 3,65k3.D0 7,7U0.04 - Budget~:d transfers-n from: Liquor fund SU,GG~3.00 50,444.00 51;,00:7.04 25,{}t?0.02 General fund - - - 25,flflfl,02 C7ther 2,175.6~J - - - ~ Subtc~tal 59,11+5.32 53,458.00 57,7{lC?.04 5t3,4QG,G4 CXF' ~ TRf~t`ISFi=~2S-C3UT t3tlzer Sve & Chc}s t~a7okn ro G1D City r~xtract Anoka Co dF~Bi~rta license Cityvie~.~ support Capital t3utlay praj 0402 Sutrtoat ~t-~~tv~~ itv ~utvo ~~-~1..~~ic~ - gOfD.t)D - - _ - 616.60 - - - 1,943.88 - 87,224.45 - 1 ~ ~ , 759.G0 - t37,224.45 500.40 114,219.38 - iz8,14s.1s} ~3,~~~.ac, (56,,~i19.34~ 50,4it4<(}4 FUt~C7 BALANCE: begiru~ing 172,7t}6.6Ct i44,5t3$.47 19,',656.47` 141.137.13 ondinc~ 14~i,598.4 7 197f65ti.47 141, i 37.13 191,1:7.' T 173 CITY OF COLUMBIA HEIGHTS MEETING OF: July 23. 2007 AGENDA SECTION: ORIGINATING DEPT: CITY MANAGER NO: - FINANCE APPROVAL ..._ ITEM: Resolution -Necessity to enter lease BY: WILLIAM ELRITE BY: purchase agreement w/EDA & request issuance of public facility lease revenue bonds (Liq. Store) DATE: 07/19/2007 NO: 1 On March 27, the EDA adopted an Intent to Bond resolution for the construction of two municipal liquor stores. The next two steps in this process are for the City to enter into a lease agreement with the EDA and for the EDA to sell lease revenue bonds to finance the project. Attached is the pre-sale report prepared by Mark Ruff of Ehlers & Associates, Inc. that details the timeline for entering into the lease agreement and bond sale. Also attached is a resolution declaring the City Council's intent to enter into a lease agreement with the EDA. The Bonds are not general obligations or indebtedness of the EDA, but are special obligations payable solely from rental. payments made by the City under the Lease. The payments under the Lease are such that they are sufficient to pay the principal and interest on the Bonds as they become due. Liquor store revenues previously used for rent will pay the major portion of the Lease. The Lease will contain an annual non-appropriation clause, under which the City has the right to terminate the Lease at the end of any fiscal year if it does not appropriate moneys sufficient to make required payments for the next fiscal year under the Lease. However, the City will represent in the Lease that it presently intends to continue the Lease for its entire term. During the term of the Lease, title to the liquor store land will be in the City's name, with the buildings in the EDA's name. The bond sale would take place on August 27, 2007. This would require a special EDA meeting on the 27th, prior to the regular City Council meeting. At that meeting, the EDA will approve the lease of the liquor stores to the City and the sale of the bonds. At the following City Council meeting, the City will approve the lease of the liquor stores. RECOMMENDED MOTION: Move ±o :naive the reading of resolution 2007-132 there being ample copies available. RECOMMENDED MOTION: Move to adopt resolution 2007-132 being a Resolution determining the necessity to enter into a lease purchase agreement with the Columbia Heights Economic Development Authority and requesting the issuance of public facility lease revenue bonds thereof (Municipal Liquor Stores project}. "Pre-Sale Report 7 Attachments: 23,24 07 liquor stores.pdf' COUNCIL ACTION: 174 RESOLUTION N0.2007-132 RESOLUTION DETERMINING THE NECESSITY TO ENTER INTO A LEASE PURCHASE AGREEMENT WITH THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY AND REQUESTING THE ISSUANCE OF PUBLIC FACILITY LEASE RE`v ~ivTUE BONDS T iiEREO ~iriiii~Til.iP r"si. LIQUOR S T ORES PRO.iEC T ) BE IT RESOLVED by the City Council of Columbia Heights, Anoka County, Minnesota (the "City") as follows: Section 1. Recitals. 1.01. It is in the best interests of the City and its residents that the City acquire, construct and equip two new municipal liquor stares to be Located within the City (the "Project"). 1.02. It is necessary and expedient to the sound financial management of the affairs of the City that the Project be financed through the issuance and sale by the Columbia Heights Economic Development Authority (the "Authority") of its approximately $5,040,000 Public Facility Lease Revenue Bonds, Series 2007 (the "Bonds"). 1.03. The issuance of the Bonds by the Authority is authorized under Minnesota Statutes, Chapter 469 and in connection with the issuance and sale of the Bonds, the City intends to enter into alease-purchase agreement with the Authority regarding the Project, pursuant to Minnesota Statutes, Section 465.71 (the "Lease"). 1.04. Pursuant to the Lease the City intends to lease the Project from the Authority and pay lease payments to the Authority in the amount necessary to pay debt service on the Bonds, subject to the City's right ofnon-appropriation in each fiscal year. Section 2. Authorization. 2.01. The City Council intends to enter into the Lease with the Authority and requests that the Authority issues and sells its Bonds to finance the Project. 2.02. The sale of the Bonds is expected to occur on August 27, 2007, and the City Council intends to approve the Lease on that date. 2.03. City staff and consultants are authorized and directed to assist the Authority in the issuance and sale of the Bonds and the preparation. of the Lease. Passed. this _ day of July, 2007 Offered by: Second: Roll Call: Mayor Gary L. Petersen Attest: Patricia Muscovitz CMC City Clerk 175 - ~ .v .` ~'a i . .~ ,_i ~ [[[ ( i ,i i • . ~.:i t3 t 1 f f fit` si .. '~ .. _rt i~ • ~ ~~ L 1 `~ + ~ } ~ +~ ~ ~.. '"~ r~ ~, Il ~~€ ~ )~. if tarpe~ To finance the construction ofatwo new municipal liquor stores (the "Project"),the City has determined to use the municipal lease financing method by which a Lease is entered into between the City's EDA as lessor anal the City itself as lessee (the "Lease"). The EDA issues the Bonds payable solely from rent payments to be paid by the City under the Lease. The City will retain title to the land and will enter into a ground lease with the EDA. ~~ripticar~: The Bonds are being issued pursuant to Minnesota Statutes, Chapter 469, to finance the Project in the amount of $4,500,000. The City will contribute $1,300,000 from. the liquor store fund to pay for costs of land acquisition for each store. Approximately $400,000 to $500,000 of project costs will be financed internally. Financing the Project requires a band issue in the amount of $5,040,000. The proposed finance plan consists of the sources and uses of funds attached to this Report. To achieve the highest bond rating possible and lowest interest rates, the financing includes a role of a trustee to hold construction funds and the reserve funds. The trustee fees will be approximately $2,000 per year. Also included will be a reserve account for the benefit of bond holders should there be a shortfall in lease payments and is described below. Bond Reserve Account: The EDA will covenant to establish and maintain a Reserve Account in an amount equal. to the lesser of (a} 10% of the proceeds of the Bonds; (b) 100% of the maximum annual debt service on the Bonds and any outstanding parity bonds; or (c} 125% of the average annual debt service on the > ~~> ,~°• _: +.',#,} Prepared by Ehlers ~ Associates, Fnc. 176 Bonds and any outstanding parity bonds. Upon issuance of the Bonds, an amount necessary to make the amount on deposit in the Reserve Account equal to the reserve requirement will. be deposited in the Reserve Account. The EDA may use tha invactrnant aarninnc ar~nrnnlata(1 in tha RPCPYR/P Orr~nnt fnr any nrnnar ,...., .,......,.,.,,.,.,.. ......,,,.,.~., ........,.,.,.,..,....-.... ,.,.. ...,., .... ...... ... ............... .... .....~ r.., p,... purpose. It is expected that the Reserve Account will pay for the last year of debt service We currently estimate the reserve requirement to be $402,750. drag: The City has an underlying "A1" rating by Moody's Investor Services. Because the Bonds are not general obligation bonds, they are expected to be rated by Moody's at an "AZ" or "A3" level. ~'errnl~!! Ftr Principal on the Bonds will be due on February 1 in the years 2010 through 2030. This schedule assumes no capitalized interest, interest only payment on August 1, 2008 and February 1, 2009 and 20 years of full payments thereafter. Bonds maturing February 1, 2018, and thereafter will be subject to prepayment at the discretion of the City on February 1, 2017. Furacl6rag ~csurc~~: The Bonds are not general obligations or indebtedness of the EDA, but are special obligations payable solely from rental payments made by the City under the Lease. The payments under the Lease are such that they are sufficient to pay the principal and interest on the Bonds as they become due. For a project of this type, a tax levy is typically appropriated on an annual basis by the City Council. for the payment of rental payments. However, it is the intent of the City to substitute the tax levy with liquor store revenues. The Lease will contain an almual non-appropriation clause under which the City has the right to terminate the Lease at the end of any fiscal year ifit does not appropriate moneys sufficient to make required payments for the next fiscal year under the Lease. However, the City will represent in the Lease that it presently intends to continue the Lease for its entire teen. During the term of the Lease, title to the liquor store land will be in the City's name and the buildings in the EDA's name. If the Lease should terminate prior to discharge of the Bonds, title to the facility shall revert to the EDA and the City shall cease to be entitled to occupy or otherwise possess the liquor stores. In an event of default under the Lease or termination of the Lease under the non- appropriation clause, the bondholders may exercise all of the rights of the EDA under the Lease, including the right to take possession of the liquor stores and. sell the liquor stores or any portion thereof at a public or private sale in accordance with applicable state laws. It is likely that a default would significantly reduce the Cit}_` s bond rating. So long as the City has not exercised its ability to non-appropriate under the terms of the Lease, the EDA's involvement is minimal. If the City exercises its rights to terminate the Lease because ofnon-appropriation, bondholders could require that -_ Prepared by Ehlers & Associates, Inc. 177 the EDA try to sell or release the facility. Di~esa~~EC~sa I~u: The first interest payment on the Bonds will be August 1, 2008, and semiannually thereafter on February 1 and August I, The projected debt service and. f"tow or funds are attached to this Report. art tt~l[f's~: The Bonds will be "qualified tax-exempt obligations", which will allow banks to buy the Bonds and result in slightly lower interest rates. ~rbitr~~: With increasing short-term investment rates, IRS rules regarding the amount of interest that the Ciiy may earn on bond proceeds is more of a concern. Because the City/EDA is issuing more than $5,000,000 this calendar year, the project must meet certain spend down requirements within two years to avoid the requirement to rebate or repay interest earned that is more than the interest rate on the bonds. The excess interest earnings are la~own as arbitrage. The City will also need to keep its reserve funds and debt service funds within IRS parameters to avoid penalties on carrying too high of a balance during the life of the issue. The trustee will require calculations on rebate each year or each five years.. ~h~dctl The City's bond counsel has determined that the Bonds are not subject to the City's process for issuance of debt under the City Charter, therefore no ordinance is required. EDA Review of Financing Plan and Call for Sale: Ehlers distributes Official Statement: Conference with Rating Agency: EDA Bond Sale: City Council approves Lease: Estimated Closing Date: Atfacra~nf: Sources and Uses of Funds Proposed Debt Service Schedule Bond Buyer Index Resolution authorizing Ehlers to proceed with Bond Sale July 24, 2007 August 19, 2007 Week of August 20, 2007 August 27, 2007 August 27, 2007 September 15, 2007 Prepa:-ed by Ehlers cgz Associates, lnc. 178 Ehlers Gontacts: Financial Advisors Bond Analysts Bond Sale Coordinator: Mark Ruff (651) 697-8505 Shelly Eldridge (651) 697-8504 Stacie Kvilvang (651) 697-8506 Diana Lockard (651) 697-8534 Debbie Holmes (651) 697-8536 Connie Kuck (651) 697-8527 The Official Statement for this financing will be mailed to the EDA and Council Members at their home address for review prior to the sale date. 179 Prepared by Ehlers ~ Associates, Inc. Resolution No. Member introduced the following resolution and moved its adoption: Resolution Providing for the Sale of $5,040,000 Public Facility Lease Revenue Bonds (Municipal Liquor Stores Project), Series 2007A A. WHEREAS, the City Coutlcil of the City of Columbia Heights, Mimiesota (the "City"), has heretofore determined that it is necessary and expedient for the Columbia Heights Economic Development Authority (the "EDA") to issue its $5,040,000 Public Facility Lease Revenue Bonds (Municipal Liquor Stores Project), Series 2007A (the "Bonds"), to finance the construction of a two new municipal liquor stores; and B. WHEREAS, the City has retained Ehlers & Associates, Inc., in Roseville, Minnesota ("Ehlers"), as its independent financial advisor for the Bonds; NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority of Columbia Heights, Minnesota, as follows: 1. Authorization; Findings. The EDA hereby authorizes Ehlers to solicit proposals for the sale of the Bonds. 2. Meetin ;Proposal Opening. The EDA Board shall meet at _ p.m. and the City Council shall meet at p.m. on August 27, 2007, for the purpose of considering proposals for and awarding the sale of the Bonds. 3. Official Statement. In connection with. said sale, the officers or employees of the City are hereby authorized to cooperate with Ehlers and participate in the preparation of an official statement for the Bonds and to execute and deliver it on behalf of the City upon its completion. The motion for the adoption of the foregoing resolution was duly seconded by Member and, after full discussion thereof and upon a vote being taken thereon, the following Members voted in favor thereof: and the following voted against the same: Whereupon said resolution was declared duly passed and adopted. Dated this 24th day of July, 2007. 180 Columbia Heights EDA/City of Columbia Heights, MN $5,040,000.00 Public Facilities Lease Revenue Bonds, Series 2007A (Municipal Liquor Stores Project) Table of Contents Report Sources & Uses ~ Debt Service Schedule 2 Net Debt Service Schedule q Proof of Reserve Fund Requirement 5 Ser 2007 EDA lease revenu I SINGLE PURPOSE ~ 7/11/2007 ~ 10:34 AM 181 Heights, MN ds, Series 2007A $5,040,000.00 $5,040,000.00 88,200 00 49 000 00 402,750 00 4,500,000 00 50 00 $5 040 000.00 I ~ __ -- - _ - -- __ _ _ - 182 Columbia Heights EDA/City of Columbia Heights, MN $5,040,000.00 Public Facilities Lease Revenue Bonds, Series 2007A (Municipal Liquor Stores Project) Debt Service Schedule Part 1 of 2 Date Principal Coupon Interest Total P+I Fiscal Total 09/15/2007 - - - - - 08/01 /2008 - - 227,056.97 227,056 .97 - 02/01/2009 - - 129,336.25 129,336 .25 356,393 .22 08/01 /2009 - - 129,336.25 129,336 .25 - 02/01/2010 140,000 .00 4.650% 129,336.25 269,336 .25 398,672 .50 .,._08/01/2010 ___„ _ __ _ _ _ _ _ _ _ 126,081.25 126,081 .25 - 02/01/2011 150,000 .00 4.700% 126,081.25 276,081 .25 402,162 .50 08/01 /2011 - - 122,556.25 122,556 .25 - 02/01/2012 155,000 .00 4.750% 122,556.25 277,556 .25 400,112. 50 08/01 /2012 - - 118,875.00 118,875 .00 - 02/01/2013 165,000 .00 4.800% 118,875.00 283,875 .00 402,750. 00 08!01/2013 ___ _ _____ _ - - 114,915.00 114,915 .00 - 02/01/2014 170,000 .00 4.850% 114,915.00 284,915 .00 399,830. 00 08/01 /2014 - - 110,792.50 110,792 .50 - 02/01/2015 180,000 .00 4.900% 110,792.50 290,792 .50 401,585. 00 08/01 /2015 - - 106,382.50 106,382 .50 - 02/01/2016 185,000 .00 4.950% 106,382.50 291,382 .50 397,765. 00 08/01 /2016 - __ _ ____ ___ ___ 101,803.75 _,,,__ 101,803. 75 - 02/01/2017 195,000 .00 5.000% 101,803.75 296,803. 75 398,607. 50 08/01 /2017 - - 96,928.75 96,928. 75 - 02/01/2018 205,000 .00 5.050% 96,928.75 301,928. 75 398,857. 50 08/01 /2018 - - 91,752.50 91,752. 50 - 02/01/2019 215,000 .00 5.100% 91,752.50 306,752. 50 398,505. 00 .08/01 /2019, _„ _„ _ _ _- __ _ _ - 86,270.00 86,270. 00 - 02/01/2020 230,000 .00 5.100% 86,270.00 316,270. 00 402,540. 00 08/01 /2020 - - 80,405.00 80,405. 00 - 02/01/2021 240,000 .00 5.150% 80,405.00 320,405. 00 400,810. 00 08/01 /2021 - - 74,225.00 74,225. 00 - 02/01/2022 250,000 .00 5.200% 74,225.00 324,225. 00 398,450. 00 08/01 /2022 - - _~ __~ 67,725.00 67,725. 00 ~ - 02/01/2023 265,000 .00 5.250% 67,725.00 332,725. 00 400,450. 00 08/01 /2023 - - 60,768.75 60,768. 75 - 02/01/2024 280,000 .00 5.250% 60,768.75 340,768. 75 401,537. 50 08/01 /2024 - - 53,418.75 53,418. 75 - 02/01/2025 295,000. 00 5.250% 53,418.75 348,418. 75 401,837. 50 08/01/2025 - _ ___ - ~ ~ 45,675.00 45,675. 00 _ - 02/Ol/2026 310,000. 00 5.300% 45,675.00 355,675. 00 401,350. 00 08/01 /2026 - - 37,460.00 37,460. 00 - 02/Ol/2027 325,000. 00 5.300% 37,460.00 362,460. 00 399,920. 00 08/01 /2027 - - 28,847.50 28,847. 50 - 02/01/2028 345,000. 00 5.300% 28,847.50 373,847. 50 402,695. 00 ,08/01 /2028 - - 19,705.00 19,705. 00 - 02/01/2029 360,000. 00 5.300% 19,705.00 379,705. 00 399,410. 00 08/01 /2029 - - 10,165.00 10,165. 00 - 02/Ol/2030 380,000. 00 5.350% 10,165.00 390,165. 00 400,330. 00 Total $5,040,000. 00 - $3,724,570.72 $8,764,570.72 - Ser 2007 E6A lease reve~u ~ SINGLE PURPGSE ~ 7/11/2007 ~ 10:34 AM 1$3 Columbia Heights EDA/City of Columbia Heights, MN $5,040,000.00 Public Facilities Lease Revenue Bonds, Series 2007A (Municipal Liquor Stores Project) Debt Service Schedule art 2 of 2 veld Statistics Band Year Dollars $71,434 00 Average Life 14 173 Years Average Coupon 5 2140027% Net Interest Cost (NIC) 5 3374734°I° True Interest Cost (TIC) 5 3791695% Bond Yield for Arbitrage Purposes 5 1932333% All Inclusive Cost (AIC} 5 4845630% IRS Form 8038 Net Interest Cost 5 2140027% Weighted Average Maturitv 14 173 Years Ser 2007 EDA tease revenu I SINGLE PURPOSE 1 7/11/2007 1 10:34 AM 1$4 Columbia Heights EDA/City of Columbia Heights, MN $5,040,000.00 Public Facilities Lease Revenue Bonds, Series 2007A (Municipal Liquor Stores Project) Net Debt Service Schedule Fiscal Date Principal Coupon Interest Total P+I DSR Net New D/S Total 09/15/2007 - - _ _ _ _ _ 02/01/2008 - - - - (7,876.69) (7,876.69 } (7,876.69} 08/01/2008 - - 227,056.97 227,056.97 (10,457.87) 216,599.10 - 02/01/2009 - - 129,336.25 129,336.25 (10,457.87) 118,878.38 335,477.48 08!01/2009 - - 129,336.25 129,336.25 (10,457.87) 118,878.38 - 02l01/2010 140,000.00 4.650% 129,336.25 269,336.25 10,457.87 258,878.38 377,756.76 08/01/2010 - - 126,081.25 126,081.25 (10,457.87) 115,623.38 - 02/01/2011 150,000.00 4.700% 126,081.25 276,081.25 (10,457.87) 265,623.38 381,246.76 08/01/2011 - - 122,556.25 122,556.25 (10,457.87) 112,098.38 - 02/O1/2012 155,000.00 4.750% 122,556.25 277,556.25 (10,457.87) 267,098.38 379,196.76 08/01/2012 - - 118,875.00 118,875.00 (10,457.87) 108,417.13 - 02/Ol/2013 165,000 00 4.800% 118,875.00 __ _ _283,875.00 {10,457 87)__ _ 273,417.13 381 834.26 08/01/2013 - - 114,915.00 114,915.00 (10,457.87) 104,457.13 - 02/01/2014 170,000.00 4.850% 114,915.00 284,915.00 (10,457.87) 274,457.13 378,914.26 08/01/2014 - - 110,792.50 110,792.50 (10,457.87) 100,334.63 - 02/01/2015 180,000.00 4.900% 110,792.50 290,792.50 (10,457.87) 280,334.63 380,669.26 08/01/2015 - - 106,382.50 106,382.50 (10,457.87} 95,924.63 - 02/01/2016 185,000.00 4.950% 106,382.50 291,382.50 (10,457.87} 280,924.63 376,849.26 08/01/2016 - - 101,803.75 101,803.75 (10,457.87) 91,345.88 - 02/01/2017 195,000.00 5.000% 101,803.75 296,803.75 (10,457.87) 286,345.88 377,691.76 08/01/2017 - - 96,928.75 96,928.75 (10,457.87) 86,470.88 - 02/01/2018 205,000.00 5.050% 96,928.75 301,928.75 (10,457.87) 291,470.88 377,941.76 08/01/2018 - - 91,752.50 91,752.50 (10,457.87) 81,294.63 - 02/01/2019 - -- -._.. TW.- - 215,000.00 - --- ----- -- 5.100% .... ----- -~._..---- 91,752.50 ----- --- - --....--- - 306,752.50 ---------- ---.._... _ 10,457.87 __ ---(- ~ - 296,294.63 ----._.._.____..__... ------- 377,589.26 - -- _- ----- 08/01/2019 - - 86,270.00 86,270.00 (10,457.87) 75,812.13 - 02/01/2020 230,000.00 5.100% 86,270.00 316,270.00 (10,457.87) 305,812.13 381,624.26 08/01/2020 - - 80,405.00 80,405.00 (10,457.87) 69,947.13 - 02/01/2021 240,000.00 5.150% 80,405.00 320,405.00 (10,457.87) 309,947.13 379,894.26 08/01/2021 - - 74,225.00 74,225.00 (10,457.87} 63,767.13 - 02/01/2022 250,000.00 5.200% _ ____ 74,225.00 324,225.00 (10,457 87) _ 313,767.13 377,534.26 08/01/2022 - - 67,725.00 67,725.00 {10,457.87) 57,267.13 - 02/01/2023 265,000.00 5.250% 67,725.00 332,725.00 (10,457.87) 322,267.13 379,534.26 08/01/2023 - - 60,768.75 60,768.75 (10,457.87) 50,310.88 - 02l01/2024 280,000.00 5.250% 60,768.75 340,768.75 (10,457.87) 330,310.88 380,621.76 08/01/2024 - - 53,418.75 53,418.75 {10,457.87} 42,960.88 - 02/01/2025 295,000.00 5.250% 53,418.75 348,418.75 (10,457.87} 337,960.88 380,921.76 08/01/2025 - - 45,675.00 45,675.00 (10,457.87) 35,217.13 - 02/01/2026 310,000.00 5.300% 45,675.00 355,675.00 (10,457.87) 345,217.13 380,434.26 08/01/2026 - - 37,460.00 37,460.00 (10,457.87) 27,002.13 - 02/01/2027 325,000.00 5.300% 37,460.00 362,460.00 (10,457.87) 352,002.13 379,004.26 08/01/2027 - - 28,847.50 28,847.50 (10,457.87) 18,389.63 - 02/01/2028, __ ______345,000.00,. --- _.___„_„ 5.300%.,__._ _.,____.,28,84750,_,__ -- .._, _373,847.50____ (10,457.87___ __ 363,389.63 381,779.26 08/01/2028 - - 19,705.00 19,705.00 (10,457.87} 9,247.13 - 02/01/2029 360,000.00 5.300% 19,705.00 379,705.00 (10,457.87) 369,247.13 378,494.26 08/01/2029 - - 10,165.00 10,165.00 (10,457.87} (292.87} - 02/01/2030 380,000.00 5.350% 10,165.00 390,165.00 (413,207.87) (23,042.87) (23,335.74} Total $5,040,000.00 - $3,724,570.72 $8,764,570.72 (870,772.97} $7,893,797.75 - Ser 2007 EDR lease revenu ~ SINGLE PURPOSE ~ 7/1 Y/2007 ~ 10:34 AM f ~~ 185 Columbia H eights EDA/Clty of Columbia Heights, MN $5,040,000.00 Public Facilities Lease Revenue Bonds, Series 2007A (Municipal Liquor Stores Project) Proof of Reserve Fund Requirement Date Principal Interest TOTAL P+l 02/01 /2008 - - - 02/01 /2009 - 356,393.22 356,393.22 02/01 /2010 140,000.00 258,672.50 398,672.50 02/01 /2011 150,000.00 252,162.50 402,162.50 02/01 /2012 155,000.00 245,112.50 400,112.50 _02/01/2013 _ _ 165,000.00_ ___ _ 237 750.00 402,750.00 02/01/2014 170,000.00 229,830.00 399,830.00 02!01 /2015 180,000.00 221,585.00 401,585.00 02/01 /2016 185,000.00 212,765.00 397,765.00 02/01 /2017 195,000.00 203,607.50 398,607.50 02/01 /2018 205,000.00 193,857.50 398,857.50 02/01/2019_ _ ___ ___ _215,000.00 183,505.00 398,505.00 02/01 /2020 230,000.00 172,540.00 402, 540.00 02/01/2021 240,000.00 160,810.00 400,810.00 02/01 /2022 250,000.00 148,450.00 398,450.00 02/01 /2023 265,000.00 135,450.00 400,450.00 02/01 /2024 280,000.00 121,537.50 401,537.50 02/01/2025 __________ _„__________ 295,000.00 ~,__ ~^___„_,,,___._.106,837_50 401,837.50 02/01 /2026 310,000.00 91,350.00 401,350.00 02/01 /2027 325,000.00 74,920.00 399,920.00 02/01 /2028 345,000.00 57,695.00 402,695.00 02/01 /2029 360,000.00 39,410.00 399,410.00 02/01 /2030 380,000.00 20,330.00 400,330.00 Total $5,040,000.00 $3,724,670.72 $8,764,570.72 PROOF OF RESERVE FUND AGGREGATE ISSUE PRICE Total Par 5,040,000.00 10 % of Aggregate issue Price 504 000.00 MAXIMUM PERIODIC DEBT SERVICE Omit First Period? Yes 100 % of the Maximum Periodic Debt Service 402,750.00 AVERAGE PERIODIC DEBT SERVICE Total P+I 8,764,570.72 Bond Years (Delivery Date) 22.38 125 % of the Average Periodic Debt Service 489 580.04 RESERVE REQUIREMENT Computed Requirement 402,750.00 Proofs Requirement 402 750.00 Ser 2007 EDA lease revenu i SINGLE PURPOSE i 7/11/2007 i 1034 AM 186 CITY COUNCIL LETTER Meeting of: July 23, 2007 AGENDA SECTION: rrn. ORIGINATING DEPT.: CITY MANAGER ...,. BLDG INSPECTION APPROVAL ITEM: FIRST READING OF ORDINANCE BY: SHELLEY HANSON BY: #1528 ADOPTING MN STATE BLDG CODE NO: DATE: July 17, 2007 The 2007 MN State Building Code has been adopted and is effective as of July 10, 2007. In 2003 the City adopted Ordinance #1456 which formally adopted the 2003 Building Code and it was self- perpetuating, which meant the City would. not have to re-adopt the code each time it is updated. Included in that adoption were two optional provisions: Section 1306, dealing with. special. fire protection systems (fire sprinklers) and Appendix K to give the city some control over grading and excavating projects. Under the new 2007 MSBC 1306 Rule there are no longer optional provisions that was the case when adopted last. In addition, Appendix K will now change to Appendix J. For these reasons, we need to re-adopt the MN State Building Code, which will again be self-perpetuating. Hopefully, we will not have to do this again in the next code cycle unless more amendments are made to the options included. Attached is Ordinance #1528, amending the City Code adopting the Minnesota State Building Code. This ordinance will amend Ordinance #1456 of the City Code and provides for the application, administration and enforcement of the MN State Building Code by regulating the erection, construction, enlargement, alteration, repair, moving, removal, demolition, conversion, occupancy, equipment, use, height, area, and maintenance of all buildings and/or structures in this municipality; Provides far the issuance of permits and collection. of fees thereof; provides penalties for violation thereof; repeals all ordinances and parts of ordinances that conflict therewith. This ordinance shall perpetually include the most current edition of the MN State Building Code with the exception of the optional appendix chapters. Optional appendix chapters shall not apply unless specifically adopted. RECOMMENDED MOTION: Move to waive the reading of Ordinance #1528, there being ample copies available to the public. MOTION: Move to establish the second reading of Ordinance #1528, being an Ordinance adopting the MN State Building Code, for Monday August 13th, 2007 in the Council Chambers, at approximately 7:00 pm COUNCIL ACTION: ~s7 ORDINANCE NO. #1528 RFTNl~' A N flI?TIiN A N!"'Ti A MTi NT1TN!"' llDT1TN A N!"7j' flt A6~ f'TTV !`llilTi' l1T.' "1(1l1G D G'T A TTN('' 1,V Lal, VmW ll \Lal\V•~. La1~mmLl\Lml\V VmW ml\Al\l..~L ]T14JVy O..mm m 4ivLmi Vm' 6iVVJy m4miLLmm ml\4J TO ADOPTING THE MN STATE BUILDING CODE The City of Columbia Heights does ordain: Article II: Construction. Codes, Section 6.201 of the Columbia Heights City Code, is hereby amended to read as follows: (A) Codes adopted by reference. The Minnesota State Building Code, as adopted by the Commissioner of Labor and Industry pursuant to Minnesota Statutes Chapter 168.59 to 16 8.75, including all of the amendments, rules and regulations established, adopted and published from time to time by the Minnesota Commissioner of Labor & Industry, through the Building Codes and Standards Unit is hereby adopted by reference with the exception of the optional chapters, unless specifically adopted in this Ordinance. The Minnesota State Building Code is hereby incorporated in this ordinance as if fully set out herein. (B) Application, Administration, and Enforcement. (1) The application, administration, and enforcement of the code shall be in accordance with Minnesota State Building Code. The code shall be enforced within the extraterritorial limits permitted by Minnesota Statutes, 168.62, subdivision 1, as it may be amended from time to time, when so established by this ordinance. (2) The code enforcement agency of the City of Columbia Heights is called the Protective Inspections Department. (3) This code shall be enforced by the Minnesota Certified Building Official designated by the City of Columbia Heights to administer the code (Minnesota Statute 168.65, Subdivision 1, as it may be amended from time to time). (C) Permits and Fees. (1) The issuance of permits and. the collection of fees shall be as authorized in Minnesota Statutes, 168.62, subdivision 1, as it may be amended from time to time. (2) Permit fees shall be assessed for work governed by this code in accordance with the fee schedule adopted by the City by Ordinance. In addition, a surcharge fee shall be collected on all permits issued for work governed by this code in accordance with Minnesota Statute 168.70, as it may be amended from time t0 tlme. (D) Violations and Penalties. A violation of the code is a misdemeanor (Minnesota Statutes 168.69, as it may be amended from time to time). ass (E} Building Code Optional Chapters. (1) The Minnesota State Building Code, established pursuant to Minnesota Statutes 16B.59 to 16B.75 allows the Municipality to adopt by reference and enforce certain optional chapters of the most current edition of the Minnesota State Building Code. (71 The fnlln~a~ina nr~tinnai nrnvicinnc irlentifie~ in the mnct enrrent erlitinn of the Mate Ruildinu r'nde are hereby adopted and incorporated as part of the building code for this municipality. (a) Chapter 1306 (b) Appendix J (F) Effective date of Ordinance. This Ordinance shall be in full force and effect September 12, 2007, after its passage. First reading: Second Reading: Date of Passage: Offered by: Seconded by: Roll Call: Mayor Gary L. Peterson Attest: Patricia Muscovitz CMC City Clerk 189 COLUMBIA HEIGHTS CITY COUNCIL LETTER Meeting of: July 23, 2007 AGENDA SECTION: Public Hearing ORIGINATING DEPARTMENT: CITY MANAGER'S NO: Community Development APPR0~IAL ITEM: 2nd Reading: Ordinance 1526, being an BY: Jeff Sargent, City Planner BY: ordinance adopting the permit fee schedule for DATE: July 17, 2007 temporary signs. BACKGROUND: On May 29, 2007, the City Council adopted Ordinance 1523, amending the City Code as it relates to temporary signage throughout the City. Ordinance 1523 established the requirement for a permit for the placement of any temporary sign. At this time, staff recommends adopting a permit fee of $20 for the temporary sign permits, to cover the cost of time it would take to process the permit request and enforce the newly created ordinance. RECOMMENDED MOTION: Move to waive the reading of Ordinance No. 1526, being ample copies available to the public. Move to adopt Ordinance No. 1526, being an ordinance adopting the permit fee schedule for temporary signs. Attachments: Dra t O~~dinance 1526 COUNCIL ACTION 190 DRAFT ORDINANCE 1526 BEING AN ORDINANCE ADOPTING THE PERMIT FEE SCHEDULE FOR TEMPORARY SIGNS AND FORMALLY ESTABLISHING A REFUND POLICY. Section 1. Permit Fees. The issuance of temporary sign permits and the collection of fees shall be as authorized by the Columbia Heights City Council. Therefore, fees for permits will be assessed in the amount of $20.00 per temporary sign permit. Section 2. Effective Date of Ordinance. This ordinance shall be in full force and effect from and after thirty (30) days after its passage. First Reading: July 9, 2007 Second Reading: Date of Passage: Offered by: Seconded by: Roll Call: Mayor Gary L. Peterson Patty Muscovitz, CMC City Clerk 191 CITY COUNCIL LETTER Meeting of July 23, 2007 AGENDA SECTION: Resolutions ORIGINATING DEPARTMENT: CITY Fire MANAGER NO: APPROVAL ITEM: Adopt Resolution For BY: Gary Gorman BY: Revocation DATE: July 13, 2007 DATE: NO: 2007-123 Revocation of the license to operate a rental unit within the City of Columbia Heights is requested against Delanza Elliot regarding rental property at 1 124-1 126 45th Avenue N.E. for failure to meet the requirements of the Residential Maintenance Codes. P~ECOMMENDED MOTION: Move to close the public hearing and to ~a/aive the reading of Resolution No.2007-123, there being ample copies available to the public. RECOMMENDED MOTION: Move to adopt Resolution No. 2007-123, Resolution of the City Council of the City of Columbia Heights approving revocation pursuant to City Code, Chapter SA, Article IV, Section SA.408(A) of the rental license held by Delanza Elliot regarding rental property at 1124-1126 45th Avenue N.E. COUNCIL ACTION: 192 RESOLUTION 2007-123 Resolution of the City Council for the City of Columbia Heights approving revocation pursuant to City Code, Chapter 5A, Article IV, Section SA.408(A} of that certain residential rental license held by Delanza Elliot (Hereinafter "License Holder"). Whereas, license holder is the Legal owner of the real property located at 1124-1126 45th Avenue N.E., Columbia Heights, Minnesota, Whereas, pursuant to City Code, Chapter SA, Article IV, Section SA.408(B), written notice setting forth the causes and reasons for the proposed Council action contained herein was given to the License Holder on July 9, 2007 of an public ]tearing to be held on July 23, 2007. 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 15, 2007, inspection office staff sent a letter requesting the owner of the property to renew the rental license for this property. The letter was mailed by regular mail to the owner at the address listed in the property records. 2. That on July 9, 2007, inspection office staff reviewed the property file and noted that the property remained unlicensed. A Statement of Cause was mailed by regular mail to the owner at the address listed in the property records. 3. That based upon said records of the Enforcement Office, the following conditions and violations of the City's Residential Maintenance Code were found to exist, to- Wlt: a. Failure to schedule a rental license inspection. 4. That all parties, including the License Holder and any occupants or tenants, have been given the appropriate notice of this hearing according to the provisions of the City Code, Chapter SA, Article III SA.306 and SA.303(A}. ORDER OF COUNCIL The rental license belonging to the License Holder described herein and identified by license number F8371 is hereby revoked; 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. 193 Passed this day of 2007 Offered bv: Second by: Roll Call: Mayor Gary L. Peterson Attest: Patricia Muscovitz, CMC City Clerk 194 CITY COUNCIL LETTER Meeting of July 23, 2007 AGENDA SECTION: Public ORIGINATING DEPARTMENT: CITY Hearings Fire MANAGF,R NO: APPROVAL ITEM: Adopt Resolution For BY: Gary Gorman BY: Abatement DATE: July 13, 2007 DATE: NO: 2007-1.1.5 Declaration of a nuisance and abatement of violations within the City of Columbia Heights is requested against Martin Brinkman regarding property at 4916 6~' Street N.E. for failure to meet the requirements of the Residential Maintenance Gode. RECOMMENDED MOTION: Move to close the public hearing and to waive the reading of Resolution No. 2007-115, there being azrple ecpies available to the public. RECOMMENDED MOTION: Move to adopt Resolution No. 2007-115, a resolution of the City Council of the City of Columbia Heights declaring the property at 4916 6`h Street N.E. a nuisance and approving the abatement of violations from the property pursuant to City Code section 8.206. COUNCIL ACTION: 195 RESOLUTION 2007-115 Resolution of the Citv Council for the City of Columbia Heights declaring the bronertv a nuisance and approving abatement of ordinance violations pursuant to Chapter 8, Article Il, of City Code, of the property owned. by Martin Brinkman (Hereinafter "Owner of Record"). Whereas, the owner of record is the legal owner of the real property located at 4916 6`h Street N.E. Columbia Heights, Minnesota. And whereas, pursuant to Columbia Heights Code, Chapter 8, Article II, Section 8.206, written notice setting forth the causes and reasons for the proposed council action contained herein was sent via certified mail to the owner of record on June 7, 2007 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 March 22, 2007 an inspection was conducted on the property listed above. Inspectors found one violation. A compliance order was sent via regular mail to the owner at the address. 2. That on April 26, 2007 inspectors reinspected the property listed above. Inspectors noted that one violation remained uncorrected. A compliance order and statement of cause was mailed via certified and regular mail to the owner listed in the property records. 3. That on May 2, 2007 an extension was granted to the owner. 4. That on June 7, 2007 inspectors reinspected the property listed above. Inspectors noted that one violation remained uncorrected. A compliance order and statement of cause was mailed via certified and regular mail to the owner listed in the property records. 5. That on July 13, 2007 inspectors reinspected the property and found that one violation remained uncorrected. 6. That based upon said records of the Fire Department, the following conditions and violations of City Codes(s) were found to exist, to wit: A. Shall remove scrub growth along south side of garage and behind shed That all parties, including the owner of record and any occupants or tenants, have been given. the appropriate notice of this hearing according to the provisions of the City Code Section 8.206(A) and 8.206(B). CONCLUSIONS OF COUNCIL That the property located. at 4916 6`h Street N.E. isrn violation of the provisions of the Columbia Heights City Code as set forth in the Notice of Abatement. 2. That all relevant parties and parties in interest have been duly served notice of this hearing, and any other hearings relevant to the abatement of violations on the property listed above. 196 3. That all applicable rights and periods of appeal as relating to the owner of record, occupant, or tenant, as the case may be, have expired, or such rights have been exercised and completed. ORDER OF COUNCIL 1. The property located at 4916 6`h Street N.E. constitutes a nuisance pursuant to City Code. 2. '1 hat a copy of this order shall be served upon all relevant parties and parties in interest. Passed this day of 2007 Offered by: Second by: Roll Call: Mayor Gary L. Peterson Attest: Patricia Muscovitz, CMC City Clerk 197 CITY COUNCIL LETTER Meeting of July 23, 2007 AGENDA SECTION: Public ORIGINATING DEPARTMENT: CITY Hearings Fire MANAGER NO: APPROVAL ITEM: Adopt Resolution For BY: Gary Gorman BY: Abatement DATE: July 13, 2007 DATE: NO: 2007-1.16 Declaration of a nuisance and abatement of violations within the City of Columbia Heights is requested against Thomas Carter regarding property at 1131 37t" Avenue N.E. for failure to meet the requirements of the Residential Maintenance Code. RECOMMENDED MOTION: Move to close the public hearing and to waive the reading cf Resolution No. 2007-116, there being ample copies available tc the public. RECOMMENDED MOTION: Move to adopt Resolution No. 2007-116, a resolution of the City Council of the City of Columbia Heights declaring the property at 1131 37t" Avenue N.E. a nuisance and approving the abatement of violations from the property pursuant to City Code section 8.206. COUNCIL ACTION: 198 RESOLUTION 2007-116 Resolution of the City Council for the Citv of Columbia Heiahts declaring the property a nuisance and approving abatement ofordinance violations pursuant to Chapter 8, Article IT, of City Code, of the property owned by Thomas Carter (Hereinafter "Owner of Record"). Whereas, the owner of record is the legal owner of the real property located at 1131 37t" Avenue N.E. Columbia Heights, Minnesota. And whereas, pursuant to Columbia Heights Code, Chapter 8, Article II, Section 8.206, written notice setting forth the causes and reasons for the proposed council action contained herein was sent via certified mail to the owner of record on June 26, 2007 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 September 1, 2006 an inspection was conducted on the property listed above. Inspectors found two violations. A compliance order was sent via regular mail to the owner at the address. 2. That on October 3, 2006 inspectors reinspected the property listed above. Inspectors noted that two violations remained uncorrected. A compliance order and statement of cause was mailed via certified and regular mail to the owner listed in the property records. 3. That on November 1, 2006 a reinspection was conducted on the property listed above. Inspectors found one violation remained uncorrected.. A seasonal extension was granted so that the owner could correct the remaining violation. A compliance order was sent via regular mail to the owner at the address. 4. That on June 26, 2007 inspectors reinspected the property listed above. Inspectors noted that one violation remained uncorrected. A compliance order and statement of cause was mailed via certified and regular mail to the owner listed in the property records. 5. That on July 11, 2007 inspectors reinspected the property and found that one violation remained uncorrected. 6. That based upon said records of the Fire Department, the following conditions and violations of City Codes(s) were found to exist, to wit: A. Shall seed/sod/landscape bare areas where vehicles were parked 7. That all parties, including the owner of record and any occupants or tenants, have been given the appropriate notice of this hearing according to the provisions of the City Code Section 8.206(A) and 8.206(B). CONCLUSIONS OF COUNCIL 1. That the property located at 1.131 37`'1 Avenue N.E. is in violation of the provisions of the Columbia I-Ieights City Code as set forth in the Notice of Abatement. 199 2. That all relevant parties and parties in interest have been duly served notice of this hearing, and. any other hearings relevant to the abatement of violations on the property listed above. 3. That all applicable rights and periods of appeal as relating to the owner of record, occupant, or tenant, as the case may be, have expired, or such rights have been exercised and completed. ORDER OF COUNCIL 1. The property located at 1131 37th Avenue N.E. constitutes a nuisance pursuant to City Code. 2. That a copy of this order shall be served upon all relevant parties and parties in interest. Passed this day of 2007 Offered by: Second by: Roll Call: Mayor Gary L. Peterson Attest: Patricia Muscovitz, CMC City Clerk Zoo CITY COUNCIL LETTER Meeting of July 23, 2007 AGENDA SECTION: Public ORIGINATING DEPARTMENT: CITY Hearings Fire MANAGED NO: APPROVAL ITEM: Adopt Resolution For BY: Gary Gorman BY: Abatement DATE: July 13, 2007 DATE: NO: 2007-117 Declaration of a nuisance and abatement of violations within the City of Columbia Heights is requested against Joyce Collins regarding property at 201 40`h Avenue N.E. for failure to meet the requirements of the Residential Maintenance Code. RECOMMENDED MOTION: Move to close the public hearing and to waive the reading of Resolution I~Io. 2007-117, there being ample copies available to the public. RECOMMENDED MOTION: Move to adopt Resolution No. 2007-11.7, a resolution of the City Council of the City of Columbia Heights declaring the property at 201 40t~' Avenue N.E. a nuisance and approving the abatement of violations from the properly pursuant to City Code section 8.206. COUNCIL ACTION: 2a~ RESOLUTION 2007-117 Resolution of the City Council fc~r the City of ("nhnrhia Neiuhtc declarin¢ the »rnnertv a nnicaneP ~ - ---_ ---------o---- ---------a ---- r--r--v -------------- and approving abatement of ordinance violations pursuant to Chapter 8, Article II, of City Code, of the property owned by Joyce Collins (Hereinafter "Owner of Record"). Whereas, the owner of record is the legal owner of the real property located at 201 40t~' Avenue N.E. Columbia Heights, Minnesota. And whereas, pursuant to Columbia Heights Code, Chapter 8, Article II, Section 8.206, written notice setting forth the causes and reasons for the proposed council action contained herein was sent via certified mail to the owner of record on June 7, 2007 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 That on Apri126, 2007 an inspection was conducted on the properly listed above. Inspectors found three violations. A compliance order was sent via regular mail to the owner at the address. 2. That on June 27, 2007 inspectors reinspected the property listed above. Inspectors noted that one violation remained. uncorrected. A compliance order and statement of cause was mailed via certified and regular mail to the owner listed in the property records. 3. That on July 13, 2007 inspectors reinspected the property and found that one violation remained uncorrected. 4. That based upon said records of the Fire Department, the following conditions and violations of City Codes(s) were found to exist, to wit: A. Shall repair the broken. garage window in the overhead door 5. That all parties, including the owner of record and any occupants or tenants, have been given the appropriate notice of this hearing according to the provisions of the City Code Section 8.206(A} and 8.206(B). CONCLUSIONS OF COUNCIL 1. That the property located at 201 40`h Avenue N.E. is in violation of the provisions of the Columbia Heights City Code as set forth in the Notice of Abatement. 2. That all relevant parties and parties in interest have been duly served notice of this hearing, and any other hearings relevant to the abatement of violations on the property listed above. 3. That all applicable rights and periods of appeal as relating to the owner of record, occupant, or tenant, as the case may be, have expired, or such rights have been exercised and completed. Zoe ORDER OF COUNCIL 1. The property located at 201 40`h Avenue N.E. constitutes a nuisance pursuant to City Code. 2. That a copy of this order shall be served upon all relevant parties and parties in interest. Passed this day of 2007 Offered by: Second by: Roll Call: Mayor Gary L. Peterson Attest: Patricia Muscovitz, CMC City Clerk 203 CITY COUNCIL LETTER Meeting of July 23, 2007 AGENDA SECTION: Public ORIGINATING DEPARTMENT: CITY Hearings Fire MANAGER NO: APPROVAL ITEM: Adopt Resolution For BY: Gary Gorman BY: Abatement DATE: July 13, 2007 DATE: NO: 2007-118 Declaration of a nuisance and abatement of violations within the City of Columbia Heights is requested against Floyd Lindahl regarding property at 3723 Johnson Street N.E. for failure to meet the requirements of the Residential Maintenance Code. RECOMMENDED MOTION: Move to close the public hearing and to waive the reading of Resolution No. 2007-118, there being alr~ple copies available to the public. RECOMMENDED MOTION: Move to adopt Resolution No. 2007-118, a resolution of the City Council of the City of CaIumbia Heights declaring the property at 3723 Johnson Street N.E. a nuisance and approving the abatement of violations from the property pursuant to City Code section 8.206. COUNCIL ACTION: zoo RESOLUTION 2007-118 Resoluti»n of the City C`,nuncil fer the City ~f C`~lumhia T-Teiahts declaring the nrn»erty a nuisance J _.. .._ _...__ _._J __ __ __~____ _.____.____O .___ j___t____J _. ___.________ and approving abatement of ordinance violations pursuant to Chapter 8, Article II, of City Cade, of the property owned by Floyd Lindahl (Hereinafter "Owner of Record"). Whereas, the owner of record is the legal owner of the real property located at 3723 Johnson Street N.E. Columbia Heights, Minnesota. And whereas, pursuant to Columbia Heights Code, Chapter 8, Article II, Section 8.206, written notice setting forth the causes and reasons for the proposed council action contained herein was sent via certified mail to the owner of record on June 25, 2007 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 That on May 16, 2007 an inspection was conducted on the property listed. above. Inspectors found one violation. A compliance order was sent via regular mail to the owner at the address. 2. That on June 25, 2007 inspectors reinspected the property listed above. Inspectors noted that one violation remained. uncorrected. A compliance order and statement of cause was mailed via certified and regular mail to the owner listed in the property records. 3. That on July 18, 2007 inspectors reinspected the property and found that one violation remained uncorrected. 4. That based upon said records ofthe Fire Department, the following conditions and violations of City Codes(s) were found to exist, to wit: A. Sha11 repair the flagstone wall along the driveway that is deteriorating 5. That all parties, Inc lading the owner of record and any occupants or tenants, have been given the appropriate notice of this hearing according to the provisions of the City Code Section 8.206(A} and 8.206{B}. CONCLUSIONS OF COUNCIL That the property located at 3723 Johnson Street N.E. is in violation of the provisions of the Columbia Heights City Cade as set forth in the Notice of Abatement. 2. That all relevant parties and parties in interest have been duly served notice of this hearing, and any other hearings relevant to the abatement of violations on the property listed above. 3. That all. applicable rights and. periods of appeal as relating to the owner of record, occupant, or tenant, as the case may be, have expired, or such rights have been exercised and completed. 205 ORDER OF COUNCIL I. The property Located at 3723 Johnson Street N.E. constitutes a nuisance pursuant to City Cade. 2. That a copy of this order shall be served upon all relevant parties and parties in interest. Passed. this day of 2007 Offered by: Second by: Roll Call: Mayor Gary L. Peterson Attest: Patricia Muscovitz, CMC City Clerk 2a6 CITY COUNCIL LETTER Meeting of July 23, 2007 AGENDA SECTION: Public ORIGINATING DEPARTMENT: CITY Hearings Fire MANAGER NO: APPROVAL ITEM: Adopt Resolution For BY: Gary Gorman BY: Abatement DATE: July 13, 2007 DATE: NO: 2007-119 Declaration of a nuisance and abatement of violations within the City of Columbia Heights is requested against Ronald Vogel regarding property at 3828 Jackson Street N.E. for failure to meet the requirements of the Residential Maintenance Code. RECOMMENDED MOTION: Move to close the public hearing and to waive the reading of Resolution No. 2007-119, there being ample copies available to the public. RECOMMENDED MOTION: Move to adopt Resolution No. 2007-119, a resolution of the City Council of the City of Columbia Heights declaring the property at 3828 Jackson Street N.E. a nuisance and approving the abatement of violations from the property pursuant to City Code section 8.206. COUNCIL ACTION: Zoe RESOLUTION 2007-119 Resolution cif the Citv Council for the Citv of Columbia Heights declaring the bropertv a nuisance and approving abatement of ordinance violations pursuant to Chapter 8, Article I1, of City Code, of the property owned by Ronald Vogel (Hereinafter "Owner of Record"}. Whereas, the owner of record is the legal owner of the real property located at 3828 Jackson Street N.E. Columbia Heights, Minnesota. And whereas, pursuant to Columbia Heights Code, Chapter 8, Article II, Section 8.206, written notice setting forth the causes and reasons for the proposed council action contained herein was sent via certified mail to the owner of record on June 1, 2007 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 October 3, 2006 an inspection was conducted on the property listed above. Inspectors found two violations. A compliance order was sent via regular mail to the owner at the address. 2. That on November 6, 2006 inspectors reinspected the property listed above. Inspectors noted that two violations remained uncorrected. A compliance order and statement of cause was mailed via certified and regular mail to the owner listed. in the property records. 3. That on November 20, 2006 inspectors reinspected the property listed above. Inspectors noted that two violations remained uncorrected. That on November 27, 2006 the City of Columbia Heights City Council approved abatement for these items. That on December 8, 2006 the Fire Department granted a seasonal extension for the two items. 4. That on June I, 2006 inspectors reinspected the property listed above. Inspectors noted that two violations remained uncorrected. A compliance order and statement of cause was mailed via certified and regular mail to the owner listed in the property records. 5. That on July 2, 2007 inspectors reinspected the property and found. that two violations remained uncorrected. 6. That based upon said records of the Fire Department, the following conditions and violations of City Codes(s) were found to exist, to wit: A. Shall remove ail areas of scrub growth along alley B. Scrape and paint overhead garage door. 7. That all parties, including the owner of record and any occupants or tenants, have been given the appropriate notice of this hearing according to the provisions of the City Code Section 8.206(A} and 8.206(B}. CONCLUSIONS OF COUNCIL 1. That the property located at 3828 Jackson Street N.E. is in violation of the provisions of the Columbia Heights City Code as set forth in the Notice of Abatement. 208 2. That all relevant parties and parties in interest have been duly served notice of this hearing, and anv other hearings relevant to the abatement of violations on the nronertv listed above. d 3. That all applicable rights and periods of appeal as relating to the owner of record, occupant, or tenant, as the case may be, have expired, or such rights Have been exercised and completed. ORDER OF COUNCIL The property located at 3828 Jackson Street N.E. constitutes a nuisance pursuant to City Code. 2. That a copy of this order shall be served upon. all relevant parties and parties in interest. Passed this day of 2007 Offered by: Second by: Roil Call: Mayor Gary L. Peterson Attest: Patricia Muscovitz, CMC City Clerk 209 CITY COUNCIL LETTER Meeting of July 23, 2007 AGENDA SECTION: Public ORIGINATING DEPARTMENT: CITY Hearings Fare MANAGER NO: APPROVAL ITEM: Adopt Resolution For BY: Gary Gorman BY: Abatement DATE: July 13, 2007 DATE: NO: 2007-120 Declaration of a nuisance and abatement of violations within the City of Columbia Heights is requested against Indred Alexander regarding property at 4532-4534 Fillmore Street N.E. for failure to meet the requirements of the Residential Maintenance Code. RECOMMENDED MOTION: Move to close the pu'olic hearing and to waive tl~e reading of Resolution No. 2007-120, there being ample copies available to the public. RECOMMENDED MOTION: Move to adopt Resolution No. 2007-120, a resolution of the City Council of the City of Columbia Heights declaring the property at 4532- 4534 Filllnore Street N.E. a nuisance anal approving the abatement of violations from the property pursuant to City Code section 8.206. COUNCIL ACTION: Zia RESOLUTION 2007-120 RPCnh~tinn of the City f`rrrnmril fnr the C~'ity of (l'nhnnhia NPiahtc ~-1Prlarina the nrnnPrty a miicanrP ---~------~-- Y- ---- ...._~ ~..~---_. _~_ _.._ ..._~ .._ ...,_~__..,... --_.b...., ___.»....a ._.., r,..,t.__.~ .. _..........__ and approving abatement of ordinance violations pursuant to Chapter 8, Article II, of City Code, of the property owned by Indred Alexander (Hereinafter "Owner of Record"). Whereas, the owner of record is the legal owner of the real property located at 4532-4534 Fillmore Street N.E. Columbia Heights, Minnesota. And whereas, pursuant to Columbia Heights Code, Chapter 8, Article II, Section 8.206, written notice setting forth the causes and reasons for the proposed council action contained herein was sent via certified mail to the owner of record on July 5, 2007 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 28, 2007 an inspection was conducted on the property listed above. Inspectors found one violation.. A compliance order was sent via regular mail to the owner at the address. 2. That on July 5, 2007 inspectors re-inspected the property listed above. Inspectors noted that one violation remained uncorrected. A compliance order and statement of cause was mailed via certified and regular mail to the owner listed in the property records. 3. That on July 13, 2007 inspectors reinspected the property and found that one violation remained uncorrected. 4. That based upon. said records of the Fire Department, the following conditions and violations of City Codes(s) were found to exist, to wit: A. Shall remove the graffiti from the rear of the building 5, That al l parties, including the owner of record and any occupants or tenants, have been given the appropriate notice of this hearing according to the provisions of the City Code Section 8.206(A) and 8.206(B). CONCLUSIONS OF COUNCIL 1. That the property located at 4532-4534 Fillmore Street N.E. is in violation of the provisions of the Columbia Heights City Code as set forth in the Notice of Abatement. 2. That all relevant parties and parties in interest have been duly served notice of this hearing, and any other hearings relevant to the abatement of violations on the property listed above. 3. That all applicable rights and periods of appeal as relating to the owner of record, occupant, or tenant, as the case may be, have expired, or such rights have been. exercised and completed. 211 ORDER OF COUNCIL 1. The nr~nertv located at 4532-4534 Fillmore Street N.E. constitutes a nuisance pursuant to ., - City Code. 2. That a copy of this order shall be served upon aii relevant parties and parties in interest. Passed this day of 2007 Offered by: Second by: Roll Call: Mayor Gary L. Peterson Attest: Patricia Muscovitz, CMC City Clerk 212 CITY COUNCIL LETTER Meeting of July 23, 2007 AGENDA SECTION: Resolutions ORIGINATING DEPARTMENT: CITY Fire MANAGER NO: APPROVAL ITEM: Adopt Resolution For BY: Gary Gorman BY: Revocation DATE: July 13, 2007 DATE: NO: 2007-124 Revocation of the license to operate a rental unit within the City of Columbia Heights is requested against Ed Fitzpatrick regarding rental property at 4514-4516 Filllnore Street N.E. for failure to meet the requirements of the Residential Maintenance Codes. RECOMMENDED 1`.4OTION: Move to close the public hearing and to waive the reading of Resolution No.2007-124, there being ample copies available to the public. RECOMMENDED MOTION: Move to adopt Resolution No. 2007-124, Resolution of the City Council of the City of Columbia Heights approving revocation pursuant to City Code, Chapter SA, Article IV, Section SA.408(A} of the rental license held by Ed Fitzpatrick regarding rental property at 4514-4516 Fillmore Street N.E. COUNCIL ACTION: 213 RESOLUTION 2007-124 Recnlntinn of the City C`nnnril fnr the City of C'nlnmhia Neiahta a»nrnvinu revncatinn -------•---°- -- ---- --v _~°----- _-_ ---- --v -- ------------ ----o---~ --rr--~---a --~--------- pursuant toCity Code, Chapter SA, Article IV, Section SA.408(A) of that certain residential rental license held by Ed Fitzpatrick (Hereinafter "License Holder"}. Whereas, license holder is the legal owner of the real property located. at 4514-4516 Fillmore Street N.E., Columbia Heights, Minnesota, Whereas, pursuant to City Code, Chapter SA, Article 1V, Section SA.408(B), written notice setting forth the causes and reasons for the proposed Council action contained herein was given to the License Holder on July 9, 2007 of an public hearing to be held on July 23, 2007. 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 15, 2007, inspection office staff sent a letter requesting the owner of the property to renew the rental license for this property. The letter was mailed by regular mail to the owner at the address listed in the property records. 2. That on July 9, 2007, inspection office staff reviewed the property file and noted that the property remained unlicensed. A Statement of Cause was mailed by regular mail to the owner at the address listed in the property records. 3. That based upon said records of the Enforcement Office, the following conditions and violations of the City's Residential Maintenance Code were found to exist, to- Wlt: a. Failure to submit a rental license application. b. Failure to schedule a rental license inspection. 4. That all parties, including the License Holder and any occupants or tenants, have been given the appropriate notice of this hearing according to the provisions of the City Code, Chapter SA, Article III SA.306 and SA.303(A). ORDER OF COUNCIL 1. The rental license belonging to the License Holder described herein and identified by license number F7$43 is hereby revoked; 2. The City will post for tl~e 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. 214 Passed this day of 2007 Offered by: Second by: Roll Call: Mayor Gary L. Peterson Attest: Patricia Muscovitz, CMC City Clerk 215 CITY COUNCIL LETTER Meeting of July 23, 2007 AGENDA SECTION: Resolutions ORIGINATING DEPARTMENT: CITY Fire MANAGER NO: APPROVAL ITEM: Adopt Resolution For BY: Gary Gorman BY: Revocation DATE: July 13, 2007 DATE: NO: 2007-125 Revocation of the license to operate a rental unit within the City of Columbia Heights is requested against Enes Hegic regarding rental property at 4525 Chatham Road N.E. for failure to meet the requirements of the Residential Maintenance Codes. RECOMMENDED Pv1OTION: Move to close the public hearing and to v~aive the reading of Resolution No.2007-125, there being ample copies available to the public. RECOMMENDED MOTION: Move to adopt Resolution No. 2007-125, Resolution of the City Council of the City of Columbia Heights approving revocation pursuant to City Code, Chapter SA, Article IV, Section SA.408(A) of the rental license held by Enes Hegic regarding rental properly at 4525 Chatham. Road. N.E. COUNCIL ACTION: 216 RESOLUTION 2007-125 Re~nhitinn of the City C nnncil fnr the City ~f C~lnmhia T-TPiuhtc annrwin~ revccatirn~ _____-------- -- --- --~ --------- --- ---- --~ -- ----------- ----o---- --rr-- ~---o -- ~ --------- pursuant to City Code, Chapter SA, Article IV, Section SA.408(A) of that certain residential rental license held by Enes Hegic (Hereinafter "License Holder"). Whereas, license holder is the legal owner of the real property located at 4525 Chatham Road N.E., Columbia Heights, Minnesota, Whereas, pursuant to City Code, Chapter 5A, Article IV, Section SA.408(B), written notice setting forth the causes and reasons for the proposed Council action contained herein was given to the License Holder on July 6, 2007 of an public hearing to be held on July 23, 2007. 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 June 14, 2007, inspection office staff sent a letter requesting the new owner of the property to license the rental property. The letter was mailed by regular mail to the owner at the address listed in the property records. 2. That on July 6, 2007, inspection office staff reviewed the property file and noted that the property remained unlicensed. A Statement of Cause was mailed. by regular mail to the owner at the address listed in the property records. 3. That based upon said records of the Enforcement Office, the following conditions and violations of the City's Residential Maintenance Code were found to exist, to- wit: a. Failure to submit a rental license application. b. Failure to schedule a rental license inspection. 4. That all. parties, including the License Holder and any occupants or tenants, have been given the appropriate notice of this hearing according to the provisions of the City Code, Chapter SA, Article III SA.306 and SA.303(A). ORDER OF COUNCIL 1. The rental license belonging to the License Holder described herein and identified by license number U4525 is hereby revoked; 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. 217 Passed this day of 2007 Offered by: Second by: Roll Call: Mayor Gary L. Peterson Attest: Patricia Muscovitz, CMC City Clerk 218 CITY COUNCIL LETTER Meeting of July 23, 2007 AGENDA SECTION: Resolutions ORIGINATING DEPARTMENT: CITY Fire MANAGER NO: APPRO`/AL ITEM: Adopt Resolution For BY: Gary Gorman BY: Revocation DATE: July 13, 2007 DATE: NO: 2007-126 Revocation of the license to operate a rental unit within the City of Columbia Heights is requested against Rochelle McCain regarding rental property at 4721 University Avenue N.E. for failure to meet the requirements of the Residential Maintenance Codes. RECOMi~IENDED Pv1OTiON: Move to close tl'ie public hearing and to waive the reading of Resolution No.2007-126, there being ample copies available to the public. RECOMMENDED MOTION: Move to adopt Resolution No. 2007-126, Resolution of the City Council of the City of Columbia Heights approving revocation pursuant to City Code, Chapter SA, Article IV, Seetio~n SA.408(A) of the rental license held by Rochelle McCain regarding rental property at 4721 University Avenue N.E. CoUNCII_, ACTION: 219 RESOLUTION 2007-126 Reselutic~n cif the City Council for the City of Columbia Heights annrovin~ revocation _. _. _ ._ _ _ _... _ .. ..... _ _ . J - / V 1 f v pursuant to City Code, Chapter SA, Article IV, Section SA.408(A) of that certain residential rental license held. by Rochelle McCain {Hereinafter "License Holder"). Whereas, license holder is the legal owner of the real property located at 4721 University Avenue N.E., Columbia Heights, Minnesota, Whereas, pursuant to City Code, Chapter 5A, Article IV, Section SA.408(B), written notice setting forth the causes and reasons for the proposed Council action contained herein was given to the License Holder on July 3, 2007 of an public hearing to be held on July 23, 2007. 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 15, 2007, inspection office staff sent a Letter requesting the owner of the property to renew the rental license for this property. The letter was mailed by regular mail to the owner at the address listed in the property records. 2. That on July 9, 2007, inspection office staff reviewed the property file and noted that the property remained unlicensed. A Statement of Cause was mailed by regular mail to the owner at the address listed in the property records. 3. That based upon said records of the Enforcement Office, the following conditions and violations of the City's Residential Maintenance Cade were found to exist, to- wit: a. Failure to submit a rental license application. b. Failure to schedule a rental license inspection. 4. That all parties, including the License Holder and any occupants or tenants, have been given the appropriate notice of this hearing according to the provisions of the City Code, Chapter SA, Article III SA.306 and SA.303(A}. ORDER OF COUNCIL The rental license belonging to the License Holder described herein and identified by license number F7831 is hereby revoked; 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. Ali tenants shall remove themselves from the premises within 60 days from the first day of pasting of this Order revoking the license as held by License Holder. 220 Passed this day of 2007 Offered by: Second by: Roll Cali: Mayor Gary L. Peterson Attest: Patricia Muscovitz, CMC City Clerk 221 CITY COUNCIL LETTER Meeting of July 23, 2007 AGENDA SECTION: Resolutions ORIGINATING DEPARTMENT: CITY Fire MANACIER NO: APPROVAL ITEM: Adopt Resolution For BY: Gary Gorman BY: Revocation DATE: July 13, 2007 DATE: NO: 2007-127 Revocation of the license to operate a rental unit within the City of Columbia Heights is requested against Michelle Parson regarding rental property at 4226 4th Street N.E. for failure to meet the requirements of the Residential Maintenance Codes. RECOI`~TMENDED MOTION: Move to close the public heari,~,g and to waive the reading of Resolution No.2007-127, there being ample copies available to the public. RECOMMENDED MOTION: Move to adopt Resolution No. 2007-127, Resolution of the City Council of the City of Columbia Heights approving revocation pursuant to City Code, Chapter SA, Article IV, Section SA.408(A) of the rental license held by Michelle Parson regarding rental property at 4226 4th Street N.E. COUNCIL ACTION: 222 RESOLUTION 2007-127 Resolution of the City Council for the Citv of Columbia Heights abbrovin~ revocation pursuant to City Code, Chapter SA, Article 1V, Section SA.40$(A} of that certain residential rental license held by Michelle Parson (Hereinafter "License Holder"). Whereas, license holder is the legal owner of the real property located at 4226 4th Street N.E., Columbia Heights, Minnesota, Whereas, pursuant to City Code, Chapter SA, Article IV, Section ~A.408(B}, written notice setting forth the causes and reasons for the proposed Council action contained herein was given to the License Holder on June 26, 2007 of an public hearing to be held on July 23, 2007. 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 24, 2007, inspectors for the City of Columbia Heights, inspected the property described above and noted two violations. A compliance letter listing the violations was mailed by regular mail. to the owner at the address listed on the Rental Housing License Application. 2. That on June 26, 2007, inspectors for the City of Columbia Heights, reinspected the property and noted one violation remained uncorrected. A statement of cause was mailed via regular mail to the owner at the address listed on the rental housing license application. 3. That on July 11, 2007, inspectors for the City of Columbia Heights, performed a final inspection at the property and noted one violation remained uncorrected. A statement of cause was mailed via regular mail to the owner at the address listed on the rental housing license application. 4. That based upon. said records of the Enforcement Office, the following conditions and violations of the City's Residential Maintenance Code were found to exist, to- wit: a. Shall sod, seed, landscape bare areas in back 5. That all parties, including the License Holder and any occupants or tenants, have been given the appropriate notice of this hearing according to the provisions of the City Code, Chapter SA, Article III SA.306 and SA.303(A}. ORDER OF COUNCIL 1. The rental license belonging to the License Holder described herein and identified by license number F8339 is hereby revoked. 2. The City will post for the purpose of preventing occupancy a copy of this order vn the buildings covered by the license held by License Holder. 223 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 2007 Offered by: Second by: Roll Call: Mayor Gary L. Peterson Attest: Patricia Muscovitz, CMC City Clerk 224 CITY COUNCIL LETTER Meeting of July 23, 2007 AGENDA SECTION: Resolutions ORIGINATING DEPARTMENT: CITY Fire MANAGF,R. NO: APPROVAL ITEM: Adopt Resolution For BY: Gary Gorman BY: Revocation DATE: July 13, 2007 DATE: NO: 2007-128 Revocation of the license to operate a rental unit within the City of Columbia Heights is requested against Catalina Peralta regarding rental property at 4550 Madison Street N,E. for failure to meet the requirements of the Residential Maintenance Codes. RECOMMENDED MOTION: Movc to close the public hearing and to waive the reading of Resolution No.2007-128, there being ample copies available to the public. RECOMMENDED MOTION: Move to adopt Resolution No. 2007-I28, Resolution. of the City Council of the City of Columbia Heights approving revocation pursuant to City Code, Chapter SA, Article IV, Section SA.408(A) of the rental license held by Catalina Peralta regarding rental property at 4550 Madison Street N.E. COUNCIL ACTION: 225 RESOLUTION 2007-128 Resolution of the City Council for the City of Columbia Heights annroving revocation. pursuant to City Code, Chapter SA, Article 1 V, Section SA.408(A} of that certain. residential rental license held by Catalina Peralta (Hereinafter "License Holder"). Whereas, license holder is the legal owner of the real property located at 4550 Madison Street N.E., Columbia Heights, Minnesota, Whereas, pursuant to City Code, Chapter SA, Article IV, Section ~A.408(B}, written notice setting forth the causes and reasons for the proposed Council action contained herein was given to the License Holder on June 21, 2007 of an public hearing to be held on July 23, 2007. 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 I . That on May 14, 2007, inspectors for the City of Columbia Heights, inspected the property described above and noted ten. violations. A compliance letter listing the violations was mailed by regular mail to the owner at the address listed on the Rental Housing License Application. 2. That on June 21, 2007, inspectors for the City of Columbia Heights, reinspected the property and noted six violations remained uncorrected. A statement of cause was mailed via regular mail to the owner at the address listed on the rental housing license application. 3. That on July 16, 2007, inspectors for the City of Columbia Heights, performed a final inspection at the property and noted two violations remained uncorrected. A statement of cause was mailed via regular mail to the owner at the address listed on the rental housing license application. 4. That based upon said records of the Enforcement Off ce, the following conditions and violations of the City's Residential Maintenance Code were found to exist, to- wn: a. Shall remove all/any storage from all common area stairwells b. Unit #4 -Shall install a door knob on the south bedroom door 5. That alI parties, including the License Holder and any occupants or tenants, have been given the appropriate notice of this hearing according to the provisions of the City Code, Chapter SA, Article III SA.306 and SA.303(A}. ORI3ER OF COUNCIL 226 The rental license belonging to the License Holder described herein and identified by license number F8396 is hereby revoked. 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 2007 Offered by: Second by: Rall Call: Mayor Gary L. Peterson Attest: Patricia Muscovitz, CMC City Clerk 227 CITY COUNCIL LETTER Meeting of July 23, 2007 AGENDA SECTION: Resolutions ORIGINATING DEPARTMENT: CITY Fire MANAGER NO: APPROVAL ITEM: Adopt Resolution For BY: Gary Gorman BY: Revocation DATE: July 13, 2007 DATE: NO: 2007-129 Revocation of the license to operate a rental unit within the City of Columbia Heights is requested against Steven Caputo regarding rental property at 1807-1809 41St Avenue N.E. for failure to meet the requirements of the Residential Maintenance Codes. RECOMMENDED MOTION: Move to close the public hearing and to waive the reading of Resolution No.2007-129, there being ample copies mailable to the public. RECOMMENDED MOTION: Move to adopt Resolution No. 2007-129, Resolution of the City Council of the City of Columbia Heights approving revocation pursuant to City Code, Chapter SA, Article IV, Section SA.408(A) of the rental license held by Steven Caputo regarding rental property at 1807-1809 41St Avenue N.E. COUNCIL ACTION: 228 RESOLUTION 2007-129 Resolution of the City Council for the City of Columbia Heights at~brovin~ revocation pursuant to City Code, Chapter SA, Article 1V, Section SA.408(A) of that certain residential rental license held by Steven Caputo (Hereinafter "License Holder"). Whereas, license holder is the legal owner of the real property located at 1807-1809 41St Avenue N.E., Columbia Heights, Minnesota, Whereas, pursuant to City Code, Chapter ~A, Article IV, Section SA.408(B), written notice setting forth the causes and reasons for the proposed Council action contained herein was given to the License Holder on June 27, 2007 of an public hearing to be held on July 23, 2007. 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 24, 2007, inspectors for the City of Columbia Heights, inspected the property described above and noted thirteen violations. A compliance letter listing the violations was mailed by regular mail to the owner at the address listed on the Rental Housing License Application. 2. That on June 27, 2007, inspectors for the City of Columbia Heights, reinspected the property and noted thirteen violations remained uncorrected. A statement of cause was mailed via regular mail to the owner at the address listed on the rental housing license application. 3. That on July 16, 2007, inspectors for the City of Columbia Heights, performed a final inspection at the property and noted eleven violations remained uncorrected. A statement of cause was mailed via regular mail to the owner at the address listed on the rental housing license application. 4. That based upon said records of the Enforcement Office, the following conditions and violations of the City's Residential Maintenance Code were found to exist, to- wrt: a. 1809 -Shall repair the holes in the wall in the dining room -kitchen area b. 1809 -Shall repair the hole in the door to the basement c. 1809 -Shall repair the hole in the wall in the northeast basement bedroom wal l d. 1809 -Shall repair the broken window in the northeast basement bedroom e. 1809 -Shall replace the missing screen on the northeast bedroom window f. 1809 -Shall replace the missing screen an the dining room window g. 1809 - Sha11 repair the lock on the door handle on the rear basement door h. Shall remove all/any scrub growth from along the fence line and around the foundation i. Sha11 remove the dead trees (tree stumps) in the back yard j. Shall remove all/any outside storage from the property k. 1807 -Shall repair loose railing outside on rear stairs 229 5. That all parties, including the License Holder and any occupants or tenants, have been given the annronriate notice of this hearing according to the provisions of the City Cade, Chapter SA, Article 11.1 SA.306 and SA.303(A). ORDER OF COUNCIL The rental license belonging to the License Holder described herein and identified by license number F8337 is hereby revoked. 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 2007 Offered by: Second by: Roll Call: Mayor Gary L. Peterson Attest: Patricia Muscovitz, C1VIC City Clerk 2sa CITY COUNCIL LETTER Meeting of July 23, 2007 AGENDA SECTION: Resolutions ORIGINATING DEPARTMENT: CITY Fire MANAGER NO: APPROVAL ITEM: Adopt Resolution For BY: Gary Gorman BY: Revocation DATE: July 13, 2007 DATE: NO: 2007-130 Revocation of the license to operate a rental unit within the City of Columbia Heights is requested against Joel Virtue regarding rental property at 3953 Jackson Street N.E. for failure to meet the requirements of the Residential Maintenance Codes. RECOP~TI~IENDED MOTION: Move to close the public hearing and to waive the reading of Resolution No.2007-130, there being ample copies available to the public. RECOMMENDED MOTION: Move to adopt Resolution No. 2007-130, Resolution of the City Council of the City of Columbia Heights approving revocation pursuant to City Code, Chapter SA, Article IV, Section SA.408(A) of the rental license held by Joel Virtue regarding rental property at 3953 Jackson Street N.E. COUNCIL ACTION: 231 RESOLUTION 2007-130 Resolution of the City Council for the City of Columbia Heights approving revocation pursuant to City Cade, Chapter SA, Article IV, Section SA.408(A} ofthat certain residential rental license held by Joei Virtue (Hereinafter "License Holder"}. Whereas, license holder is the legal owner of the real property located at 3953 Jackson Street N.E., Columbia Heights, Minnesota, Whereas, pursuant to City Code, Chapter SA, Article V, Section ~A.408(B), written notice setting forth the causes and reasons for the proposed Council action contained herein was given to the License Holder on June 7, 2007 of an public hearing to beheld on July 23, 2007. 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 March 27, 2007, inspectors for the City of Columbia Heights, inspected the property described above and noted nine violations. A compliance letter listing the violations was mailed by regular mail to the owner at the address listed on the Rental Housing License Application. 2. That on May 4, 2007 an extension of time was granted to make the repairs. 3. That on June 7, 2007, inspectors for the City of Columbia Heights, reinspected the property and noted eight violations remained uncorrected. A statement of cause was mailed via regular mail to the owner at the address listed on the rental housing license application. 4. That on July 13, 2007, inspectors for the City of Columbia Heights, performed a final inspection at the property and noted eight violations remained uncorrected. A statement of cause was mailed via regular mail to the owner at the address listed on the rental housing license application. 5. That based upon said records of the Enforcement Office, the following conditions and violations of the City's Residential Maintenance Code were found to exist, to- wit: a. Shall install. sod., grass seed, or approved landscaping material on all bare spots of the yard b. Shall repair/replace the front screen door that is broken, has the screen falling out c. Shall replace all rotted fascia on the south side of the house d. Shall repair/replace the garage roof. Numerous damaged/cupped. shingles. Check with the Building Department, a permit for that work is required e. Shall replace the missing metal siding corners on the garage (alley side} f. Shall repair the wood fence in the rear g. Sha11 repair the soffit an the rear of the house h. Shall remove the large, dead tree branches, hanging off the tree in the back. yard 232 6. That all parties, including the License Holder and any occupants or tenants, have been given the appropriate notice of this hearing according to the provisions of the City Code. Chanter SA. Article III. SA.306 and SA.303fA1. ORDER OF COUNCIL 1. The rental license belonging to the License Holder described herein and identified by license number F8039 is hereby revoked. 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 2007 Offered by: Second by: Roll Call: Mayor Gary L. Peterson Attest: Patricia Muscovitz, CMC City Clerk 233 CITY COUNCIL LETTER Meeting of July 23, 2007 AGENDA SECTION: Resolutions ORIGINATING DEPARTMENT: CITY Fire MANAGER NO: APPROVAL ITEM: Adopt Resolution For BY: Gary Gorman BY: Revocation DATE: July 13, 2007 DATE: NO: 2007-131 Revocation of the license to operate a rental unit within the City of Columbia Heights is requested against Veronica Moroz regarding rental property at 4533 Madison Street N.E. for failure to meet the requirements of the Residential Maintenance Codes. RECOMMENDED MOTIOI`': Move to close the public hearing and to waive the reading of Resolution No.2007-131, there being ample copies available to the public. RECOMMENDED MOTION: Move to adopt Resolution No. 2007-131, Resolution of the City Council of the City of Columbia Heights approving revocation. pursuant to City Code, Chapter SA, Article IV, Section SA.408(A} of the rental. license held by Veronica Moroz regarding rental property at 4533 Madison Street N.E. COUNCIL ACTION: 234 RESOLUTION 2007-131 Res~h~tien ~f the City Council far the Citv of Columbia Heiuhts annrovin~ revocation pursuant to City Code, Chapter SA, Article ICI, Section SA.408(A} of that certain residential rental license held by Veronica 1Vloroz (Hereinafter "License Holder"). Whereas, license holder is the legal owner of the real property located at 4533 Madison Street N.E., Columbia Heights, Minnesota, Whereas, pursuant to City Code, Chapter SA, Article I V, Section SA.408(B}, written notice setting forth the causes and reasons for the proposed Council action contained herein was given to the License Holder on June 7, 2007 of an public hearing to be held on July 23, 2007. 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 April 30, 2007, inspectors for the City of Columbia Heights, inspected the property described above and noted two violations. A compliance letter listing the violations was mailed by regular mail to the owner at the address listed on the Rental Housing License Application. 2. That on June 7, 2007, inspectors for the City of Columbia Heights, reinspected the property and noted one violation remained uncorrected. A statement of cause was mailed via regular mail to the owner at the address listed on the rental housing license application. 3. That on July 13, 2007, inspectors for the City of Columbia Heights, performed a final inspection at the property and noted one violation remained uncorrected. A statement of cause was mailed via regular mail to the owner at the address listed on the rental housing license application.. 4. That based upon said records of the Enforcement Office, the following conditions and violations of the City's Residential Maintenance Cade were found to exist, to- wn: a. Shall cut down/removed all trees growing up in the fence on the north side 5. That all parties, including the License Holder and any occupants or tenants, have been given the appropriate notice of this hearing according to the provisions of the City Code, Chapter SA, Article III SA.30C~ and SA.303(A}. ORDER OF COUNCIL 1. The rental license belonging to the License Holder described herein and identified by license number F8400 is hereby revoked. 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. 235 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 2007 Offered by: Second by: Ro11 Call: Mayor Gary L. Peterson Attest: Patricia Muscovitz, CMC City Clerk 236 PUBLIC HEARINGS TO BE REMOVED FROM THE AGENDA FOR THE JULY 23, 2007 MEETING. RFMOVF - M(1VP to arlnnt RpSnlutinn Nn_ 2nn7-12A RPGnl~itinn of the City C;nunril of the City of Columbia Heights approving revocation pursuant to City Code, Chapter 5A, Article IV, Section 5A.408(A) of the rental license held by Steven Caputo regarding rental property at 1807-1809 41St Avenue N.E. REMOVE -Move to adopt Resolution No. 2007-123, Resolution of the City Council of the City of Columbia Heights approving revocation pursuant to City Code, Chapter 5A, Article IV, Section 5A.408(A) of the rental license held by Delanza Elliot regarding rental property at 1124-1126 45t" Avenue N.E. REMOVE -Move to adopt Resolution No. 2007-131, Resolution of the City Council of the City of Columbia Heights approving revocation pursuant to City Code, Chapter 5A, Article IV, Section 5A.408(A) of the rental license held by Veronica Moroz regarding rental property at 4533 Madison Street N.E. REMOVE -Move to adopt Resolution No. 2007-124, Resolution of the City Council of the City of Columbia Heights approving revocation pursuant to City Code, Chapter 5A, Article IV, Section 5A.408(A) of the rental license held by Ed Fitzpatrick regarding rental property at 4514-4516 Fillmore Street N.E. REMOVE -Move to adopt Resolution No. 2007-125, Resolution of the City Council of the City of Columbia Heights approving revocation pursuant to City Code, Chapter 5A, Article IV, Section 5A.408(A) of the yenta! license held by Enes Hegic regarding rental property at 4525 Chatham Road N.E. REMOVE -Move to adopt Resolution No. 2007-118, a resolution of the City Council of the City of Columbia Heights declaring the property at 3723 Johnson Street N.E. a nuisance and approving the abatement of violations from the property pursuant to City Code section 8.206. REMOVE -Move to adopt Resolution No. 2007-116, a resolution of the City Council of the City of Columbia Heights declaring the property at 1131 37t" Avenue N.E. a nuisance and approving the abatement of violations from the property pursuant to City Code section 8.206. REMOVE -Move to adopt Resolution No. 2007-128, Resolution of the City Council of the City of Golumbia Heights approving revocation pursuant to City Code, Chapter 5A, Article IV, Section 5A.40$(A) of the rental license held by Catalina Peralta regarding rental property at 4550 Madison Street N.E.