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June 8, 2009 Regular
CITY OF COLUMBIA HEIGHTS 590 40`h Avenue NE, Columbia Heights, MN 55421-3878 (763}706-3600 'I'DD (763} 706-3692 ~sil our website at: www.ci.col~mibia-hei~bts.nvr.us Mahar Gmv L. Peterso~s Councilmembers Robert A. YY'ii(ian7s Bruce Nawrocki Tannnera Diehna Brace Kel=enberg City Mannper Walter R. Fehst The following is the agenda for the regular meeting of the City Council to be held at 7:00 p.m. on Monday, June 08, 2009 in the City Council Chambers, City Hall, 590 40th Avenue N.E., Columbia Heights, MN. The City of Columbia 1-leights does ret discriminate on the basis of disability in the admission or access ±o, 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 City Clerk at 763-706-3611, to make arrangements. (TDD/706-3692 for deaf or hearing impaired only) 1. CALL TO ORDER/ROLL CALL/INVOCATION Invocation by Rev. Dave Briley, Oak Hill Baptist Church 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 may be items brought to the attention of the Council under the Citizen Forum or items submitted after the agenda preparation deadline.) 4. PROCLAMATIONS PRESENTATIONS RECOGNITION ANNOUNCEMENTS AND GUESTS A. 2009 Citizen of the Year -Humanitarian Award -Howie Haeg p4 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 from consent agenda approval will be taken up as the next order of business.) A. Approve the minutes of the May 26, 2009 City Council meeting_ MOTION: Move to approve the minutes of the May 26, 2009 City Council meeting. p5 B. Accept the minutes of the Columbia Heights Boards and Commissions. MOTION: Move to accept the April 28, 2009 minutes of the Economic Development Authority. pl7 MOTION: Move to accept the .Tune 2, 2009 minutes of the Planning and honing Commission. p~ a C. Adopt Resolution 2009-72. being a resolution waiving the tort liability limits and authorize insurance agreement with the LMCIT. p4z MOTION: Move to authorize the Mayor and City Manager to enter into an agreement with the League of Minnesota Cities Insurance Trust to renew the City's liability and property insurance coverage, including excess Liability insurance of$1,000,000 and waiving the tort liability limits. MOTTO?~F: Move to waive tl~e reading of Resolution 2009-72, there being ample copies available to the public. City Council Agenda Monday, 3une 08, 2009 Page 2 of 3 MOTION: Move to adopt Resolution 2009-72, being a resolution waiving the tart liability limits. D. Adopt Resolution 2009-73, being a resolution approving a Conditional Use Permit for Outdoor Sale and Display at 4340 Central Avenue. p46 MOTION: Move to waive the reading of Resolution 2009-73, there being ample copies available to the public. MOTION: Move to adopt Resolution Na. 2009-73, approving a Conditional i Jse Permit for an outdoor sales/display establishment located at 4340 Central Avenue, subject to the conditions outlined in Resolution No. 2009-73. E. Approval of the attached list of rental housing license applications, in that they have met the ps a requirements of the Property Maintenance Code. MOTION: Move to approve the items listed for rental housing license applications for June 8, 2009. F. Approve Business Liccnsc Applications ~6z MOTION: Move to approve the items as listed. on the business license agenda far June 8, 2009 as presented. G. Approve payment of the bills. p63 MOTION: Move to approve the payment of the bills out of the proper fund as listed in the attached register covering Check Number 130506 through Check Number 1.30645 in the amount of $1,068,594.27. MOTION: Move to approve the Consent Agenda items. 6. PUBLIC HEARINGS A. Adopt Resolution 2009-74, awarding the Sale of $3,935,000 in General Obligation Public p70 Facilities Bonds, Series 2009A and Resolution 2009-75 for $930,000 in General Obli ag tion Taxable Tax Increment Financing Bonds, Series 2009B. MOTION: Move to waive the reading of Resolution 2009-74, there being ample copies available w uic Yuucii. MOTION: Move to adopt Resolution 2009-74 being a resolution awarding the sale of $3,935,000 in General Obligation Public Facilities Bonds, Series 2009A. MOTION: Move to waive the reading of Resolution 2009-75, there being ample copies available to the public. MOTION: Move to adopt Resolution 2009-75 being a resolution awarding the sale of $930,000 in General Obligation Taxable Tax Increment Financing Bonds, Series 2009B. B. Adopt Resolutions 2009-79, 4138 4uincv Street N.E., 2009-80, 3915 Tyler Street ~I.E., and pals 2009-81, 4344 2nd Street N.E. being Resolutions apt~rovin~ rental license revocation far failure to meet the requirements of the Property Maintenance Codes. MOTION: Move to elose the public hearing and to waive the reading of Restitution Numbers 2009-79, 80, and 8I, there being ample copies available to tl~e public. City Council Agenda Monday, June 08, ?009 Page 3 of 3 MOTION: Move to adapt Resolution Numbers 2009-79, 80, and 81, being Resolutions 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 licenses listed. C. Adout Resolutions 2009-76.4039 5th Street N.E.. 2009-77.4448 Ouincv Street N.E., and 2009- 78. 3930 University Avenue N.E. being declarations of nuisance and abatement of violations pizs within the City of Columbia Heights. MOTION: Move to close the public hearing and to waive the reading of Resolution Numbers 2009=76, 77, and 78 there being ample copies available to the public. MOTION: Move to adopt Resolution Numbers 2009-76, 77, and 78 being resolutions of the City Council of the City of Columbia Heights declaring the properties listed a nuisance and approving the abatement of violations from the properties pursuant to City Cade section 8.206. 7. ITEMS FOR CONSIDERATION A. Other Ordinances and Resolutions -none B. Bid Considerations -none C. Other Business -none S. ADMINISTRATIVE REPORTS Report of the City Manager Report of the City Attorney 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 11. ADJOU MENT ~,,x _._. r -,~ %~ Walter R. Fehs ,City Manager WF/pvm IE E a A Columbia Heights is proud to announce the 2009 Humanitarian of the Year, Howie Haeg. Howie and his wife Betty have lived in Columbia Heights for 51 years, where they raised two children. They now enjoy their children, san-in-law, daughter-in-law and five grandchildren. Howie retired in 1992 after 35 years with Minnegasco. Howie has always liad a deep sense of colilinunit-y and helping others. He keeps ve~y'ousy with volunteer work, helping neighbors, tending a huge garden, woodworking, and attending events for his grandchildren. Howie is a 50 year member of the Knights of Columbus. He chairs the wreath sales that benefit the Boy Scouts, participates in the Adopt a Highway clean up program, the Tootsie Roll benefit for mentally handicapped persons, and is a past Grand Knight. He is a certified CPR instructor, and has taught a CPR class through the American Heart Association for over ten years, focusing on infants. Howie has also taught a "55 Alive" class for ten years. Over the years, Howie has donated a total of six gallons of blood to the Memorial Blood Center and five gallons to the American Red Cross. He has been a member of Immaculate Conception Church for 50 years and an usher for over 20 years. He volunteers at the ICC Fun Fest and other church events and has delivered Meals on Wheels through the church. Howie is known as the neighborhood "go to guy", helping neighbors with handyman projects, watching homes, picking up mail, and helping with snow removal. He also generously shares items from his garden. Howie has hosted the neighborhood National Night Out party for ten years. His san, Al, says "As I was growing up he showed me, through his actions, what it means to be a goad father, good 'husband, good neighbor, and a good person." Howie was nominated and chosen for his unselfish contribution to the City of Columbia Heights by sharing his time and talents and being a very special role model. Thank you, Howie, far your many years of community service to the citizens of Columbia Heights. Mayor Gary I.. Peterson OFFICIAL PROCEEDINGS CITY OF COLUMBIA HEIGHTS CITY COUNCIL MEETING TUESDAY, MAY 26, 2009 The following are the minutes far the regular meeting of the City Council held at 7:00 p.m. on Tuesday, May 26, 2009 in the City Council Chambers, City Hall, 590 40th Avenue N.E., Columbia Heights, MN. CALL TO ORDER/ROLL CALL/INVOCATION Present: Mayor Peterson, Councilmember Williams, Councilmember Nawrocki, Councilmember Diehm, Councilmember Kelzenberg Pastor Bili Hugo, St. Matthew Lutheran Church, gave the Invocation. PLEDGE OF ALLEGIANCE -recited ADDITIONS/DELETIONS TO MEETING AGENDA Mayor Peterson removed the public hearings for Resolution numbers 2009-68, 69, 72, 73, 74, 75, and 76 in that the properties have been brought into compliance. PROCLAMATIONS PRESENTATIONS RECOGNITION ANNOUNCEMENTS GUESTS A. Elaina Hamann -Regional and International Science Fair participant Peterson stated that Ms. Hamann, of Columbia Heights, was present. He read from a newspaper article indicating Ms. Elaina Hamann has won six first-place awards and a participation trophy at the Twin Cities Regional Science Fair and in April attended the International Science Fair in Houston, Texas. Elaina Hamann stated her project was on algae and its conversion to bio-diesel fuel. She explained the process she used. Hamann stated that she received a bronze metal at the Texas International Science Fair. B. Introduction -Eric Shurson, Assistant Liquor Store Manager Larry Scott, Liquor Store Manager, introduced our new Assistant Liquor Store Manager, Eric Shurson. Shurson stated his pleasure to work for the City of Columbia Heights and spoke of his business background. CONSENT AGENDA i~eurr'roi~i'sa reque3ted reiiav`v'ai of iteiiZ.~x ~a, sr..~, D, E, and H dur disi uiJivia. Linda Magee, Assistant to the City Manager, took the Council through the consent agenda. A.Approve the minutes of the May 11, 2009 City Council meeting. Removed B.Accept the minutes of the Columbia Heights Boards and Commissions Motion to accept the April 16, 2009 minutes of the Charter Commission. C.Adopt Resolution 2009-65, approving gap financing for redevelopment of 37th and Central. Removed D.Adopt Resolution 2009-66 being a. Resolution requesting Anoka County HRA funds for Make Heights Your Home program. Removed E. Ado t Resolution No. 2009-64. bein ~ a Resolution that extends the $500 reimbursement ro ram for the years 2009 through 2012 for the removal of illegal cross-connections to the sanitar sy ewer s sy tem. -Removed City Council Minutes Tuesday, May 26, 2009 Page 2 of 12 Removed F. Approval of the attached list of rental housing license applications, in that they have met the requirements of the Property Maintenance Code. Motion to approve the items listed for rental housing license applications far May 26, 2009. G.Approve Business License Applications Motion to approve the items as listed on the business License agenda for May 26, 2009 as presented. H.Approve payment of the bills. Removed Motion by Nawrocki, second by Williams, to approve the Consent Agenda items with the exception of items A, C, D, E, and H. Upon vote: All ayes. Motion carried. Discussion A. Approve the minutes of the May 11, 2009 City Council meeting. Nawrocki stated that at the last meeting the Mayor dispensed with Council Corner. The minutes should state that Nawrocki objected strongly to the removal. Motion by Williams, second by Kelzenberg, to approve the minutes of the May 11, 2009 City Council meeting, as amended. Upon vote: All ayes. Motion carried. C. Adopt Resolution 2009-65, approving_gap financing for redevelopment of 37th and Central. Scott Clark, Community Development Director, stated that this is for the gap financing proceeds from the Anoka County HRA Levy. Both the City Council and the EDA have approved the original and amended redevelopment agreement for 37th and Central. One of the conditions is for $100,000 of gap financing for the project. A resolution is necessary to obtain those funds. Nawrocki. questioned what the "gap" is. Clark stated that the developer came to us to establish a Performa. The project was not economically feasible. We gave three parcels of property and $100,000, and funds for some access reconstruction on 37th Avenue. Nawrocki asked haw much public money has gone into this project. Clark estimated the parcel value at about $300,000 to $350,000, plus or minus 20 percent. Clark stated the developer is in the process of looking at tenants. The City Council. did extend the project for onffe year. y li'lt3tl~n by Y~TIlllaYlts, secolid by 11eiGellber g, tV adopt ResollAtiVr1 2009®6J, requestllig itAtlds 111 the amount of $100,000 from the Anoka County HRA levy to finance the gap in the redevelopment of the northwest corner of 37th and Central Avenue. Upon vote: All ayes. Motion carried. D. Adopt Resolution 2009-66 being a Resolution requesting Anoka County HRA funds for Make Heights Your Home ,program. Clark stated that this program is to provide an incentive for individuals to buy foreclosed properties up to 3.S percent of the acquisition price with a ;naxin~uln of $6,000, for the down payment. The individual would have to become involved in the FHA process with a guaranteed minimum of $10,000 in rehabilitation to the property. The Ioan would be forgiven if they Iive on the property far ten years, and pro-rated if less time than that. Clark stated the County levy amount is $208,294, with 15 percent going to the Coutaty far admil~istration fees. Nawrocki asked if these funds could be used. for demolition. Clark stated they would be used for the "Make Heights Your Home" program. Motion by Williams, second by Diehm, to waive reading of Resolution 2009-66 there being ample copies available for the public. Upc~sn vote: All ayes. Motion carried. Motion by Williams, second by Diehm, to approve Resolution 2009-66 being a Resolution requesting City Council Minutes Tuesday, May 26, 2009 Page 3 of 12 funds in the amount of $160,000 from the Anoka County levy to finance Make Heights Your Nome down payment assistance program. Upon vote: Kelzenberg, aye; Williams, aye; Diehm, aye; Nawrocki, nay; Peterson, aye. 4ayes - 1 nay. Motion carried. E. Adopt Resolution No. 2009-64, being a Resolution that extends the.$500 reimbursement pram for the nears 2009 through 2012 for the removal of illegal cross-connections to the sanitary sewer s,, s Jesse Davies, Recycling Coordinator, stated the current Met Council charge of $85,000 a year could be reduced by lowering our infiltration into the sanitary sewer. Davies listed the areas of the city that have already been inspected and the areas remaining. The $500 reimbursement for infiltration correction has been. available since the beginning of the program.. Currently, there are 15 violations outstanding. The reimbursement is to help property owners correct the violation. 90 percent of owners have allowed the inspection and 90 percent have complied with requirements. Williams asked. the number of violations found.. Davies stated that 213 violations were found in the 3,900 properties inspected. Motion by Diehm, second by Kelzenberg, to waive the Reading of Resolution No. 2009-64, there being ample copies available to the public. Upon vote: A11 ayes. Motion carried. Motion by Diehm, second by Kelzenberg to adopt Resolution No. 2009-64 that extends the $500 reimbursement program for the years 2009 through 2012 far the removal of illegal cross-connections to the sanitary sewer system. Upon vote: All ayes. Motion carried. H. Approve payment of the bills. Motion by Nawrocki, second by Diehm, to approve the payment of the bills out of the proper fund as listed in the register covering Check Number 130294 through Check Number 130505, with the exception of check number 130315. Upon vote: All ayes. Motion carried. Motion by Nawrocki, second by Diehm, to approve check number 130315. Upon vote: Kelzenberg, aye; Williams, abstain; Diehm, aye; Nawrocki, aye; Peterson, aye. 4ayes - 1 abstention. Motion carried. PUBLIC HEARINGS A.Second Reading: Adopt Ordinance 1565, Zoning Amendment to rezone 4337 University Avenue from LB to is-2A. Jeff Sargent, City Planner, stated this is the second reading and the applicant is present to answer questions. Allen Clark Wiggins, 4232 5th Street, owner of the property, stated he has cleaned up the property exterior and is beginning to upgrade the home. Motion by Kelzenberg, second by Williams, to waive the reading of Ordinance No. 1565, there being ample copies available to the public. Upon. vote: All ayes. Motion carried. Motion by Kelzenberg, second by Williams, to adopt Ordinance No. 1565, being an Ordinance approving the rezoning of the property lacated at 4337 l~iniversity Avenue from LB, Limited Business to R-2A, One and Two Family Residential. Upon vote: All ayes. Motion carried. B.Adopt Resolutions 2009-68, 1022 42-1/2 Ave~~ue N.E., 2009-69, 3$1.0 Jackson Street N.E., 200~- 70 4207-09 2nd Street N.E. 2009-71 960 43-1/2 Avenue N.E. 2009-72 4&06 Madison Street N.E. 2009-73, 1401-03 Parkview Lane N.E. 2009-74 1415 43rd Avenue N.E. 2009-75 4240 Monroe Street N.E., and 2009-76, 1323 41st Avenue N.E. being Resolutions of the City Council of the City of 7 City Council Minutes Tuesday, May 26, 2009 Page 4 of 12 Columbia Hei hg is approving rental license revocation for failure to meet the requirements of the Property Maintenance Codes. Peterson stated that Resolutions 2009-68, 69, 72, 73, 74, 75, and 76 were removed, as the properties have been brought into compliance. Fire Chief Gary Gorman indicated these revocations are requested for failure to submit a license application, schedule an inspection, and non-payment of fees. Motion by Williams, second by Diehm, to close the public hearing and to waive the reading of Resolution Numbers 2009-70, 71, there being ample copies available to the public. Upon vote: All ayes. Motion carried. Motion by Williams, second by Diehm., to adopt Resolution Numbers 2009-70, and 71, being Resolutions 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 licenses listed. Upon vote: All ayes. Motion carried. ITEMS FOR CONSIDERATION A. ®the~• ®rdinances and Resolutions 1. Adopt Resolution No. 2009-67, being a Resolution establishing Fire Department service charges fees. Motion by Williams, second by Kelzenberg, to waive the reading of Resolution No. 2009-67, there being ample copies available to the public. Upon vote: All ayes. Motion carried. Motion by Williams, second by Kelzenberg, to adopt Resolution No. 2009-67, being a Resolution establishing Fire Department service charges fees. Nawrocki stated he is against charging additional fees for work included in the fire department's duties. Gorman stated that these items are above normal day-to-day operation, such as vehicle accidents, hazardous material spills, specialized rescues, fires along highways, and railroad yard fires. None of these items, except vehicle accidents, would pertain to a resident. Most vehicle insurance policies cover fire response. Peterson asked if other comm~.tnities do this. Gorman referred to the survey he completed which lists what cities have additional charges and other cities that want our information, as they are also looking to enact this program. Nawrocki questioned the number of vehicle responses and the percentage that are residents. Gorman stated only a small percentage are Columbia Heights residents. Nawrocki stated that the City of Fridley only charges for vehicle accidents requiring extraction. Gorman stated that our ordinance is taken almost word for word from Fridley's ordinance and is not limited to vehicle extraction. Gorman indicated that with a 17 percent budget lass, he is trying to find other revenue sources. Deb Johnson 4626 Pierce Street, asked the protocol far accidents and if an accident is assessed before the large equipment is called in. Gorman stated it is. i cccr50-i ~~a~cu uia~ i~ waS ucGiucu a~ uic iii~~ rC,auing vi u~~,. vi uinaifCC w Cb'aiuaw uiiS program in fSicc year. Upon vote: Kelzenberg, aye; Williams, aye; Diehm, aye; Nawrocki, nay; Peterson, aye. 4ayes - 1 nay. Motion carried. Peterson stated this would not change how emergencies are handled and the reaction given. City Council Minutes Tuesday, May 26; 2009 Page 5 of l 2 2. Adopt Emergency Ordinance No. 1566, to study the effects of smoke shop uses in all commercial districts. Jeff Sargent stated the Freedom to Breath Act allows for the sampling of tobacco products; however there are aspects of this that require additional research, such as zoning. Currently, there are three approved licenses, three pending applications, and possible additional requests. The moratorium would. allow three months to study the situation and zoning and three months to create the ordinance. Nawrocki requested clarification if the license holders need to sell tobacco. Sargent stated that the license holder must have 90 percent of their sales in tobacco products. Nawrocki indicated this must be a stand-alone facility. Diehm asked the location of the pending applications. Sargent stated they are on the 41.00 block of Central Avenue. Jim Hoeft, City Attorney, indicated that the pending applications can be held for the time of the moratorium. The placement is a zoning issue and licensing issue, so both would be suspended. Michael Johnson, Accountant, stated he represents the clients that applied for these licenses. He listed his background in establishing smoke shops. They are looking for a tobacco license that allows users to sample tobacco. It has become more of an ethnic issue beyond the traditional tobacco shop. He asked for criteria on how this license will function. Peterson stated that the moratorium would allow time to establish those perimeters and suggested he work with staff. Diehm stated that we want to pi°ovide proper separation from schools and follow state law. Johnson asked if existing licenses could continue operation. Peterson stated that currently licensed business could continue operation. Omar Jamal, Somalia advocacy group of St. Paul, stated that there are two operating stores owned and run by middle easterners. There is a license pending for 4111 Central. It would isolate food from tobacco sales. He has spoke to state representative's regarding cultural smoking. He asked that the pending licenses be allowed to serve the community and their Somalia culture during the moratorium. Clark listed the current licensed establishments. He informed the Council that there are two pending licenses for the same address. Jamal indicated the ethnicity of the other two licensed shops. Peterson asked if this moratorium would affect the pending application. Jim Hoeft, City Attorney, stated that it would. JamaI stated that he was not aware of two applications for the same address. Peterson stated that there are many questions to be answered and asked that Sargent work with these people. The moratorium can be lifted at any time. Clark stated the moratorium would be for six months and a staff comgnittee would come back to the City Council with a recommendation. The pokey question tonight would. be excluding the pending applications from this moratorium. Hoeft stated the Council could decide where to draw the line on this moratorium. The easiest answer is to stop at this point and review the policy. Hoeft stated concern with the request to allow one specific ethnic group, as decisions can not be made on that basis. Bob Odden, 1201. 42 '/2 Avenue asked why there is a request for an emergency moratorium, as we have existing shops and building vacancies. This would help the city financially. He questioned ho~~:~ a heavy concentration of smoke shops would be an issue. 1VQ~WNUK1 JlctlGUct~'1GG11IGIri W1U1 111G ~..1Ly tVLL11111Gy. .7LctlG 1QWttiiUW3 lUl LIiG titQt UL Ll3UctOGU p10UUG6J. The law was being broken. at tyre 49t1i Avenue location in a restaurant. The state laas placed restrictions to keep areas smoke free. He stated concern for proper ventilation of buildings that are suites. He encouraged moving forward with the moratorium. Donna Schmitt., 4260 Tyler Street, stated this is not to stop smoking in these shops. You do not want any concentration of the same type businesses in one area. Clark stated the concentration issue is only part of this, along with the Freedom to Breath Act, County regulations, etc. City Council Minutes Tuesday, May 26, 2009 Page 6 of 12 Motion by Williams, second by Nawrocki, to waive the reading of Ordinance No. 1566, there being an ample amount of copies available to the public. Upon vote: All ayes. Motion carried. Motion by Williams, second by Nawrocki., to adopt Emergency Ordinance No. 1566, being an Ordinance establishing an Emergency Moratorium for the purpose of protecting the planning process and the health, safety, and welfare of City residents and regulating the establishment of smoke shops in all commercial districts. Upon vote: All ayes. Motion carried. Peterson suggested that people with concerns contact the City Planner to work through this. B. Bid Considerations -none C. Other Business Acceptance of the final 2010 Comprehensive Plan Update draft for submittal to the Metropolitan Council. Sargent stated that we are near completion of the 2030 Comprehensive Plan. The city hosted a public meeting on the plan, comments were collected, and comments from. neighboring communities were collected and added to the draft plan. The next step is to submit the plan to the Metropolitan Council far their review and receive back their suggestions. Nawrocki stated his disappointment in this process. fle does not understand why there is not further discussion on the comments received. Sargent stated this submittal is a final version of the plan. Once approved by the Met Council., it can be submitted as the final plan. Nawrocki questioned the implications of the comments and their impact on the plan. He stated he would not approve this and would like to see how the comments affect the plan and how they are applied. Diehm referred to comments received by the watershed and was surprised by the comments from the City of Fridley, asking if they were from their Council or staff. Sargent stated that our staff does the review for other cities, but he was not sure how they do it. Diehm read the City of Fridley's comments and stated her pleasure that they review it so thoroughly and give their comments. Nawrocki stated. that, as a council, they were not given the opportunity to review the Fridley plan. Diehm suggested that in the future, if council members have an interest, they come in and review the other plans. Motion by Diehm, second by Kelzenberg, to accept the final 2010 Comprehensive Plan Update draft, with proposed changes, for submittal to the Metropolitan Council. Dwayne Morrell, 4212 Reservoir Boulevard, commented on bike paths and gave commuter rail suggestions. Upon vote: Kelzenberg, aye; Williams, aye; Diehm, aye; Nawrocki, nay; Peterson, aye. 4 ayes - 1 nav M~tir~n c~arri~fi 10 City Council Minutes Tuesday, May 26, 2009 Page 7 of 12 Report of the City Attorney -nothing to report. CITIZENS FORUM Morrell stated he would like to see limitations on the expansion of charges in Resolution 2009-67. He asked if the fire department budget is available. Diehm stated the fees have to be set by resolution and any change would have to be approved by the Council. This must be reviewed next year or it will go away. Hoeft stated that the fees can not exceed the cost of the service. The rates used are based upon our budget and an international fire department formula. Morrell asked if the bridge design is complete. Peterson stated no. Morrell stated that he is working on a design for an increase/decrease curve. He stated it would be cost effective to add new ramps to the existing bridge. Odden stated is would be helpful if the Council encouraged people to move into our community as we have low crime. He referred to holding down taxes and the liquor store signs. COUNCIL CORNER Kelzenberg • Read item from the green sheet regarding recent daytime burglaries. Watch out for your neighbor's houses and call 911 if there is any suspicious activity. • Wished his son a happy 18t1' birthday. Williams • Referred to the community fundraiser for playground equipment for two parks on June 19th and 20th. He listed the activities scheduled. Tickets are available at city hall, the school, and from the Mayor. This will renew the play equipment at Castle Heights and at Huset Park. Diehm • Referred to the Heritage Heights policing plan, which dedicated 47 hours, contact with. 1.26 residents, and resulted in 10 arrests. • Heights Idol competition was held and round two be held June 27. Come to see the great talentrn our community. • June 11 will be the community celebration to open the two new gyms. Come and. tour the new gyms. ~ Remiiadvd C'Jciy'orie what oLir ive'3d Shelf dGeS iiir vur ~oxixciYiirci j%. hvi3vJ with oiar Ciliidreil Dill i~f school, there is a greater donation. need. If you are able to make adonation - it is appreciated. Nawracki • Spoke of the pedestrian bridge ramps. • It is difficult to collect fire service fees from the rail road. • Concerned about the budget process. Questioned what the Governar will do regarding aid reduction. You have to look far cast efficiencies. The employee furlough this year was a good thing. We must look ahead. The manager indicated. he is looking at 13.6 percent property tax increase for next vear° which does not include the Countv;EDA levy. Peterson • Extended an invitation far citizens to email what services they would like to see cut and how to cut them. We represent the community and. want tine best service for the money. e can plow snow at six or twelve inches instead of at three. Why would Cancilmember Nawrocki vote again an of°dinance for extra fire services rather tl~at~ having all residents pay for thean? • Public safety building is coming along great. This is an exciting time in Columbia E-Ieights. 11 City Council Minutes Tuesday, May 26, 2009 Page 8 of 12 • Working to raise funds for a public servant statue by selling engraved brick and commemorative coins. We have raised $18,000 of our $50,000 goal. There is a lot of cooperation in the community. • June lli" is the opening of the new gym, with many festivities planned. We want to provide opportunities to our youth and citizens. • Don't take ourselves tao seriously and do a random act of kindness. Nawrocki stated that Donna Schmitt did make a recommendation on budget issues. It was indicated that we would look at it but have not. Peterson stated that we have not looked at the budget yet. • Don't forget your ser~JicP men and women. • There was a wonderful celebration held by the ~JFW on P~!femorial Day. NavvTOCki was the MC, with music and the homily by Pastor Briley, followed by a lunch. ADJOURNMENT Mayor Peterson adjourned the meeting at 9:04 p.m. Patricia Muscovitz, CMC City Clerk RESOLUTION 2009-65 A RESOLUTION REQUESTING FUNDS IN THE AMOUNT OF $100,000 FROM THE ANOKA COUNTY HRA LEVY TO FINANCE THE GAP IN THE REDEVELOPMENT OF THE NORTHWEST CORNER OF 37Th AND CENTRAL, IN THE CITY OF COLUMBIA HEIGHTS. WHEREAS, the City Council was invited by the Anoka County Housing and Redevelopment Authority (ACHRA) to participate in ACHRA economic development activities; and, WHEREAS, Council passed a resolution on September 10, 2007 to participate in the Anoka County Housing and Redevelopment Authority (ACHRA) economic development activities; and, WHEREAS, the ACHRA would levy a tax in Columbia Heights each year of participation, for a minimum of five years; and, WHEREAS, that the City, by participation in the ACHRA economic development activities, can request funds to support the City's redevelopment and housing maintenance and improvement goals; and, WHEREAS, the redevelopment of the northwest quadrant of 37`" and Central continues the City's endeavors and goals in revitalizing the central business district: and WHEREAS, Anoka County Community Development staff indicated that gap funding assistance for the redevelopment of 37thand Central would be a qualified expenditure; and, WHEREAS, the 37`" and Central LLC entered into an agreement on June 24, 2008 and subsequently amended. on April 28, 2009 with the City oa` Coluiribia Heights and the City of Columbia Heights' Economic Development Auihority (EDA j; and, WHEREAS, the redevelopment of 37t" and Central requires $100,000 in gap funding assistance. BE IT FURTHER RESOLVED that the City of Columbia Heights requests $100,000 from the Anoka County HRQ for gap funding assistance far the redevelopment of 37`" and Central based on the provisions of the Redevelopment Contract for Private Redevelopment, dated April 28, 2009 as amended, between the City of Columbia heights, Colui~~bia Heights EDA and the 37`" and Central LCC RESOLUTION 2009-66 A RESOLUTION REQUESTING FUNDS IN THE AMOUNT OF $1b0,000 FROM THE ANOKA COUNTY HRA LEVY 1"O FINANCE MAKE HEIGHTS YOUR HOME DOWN PAYMENT ASSISTANCE PROGRAM IN THE CITY OF COLUMBIA HEIGI-ITS. 12 City Council Minutes Tuesday, May 26, 2009 Page 9 of 12 WHEREAS, the City Council was invited by the Anoka County Housing and Redevelopment Authority (ACHRA) to participate in ACHRA economic development activities; and, WHEREAS, Council passed a resolution on September 10, 2007 to participate in the Anoka County Housing and Redevelopment Authority (ACHRA} economic development activities; and, WHEREAS, the ACHRA would levy a tax in Columbia Heights each year of participation, for a minimum of five years; and, WHEREAS, that the City, by participation in the ACHRA economic development activities, can request funds to support the City's redevelopment and housing maintenance and improvement goals; and, WHEREAS, Anoka County Community Development staff indicated that a down payment assistance program would be a qualified expenditure; and, BE IT FURTHER RESOLVED that the City of Columbia Heights requests $160,000 from the Anoka County HRA for "Make Heights Your Home" down payment assistance program and administration thereof. RESOLUTION N0.2009-64 RESOLUTION PROVIDING CONTINUATION OF FINANCIAL REIMBURSEMENT FOR THE SUMP PUMP DISCONNECT PROGRAM WHEREAS, the City has adopted Ordinance 1472 which prohibits surface drainage connections and discharges into the City of Columbia Heights Sanitary Sewer System and, WHEREAS, the City has offered financial assistance in the form of a $500 reimbursement as an incentive to provide the necessary repair to illegal sump pump disconnects and, WHEREAS, fora 5-year period beginning in 2007, Columbia Heights will have an annual $85,000 I/I Surcharge as a result of annual peak exceedance events and, WHEREA5, such a financial incentive has been determined to be in the best interest of the City of Columbia Heights, NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Columbia Heights that financial reimbursement for the sump pump disconnect program be extended through December 31, 2012 and is hereby approved and. adopted. ORDINANCE 1565 BEING AN ORDINANCE PERTAINING TO ZONING AND DEVELOPMENT ORDINANCE NO. 1428, PERTAINING TO THE REZONING OF A CERTAIN PROPERTY LOCATED AT 4337 UNIVERSITY AVENUE NE SE('TION t WHEREAS, the current zoning classification of the property does not allow asingle-family use as a permitted used; and WHEREAS, the historic use of the property has been single-family occupancy, which caused the use to be legally nonconforming under the current zoning classification; and WHEREAS, the previous single-family use was discontinued for more than. one year, causing the legal nonconforming status to terminate. WHEREAS, rezoning the subject parcel from LB, Limited Business to R-ZA, One and Two Family Residential provides the re-occupancy of the subject parcel to its historic use; and WHEREAS, the rezoning is consistent with the City Comprehensive Plan, and is in the public interest and not solely for the benefit of a single property owner; and WHEREAS, the proposed zoning classification of the property is compatible with the surrounding zoning classifications and uses, and BE IT FI;RTIIE~R RESOI.lrEI2 that the Planning Commission has reviewed and. recommends approval of the proposed rezoning from LB, Limr'ted Business District to R-2A, One and Two Family Residential. 13 City Council Minutes Tuesday, May 26, 2009 Page 10 of 12 SECTION 2: This ordinance shall be in full farce and effect from and after 30 days after its passage. RESOLUTION 2009-70 Resolution of the City Council for the City of Columbia Heights approving revocation pursuant to City Code, Chapter SA, Article 1V, Section SA.408(A) of that certain residential rental license held by Marietta Bornholdt (Hereinafter "License Holder"). Whereas, license holder is the legal owner of the real property located at 4207-09 2°d 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 May 5, 2009 of an public hearing to be held on May 26, 2009. 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 L That on or about April 15, 2009, 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 May 5, 2009 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: Failure to submit renewal rental Iicense application and fees 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 F8931 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. RESOLUTION 2009-7I RPCnlnt_inn of the City ('ni~ncil fpr the City of C'nhimhia NPiahtc approving reyn~ation pi~rsttant to ('ity Code; Chapter SA; Article IV, Section SA.408(A) of that certain residential rental license held by Petrona Lee (Hereinafter "License Holder"). Whereas, license holder is the legal owner of the real property located at 960 43-1/2 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 May 5, 2009 of an public hearing to be held on May 26, 2009. 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 l . That on ar about April 1~, 2009, 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 May 5, 2009 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 Offce, the following conditions and violatians of the City's Residential Maintenance Cade were found to exist, to-wit: Failure to submit renewal rental license application 14 City Council Minutes Tuesday, May 26, 2009 Page 11 of 12 and fees 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 Crty Code, Chapter SA, Article III SA.306 and SA303(A). ORDER OF COUNCIL 1. The rental license belonging to the License Holder described herein. and identified by license number F8987 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 posting of this Order revoking the license as held by License Holder. RESOLUTION NO. 2009-67 BEING A RESOLUTION ESTABLISHING FIRE DEPARTMENT SERVICE CHARGES FEES WHEREAS, Chapter 8 Article IV of City Code, pertaining to Fire Department service charges provides for establishing fees. THEREFORE, BE IT RESOLVED, that the Fire Department Service Charges fee structure listed below shall he adopted and effective June 10, 2009. En ine Crew of 5 $400 er hour Ladder Truck Crew of 6 $500 er hour Heav Rescue Truck Crew of 4 $300 er hour Rescue Truck Crew of 3 $100 er hour Fire Fi hter One Current hour] rate Fire Officer One Current hour] rate Ambulance Crew of 3 $400 er hour EMERGENCY ORDINANCE NO. 1566 AN INTERIM ORDINANCE FOR THE PURPOSE OF PROTECTING THE PLANNING PROCESS AND THE HEALTH, SAFETY, AND WELFARE OF CITY RESIDENTS; AND REGULATING SMOKE SHOPS IN ALL COMMERCIAL DISTRICTS The City of Columbia Heights does ordain: Section 1: On May 29, 2001, the City of Columbia Heights adopted Ordinance 1428, which is an ordinance relating to and establishing a Zoning and Development plan and revised Zoning Map for the City of Columbia Heights; and, Section 2: Ordinance 1428 and subsequent amendments is officially known as the Columbia Heights Zoning and Development Ordinance; and, Certinn 3e The C'ni~imhia Heights Zoning and Development Ordinance divides the ('ity into five commercial districts, three business districts, and two industrial districts, one mixed development district; and, Section 4: The three commercial districts are further classified in the Columbia Heights Zoning and Development Ordinance as LB, Limited Business District, GB, General Business District, and CBD, Central Business District; and, Section 5: To date, the City of Columbia Heights has three licensed smoke shops, one pending application, and three other applications for a smoke shop distributed but not yet formally applied for. This equals a potential of seven smoke shops in the City of Columbia Heights' commercial corridor, with the possibility of additional stores based on existing vacancies; and, Section 6: The City Council determines it is necessary to undertake a land use study to determine the impact of a high concentration of smoke shops on the economic vitality of the city, including specifically defining what a smoke shop is, where the smoke shops may be located throughout the City, how close smoke shops uses may be from one another, and whether licensing requirements should he altered specifically for smoke shops; and, Section 7: The Columbia Heights City Council finds it necessary and appropriate to prohibit the expansion of existing smoke shops and the introduction of new smoke shops within the City, while the information is gathered regarding smoke shops so as to obtain an ace irate depiction ofthe effects such uses have in Columbia i-Ieights; and, 15 City Council Minutes Tuesday, May 26, 2009 Page 12 of 12 Section S: Minnesota Statues, Section 462.355, Subd. 4 allows the City of Columbia Heights to adopt this Interim Ordinance to protect the planning process. The City Council finds that adaption of this Interim Ordinance will protect the planning process and the health, safety and welfare of its citizens while the study provided for in this Ordinance is being conducted; and, Section 9: The Columbia Heights City Council hereby imposes a moratorium on smoke shops in the LB, Limited Business District, GB, General Business District, and CBD, Central Business District effective immediately for the duration of six months, terminating on November 26, 2009, and recognizing said time period may be shortened by an ordinance adopted by the City Council. Section 10: Activities affected by this moratorium include the establishment of smoke shops and the expansion of existing smoke shops within the LB, GB and CBD Commercial Districts in the City of Columbia Heights far the purpose of protecting the planning process pending completion. Section 11: This Ordinance shall he in full force and effect immediately. 16 ECONOMIC DEVELOPMENT AUTHORITY (EDA) MINUTES OF THE REGULAR MEETING April 28, 2009 The meeting was called to order at 7:00 pm by President-Gary Peterson. Members Present: Gary Peterson, Bruce Nawrocki, Marlaine Szurek, Gerry Herringer, Tammera Diehm, Bobby Williams, and Bruce Kelzenberg. Staff Present: Walt Fehst, Scott Clark, Sheila Cartney, and Shelley Hanson. 2. PLEDGE OF ALLEGIANCE- RECITED 3. CONSENT AGENDA Approve the Minutes of March 24, 2009 Motion by Szurek, seconded by Nawrocki, to approve the Minutes of March 24, 2009 as presented. All ayes. MOTION PASSED 2. Approve the Financial Repart and Payment of Bills for March per Resolution 2009-1 l-TABLED UNTIL THE MAY MEETING Clark explained the report is being re-formatted to delete accounts that are no longer valid which will condense the size of the report and make it more understandable. Therefore, the reports will be submitted at the next meeting for review. BUSINESS ITEMS 4. Adopt Resolution 2009-12 Approving Contract Amendment for 37th and Central Avenue Sheila Cartney explained the private developer, Chris Little, is requesting an amendment to the Development Agreement for the 37th and Central Avenue project that would grant him cone-year extension to begin construction. Little explained that finding tenants has been a difficult process due to the economic slow down, and he doesn't want to start construction until 60% of the lease space is committed. rie stated he would rather wait for tenants that would benefit both the City and the development itself. Nawrocki stated that the City put a lot of money into buying up properties for a portion of this development and it is not generating any tax dollars sitting empty. He said maybe the City should look at marketing it to someone else. Clark explained that both the city's piece and the developer's piece is too small to develop independently. The properties need to be combined together to make a marketable site. I-Ierrin6er clarified that PJIr. Little is paying taxes on the portion he owns, so the overall impact on the tax revenue is minimal at best. Diehm stated she was willing to wait Longer in order to get a better mix of tenants. The overall consensus was to grant the extension in hopes of obtaining the types of businesses that were discussed when the project was first approved. Motion by Kelzenberg, seconded by 1-lerringer, to waive the reading of Resolution 2009-12 there being ample copies available. All ayes. MOTION PASSED. Motion by Kelzenberg, seconded by Szurek to adopt Resolution 2009-12 aanending the development contract between 37th and Central LLC, and the EDA dated June 24, 2008, changing commencement and completion dates. All Ayes. MOTION PASSED. 17 Economic Development Authority Minutes Page 2 Apri128, 2009 RESOLUTION N0.2009-12 RESOLUTION APPROVING A FIRST AMENDMENT TO CONTRACT FOR PRIVATE REDEVELOPMENT BETWEEN THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY AND 3T'' AND CENTRAL LLC BE IT RESOLVED By the Board of Commissioners ("Board") of the Columbia Heights Economic Development Authority ("Authority"} as follows: Section ? . Recitals. 1.01. The Authority and 37th and Central LLC (the "Redeveloper") entered into a Contract for Private Redevelopment dated June 24, 2008 (the "Contract"}, setting forth the teens and conditions of redevelopment of certain property within the Redevelopment Project, generally located west of Central Avenue at 37~' Street. 1.02. The parties have determined a need to amend the Contract to facilitate the leasing of the Minimum Improvements by granting an extension to the Redeveloper for the commencement of construction to May 1, 2010 and completion of construction to January 1, 2011. 1.03. The Board has reviewed a First Amendment to the Contract and finds that the execution thereof and performance of the Authority's obligations thereunder are in the hest interest of the City and its residents. Section 2. Authorit~pproval: Further Proceedings. 2.01. The First Amendment to the Contract as presented to the Board is hereby in all respects approved, subject to modifications that do not alter the substance of the transaction and that are approved by the President and Executive Director, provided that execution of the documents by such officials shall be conclusive evidence of approval. 2.02. The President and Executive Director are hereby authorized to execute on behalf of the Authority the First Amendment to the Contract and any documents referenced therein requiring execution by the Authority, and to carry out, on behalf of the Authority its obligations thereunder. 2009 Approved by the Board of Commissioners of the Columbia Heights Economic Development Authority this 28th day of April, 5. TIF-Scattered Site Housing District Clark explained that if the Board decides to create a Scattered Site TIF District to acquire and demolish blighted properties that are now for sale within the foreclosure market, financing needs to be established to fund the purchases. He went on to state that $998,020 of unobligated tax increment revenue can be generated from the existing C8 TIF District that would include the fund balance plus increment receipts in 2009 and 2010. This district will be de-certified in 2010. Based on this revenue amount, it is projected that 15 to I8 homes could be purchased and demolished.. Eventually these lots would be resold which would recover approximately 70% to 80% of the original acquisition price and the tax increment would. provide enough revenue to return the original purchase and demolition costs. Clark stated we have recently purchased homes for between $19,900 and $399900. These properties used to have mortgages on there of $140,000. By purchasing and. demolishing them ~nr fi.t„rA rA_rl a~~nlnnm aalt cx~F* iziill rt>critoli-~P nPi n-h t~anrt~nn~tc o»r-1 Pnrnaara era nt}iarc to 1<r an iiv~ their iva ..~.,.u....., ...e.....,.,p.~a..~~.~, .>..~ ....~ ~,.. ~...~...~.... ~..,~b.,~.....~.,~,.~.,.., .,..E....,............,.bt...d..~...~ ~., ......p. ....i., ....~... properties if they see overall improvements tieing made in the neighborhood. He suggested working with several builders in the future to get a variety of house styles, rather than limiting ourselves to one, or to a particular non-profit. Two steps would be required to make this possible. In order to release the existing C8 fund balance a TIF district modification would be needed to allow pooling and a new Scattered Site TIF District would need to be established to gain additional revenue. The City can start ~s Economic Development Authority Minutes Page 3 Apri128, 2009 purchasing homes prior to the creation of the C8 modification as long as either an inter-fund loan agreement is made between the City and the EDA, and that any home bought and demolished is memorialized by resolution. In addition to the C8 district funds, the A3/C7 district will be decertified this year with approximately $110,000 of redistributed funds that will be returned to the City. The Board needs to decide whether to also include these funds into the Scattered. Site Program. Clark reviewed the criteria that would be followed when purchasing homes far purchase/demolition. He stated that all homes that could be renovated would be forwarded on to Anoka County for consideration as part of the NSP program. Nawrocki. expressed his opposition. to creating such a district and using the money from the C8 or A3/C7 districts in this capacity. He felt the taxpayers would be negatively impacted. Motion by Szurek, seconded by Vt~'illiams to direct staff to implement all necessary processes to create a Scattered Site I-lousing District including the use of all remaining TIF District C8 funds (fund balance and revenue derived until the end of the District 1112010) as a revenue source and the immediate acquisition of properties per the policies as stated in the report dated Apri124, 2009. Kelzenberg, Diehm, Szurek, Iierringer, Williams, Peterson-Aye; Nawrocki-Nay MOTION PASSED. The Board will hold off making a decision about the A3/C7 District fund balance for now. 6. Adopt Resolution 2009-13, Approving Inter-Fund Loan to Purchase 4502 Washington St. Staff had the opportunity to purchase 4502 Washington Street as part of the Scattered Site TIF District Program that is being considered by the Board to purchase and demolish sub-standard properties that become available in the foreclosure process. The purchase price of the property is $35,000, plus closing costs. Since the Scattered Site TIF District is not yet established, the City's Capital lrnprovement Fund (420) would be the up front source of funding for the purchase of this property. The inter-fund loan would. grant the EDA the ability to repay the City, at a future time with tax increment funds, for the purchase. The inter-fund loan is necessary to qualify this purchase as a future tax increment obligation of the new district if approved by both the EDA and the City Council. Nawrocki expressed his opposition to this since it is committing C8 funds to reimburse the City's Capital Improvement Fund for the purchase. Motion by Szurek, seconded by Williams to waive the reading of Resolution 2009-13, there being ample copies available to the public. All ayes. MOTION PASSED, R/~ntinrx h<r C-ai~rP~r carnnr~Prl Hser t1~li~liamc to dr3nr~t Racnl~atinn '}lli(14_12 o Rr cn~iatinn /~~ranrnarin(a ~...,..+~.. ~,~y vG.uavam, ~.,,..<,~,....J... ~,' ,..~,.~..,,., .~. ~ >...,t,, ~<.J~~,,.,.V.u,~ ~.~.~,. a.~, L. a~.,.,~,....,..,~ , xrr..,..,.b the terms of Inter-ford Loan in connection with a future Scattered Site TIF District to purchase 4502 Washington Street. Kelzenberg, Diehm, Szurek, Ilerringer, Williams, Peterson-Aye; Nawrocki-Nay MOTION PASSED. I~esalutian 2009-1~ RESOLUTION APPROVING AND SPECIFYING 19 Economic Development Authority Minutes Page 4 April 28, 2009 TERMS OF INTER-FUND LOAN FOR ACQUISITION OF 4502 WASHINGTON ST. NE RECITALS A. The City of Columbia Heights. ("City") and its Economic Development Authority ("Authority"') have undertaken a program to promote the development and redevelopment of land which is underutilized within the City, and in this colmection the Authority administers the Redevelopment Project No. 1 ("Project") pursuant to Mim~esota Statutes, Sections 469.001 to 469.047 anal Sections 469.090 to 469. ].081 (the "Act"). B. Pursuant to the Act; the Authority is authorized to acquire real property far development and redevelopment by private enterprise or public use. C. The Authority proposes to acquire certain property in the Project located at 4502 Washington St. NE (the "Property)." D. The Authority and City may establish ascattered-site tax increment financing district ("TIF District") under Minnesota Statutes, Sections 469.174 to 469.176 (the "TIF Act") that includes the Property in order to facilitate development of that property; or the Authority and City may develop the property for various public uses. E. Under Section 469.1.78, Subdivision 7 of the TIF Act, the City is authorized to advance or loan money from any fund from. which such advances may be legally made in order to finance expenditures that are eligible to be paid with tax increments under the TIF Act. F. The City has determined that it is in the best interests of the City to loan funds to the EDA in order to acquire the Property, which loan may be reapaid from tax increments or other sources, all as further described in this resolution. G. By a resolution approved April 27, 2009 (the "Loan Resolution"), the City Council authorized a bail from the City to the Authority in the maximum principal amount of $35,000 plus actual closing costs on acquisition of the Property and the actual cost of demolition (the "Loan"). NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Columbia Heights Economic Development Authority as follows: I. The Authority accepts and approves the Laan from the City to the Authority as described in the Loan Resolution, and approves all terms of the Loan Resolution. 2. The Board authorizes and directs staff to take all actions and execute any collateral documents necessary to carry out the intent of this resolution. Approved by the Board of Commissioners of the Columbia Heights Economic Development Authority this 28`x' day of April, 2009. 6a. Adopt Resolution 2009-15, Approving Inter-fund Loan to Purchase 4108 7`" St. Staff had the opportunity to purchase 4108 7t~' Street as part of the Scattered Site TIF District Program that is being considered by the Board to purchase and demolish sub-standard properties that become available in the foreclosure process. The purchase price of the property is $19,900, plus closing costs. Since the Scattered Site TIF District is not _yet established, the City's Capital Improvement Fund (420) would. be the up front source of funding for the purchase of this property. The inter-fund loan would grant the EDA the ability to repay the City, at a future time with tax increment funds, for the purchase. The inter-fund loan is necessary to qualify this purchase as a future tax increment obligation of the new district if approved by both the EDA and the City Council. I~tawracki expressed his opposition to this since it is committing C8 funds to reimburse the City's Capital Improvement Fund for the purchase. zo Economic Development Authority Minutes Page 5 April 28, 2009 Motion by Diehm, seconded by Kelzenberg to waive the reading of Resolution 2009-I5, there being ample copies available to the public. All ayes. MOTION PASSED. Motion by Diehm, seconded by Kelzenberg to Adopt Resolution 2009-15, a Resolution Approving the terms of Inter-fund Loan in connection with a future Scattered Site TIF District to purchase 4108 7t" St. Kelzenberg, Diehm, Szurek, Herringer, Williams, Peterson-Aye; Nawrocki-Nay MOTION PASSED RESOLUTION 2009-15 RESOLUTION APPROVING AND SPECIFYING TERMS OF INTER-FUND LOAN FOR ACQUISITION OF 4108 7`I' ST. NE RECITALS A. The City of Columbia Heights. ("City"} and its Economic Development Authority ("Authority") have undertaken a program to promote the development and redevelopment of land which is underutilized within the City, and in this connection the Authority admuiisters the Redevelopment Project No. I ("Project"} pursuant to Mimiesota Statutes, Sections 469.001 to 469.047 and Sections 469.090 to 469.1081 (the "Act"). B. Pursuant to the Act, the Authority is authorized to acquire real property for development and redevelopment by private enterprise or public use. C. The Authority proposes to acquire certain property in the Project located at 4108 7th St. NE (the "Property)." D. The Authority and City may establish ascattered-site tax increment financing district ("TIF District") under Minnesota Statutes, Sections 469.174 to 469.176 (the "TIF Act") that includes the Property in order to facilitate development of that property; or the Authority and City may develop the property for various public uses. E. Under Section 469.178, Subdivision 7 of the TIF Act, the City is authorized to advance or loan money from any fund frown ::Jhich such advances may be legally made in order to finance expenditures that are eligible to be paid with tax increments under the TIF Act. F. The City has determined that it is in the best interests of the City to loan funds to the ED.4 in order to acquire the Property, which loan may be reapaid from tax increments or other sources, ail. as further described in this resolution. G. By a resolution approved April 27, 2009 (the "Loan Resolution''}, the City Council authorized a loan from the City to the Authority in the maximum principal amount of $19,900 plus actual closing costs on acquisition of the Property and the actual cost of demolition (the "Loan''). NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Columbia Heights Economic Development Authority as follows: t TT, ,. A ,.+7.,.«:+, ..+~ ,, .-1 +T.,,, T ~ .. +1~,, (':+.~ +r, +T.~, A .,+11 ri+.~ rl~ +•:hafl in tl~c~ T non t. ittd. riuutvti~y' aC%%~~a aitu apprv`v'i.S «~v Loa~~ ~~um ~.~,, v~~y ~v ~.,.. <.u~a~a~~~x as u~..,,,..,,.,,+ ..~ ..~., a,~ua. Resolution, and approves all terTns of the Loan Resolution. 2. The Board authorizes and directs staff to take all actions and execute any coltateT°al documents necessary to carry out the intent of this resolution. Approved by the Board of Commissioners of the Columbia Heights Economic Development Authority this 28`h day of April, 2009. 21 Economic Development Authority Minutes Page 6 Apri128, 2009 7. Make Heights Your Home-Pilot Program Approval Cartney reviewed the down payment assistance program for the purchase of foreclosed homes that are purchased using a 203K loan (which guarantees rehabilitation for that property}. The funding for this program will be from the 2009 Fiscal Year Anoka County Levy. Staff plans to administer the program and 2009 will be the test year to see if this program can be a success for the City. She explained that if GMHC administers the program, there would be a $500 per loan transaction charge. City staff will charge an administrative fee of $250 per transaction out of the Anoka County Levy Funds. The Loan provides zero percent interest loan of 3.5% of the acquisition cost (purchase price plus rehab costs) up to $6,000 to be used for down payment assistance with an FHA 203K Purchase/Rehab Loan. Cartney reviewed the teens of the program and reminded members that this program is for properties that will be owner occupied. She stated she has had several calls from realtors asking if we had. a program in place that would provide this type of incentive/ assistance. Herringer would like to see the language for Tcrm #F clarified regarding repayment of the loan for a borrower Living at the property less than 10 years. Staff is counting on using $180,000 of the Anoka County Levy monies for this Pilot Program. Nawrocki thought the $180,000 should. be used to purchase the sub-standard homes so the TIF monies would not have to be used. Clark explained this program is an additional program aimed at different properties than the "purchase & demolish'' program. This program is aimed at homes that can be renovated and encourages owners to live in the property for at least 10 years to help stabilize neighborhoods. Motion by Diehm, seconded by Szurek, to approve Make Heights Your Home down payment assistance program as presented in this staff report and direct staff to enter into necessary agreements wit_h_ Anoka County for use of the 2009 Fiscal Year County I-IRA T evy Funds: Kelzenberg, Diehrn, Szurek, I-Ierringer, Williams, Peterson-Aye; Nawrocki-Nay MQTI4N PASSED 8. Adopt Resolution 2009-14, Approving Modification to the TIF Plan for Kmart/Central Avenue TIF District Clark told members that in order to modify the Kmart/Central Avenue Tax Increment Financing District the EDA must approve a Resolution. and then a public hearing must be held and the City Council would also need to pass a similar Resolution. The modified plan would not add new increment to the plan. It is not amending the budget of the district, but rather, a geographical amendment that is needed to allow future expenditures in the Sheffield neighborhood. The key element is the use of unobligated tax increment from the original district as a revenue source for -a~n<,oa,,,..,,a„+ ;., ~t,a ua,-;,~„o uo;,,t,,~i~t,o~r;A~a „ „~~.,,,.h,.,,,~ rr~,o „ ,~-.~.o,. ,.,~h„x,-,A~ ;,,,.t,,,ao~i ;,, a t, tad.va.avYaaaa.aaa ua uac.. >_aa..aacu~,c,. ait.arvaawi vaa~.aaaarau aaei~,aavvcaavvu. xaaa. aauaaav~,,.a vi aavaaac..> aaaa.auuo.u aaa. the area is 55 parcels. Clark stated by expanding the district, the hope is to buy up some of the properties and redevelop them with. single family homes to further re-vitalize the area, which could facilitate the remaining development of the KMart site. The Plan acknowledges the City may be a beneficiary of a State law change that would extend the ``five-year rule" to a "ten-year rule". The net effect is that the 5-year rule would only allow the City to use unobligated. tax increment from the existing Phase 1 condo project (assuming that a bond, 22 Economic Development Authority Minutes Page 7 April 28, 2009 which is in process before the City Council, is in place by July 23, 2009) in the new geographic area for redevelopment purposes. The 10-year rule would. allow future unobligated tax increment review (primarily from condo phase II and phase III) from the original project to be used in the new area, again for redevelopment purposes. The City/EDA anticipates the sale of taxable GO tax increment bond in the amount of $930,000 to be sold and available by early summer of this year. Motion by Szurek, seconded by Diehm to waive the reading of Resolution 2009-14 there being ample copies available. All ayes. MOTION PASSED. Motion by Szurek, seconded by Diehm to Adopt Resolution 2009-14, a Resolution Adopting a Modification to the Downtown Central Business District (CBD) Revitalization Plan for the CBD Redevelopment Project and a Modification to the Tax Increment Financing Plan for the Kmart/Central Avenue Tax Increment Financing District. Kelzenberg, Diehm, Szurek, Herringer, Williams, Peterson-Aye; Nawrocki-Nay MOTION PASSED I2ESOLiiTI4N NCI, 2(109-14 RESOLUTION ADOPTING A MODIFICATION TO THE DOWNTOWN CENTRAL BUSINESS DISTRICT (CBD) REVITALIZATION PLAN FOR THE CBD REDEVELOPMENT PROJECT AND A MODIFICATION TO THE TAX INCREMENT FINANCING PLAN FOR THE K-MART/CENTRAL AVENUE TAX INCREMENT FINANCING DISTRICT. WHEREAS, it has been proposed by the Board of Commissioners ("Board"} of the Columbia Heights Economic Development Authority ("EDA"} and the City of Columbia Heights ("City") that the EDA adopt a Modification to the Downtown CBD Revitalization Plan for the CBD Redevelopment Project (the "Revitalization Plan Modification") and a Modification to the Tax Increment Financing Plan (the "TIF Plan Modification") for the K-Mart/Central Avenue Tax Increment Financing District ("TIF District"} therein (the Revitalization Plan Modification and the TIF Plan Modification are referred to collectively herein as the "Modifications"}, all pursuant to and in conformity with applicable law, including Minnesota Statutes, Sections 469.090 to 469.1082, and Sections 469.174 to 469.1799, inclusive, as amended (the "Act"}, all as reflected in the Modifications and presented for the Board°s consideration; and WHEREAS, the EDA has investigated the facts relating to the Modifications and has caused the Modifications to be prepared; and WHEREAS, the EDA has performed all actions required by law to be performed prior to the adoption of the iVIUUnICaiIOrIS. IIiC LDA f12t5 a1SU I~C(.IUCStCd tilC C.Ity Plailtlli[g CUiIIli I1S5[o71 tL3 YrV Vlde lol levlew l3f a1ld wiiltelt l.otitrtJ eiti Vrt Modifications and that the City Council schedule a public hearing on the Modifications upon published notice as required by law. NOW, THEREFORE, BE IT RESOLVED by the Board as follows: 1. The EDA hereby finds that the Modifications, are intended and, in the judgment of this Board, the effect of such actions will be, to provide an impetus for development in the public purposes and accomplish certain objectives as specified in the Modifications, which are hereby incorporated herein. 2. The EDA hereby finds that parcels listed in Appendix C of the TIF Plan Modification should be included in the TIF District, and adjacent streets and right-of ~A~ay property; tliereb;J changing the geographic shape of the TIF District. 3. The EDA hereby Ends that the area being added to the TIF District as part of the proposed Modifications meets the requirements fora "renewal and renovation district" under Minnesota Statutes, Section 469.174, Subd. 10a, and Ends that the arlpntic~n cif the nr~nnsed Mr3dificati~ns conforms in all respects to the requirements of the Act and will help fulfill a need to develop an area of the State of Minnesota which is already built up and that the adoption of the proposed Modifications will help provide public improvements, revitalize an area characterized by blight and occupied by substandard buildings, and expand the tax base of the City, and thereby serves a public purpose. 4. The EDA hereby reaffirms the original findings for the TIF District, established as a "renewal and renovation district". 5. The EDA further finds that the Modifications will afford maximum opportunity, consistent with the sound needs for the City as a whole, for the development or redeveloprment of the CBD Redeveloplmerlt Project by private enterprise in that the intent is to provide only that public assistance necessary to make the private developments financially feasible, 6. The boundaries of the CBD Redevelopment Project are not being expanded. 23 Economic Development Authority Minutes Page 8 April 28, 2009 7. The reasons and facts supporting the findings in this resolution are described in the TIF Plan Modification and in the exhibit attached to the City resolution approving the Modifications, on file in City Hall. 8. Conditioned upon the approval thereof by the City Council following its public hearing thereon, the Modifications, as presented to the EDA on this date, are hereby approved, established and adopted and shall be placed on file in the office of the Community Development Director. 9. Upon approval of the Modifications by the City Council, the staff, the EDA's advisors and legal counsel are authorized and directed to proceed with the implementation of the Modifications and for this purpose to negotiate, draft, prepare and present to this Board for its consideration. all. further plans, resolutions, documents and contracts necessary for this purpose. Approval of the Modifications does not constitute approval of any project or a Development Agreement with any developer. l~_ Upon approval of the Modifications by the City Council, the Community Development Director is authorized and directed to forward a copy of the Modifications to the Minnesota Department of Revenue and the Office of the State Auditor pursuant to Minnesota Statutes 469.175, Subd. 4a. 11. Upon approval of the Modifications by the City Council, the Community Development Director is authorized and directed to forward a copy of the Modifications to the Anoka County Auditor and request that the Auditor certify the original tax capacity of the parcels being added to the TIF District, as described in the T1F Plan Modification, all in accordance with Minnesota Statutes 469.177. 9. Heights Housing Protection Program Discussion (property inspection) Clark explained that the Heights Housing Protection Program is basically a re-named RIBS program that was considered last year, with a few modifications. Due to the vast number of foreclosures in the city (363 active foreclosures/517 in the last 28 months}, coupled with conditions of the properties that are being evidenced from staff, it is recommended the Council consider implementing this type of program to help stabilize our housing and neighborhoods. The name change is intended to reflect the purpose of the inspection program, which is to ensure houses meet minimum standards (which protect the new homeowner), but also to protect neighborhoods, Clark stated it is hoped that this will help neighborhoods gain back confidence that would result in owners re-investing in their properties. He said it may be advantageous to try the program with a 3 year sunset clause and to re-evaluate it after the market conditions improve. Clark suggested. that members of the Council, EDA, and Planning & Zoning Commissions tour some vacant properties to gain an understanding of how the program would work and the types of repairs that would be needed. This would help Council. answer questions that may arise during the Public Hearings that e,-vil1 be held. Members had questions regarding the inspection checklist and thought some of the items were ambiguous. Clark explained the checklist used. is one that has been used far many years far rental licensing that is based on the Property Maintenance Cade adopted by the City. Diehm asked that we obtain copies of the checklist from Minneapolis and St. Paul. Cartney said she would get the copies, but explained they have a truth and housing inspection report and that corrections are not mandatory for these two cities. Nawrocki wants informational meetings held to explain the program for the residents of the city, not just the realtors this time. He hopes that would help clarify inconsistencies and incorrect information that caused the program's failure to pass last year. Members reviewed the Scl~edulelProcess that was enclosed in the agenda packets. Several suggestions were made. *I`~lawrocki wanted to see the lit and 2°~ readings removed from the schedule as this gives the impression it is already "decided". *Szurek suggested inviting Jim l~ordiak on the tour so he can see first hand the condition of some of the housing stock trying to be re-sold. 24 Economic Development Authority Minutes Page 9 April 28, 2009 *Diehm stated the tour will have to be posted as an official meeting with the addresses of each property listed. Motion by Szurek, seconded by Williams to continue exploring ``Heights Housing Protection Program" and establishing May 27, 2009 for a tour of various properties with the regular EDA meeting to follow afterwards. All Ayes. MOTION PASSED. 10. Administrative Report a. TIF Extension Update Clark explained the Senate has one version on the floor that would be of no help to Columbia Heights. The House has one version that would be of minimal help. There were a large number of cities that were asking for the same thing. Tt is now up to the Legislature to make their decision. It could have an affect on the use of monies from Phase 2 & 3 of the Krnart site. 6 47tH and Central Update RJPdI has been assisting the developer and they are trying to bring the project together. Clark explained they need to get at least two major tenants to commit to the project for it to begin. Buffalo Wild Wings may be interested, but Aldi's is looking at other sites since the project has stalled for so long. He thought something will be decided one way or the other within the next two weeks. If the project is not constructed and the ramp not built by year end, the Met Council will pull the grant money and most likely use it for their transportation budget shortfall. c. Conceptual RAP plan for the Burger King Site Clark reported that we have contracted to work with Pro Source for a Conceptual RAP Plan to be done. This includes taking the Phase 2 information to the MPCA and getting an agreement from them on what remediation would be required before developing the site. This would allow the City to move forward with limited amendments or modifications once the market improves. The cost to have Pro Source do this RAP Plan is approximately $4000. Staff needs to check on language concerning $50,000 commitment from previous owner for soil correction work. d. Huset Park Townhome Association Declarations As part of the original development agreement a 5% cap of rental units allowed was agreed to. When the Association Declarations were established they had language that limited the right of an owner to rent a unit to a one time rental. Once a renter moved out, the unit couldn't be rented again. This was not something the City required, it was the way their declaration was drawn up. They want to amend their documents to remove that stipulation, to still keep the 5% limit, and to add a provision that a unit must be lived in for two years before the owner could decide to rent it out. The EDA consensus was that the aforementioned provisions met ~kn ..,.: .>:,., ,,1 :.n #-...+4 .. ~'+L. <:< A.r.«~. <.w....re4 Tl. <+,-n~ .-m. ~1-n~~<a ~:~~ ~rre ~^e.~om pn+ nn<~ »r nc<ccnre~ L11L VA1L`', 111Q.1 dd ltl.~llt Vl ld1V l1~10..4y1110i11 t. 1111+11.AVA6., JtUtl VY lAt tdddl.ll Ldddc.Yt6 utl J' dis+vt+JJUd~ modifications administratively. e. Anoka County bevy Staff will prepare a letter to open a discussion with Anoka County to establish. how the Levy money will be disbursed and what affect it `vi11 have on the amount we receive. We are in a eve year agreement with Anoka County and it is possible the allotment of monies may be changed. Staff needs to get a commitment from Anoka County on these funds. 25 Economic Development Authority Minutes Page 10 April 28, 2009 The meeting was adjourned at 9:00 pm. Respectfully submitted, Shelley Hanson. Secretary 26 This page left blank intentionally. 27 PLANNING AND ZONING COMMISSION MINUTES OF THE REGULAR MEETING JUNE 2, 2009 7:00 PM The meeting was called to order at 7:00 pm by Chair-Marlaine Szurek. Commission Members present- Thompson, Fiorendino, Schmitt, Szurek and Peterson Also present were Jeff Sargent (City Planner} and Shelley Hanson (Secretary). Motion by Thompson, seconded by Fiorendino, to approve the minutes from the meeting of May 5, 2009. All ayes. MOTION PASSED. Szurek also gave an update on the Informal meeting of May 27, 2009 that was held with members of the EDA. There wasp 't a quorum of P c~ Z members, so it didn't constitute a formal meeting. PUBLIC HEARINGS CASE NUMBER: zoos-0501 APPLICANT: Renaissance Fireworks LOCATION: 4005 Central Avenue REQUEST: Interim Use Permit for Seasonal Sales INTRODUCTION Renaissance Fireworks, Inc. has applied for an Interim Use Permit to allow the operation of a fireworks tent at 4005 Central Avenue. The City of Columbia Heights has recently amended the ordinance regarding outdoor seasonal sales in all zoning districts, and now requires an Interim Use Permit. The specific development standards for an outdoor sales/display establishment are found at Section 9.107 (C}{20), and wilt be added as conditions of approval. for this permit. This will be the Renaissance's 5th year operating a fireworks tent at this location in Columbia Heights. The attached site plan illustrates the configuration and orientation of the fireworks tent to Central Avenue. The Fire Chief has inspected the plans and will conduct a site fnspection of the tent prior to the business opening for operation. COMPREHENSIVE PLAN The Comprehensive Plan designates the properly for commercial use, including retail sales, offices and service businesses. The proposal is consistent with the intent of the City's Comprehensive Plan. ZONING ORDINANCE The zoning classification for this property located at 4005 Central Avenue is CBD, Central Business District. Fireworks tents are allowed as Interim Uses in this zoning district, Fvictincx narltintr axr~a~rlc ~nni»cs ranttiramantc Cartinn Q 1 (1F. (T l/i (}l of tTra 7nninrz (lrrlinon~a r~niiirnc tl,~t ~.._..,...r, r~...~ .b .,.,.,,,..., ~.,....b ,.y. ..................~v.,....,.. ~.~,,., `~,~~~ ~~ .,. ,.,.v u.,.., .5 a..~.~u.a.,., a~yu«.u «.u~ commercial uses provide 1 parking space for each 300 square feet of use. Therefore, the existing 87,500- square foot commercial building is required to have 263 parking spaces. After using the 13 parking spaces far the tent, the site will still have 282 parking spaces. Furthermore, with the location of the display area on the opposite side of the parking lot as the stare entrances, the operation should not have any effect on vehicular access for the site. 28 PLANNING & ZONING COMMISSION MINUTES PAGE 2 JUNE 2, 2009 FINDINGS OF FACT Section 9.104 (H} of the Zoning Ordinance outlines seven findings of fact that must be met in order for the City to grant an interim use permit. Sargent reviewed the findings with the Commission as follows: L The use is one of the interim uses listed for the zoning district in which the property is located, or is a substantially similar use, as determined by the Zaning Administrator. Fireworks tents ar^e air Inte~•im Use in the CBD, Centf-al Business District, and af~e considered retail sales, which are permitted. 2. The use is in harmony with the general purpose and intent of the Comprehensive Plan. The Comprehensive Plan designates the property for commercial use, including retail sales, offices and service businesses. The proposal is consistent with the intent of the City's Comprehensive Plan. 3. The use will not impose hazards or disturbing influences on neighboring properties. Therefore, the proposed temporary use should not have any detrimental impact on neighboring properties because of its proximity to Central Avenue and it is shielded from an adjacent residential use. 4. The use will not substantially diminish the use of property in the immediate vicinity. The, fireworks tent as proposed will have no impact on the use of adjacent properties. 5. The use will be designed, constructed, operated and maintained in a manner that is compatible with the appearance of the existing or intended character of the surrounding area. The fire department will conduct an on-site survey prior to the business opening. All state requirements regarding fireworks sales will be complied with before the fire department will allow the operation of the business. ~a. Adequate measures have been ar will be taken to minimize traffic congestion on the public streets and to provide for appropriate on-site circulation of traffic. The traffic generated by the jreworks tent will not sign frcantly increase the traffic on the public sh^eets, and the site is large enough to handle additional interior tragic. The use will not cause a negative cumulative effect on other uses in the immediate vicinity. As indicated by prior descriptions, the fireworks tent should not have a negative impact on other uses in the immediate vicinity, which are all zoned commercial. Staff recommends that the Planning Commission approve the Interim Use Permit for a fireworks tent subject to conditians of approval outlined. below. Questians from members: Schmitt questioned the 90 day timeframe allowed. for this type of permit. She wondered if they could come back at a later time for another increment of time since they aren't using their entire 90 days for this request. Sargent said technically they ®vauld be allowed to make another request, but that each request would need to be apps°oved. In the past, this business leas only operated in the weeks prior to the 4th of July„ and they leave the site shortly after that date. Sargent also pointed out that they would 29 PLANNING & ZONING COMMISSION MINUTES PAGE 3 JUNE 2, 2009 be limited to two signs, with a combined maximum square footage of 32 square feet. Staff will make sure they know this, and will enforce that condition of the permit. Fiorendino asked if the plans were the same as in previous years and if the Police or Fire has ever had any issues with this operation. Sargent responded that it is a similar set up to previous years and. that he is unaware of any issues that Fire or Police have had. He reminded members that the Fire Dept. has reviewed the plans submitted and will also be doing a site inspection prior to them opening for business. Thompson asked if there was a deposit required for this Interim Use Permit snnilar to one Linder's paid as it is not included in the list of conditions. Sargent said that it has not been a condition for this business in the past, but agrees it is a similar situation to that of Linder's and it can be added as a condition if the Commission sees fit. He believes it wasn't included as a requirement because of the timeframe and size of the operation. The Firetivorks tent will only be there for approximately 30 days. Public Hearing Opened: No one was present to speak on this issue. Public Hearing Closed. Motion by Peterson, seconded by Schmitt, that the Planning Commission approves the Interim Use Fermit for a fireworks teat at -1005 Central Avenue NE for a period not to exceed 90 days,from date of approval, subject to certain conditions of approval that have been found to be necessary to protect the public interest and en.ruT°e compliance with the provisions of the Zoning and Development Ordinance, including: 1. The fireworks tent, display area, access aisles, and surrounding area shall be reviewed by the Community Development Department and the Fire Department. 2. The sale of fireworks shall TTZeet all requirements of Chapter 24 of the Fire Code and NFPA Chapter 1124. 3. Fireworks tents located within the public right-of--way are prohibited. 4. All goods shall be displayed on a designated impervious surface area. S. All goods shall be displayed in an orderly,fashion, with access aisles provided as needed. 6. Music oT^ amplifred sounds shall not be audible fi^om adjacent residential properties. 7. The fireworks tent shall not reduce the amount of off-street parking pT°ovided one-.site below the level requiredfor the principal use. !1 C"i~rrvrn~xn nTn~Tl Tin Ti»~itniT to t1~+n /~) nr^n{oacin»nTT,+ »on~Tn oinr»c ~e~itl~ n rnz»Tii»oit cnain~^a fnntnan »nt exceeding thirty-two (32) squaT^e feet. ~. Fir°eworks tents Tnay be allowed for a Tnaxirzzutn of ninety (90j days per calendar year°. All ayes. MOTION PASSED. 30 PLANNING & ZONING COMMISSION MINUTES PAGE 4 JUNE 2, 2009 RESOLUTION NO. zao~-PZa7 RESOLUTION OF THE PLANNING AND ZONING COMMISSION APPROVING AN INTERIM USE PERMIT FOR RENAISSANCE FIREWORKS, INC t'JITHIN THE CITY OF COLUMBIA HEIGHTS, MINNESOTA WHEREAS, a proposal (Case #2009-0601} has been submitted by Renaissance Fireworks to the Planning and Zol:mg Comm~sslor, requesting an interne L1se Perna approval from the City of Columbia Heights at the foli_owmg Slte: ADDRESS: 4005 Central Avenue LEGAL DESCRIPTION: On file at City Hall. THE APPLICANT SEEKS THE FOLLOWING PERMIT: Interim Use Permit for a fireworks tent and. sale for a period of no more than 90 days, per Code Section 9.110 (F){4}(a). WHEREAS, the Planning Commission has held a public hearing as required by the city Zoning Code on June 2, 2009; . WHEREAS, the Planning and Zoning Commission has considered the advice and recommendations of the City staff regarding the effect of the proposed site plan upon. the health, safety, and welfare of the community and its Comprehensive Plan, as well as any concerls related to compatibility of uses, traffic, property values, light, air, danger of fire, and risk to public safety in the surrounding areas; and NOW, THEREFORE, BE IT RESOLVED by the Planning and Zoning Commission of the City of Columbia Heights after reviewing the proposal, that the Planning and Zoning Commission accepts aild adopts the following findings: 1. The use is one of the interim uses listed for the zoning disb-ict in which the property is located, or^ is a substantially similar use, as determined by the Zoning Administrator. 2. The use is in harmony with the general pur pose and intent of the Comprehensive Plan. 3. The use will not impose hazards or disturbing influences on neighboring properties. 4. The use will not substantially diminish the use of property in the irnrzzediate vicinity. ~. The use will be designed, constructed, operated and maintained in a manner that is compatible with the appearance of the existing or intended character of the surrounding area. 6. fldequate measures have been or will be taken to rzzinimize traffic congestion on the pubic streets and to nrnviw fn:- nnnrnnrinty nn-city rirrvlntinn nftrnffr 7. The use will not cause a negative cumulative effect, when considered in conjunction with the cumulative effect of other uses in the immediate vicinity. FURTHER, BE IT RESOLVED, that the attached conditions, maps, and other information shall become part of this permit and approval; and in granting this permit the city and the applicant agree that this permit shall become null and void if the project has not been completed within one (1) calendar year after the approval date, subject to petition for renewal of the permit. CONDITIONS ATTACHED: 1. The fireworks tent, display area, access aisles, and surrounding area shall be reviewed by the Community Development Department and. the Fire Department. 2. The sale of fireworks shall meet all requirements of Chapter 24 ofthe Fire Code and NFPA Chapter 1124. 3. Fireworks tents located within the public right-of--way are prohibited. 4. All goods shall be displayed on a designated impervious surface area. 5. All. goods shall be displayed in an orderly fashion, with access aisles provided as needed. 6. Music or amplified sounds shall not be audible from adjacent residential properties. 31 PLANNING & ZONING COMMISSION MINUTES PAGE 5 JUNE 2, 2009 7. The fireworks tent shall not reduce the amount of off-street parking provided one-site below the level required for the principal use. 8. Signage shall be limited to two (2} professionally made signs, with a combined square footage not exceeding thirty-two (32) square feet. 9. Fireworks tents may be allowed for a maximum of ninety (90} days per calendar year. Passed. this 2n° day of June 2009, Offered by: Peterson Seconded by: Schmitt Roll Call: All ayes CHAIR Mariaine Szurek fittest: SECRETARY, Shelley Hanson Approval is contingent upon execution and return of this document to the City Planning Office. I have read and agree to the conditions of this resolution as outlined above. Mark Lazarchic Date CASE NLI1VIl~ER: zags-a6oz APP7.Tf'A1V'~; Frattallnnn„sc Ar„p T~arr~iwarp LOCATION: 4344 Central Avenue REQUEST: Conditional Use Permit Outdoor Sales and Display INTRODUCTION At this dine, Michael Frattallone d/b/a Frattallone's Ace Hardware is requesting a Conditional Use Permit (CUP) to allow for outdoor sales and display in the parking lot in front of the business located at 4340 Central Avenue. Sargent explained that Ace Hardware has been in its current location for less than one year, and. was not aware that a CUP was required in order to display the merchandise outdoors. It should be noted that this Conditional Use Pe 't will not expire and will hold merit for the business's subsequent years of operation. The applicant would not need to reapply for future CUPs for the same use at the same location unless he is seeking to amend an approved CUP. 32 PLANNING & ZONING COMMISSION MINUTES PAGE 6 3UNE 2, 2009 COMPREHENSIVE PLAN The Comprehensive Plan designates the property as commercial use. The proposal is consistent with the intent of the City's Comprehensive Plan to promote businesses and enhance the city's economic vitality through redevelopment efforts. ZONING ORDINANCE The property located at 4340 Central Avenue NE is zoned GB, General Business, as are the properties to the east. The properties to the north and south are zoned LB, Limited Business and. the properties to the west are zoned R-2A, One and Two Family Residential. The Zoning Code at Section 9.110 (F}(3)(d) allows for outdoor sales as a Conditional Use in the GB District. The Specific Development Standards at Section 9.107 (29) state the criteria in which the outdoor sales and display shall be used. These standards state the following: a} The outdoor sates/display use shall be accessory to a commercial use. The outdoor sales gill be accessory to the hardware store use, tit-hiclz is permitted an the GB, General Business District. b} All outdoor sales/display areas shall meet the setback requirements for a principal structure in the zoning district in which it is located. The setback requirements in the GB, General Business District are as follows: Front Yard: 1 S feet Side Yard: none Rear Yard.• 20 feet The proposed display area will be placed in front of the store and will occupy nine (9) parking stalls. The display location will meet all minimum setback requirements. c} Outdoor sales/display areas within the public right-of--way are prohibited. The applicant will confine all outdoor sales/displays to the paa-kang lot located in fi°ont of the business and away from any public rights-of--way. d} A landscape buffer with a minimum depth often feet shall be installed and maintained along all abutting public rights-of--way. A landscape buffer along the abutting rights-of--way is currently in place and will since to meet this requirement. e} All goods shall be displayed in a designated area that is hard surfaced. The proposed display area wall be on a hard surfaced parking lot and will be confined to two rows of palates, occupying nine (9) parking stalls. f} All goods shall be displayed in an orderly fashion, with access aisles provided as needed. The applicant has stated that it is to his benefit to display the goods in an orderly fashion. This condition wall be added as a condition of approti~al for the CUP. g} Music or amplified sounds shall not be audible from adjacent residential properties. Currently, there are no plans to utilize any type of outdoor arnplaficatr"on of music or sound 33 PLANNING & ZONING COMMISSION MINUTES PAGE 7 JUNE 2, 2008 h) The outdoor sales/display area shall not reduce the amount of off-street parking provided. on-site below the level required for the principal use. The site requires =183 on-site parking stalls. After taking the existing Linder's Greenhouse use as well as the proposed outdoor display use into consideration, there will still be 589 parking stalls available to the public. i) An appropriate transition area between the use and adjacent property shall be provided by landscaping, screening or other site improvements consistent with the character of the neighborhood. Appropriate transition areas between the use and the adjacent pr^operties are currently in place and provide for adequate landscaping and screening. PARKING. Section 9.106 (L)(10) of the Zoning Ordinance requires that commercial uses provide 1 parking space for each 300 square feet of use. Therefore, the existing 144,900-square foot commercial building is required to have 483 parking spaces. After accounting for the 30 parking spaces needed. for the Linder's Greenhause and the nine (9) parking stalls for the outdoor display area for Ace Hardware, there will still be 589 on-site parking stalls available to the public. FINDINGS OF FACT (Conditional Use Permit) Section 9.104 (H) of the Zoning Ordinance outlines nine findings of fact that must be met in order for the City to grant a conditional use permit. Sargent reviewed the findings with the Commission as follows: (a) The use is one of the conditional uses listed for the zoning district in which the property is located, or is a substantially similar use as determined by the Zoning Administrator. Outdoor sale,c/display is specifically listed a_s a Conditional Ilse in the G~3, General Pr,T.sin~,ss L>istr•iet in the City of Colurrrbia Lleights. (b) The use is in harmony with the general purpose and intent of the comprehensive plan. The Comprehensive Plan designates the property as commercial use. The proposal is consistent with the intent of the City's Comprehensive Plan to promote businesses. (c} The use will not impose hazards or disturbing influences on neighboring properties. The outdoor sales area only occupies nine (9) parking stalls and is located as to not disrupt the flow of traffic throzr~-h the parking lot. (d) The use will not substantially diminish the use of property in the immediate vicinity. TLC„ ,..T ~~tT.,,~L~ F ~. ,~rrl.,.,,^ ~..,T~~. .,. ., F ,. tl ~ ,. „f,T ('T 7P , ,.1.T 7 ~7„ ~ ~ tT .,t ~~rx a ne r"c gTdir"cu ~ee,~ucrroo Jvr vuauvvc ouew ur"cu fvr rrce yi^vpv~eu Zvi v'v'v u.au ree e~ eri:T Ure ereue e-rce uses of properties in the immediate vicinity would not be dirrainished in ar~y capacity. (e) The use will be designed, constructed, operated and maintained in a manner that is compatible with the appearance of the existing or intended character of the surrounding area. The outdoor sales area will be maintained to have a neat and tia'v appearance. 34 PLANNING & ZONING COMMISSION MINUTES PAGE 8 JUNE 2, 2009 (f) The use and property upon which the use is located are adequately served by essential public facilities and services. The property lacated at 43=10 Central Avenue NE meets this criterion. (g} Adequate measures have been or will be taken to minimize traffic congestion on the public streets and to provide for appropriate on-site circulation of traffic. On-site circulation of traffic will not be disrupted because the display m~ea is situated on the parking stall area of the parking lot, not in the drive aisles. (h) The use will not cause a negative cumulative effect, when considered in conjunction with the cumulative effect of other uses is the immediate vicinity. Being that outdoor sales/display is allowed in the General Business District with a CUP, it is assumed that there would be no negative cumulative effect of the proposed use on other arses in the rl~iri2edrate v7Crnrty. (i) The use complies with all other applicable regulations for the district in which it is located. The use complies with all other° applicable regulations for the GB zoning district. Staff recommends approval of the Conditional Use Permit for outdoor sales/display for 4340 Central Avenue. Questions by members: Fiorendino asked if the language regarding distance from the property lines meant the entire site or the area directly in front of the business itself. Sargent told him it applies to the property lines of the entire site. Fiorendino also wanted clarification on whether a change of ownership would void the CIJP since it is attached to the business and doesn't expire. Sargent said as long as the location of the permitted use and all of the conditions remain. the same, the permit would be in effect. However, if any of those items change, than it would require a new CUP to be issued. Peterson questioned if their old site had this type of storage. Sargent stated if they did, it wasn't directly in front of the store in the parking area, and since staff never received any complaints regarding it, there was no reason. to police that. Public Roaring opened: No one was present regarding this issue. Public I-Icarin~ Closed. Motion by Schmitt, seconded by Fiorendino, that the Planning Comta7ission recommends the City Council approve the Conditional Use Permit. for an outdoor sales/display area far the Frattalane 's Ace Hardware Store lacated at 4340 Central Avenue, subject to certain conditions of approval that Dave been foru7d to be necessary to protect the public interest and ensure carnpliance with the provisions crf the Zoning and Development Of°dsance, ncluding.• 35 PLANNING & ZONING COMMISSION MINUTES PAGE 9 JUNE 2, 2009 1. The outdoor sales/display area is limited to the nine (9) par^king stalls as denoted on the submitted .site plan. 2. The outdoor sales/display use shall be accessory to a commercial use. 3. All outdoor sales/display areas shall meet the setback requirements for a principal structure in the zoning district in which it is located. 4. Outdoor sales/display areas within the public right-of--way are prohibited. S. All goods shall be displayed in a designated area that is hay°d surfaced. 6. All goods shall be displayed in an orderly fashion, with access aisles provided as needed. 7. Music or amplified sounds shall not be audible from adjacent residential properties. All Ayes. MOTION PASSED. The following Resolution will go to the City Council June 8, 2009 for consideration. DRAFT RESOLUTION N0.2449-XX RESOLUTION APPROVING A CONDITIONAL USE PERMIT FOR FRATTALLONE'S ACE HARDWARE WITHIN THE CITY OF COLUMBIA HEIGHTS, MINNESOTA WHEREAS, a proposal (Case #2009-0602) has been submitted by Michael Frattallone to the City Council requesting a conditional use permit from the City of Columbia Heights at the fallowing site: ADDRESS: 4340 Central Avenue. LEGAL DESCRIPTION: On file at City Hall. THE APPLICANT SEEKS THE FOLLOWING PERMIT: A Conditional Use Pet-~nit per Code Section 9.110 (F)(3)(d), to allow outdoor salesldisplay. WHEREAS, the Planning Commission has held. a public hearing as required by the city Zoning Code on June 2, 2009; WHEREAS, the City Council has considered the advice and recommendations of the Planning Commission regarding the effect of the proposed conditional use permit upon the health, safety, and welfare of the community and its Comprehensive Plan, as well. as any concerns related to compatibility of uses, traffic, property values, tight, air, danger of fire, and risk. to public safety in the surrounding areas; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Columbia Heights after reviewing the proposal, that the City Council accepts and adopts the following findings of the Planning Commission: 1. The Llse is ono of the conditional uses 1zsted for the ~ol~ing district in which the property is located, or is a substantially similar use as determined by the Zoning Administrator. 2. The use is in harmony with the general purpose aid intent of the Comprehensive Plan. 2 Tho aaco .rill not imnnco ha~arrlc nr rlictrih~itinrs inflaaanrac nn nr i(shhnrin~r nrnnartiac .~. ~ ~,v uw .. ... ,...,~ ~..p.,.,,,.J ...,.~,.......~ .,. ....,,.. ............,~ .. r.. .................. .....b...,... ,..b p~... r..,. ~...,.,. 4. The use will not substantially diminish the use of property in the immediate vicinity. 5. The use will be designed, constructed, operated and lnaintailzed in a manner that is compatible with the appearance of the existing or intended character of the surrounding area. 6. The use alld property upon which the use is Located are adequately served by essential public facilities and services. 7. Adequate measures have been or will be taken to minimize traffic congestion an the public streets and to provide far appropriate on-site circulation of traffic. 36 PLANNING & ZONING COMMISSION MINUTES PAGE 10 JUNE 2, 2009 8. The use will not cause a negative cumulative effect, when considered in conjunction with the cumulative effect of other uses in the immediate vicinity. 9. The use complies with all other applicable regulations for the district in which it is located. FURTHER, BE IT RESOLVED, that the attached conditions, maps, and other information shall become part of this permit and approval; and in granting this permit the city and the applicant agree that this permit shall become null aa~d void if the project has not been completed within ore (1> calendar year after the approval date, subject to petition for renewal of the permit. CONDITIONS ATTACHED: 1. The outdoor sales/display area is limited to the Lune (9} parking stalls as denoted on the submitted site plan. 2. The outdoor sales/display use shall be accessory to a commercial use. All outdoor sales/display areas shall meet the setback requirements for a principal structure in the zoning district in which it is located. Outdoor sales/display areas within the public right-of--way are prohibited. All goods shall be displayed in a designated area that is hard surfaced. All goods shall be displayed in an orderly fashion, with access aisles provided as needed. Music or amplified sounds shall not be audible from adjacent residential properties. CASE NUMBER: 2009-Ob03 APPLICANT: City of Columbia Heights LOCATION: University Heights TIF District (C8) REQUEST: Approval of Conformity with the Comprehensive Plan BACKGROUND Sargent explained the City of Columbia Heights is in the process of modifying the language of the University Heights TIF district, which was originally established in 1984. The purpose of the modification to the district is to utilize the unlimited pooling allowance to generate fund balances from the District. These funds will be used as seed money to create a new scattered site TIF District throughout the City of Columbia lieigilts. It is anticipated that the money generated from the University Heights TIF District would allow the City to purchase up to 20 houses that are severely blighted and/or functionally obsolete. The plan would be to tear down dilapidated single-family homes and replace them with new single-family homes at a later date. The Public Hearing to approve the expansion of the TIF District is set for June 8, 2009. Prior to this Public Hearing, Minnesota State Statutes and "fIF Iaw requires an approved IZesoIution from the Planning Commission ensuring that the land use resulting from the expansion of the TIF district conforms with the City's Comprehensive Plan. COMP HENSIVE PLAN It is anticipated that the City will purchase single-family homes in areas throughout the City in which the Comprehensive Plan guides for 1Zesidential use. For this reason, the teardown and reconstruction of new single-family homes would be consistent with the City's Comprehensive Plan. 37 PLANNING & ZONING COMMISSION MINUTES PAGE 11 JUNE 2, 2009 Questions from members: Fiorendino asked exactly what role the commission plays in this process. Sargent stated the Commission's role is to determine whether the establishment of the scattered site district is consistent with the City's Comprehensive Plan. Sargent explained that he is not an expert on the TIF Districts or the legal issues of the funding associated with them. Any member wanting more detailed information will need to attend the Public Hearing on June 8, 2009 in the Council Chambers. Fiorendino said it is hard to approve a new district when he didn't know which properties would. be included. Sargent explained that hasn't been determined at this time. The scattered site district will encompass the whole city and allow the City to purchase approximately 20 blighted homes to be demolished and. eventually replaced with new ones. They will be purchased over a long period of time, one at a time, throughout the City. Schmitt said at the last meeting the Commission had approved extending the K-Mart District to include the Sheffield area in hopes of purchasing some of the properties in that area as well. She wanted to know how many homes would be purchased in that district. Sargent explained that number hasn't been determined. Funds from the K-Mart District will be used for this purpose, but the exact number of properties involved will be determined by purchase price of the properties. Schmitt stated she is in favor of the City purchasing blighted properties and. replacing with new homes, but she is concerned that too much concentration would be placed in the Sheffield area if the scattered site money were used primarily in this area too. She sees a need for it to be spread out throughout the city. Is it possible to use "citywide minus the Sheffield area" as the language in this Resolution as the Sheffield area is already part of the other District. Sargent responded that the intent is to purchase properties throughout the city and that all purchases will be scrutinized by the EDA to ensure it is following the requirements for each TIF District. Fiorendino said the terminology in the Resolution is confusing as it refers to the downtown Central Business District. He doesn't think the scattered site district should include the Business Districts. Sargent explained the Resolution was written by an attorney, and that the downtown Central Business District actually is inclusive of the entire city, and that the language regarding the boundaries shouldn't be altered. He reminded members to attend the Public Hearing on June 8`h if they want further explanation. Fiorendino said he supports the concept of blighted properties being bought and replaced with homes constructed by developers. Public Hearing Opened: ter„ .~ .. «a; ~ ate: 1VV VnG WaJ prl.JLlll 14ga11F 111 ~, tdlds issue. Public Hearing Closed. 38 PLANNING & ZONING COMMISSION MINUTES PAGE 12 JUNE 2, 2009 Motion by Peterson, seconded by Thompson, that the Planning Commission approves Resolution 2009-PZO~, finding that a modification to the Downtown Central Business District (CBD) Revitalization Plan for the CBD Redevelopment Project and a rt~odifcation to the Tax Increment Financing plan for the University Avenue Redevelopment (C8) Tax Increment Financing Dista^ict corrforn2 tv the generui piuns for the deveiopment and redeveiopment of the City. All ayes. MOTION PASSED. PLANNING COMMISSION CITY OF COLUMBIA HEIGHTS ANOKA COUNTY, MINNESOTA RESOLUTION N0.2009-PZ08 RESOLUTION OF THE CITY OF COLUMBIA HEIGHTS PLANNING COMMISSION FINDING THAT A MODIFICATION TO THE DOWNTOWN CENTRAL BUSINESS DISTRICT (CBD) REVITALIZATION PLAN FOR THE CBD REDEVELOPMENT PROJECT AND A MODIFICATION TO THE TAX INCREMENT FINANCING PLAN FOR THE UNIVERSITY AVENUE REDEVELOPMENT (C8) TAX INCREMENT FINANCING DISTRICT CONFORM TO THE GENERAL PLANS FOR THE DEVELOPMENT AND REDEVELOPMENT OF THE CITY. WHEREAS, the City Council for the City of Columbia Heights, Minnesota, (the "City") has proposed to adopt a Modification to the Downtown CBD Revitalization P1a11 for the CBD Redevelopment Project (the "Revitalization Plan Modi_fi_cation"} and. a Modification to the Tax Increment Financing Plan for the University Avemae Redevelopment (C8) Tax Increment Financing District (the "TIF Plan Modification") therefore (the Revitalization Plan Modification and the TIF Plan Modification are referred to collectively herein as the "Modifications") and has submitted the Modifications to the City Pianniirg Commission (the "Commission") pursuant to Minnesota Statutes, Section 469.17j, Subd. 3, and WHEREAS, the Commission has reviewed the Modifications to determine their conformity with the general plans for the development and redevelopment of the City as described in the comprehensive plan for the City. NOW, THEREFORE, BE IT RESOLVED by the Commission that the Modifications conform to the general plans for the development and redevelopment of the City as a whole. Dated: June 2, 2009 (lfFr rr ri h~,• PPtPrcn» Seconded by: Tl~oinpson All ayes ATTEST: SECRETARY, Shelley Hanson CHAIR, Marlaine Szurek 39 PLANNING & ZONING COMMISSION MINUTES PAGE 13 JUNE 2, 2009 NEW BUSINESS None at this time. OTHER BUSINESS The City Council was presented with the final draft, including all the amendments, of the Comprehensive Plan for approval so that it could be submitted to the Met Council by the May 29, 2009 deadline. The Met Council will take a couple months to look at it, and either approve the Plan, or send it back far necessary changes. If any are needed, a hearing will again be held to approve the final copy. The meeting was adjourned. at 7:55 pm. Respectfully submitted, Shelley Hanson Secretary 40 CITY COUNCIL LETTER MEETING OF: AGENDA SECTION: CONSENT NO: ORIGINATING DEPT: FINANCE CITY MANAGER APPROVAL ADOPT RESOLUTION 2009-72 BEING A RESOLUTION WAIVING THE TORT LIABILITY LIMITS AND AUTHORIZE INSURANCE AGREEMENT WITH THE LMCIT NO: BY: WILLIAM ELRITE DATE: June 2, 2009 BY: ~, ~ r The City's commercial insurance policy with the League of Minnesota Cities Insurance Trust was up for renewal on June 1, 2009. At the work session of June lsl options for the City of Columbia Heights insurance coverage were discussed. The consensus of the council was to continue the excess general liability of $1,000,000, retain the current $1,000 deductible, and continue to waive the tort liability limit. The premium cost for these options will be approximately $40,598. This brings the total renewal premium to $263,024 as compared to the prior year's premium of $257,226. For the period of June 1, 2008 through May S, 2009 the City had I8 claims with paid losses of $28,687. In December of 2008 the City received a dividend of $6,715 from the LMCIT for the policy period ending June 1, 2008. RECOMMENDED MOTION: Move to authorize the Mayor and City Manager to enter into an agreement with the League of Minnesota Cities Insurance Trust to renew the City's liability and property insurance coverage, including $1,000,000 of excess liability insurance and waiving tort liability limits. RECOMMENDED MOTION: Move to waive the reading of Resolution 2009-72, there being ample copies available to the public. RECOMMENDED MOTION: Move to adopt Resolution 2009-72, being a resolution waiving the tort liability limits. ~LIF•cme 0906021 COUNCIL Attachments: Resolution 2009-72 Memo of June 1, 2009 Premium Cost for 2009 Premium Cost for 2008 COUNCIL ACTION: 41 RESOLUTION NO. 2009-72 BEING A RESOLUTION WAIVING THE STATUTORY TORT LIABILITY LIMITS WHEREAS, the City of Columbia Heights is a Minnesota political subdivision desiring to self- insure its property and liability risks through participation in a joint powers arrangement known as the League of ivlinriesota Cities insurance Trust (LPr/ICiTj; atlu' WHEREAS, Minnesota Statute Section 47]..981 permits a city to extend the coverage of its self insurance to afford protection in excess of any limitations on liability established by taw; and WHEREAS, Minnesota Statute Section 471.981 provides that unless expressly provided in the ordinance or resolution extending the coverage, the statutory limitations on liability shall not be deemed to have been waived. NOW, THEREFORE, BE IT RESOLVED that the Columbia Heights City Council does hereby accept excess liability coverage limits of $1,000,000 from the League of Minnesota Cities Insurance Trust and the City waives the monetary limits of tort liability established by Minnesota Statute Section 466.04, to the extent of the limits of the liability coverage obtained from LMCIT. Passed this day of , 2009. Offered by: Seconded by: Roll Call: Mayor Gary L. Peterson Patricia Muscovitz, City Clerk 42 CITY OF COLUMBIA HEIGHTS DATE: JUNE 1, 2009 TO: WALT FEHST CITY MANAGER FROM: WILLIAM ELRITE FINANCE DIRECTOR RE: INSURANCE RENEWAL The City's insurance policy is up for renewal on June 1, 2009. We have received a quote and various information related to the renewal from the League of Minnesota Cities. For the last two years the City Council chose to waive the statutory tort liability limits and to increase our total liability coverage by $1,000,000. Again, this year, the council is faced with the same decision, The chart below shows the cost of our basic insurance policy without waiving the tort liability limits and with no increase in the amount of liability coverage. The chart also shows the cost to increase our liability coverage by $1,000,000 and to waive the tort liability limits. Attached to this memo is the resolution that was adopted last year waiving the tort liability limits, the information from the League of Minnesota Cities regarding the options, and the new renewal premium summary. Also attached is the historic information that was distributed last year. 2008 2009 lase pre. ~ ~iur ~ $ 214,458 $ 222,42 Add excess liability coverage of $1,000,000 $ 28,604 $ 29,827 Subtota6 $ 243,062 $ 252,253 Waive tort liability $ 14,164 $ 10,771 Total $ 257,226 $ 263,02 YY 1:. J111J 0906011CM 43 OOH j,EAGUE oe M[N[VESOTA CITIES May 18, 2009 Nesbit Agencies 324 Oak Street Farmington, MN SS024 CONNECTING &.INNC?VATING SINCE 19I3 Covered Party: City of Columbia Heights Columbia Heights EDn c7L Columbia Heights 1-I=t4A Effective Date: 06J01 /09 RENEWAL PREMIUM SUMMARY Common Coverages Coverage Deductible Premium • Property $1,000. $66,918. • Mobile I'raperty 1,000. 7,910. • Municipal Liability 1,000. 92,OS7. • Automobile Liability 1,000. 13,523. • UM/I7IM $200,000 all covered autos 1,000. 1,176. • Basic Economic Lass Benefits {PIP) all covered autos 1,000. Included. • Automobile Pl•lysieal Damage 1,000. 17,487. e Crime 1,000. Included. Experieaee Rating Modifier:.888 (Applied to Municipal Liability, Autu Liability, and UMfUIM) The modifier is calculated with a formula which rnmpares the city's actual loss history whiz the amount of losses that woald be expected for a city of that size if the cfty were a perfectly average I.MCiT member. If the city's losses and expenses are better than average the city receives a premium credit. If the city's lasses and expenses are worse tfian average, the city receives a premium debit. t7ptional Coverages Coverage Deductible Pre ium _ n,.~.t ~ nun 1.{49. • Equipmel~t Breakdown 1,000. 6,OS8. • Excess Liability Limit: $ 1,000,000 NA 36,592. • Open Meeting La~v 100°lo Reimbursement NA 954. • Liquor Liability Limit: $ 1,000,000 NA 10,629. • Fireworks 1,000. 225. • Na Fault Sewer Back Up Limit: $ 1.0,000 1,000. 7,846. • Airport Liability I`~ot Covered. TOTAL $ 263,024, T\CR l07!/'MT 'rk A TT illl 1\U d P 13 E TTRT'T°TT ST11TT T)TT.1"+L'TTTB.i' T?iT[7flT!''Ti G v .u itt v v i i .. u u V 1\ A ,~.9-~ 1 iJ V i'®i`ii.L' 1 .y g'~gy g^gg~~'g ~+y g}{~ g~ ¢ +y p~ ~g q ~p + i~RT LI1T'AId +Zt2 y.Ls8dU~fltFV. /.Paq~4dU,ll~~s CI}mTllent~: I..EA~3t..Tlr ~ Ivl.ll~ll~l ESC)T'A ~I1 lES I45 tl(VdVE[LSITYAVE. WEST PtiGl[4IE: (651} ~~~-I2(lIF FAX: (651} .~~~PI29~ lNSt3ltAl~lCE TRUST ST. PAtiL, h1N SS7D3-2D44 TC7t,i,FR~& 1$~f~) 925-I122 ~t~ETi:VdWW.LMC.47ftG Page 1 of 2 44 ~~ LEAGUE OF MINNESOTA CITIES May 12, 2448 CONNECTING & INNOVATING; S[NCE 1913 ]First National Agency lte: City of Columbia Heights, Columbia 324 Oak Street Heights Economic Development Authority and Farmington, MN 55424 Columbia Heights Housing and Redevelopment Authority Effective Date: 46/01/08 RENEWAL PREMIUM SUMMA]ItY ANI1 BINDER. • Property +'• Mobile Property • Municipal Liability • Automobile Liability *:+ IJM/[JIA!I $200,000 all covered autos including unregistered •:+ Basic Economic Loss Benefits {PIP} all covered autos including unregistered -:• Automobile Physical Damage • Crime +:• Bands • Equipment Breakdown Excess Liability Limit:$1,000,000 Open 1Vleeting Law Limit: 100% Liquor Liability Lirnit: Fireworks No Fault Sewer Backup • Deductible: $1,000. 60,331. 6,181. 93,273. 12,989 1,078. Included 17,113. Included. 1,873. 7,295. 37,604. 1,079. 10,238, 225. 7,947. TOTAL , $257,226. TORT LIIVIIT $1,204,000. ($1,260,000. REMARKS: DO NOT PAY UNTIL'YOT.T RECEIVE II~TVUICES! SEE ATTACHED Renewal coverage is bound up to 60 days pending issuance o~° renewal based on LMCIT forms and practices in effect on renewal date. S ` rely, derwriter Jk I,MCI`I`22 (11/97}{IZev. 11107} LEA{T^T.aURE,~flT F 11`II~IE~OTA CITIES r9surv~vErsrrYAVE.wEST rHC~r~€:(651}283-32(70 EAx:(6517281-1298 I NS l1 L4Clt'w ~E T1lU~T~ ST_ CAU~~ttL~~. MI3 SSt03-2049 T©CC EkLE€: ($Qq} 92,E-1,12 WEt3:4YWV4'.CN~C.©RG R0.1 CRIIAI CIRgRRYt17JiTY th CCI R1-Jt T1UC R(`Ttt~tl [iH qI RV CR COLUMBIA HEIGHTS CITY COUNCIL LETTER Meeting of: June 8, 2009 AGENDA SECTION: Consent Agenda ORIGINATING DEPT.: CITY MANAGER NO: Community Development APPROVAL ITEM: Approval of a Conditional Use Permit for BY: Jeff Sargent, City Planner B i~: outdoor sales / dis la at 4340 Central P Y DATE: June 3 2009 ~ y /~f c-. Avenue. ,~ BACKGROUND: At this time, Michael Frattallone dlb/a Frattallone's Ace Hardware is requesting a Conditional Use Permit (CUP) to allow for outdoor sales in front of their business located at 4340 Central Avenue. The outdoor display area will occupy nine (9) parking stalls, and all drive aisles will be kept clear to promote vehicular access through the parking lot. The existing 144,900-square foot commercial building is required to have 483 parking spaces. After accounting for the 30 parking spaces needed. for the Linder's Greenhouse and the nine (9) parking stalls for the outdoor display area for Ace Ilardvvare, there will stilt be 589 on-site parking stalls available to the public. The Comprehensive Plan designates the property as commercial use. The proposal is consistent with the intent ofthe City's Comprehensive Plan to promote business and enhance the city's economic vitality through redevelopment efforts. RECOMMENDATION: The Planning Commission held a public hearing for this proposal at the June 2, 2009 Plam7ing and Zoning Meeting. There were no concerns regarding the proposed use, and with a 5-0 vote, the Planning Commission recommended the City Council to approve the request. For these reasons, staff recommends approval of the Conditio.~al aJse Permit for outdoor sales/display as well as approval of the site plan far 4340 Central Avenue. RECOMMENDED MOTION: Move to waive the reading of Resolution 2009-73, there being ample copies available to the public. Move to adopt Resolution No. 2009-73, approving a Conditional Use Permit for an outdoor sales/display establishment located at 4340 Central Avenue, subject to the conditions outlined in Resolution No. 2009-73. 4ttacl7rnents: Kesolution >UUy-1.~: f +L Metno: Location Mats, byte 1'tan COUNCIL ACTION: 46 DRAFT RESOLUTION N0.2009-73 RESOLUTION APPROVING A CONDITIONAL USE PERMIT FOR FRATTALLONE'S ACE HARDWARE WITHIN THE CITY OF COLUMBIA HEIGHTS, MINNESOTA WHEREAS, a proposal (Case #2009-0602) has been submitted by Michael Frattallone to the City Counci I requesting a conditional use permit from the City of Columbia Heights at the following site: ADDRESS: 4340 Central Avenue. LEGAL DESCRIPTION: On file at City Hall. THE APPLICANT SEEKS THE FOLLOWING PERMIT: A Conditional Use Permit per Code Section 9.110 {F)(3)(d), to allow outdoor sales/display. WHEREAS, the Planning Commission has held a public hearing as required by the city Zoning Code on June 2, 2009; WHEREAS, the City Council has considered the advice and recommendations of the Planning Commission regarding the effect of the proposed conditional use per-~nit upon the health, safety, and welfare of the community and its Comprehensive Plan, as well as any concerns related to compatibility of uses, traffic, property values, light, air, danger of fire, and risk to public safety in the surrounding areas; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Columbia Heights after reviewing the proposal, that the City Council accepts and adopts the following findings of the Planning Commission: l . The use is one of the conditional uses listed for the zoning district in which the property is located, or is a substantially similar use as determined by the Zoning Administrator. 2. The use is in harmony with the general purpose and intent of the Comprehensive Plan. 3. The use will not impose hazards or distributing influences on neighboring properties. 4. The use will not substantially diminish the use of property in the immediate vicinity. The use will be designed, constructed, operated and maintained in a manner that is compatible with the appearance of the existing or intended character of the surrounding area. 6. The use and property upon which the use is located are adequately served by essential public facilities and services. 7. Adequate measures have been or will be take~l to minimize traffic congestion. on the public 47 Resolution No. 2009-73 Page 2 streets and to provide for appropriate on-site circulation of traffic. 8. The use will not cause a negative cumulative effect, when considered in conjunction with the cumulative effect of other uses in the immediate vicinity. 9. `~fhe use complies with all other applicable regulations for the district in which it is lacated. FURTHER, BE IT RESOLVED, that the attached conditions, maps, and other information shall become part of this permit and approval; and in granting this permit the city and. the applicant agree that this permit shall become null and void if the project has not been completed within one 1 calendar,year after the approval date, subject to petition for renewal of the permit. CONDITIONS ATTACHED: 1. The outdoor sales/display area is limited to the nine (9) parking stalls as denoted on the submitted site plan. 2. The outdoor sales/display use shall be accessory to a commercial use. 3. All outdoor sales/display areas shall meet the setback requirements for a principal structure in the zoning district in which it is located. 4. Outdoor sales/display areas within the public right-of--way are prohibited. 5. Ali goods shall be displayed in a designated area that is hard surfaced. All goods shall be displayed in an orderly fashion, with access aisles provided as needed. 7. Music or amplified sounds shall not be audible from adjacent residential properties. Passed this 8'h day of June 2009 Offered bv: Seconded by: Roll Call: Ayes: Nays: Mayor Gary L. Peterson 48 Resolution No. 2009-73 Attest: Patricia Muscovitz, CMC City Cierk/Council Secretary P Approval is contingent upon execution and return of this document to the City Planning Office. I have read and agree to the conditions of this resolution as outlined above. Michael Frattallone Date 49 CITY OF COLUMBIA HEIGHTS PLANNING REPORT CASE NUMBER: 2009-0602 DATE: June 2, 2009 TO: Columbia Heights Planning Commission APPLICANT: Frattallone's Ace Hardware LOCATION: 4340 Central Avenue REQUEST: Conditional Use Permit Outdoor Sales and Display PREPARED BY: Jeff Sargent, City Planner INTRODUCTION At this time, Michael Frattallone d/b/a Frattallone's Ace Hardware is requesting a Conditional Use Permit (CUP) to allow for outdoor sales and display in the parking lot in front of the business located at 4340 Central Avenue. It is customary for Ace Hardware to offer mulch and topsoil in the summer months, typically displaying such items outside on palates. Ace Hardware has been in its current location for less than one year, and was not aware that a CUP was required in order to display the merchandise outdoors. It should be noted that this Conditional Use Permit will not expire and will hold merit for the business's subsequent years of operation. The applicant would not need to reapply for future C;UNs for the same use at the same location unless he is seeking to amend an approved GUP. COMPREHENSIVE PLAN The Comprehensive Plan designates the property as commercial use. The proposal is consistent with the [ntent of the City's Comprehensive Plan to promote businesses and enhance the city's economic vitality through redevelopment effarts. ZONING ORDINANCE The property located at 4340 Central Avenue NE is zoned GB, Genera[ Business, as are the properties to the east. The properties to the north and south are zoned LB, Limited Business and the properties to the west are zoned R-2A, One and Two Family City of Columbia Heights Planning Commission June 2, 2009 Frattallone's Ace Hardware CUP Case # 2009-0602 Residential. The Zoning Cade at Section 9.110 (F)(3)(d) allows for outdoor sales as a Conditional Use in the GB District. The Specific Development Standards at Section 9.107 (29) state the criteria in which the outdoor sales and display shall be used. These standards state the following: a} The outdoor sales/display use shall be accessory to a commercial use. The outdoor sales will be accessory to the hardware stare use, which is permitted in the GB, General Business District. b} All outdoor sales/display areas shall meet the setback requirements for a principal structure in the zoning district in which it is located. The setback requirements in the GB, General Business District are as follows: Front Yard: 15 feet Side Yard: none Rear Yard: 20 feet The proposed display area will be placed in front of the store and will occupy nine (9) parking stalls. The display location will meet all minimum setback requirements. c} Outdoor sales/display areas within the public right-of-way are prohibited. The applicant will confine all outdoor sales/displays to the parking lot located in front of the business and away from any public rights-of--way. d) A landscape buffer with a minimum depth of ten feet shall be installed and maintained along all abutting public rights-of--way. A I. )_ I_.. 1_ LI__ I_..LL'..__. !_L. I_.._.. Ll.. ~ l,.... / ~!/ H /df1C7SCcip~ UL1~ei c3PUfFig Ifl~ aLJUtlifi(J, ilgflLS-ol-wciy f$ t;C%rlel'Plfy in pfclt;C aPtU VVtiP suffice to meet this requirement. e) All goods shall be displayed in a designated area that is hard surfaced. The proposed display area will be on a hard surfaced parking lot and will be confined to two raves of palates, occupying nine (9) parking stalls. f} All goads shall be displayed in an orderly fashion, with access aisles provided as needed. The applicant has stated that it is to his benefit to display the goods in an orderly fashion. This condition will be added as a condition of approval for the CUP. Page 2 51 City of Columbia Heights Planning Commission June 2, 2009 Frattallone's Ace Hardware CUP Case # 2009-0602 g) Music or amplified sounds shall not be audible from adjacent residential properties. Currently, there are no plans to utilize any type of outdoor amplification of music or sound. h) The outdoor sales/display area shall not reduce the amount of off-street parking provided an-site below the level required for the principal use. The site requires 483 on-site parking stalls. After taking the existing Linder's Greenhouse use as well as the proposed outdoor display use into consideration, there will still be 589 parking stalls available to the public. i} An appropriate transition area between the use and adjacent property shall be provided by landscaping, screening or other site improvements consistent with the character of the neighborhood. Appropriate transition areas between the use and the adjacent properties are currently in place and provide far adequate landscaping and screening. PARKING. Section 9.106 (L)(10) of the Zoning Ordinance requires that commercial uses provide 1 parking space for each 300 square feet of use. Therefore, the existing 144,900-square foot commercial building is required to have 483 parking spaces. After accounting for the 30 parking spaces needed for the Linder's Greenhouse and the nine (9) parking stalls for the outdoor display area for Ace Hardware, there will still be 589 on-site parking stalls available to the public. FiNCINGS ~F FACT (Conditional Use Permit) Section 9.104 (H} of the Zoning Ordinance outlines nine findings of fact that must be met in order for the City to grant a conditional use permit. They are as follows: (a) The use is one of the conditional uses listed for the zoning district in which the property is located, or is a substantially similar use as determined by the Zoning Administrator. Outdoor sales/display is specifically listed as a Conditional Use in the GB, General Business District in the City of Columbia Heights. (b) The use is in harmony with the general purpose and intent of the comprehensive elan. The Comprehensive Flan designates the property as commercial use. The proposal is consistent with the intent of the City's Comprehensive Plan to promote businesses. Page 3 52 City of Columbia Heights Planning Commission June 2, 2009 Frattallone's Ace Hardware CUP Case # 2009-0602 (c) The use will not impose hazards or disturbing influences on neighboring properties. The outdoor sales area only occupies nine (9) parking stalls and is located as to not disrupt the flow of traffic through the parking lot. (d) The use will not substantially diminish the use of property in the immediate vicinity. The required setbacks for outdoor sales area for the proposed CUP would help ensure that the uses of properties in the immediate vicinity would not be diminished in any capacity. (e) The use will be designed, constructed, operated and maintained in a manner that is compatible with the appearance of the existing or intended character of the surrounding area. The outdoor sales area will be maintained to have a neat and tidy appearance. (f) The use and property upon which the use is located are adequately served by essential public facilities and services. The property located at 4340 Central Avenue NE meets this criterion. (g) Adequate measures have been or will be taken to minimize traffic congestion on the public streets and to provide for appropriate on-site circulation of traffic. On-site circulation of traffic will not be disrupted because fhe display area is Sltudti/U UrP tll+/ pciil{%rPC~. Stcdl! afecd Uflre pa%iClfiy iUt, llot iff t!!C Ur1Vect%J'PeJ'. (h) The use will not cause a negative cumulative effect, when considered in conjunction with the cumulative effect of other uses is the immediate vicinity. Being that outdoor sales/display is allowed in the General Business District with a CUP, it is assumed that there would be no negative cumulative effect of the proposed use on other uses in the immediate vicinity. (il The use complies with all other applicable req_ulatians far the district in which it is located. The use complies with all other applicable regulations far the GB zoning district. Page 4 53 City of Columbia Heights Planning Commission June 2, 2009 Frattallone's Ace Hardware CUP Case # 2009-0602 RECOMMENDATION Staff recommends approval of the Conditional Use Permit far outdoor sales/display for 4340 Central Avenue. Motions: Motion: That the Planning Commission recommends that the City Council approve the Conditional Use Permit for an outdoor sales/display area for the Frattalone's Ace Hardware Store located at 4340 Central Avenue, subject to certain conditions of approval that have been found to be necessary to protect the public interest and ensure compliance with the provisions of the Zoning and Development Ordinance, including: 1. The outdoor sales/display area is limited to the nine (9) parking stalls as denoted on the submitted site plan. 2. The outdoor sales/display use shall be accessory to a commercial use. 3. All outdoor sales/display areas shall meet the setback requirements for a principal structure in the zoning district in which it is located. 4. Outdoor salesldisplay areas within the public right-of-way are prohibited. 5. All geode shall be displayed in a designated area that is hard surfaced. 6. All goods shall be displayed in an orderly fashion, with access aisles provided as needed. 1. fvlt.isll; or anil.7lilied sounds Stidil riot be citldibie Iroifl Gdjidi;eilt re5ideiitlai properties. ATTACHMENTS ^ Draft Resolution ^ Location Map ^ Site Plan Page 5 54 4340 CE T L AVENUE 655 4633 ILI4'~ ' I 4605 46T H 4db6 4555 4536 4667 4534 6536 4; 4, 4360 4569 4549 6560 ,~ :bib 4343 6646 A544 4! 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J Y 931 Z 4600 ~OC~~lOt1 ~~~ 55 ~ ~~ ~'z ,.,~5~s 1 ~:., f " ~, . ~:~~~` w ,l ~ ~~ 4 CITY COUNCIL LETTER Meeting of June 8, 2009 AGENDA SECTION: CONSENT ORIGINATING DEPARTMENT: CITY Fire MANAGER NO: APPROVAL ITEM:: Rental Housing BY: Gary Gorman BY,~ ~ Licenses , NO: DATE: June 4, 2009 DATE: Approval of the attached List of rental housing License applications, in that they have met the requirements of the Property Maintenance Code. RECOMMENDED MOTION: Move to approve the items listed for rental housing 1rcense applications for June 8, 2009. COUNCIL ACTION: 58 List of 2008 Rental Licenses to Apprave Occupany I.D. Property Owner Name 10207 Thanh Bui 10016 Marcea Mariani 10138 Omar Merhi 10094 Natalie Nett Property Address 657 47TH 4007 MAIN 1022 42 1 /2 4125 QUINCY 06/04/2009 10:55 59 Page 1 List of 2009 Rental Licenses to Approve Occupant' I.D. Property Owner Name Property Address 10174 O'Malley Rental Properties, LLC 4058 QUINCY 10175 RRN, LLC 4109 QUINCY 20011 Rivertown #2 LLC 4023 6TH 20227 Radient Properties 1807 41ST 10051 Jeff Bahe 3825 CENTRAL 12059 Marietta Bornholdt 4207 2ND 10095 Lahoucine Boujnikh 1020 44TH 30005 Michael Brown 4220 4TH 20426 Terry Buchanan 4154 2ND 20227 Steven Caputo 1807 41ST 12015 Belma Demirovic 4237 UNIVERSITY 20042 Pat Fragale 1316 CIRCLE TERRACE 34000 Greg Guimont 4310 3RD 20290 Sheila Gutman 1248 CIRCLE TERRACE 20024 Sheila Gutmann 1266 CIRCLE TERRACE 10068 Daniel Hackett 567 37TH 10068 Dennis Hackett 567 37TH 30060 Paul Haines 4225 CENTRAL 30152 Paul Haines 4229 CENTRAL 12088 Dorn King 4516 TAYLOR 20244 Steve Leske 4526 TYLER 12019 Mary Jo McNutt 5055 JACKSON 30164 Richard Meissner 4643 PIERCE 30121 Anwaar Minhas 4634 TYLER 10078 Veronica Moroz 4533 MADISON 20086 Robert Okoro 1400 CIRCLE TERRACE 20210 Nathan Olson 1222 45 1/2 10155 Joseph Rutter 3817 HAVES 10199 Carolyn Sery 3828 RESERVOIR 10260 Amir Shahsavand 4101 5TH 12005 Bruce Smith 3800 TYLER 10022 VICTORY FUNDING LLC 1415 43RD 20277 Cynthia Wilcox 4512 MONROE 06/04/2009 10:55 6o Page 1 CITY COUNCIL LETTER Meeting of: June 8, 2009 AGENDA SECTION: NO: ORIGINATING DEPT.: License Department CITY MANAGER APPROVAL ITEM: License Agenda NO: BY: Shelley Hanson DATE: June 3, 2009 DATE: BY: BACKGROUND/ANALYSIS Attached is the business license agenda for the June 8, 2009 Council meeting. This agenda consists of applications for Contractor licenses for 2009 and Peddlers Licenses for the Jamboree. 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: ivlllYe lV CippiV Ve tilri 1tc1113 GL3 11Jted Vll tY1CL bl.~J 1211J3J ltc LYlsL agcfld CL iVl Jutll+ V, 20V9 as pli.3i.itll.d. COUNCIL ACTION: 61 TO CITY COUNCIL June 8, 2009 *Signed Waiver Form Accompanied Application CONTRACTOR'S LICENSES 2009 BLDG *Anderson Htg & AC 4347 Central Ave NE, Col. Hts. $60 *Swenson Construction 15098 23rd Ave N, Plymouth $60 *Knights Plumbing LLC 304 Iris Ln Sw, St Michael $60 *All Pride Plumbing Inc 9331 184th Ave NE, Forest Lk $60 *Dean's Professional Plumb 21301 County Rd 81, Rogers $60 PEDDLERS/SOLICITOR'S LICENSE POLICE *Matt Milner Sales for Jerry Johnson and Erik Johnson 1298 52"d Avenue NE $50 62 CITY OF COLUMBIA HEIGHTS FINANCE DEPARTMENT COUNCIL MEETING OF: June 8, 2009 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 130506 through 130645 in the amount of $ 1.068 594.27 These checks have been examined and found to be legal charges against the CITY OF COLUMBIA HEIGHTS, and are herby, recommended for payment. 63 ACS FINANCIAL SYSTEM CITY OF COLUMBIA HEIGHTS 06/04/2009 13:36:21 Check History GLOSOS- V06.74 COVERPAGE GL540R *************************** *** ***************** ******************************** * * * * E D A * * * * E D A * * * * E D A * * * * E D A *************************** *** ***************** ******************************** Report Selection: Optional Report Title.......06/08/2009 COUNCIL LISTING INCLUSIONS: Fund & Account .............. thru Check Date .................. thru Source Codes ................ thru Journal Entry Dates......... thru Journal Entry Ids........... thru Check Number ................ 130506 thru 130645 Project ..................... thru Vendor ...................... thru Invoice ..................... thru Purchase Order .............. thru Bank ........................ thru Voucher .................... thru Released Date ............... thru Cleared Date ................ thru Include Exp/Rev Closing Entries N Run Instructions: Jobg Banner Copies Form Printer Hold Space LPI Lines CPI CP SP J EDA OI P4 Y S 6 066 IO Y Y 64 ACS FINANCIAL SYSTEM CITY OF COLUMBIA HEIGHTS 06/04/2009 13 Check History GL540A-V06.74 PAGE 1 06/08/2009 COTJNCIL LISTING BANK VENDOR CHECK NUMBER AMOUNT SANK CHECKING ACCOUNT FIRST AMERICAN TITLE CO 130506 20,693.22 AMERICAN BOTTLING COMPAN 130507 295.25 BELLBOY CORPORATION 130508 3,530.74 CAPITOL BEVERAGE SALES L 130509 6,459.75 CHAMBERLAIN OIL COMPANY 130510 146.89 CHISAGO LAKES DISTRIBUTI 130511 2,712.46 CITY OF EAGAN 130512 225.00 D & M IRON WORKS INC 130513 46,711.SG DANSMAL DISTRIBUTING INC 130514 444.16 GENUINE PARTS/NAPA AUTO 130515 38.69 GRIGGS-COOPER & CO 130516 44,016.14 GTI LLC 130517 41,800.00 HANSON/SHELLY 130518 81.40 HOHENSTEINS INC 130519 1,973.30 HONEYWELL INC 130520 27,447.00 JJ TAYLOR DIST OF MN 130521 10,448.20 JOHNSON BROS. LIQUOR CO. 130522 36,550.30 MARK VII DIST. 130523 7,969.31 MN MUNICIPAL BEVERAGE AS 130524 350.00 NORTHEASTER 130525 314.10 PETTY CASH - KAREN OLSON 130526 124.71 PHILLIPS WINE & SPIRITS 130527 21,704.30 QUALITY WINE & SPIRITS 130528 764.47 SHAMROCK GROUP-ACE ICE 130529 877.75 SURLY BREWING CO INC 130530 443.00 THELEN INC 130531 280.36 TRI COUNTY BEVERAGE & SU 130532 110.00 VINOCOPIA SNC 130533 5,034.68 WINDSCHITL/KEITH 130534 177.18 XCEL ENERGY (N S P) 130535 4,883.81 NORTHEAST BANK CREDIT CA 130536 0.00 ACE HAAiJTni 7i??E 130537 5.94 AL-QUBLAN/BRIDGET 130538 20.00 APPOLLO SYSTEMS INC 130539 3,876.13 BETWEEN THE LINES 130540 1,650.00 BRAY/T,I7 130541 104.80 CARNEY/SHEILA 130542 17.60 CHAMBERLAIN OIL COMPANY 130543 306.93 GHERPdIN/ALEKSANDR 130544 143.11 CITY OF COLUMBIA HEIGHTS 130545 28'7,515.95 G & K SERVICES INC 130546 521.20 GARCIA/JUAN 130547 464.97 GENUINE PARTS/NAPA AUTO 130548 81.43 GRIGGS-COOPER & CO 130549 8,595.87 HERRERA/HOMORIO CASTRO 130550 502.69 JOHNSON BROS. LIQUOR CO. 130551 1,464.03 LEAGUE OF MINNESOTA CITI 130552 52.19 65 ACS FINANCIAL SYSTEM CITY OF COLUMBIA HEIGHTS 06/04/2009 13 Check History GL540R-V06.74 PAGE 2 06/08/2009 COUNCIL LISTING BANK VENDOR CHECK NUMBER AMOUNT BANK CHECKING ACCOUNT MEDICINE LAKE TOURS 130553 2,912.00 NAWROCKI/BRUCE 130554 199.30 PETTY CASH - KAREN MOELL 130555 126.63 PHILLIPS WINE & SPIRITS 130556 2,248.21 PYKA/JOAN 130557 57.00 QUALITY WINE & SPIRITS 130558 20,210.45 SPRINT INC 130559 122.97 STEFHENS/DARLENE 130x60 20.OG STEPHENS/IRENE 130561 59.00 SULLIVAN SHORES TOWNHOUS 130562 3,483.90 T-MOBILE IPdC 130563 665.02 VILLELA/NICK 130564 502.69 WIOSKY/CHUCK 130565 5.00 ACE HARDWARE 130566 53.35 ALL SAFE FIRE & SECURITY 130567 75.21 AMERIPRIDE LINEN INC 130568 155.21 ASPEN MILLS, INC. 130569 504.57 ASTLEFORD INTERNATIONAL 130570 320.99 BARNA GUZY & STEFFEN LTD 130571 13,727.00 BETTER BUSINESS BUREAU M 130572 800.00 BRAUER & ASSOCSATES LTD 130573 71.50 BROOKLYN TRUCKING 130574 119.81 BUILDERS CARPET INC 130575 472.16 BUILDING FASTENERS 130576 85.33 BUREAU OF CRIMINAL APPRE 130577 4.92 CATCO PARTS SERVICE 130578 267.31 CDW-G INC 130579 2,484.96 CHEMSEARCH 130580 178.89 CINTAS FIP.ST AID-SAFETY 130581 90.16 CITIZENS LEAGUE 130582 25.00 COMMERCIAL ASPHALT 130583 1,955.48 COM2?ERCIP.?, POOL-SPP. STTPP 130584 462.17 COMMUNICATION SERVICE FO 130585 188.00 D ROCK CENTER 130586 45.38 DIGITAL ALLY INC 130587 4,360.00 E L REINHARDT COMPANY IN 1.30588 213.43 EMBEDDED SYSTEMS INC 130589 910.80 EPABROIDERY & MORE 130590 617.10 FIDELITY BUILDING SERVIC 130591 5,165.77 FIRST NATIONAL INSURANCE 130592 1,000.00 G & K SERVICES INC 130593 468.29 GENE'S WATER & SEWER INC 130594 4,981.65 GENUINE PARTS/NAPA AUTO 130595 248.20 GIS RANGERS LLC 130596 6,640.20 GOPHER 130597 184.84 GREEN LIGHTS RECYCLSNG I 130598 710.48 H & K SALES 130599 247.23 66 ACS FINANCIAL SYSTEM CITY OF COLUMBIA HEIGHTS 06/04/2009 13 Check History GL540R-V06.74 PAGE 3 06/08/2009 COUPSCIL LISTING BANK VENDOR CHECK NUMBER AMOUNT BANK CHECKING ACCOUNT HOME DEPOT #2802 130600 98.42 ICC - NATIONAL 130601 100.00 INDEPENDENT SCHOOL DIST 130602 191,422.00 INTEGRATED LOSS CONTROL 130603 378.00 KANDI KOUNTRY INC 130604 81,962.40 KATH FUEL OIL SERVICE 130605 363.68 KIWANIS COLUMBIA HTS-FRI 130606 123.76 KIWANIS GOLDEN K FRID-CO 130607 123.77 LEAGUE OF MN CITIES INS 130608 248.00 MAC QUEEN EQUIPMENT CO. 130609 549.48 MEDICS TRAINING Z27C 130610 400.00 MENARDS - BLAINE 130611 64.01 MENARDS CASHWAY LUMBER-F 130612 268.04 METRO FIRE, INC 130613 203.00 METRO SALES INC 130614 81.37 MIDWAY FORD 130615 300.84 MIDWEST ASPHALT CO. 130616 104,078.84 MINNEAPOLIS COMMUNITY CO 130617 70.00 MINNEAPOLIS SAW CO INC 130618 19.11 NEXTEL COMMUNICATIONS 130619 40.99 NFPA INTERNATIONAL 130620 150.00 NORTHEASTER 130621 144.00 NORTHERN WATER WORKS SUP 130622 2,224.00 NYSTROM PUBLISHING COMPA 130623 478.06 OFFICE DEPOT 130624 350.28 ONE-CALL CONCEPT-GOPHER 130625 636.70 PIONEER RZM & WHEEL CO. 130626 41.52 QUICKSILVER EXPRESS COUR 130627 29.46 RENEWED Y.ARDWOOD FLCCRS 130628 1,000.00 RICOH AMERICAS CORPORATI 130629 56.31 ROYAL TIRE 130630 858.86 .RYDBEP,G/SCOTT 130631 197.18 S & T OFFICE PRODUCTS IN 130632 563.65 SANITARY ENGINEERING LAB 1.30633 920.00 SHAMROCK GROUP-ACE ICE 130634 410.10 SHRRWTN WTT~T~TAMR 1 "~~635 293.97 SHI INC 130636 969.24 SPRINT INC 130637 34.72 SUN PUBLICATION INC 130638 219.45 T-MOBILE INC 130639 713.14 THE GREEN INSTITUTE INC 130640 1,459.05 US AUTOFORCE 130641 126.51 VALLEY PAVING INC 130642 5,174.40 VERIZON WIRELESS 130643 31.30 VIKING ELECTRIC SUPPLY 130644 192.33 WW GRAINGER,INC 130645 26.26 x,058,594.27 *** 67 ACS FINANCIAL SYSTEM CITY OF COLUMBIA HEIGHTS 06/04/2009 13 Check History GL540R-V06.74 PAGE 4 06/C8/2009 COUNCIL LISTING BANK VENDOR CHECK NUMBER AMOUNT REPORT TOTALS: 1,068,594.27 RECORDS PRINTED - 000798 68 ACS FINANCIAL SYSTEM 06/04/2009 13:38:26 Check History FUND RECAP: FUND DESCRIPTION DISBURSEMENTS 101 GENERAL 31,838.66 201 COMMUNITY DEVELOPMENT FUND 990.01 240 LIBRARY 1,795.12 261 AFTER-SCHOOL PROGRAMS 294.80 270 POLICE COMMUNITY PROGRAMS 445.94 315 SULL-SHORES:TX GO BONDS2008A 3,483.90 401 CAPITAL IMPROVEMENTS 2,273.60 402 STATE AID CONSTRUCTION 101,805.24 411 CAPITAL IMP-GEN GOVT. BLDG 27,447.00 412 CAPITAL IMPROVEMENT PARKS 206.88 415 CAPITAL IMPRVMT - PIR PROD 5,440.12 417 PUB SAFETY BLDG CONSTRUCTION 92,387.63 418 COMMUNITY CTR CAPITAL BLDG 191,422.00 420 CAP SMPROVEMENT-DEVELOPMENT 20,693.22 431 CAP EQUIP REPLACE-GENERAL 86,322.40 601 WATER UTILITY 10,952.70 602 SEWER UTILITY 766.29 603 REFUSE FUND 981.90 604 STORM SEWER UTILITY 1,804.49 609 LIQUOR 182,310.40 701 CENTRAL GARAGE 5,666.67 720 INFORMATION SYSTEMS 3,676.31 875 FISCAL AGE2JCY: GIS RANGER o',640.20 881 CONTRIBUTED PROJECTS-REC 184.84 884 INSURANCE 1,248.00 885 PAYROLL FUND 287,515.95 TOTAL ALL FUNDS 1,068,594.27 BANK RECAP: BANK NAME DISBURSEMENTS BANK CHECKING ACCOUNT 1,068,594.27 TOTAL ALL BANKS 1,068,594.27 CITY OF COLUMBIA HEIGHTS GL060S-V06.74 AECAPPAGE GL540R 69 CITY COUNCIL LETTER MEETING OF: JUNE 8, 2009 AGENDA SECTION: PUBLIC HEARINGS ORIGINATING DEPT: CITY FINANCE MANAGER NO: APPROVAL ITEM: RESOLUTION AWARDING THE SALE OF BY: WILL IAM ELRITE BY: , ? $3,935 000 IN GENERAL OBLIGATION PUBLIC ~, ,, ; ~` , FACILITIES BONDS SERIES 2009A AND $580 000 DATE: JUNE 3 2009 , ~:'f° °= _' ~' ~~- , , , ]N GENERAL OBLIGATION TAXABLE TAX INCREMENT FINANCING BONDS, SERIES 2009E Previously the City Council adopted Ordinances 1563 and 1564 authorizing the sale of bonds. The second reading of these ordinances was held on April 27, 2009. The sate of the bonds is scheduled for June 8, 2009. The attached resolutions authorize and award these sales. At the meeting of June 8, 2009 the City Bond Counsel will distribute copies of the resolutions with the final amounts filled in. The Bond Counsel will also provide the detailed sales results at that meeting. Attached is a draft of the resolutions that will be presented for adoption at the meeting. RECOMMENDED MOTION: Move to waive the reading of Resolution 2009-74, there being ample copies available to the public. RECOMMENDED MOTION: Move to adopt Resolution 2009-74 being a resolution awarding the sale of $3,935,000 (final amount will be provided at the meeting) in General Obligation Public Facilities Bonds, Series 2009A. RECOMMENDED MOTION: Move to waive the reading of Resolution 2009-75, there being ample copies available to the public. RECOMMENDED MOTION: Move to adopt Resolution 2009-75 being a resolution awarding the sale of $580.000 (final amount will be provided at the meeting) in General Obligation Taxable Tax Increment Financing Bonds, Series 2009B. WEams 0906031COUNCIL Attachment: Resolution 2009-74 Resolution 2009-75 COUNCIL ACTION: j ,~ 70 RESOLUTION N0.2009-74 A RESOLUTION AWARDING THE SALE OF ~ GENEI2AI~ OBLIGATION PUBLIC FACILITIES BONDS, SERIES 2009A; FIXING THEIR FORM AND SPECIFICATIONS; DIRECTING THEIR EXECUTION AND DELIVERX; AND PROVIDING FOR THEIR PAYMENT BE IT RESOLVED By the City Council (the "Council") of the City of Columbia Heights, Anoka County, Minnesota (the "City'} as follows: Section 1. Recitals. 1.01. Public Safety Center and Murz~. The City is authorized by the Charter of the City of Columbia Heights (the "Charter") to issue its general obligation bonds for, among other things, the purchase or erection of needful public buildings within the City and any other public convenience from which. a revenue is or may be derived. The City therefore intends to issue its general obligation bonds pursuant to the Charter to finance (i) a new public safety center for the police and fire departments (the "Public Safety Center"), and (ii) energy-efficient improvements to Murzyn Hall ("Murzyn Improvements''). The Public Safety Center and the Murzyn Improvements are collectively referred to herein as the "Public Facilities improvements." The City has previously issued its General Obligation Public Safety Center Bonds, Series 2008B, in the aggregate principal amount of $10,000,000, to finance a portion of the construction and equipping of the Public Safety Center. L02. watermain Improvements. The City is authorized by Minnesota Statutes, Section 444.075, as amended (the "Utility Act"), to issue its general obligation bonds to defray the costs of certain watermain improvements. The City therefore intends to issue its general obligation bonds pursuant to the Utility Act aril Minnesota Statutes, Chapter 475, as amended ("Chapter 475"), to undertake various water lining projects within the City's watermain system (the "watermain Improvements"}. Y .1/J. JCY C:C+I QYYU t'1Y5G~' Y\LLVIYJCl I'll.llt315. 115E \.Yly' Ys aCI CYYi3rizl.Ct Uy lVlllYnlisilC0. JlGttulLJ, Chapter 429, as amended (the "Assessment Act"}, to issue its general obligation bonds to defray the casts of certain street and alley improvements. The City therefore intends to issue its general obligation bonds pursuant to the Assessment Act and Chapter 475 to undertake various street and alley rehabilitation and. reconstruction improvements, identified as Project No. 2007-02 and Project No. 2009-02 (collectively, the ``Street Improvements''). The Public Facility Improvements, the watermain Improvements, and the Street Improvements are collectively referred to herein as the "Projects." 1.04. Ordinance Readings. On April 13, 2009, the Council conducted a first reading of an ordinance authorizing the City to issue its general obligation bonds in the maximum principal amount of $3,935,000 to finance the Projects (the "Ordinance"). On April 27, 2009, the Council conducted a second reading of the Ordinance and adopted the Ordinance, subject to referendu'n as described in the Charter. 352627v1 A3PCL162-44 71 1.05. Publication of Ordinance• No Petition for Referendum. The Ordinance was published at least once in the City's official newspaper. The City Clerk did not receive a petition signed by the requisite amount of registered voters in the specified time frame to require a referendum on the issuance of the Bonds (hereinafter defined} under the Charter. Section 2. Sale of Bonds. 2.01. Award to Purchaser and Interest Rates. The proposal of (the ``Purchaser") to purchase $ General Obligation Public Facilities Bands, Series 2009A (the "Bonds") of the City described in the Terms of Proposal thereof is determined to be a reasonable offer and is accepted, the proposal being to purchase the Bonds at a price of $ for Bonds bearing interest as follows: Year Interest Rate Year Interest Rate 2010 % 2025 2011 2026 2012 2027 2013 2028 2014 2029 2015 2030 2016 2031 2017 2032 2018 2033 2019 2034 2020 2035 2021 2036 2022 2037 2023 2038 2024 Net interest cost: %. 2.02. Purchase Contract. The sum of $ being the amount proposed by the Purchaser in excess of $ wiii be deposited in aiiocabie amounts to tiie respective subaccounts in the Construction Account under Section S.O1 hereof, as determined by the City's financial advisor. The City Finance Director is directed to retain. the goad faith check of the Purchaser, pending completion of the sale of the Bonds, and to return the good faith checks of the unsuccessful proposers forthwith. The Mayor and the City Finance Director are directed to execute a contract with the Purchaser on behalf of the City. 2.03. Terms and Principal Amounts of the Bonds. The City will forthwith issue and sell the Bonds pursuant to the City Charter, the Utility Act, the Assessment Act, and Chapter 475 in the tc~ta] principal amount cif `~ .originally dated as of the date of delivery. in the denomination of $5,000 each or any integral multiple thereof, numbered No. R-1, upward, bearing interest as above set forth, and which mature serially on February 1 in the years and amounts as follows: 352627v1 AJP CL162-44 2 72 Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 201.9 2020 2021 2022 2023 2024 Amount Year 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 Amount $ of the Bonds (the "Public Facilities Portion"} maturing in the amounts and on the dates set forth below are being issued to finance the Public Facilities Improvements: Year Amount Year 2011 $ 2025 2012 2026 2013 2027 2014 2028 2015 2029 201.6 2030 201.7 2031 201.8 2032 2019 2033 2020 2034 2021 2035 2022 2036 2023 2037 2024 2038 Amount $ of the Bonds (the "Water Revenue Portion"} maturing in the amounts and on the dates set forth below are being issued to finance the Watennain 1mProvements: Year Amount 2011. 201.2 2013 2014 2015 Year Amount 2016 $ 2017 2018 2019 3s?62~v t a~P c~.~ bz-aa 3 73 $ of the Bonds (the ``Street Improvements Portion") maturing in the amounts and on the dates set forth below are being issued to finance the Street Improvements: Year Amount Year Amount 2010 $ 2015 $ 2011 2016 2012 2017 2013 2018 2014 2019 2.04. Optional Redemption. The City may elect on February 1, 2019, and on any date thereafter to prepay Bonds due on or after February 1, 2020. Redemption may be in whole or in part and if in part, at the option of the City and in such manner as the City will determine. If less than all Bonds of a maturity are called for redemption, the City will notify DTC (as defined in Section 8 hereof) of the particular amount of such maturity to be prepaid. DTC will determine by lot the amount of each participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. Prepayments will be at a price of par plus accrued interest. 2A5. Term Bands. To be completed if Term Bonds are requested by the Purchaser. Section 3. Registration and Payment. 3.01. Registered Form. The Bonds will be issued only in fully registered form. The interest thereon and, upon surrender of each Bond, the principal amount thereof, is payable by check or draft issued by the Registrar described herein. 3.02. Dates; Interest Payment Dates. Each Bond will be dated as of the last interest payment date preceding the date of authentication to which interest on the Bond has been paid or made available for payment, unless (i) the date of authentication is an interest payment date to which interest has been paid or made available far payr~~ent, in which case the Bond will be dated as of the date of authentication, or (ii) the date of authentication is prior to the first interest payment date. in which case the Bond will be dated as of the date of original issue. The interest on the Bonds is payable on February 1 and August l of each year, commencing February 1, 201.0, to the registered owners of record as of the close of business on the fifteenth day of the immediately preceding month, whether or not that day is a business day. 3.03. Registration. The City will appoint, and will maintain, a bond registrar, transfer agent, authenticating agent and paying agent (the "Registrar"}. The effect of registration and the rights and duties of the City and the Registrar with respect thereto are as follows: (a} Register. The Registrar must keep at its principal corporate trust offace a band register in which the Registrar provides far the registration of ownership of Bonds and the registration of transfers and exchanges of Bonds entitled to be registered, transferred ar exchanged. 352627v1 A3PCL162-44 4 74 (b) Transfer of Bonds. Upon surrender for transfer of a Bond duly endorsed by the registered owner thereof or accompanied by a written instrument of transfer, in form 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 will authenticate and deliver, in the name of the designated transferee or transferees, one or more new Bonds of a Iike aggregate principal amount and inaturit<,~, as requested by the transferer. The Registrar may, however, close the books for registration of any transfer after the fifteenth day of the month preceding each interest payment date and until that interest payment date. (c) Exchange of Bands. When Bonds are surrendered by the registered owner for exchange the Registrar will authenticate and deliver one or more new Bonds of a like aggregate principal amount and maturity as requested by the registered owner or the owner's attorney in writing. (d) Cancellation. Bonds surrendered upon transfer or exchange will be promptly cancelled by the Registrar and thereafter disposed of as directed by the City. (e) Improper or Unauthorized Transfer. When a Bond is presented to the Registrar for transfer, the Registrar may refuse to transfer the Bond. until the Registrar is satisfied that the endorsement on the Bond or separate instrument of transfer is valid and genuine and that the requested transfer is legally authorized. The Registrar will incur no liability for the refusal, in good faith, to make transfers which it, in its judgment, deems improper or unauthorized. (f} Persons Deemed Owners. The City and the Registrar may treat the person in whose name a Bond is registered in the bond register as the absolute owner of the Band, whether the Bond is overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on the Bond and for all other purposes, and payments so made to a registered owner or upon the owner's order will be valid and effectual to satisP,f and discharge the liability upon the Bond to the extent of the sum or sums so paid. (g} Taxes, Fees and Charges. The Registrar inay impose a charge upon the VN'Ylet 111Gi17V1 1VI Q i.t Q1IJIG1 Vl l:xl.llQll~,'L Vl 1~VIlUJ 3UI11LYLltt W 1ta111VU131. C1YL liLb1JU 0.1 lilt any tax, fee or other governmental charge required to be paid with respect to the transfer or exchange. (h) Mutilated, Lost, Stolen or Destroyed Bonds. If a Bond becomes mutilated or is destroyed, stolen or lost, the Registrar will deliver a new Bond of Iike amount, number, maturity date and tenor in exchange and substitution for and upon cancellation of the mutilated Bond ar in lieu of and in substitution for any Band destroyed, stolen or lost, upon the payment of the reasonable expenses and charges of the Registrar in connection therewith; and, in the case of a Bond destroyed, stolen or lost, upon filing with the Registrar of evidence satisfactory to it that the Bond was destroyed, stolen or lost, and of the ownership thereof, and upon furnishing to the Registrar an appropriate bond or indemnity in form, substance and amount satisfactory to it and as provided by law, in which bath the City and the Registrar must be named as obligees. Bonds so surrendered to the Registrar will be 352627v1 AJP CL162-44 75 cancelled by the Registrar and evidence of such cancellation must be given to the City. If the mutilated, destroyed, stolen or lost Bond has already matured or been called for redemption in accordance with its terms it is not necessary to issue a new Bond prior to payment. (i) Redemption. In the event any of the Bonds are called for redemption, notice thereof identifying the Bonds to be redeemed will be given by the Registrar by mailing a copy of the redemption notice by first class mail (postage prepaid} to the registered owner of each Bond to be redeemed at tree address shown on the registration books kept by the Registrar and by publishing the notice if required by law. Failure to give notice by publication or by mail to any registered owner, or any defect therein, will not affect the validity of the proceedings for the redemption of Bonds. Bonds so called for redemption will cease to bear interest after the specified redemption date, provided that the funds for the redemption are on deposit with the place of payment at that time. 3.04. Appointment of Initial Registrar. The City appoints U.S. Bank National Association, Saint Paul, Minnesota, as the initial Registrar. The Mayor and the City Manager are authorized to execute and deliver, on behalf of the City, a contract with the Registrar. Upon merger or consolidation of the Registrar with another corporation, if the resulting corporation is a bank or trust company authorized by law to conduct such business, the resulting corporation is authorized to act as successor Registrar. The City agrees to pay the reasonable and customary charges of the Registrar for the services performed. The City reserves the right to remove the Registrar upon 30 days' notice and upon the appointment of a successor Registrar, in which event the predecessor Registrar must deliver all cash and Bonds in its possession to the successor Registrar and must deliver the bond register to the successor Registrar. On or before each principal or interest due date, without further order of this Council, the City Finance Director must transmit to the Registrar monies sufficient for the payment of all principal and interest then due. 3.05. Execution, Authentication and Delivery. The Bands will be prepared under the direction of the City Manager and executed on behalf of the City by the signatures of the Mayor and the City Manager, provided that all signatures may be printed, engraved or lithographed facsimiles of the originals. If an officer whose signature or a facsimile of whose signature appears on the '~- -,- t_ _t_ ~m.. L,..F aL .. ,1 ..1: ,..C D......,1 ~L,.4 ..4. ~f ;1„ ;11 LSVIlUS Geajes to LSe JlAiat V1llGe1 UGtVre C11Ci Uirti ~'et ~% Vt alt'' iJ V1tU, filet 3i~1taCUr~. or tuisltittt~. `v`dttt nevertheless be valid and sufficient for all purposes, the same as if the officer had remained in office until delivery. Notwithstanding such execution, a Bond will not be valid or obligatory for any purpose or entitled. to any security or benefit under this Resolution unless and until a certificate of authentication on the Bond has been duly executed by the manual signature of an authorized representative of the Registrar. Certificates of authentication on different Bonds need not be signed by the same representative. The executed certificate of authentication on a Bond is conclusive evidence that it has been. authenticated and delivered under this Resolution. `vVhen the Bonds have been so prepared, executed and authenticated, the City Manager will deliver the same to the Purchaser upon payment of the purchase price in accordance with the contract of sale heretofore made and executed, and the Purchaser is not obligated to see to the application of the purchase price. 352627v1 AJPCLl62-44 76 3.06. TemRorary Bonds. The City may elect to deliver in lieu of printed definitive Bonds one or more typewritten temporary Bonds in substantially the form set forth in Section 4 hereof with such changes as may be necessary to reflect more than. one maturity in a single temporary bond. Upon the execution and delivery of definitive Bonds the temporary Bonds will be exchanged therefor and cancelled. Section 4. Form of Bond. 4.01. The Bonds will be printed or typewritten in substantially the following fortY'i: No. R- UNITED STATES OF AMERICA $ STATE OF MINNESOTA COUNTY OF ANOKA CITY OF COLUMBIA HEIGHTS GENERAL OBLIGATION PUBLIC FACILITIES BONDS, SERIES 2009A Date of Rate Maturity Original Issue CUSIP February 1, 20_ July 1, 2009 Registered Owner: Cede & Co. The City of Columbia Heights, Minnesota, a duly organized and existing municipal corporation and political subdivision located in Anoka County, Minnesota (the "City"), acknowledges itself to be i,~debted and for value received promises to pay to the Pegistered Owner specified above or registered. assigns, the principal sum of $ on the maturity date specified above, with interest thereon from the date hereof at the annual rate specified above, payable February I and August 1 in each year, commencing February 1 , 201.0, to the person in whose name this Bond is registered at the close of business on the fifteenth day (whether or not a business day) of the immediately preceding month. The interest hereon and, upon presentation and surrender hereof, the principal hereof are payable in lawful money of the United States of America by check or draft by U.S. Bank National Association, Saint Paul, Minnesota, as Registrar, Paying Agent, Transfer Agent and Authenticating Agent, or its designated successor under the Resolution described herein. For the prompt and full payment of such. principal and interest as the same respectively become due, the full faith and credit and taxing powers of the City have been and are hereby irrevocably pledged. The City may elect on February 1, 2019, and on any date thereafter to prepay Bonds due on or after February 1, 2020. Redemption may be in whole orrn part and if in part, at the option of the City and in such manner as the City will determine. If less than all Bonds of a maturity are called for redemption, the City will. notify Depository Trust Company ("DTC") of the particular amount of 352627v1 AJP CL162-4d 7 77 such maturity to be prepaid. DTC will determine by lot the amount of each participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. Prepayments will be at a price of par plus accrued interest. This Bond is one of an issue in the aggregate principal amount of $ ,all of like original issue date and. tenor, except as to number, maturity date, redemption privilege, and interest rate, all issued pursuant to a resolution adopted by the City Council on June 8, 2009 (the "Resolution"), far the purpose of providing funds to (i) construct a new public safety center for the police and fire departments within the City, (ii) defray the costs of certain improvements to the City's watermain system, and (iii} defray the costs of certain street and alley improvements within the City, pursuant to and in full conformity with the home rule charter of the City and the Constitution and laws of the State of Minnesota, including Minnesota Statutes, Section 444.075, Chapter 429, and Chapter 475, as amended. The principal hereof and. interest hereon are payable in part from net revenues of the City's water utility, in part from special assessments levied or to he levied on property specially benefited by local improvements, and in part from ad valorem taxes, as set forth in the Resolution to which reference is made for a full statement of rights and powers thereby conferred. The full faith and credit of the City are irrevocably pledged for payment of this Bond and the City Council has obligated itself to Levy additional ad valorem taxes on all taxable property in the City in the event of any deficiency in water revenues, special assessments, and taxes pledged, which additional taxes may be levied without limitation as to rate or amount. The Bonds of this series are issued only as fully registered Bonds in denominations of $5,000 or any integral multiple thereof of single maturities. As provided in the Resolution and subject to certain limitations set forth therein, this Bond is transferable upon the books of the City at the principal office of the Registrar, by the registered owner hereof in person or by the owner's attorney duly authorized in writing, upon surrender hereof together with a written instrument of transfer satisfactory to the Registrar, duly executed by the registered owner or the owner's attorney; and may also be surrendered in exchange for Bonds of other authorized denominations. Upon such transfer or exchange the City will cause a new Bond or Bonds to be issued in the name of the transferee or registered owner, of the same aggregate principal amount, bearing interest at the same rate and maturing on the same date, subject to .....L, ...+ F +,. ~ ..+..1 ,.1... ,,,7 a,. L.,, :.7 ,:+L. .,+ +.~ ..L. rcitttve.irjctitcttc ivr aitj% cax, tVC Gr goVvtittitCttcctt Lttargc rCiiuira,u w ua, pate vvctcc respc.,~ Lal SuaJat transfer or exchange. The City and the Registrar may deem and treat the person in whose name this Bondrs registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose of receiving payment and for all other purposes, and neither the City nor the Registrar will be affected by any notice to the contrary. The City Council has designated the issue of Bands of which this Bond forms a part as "qualified tax exempt obligations" within the meaning of Section 265(b}(3} of the Internal Revenue Code of 1986, as amended (the "Code"), relating to disallowance of interest expense for financial iaastitutions and within the $30 million limit allowed by the Code for the calendar year of issue, 352627vt AJP CL.762-~4 78 IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts, conditions and things required by the home rule charter of the City and the Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be performed preliminary to and in the issuance of this Bond in order to make it a valid and binding general obligation of the City in accordance with its terms, have been done, do exist, have happened and have been performed as so required, and that the issuance of this Bond does nct cause the indebtedness of the City to exceed any constitutional, statutory or charter limitation of indebtedness. This Bond is not valid or obligatory for any purpose or entitled to any security or benefit under the Resolution until the Certificate of Authentication hereon has been executed by the Registrar by manual signature of one of its authorized representatives. I1V WITNESS WHEREOF, the City of Columbia Heights, Anoka County, Minnesota, by its City Council, has caused this Band to be executed. on its behalf by the facsimile or manual signatures of the Mayor and City Manager and has caused this Bond to be dated as of the date set forth below. Dated.: CITY OF COLUMBIA HEIGHTS, MINNESOTA (Facsimile) (FacsiinileL City Manager Mayor CERTIFICATE OF AUTI~ENTICATION This is one of the Bonds delivered pursuant to the Resolution mentioned within. U.S. BANK NATIONAL ASSOCIATION By Authorized Representative The following abbreviations, when used in the inscription on the face of this Bond, will be construed as though they were written out in full according to applicable laws ar regulations: TEN CO -- as tenants UMF GIFT MIN ACT Custodian 352627v1 A3P CLlb2-44 79 in common (Gust} (Minor) TEN ENT -- as tenants by entireties JT TEN -- as joint tenants with right of survivorship and not as tenants in common under Uniform Gifts or Transfers to Minors Act............ (State) Additional abbreviations may also be used though not in the above list. ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto the within Bond and all rights thereunder, and does hereby irrevocably constitute and appoint attorney to transfer the said Bond. on the books kept for registration of the within Bond, with full power of substitution in the premises. Dated: Notice: The assignor's signature to this assignment must correspond. with the name as it appears upon the face of the within Bond in every particular, without alteration or any change whatever. Signature Guaranteed: NOTICE: Signature(s) must be guaranteed by a financial institution that is a member of the Securities Transfer Agent Medallion Program ("STAMP"), the Stock Exchange Medallion Program ("SEMP"}, the New York Stock Exchange, Inc. Medallion Signatures Program ("MSP") or other such "signature guarantee program" as may be determined by the Registrar in addition to, or in substitution for, STAMP, SEMP or MSP, all in accordance with the Securities Exchange Act of 1934, as amended. The Registrar will not effect transfer of this Bond unless the information concerning the assignee requested below is provided. Name and Address: 352627vt A3P CL162-44 la ao (Include information far all joint owners if this Bond is held by joint account.} Please insert social securit`,~ or other identifying number of assignee PROVISIONS AS TO REGISTRATION The ownership of the principal of and interest on the within Bond has been registered on the books of the Registrar in the name of the person last noted below. Date of Registration Registered Owner Cede & Co. Federal ID #13-2555119 Signature of Officer of Registrar 4.02. Approving, Legal Opinion. The City Finance Director is authorized and directed to obtain a copy of the proposed approving legal opinion of Kennedy & Graven, Chartered, Minneapolis, Minnesota, which is to be complete except as to dating thereof and cause the opinion to be printed on or accompany each Bond. Section 5. Payment; Security; Pledges and Covenants. 5.01. Funds and Accounts. (a) Genef-ally. The Bonds are payable from the General Obligation Public Facilities Bonds, Series 2009A Debt Service Fund (the "Debt Service Fund"} i_ ,-L- ..+~..1 Tt_.- !'~a. at ....+., D,.L.1: >v., :1:+: A.. .-.+ (+ko ~LD„kl; ~`~,.;l;t;a~ itG1GU~' creatC+U. 12P0 'vll~' VV 111 ILIatI ltCilit a 1 UUItL 1'Ql.ttt LlvJ I2i:LL7 tAlit itttL t uvaai i ua. aai ilvJ Account''}, a Water Revenue Account (the "Water Revenue Account"}, and. a Street Improvements Account (the "Street Improvements Account") in the Debt Service Fund. (b) Public Facilities Account. The City Finance Director will timely deposit in the Public Facilities Account the taxes (the "Taxes") levied or to be levied for hereunder, which Taxes are pledged to that account of the Debt Service Fund. There is also appropriated to the Public Facilities Account of the Debt Service Fund $ ,representing the amount necessary to pay interest on the Public Facilities Portion of the Bonds on February 1, 2010. If any payment of principal or interest on the Public Facilities Portion of the Bonds will became due when there is not sufficient money in the Public Facilities Account of the Debt Service Fund to pay the same, the City Finance Director is directed to pay such principal or interest from the general fund of the City, and. the general fund will be reimbursed for such advances out of the proceeds of Taxes when received. 352627v1 AJFCLl62-44 11 $1 (c} Water Revenue Account. The City will create and continue to operate its Water Fund to which will be credited all gross revenues of the City's water system and out of which. will be paid all. normal and reasonable expenses of current operations of the water system. Any balance therein are deemed net revenues and will be transferred, from time to time, to the Water Revenue Account of the Debt Service Fund, hereby created in the Water Fund, which account will be used only to pay principal of and interest on the Water Revenue Portion of the Bands and any other bonds similarly authorized. There will always be retained in the Water Revenue Account of the Debt Service Fund a sufficient amount to pay principal of and interest on the Water Revenue Portion. of the Bonds and the City Finance Director must report any current or anticipated deficiency in the Water Revenue Account to the City Council. If any payment of principal or interest on the Water Revenue Portion of the Bonds will become due when there is not sufficient money in the Water Revenue Account of the Debt Service Fund to pay the same, the City Finance Director is directed to pay such principal or interest from the general fund of the City, and the general fund will be reimbursed for such advances out of the proceeds of pledged net revenues when received. (d} Street Improvements Account. The City Finance Director will timely deposit in the Street Improvements Account the Taxes and the special assessments (the "Assessments"} levied or to be levied for the Street Improvements described in Section 1.03 hereof, which Taxes and Assessments are pledged to the Street Improvements Account of the Debt Service Fund. There is also appropriated to the Street Improvements Account of the Debt Service Fund $ , representing the amount necessary to pay interest on the Street Improvements Portion of the Bonds on February 1, 201.0. If any payment of principal or interest on the Street Improvements Portion of the Bonds will become due when there is not sufficient money in the Street Improvements Account of the Debt Service Fund. to pay the same, the City Finance Director is directed to pay such principal or interest from the general fund of the City, and the general fund will be reimbursed for such advances out of the proceeds of Taxes and Assessments when received. (e} Construction Fund. The proceeds of the Bands, less the appropriations made in paragraphs (b}, (c) and (d} of this Section but including any amounts in excess of the minimum proposal designated for deposit herein in accordance with Section 2.02 hereof, will be deposited in a Public Facilities subaccount, a Water Revenue subaccount, and a Street Improvements subaccount, respectively, in a separate "Construction Fund" to be used solely to defray expenses of the Public T.'., :l:a: T...., _.a., aL., TT7..a,. T..... ..,F,. .,..1 tL,. C~+....,.a T.« ...~~. ..~: ..1. Y Qt.111LiGJ YII1pit1Ye111eI1LJ, L11C"i VV ALGIltlaltl 1111prV VGY11Gt1LS, allll L11L JLl lyl.L YitlplV VL111L11LJ, tLJpl~LLlvLty'. When the Public Facilities Improvements, the Watennain Improvements, and the Street Improvements, respectively, are completed. and the casts thereof paid, the relevant subaccount in the Construction Fund is to be closed and any balance in the respective subaccount therein is to be deposited in the Public Facilities Account, the Water Revenue Account, and the Street Improvements Account, respectively, of the Debt Service Fund., as the case may be. 5.02. Covenants Re_ag riling Water Revenue Portion of Bonds. The Council covenants and. agrees with the holders of the Bonds that so long as any of the Water Revenue Portion of the Bonds remain outstanding and unpaid, it will keep and enforce the following covenants and agreements: (a} Maintenance ana' operation of System. The City will continue to maintain and efficiently operate its water system as a public utility and convenience free from competition of other like utilities and will cause all revenues therefrom to be deposited in bank accounts ~szbz~~l ~1pcLl~a-aa 12 82 and credited to the water account as hereinabove provided., and will make no expenditures from that account except for a duly authorized purpose and in accordance with this Resolution. (b) Water Revenue Account to be Haintained as Separate Account. The City will also maintain the ~'~'ater Revenue Account of the Debt Service Fund as a separate account in the Water Fund and will cause money to be credited thereto from time to time, out of net revenues from the water system in sums sufficient to pay principal of and interest on the Water Revenue Portion. of the Bands when due. (c} Books of Records and Accounts Relating to the System. The City will keep and maintain proper and adequate books of records and accounts separate from all other records of the City in which will be complete and correct entries as to all transactions relating to the water system and which will be open to inspection and copying by any bondholder, or the bondholder's agent or attorney, at any reasonable time, and it will furnish certified transcripts therefrom upon request and upon payment of a reasonable fee therefor, and said account will be audited at least annually by a qualified public accountant and statements of such audit and report will be furnished to ail bondholders upon request. (d) Persons Handling Revenues and Banks Receiving Deposits. The Council will cause persons handling revenues of the water system to be bonded in reasonable amounts for the protection of the City and the bondholders and will cause the funds collected on account of the operations of the water system to be deposited in a bank whose deposits are guaranteed under the Federal Deposit Insurance Law. (e) Insurance. The Council will keep the water system insured at all times against loss by fire, tornado and. other risks customarily insured against with an insurer or insurers in good standing, in such amounts as are customary for like plants, to prated the holders, from time to time, of the Bands and the City from any loss due to any such casualty and will apply the proceeds of such insurance to make good any such loss. (f} Perfarrnance of Duties. The City and each and all of its officers will punctually }seiivitet uu uuccc, wcuc cecececcVC ~~ ccte wacec ay,ceccc a, cecjuiceu vy caw. (g} Pledge to Produce Revenues. The City will impose and called charges of the nature authorized by the Utility Act at the times and in the amounts required to produce net revenues adequate to pay all principal and interest when due on the Water Revenue Portion of the Bonds and to create and maintain such reserves securing said payments as may be provided. in this Resolution. (h) Payment of Deficiencies, if Any. The Council will levy general ad valorem taxes on all taxable property in the City when required to meet any deficiency in net revenues with respect to the Water Revenue Portion of the Bonds. 5.a3. Pledge of Tax Levu. For the purpose of paying the principal of and interest on the Public Facilities Portion. and the Street Improvements Portion of the Bonds, there is levied a direct 352627v I AJP CL 162-44 13 83 annual irrepealable ad valorem tax upon all of the taxable property in the City, which will be spread upon the tax rolls and collected with and as part of other general taxes of the City. The Taxes will be credited to the respective subaccounts of the Debt Service Fund above provided and will be in the years and amounts as follows (year stated being year of collection}: Year Le~,v (See EXHIBIT B} 5.04. Certification to County Auditor as to Debt Service Fund Amount. (a) It is hereby determined that the estimated collections of the foregoing Taxes will produce at least five percent in excess of the amount needed to meet when due the principal and interest payments on the Public Facilities Portion of the Bonds. It is hereby determined that the estimated collections of the foregoing Taxes and Assessments will produce at least five percent in excess of the amount needed to meet when due the principal and interest payments on the Street Improvements Portion of the Bonds. The tax levy herein provided is irrepealable until. all of those respective portions of the Bonds are paid, provided. that at the time the City makes its annual tax levies the City Finance Director may certify to the County Auditor of Anoka County the amounts available in the Public Facilities Account or Street Improvements Account of the Debt Service Fund, as the case may be, to pay principal and interest due during the ensuing year, and the County Auditor will thereupon reduce the levy collectible during such year by the amount so certified. (b} It is hereby determined that the estimated collection of net revenues for the payment of principal and interest on the Water Revenue Portion of the Bonds will produce at least five percent in excess of the amount needed to meet, when due, the principal and interest payments on such portion of the Bonds and that no tax levy is needed at this time with respect to the Water Revenue Portion of the Bonds. 5.05. County Auditor Certificate as to Registration. The City Finance Director is directed to file a certified copy of this Resolution with the County Auditor of Anoka County and to obtain the certificate required by Minnesota Statutes, Section 4'75.63. JGLCt VSt V. fltl lttGlltf l.Qtllflt Vt ttaltJLl l~J 1. 6.01. City Proceedings and Records. The officers of the City are authorized and directed to prepare and furnish to the Purchaser and to the attorneys approving the Bonds, certified copies of proceedings and records of the City relating to the Bonds and to the financial condition and affairs of the City, and such other certificates, affidavits and transcripts as may be required to show the facts within their knowledge or as shown by the books and records in their custody and under their control, relating to the validity and. marketability of the Bonds and such instruments, including any heretofore furnished, will. be deemed representations of the City as to the facts stated therein. 6.02. Certification as to Official Statement. The Mayor, the City Manager, and the City Finance Director are hereby authorized ar_d directed to certify that they have examined the Official Statement prepared and circulated in connection with the issuance and sale of the Bonds and that to 352627vI A3P CL162-44 14 84 the best of their knowledge and belief the Official Statement is a complete and accurate representation of the facts and representations made therein as of the date of the Official Statement. 6.03. Payment of Costs of Issuance. The City authorizes the Purchaser to forward the amount of Bond proceeds allocable to the payment of issuance expenses (other than amounts payable to Kennedy & Graven, Chartered as Bond Counsel) to Bank of America, N.A. on the closing date for further distribution as directed by the City's financial adviser, Ehlers & Associates, Inc. Section 7. Tax Covenants. 7.01. Tax-Exempt Bonds. The City covenants and agrees with the holders from time to time of the Bonds that it will not take or permit to be taken by any of its officers, employees or agents any action. which would cause the interest on the Bonds to become subject to taxation under the Internal Revenue Code of 1986, as amended (the "Code"), and the Treasury Regulations promulgated thereunder, in effect at the time of such actions, and that it will take or cause its officers, employees or agents to take, all affirmative action within its power that may be necessary to ensure that such interest will not become subject to taxation under the Code and applicable Treasury Regulations, as presently existing or as hereafter amended and made applicable to the Bonds. 7.02. No Rebate Re uq fired. (a) The City will comply with requirements necessary under the Code to establish and maintain the exclusion from gross income of the interest on the Bonds under Section 103 of the Code, including without limitation requirements relating to temporary periods for investments, limitations on amounts invested at a yield greater than the yield on the Bonds, and the rebate of excess investment earnings to the United States if the Bonds (together with other obligations reasonably expected to be issued in calendar year 2009) exceed the small issuer rebate exception amount of $5,000,000. (b) For purposes of qualifying for the small issuer rebate exception to the federal arbitrage rebate requirements, the City finds, determines and declares that the aggregate face amount of all tax-exempt bonds (other than private activity bonds} issued by the City (and all Suvvcuaiiacc ~ieccuLS us ucV t,acyl uuasJi~ ua~. CacViauai y'Car iia i~vuic,u utc, isvacuJ ar% iSSuo.u iS i'avc reasonably expected to exceed $5,000,000, within the meaning of Section 148(f}(4)(D) of the Code. 7.03. Not Private Activity Bonds. The City further covenants not to use the proceeds of the Bonds or to cause or permit them or any of them to be used, in such a manner as to cause the Bonds to be "private activity bonds" within the meaning of Sections 1.03 and. 141 through 150 of the Code. 7.04. Qualified Tax-Exempt Obligations. In order to qualify the Bonds as "qualified tax-exempt obligations" within the meaning of Section 265(b)(3} of the Code, the City makes the following factual statements and representations: ~s26z~ut a~PCLi~?-aa 15 85 {a} the Bonds are nat "private activity bonds" as defined in Section 141 of the Code; (b} the City hereby designates the Bonds as "qualified tax-exempt obligations" for purposes of Section 265(b)(3) of the Code; {c) the reasonably anticipated amount of tax-exempt obligations other than any private activity bonds which will be issued by the City (and all subordinate entities of the City) during calendar year 2009 will not exceed $30,000,000; and (d} not more than $30,000,000 of obligations issued by the City during calendar year 2009 have been designated for purposes of Section 265(b}(3) of the Code. 7.05. Procedural Requirements. The City will use its best efforts to comply with any federal procedural requirements which may apply in order to effectuate the designations made by this Section. Section 8. Book-Entry System; Limited Obligation of City. 8.01. DTC. The Bonds will be initially issued in the form of a separate single typewritten or printed fully registered Bond for each of the maturities set forth in Section 2.03 hereof. Upon initial issuance, the ownership of each Bond will be registered in the registration books kept by the Registrar in the name of Cede & Co., as nominee for The Depository Trust Company, New York, New York, and its successors and assigns ("DTC"). Except as provided in this Section, all of the outstanding Bonds will be registered in the registration books kept by the Registrar in the name of Cede & Co., as nominee of DTC. 8.02. Participants. With respect to Bonds registered in the registration books kept by the Registrar in the name of Cede ~ Co., as nominee of DTC, the City and the Registrar wilt have no responsibility or obligation to any broker dealers, banks and other financial institutions from time to time for which DTC holds Bonds as securities depository (the "Participants"} or to any other person on behalf of which a Participant holds an interest in the Bonds, including but not limited to any _:7_:L'~_ _1_L',__a: _-- _ :al_ !:~ ~L .. ,~.c ~L.., .. ..,7.. ..F ilTf~ n.,,-1.. 9. C.. respoiistutttcy ur vutt~,actvtt Watt respcGt tv ~tJ tuc aCCiiraCy vt utc tcCvcu, vi L a <,, o.c.ua, cx: t,os. or any Participant with respect to any ownership interest in the Bonds, (ii} the delivery to any Participant or any other person (other than a registered owner of Bonds, as shown by the registration books kept by the Registrar}, of any notice with respect to the Bonds, including any notice of redemption, or (iii) the payment to any Participant or any other person, other than a registered owner of Bonds, of any amount with respect to principal of, premium, if any, or interest on the Bonds. The City and the Registrar may treat and consider the person in whose name each Bond. is registered in the registration books kept by the Registrar as the holder and absolute owner of such Bond for the purpose of payment of principal, premium and interest with respect to such Bond, for the purpose of registering transfers with respect to such Bonds, and for all other purposes. The Registrar will pay all principal of, premium, if any, and interest on the Bonds only to or on the order of the respective registered o;~~ners, as shown in the registration books kept by the Registrar, and all such payments will be valid and effectual to fully satisfy gild discharge the City's obligations with respect to payment of principal of, premium, if any, or interest on the Bonds to the extent of the sum or sums 352627v1 A3P CL162-44 16 86 so paid.. No person other than a registered owner of Bonds, as shown in the registration books kept by the Registrar, will receive a certificated Bond evidencing the obligation of this resolution. Upon delivery by DTC to the City Finance Director of a written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., the words "Cede & Co.," will refer to such new nominee of DTC; and upon receipt of such a notice, the City Finance Director will prcmptly deliver a copy of the same to the Registrar. 8.03. Representation Letter. The City has heretofore executed and delivered to DTC a Blanket Issuer Letter of Representations (the "Representation Letter") which will govern payment of principal of, premium, if any, and interest on the Bonds and notices with respect to the Bonds. Any Registrar subsequently appointed by the City with respect to the Bonds will agree to take all action necessary for all representations of the City in the Representation Letter with respect to the Registrar, to be complied with at all times. 8 04. Transfers Outside Book-Entr~ystem. In the event the City, by resolution of the Council, determines that it is in the best interests of the persons having beneficial interests in the Bonds that they be able to obtain Band certificates, the City will notify DTC, whereupon DTC will notify the Participants of the availability through DTC of Bond certificates. In such event the City will issue, transfer and exchange Bond certificates as requested by DTC and any other registered owners in accordance with the provisions of this Resolution. DTC may determine to discontinue providing its services with respect to the Bonds at any time by giving notice to the City and discharging its responsibilities with respect thereto under applicable law. In such event, if no successor securities depository is appointed, the City will issue and the Registrar will authenticate Bond certificates in accordance with. this Resolution and the provisions hereof will apply to the transfer, exchange and method of payment thereof. 8.05. Payments to Cede & Co. Notwithstanding any other provision of this Resolution to the contrary, so long as a Bond is registered in the name of Cede & Co., as nominee of DTC, payments with respect to principal of, premiumm, if any, and interest on the Band and notices with. respect to the Bond. will be made and given, respectively, in the manner provided in DTC's Operational Arrangements as set forth in the Representation Letter. o_...:~_ n r,.~.:~..:M~ r~:....~..,.,...,, Jee,~cvic 7. t.,veiuYSUiYe~ t>i,vivJUto. 9.01. City Compliance with Provisions of Continuing Disclosure Certificate. The City covenants and agrees that it will comply with and carry out all of the provisions of the Continuing Disclosure Certificate (hereinafter defined). Notwithstanding any other provision of this Resolution, failure of the City to comply with the Continuing Disclosure Certificate will not be considered. an event of default with respect to the Bonds; however, any Bondholder may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the City to comply with its obligations under this Section. 9.02. Execution of Continuing Disclosure Certificate. "Continuing Disclosure Certificate" means that certain Continuing Disclosure Certificate executed by the 1_~Iayor and. the City 1Vlanager and dated the date of issuance and delivery of the Bonds, as originally executed and as it may be amended from time to time in accordance with tl~e terms thereof. 352627v1 AJP CL162-44 1 87 Section l0. Defeasance. When all Bands and all interest thereon have been discharged as provided in this Section, all pledges, covenants and other rights granted by this Resolution to the holders of the Bonds will cease, except that the pledge of the full faith and credit of the City for the prompt and full payment of the principal of and interest on the Bonds will remain in full force and effect. The pity may discharge all Bonds (or relevant portion thereof} which are due on any date by depositing with the Registrar on or before that date a sum sufficient for the payment thereof in full. If any Bond should not be paid when due, it may nevertheless be discharged by depositing with the Registrar a sum sufficient for the payment thereof in full with interest accrued to the date of such deposit. (The remainder of this page is intentionally left blank.) >>z6z~~1 air cLl~z-44 1 ~ 88 The foregoing Resolution was introduced by Member and seconded by Member The following voted in favor of the Resolution: The following voted against: The following were absent: Adopted: June 8, 2009. ATTEST: Mayor City Clerk 352627v1 A3P CL162-44 19 89 STATE OF MINNESOTA ) COUNTY OF ANOKA ) SS. CITY OF COLUMBIA HEIGHTS) I, the undersigned, being the duly qualified and acting Manager of the City of Columbia Heights, Anoka County, Minnesota, do hereby certify that I have carefully compared the attached and foregoing extract of minutes of a regular meeting of the City Council of the City held on June 8, 2009 with the original minutes on file in my office and the extract is a full, true and correct copy of the minutes insofar as they relate to the issuance and sale of $ General Obligation Public Facilities Bonds, Series 2009A of the City. WITNESS My hand officially as such. City Manager and the corporate seal of the City this day of , 2009. City Manager City of Columbia Heights, Minnesota (SEAL} 352627vI AJP CL162-44 90 STATE OF MINNESOTA COUNTY AUDITOR'S CERTIFICATE AS TO COUNTY OF ANOKA TAX LEVY AND REGISTRATION I, the undersigned County Auditor of Anoka County, Minnesota, hereby certify that a certified copy of a resolution adopted by the governing body of the City of Columbia i-Ieights, Minnesota, on June 8, 2009, levying taxes for the payment of $ General Obligation Public Facilities Bonds, Series 2009A, of said municipality dated July I, 2009, has been filed in my office and said bonds have been entered on the register of obligations in my office and that such tax has been levied as required by law. WITNESS My hand and official seal this day of , 2009. County Auditor Anoka County, Minnesota (SEAL) Deputy 352627v1 A3PCL162-44 91 EXHIBIT A PROPOSALS 3~2627vI A3P Ct.162-44 A_~ 92 EXHIBIT B TAX LEVY SCHEDULE 352627vi AJPCL162-44 B-~ 93 Extract of Minutes of Meeting of the City Council of the City of Columbia Heights, Anoka County, Minnesota Pursuant to due call and. notice thereof, a regular meeting of the City Council of the City of Columbia Heights, Minnesota, was duly held in the City Hall in said City on Monday, 3une 8, 2009, commencing at 7:00 P.M. The following members were present: and the following were absent: The Mayor announced that the next order of business was consideration of the proposals which 11ad been received for the purchase of the City's $ Public Facilities Bonds, Series 2009A. General Obligation The City Finance Director presented a tabulation of the proposals which had been received in the manner specified in the Terms of Proposal for the Bands. The proposals are as set forth in Exhibit A attached. After due consideration of the proposals, Member then introduced the following written resolution, the reading of which. was dispensed with by unanimous consent, and moved its adoption: 352627v1 AJPCL162-44 c_1 94 RESOLUTION NO. 2009-75 A RESOLUTION AWARDING THE SALE OF $ TAXABLE GERZERAL OBLIGATION TAX INCREMENT BONDS, SERIES 2009B; FIXING THEIR FORM AND SPECIFICATIONS; DIRECTING THEIR EXECUTION AND DELIVERY; Ai~ID PROVIDING F OR THEIR PAYMENT BE IT RESOLVED By the City Council of the City of Columbia Heights, Anoka County, Minnesota (the "City'') as follows: Section 1. Sale of Bonds. 1.01. Back r~ ound. It is hereby determined that: (a) the City and the Columbia Heights Economic Development Authority (the ``Authority") have duly established the Kmart/Central Avenue Tax Increment Financing District (the "TIF District") within the Downtown CBD Redevelopment Project (the "Project") pursuant to Minnesota Statutes, Sections 469.174 through 469.1799, as amended (the "T1F Act") and Sections 469.001 through 469.047, as amended, which TIF District was certified by the Anoka County Auditor on July 23, 2004; (b) the City is authorized by Section 469.178 of the TIF Act and Minnesota Statutes, Chapter 475, as amended (the `Bond Act"), to issue and sell its general obligation bonds to pay all or a portion of the public redevelopment costs of the Project, as identified in the tax increment financing plan (the "TIF Plan"} for the TIF District; (c) the following costs of the Project to be financed by the Bonds (herein defined) are authorized by the TIF Plan: w n _ ,., HCti V lty ti. V Jl Acquisition of residential properties, including demolition clearance, relocation and related casts Underwriter's Discount Capitalized Interest Rounding Amount Total (d) it is necessary and expedient to the sound fn~ancial management of the affairs of the City to issue $ Taxable General Obligation Tax Increment 95 Bonds, Series 20098 (the "Bonds") to provide financing for the above-identified costs of the Project; (e) the Mayor and the Cit,~ Manager are au±horized and directed to execute a Tax Increment Pledge Agreement between the City and the Authority (the "Pledge Agreement"), in substantially the form on file in City Ha11, pursuant to which. the Authority pledges cer~Lain Available Tax Increment (as defined in the Pledge Agreement) from the TIF District to pay principal of and interest on the Bonds; and (f) the Authority has requested the City to issue and sell its general obligation bonds to finance a portion of the above-identified costs of the Project. 1.02. Award to Purchaser and Interest Rates. The proposal of (the "Purchaser") to purchase the Bonds as described in the Tenns of Proposal thereof is found and determined to be a reasonable offer and is hereby accepted, the proposal being to purchase the Bonds at a price of $ for Bonds bearing interest as follows: Year Interest Rate Year Interest Rate 2013 % 2018 2014 2019 2015 2020 2016 2021 2017 True interest cost: %. 1.03. Purchase Contract. The sum of $ being the amount proposed by the Purchaser in excess of $ shall be credited to the Project Fund hereinafter .,+o.a TL.o (`;+< ~; Tl;<. ..+~. ,~; ..+~,,a +„ .,+„ +L.,. ,..1 ~ :+1. ..l<,,,.t~ ,.F +L.,. D., ,.L... LreGtlLtl.. 111E ~.1L3'r i 11ta11Le Lt1eLLVr 1J UtreOJtV t[ lV rLlAl21 llit~ goVU 1Qt111 Ltti.iJtO Vl 111E t C[r LY1GtsLr, pending completion of the sate of the Bands, and. to return the good faith checks of the unsuccessful proposers. The Mayor and the City Finance Director are directed to execute a contract with the Purchaser on behalf of the City. 1.04. Tenns and Principal Amounts of the Bonds. The City will forthwith. issue and sell the Bonds pursuant to the TIF Act and the Bond Act in the total principal amount of $ ,originally dated .luly 1, 2009, in the denomination of $5,000 each or any integral multiple thereof, numbered No. R-1, upward, bearing interest as above set forth, and maturing serially on February 1 in the years and amounts as follows: 352698v2 A3P CL162-44 2 96 Year Amount Year Amount 2 0 13 $ 2018 $ ~~~~ 1 2V14 2019 2015 2020 2016 2021 2017 1.05. Combined Maturities. The maturity schedule of the Bonds shall be combined with the maturity schedule of the City's $ General Obligation Public Facilities Bonds, Series 2009A, which combined maturities conform to Section 475.54, Subdivision 1 of the Bond Act. 1.06. Optional Redemption. The City may elect on February 1, 2019, and on any date thereafter to prepay Bonds due on or after February 1, 2020. Redemption may be in whole or in part and if in part, at the option of the City and in such manner as the City will determine. If less than all Bonds of a maturity are called for redemption, the City will notify DTC (as defined in Section 7 hereof) of the particular amount of such maturity to be prepaid. DTC will determine by lot the amount of each participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. Prepayments will be at a price of par plus accrued interest. 1.07. Tenn Bonds. To be completed if Terrn Bonds are requested by the Purchaser. Section 2. Registration. and Pa, iy Went. 2.01. Registered Form. The Bonds will be issued only in fully registered form. The interest thereon and, upon surrender of each. Bond, the principal amount thereof, is payable by check or draft issued by the Registrar described herein. ~ n~ r~,,,,. r_,,. ,.+ n,. ..+ rz,,,„ >J..,.t, v,.~.a :tt t,,. a.,+.,a ~~' +L.o t„~+ r+m ~+ L.IfL. LQIaiJ. 1111Ltl.Jl L CLytttLttl 11QLLJ. LA.t.tl t3U11aA VV~itl UL i14La.u as vl. Lila. IczJa lllaa.re JL payment date preceding the date of authentication to which interest on the Bond has been paid or made available for payment, unless (i} the date of authentication is an interest payment date to which interest has been paid or made available for payment, in which case the Bond will be dated as of the date of authentication, or (ii) the date of authentication is prior to the first interest payment date, in which case the Bond will be dated as of the date of original issue. The interest on the Bonds is payable on February 1 and August 1 of each year, commencing February 1, 2010, to the registered owners of record as of the close of business on the fifteenth day of the immediately preceding month, whether or not that day is a business day. 2.03. Registration. The City will appoint a bond registrar, transfer agent, authenticating agent and paying agent (the "Registrar"). The effect of registration and the rights and duties of the City and the Registrar with r°espect thereto are as follows: 352698v2 A3P CL362-44 97 (a) Re inter. The Registrar must keep at its principal corporate trust office a bond register in which the Registrar provides for the registration of ownership of Bonds and the registration of transfers and exchanges of Bonds entitled to be registered, transferred or exchanged. (b) Transfer of Bonds. Upon surrender for transfer of a Bond duly endorsed by the registered owner thereof or accompanied. by a written instrument of transfer, in form 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 will authenticate and deliver, in the name of the designated transferee or transferees, one or more new Bands of a like aggregate principal amount and maturity, as requested by the transferor. The Registrar may, however, close the books for registration of any transfer after the fifteenth day of the month preceding each interest payment date and until that interest payment date. (c) Exchange of Bonds. When Bonds are surrendered by the registered owner for exchange the Registrar will authenticate and deliver one or more new Bonds of a like aggregate principal amount anal maturity as requested by the registered owner or the owner's attorney in writing. (d) Cancellation. Bonds surrendered upon transfer or exchange will be promptly cancelled by the Registrar and thereafter disposed of as directed by the City. (e) Improper or Unauthorized Transfer. When a Bond is presented to the Registrar for transfer, the Registrar may refuse to transfer the Bond until the Registrar is satisfied that the endorsement on such Bond or separate instrument of transfer is valid and genuine and that the requested transfer is legally authorized. The Registrar will incur no liability for the refusal, in good faith, to make transfers which it, in its judgment, deems improper or unauthorized. (f) Persons Deemed Owners. The City and the Registrar may treat the person in whose name a Bond is registered in the bond register as the absolute owner of the Bond, whether the Bond is overdue or not, for the purpose of receiving payment of, or on account of, the principal of and. interest on the Bond and for all other purposes, and payments so made to a registered owner or upon the owner's order will be valid and effectual to satisfy and discharge the liability upon the Bond to the extent of the sum or sums sa paid. (g) Taxes, Fees and Charges. The Registrar may impose a charge upon the owner thereof for a transfer or exchange of Bonds sufficient to reimburse the Registrar for any tax, fee or other governmental charge required to be paid with respect to the transfer or exchange. 352698v2 AJP CL162-44 Q, 98 (h) Mutilated, Lost, Stolen or Destroyed Bonds. if a Bond becomes mutilated or is destroyed, stolen or Lost, the Registrar will deliver a new Bond of like amount, number, maturity date and tenor in exchange and substitution for and upon cancellation. of the mutilated Bond or in lieu of and in substitution for a Bond destroyed, stolen or lost, upon the payment of the reasonable expenses and charges of the Registrar in connection therewith; and, in the case of a Bond destroyed, stolen or lost, upon filing with the Registrar of evidence satisfactory to it that the Bond was destroyed, stolen or lost, and of the ownership thereof, and upon furnishing to the Registrar an appropriate bond or indemnity in form, substance and amount satisfactory to the Registrar, in which both the City and the Registrar must be named as obligees. Bonds so surrendered to the Registrar will be cancelled by the Registrar and evidence of such cancellation must be given to the City. If the mutilated, destroyed, stolen or lost Bond has already matured or been called for redemption in accordance with its terms it is not necessary to issue a new Bond prior to payment. (i) Redemption. In the event any of the Bonds are called for redemption, notice thereof identifying the Bonds to be redeemed will be given by the Registrar by mailing a copy of the redemption notice by first class mail (postage prepaid} to the registered owner of each Bond to be redeemed at the address shown on the registration books kept by the Registrar and by publishing the notice if required by law. Failure to give notice by publication or by mail to any registered owner, or any defect therein, will not affect the validity of the proceedings for the redemption of Bonds. Bonds so called for redemption will cease to bear interest after the specified redemption date, provided that the funds for the redemption are on deposit with the place of payment at that time. 2.04. Appointment of Initial Re isg tray. The City appoints tJ.S. Bank National Association, Saint Paul, Minnesota, as the initial Registrar. The Mayor and the City Manager are authorized to execute and deliver, on behalf of the City, a contract with. the Registrar. Upon merger or consolidation of the Registrar with another corporation, if the resulting corporation is a vaDacs yr eiuae, a,vciapaicy aueaavriza,u vy' aavv' ev ivaauue,e Sua.ia vuSineSS, ~iav ra°.JUi<iazg ivi"`jsvrueavia iS authorized to act as successor Registrar. The City agrees to pay the reasonable and customary charges of the Registrar for the services performed. The City reserves the right to remove the Registrar upon 30 days' notice and upon the appointment of a successor Registrar, in which event the predecessor Registrar must deliver all cash and Bonds in its possession to the successor Registrar anal must deliver the bond register to the successor Registrar. On or before each principal or interest due date, without further order of this Council, the City Finance Director must transmit to the Registrar moneys sulficient for the payment of all principal and interest then due. 2.05. Execution, Authentication and. Delivery. The Bonds will be prepared under the direction of the City Manager and executed o,~ behalf of the City by the signatures of the Mayor and the City Manager, provided that all signatures may be printed, engraved ar lithographed 352698v2 A1P CL162-44 5 99 facsimiles of the originals. If an officer whose signature or a facsimile of whose signature appears on the Bonds ceases to be such officer before the delivery of any Bond, that signature or facsimile will nevertheless be valid and sufficient for all purposes, the same as if the officer had remained ir. office until delivery. Notvvithstanding such execution, a Bond `will not be valid or obligatory for any purpose or entitled to any security or benefit under this Resolution unless and until a certificate of authentication on the Bond has been duly executed by the manual signature of an authorized representative of the Registrar. Certi cater of authentication on different Bonds need not be signed by the same representative. The executed certificate of authentication on a Bond. is conclusive evidence that it has been authenticated and delivered under this Resolution. When the Bonds have been so prepared, executed and authenticated, the City Manager will deliver the same to the Purchaser upon payment of the purchase price in accordance with the contract of sale heretofore made and executed, and the Purchaser is not obligated to see to the application of the purchase price. 2.06. Temporary Bonds. The City may elect to deliver in lieu of printed definitive Bonds one or more typewritten temporary Bonds in substantially the form. set forth in Section 3 hereof with. such changes as may be necessary to reflect more than of-e maturity iii a single temporary bond. Upon the execution and delivery of definitive Bonds the temporary Bonds will be exchanged therefor and cancelled. Section 3. Farm of Bond. 3.01. The Bonds will be printed or typewritten in substantially the following form: No. R- UNITED STATES OF AMERICA $ STATE OF MINNESOTA COUNTTY OF ANOKA CITY OF COLUMBIA HEIGHTS TAXABLE GENERAL OBLIGATION TAX INCREMENT BOND, c~uT~c ~nnora va_.asaa. as ~vv~v Date of Rate Maturity Original Issue CUSIP February 1, 20_ July 1, 2009 Registered Owner: Cede & Co. m: r.•, r n ~ e xf i x.~• _s t._ _.._._._[.__ 1 _._.~ __.7 _<7.__. ~______7.. L_._t the i,aty or `,utumtsta rtetgnts, ivttnnesuta, a uuty urgatttG~u situ CxtStttt~ tttutat4t~as corporation in Anoka County, Minnesota the "City"}, acknowledges itself to be indebted. and for value received hereby promises to pay to the Registered Owner specified above or registered 352698v2 AJP CL162-44 6 100 assigns, the principal sum of $ on the maturity date specified above, with interest thereon from the date hereof at the annual rate specified above, payable February 1 and August 1 in each year, commencing February 1, 2010, to the person in whose name this Bond is registered at the close of business on the fifteenth day (whether or not a business day) of the immediately preceding month. The interest hereon and, upon presentation and surrender hereof, the principal hereof are payable in lawful money of the United States of America by check or draft by U.S. Bank National Association, Saint Paul, Minnesota, as Registrar, Paying Agent, Transfer Agent and Authenticating Agent, or its designated. successor under the Resolution described herein. For the prompt and full payment of such principal and interest as the same respectively become due, the full faith and credit and taxing powers of the City have been and are hereby irrevocably pledged. The City may elect on February 1, 2019, and on any date thereafter to prepay Bonds due on or after February 1, 2020. Redemption may be in whole or in part and if in part, at the option of the City and in such manner as the City will determine. If less than all Bonds of a maturity are called for redemption, the City will notify Depositary Trust Company ("DTC") of the particular amount of such maturity to be prepaid. DTC will determine by lot the arr~ount of each participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed.. Prepayments will be at a price of par plus accrued interest. This Bond is one of an issue in the aggregate principal. amount of $ ,all of like original issue date and tenor, except as to number, maturity date, redemption privilege, and interest rate, all issued pursuant to a resolution adopted by the City Council on June 8, 2009 (the "Resolution"), for the purpose of providing money to aid in financing certain public redevelopment costs within the Downtown Central Business District Redevelopment Project in the City, pursuant to and in full conformity with. the home rule charter of the City and the Constitution and laws of the State of Minnesota, including Minnesota Statutes, Sections 469.1.74 to 469.1799, Sections 469.001 through 469.047, and Chapter 475, as amended, and the principal hereof and interest hereon are payable primarily from tax increments resulting from increases in +.,.r.. L.1.,. .. 1,,.,+;,.,.. ~.~ ..) n.-+.. +l,n TI k<fn+-f /('o.+~+~-nl A: Tnv Tnrrmim not r+'irs nt~nintr tanavt~, vatuuttvta vt r%ut prvpt.aty iia Latti. as-iaiuaw~,a+atci us <av'eisue au<s saavavasawasd r iaauaavaars District within the Project, as set forth in the Resolution to which reference is made for a full statement of rights and powers thereby conferred. The full faith and credit of the City are irrevocably pledged far payment of this Bond and the City Council has obligated itself to levy ad valorem taxes on all taxable property in the City in the event of any deficiency in tax increments pledged, which taxes may be levied without limitation as to rate or amount. The Bonds of this series are issued only as fully registered Bonds in denominations of $5,000 or any integral multiple thereof of single maturities. As provided in the Resolution and subject to certain limitations set forth therein, this Bond is transferable upon the books of the City at the principal office of the Registrar, by the registered owner hereof in person or by tl~e owner's attorney duly authorized in writing, upon surrender hereof together with a written instrulment of transfer satisfactory to the Registrar, duly 352698v2 AJP CL ] 62-44 7 101 executed by the registered owner or the owner's attorney; and may also be surrendered in exchange for Bonds of other authorized denominations. Upon such transfer or exchange the City will cause a new Band or Bonds to be issued in the name of the transferee or registered owner, of the same aggregate principal amaunt, bearing interest at the same rate and maturing an the same date, subject to reimbursement far any tax, fee or governmental charge required to be paid with respect to such transfer or exchange. The City and the Registrar may deem and treat the person in whose name this Band is registered as the absolute owner hereof, whether this Band is overdue or not, for the purpose of receiving payment and for all other purposes, anal neither the City nor the Registrar will be affected by any notice to the contrary. IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts, conditions and things required by the home rule charter of the City and the Constitution and laws of the State of Minnesota to be lane, to exist, to happen and to be performed preliminary to and. in the issuance of this Bond in order to make it a valid and binding general obligation of the City in accordance with its terms, have been done, do exist, have happened and have been performed as so required., and that the issuance of this Bond does not cause the indebtedness of the City to exceed any constitutional, statutory, or charter limitation of indebtedness. This Bond is not valid or obligatory for any purpose or entitled to any security or benefit under the Resolution until the Certificate of Authentication hereon has been executed by the Registrar by manual signature of one of its authorized representatives. IN WITNESS WHEREOF, the City of Columbia Heights, Anoka County, Minnesota, by its City Council, has caused this Bond to be executed on its behalf by the facsimile or manual signatures of the Mayor and the City Manager and has caused this Bond to be dated as of the date set forth below. Dated: CITY OF COLUMBIA HEIGHTS, MINNESOTA (Facsimile) (Facsimile) City Manager Mayor 352698v2 AJP CL162-~4 102 CERTIFICATE OF AUTHENTICATION This is one of the Bands delivered pursuant to the Resolution mentioned within. By U.S. BANK NATIONAL ASSOCIATION Authorized Representative The following abbreviations, when used in the inscription on the face of this Bond, will be construed as though they were written out in full according to applicable laws or regulations: TEN COM -- as tenants I1?1IF GIFT MIN ACT Custodian in common (Gust) TEN ENT -- as tenants under Uniform Gifts or by entireties Transfers to Minors JT TEN -- as joint tenants with right of survivorship and Act . . not as tenants in common (State) Additional abbreviations may also be used though not in the above list. ASSIGNMENT (Minor) For value received, the undersigned hereby sells, assigns and transfers unto the within Bond and all rights thereunder, and does hereby irrevocably constitute and appoint attorney to transfer the said Sond on the books kept for registration of the within Bond, with full power of substitution in the premises. 352698v2 AJP CL162-44 g 103 Dated: Notice: The assignor's signature to this assignment must correspond with the name as it appears upon the face of the within Bond. in every particular, without alteration or any change whatever. Signature Guaral,teed: NOTICE: Signature(s) must be guaranteed by a financial. institution that is a member of the Securities Transfer Agent Medallion Program (``STAMP"), the Stock Exchange Medallion Program ("SEMP"), the New York Stock Exchange, Inc. Medallion Signatures Program ("MSP") or other such "signature guarantee program" as may be determined by the Registrar in addition to, or in substitution for, STAMP, SEMP or MSP, ail in accordance with the Securities Exchange Act of 1934, as amended. The Registrar will not effect transfer of this Bond unless the information concerning the assignee requested below is provided. Name and Address: (Include information for all joint owners if this Bond is held by joint account.} Please insert social security or other iuti.~ce.~dyatib iauliav~,a va u~~abs~aJi PROVISIONS AS TO REGISTRATION The ownership of the principal of and interest on the within Bond has been registered. on the books of the Registrar in the name of the person last noted below. 352698v2 AJI3 CL 162-44 1(} 104 Date of Registration Registered Owner Cede & Co. Federal 1D #13-2555119 Signature of Officer of Registrar 3.02. Approving i.,e a~~ 1 Opinion. The City Finance Director is authorized and directed to obtain a copy of the proposed approving legal opinion of Kennedy & Graven, Chartered, Minneapolis, Minnesota, which is to be complete except as to dating thereof and to cause the opinion to be printed on or accompany each Bond. Section 4. Payment; Security; Pledges and Covenants. 4.01. Funds and Accounts. (a) Debt Service Fund. The Bonds are payable from the Taxable General Obligation Tax Increment Bonds, Series 20098 Debt Service Fund (the "Debt Service Fund") hereby created, and all Available Tax Increment (as defined in the Pledge Agreement] received by the City from the Authority pursuant to the Pledge Agreement is pledged to the Debt Service Fund. If a payment of principal or interest on the Bonds becomes due when there is not sufficient money in the Debt Service Fund to pay the same, the City Finance Director is directed to pay such principal or interest from the general fund of the City, and the general fund will be reimbursed for those advances out of the proceeds of Available Tax Increment when received. There is additionally appropriated to the Debt Service Fund proceeds of the Bonds in the amount of $ ,representing capitalized interest through August 1, 2012; and any rounding amount, to the extent directed for deposit therein by the City's financial advisor. (b} Froject Furrd. The proceeds of the Bonds, less the appropriations made in paragraph (a), together with any other funds appropriated for the Project, will be deposited in a separate Project Fund to be used solely to defray costs of the Project described in Section 1.01. hereof. When the identified activities are completed and the costs thereof paid, the Project Fund IJ CV VC G1lI3GU Q.ilU 61113' UzLtdI1GG 11161 Gin JI10.11 UL Uvposllvu Itl tl ll. tlLVt. 4JL.l YPh~+e 1 tutu. 4.02. No Tax Levy. It is determined that the estimated collection of Available Tax Increment for payment of principal and interest on the Bonds will produce at least five percent in excess of the amount needed to meet, when due, the principal and interest payments on the Bonds and that no tax levy is needed at this time. 4A3. County Auditor Certificate as to Registration. The City Finance Director is directed to file a certified copy of this Resolution with the County Auditor of Anoka County and obtain the certificate required by Minnesota Statutes, Section 475.63. 35269$v2 AJF' CL162-44 1 1 105 Section 5. Authentication of Transcript. 5.01. City Proceedings and Records. The officers of the City are authorized and directed to prepare and furnish to the Purchaser and to the attorneys approving the Bands, certified copies of proceedings and records of the City relating to the Bonds and to the financial condition and affairs of the City, and such other certificates, affidavits and transcripts as may be required to show the facts within their knowledge or as shown by the books and records in their custody and under their control, relating to the validity and marketability of the Bonds, and such instruments, including any heretofore furnished, will be deemed representations of the City as to the facts stated therein. 5.02. Certification as to Official Statement. The Mayor, the City Manager, and the City Finance Director are authorized and directed to certify that they have examined the Official Statement prepared and circulated in connection with the issuance and sale of the Bonds and that to the best of their knowledge and belief the Official Statement is a complete and accurate representation of the facts and representations made therein as of the date of the Official Statement. 5.03. Payment of Costs of Issuance. The City authorizes the Purchaser to forward the amount of Bond proceeds allocable to the payment of issuance expenses (other than amounts payable to Kennedy & Graven, Chartered as Bond Counsel) to Bank of America, N.A., on the closing date for further distribution as directed by the City's financial adviser, Ehlers & Associates, Inc. Section 6. Book-Entry System; Limited Obligation of City. 6.01. DTC. The Bonds will be initially issued in the form of a separate single typewritten or printed fully registered Bond for each of the maturities set forth in Section 1.04 hereof. Upon initial issuance, the ownership of each Bond will be registered in the registration ~+nnvarunt her too Aanicta-or in t~+c. nnmu n~ (~'a~~u ~r /~'n oo nnrninva fnr ~T~~~~n rlar~ncitnrcr Trraet vvvas.s asvi.sa. vy e,aav asv~aaeaesa aaa eaav aauaaav vs vvuv w vv., u.a aavaaaaaas.v ava Baas, vvrv.sasva3 aau.aa. Company, New York, New York, and its successors and assigns ("DTC"}. Except as provided in this Section, all of the outstanding Bonds will be registered in the registration books kept by the Registrar in the name of Cede & Co., as nominee of DTC. 6.02. Participants. With respect to Bonds registered in the registration books kept by the Registrar in the name of Cede & Co., as nominee of DTC, the City and the Registrar will have no responsibility ar obligation to any broker dealers, banks and other financial institutions from time to time for which DTC holds Bonds as securities depository (the "Participants") or to any other person on behalf of which a Participant holds an interest in the Bonds, including but not limited to any responsibility or obligation with respect to (i) the accuracy of the records of DTC, Cede & Co. or any Participant with respect to any ownership interest in the Bonds, (ii} the delivery to any Participant or any other person (other than a registered owner of Bonds, as shown 352698v2 A7P CL162-44 12 106 by the registration books kept by the Registrar) of any notice with respect to the Bonds, including any notice of redemption, or (iii) the payment to any Participant or any other person, other than a registered owner of Bonds, of any amount with respect to principal of, premium, if any, or interest on the Bonds. The Cit;~ and the Registrar may treat and consider the person in whose name each Bond is registered in the registration books kept by the Registrar as the holder and absolute owner of such Bond for the purpose of payment of principal, premium and interest with respect to such Bond, for the purpose of registering transfers with respect to such Bonds, and for all other purposes. The Registrar will pay all principal of, premium, if any, and interest on the Bonds only to or on the order of the respective registered. owners, as shown in the registration books kept by the Registrar, and all such payments will be valid and effectual to fully satisfy and discharge the City's obligations with respect to payment of principal of, premium, if any, or interest on the Bonds to the extent of the sum or sums so paid. No person other than a registered owner of Bonds, as shown in the registration books kept by the Registrar, will receive a certificated Bond evidencing the obligation of this resolution. Upon delivery by DTC to the City Finance Director of a written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., the words "Cede & Co.," will refer to such new nominee of DTC; and upon receipt of such a notice, the City Finance Director will prorriptly deliver a copy of the same to the Registrar. 6.03. Representation Letter. The City has heretofore executed and delivered to DTC a Blanket Issuer Letter of Representations (the "Representation Letter"} which shall govern payment of principal of, premium, if any, and interest on the Bonds and notices with respect to the Bonds. Any Registrar subsequently appointed by the City with respect to the Bonds will agree to take all. action necessary for all representations of the City in the Representation Letter with respect to the Registrar to be complied with at all times. 5.04. Transfers Outside Book-Entry System. In the event the City, by resolution of the City Council, determines that it is in the best interests of the persons having beneficial interests in the Bonds that they be able to obtain Bond certificates, the City will notify DTC, whereupon DTC will notify the Participants, of the availability through DTC of Bond. certificates. In such .-.4 41+0 ~;4<> ,:11 4..n ~~ .. .+~ nl,., o Rn„rl a+~4i~nntnc. nn rnni~mcta~ ~a~> T1T(-' nn~1 ~ni~ a.v%aat etao, <.sey `v`v taa iSSua°~, e.t aaa3as.i aaau exaJaauaage~ a.svaau v+.Ja e,aaavue+.~.s u.s ava~uv.sevu v~ aaas..~ ua:...: uar> other registered owners in accordance with the provisions of this Resolution. DTC may determine to discontinue providing its services with respect to the Bonds at any time by giving notice to the City and discharging its responsibilities with respect thereto under applicable law. In such event, if no successor securities depository is appointed, the City will issue and the Registrar will authenticate Bond certificates in accordance with this resolution and the provisions hereof will apply to the transfer, exchange and method. of payment thereof. 6.05. Payments to Cede & Co. Notwithstanding any other provision of this Resolution to the contrary, so long as a Bond is registered in the name of Cede & Co., as nominee of DTC, payments with respect to principal of, premium, if any, and interest on the Bond and notices with respect to the Band. will be made and given, respectively in the manner provided in OTC's Operational Arrangements, as set forth in the Representation Letter. 35269&v2 A7P CL162-4~ 13 107 Section 7. Continuing; Disclosure. 7.01. Ci Compliance with Provisions of Continuing; Disclosure Certificate. The City hereby covenants and agrees that it will comply with and carry out all of the provisions of the Continuing Disclosure Certificate. Notwithstanding any other provision of this Resolution, failure of the City to comply with the Continuing Disclosure Certificate is not to be considered an event of default with respect to the Bonds; however, any Bondholder may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the City to comply with its obligations under this section. 7.02. Execution of Continuing Disclosure Certificate. "Continuing Disclosure Certificate" means that certain Continuing Disclosure Certificate executed by the Mayor and the City Manager and dated the date of issuance and delivery of the Bonds, as originally executed and as it may be amended from time to time in accordance with the terms thereof. Section 8. Defeasance. ~i%hen ali Bonds and ail interest thereon have been discharged as provided in this Section, all pledges, covenants and other rights granted by this Resolution to the holders of the Bonds will cease, except that the pledge of the full faith and credit of the City for the prompt and full payment of the principal of and interest on the Bonds will remain in full force and effect. The City may discharge all Bonds which are due on any date by depositing with the Registrar on or before that date a sum sufficient for the payment thereof in full. If any Bond should not be paid when due, it may nevertheless be discharged by depositing with the Registrar a sum sufficient for the payment thereof in full with interest accrued to the date of such deposit. (The remainder of this page is intentionally left blank.) 3~2698v2 AJP CL162-44 1 ~, 108 The foregoing Resolution was introduced by Member and seconded by Member The following voted in favor of the Resolution: The following voted against: The following were absent: Adopted: June 8, 2009. ATTEST: Mayor City Clerk 352698v2 A1P CL162-44 15 109 STATE OF MINNESOTA } COUNTY OF ANOKA ) SS. CITY OF COLUMBIA HEIGHTS) I, the undersigned, being the duly qualified and acting Manager of the City of Columbia Heights, Anoka County, Minnesota, do hereby certify that I have carefully compared the attached and foregoing extract of minutes of a regular meeting of the City Council of the City held on Monday, June 8, 2009 with the original minutes on file in my office and the extract is a full, true and correct copy of the minutes insofar as they relate to the issuance and sale of Taxable General Obligation Tax Increment Bonds, Series 20098 of the City. WITNESS My hand officially as such City Manager and the corporate seal of the City this day of , 2009. City Manager City of Columbia Heights, Minnesota 352698v2 AJf' CL162-44 (SEAL) 110 STATE OF MINNESOTA COUNTY AUDITOR'S CERTIFICATE AS TO COUNTY OF ANOKA REGISTRATION WHERE NO AD VA>LOREI`~ TAB I.,E~~1' I, the undersigned County Auditor of Anoka County, Minnesota, Hereby certify that a resolution adopted by the City Council of the City of Columbia Heights, Minnesota, on June 8, 2009, relating to Taxable General Obligation Tax Increment Bonds, Series 2009B, in the amount of $ ,dated July 1, 2009, has been. filed in my office and said obligations have been registered on the register of obligations in my office. WITNESS My hand and official seai this day of , 2009. County Auditor Anoka County, Minnesota (SEAL) Deputy 352698v2 A3P CL162-44 111 EXHIBIT A PROPOSAL 3>269$v2 AJP CI.I62-44 112 Extract of Minutes of Meeting of the City Council of the City of Columbia Heights, Anoka County, Minnesota Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Columbia Heights, Minnesota, was duly held in the City Hall in said City on Monday, June 8, 2009, commencing at 7:00 P.M. The following members were present: and the following were absent: The Mayor announced that the next order of business was consideration of the proposals which had been received for the purchase of the City's $ Taxable General Obligation Tax Increment Bonds, Series 20098. The City Finance Bisector presented a tabulation of the proposals that had been received in the manner specified in the Official Terms of Proposal for the Bonds. The proposals are as set forth in Exhibit A attached. After due consideration of the proposals, Member then introduced the following written resolution, the reading of which was dispensed with by unanimous consent, and moved its adoption: 352698v2 AJP CL 16Z-44 113 TAX INCREMENT PLEDGE AGREEMENT by and between CITY OF COLUMBIA HEIGHTS, MINNESOTA and COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY THIS TAX INCREMENT PLEDGE AGREEMENT (this "Agreement"), is made and entered into as of the day of June, 2009, by and between the City of Columbia Heights, Minnesota (the "City"), and the Columbia Heights Economic Development Authority (the "Authority"). WHEREAS, the Authority and the City have established the Downtown CBD Redevelopment Project (the "Project") pursuant to Minnesota Statutes, Sections 469.001 through 469.047, as amended; and WHEREAS, within the Project the Authority and the City have established the KmartJCentral Avenue Tax Increment Financing District (the "TIF District") pursuant to Minnesota Statutes, Sections 469.174 through 469.1799, as amended (the "TIF Act"}; and WHEREAS, pursuant to authority conferred by Section 469.178 of the TIF Act and Minnesota Statues, Chapter 475, the City has determined to finance certain redevelopment activities within the Project through the issuance of its Taxable General Obligation Tax Increment Financing Bonds, Series 20098 in the principal amount of $ (the "Bonds"); and WHEREAS, the Authority has agreed to pledge certain tax increment revenues from the TIF Tl;~t«;nt t., tl.n !`;ta. ~ ,~ tl,n amt ~f tea +~r;nn;r~nl n~ n+-va intnra.c+t nre t~tca Rnr+rlc nc 'Fiart~nr raacnrihP~ LtJ4t 1Ll tv t11L \..t t3' tva talV paytititaL Vl taiv Fla latLaFlala vi uaau aaawa vJi vat uav slvaavu, uu aua uava uv.ovsavu~.n herein; and WHEREAS, pursuant to Section 469.178, Subdivision 2 of the TIF Act, any pledge of tax increment revenues for the payment of the principal of and interest on the Bonds must be made by written agreement by and between the Authority and the City and must be filed with the County Auditor of Anoka County; NOW, THEREFORE, the City and the Authority mutually agree to the following: (1} The City will sell the Bonds and deposit the net proceeds thereof in the Project Fund established in the resolution awarding sale of the Bonds (the "Bond Resolution"), for disburseFnent to pay costs of the Project described in the Bond Resolution. 352698v2 A3P CL162-44 114 (2) Far the purposes of this Agreement, the term "Available Tax Increment" means all tax increments as defined in Section 469.174, subd. 25 (1) ("Tax Increment"} derived from all property in the TIF District, except any Tax Increment that is both (a} derived from Block 1, Outlot A and. Outlot C, Grand Central Lofts and from Blocks l through 7 and Outlot B, Grand Central Lofts Second Addition (together, the "Pledged Property"), and (b) pledged to any revenue rYote or contractual payment obligation between the Authority and a developer regarding the Pledged Property or portions thereof, issued or entered into before or after the date of this Agreement. (3) The Authority hereby pledges to the payment of the principal and interest on the Bonds Available Tax Increment in an amount sufficient to pay 1 OS% of debt service due on the Bonds from time to time. (4) Not less than three (3) business days prior to each debt service payment date for the Bonds, there shall be transferred from the fund of the TIF District to the debt service fund maintained by the City for the payment of the Bonds an amount of Available Tax Increment that, when taken together with amounts already on deposit in such. debt service fund, is equal to 105% of principal of and interest on the Bonds when due or to become due on the following date. Any Available Tax Increment in excess of 105% of the principal and interest due on the Bonds may be retained by the Authority and. applied to any purpose in accordance with law. (5) Available Tax Increment shall be available (at the Authority's option on a parity, superior or subordinate basis} to pay principal of and interest on both the Bonds and any other obligations issued by the City, the Authority or any other public body to finance public redevelopment casts paid ar incurred by the City or the Authority in the Project. The Authority reserves the right to release all or any portion of Available Tax Increment from the pledge under this Agreement (including without limitation the release of Tax Increment from any specified parcel within the TIF LYJti 1LLf Ll3 LtYY O.RLl.11L ~.1L11111 LLLtt V}'~ YLLeVV, pia V~lLiLLA L1aGtL ail aiv ee~eaiL taa'u`y coal. a zusaavaady reduce the pledge such that Available Tax hlerement is reasonably expected to pay less than 20 percent of principal and interest on the Bonds. (6) An executed copy of this Agreement shall be filed with the County Auditor of Anoka County pursuant to the requirement contained in Section 469.178, Subdivision 2 of the TIF Act. 352698v2 AJP CL162-44 2 115 IN WITNESS WHEREOF, the City and the Authority have caused this Agreement to be duly executed on their behalf and their seals to be hereunto affixed and such signatures and seals to be attested, as of the day and year first above written. ATTEST: CITY OF COLUMBIA HEIGHTS, MINNESOTA City Manager Mayor (SEAL) ATTEST: COLUMBIA HEIGHTS ECONONIIC DEVELOPMENT AUTHORITY Executive Director President (SEAL} 3~2698v2 AJP CL162-44 3 116 STATE OF MINNESOTA COUNTY OF ANOKA COUNTY AUDITOR'S CERTIFICATE I, the undersigned County Auditor of Anoka County, Minnesota, hereby certify that a Tax Increment Pledge Agreement by and between the City of Columbia Heights, Minnesota and the Columbia Heights Economic Development Authority dated , 2009 and relating to $ Taxable General Obligation Tax Increment Bands, Series 20098, dated July I, 2009, has been f led in my office. V`JITNESS n;y l;ai;d and off-,ciai seal this _ day of , 2009. (SEAL) County Auditor Anoka County, Minnesota By Deputy 3`2698v2 AJP CL162-44 117 CITY COUNCIL LETTER Meeting of June 8, 2009 AGENDA SECTION: Resolutions ORIGINATING DEPARTMENT: CITY Fire MANAGER NO: APPROVAL ,~ ITEM: Adopt Resolution Far BY: Gary Garman BY ~- °` Revocation G j j DATE: June 4, 2009 DATE: NO: 09-79 to 09-81 Revocation of the license to operate a rental unit within the City of Columbia Heights is requested against rental properties at 2009-79 - 4138 Quincy Street 2009-80 - 3915 Tyler Street 2009-81 - 4344 2"d Street 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 Numbers 2009-79, 80, and 81 being ample copies available to the public. RECOMMENDED MOTION: Move to adopt Resolution Numbers 2009-79, 80, and 81 being Resolutions of the City Council of the City of Columbia Heights approving revocation pursuant to City Cade, Chapter SA, Article IV, Section SA.408(A~ of the rental licenses listed. COUNCIL ACTION: 118 RESOLUTION 2009-79 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 Ali Mirdanadi {Hereinafter "License Holder"). Whereas, license holder is the legal owner of the real property located at 4138 Quincy 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 May 12, 2009 of an public hearing to be held on June 8, 2009. 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 January 12, 2009 inspectors for the City of Columbia Heights, inspected the property described above and noted 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 March 20, 2009 inspectors for the City of Columbia Heights performed a reinspection and noted that violations remained uncorrected. 3. That on May 12, 2009 inspectors for the City of Columbia Heights performed a final inspection at the property and noted 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 'apon 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. Shall remove the electrical 6 plea from the outlet at washer/dryer b. Clearout plug missing from floor drain. Replace cover c. Sump pump pit not properly installed d. Laundry room waste piping Fernco fitting is upside down wye with CO plug. This is not allowed e. Laundry tub has flexible waste pipe. This is not allowed f. GFI outlet required within 6 feet of kitchen sink g. Light switch plate is too small in hallway h. Tempered glass is required in window at top of stairway i. Smoke detector and CO detector are missing from haiiway j. Trap for tub is leaking into basement ceiling. Repair and also install access panel k. Exhaust fan grille is not in place for mechanical exhaust 1. Door knob in bathroom is loose m. Repair wallboard in bedroom 119 n. Switch plate is to small in BR o. Smoke detectors are missing in 2 BR's p. Cover plate missing on outlet in porch q. Intall lights in storage room r. Vacuum breaker is missing from. outside faucets s. Shall replace the garage slab t. Shall mount the handrail on the basement stairway u. Shall replace the broken window and screen in the NW bedroom 5. That ail 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 F9373 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. Ail 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 2009 Offered by: Secand by: Rail CaII: Mayor Gary L. Peterson Attest: Patricia Muscovitz, CMC City Clerk 120 RESOLUTION 2009-80 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 Patricia Eligio Rubio (Hereinafter "License Holder"). Whereas, license holder is the Legal owner of the real property located at 3915 Tyler Strreet 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 May 18, 2009 of an public hearing to be held on June 8, 2009. 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 or about May 1, 2009, inspection office staff sent a letter requesting the owner of the property to submit a rental license application and schedule a rental inspection for this property. The letter was mailed by regular mail to the owner at the address listed in the property records. 2. That on May 18, 2009 inspection office staff reviewed the property file and noted that the property remained unlicensed. A Statement of Cause was mailed by regular snail 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- wn: a. Failure to schedule a rental property inspection. b. Failure to submit renewal rental license application and fees 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 5A.303(A). ORDER OF COUNCIL 1. The rental license belonging to the License Holder described. herein and identified by license number U3915 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; Ail. 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, 121 Passed this day of 2009 Offered by: Second by: Roil Call: Mayor Gary L. Peterson Attest: Patricia Muscovitz, CMC City Clerk 122 RESOLUTION 2009-81 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 Fredrick Sila (Hereinafter "License Holder"}. Whereas, license holder is the legal owner of the real property located at 4344 2nd 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 May 12, 2009 of an public hearing to be held on June 8, 2009. 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 7, 2009 inspectors for the City of Columbia Heights, inspected the property described above and noted 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 11, 2009 inspectors for the City of Columbia Heights performed a reinspection and noted that violations remained uncorrected. 3. That on May 12, 2009 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- ~JIt: a. Install. proper floor drain with grate in basement b. Install trap on bathtub. Support waste pipe from kitchen. ABS & PVC cannot be used together. Must vent laundry tub, bathtub, sink, and shower. c. Water piping is only 1!2 inch for entire house. 3!4 it;ct-i pipe rewired from water meter to water heater. 3/4 inch pipe required from water heater to first "t", 3/4 inch cold water pipe required to first "t" after water heater. d. Install vacuum breaker at laundry tub. e. Support gas piping at gas dryer. Install shut off valve. f. Need 3!4 inch feed from water meter. g. A GFCI outlet is regd. within 6 ft of kitchen sink. h. Repair/replace flex waste pipe-not to code. i. Need GFCI outlet within b feet of 'bathroom sink. ~. Add outlets per code. k. Remove bed. from attic space. 1. Remove camper from yard.. m. Need closes on front screen door. n. Repairlreplace front stoop. 123 o. Install rainproof flue cap. p. Install vacuum breaker on outside faucet. q. Repairlseplace shingles on garage r. Repair/replace siding on garage. s. Interior of garage must be inspected at next inspection. t. Remove scrub growth. u. Smoke detectors required in each sleeping room, adjacent hallway and. each story of residence. 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 F9560 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 2009 Offered by: Second by: Roli Call: Mayor Gary L. Peterson Attest: Patricia Muscovitz, CMC City C'terk 124 CITY COUNCIL LETTER Meeting of June 8, 2009 AGENDA SECTION: Public ORIGINATING DEPARTMENT: CITY Hearings Fire MANAGER NO: APPROVAL ITEM: Adopt Resolution For BY: Gary Gorman BY: ~ Abatement DATE: June 4, 2009 DATE: NO: 09-76 to 09-78 Declaration of a nuisance and abatement of violations within the City of Columbia Heights is requested regarding properties at 2009-76 - 4039 5th Street 2009-77 - 4448 Quincy Street 2009-78 - 3930 University Avenue for failure to meet the requirements of the Property Maintenance Code. RECOMMENDED MOTION: Move to close the public hearing and to waive the reading of Resolution Numbers 2009-76, 77, and 78 there being ample copies available to the public. RECOMMENDED MOTION: Move to adopt Resolution Numbers 2009-76, 77, and 78 being resolutions of the City Council of the City of Columbia Heights declaring the properties listed a nuisance and approving the abatement of violations from the properties pursuant to City Code section 8.206. COUNCIL ACTION: 125 RESOLUTION 2009-76 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 Evelyn M. Granvoos (Hereinafter "Owner of Record."). Whereas, the owner of record is the legal owner of the real. property located at 4039 5th 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 regular mail to the owner of record on May 22, 2009. 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 December 13, 2008 the Fire Department responded to a fire at the address listed above. After the situation was under control the Fire Chief ordered an immediate abetment and that the building be secured. The owners were not able to secure the building. The Fire Chief ordered DuA11 Services to respond to the scene and secure the building with plywood. 2. That on xxxxxxx, 20098 DuAll Services contacted the Fire Department and advised the Fire Chief that they were unsuccessful in getting paid from the homeowners insurance company. 3. That on May 22, 2009 the Fire Department sent statement of cause to the registered owner of the property at the address listed in the Anoka County Property Records database. 4. That based upon said. records of the Fire Department, the following conditions and violations of City Codes(s) were found to exist and have been abated, to wit: A. Approve the immediate abatement of the hazardous situation located at 4039 5th Street N.E. 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 o ^nu n ~ „_a o ~ncin~ o.~vv~r~~ niiu o.~.vv~u j. CONCLUSIONS OF COUNCIL That the property located at 4039 5~' 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. 126 ORDER OF COUNCIL 1. The property located at 4039 5`h Street N.E.constitutes anuisance 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 2009 Offered by: Second by: Roil Call: Mayor Gary L. Peterson Attest: Patricia Muscovitz, CMC City Clerk 127 RESOLUTION 2009-77 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 Crty Code, of the property owned by Federal Home Loan Mortgage (Hereinafter "Owner of Record"). Whereas, the owner of record is the legal owner of the real property located at 4448 Quincy 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 regular mail to the owner of record on May 22, 2009. 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 nn May 22, 2009 the Fire Department responded to a complaint that the building located at 4448 Quincy Street N.E. was abandoned and unsecured. Inspectors found the building open and unsecured. The Fire Chief ordered an immediate abetment and that the building be secured. The Fire Chief ordered DuAll Services to respond to the scene and secure the building. 2. That on May 22, 2009 the Fire Department sent statement of cause to the registered owner of the property at the address listed in the Anoka County Property Records database. 3. That based upon said records of the Fire Department, the following conditions and violations of City Codes(s) were found to exist and have been abated, to wit: A. Approve the immediate abatement of the hazardous situation located at 4448 Quincy Street N.E. 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 4448 Quincy 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 128 The property located at 4448 Quincy Street N.E.constitutes anuisance 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 2009 Offered by: Second by: Roll Call: Mayor Gary L. Peterson Attest: Patricia Muscovitz, CMC City Clerk 129 RESOLUTION 2009-78 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 Crty Code, of the property awned by Gregory Stull (Hereinafter "Owner of Record"). Whereas, the owner of record is the legal owner of the real property located at 3930 University 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 regular mail to the owner of record on Apri16, 2009. 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 25, 2009 the Fire Department responded to a complaint that the building located at 3930 University Avenue N.E. was abandoned and unsecured. Inspectors found the building open and unsecured. A notice was sent to the owners of record for the property. 2. That on March 31, 2009 the Fire Department reinspected and found the building unsecured. A notice was sent to DuAll Services to abate the violations at the property per city policy. 3. That on April 6, 2009 DuAll Services performed the work and secured the building. The Fire Department sent statement of cause to the registered owner of the property at the address listed in the Anoka County Property Records database. 4. That based upon said records of the Fire Department, the following conditions and violations of City Codes(s) were found to exist and have been abated, to wit: A. Approve the immediate abatement of the hazardous situation located at 3930 University Avenue N.E. 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 4.2vv(A) slid v4.2vv(R). CONCLUSIONS OF COUNCIL 1. That the property located at 3930 University 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 Dave been exercised and completed. 130 ORDER OF COUNCIL 1. The properly located at 3930 University 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 2009 Offered by: Second by: Ro11 Call: Mayor Gary L. Peterson Attest: Patricia Muscovitz, CMC City Clerk 131 CITY COUNCIL LETTER MEETING OF: JUNE 8.2009 AGENDA SECTION: PUBLIC HEARINGS ORIGINATING DEPT: CITY FINANCE MANAGER NO: APPROVAL ITEM: RESOLUTION AWARDING THE SALE OF BY: WILL IAM ELRITE BY: $3,935,000 IN GENERAL OBLIGATION PUBLIC FACILITIES BONDS, SERIES 2009A AND $930,000 DATE: JUNE 3, 2009 IN GENERAL OBLIGATION TAXABLE TAX INCREMENT FINANCING BONDS, SERIES 2009B Previously the City Council adopted Ordinances 1563 and 1564 authorizing the sale of bonds. The second reading of these ordinances was held on April 27, 2009. The sale of the bonds is scheduled for June 8, 2009. The attached resolution authorizes and awards this sale. At the meeting of June 8, 2009 the City Bond Counsel will distribute a copy of the resolution with the final amounts filled in. The Bond Counsel will also provide the detailed sales results at that meeting. Attached is a draft of the resolution that will be presented for adoption at the meeting. RECOMMENDED MOTION: Move to waive the reading of Resolution 2009-74, there being ample copies available to the public. RECOMMENDED MOTION: Move to adopt Resolution 2009-74 being a resolution awarding the sale of $3,935,000 in General Obligation Public Facilities Bonds, Series 2009A. RECOMMENDED MOTION: Move to waive the reading of Resolution 2009-75, there being ample copies available to the public. RECOMMENDED MOTION: Move to adopt Resolution 2009-75 being a resolution awarding the sale of $930,000 in General Obligation Taxable Tax Increment Financing Bonds, Series 2009B. RECOMMENDED MOTION: Move to authorize and approve the Tax Increment Pledge Agreement by and between the City of Columbia Heights, Minnesota and the Columbia Heights Economic Development Authority. WE:sms 0906031 COUNCIL Attachment: Resolution 2009-74 Resolution 2009-75 Tax Increment Pledge Agreement COUNCIL ACTION: `~ ~ ,~; ~, =y ~~~` ~ ~..~ _ a ~ ,~.- .,,.~ ,~ _ _ - r _~~~;~i~~~``~-I~1C~ C~~~C,i'~ ~ ~ ti~s~r~r~e~cat~ pho€~e 651-691-8500 3060 Centre 1='ointe drive i Enoras w Puei is rirdnNCe Offices also fn Wisconsin and Illinois tai, 651-G97-8555 l3oseville, MN 55113 -11 ^^ -1- ~: F 5-.._._.,_.f s.........,. __... ~~~~~ ~~~~~ ~~ ~l~viCle P R Fe ~tarpcrse: 'l~o finance the remaining costs of a new ~ubhc safety center for the po}ice and ~f"ire de1~al~tments, energy imprc~x~ements to Tr~2urzyn Flall. water improveznetit projects, and the 2007 and 2609 street assessments. Standard & I'oor's "AA-. 5 Cronin ~ Co.. Inc. 4.1569°%~ Surr~rr~ary of Results: PrincipaE Amount discount Allowance: True Interest Cost: Capitalized Interest: Cost of Issuance: Coupon Rates: ~~~s~n Date Laver Bid High Bid Interest Savings 4.1569% 4.3594°,0 $82.675 Pr-a~ectect Resuit~ of Bale IOifferersce $3,935,000 $3,835,000 $0 $49,188 b39,232 -$9,956 4.8193% 4.1599% -0.66% $93,178 $73,859 -$19,319 $42,000 $40,150 -$1,850 2.00% - 5.65% 2.00% - 4.75% Duly 1.2oay ~purt~il A~1ion: A Resolution Awarding the Sale of $3,935,000 General Obli~~ation Public T'acilities Bonds. Series 2009A; Fixing Their Form and Specifications; Directing Their Execution and Delivery; And Pf•oviding for 'Their Payment. ~,ttachrrtet~ts: ~ Bid Tabulation Rating Report Updated Debt Service Schedule Bond Resolution k ~ f~~~inr~esc~t~ pore 651-697-8500 3060 Centre Poinie Drive ~ FnoFas iN aut~ric FinnncE Offices also in Wisconsin and Illinois f~%: 651-697-855,5 Roseville, MN 55113-11 "" -2- I ;3900` ene~s ~ ® atfc~n P~ablfo aoil~tEe ns9 erie 20 Cf C ~l1 f Fi lGE~Tq l__-- ~ °~, SA~Eo June 8, 2009 ARC?. CR©NIN & COlt~PANY, iNC. 1°!lVe Standard & Poor's Credit l~iarkets "°` BBf: 4.71 NET T'RlJE ~ E ~F f3lCtER ~Tl1RlTY TE REC3FFERl~l PRICE lNTER1" lNTRET (February 1} YIELE CS'f TE CRONiN & COMPANY, INC. 2010 2.000% 1.250% $3,937,206.20 $2,104,368.29 4.1569% Minneapolis, Minnesota 2011 2.000% 1.500% WEDS FARGO BROKERAGE SERVICES, LLC 2012 2A00% 1.750% Minneapolis, Minnesota 2013 2.250% 2.000% 2014 3.000% 2.400% 2015 3.000°/a 2.750% 2016 3.250% 3.000% 2017 3.500% 3.150% 2018 4.000% 3.400% 2019 4.000% 3.600% 2020 4.000% 3.750% 2021 4.060% 3.900% 2022 4.000% 4.000% 2023** 4.100% 4.100% 2024** 4.100% 4.100% 2025*** 4.250% 4.000% 2026'** 4.250% 4.250% 2027*'* 4.250% 4.250% 2028**** 4.500% 4.500% 2029**"* 4.500% 4.500% 2030**** 4.500°/a 4.500% 2031 ***** 4.625% 4.625°l0 2032*'*** 4.625% 4.625% 2033***** 4.625% 4.625% 2034****** 4.750% 4.750% 2035*"°*"* 4.750% 4.750% 2036***`** 4.750% 4.750% 2037***`** 4.750% 4.750% 2038****** 4.750% 4.750% *Subsequent to bid opening the 2011 maturity decreased $10,000 to $185,000, the 2012 maturity decreased $10,000 to $190,000, the 2015 maturity decreased $10,000 to $205,000, the 2019 maturity increased $10,000 to $200,000 the 2021 maturity increased $5,000 to $140,000 the 2022 maturity increased $5,000 to $140,600 the 2023 maturity increased $5,000 to $150,000 and the 2027 maturity increased $5,000 to $75,000 in maturity value. Adjusted Price - $3,937,298.20 Adjusted Net Interest Gast - $2,116,955.67 Adjusted T!C - 4.1599% `*$300,000 Term Bond due 2024 with mandatary redemption in 2023 (Adjusted amount of $305,000) ***$205,000 Term Bond due 2027 with mandatory redemption in 2025-2026 (Adjusted amount of $210,000} ****$240,000 Term Bond due 2030 with mandatory redemption in 2028-2029 *'~**$285,000 Term Bond due 2033 with mandatory redemption in 2031-2032 ******$580,000 Term Bond due 2038 with mandatory redemption in 2034-2037 i a ~ ~ ~ ~ ~ ~ __ ____ --- - __ _ - __ ~ ~ g -° ~€innesota 651-697-8500 3060 Centre Pointe Drive ~EaoFr iN Pue~~c FiNUNCF ~~ffices also ire ~Niscor~sin and Illinris fax 651-697-8555 Roseville, Mfg 561 1 3-1 1 22 -3- ~,9~b,00~ General Dbligatian I~ublic Facilities Rc~nels, Series 2®09A Page 2 City of Columbia Heights, Minnesota NET TRt1E NAME ®F BIDDER MATiJRITY RATE REOFFERING FRICE INTEREST INTEREST (February 1) YIELD COST RATE RBC CAPITAL MARKETS 2010 3.000% $3,944,132.30 $2,109,952.95 4.1758% Minneapolis, Minnesota 2011 3.000% 2012 3.000% 2013 3.000% 2014 3.000% 2015 3.000% 2016 3.000% 2017 4.000% 201$ 4.000% 2019 4.000% 2020 4.000% 2021 4.000% 2022 4.000% 2023 4.000% 2024 4.125% 2025 4.300% 2026 4.400% 2027 4.500% 2028 4.500% 2029 4.500% 2030 4.600% 2031 4.600% 2032 4.600% 2033 4.600% 2034 4.600% 2035 4.700% 2036 4.700% 2037 4.700% 2038 4.700% NORTHLAND SECURITIES, INC. 2010 3.000% $3,885,812.50 $2,141,559.38 4.2654% Minneapolis, Minnesota 2011 3.000% 2012 3.000% 2013 3.000% 2014 3.000% 2015 3.000% 2016 3.000% 2017 3.200% 2018 3.400% 2019 3.600% 2020 3.700% 2021 3.800% 2022 3.900% 2023 4.000% 2024 4.100% 2025 4.200% 2026 4.200% 2027 4.350% 2028 4.350% 2029 4.500% 2030 4.500% 2031 4.600% 2032 4.600% 2033 4.700% 2034 4.700% 2035 4.800% 2036 4.800% 2037 4.900% 2038 4.900% -4- UBS FINANCIAL SERVICES INC. 2010 2.000% New York, New York 2011 2.500% 2012 3.000% 2013 3.000% 2014 3.000% 2015 3.500% 2016 3.500% 2017 3.750% 2018 4.000% 2019 4.000% 2020 4.000% 2021 4.000% 2022 4.000% 2023 4.000% 2024 4.000% 2025 4.125% 2026 4.250% 2027 4.375% 2028 4.500% 2029 4.500% 2030 4.500% 2031 4.625% 2032 4.750% 2033 4.750% 2034 4.750% 2035 4.750% 2036 4.875% 2037 4.875% 2038 5.000% ROBERT W. BAIRD & CO. 2010 2.000% Milwaukee, Wisconsin 2011 2.000% 2012 2.250% 2013 2.500% 2014 3.000% 2015 3.000% 2016 3.250% 2017 3.500% 2018 3.500% 2019 3.750% 2020 4.000% 2021 4.000% 2022 4.000% 2023 4.100% 2024 4.100% 2025 4.400% 2026 4.400% 2027 4.400% 2028 4.400% 2029 4.400% 2030 5.000% 2031 5.000% 2032 5.000% 2033 5.000% 2034 5.000% 2035 5.000% 2036 5.000% 2037 5.000% 2038 5.000% $3,899,425.05 $2,1$7,043.28 4.3594% $3,898,487.20 $2,205,296.55 4.3691% -5- ~ pry: '~ Primary Credit Analyst: Caroline West, Chicago 312-233-1047; Caroline_west~?standardandpoors com Secondary Credit Analyst: Steffanie Dyer, Chicago ~1 ~ 312-233-7007; steffanie_dyer@standardandpoors.com ~"a~~1c f C;c~~tcnts Rationale Outlook Related Research www.standardandpoors.cam/ratingsdirect Standard & Pnnr's All rigFts resetied. No repnrd ur dissemina?inn withrnrt Sf~P's Gennissmn See Trams of U::e/Disclaimer an the last page -6- rrlmr: ~1a1~ US$4.645 mil GO pub facs & taxable GO tax increment beds set 2009A&B dtd 07/12/2009 due 07/01/2038 Long Term Rating ~~3tI0Il~le AA/Stable New The 'AA' long-term rating assigned to Columbia Heights, Minn.'s series 2009A general obligation (GC)) public facilities bonds and series Z009B taxable GO tax increment bonds reflects the following credit dualities, in Standard & Poor's Kating Services' opinion: • Very close proximity to Minneapolis-St. Paul with strong participation in the metropolitan economic base, including access to ample employment opportunities; • Income and wealth indicators ranging Isom adequate to very strong; • F iealthy finances as demvnstr~~~teci by a very strong fond balance; and • Good financial management planning and procedures, which have sustained the city's good financial standing and provide further. stability; and 1"he city's full GU ad valorem pledge secures both series of bonds. Proceeds from the 2009A series will finance a variety of projects, including a new public safety center, street and water infrastructure improvements, and renovations to a community building. The 2009B bonds will fund the acduisition of structures within a tax increment district. C;olumhia Heights is located just four miles outside Minneapolis in Anoka County (AAA/Stable). A fully developed, inner ring suburb, the city has maintained a fairly stable population over the past decade, sliding 2"/~ since 2000 to reach 17,963 currently. Residents are in close proximity to a wide variety of industries within the metropolitan area, and ahigh-speed commuter rail station set to open in the fall will further improve access. Income levels in the city are adequate-to-good in our view, with a median household and per capita effective buying income at 87°lo and 95%> of national levels. Because the city is mostly built-out, tax base growth has occurred primarily through residential tear-downs and fill-in development. Such improvements resulted in steady net tax capacity growth through 2008. In 2009, the city felt the impact of overall softening in the housing market, and net tax capacity slipped 1 % to $15.66 billion. Indicated market value, a measure of true property value, remains very strong on a per capita basis in our opinion, however, at $86,700. Due to the city's good planning and management practices, the finances have been historically strong. At fiscal year-end 2007 (Dec. 31 ), the general fund balance held $3.9 million in unreserved funds. At 47% of expenditures, we view this level as very strong. Unaudited results for 2008 show a $229,000 reduction in these reserves, which can be linked directly to a year-end unallottment of local government aid (LGA) from the state of $328,000. In fiscal Standard ~ Poor's RatingsDirect ~ June 8, 2009 Standard E~ Poar's All rights rrserved Nu repent or dissen~~inau~m without S&P's pern~issmn. See Terms of Use/Disrfain~er on the last page. -7- Sr~snrn~zry: ~;r,~hinrbi~z Hei~l~ts, Minru>suta, General Uhli~ztrr,n 2009, officials are preparing for a severe Ions of LGA and have accordingly sharply cut expenditures by $900,000 (nearly 10°~~, of the budget}. The city has redt~ieed programs, left positions open through attrition, and requested employees take a furlough. As a result, management expects an operating surplus or, at worst, abreak-even year, depending on the level of LGA reduction. The city's financial forecast includes a use of fund balance in 2010 and 2011 as the city reduces its dependence on state aid. Columbia Ncight's management practices are considered "good" under Standard & Poor's Financial Management Assessment (FMA). An FMA of good indicates that practices exist in most areas, although not all may be formalized or regularly monitored by governance officials. The city engages in extensive planning, including along-term financial plan through 2013 as we]1 as a detailed five-year capital improvement plan. Both documents are updated annually and aid in budget planning. TI7e city council maintains a policy to keep a minimum 4.5% of the proceeding year's expenditures in reserves. In our opinion, the city's overall debt laurden is moderate at $2,850 per capita and 3.3`% of the total market value. Roughly half of the city's debt is supported by revenues, special assessments, or tax increments, which reduces the tax lew requirements on the overall tax base. 'I"he portion of operating expenditures devoted to c{ebt service costs was high at 22.7"/~ in 2007, in our view. Amortization is average; 49°/<, of the city's direct debt is due to mature within I0 years and 91 `% within 20 years. The city has no additional plans to issue debt. ~Ut~OO~c The stable outlook reflects Standard ~ Poor's expectation that management will crmtinue to engage in extensive planning in order to respond to potential revenue decreases related to slipping net tax capacity and reductions in state aid. We expect the city to maintain its long-term focus on maintaining at least a good reserve level. 'The city's close proximity to Minneapolis and its participation in the metropolitan economic base provide further stability to the rating. ~~~~t~a r~L~~~r~~I USPI= Criteria: "GO llebt," Oct. 12, 2006 Complete ratings information is available to RatingsDirect subscribers at www.ratingsdirect.com. All ratings affected by this rating action can Ile found on Standard & Poor's puhhc Web site at wwwatandardandpoors.com; under Ratings in the left navigation bar, select Find a Rating. wwwstandardandpoors.com/ratingsdirect Standard & Four s. All rights ~aserved No reprint or disseminatitm without S&P's permission See Terms of Use/Disdairner on the last page. -~- City of Columbia eights, i>~i>~esota $3,935,000 G.~. Public Facilities Bonds, Series 09A Cronin & Co., Inc. Arbitrage ~~ a lC ~ lil~ Part 1 of 2 Date Principal Coupon Interest Total P+I Fiscal Total 07/01 /2009 - - - _ _ 02!0112010 40,000.00 2.000% 85,683.65 125,683.65 12.5,683.65 08/01/2010 - - 73,043.13 73,043.13 - 02/O1/2011 185,000.00 2.000% 73.043.13 258,043.13 33],086.26 08/01/201 1 - - 71.193.13 71,193.13 - 02/01/2012 190,000 00 2.000% 71,193.13 261,193.13 332,386.26 08/01/2012 - - 69,293.13 69.293.13 - 02/O1/2013 200,000.00 2.250% 69,293.13 269.293.13 338.586.26 08/01/2013 - - 67.043.13 67,043.13 - _ 02/01(2014 205.000.00 3.000% 67.043.13 272.043.13 339,086.26 08/01/2014 - - 63,968.13 63,968.13 - 02/01/2015 205,000.00 3.000% 63.968.13 268,968.13 332,936.26 08/01/2015 - - 60,893.13 60,893.13 - 02/01/2016 220,000.00 3.250% 60,893.13 280,893.13 341,786.26 08/01 /2016 - - 57,318.13 57,318.13 - 02/01/2017 225,000.00 3.500% 57.318.13 282,318.13 339,636.26 08/01 /2017 - - 53.380.63 53,380.63 - OZl01/2018 235,000.00 4.000% 53.380.63 288,380.63 341,761.26 08/01 /20 i 8 - - 48,680.63 48,680.63 - 02/01/2019 200,000.00 4.000% 48.680.63 248,680.63 297.361..26 08/01/2019 - - 44,680.63 44,680.63 - 02/O1/2026 130,000.00 4.000% 44,680.63 1.74,680.63 219,361.26 08/01/2020 - - 42,080.63 42.080.63 - 02/Ol/2028 140,000.00 4.000% 42,080.63 182,080.63 224,161.26 _ 08/01/2021 - - 39,280.63 39,280.63 - 02/01/2022 140.000.00 4.000% 39,280.63 179,280.63 218,561.26 08/01/2022 - - 36,480.63 36,480.63 - 02/O1/2023 150,000.00 4.100% 36,480.63 186,480.63 222,961.26 08/01/2023 - - 33,405.63 33,405.63 - 02/Oi/2024 155,000.00 4.100% 33,405.63 188,405.63 221,811.26 08/01/2024 - - 30,228.13 30,228.13 - 02/O1l2025 65,000.00 4.250% 30.228.13 95,228.13 125,456.26 08/01 /2025 - - 28,846.88 28, 846.88 - 02/01/2026 70,000.00 4.250% 28,846.88 98,846.88 127,693.76 08/01/2026 - - 27,359.38 27,359.38 - 02/O1/2027 75,000.00 4.250% 27.359.38 102 359.38 129.718.76 08/01/2027 - - 25,765.63 25,765.63 - 02/Oi/2028 75,000.00 4.500% 25.765.63 100,765.63 126,531.26 08/01/2028 - - 24,078.13 24,078.13 - _02/Oi/2029 80,000.00 4 500% 24 078;13 ___ 104,078.13 128,156.26 08/01/2029 - - 22,278.13 22,278. ] 3 - 02/O1/2030 85,000.00 4.500% 22,278.13 107,278.13 ]29,556.26 08/01/2030 - - 20,36>.63 20.365.63 - 09S3935m.jui ~ SINGIE PURPOSE ~ 6/ 8!2009 ~ 3:06 PM • ~ • ~ ~ .~- -9- City of Col>i~mhia eights, Minnesota $3,935,000 CT.O. Public Paciiities Bonds, Series 09A Cronin & Co., Inc. l~rbitrage ~' S~~`ViC@ ~ ~ ~ Part 2 of z Date Principal Coupon Interest Total P+I Fiseal Totai 02/01/2031 90,000.00 4.625% 20,365.63 110,36>.63 130,731.26 08/01/2031 - - I 8,284.38 18,284.38 - 02/O1/2032 95,000.00 4.625% 18.2843$ 113,284.38 131,568.76 08/01/2032 - - 16,087.50 16,087.50 - 02/OI/2033 100,000.00 4.625% 16,087.50 116,087.50 132,175.00 08!01 /2033 - - 13.775.00 13.775.00 - 02/O1/2034 105,000.00 4.750% 13.775.00 118,775.00 __ __ 132_550.00 08/01/2034 - - l I 28L25 11,281.25 - OZ/O1/2035 110,000.00 4.750% 11,281.25 121,281.25 132,562.50 08/01 /2035 - - 8,668.7> 8.668.75 - 02/01/2036 1 ]5,000.00 4.750% 8,668.75 123,668.75 132,337.>0 08/01/2036 - - 5,937.50 5,937.50 - 02/01/2037 120,000.00 4.750% 5,937.50 125,937.50 131,875.00 08/01/203? - - 3,087.50 3,087.50 - 02/O1/2038 130,000.00 4.750% 3,087.50 I33,087.50 136,175.00 Total 83,935,000.00 - x2,119,253.87 86,054,253.87 - Yield Statistics Bond Year Dollars Average i,ife Average Coupon _ - _-- _ --_-- _-- - -_ __-- - Net Interest Cost ~NIC') __, __ .-__.____ ____. __ - True Interest Cost ~TI~__ Bond Yield for Arbitr~e Purposes All Inclusive Cost (AIC} $49,880.42 12.676 Yeazs ---- n ~nv~~nsoi 4.2440617% 4.1599278% 4.1 _lyyL / 25 %o IRS Form 8038 Net ]nterest Cost 4.1402355% --- _--- Weighted Average Maturity 12.620 Years 09$3935m.ju1 ~ SINGLE PURPOSE ~ 6/ 8!2009 ~ 3:06 PM -10- Extract of Minutes of Meeting of the City Council of the City of Columbia Heights, Anoka County, Minnesota Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Columbia Heights, Minnesota, was duly held in the City Hall in said City on Monday, June 8, 2009, commencing at 7:00 P.M. The following members were present: and the following were absent: The Mayor announced that the next order of business was consideration of the proposals which had been received for the purchase of the City's $3,935,000 General Obligation Public Facilities Bonds, Series 2009A. The City Finance Director presented a tabulation of the proposals which had been received in the manner specified in the Terms of Proposal for the Bonds. The proposals are as set forth in Exhibit A attached. After due consideration of the proposals, Member then introduced the following written resolution, the reading of which. was dispensed with by unanimous consent, and moved its adoption: 35?(i27~~2 A.IP CL16?-4~4 RESOLUTION NO. A RESOLUTION AWARDING THE SALE OF X3,935,000 GENERAL. OBLIGATION PUBLIC FACILITIES BONDS, SERIES 2009A; FIXING THEIR FORM AND SPECIFICATIONS; DIRECTING THEIR EXECUTION AND DELIVERY; AND PROVIDING FOR THEIR PAYMENT BE IT RESOLVED By the City Council (the "Council") of the City of Columbia Heights, Anoka County, Minnesota (the "City"} as follows: Section 1. Recitals. 1..01. Public Safety Center and Murzyn Hall. The City is authorized by the Charter of the City of Columbia Heights (the "Charter") to issue its general obligation bonds for, among other things, the purchase or erection of needful public buildings within the City and any other public convenience from which a revenue is or may be derived. The City therefore intends to issue its general obligation bonds pursuant to the Charter to finance (i) a new public safety center for the police and fire departments (the "Public Safety Center"), and (ii) energy-efficient improvements to Murzyn Hail ("Murzyn Improvements"). The Public Safety Center and the Murzyn Improvements are collectively referred to herein as the "Public Facilities Improvements." The City has previously issued its General Obligation Public Safety Center Bonds, Series 2008B, in the aggregate principal amount of $10,000,000, to finance a portion of the construction. and equipping of the Public Safety Center. 1.02. Watermain Improvements. The City is authorized by Minnesota Statutes, Section 444.075, as amended (the "Utility Act"), to issue its general obligation bonds to defray the costs of certain watermain improvements. The City therefore intends to issue its general obligation bonds pursuant to the Utility Act and Minnesota Statutes, Chapter 475, as amended ("Chapter 475"), to undertake various water lining projects within the City's watermain system (the "Watermain Improvements"). 1.03. Street and Alley Reconstruction. The City is authorized by Minnesota Statutes, Chapter 429, as amended (the "Assessment Act"), to issue its general obligation bonds to defray the costs of certain street and alley improvements. The City therefore intends to issue its general obligation bonds pursuant to the Assessment Act and Chapter 475 to undertake various street and alley rehabilitation and reconstruction improvements, identified as Project No. 2007-02 and Project No. 2009-02 (collectively, the "Street Improvements"). The Public Facility Improvements, the Watermain Improvements, and the Street Improvements are collectively referred to herein as the "Projects." 1..04. Ordinance Readings. On April 13, 2009, the Council conducted a first reading of an ordinance authorizing the City to issue its general obligation bonds in the maximum principal amount of $3,935,000 to finance the Projects (the "Ordinance"). On April 27, 2009, the Council conducted a second reading of the Ordinance and adopted the Ordinance, subject to referendum as described in the Charter. 3;2~z~.,, ,a.m ci. i ~>>-a-t 2 1.05. Publication of Ordinance• No Petition for Referendum. The Ordinance was published at least once in the City's official newspaper. The City Clerk did not receive a petition signed by the requisite amount of registered voters in the specified time frame to require a referendum on the issuance of the Bonds (hereinafter defined) under the Charter. Section 2. Sale of Bonds. 2.01. Award to Purchaser and Interest Rates. The proposal. of Cronin & Company, Inc. (the "Purchaser") to purchase $3,935,000 General Obligation Public Facilities Bonds, Series 2009A (the "Bonds") of the City described in the Terms of Proposal thereof is determined to be a reasonable offer and is accepted, the proposal being to purchase the Bonds at a price of $3,937,298.20 for Bonds bearing interest as follows: Year Interest Rate Year Interest Rate 2010 2.000% 2017 3.500% 2011 2.000% 201.8 4.000% 2012 2.000% 2019 4.000% 2013 2.250% 2020 4.000% 2014 3.000% 2021. 4.000% 2015 3.000% 2022 4.000% 2016 3.250% Term. Bonds due February 1, 2024 at 4.100%. Term Bonds due February 1, 2027 at 4.250%. Term Bonds due February 1, 2030 at 4.500%. Term Bonds due February 1, 2033 at 4.625%. Term Bonds due February 1, 2038 at 4.750%. Net interest cost: 4.2440617%. 2.02. Purchase Contract. The sum of $51,485.20 being the amount proposed by the Purchaser in excess of $3,885,813.00 will be deposited in allocable amounts to the respective subaccounts in the Construction Account under Section 5.01 hereof The City Finance Director is directed to retain the good faith check of the Purchaser, pending completion of the sale of the Bonds, and to return the good faith checks of the unsuccessful proposers forthwith. The Mayor and the City Finance Director are directed to execute a contract with the Purchaser on behalf of the City. 2.03. Terms and Principal Amounts of the Bonds. The City will forthwith issue and sell. the Bonds pursuant to the City Charter, the Utility Act, the Assessment Act, and Chapter 475 in the total principal amount of $3,935,000, originally dated as of the date of delivery, in the denomination. of $5,000 each or any integral multiple thereof, numbered No. R-l, upward, bearing interest as above set forth, and which mature serially on February 1 in the years and amounts as follows: Year Amount Year Amount 2010 $40,000 2017 $225,000 2011 185,000 2018 235,000 2012 190,000 2019 200,000 2013 200,000 2020 130,000 2014 205,000 2021 140,000 2015 205,000 2022 140,000 2016 220,000 Term Bonds due February 1, 2024 in the aggregate principal amount of $305,000. Term Bonds due February 1, 2027 in the aggregate principal amount of $210,000. Term Bonds due February 1, 2030 in the aggregate principal amount of $240,000. Term Bonds due February 1, 2033 in the aggregate principal amount of $285,000. Term Bonds due February 1, 2038 in the aggregate principal amount of $580,000. $3,005,000 of the Bonds (the "Public Facilities Portion"} maturing in the amounts and on the dates set forth below are being issued to finance the Public Facilities Improvements: Year Amount Year Amount 2011 $95,000 2025 $65,000 2012 95,000 2026 70,000 2013 100,000 2027 75,000 2014 105,000 2028 75,000 2015 105,000 2029 80,000 2016 115,000 2030 85,000 2017 110,000 2031 90,000 2018 120,000 2032 95,000 2019 130,000 2033 100,000 2020 130,000 2034 105,000 2021 140,000 2035 110,000 2022 140,000 2036 115,000 2023 150,000 2037 120,000 2024 155,000 2038 130,000 $325,000 of the Bonds (the "Water Revenue Portion") maturing in the amounts and on the dates set forth below are being issued to finance the Watermain Improvements: Year Amount Year Amount 2011 $30,000 2016 $35,000 2012 35,000 2017 40,000 2013 35,000 2018 40,000 2014 35,000 2019 40,000 2015 35,000 $605,000 of the Bonds (the "Street Improvements Portion") maturing in the amounts and on the dates set forth below are being issued to finance the Street Improvements: Year Amount Year Amount 2010 $40,000 2015 $65,000 2011 60,000 2016 70,000 2012 60,000 2017 75,000 2013 65,000 2018 75,000 2014 65,000 2019 30,000 2.04. Optional Redemption. The City may elect on February 1, 2019, and on any date thereafter to prepay Bonds due on or after February 1, 2020. Redemption may be in whole or in part and if in part, at the option of the City and in such manner as the City will determine. if less than all Bonds of a maturity are called for redemption, the City will notify DTC (as defined in Section 8 hereof) of the particular amount of such maturity to be prepaid. DTC will determine by lot the amount of each participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. Prepayments will be at a price of par plus accrued interest. 2.05. Term Bonds. The Term Bonds are subject to mandatory sinking fund redemption and shall be redeemed in part by lot at par plus accrued interest on the sinking fund installment dates and in the principal amounts as follows: Sinking Fund Installment Date February 1, 2024 Term Bonds 2023 2024 (maturity) 2027 Term Bonds 2025 2026 2027 (maturity) 2030 Term Bonds 2028 2029 2030 (maturity) 2033 Term Bonds 2031 2032 2033 (maturity) Principal Amount $150,000 155,000 65,000 70,000 75,000 75,000 80,000 85,000 90,000 95,000 100,000 ~,z~,2~~-2 n.i>> rt ~ ~~a=t 5 2038 Term Bonds 2034 105,000 2035 110,000 2036 115,000 2037 120,000 2038 (maturity) 130,000 The specific Term Bonds to be redeemed will be selected by lot by the Registrar. Ali prepayments will be at a price of par plus accrued interest. Section 3. Registration and Pam. 3.01. Registered Form. The Bonds will be issued only in fully registered form. The interest thereon and, upon surrender of each Bond, the principal amount thereof, is payable by check or draft issued by the Registrar described herein. 3.02. Dates; Interest Payment Dates. Each Bond will be dated as of the last interest payment date preceding the date of authentication to which interest on the Bond has been paid or made available for payment, unless (i) the date of authentication is an interest payment date to which interest has been paid or made available for payment, in which case the Bond will be dated as of the date of authentication, or (ii) the date of authentication is prior to the first interest payment date, in which. case the Bond will be dated as of the date of original issue. The interest on the Bonds is payable on February 1 and August 1 of each year, commencing February 1, 2010, to the registered owners of record as of the close of business on the fifteenth day of the immediately preceding month, whether or not that day is a business day. 3.03. Registration. The City will appoint, and will maintain, a bond registrar, transfer agent, authenticating agent and paying agent (the "Registrar"). The effect of registration and the rights and duties of the City and the Registrar with respect thereto are as follows: (a) Re ig ster. The Registrar must keep at its principal corporate trust off ce a bond register in which the Registrar provides for the registration of ownership of Bonds and the registration of transfers and exchanges of Bonds entitled to be registered, transferred or exchanged. (b) Transfer of Bonds. Upon surrender for transfer of a Bond duly endorsed by the registered owner thereof or accompanied by a written instrument of transfer, in form 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 will authenticate and deliver, in the name of the designated transferee or transferees, one or more new Bonds of a like aggregate principal amount and maturity, as requested by the transferor. The Registrar may, however, close the books for registration of any transfer after the fifteenth day of the month. preceding each interest payment date and until that interest payment date. (c) Exchange of Bonds. When Bonds are surrendered by the registered owner for exchange the Registrar will authenticate and deliver one or more new Bonds of a like ~;~~,~~~-? a.m c~~.i~;?-~a 6 aggregate principal amount and maturity as requested by the registered owner or the owner's attorney in writing. (d) Cancellation. Bonds surrendered upon transfer or exchange will be promptly cancelled by the Registrar and thereafter disposed of as directed by the City. (e) Improper or Unauthorized Transfer. When a Bond is presented to the Registrar for transfer, the Registrar may refuse to transfer the Bond until the Registrar is satisfied that the endorsement on the Bond or separate instrument of transfer is valid and genuine and. that the requested transfer is legally authorized. The Registrar will incur no liability for the refusal, in good faith, to make transfers which it, in its judgment, deems improper or unauthorized. (f) Persons Deemed Owners. The City and the Registrar may treat the person in whose name a Bond is registered in the bond register as the absolute owner of the Bond, whether the Bond is overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on the Bond and for all. other purposes, and payments so made to a registered owner or upon the owner's order will be valid and effectual to satisfy and discharge the liability upon the Bond to the extent of the sum or sums so paid. (g) Taxes, Fees and Charges. The Registrar may impose a charge upon the owner thereof for a transfer or exchange of Bonds sufficient to reimburse the Registrar for any tax, fee or other governmental charge required to be paid with respect to the transfer or exchange. (h) Mutilated, Lost, Stolen or Destroyed Bonds. If a Bond becomes mutilated or is destroyed, stolen or lost, the Registrar will deliver a new Bond of like amount, number, maturity date and tenor in exchange and substitution for and upon cancellation of the mutilated. Bond. or in lieu of and in substitution for any Bond destroyed, stolen or lost, upon the payment of the reasonable expenses and charges of the Registrar in connection therewith; and, in the case of a Bond destroyed, stolen or lost, upon filing with the Registrar of evidence satisfactory to it that the Bond was destroyed, stolen or lost, and of the ownership thereof, anal upon furnishing to the Registrar an appropriate bond or indemnity in form, substance and amount satisfactory to it and as provided by law, in which both the City and the Registrar must be named as obligees. Bonds so surrendered to the Registrar will be cancelled by the Registrar and evidence of such cancellation must be given to the City. If the mutilated, destroyed, stolen or lost Bond has already matured or been called for redemption in accordance with its terms it is not necessary to issue a new Bond prior to payment. (i) Redemption. In the event any of the Bonds are called for redemption, notice thereof identifying the Bonds to be redeemed will be given by the Registrar by mailing a copy of the redemption notice by first class mail (postage prepaid) to the registered owner of each Bond to be redeemed at the address shown on the registration. books kept by the Registrar and by publishing the notice if required by law. Failure to give notice by publication or by mail to any registered. owner, or any defect therein, will 3 ~Z63 T 2 AJ P l'I . i h2-d~ ^~ not affect the validity of the proceedings for the redemption of Bonds. Bonds so called for redemption will cease to bear interest after the specified redemption date, provided that the funds for the redemption are on deposit with the place of payment at that time. 3.04. Appointment of Initial Re i~ stray. The City appoints U.S. Bank National Association, Saint Paul, Minnesota, as the initial Registrar. The Mayor and the City Manager are authorized to execute and deliver, on behalf of the City, a contract with the Registrar. Upon merger or consolidation of the Registrar with another corporation, if the resulting corporation is a bank or trust company authorized by law to conduct such business, the resulting corporation is authorized to act as successor Registrar. The City agrees to pay the reasonable and customary charges of the Registrar for the services performed. The City reserves the right to remove the Registrar upon 30 days' notice and upon the appointment of a successor Registrar, in which event the predecessor Registrar must deliver all cash and Bonds in its possession to the successor Registrar and must deliver the bond register to the successor Registrar. On or before each. principal or interest due date, without further order of this Council, the City Finance Director must transmit to the Registrar monies sufficient for the payment of all principal and interest then due. 3.05. Execution, Authentication and Delivery. The Bonds will be prepared under the direction of the City Manager and executed on behalf of the City by the signatures of the Mayor and the City Manager, provided that alt signatures may be printed, engraved or lithographed facsimiles of the originals. If an officer whose signature or a facsimile of whose signature appears on the Bonds ceases to be such officer before the delivery of any Bond, that signature or facsimile will nevertheless be valid and sufficient for all purposes, the same as if the officer had remained in office until delivery. Notwithstanding such execution, a Bond. will not be valid or obligatory for any purpose or entitled to any security or benefit under this Resolution unless and until a certificate of authentication on the Bond has been duly executed by the manual signature of an authorized representative of the Registrar. Certificates of authentication on different Bonds need not be signed by the same representative. The executed certificate of authentication on a Bond is conclusive evidence that it has been authenticated and delivered under this Resolution. When the Bonds have been so prepared, executed and authenticated, the City Manager will deliver the same to the Purchaser upon payment of the purchase price in accordance with the contract of sale heretofore made and executed, and the Purchaser is not obligated to see to the application of the purchase price. 3.06. Temporary Bonds. The City may elect to deliver in lieu of printed definitive Bonds one or more typewritten temporary Bonds in substantially the form set forth in Section 4 hereof with such changes as may be necessary to reflect more than one maturity in a single temporary bond. Upon the execution and delivery of definitive Bands the temporary Bonds will be exchanged therefor and cancelled. Section 4. Form of Bond. 4.01. The Bonds will be printed or typewritten in substantially the following form: No. R- UNITED STATES OF AMERICA $ STATE OF MINNESOTA COUNTY OF ANOKA CITY OF COLUMBIA HEIGHTS GENERAL OBLIGATION PUBLIC FACILITIES BONDS, SERIES 2009A Date of Rate Maturity Original Issue CUSIP February 1, 20_ July 1, 2009 Registered Owner: Cede & Co. The City of Columbia Heights, Minnesota, a duly organized and existing municipal corporation and political subdivision located in Anoka County, Minnesota (the "City"), acknowledges itself to be indebted and for value received promises to pay to the Registered Owner specified above or registered assigns, the principal sum of $ on the maturity date specified above, with interest thereon from the date hereof at the annual rate specified above, payable February 1 and August 1 in each year, commencing February 1 , 2010, to the person in whose name this Bond is registered at the close of business on the fifteenth day (whether or not a business day) of the immediately preceding month. The interest hereon and, upon presentation and surrender hereof, the principal hereof are payable in lawful money of the United States of America by check or draft by U.S. Bank National Association, Saint Paul, Minnesota, as Registrar, Paying Agent, Transfer Agent and Authenticating Agent, or its designated successor under the Resolution described herein. For the prompt and full payment of such principal and interest as the same respectively become due, the full faith and credit and taxing powers of the City have been and are hereby irrevocably pledged. The City may elect on February 1, 2019, and on any date thereafter to prepay Bonds due on or after February 1, 2020. Redemption may be in whole or in part and if in part, at the option of the City and in such manner as the City will determine. If less than all Bonds of a maturity are called for redemption, the City will notify Depository Trust Company ("DTC"} of the particular amount of such maturity to be prepaid. DTC will determine by lot the amount of each participant's interest in such maturity to be redeemed. and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. Prepayments will be at a price of par plus accrued interest. The Term Bonds are subject to mandatory sinking fund redemption and shall be redeemed in part by lot at par plus accrued interest on the sinking fund installment dates and in the principal amounts as follows: Sinking Fund Installment Date Principal Amount February 1, 2024 Term Bonds 2023 $1.50,000 2024 (maturity) 155,000 2027 Term Bonds 2025 65,000 2026 70,000 2027 (maturity) 75,000 2030 Term Bonds 2028 75,000 2029 80,000 2030 (maturity) 85,000 2033 Term Bonds 2031 90,000 2032 95,000 2033 (maturity) 100,000 2038 Term Bonds 2034 105,000 2035 110,000 2036 115,000 2037 1.20,000 2038 (maturity) 130,000 The specific Term Bonds to be redeemed will be selected by lot by the Registrar. All prepayments will be at a price of par plus accrued interest. This Bond is one of an issue in the aggregate principal amount of $3,935,000, all of like original issue date and tenor, except as to number, maturity date, redemption privilege, and interest rate, all issued pursuant to a resolution adopted by the City Council on June 8, 2009 (the "Resolution"), for the purpose of providing funds to (i) construct a new public safety center for the police and fire departments within the City, (ii) defray the costs of certain improvements to the City's watermain system, and (iii) defray the costs of certain street and alley improvements within the City, pursuant to and in full conformity with the home rule charter of the City and the Constitution and laws of the State of Minnesota, including Minnesota Statutes, Section 444.075, Chapter 429, and Chapter 475, as amended. The principal hereof and interest hereon are payable in part from net revenues of the City's water utility, in part from special assessments levied or to be levied on property specially benefited by local improvements, and in part from ad valorem taxes, as set forth in the Resolution to which. reference is made for a full statement of rights and powers thereby conferred. The full faith and credit of the City are irrevocably pledged for payment of this Bond and the City Council has obligated itself to levy additional ad valorem taxes on all taxable 352627v2 ,~.IP CL 162-=t4 10 property in the City in the event of any deficiency in water revenues, special assessments, and taxes pledged, which additional taxes may be levied without limitation. as to rate or amount. The Bonds of this series are issued only as fully registered Bonds in denominations of $5,000 or any integral muhiple thereof of single maturities. As provided in the Resolution and subject to certain limitations set forth therein, this Bond is transferable upon the books of the City at the principal office of the Registrar, by the registered owner hereof in person or by the owner's attorney duly authorized in writing, upon surrender hereof together with a written instrument of transfer satisfactory to the Registrar, duly executed by the registered. owner or the owner's attorney; anal may also be surrendered in exchange for Bonds of other authorized denominations. Upon such transfer or exchange the City will cause a new Bond or Bonds to be issued in the name of the transferee or registered owner, of the same aggregate principal amount, bearing interest at the same rate and maturing on the same date, subject to reimbursement for any tax, fee or governmental charge required to be paid with respect to such transfer or exchange. The City and the Registrar may deem and treat the person in whose name this Bond is registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose of receiving payment and for all other purposes, and neither the City nor the Registrar will be affected by any notice to the contrary. The City Council has designated the issue of Bonds of which this Bond forms a part as "qualified. tax exempt obligations" within the meaning of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended (the "Code"), relating to disallowance of interest expense for financial. institutions and within the $30 million limit allowed by the Code for the calendar year of issue. IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts, conditions and things required by the home rule charter of the City and the Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be performed preliminary to and in the issuance of this Bond in order to make it a valid and binding general obligation of the City in accordance with its terms, have been done, do exist, have happened and have been performed as so required, and that the issuance of this Bond does not cause the indebtedness of the City to exceed any constitutional, statutory or charter limitation of indebtedness. This Bond is not valid or obligatory for any purpose or entitled to any security or benefit under the Resolution until the Certificate of Authentication hereon has been executed by the Registrar by manual signature of one of its authorized representatives. IN WITNESS WHEREOF, the City of Columbia Heights, Anoka County, Minnesota, by its City Council, has caused this Bond to be executed on its behalf by the facsimile or manual signatures of the Mayor and City Manager and has caused this Bond to be dated as of the date set forth below. ~s2~,27~-i A.~i~ cc, i ~~?-=~~ 11 Dated: CITY OF COLUMBIA HEIGHTS, MINNESOTA (Facsimile) (Facsimile City Manager Mayor CERTIFICATE OF AUTHENTICATION This is one of the Bonds delivered pursuant to the Resolution mentioned within. U.S. BANK NATIONAL ASSOCIATION By Authorized Representative The following abbreviations, when used in the inscription on the face of this Band, will be construed as though they were written out in full according to applicable laws or regulations: TEN COM -- as tenants UNIF GIFT MIN ACT Custodian in common (Gust) (Minor) TEN ENT -- as tenants under Uniform Gifts or by entireties Transfers to Minors JT TEN -- as joint tenants with right of survivorship and Act . . not as tenants in common (State} Additional abbreviations may also be used though not in the above list. ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto the within Bond and all rights thereunder, and 352(~27v2 /1.1P ('LlEi2-=1~ IZ does hereby irrevocably constitute and appoint attorney to transfer the said Bond on the books kept for registration of the within Bond, with full power of substitution in the premises. Dated: Notice: The assignor's signature to this assignment must correspond with the name as it appears upon the face of the within Bond in every particular, without alteration or any change whatever. Signature Guaranteed: NOTICE: Signature(s) must be guaranteed by a financial institution that is a member of the Securities Transfer Agent Medallion Program ("STAMP"), the Stock Exchange Medallion Program ("SEMP"), the New York Stock Exchange, Inc. Medallion Signatures Program ("MSP") or other such "signature guarantee program" as may be determined by the Registrar in addition to, or in substitution for, STAMP, SEMP or MSP, all in accordance with the Securities Exchange Act of 1934, as amended. The Registrar will not effect transfer of this Bond unless the information concerning the assignee requested below is provided. Name and Address: (Include information for all joint owners if this Bond is held by joint account.) Please insert social security or other identifying number of assignee PROVISIONS AS TO REGISTRATION The ownership of the principal of and interest on the within Bond has been registered. on the books of the Registrar in the name of the person last noted below. 3s2~~2~, ~ n.rn cta ~,~-=~a 13 Signature of Date of Registration Registered Owner Off cer of Re ig stray Cede & Co. Federal ID #13-2555119 4.02. Approving Le ag 1 Opinion. The City Finance Director is authorized and directed to obtain a copy of the proposed approving legal opinion of Kennedy & Graven, Chartered, Minneapolis, Minnesota, which is to be complete except as to dating thereof and cause the opinion to be printed on or accompany each Bond. Section 5. Payment, Security Pledges and Covenants. 5.01. Funds and Accounts. (a} Generally. The Bonds are payable from the General Obligation Public Facilities Bonds, Series 2009A Debt Service Fund (the "Debt Service Fund") hereby created. The City will maintain a Public Facilities Account (the "Public Facilities Account"), a Water Revenue Account (the "Water Revenue Account"}, and a Street Improvements Account (the "Street Improvements Account") in the Debt Service Fund. (b) Public Facilities Account. The City Finance Director will timely deposit in the Public Facilities Account the taxes (the "Taxes") levied or to be levied for hereunder, which Taxes are pledged. to that account of the Debt Service Fund. There is also appropriated to the Public Facilities Account of the Debt Service Fund $69,590.94, representing the amount necessary to pay interest on the Public Facilities Portion of the Bonds on February 1, 2010. If any payment of principal or interest on the Public Facilities Portion of the Bonds will become due when there is not sufficient money in the Public Facilities Account of the Debt Service Fund to pay the same, the City Finance Director is directed to pay such principal or interest from. the general fund of the City, and the general fund will be reimbursed for such advances out of the proceeds of Taxes when received. (c) Water Revenue Account. The City will create and continue to operate its Water Fund to which. will. be credited all gross revenues of the City's water system and out of which will be paid all normal and reasonable expenses of current operations of the water system. Any balance therein are deemed net revenues and will be transferred, from time to time, to the Water Revenue Account of the Debt Service Fund, hereby created in the Water Fund, which account will be used only to pay principal of and interest on the Water Revenue Portion of the Bonds and any other bonds similarly authorized. There will always be retained in the Water Revenue Account of the Debt Service Fund a sufficient amount to pay principal of and interest on the Water Revenue Portion of the Bonds and the City Finance Director must report any current or anticipated deficiency in the Water Revenue Account to the City Council. If any payment of principal or interest on the Water Revenue Portion of the Bonds will become due when there is not sufficient money in the Water Revenue Account of the Debt Service Fund to pay the same, the City Finance Director is directed to pay such principal or interest from the general fund of the City, and the general fund will be reimbursed for such advances out of the proceeds of pledged net revenues when received. (d) Street Improvements Account. The City Finance Director will timely deposit in the Street Improvements Account the Taxes and the special assessments (the "Assessments") levied or ~~z~,z~~z,a.~r~ CI_]v3-a~ 1.4 to be levied for the Street Improvements described in Section 1.03 hereof, which Taxes and Assessments are pledged to the Street Improvements Account of the Debt Service Fund. There is also appropriated to the Street Improvements Account of the Debt Service Fund $4,367.71, representing the amount necessary to pay interest on the Street Improvements Portion of the Bonds on February 1, 2010. If any payment of principal or interest on the Street Improvements Portion of the Bonds will become due when there is not sufficient money in the Street Improvements Account of the Debt Service Fund to pay the same, the City Finance Director is directed to pay such principal. or interest from the general fund of the City, and the general fund will be reimbursed for such advances out of the proceeds of Taxes and Assessments when received. (e) Construction Fund. The proceeds of the Bonds, less the appropriations made in paragraphs (b), (c) and. (d) of this Section but including any amounts in excess of the minimum proposal designated for deposit herein in accordance with Section 2.02 hereof, together with any other funds appropriated for the Public Facilities Improvements, the Watermain Improvements, and the Street Improvements, respectively, as the case may be, will be allocated to and deposited in a Public Facilities subaccount, a Water Revenue subaccount, and a Street Improvements subaccount, respectively, in a separate "Construction Fund" to be used solely to defray expenses of the Public Facilities Improvements, the Watermain Improvements, and the Street Improvements, respectively. When the Public Facilities Improvements, the Watermain Improvements, and the Street Improvements, respectively, are completed and the costs thereof paid, the relevant subaccount in the Construction Fund is to be closed and any balance in the respective subaccount therein is to be deposited in the Public Facilities Account, the Water Revenue Account, and the Street Improvements Account, respectively, of the Debt Service Fund, as the case may be. 5.02. Covenants Regarding Water Revenue Portion of Bonds. The Council covenants and agrees with the holders of the Bonds that so long as any of the Water Revenue Portion of the Bonds remain outstanding and unpaid, it will keep and enforce the following covenants and agreements: (a) Maintenance and Operation of System. The City will continue to maintain and efficiently operate its water system as a public utility and convenience free from competition of other like utilities and will cause all revenues therefrom to be deposited in bank accounts and credited to the water account as hereinabove provided, and will make no expenditures from that account except for a duly authorized purpose and in accordance with this Resolution. (b) Water Revenue Account to be Maintained as Separate Account. The City will also maintain the Water Revenue Account of the Debt Service Fund as a separate account in the Water Fund and will cause money to be credited thereto from time to time, out of net revenues from the water system in sums sufficient to pay principal of and interest on the Water Revenue Portion of the Bonds when due. (c) Books of Records and Accounts Relating to the System. The City will keep and maintain proper and adequate books of records and accounts separate from all other records of the City in which will be complete and correct entries as to all transactions relating to the water system and which will be open to inspection and copying by any bondholder, or the bondholder's agent or attorney, at any reasonable time, and it will furnish certified transcripts therefrom upon request and upon payment of a reasonable fee therefor, and said account will be audited at least annually by a qualified public accountant and statements of such audit and report will. be famished to all bondholders upon request. (d) Persons Handling Revenues and Banks Receiving Deposits. The Council will cause persons handling revenues of the water system to be bonded in reasonable amounts for the protection of the City and the bondholders and will cause the funds collected on account of the operations of the water system to be deposited in a bank whose deposits are guaranteed under the Federal Deposit Insurance Law. (e) Insurance. The Council will keep the water system insured at all times against loss by fire, tornado and other risks customarily insured against with an insurer or insurers in good standing, in such amounts as are customary for like plants, to protect the holders, from time to time, of the Bonds and the City from any loss due to any such casualty and will apply the proceeds of such insurance to make good any such loss. (f) Performance of Duties. The City and each and all of its officers will punctually perform all duties with reference to the water system as required by law. (g) Pledge to Produce Revenues. The City will impose and collect charges of the nature authorized by the Utility Act at the times and in the amounts required to produce net revenues adequate to pay all principal and interest when due on the Water Revenue Portion of the Bonds and to create and maintain such reserves securing said payments as may be provided in this Resolution. (h) Payment of Deficiencies, if Any. The Council will levy general ad valorem taxes on all taxable property in the City when required to meet any deficiency in net revenues with respect to the Water Revenue Portion of the Bonds. 5.03. Pledge of Tax Lew. For the purpose of paying the principal. of and interest on the Public Facilities Portion and the Street Improvements Portion of the Bonds, there is levied a direct annual irrepealable ad valorem tax upon all of the taxable property in the City, which will be spread upon the tax rolls and collected with and as part of other general taxes of the City. The Taxes will be credited to the respective subaccounts of the Debt Service Fund. above provided and will be in the years and amounts as follows (year stated being year of collection}: Year Levy (See EXHIBIT B) 5.04. Certification to County Auditor as to Debt Service Fund Amount. (a) It is hereby determined that the estimated collections of the foregoing Taxes will produce at least f ve percent in excess of the amount needed to meet when due the principal and interest payments on the Public Facilities Portion of the Bonds. It is hereby determined that the estimated collections of the foregoing Taxes and Assessments will produce at least five percent in excess of the amount needed to meet when due the principal and interest payments on the Street Improvements 352r,27v2 A.» ct_ i t~2-aa 16 Portion. of the Bonds. The tax levy herein provided is irrepealable until all of those respective portions of the Bonds are paid, provided that at the time the City makes its annual tax levies the City Finance Director may certify to the County Auditor of Anoka County the amounts available in the Public Facilities Account or Street Improvements Account of the Debt Service Fund, as the case may be, to pay principal and interest due during the ensuing year, and the County Auditor will thereupon reduce the levy collectible during such year by the amount so certified. (b) It is hereby determined that the estimated collection of net revenues for the payment of principal and interest on the Water Revenue Portion of the Bonds will produce at least five percent in excess of the amount needed to meet, when due, the principal and interest payments on such portion of the Bonds and that no tax levy is needed at this time with respect to the Water Revenue Portion of the Bonds. 5.05. County Auditor Certificate as to Registration. The City Finance Director is directed to file a certified copy of this Resolution with the County Auditor of Anoka County and to obtain the certificate required by Minnesota Statutes, Section 475.63. Section 6. Authentication of Transcript. 6.01.. City Proceedings and Records. The officers of the City are authorized and directed to prepare and furnish. to the Purchaser and to the attorneys approving the Bonds, certified copies of proceedings and records of the City relating to the Bonds and to the financial condition and affairs of the City, and such other certificates, affidavits and transcripts as may be required to show the facts within their knowledge or as shown by the books and records in their custody and under their control, relating to the validity and marketability of the Bonds and such instruments, including any heretofore furnished, will be deemed representations of the City as to the facts stated therein. 6.02. Certification as to Official Statement. The Mayor, the City Manager, and the City Finance Director are hereby authorized and directed to certify that they have examined the Official Statement prepared and circulated in connection with. the issuance and sale of the Bonds and that to the best of their knowledge and belief the Official Statement is a complete and accurate representation of the facts and representations made therein as of the date of the Official Statement. 6.03. Payment of Costs of Issuance. The City authorizes the Purchaser to forward the amount of Bond proceeds allocable to the payment of issuance expenses (other than amounts payable to Kennedy & Graven, Chartered as Bond Counsel) to Bank of .America, N.A. on the closing date for further distribution as directed by the City's financial adviser, Ehlers & Associates, Inc. Section 7. Tax Covenants. 7.01. Tax-Exempt Bonds. The City covenants and agrees with the holders from time to time of the Bonds that it will not take or permit to be taken. by any of its officers, employees or agents any action which would cause the interest on the Bonds to become subject to taxation. under the Internal Revenue Code of 1986, as amended (the "Code"}, and the Treasury Regulations promulgated thereunder, in effect at the time of such actions, and that it will take or cause its officers, employees or agents to take, all affirmative action within its power that may be necessary to ensure that such interest will. not become subject to taxation under the Code and applicable Treasury Regulations, as presently existing or as hereafter amended and made applicable to the Bonds. 7.02. No Rebate Required. (a) The City will comply with requirements necessary under the Code to establish and maintain the exclusion from gross income of the interest on the Bonds under Section 103 of the Code, including without limitation requirements relating to temporary periods for investments, limitations on amounts invested at a yield greater than the yield on the Bonds, and the rebate of excess investment earnings to the United States if the Bonds (together with other obligations reasonably expected to be issued in calendar year 2009} exceed the small issuer rebate exception amount of $5,000,000. (b) For purposes of qualifying for the small issuer rebate exception to the federal arbitrage rebate requirements, the City finds, determines and declares that the aggregate face amount of ail tax-exempt bonds (other than private activity bonds) issued by the City (and all subordinate entities of the City) during the calendar year in which the Bonds are issued is not reasonably expected to exceed $5,000,000, within the meaning of Section 148(f)(4)(D) of the Code. 7.03. Not Private Activity Bonds. The City further covenants not to use the proceeds of the Bonds or to cause or permit them or any of them to be used, in such a manner as to cause the Bonds to be "private activity bonds" within the meaning of Sections 103 and 141 through 150 of the Code. 7.04. Qualified Tax-Exempt Obli ag bons. In order to qualify the Bonds as "qualified tax-exempt obligations" within the meaning of Section 265(b)(3) of the Code, the City makes the following factual statements and representations: (a) the Bonds are not "private activity bonds" as defined in Section 141 of the Code; (b) the City hereby designates the Bonds as "qualified tax-exempt obligations" for purposes of Section 265(b)(3) of the Code; (c) the reasonably anticipated amount of tax-exempt obligations other than any private activity bonds which will be issued by the City (and all subordinate entities of the City) during calendar year 2009 will not exceed $30,000,000; and (d) not more than $30,000,000 of obligations issued by the City during calendar year 2009 have been designated for purposes of Section 265(b)(3) of the Code. 7.05. Procedural Requirements. The City will use its best efforts to comply with any federal procedural requirements which may apply in order to effectuate the designations made by this Section. Section 8. Book-Entr~ystem; Limited Obligation of City. 8.01.. DTC. The Bonds will be initially issued in the form of a separate single typewritten. or printed fully registered Bond for each of the maturities set forth in Section 2.03 hereof. Upon initial issuance, the ownership of each Bond will be registered in the registration books kept by the Registrar in the name of Cede & Co., as nominee for The Depository Trust Company, New York, New York, and its successors and assigns ("DTC"). Except as provided in this Section, all of the outstanding Bonds will be registered in the registration books kept by the Registrar in the name of Cede & Co., as nominee of DTC. 8.02. Participants. With respect to Bonds registered in the registration books kept by the Registrar in the name of Cede & Co., as nominee of DTC, the City and the Registrar will have no responsibility or obligation to any broker dealers, banks and other financial institutions from time to time for which DTC holds Bonds as securities depository (the "Participants") or to any other person on behalf of which a Participant holds an interest in the Bonds, including but not limited to any responsibility or obligation with respect to (i) the accuracy of the records of DTC, Cede & Co. or any Participant with respect to any ownership interest in the Bonds, (ii) the delivery to any Participant or any other person (other than a registered owner of Bonds, as shown by the registration books kept by the Registrar), of any notice with respect to the Bonds, including any notice of redemption, or (iii) the payment to any Participant or any other person, other than a registered owner of Bonds, of any amount with respect to principal of, premium, if any, or interest on the Bonds. The City and the Registrar may treat and consider the person in whose name each Bond is registered in the registration books kept by the Registrar as the holder and absolute owner of such Bond for the purpose of payment of principal, premium and interest with respect to such Bond, for the purpose of registering transfers with respect to such Bonds, and for all other purposes. The Registrar will pay all principal of, premium, if any, and interest on the Bonds only to or on the order of the respective registered owners, as shown in the registration books kept by the Registrar, and all such payments will be valid and effectual to fully satisfy and discharge the City's obligations with respect to payment of principal of, premium, if any, or interest on the Bonds to the extent of the sum or sums so paid. No person other than a registered owner of Bonds, as shown in the registration books kept by the Registrar, will receive a certificated Bond evidencing the obligation of this resolution. Upon delivery by DTC to the City Finance Director of a written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., the words "Cede & Co.," will refer to such new nominee of DTC; and upon receipt of such a notice, the City Finance Director will promptly deliver a copy of the same to the Registrar. 8.03. Representation Letter. The City has heretofore executed and delivered to DTC a Blanket Issuer Letter of Representations (the "Representation Letter"} which will govern payment of principal of, premium, if any, and interest on the Bonds and notices with respect to the Bonds. Any Registrar subsequently appointed by the City with respect to the Bonds will agree to take all action necessary for all representations of the City in the Representation Letter with respect to the Registrar, to be complied with at all times. 8 04. Transfers Outside Book-Entry sy tem. In the event the City, by resolution of the Council, determines that it is in the best interests of the persons having beneficial interests in the Bonds that they be able to obtain Bond certificates, the City will notify DTC, whereupon DTC will notify the Participants of the availability through DTC of Bond certificates. In such event the City will issue, transfer and exchange Bond certificates as requested by DTC and any other registered owners in accordance with the provisions of this Resolution. DTC may determine to discontinue providing its services with respect to the Bonds at any time by giving notice to the City and discharging its responsibilities with respect thereto under applicable law. In such event, if no successor securities depository is appointed, the City will issue and the Registrar will authenticate Bond certificates in accordance with this Resolution and the provisions hereof will apply to the transfer, exchange and method of payment thereof. 8.05. Payments to Cede & Co. Notwithstanding any other provision of this Resolution to the contrary, so long as a Bond is registered in the name of Cede & Co., as nominee of DTC, payments with respect to principal of, premium, if any, and interest on the Bond and notices with respect to the Bond will be made and given, respectively, in the manner provided in DTC's Operational Arrangements as set forth in the Representation Leiter. Section 9. Continuing Disclosure. 9.01. City Compliance with Provisions of Continuing Disclosure Certificate. The City covenants and agrees that it will comply with and carry out all of the provisions of the Continuing Disclosure Certificate (hereinafter defined). Notwithstanding any other provision of this Resolution, failure of the City to comply with the Continuing Disclosure Certificate will not be considered an event of default with respect to the Bonds; however, any Bondholder may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the City to comply with its obligations under this Section. 9.02. Execution of Continuing Disclosure Certificate. "Continuing Disclosure Certificate" means that certain Continuing Disclosure Certificate executed by the Mayor and the City Manager and dated the date of issuance and delivery of the Bonds, as originally executed and as it may be amended from time to time in accordance with the terms thereof. Section 10. Defeasance. When all Bonds and all interest thereon have been discharged as provided in this Section, all pledges, covenants and other rights granted by this Resolution to the holders of the Bonds will cease, except that the pledge of the full faith and credit of the City for the prompt and full. payment of the principal of and interest on the Bonds will remain in full force and effect. The City may discharge all Bonds (or relevant portion thereof) which are due on any date by depositing with the Registrar on or before that date a sum sufficient for the payment thereof in full. If any Bond should not be paid when due, it may nevertheless be discharged by depositing with the Registrar a sum sufficient for the payment thereof in full with interest accrued to the date of such deposit. ~s~~;z~~~ n.u~ c~_ i ~,z-~ 20 The foregoing Resolution was introduced by Member and seconded by Member The following voted in favor of the Resolution: The following voted against: The following were absent: Adopted: June 8, 2009. ATTEST: City Clerk Mayor 352627v2 AJP CI 162-4q 21 STATE OF MINNESOTA } COUNTY OF ANOKA ) SS. CITY OF COLUMBIA HEIGHTS) I, the undersigned, being the duly qualified and acting Manager of the City of Columbia Heights, Anoka County, Minnesota, do hereby certify that I have carefully compared the attached and foregoing extract of minutes of a regular meeting of the City Council of the City held on June 8, 2009 with the original minutes on file in my office and the extract is a full, true and correct copy of the minutes insofar as they relate to the issuance and sale of $3,935,000 General Obligation Public Facilities Bonds, Series 2009A of the City. WITNESS My hand officially as such City Manager and the corporate seal of the City this day of , 2009. City Manager City of Columbia Heights, Minnesota (SEAL) 352627v2 AJP CL163-4~ STATE OF MINNESOTA COUNTY AUDITOR'S CERTIFICATE AS TO COUNTY OF ANOKA TAX LEVY AND REGISTRATION I, the undersigned County Auditor of Anoka County, Minnesota, hereby certify that a certified copy of a resolution adopted by the governing body of the City of Columbia Heights, Minnesota, on June 8, 2009, levying taxes for the payment of $3,935,000 General Obligation Public Facilities Bonds, Series 2009A, of said municipality dated July 1, 2009, has been filed in my office and said bonds have been entered on the register of obligations in my office and that such. tax has been levied as required by law. WITNESS My hand and official seal this day of , 2009. County Auditor Anoka County, Minnesota (SEAL) Deputy >2627~,2 ,~.IP CL162-44 EXHIBIT A PROPOSALS ;$?6?7r2 A.1P CI.162-44 A_1 EXHIBIT B TAX LEVY SCHEDULE BID TABU~ATIt~td ~3,93~5,000° General obligation Public Facilities Bonds, Series 2009}1 CITY 4F COLl3MBIA HEIGHTS, MIPlNESOTA SALE: June 8, 2000 AARC}: Cl20NlI~i ~ CC)Pv1PANY, IPIC. RATING. standard & ~tx~r's Credit P~i~rkets "AA'' BBt: 4.74°io NET TRUE NAME t7F StdDER MATURITY RATE REt}FFERING PRICE INTEREST INTEREST lFebruarga 1) YIELC3 CO5T RATE. CR(ONihd & Cd7hrtPf,NY, NC 2010 2-060°la 1.25 "~ 53.937.206.X1 52,i04,3F~6.29 4.1568°l° RAtnneapols, Iviinnestrta 2011 Z:6009~ 1.5L , Va'ELLS FAI~t30 EfRJKFRA~E SER~tI4:ES, LLC 2012 2.0609'° i.7' It14nnC?aI,aC3I3S. I's~r[nnE?.S{3ta 201 ~s 2254' f® 2. - 201 d 3 6 /0 2.400. _ 24 1 3 . 3. i. '_ ~ 24;G - .~~~ +ti. ulJ _~~~: ~. 2G~~ :. :- - _: 4. :124`• 4 ` 130 ~ 4. - ,,• 42569v 4. i ~+ " 4.250°k 4.25E °o ~_2_ ••• 4.250°~ 4.2504k 2020:."' 4.500°!° 4.500°f~ 2029"`*' 4.560°U 4 X00°1° 2030"" 4.50090 4.54}0 2{339""• 4.525°fa 4.6254k 2632"'*` 4.625°k 4.625G~ 20133`*"°' 4'25°~ 4.625°l° 24134'"`"" 4.750 4.750°.~ 2035°'""' 4 750°k 4.750 2036`*<"• 4 750°k 4.756b~ 2037':'.""` 4.7509'6 4.750"' 2638°""` 4.750°I° 4.750°~ `SuEasequent to txid ape g the 2011 mattarity decreased X10,000 tes $185,000, the 2`' maturihy decreased 510,000 tc ; the 2015 maturity decrease' S "~ to X205,000, the 2019 mat~rit'r increased X10,000 Ica ""'00. °` `.he '2021 mahsr~t~r increases 3~,t tta 6140,000 the 2022 maturely increas 1.00 ) to S 940,000 the 2023 maturit:~ rracreased X5,006 fo 5 :and the 2027 maturahy increases ,000 to $75,000 in maturity a< ae. kdjusled Price - ~3.9;~7,298.20 Adjusted Net Interest C~sf - w2,116,055 67 Adjusted TIC - 4.1509°k `'800;OOE7 Term S©nd due 2024 tr~ith m~: i,.taty redertapti0n in 2{723 *ffi"$205,00(7 Tema E3cjnd e ; ?7':. ~sy redempi _,n n 2fl25-2t726 fAdrusted ameunf of ~21t},(7ClCi) g*"240,000 Term I~o~' ~ : ~ <` 30 +... r .1 ..aato: y redern~ ~ in 2028-2029 >•x..~285,000 Tern ^ca = 2L.~3 ~ "a r. ;n~_;«ta~ry red r ''>031-2082 "``"5807;000 Terra Bc ; a.rue 2u38 wrtla mandatory reaemt _rra in 2034-2037 352627~~2 A.1Y CL162-44 X3,885,00{1 General Obligation Public Facilities Bontls. Series 284SA City cf Columbia Heights.. Minsata Page 2 NET TRUE NLt3VlE OF BIDDER AARTURITY RATE REOFFERING PRICE INTEREST INTEREST (February 1~ YIELO COST RArE laic c ? e ._ a~f=~rs Ives 3e; i - ~t~ N~7RTH[_Fr9~;Cs SEC#JRITIES, IIsiC. PAin~reapafis. #~€r~nesata 2010 2011 2012 2013 2014 2095 2010 2471 a 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2035 2037 2038 2010 2011 2012 2013 2014 2015 2016 2017 2018 2010 2020 202'[ 2022 2023 2024 2025 2026 2027 2028 2029. 203(I 2039 2032 2033 2C_ i,. ,.. ~f,'7 2C~- 3..: t°ln 3.Oi A4 3. 3. 3 Dad, z 4 f' ;' . 4.12 are 43 4.4: s 4! Y 4.5 ~ y ~_~ 4.60 _ } 4.s , 4.fi: .~ 4_d _.: r 4_I , 4.700" 3 4.7_. -~ 4.70€1°Iff 4.700~,~ 3.9 3.4 31 3. 3 4 ~ 32-~_ 3.4(10 3.6" ~ , 3.`ru0 i~ 3.800°k 3:900°k 4.0(10°k 4.100°l~ 4.200°l8 4.2047°k 4.350°1a 4.350°Ao 4.500% 4..500. W 4_fi °k d 't 4.70_ 4."t--- 4.,--% 4.€ 0°fa 4 ~ .~ 4.900% X3,944,932.30 $2,109,952.95 4.1758apQ ~3.885,812.5Ct ~r2,141,55~38 4.2654°l0 3i2(~27~Z AJP CL162-4=1 $3,935,Dt1Q Generaf £}biigatiors Pubtic Faciiities 8ar~cts, Series 20U9A City of Cciumbia Heights. I~9innesata Page 3 NET TRflE N E OF BIDDER. N4ATURITY RATE RE4FFERIP{G PRICE INTEREST fNTEREST February 1} YIELD COST RATE UHS FftdAls3CfAi. SER`JIUES IFC. 201fl 2."_"'~, hew Y€srk, hew Yor#4 2611 2 r - z61z ~_~ - z614 ~.~ 3 2615 -__ 2616 s., 2617 3.7~ z01s 4.6_ .~ 2019 =~_ z6z6 4. z6z1 4 z6z2 4. zOZS 4.67= 2624 4.. 2025 4.12E" 2026 4.2 2027 4.375°h 2628 4.500°.~ 26zs 4.5af~°~~ z636 4.5ao~ 2031 4.525°IG 2632 4.750°IG z633 4.750~~ 2034 4.756° 2035 4.756°io 2036 4.875°,~ 2637 4.875°& 2038 5.6170°!c °~lil~aa~kee. ~PmRscansir 201'1 2.6~3°lb 2012 23~ 2613 2.5 - 2014 3.t' "~'i5 3." z61s 3.z 2C. '.~_ 3.5:~:.~ ~C~6 4.C s 2621 4. - 2022 ~- 2623 4. z6z4 4. 2625 4.-: __ z6zs 4. ; - 2627 4.4 z6z~ 4.4 z6z~ 4.4 2030 ; S.fJ 2031 _ 5._- ~m 2032 5A :~ 2633 5.0 2{134 5.8 2035 5.fa _ _ ; 2635 5.{l I°fc 2637 5.0 - . 2(13$ 5.fl 'r'ti 53,830.425.135 ~2,187,043.2£~ 4.3504°k 53,808,487.20 52,205,295.55 4.36310~~ 352b27v2 A.1P CL l n2-44 i~ .• a 1 x'"s 4 ~ ~ t ~ ~. x 4` ~~ ~'r ~.rl t L.. r L-A ~., '.. ~ ~'~ r6 1 __ ~ _ ~ ~ .- _v - v _ , L ~° ~` (fAp FRS ~H PUftI IC RNANCF C~inr~~c~t~ p~~e~a'~e 651-697-8500 Otfices also in Wisconsin and Illinois fa.; 651-697-8555 3060 Centre Pointe Drive Roseville, MN 55113-11~~ -1- £ ~/ i l v t S ,Yq ~ w. L.--..'.--~ n 1 we^^.. ~ ~t f x ... i P ~ s °~ ~ ' a ~. - ~ ;~ ~ 1 t~f homes withi~~ Tax lncre~tlent District No. ~ ~, - tzistt~ot "Co Iit~~ance the acq ~s~: T-4II~-Mart in the City. ~t~ Standard & I'oor-s "~''~'- ~t~r~ - ~ ~'~~~ ~~ 'tds~. dot-thland Securities, Inc. ~~a ci~r. ~ .682° a ~ Bid 6nterest ,avin~s - rye Low Bid 5.24' 1 °fo §rc~r~"'k 4.8682% II~Ct ~~ ~~~t l~i~ Ostterertce ~~~~te~i `° ~ escx~ts eat dale $0 r°je°ted $580,000 _$580 arY °.~ ~stFtts~. $580,000 $8,120 _p_10% ~u~ * . $g,700 4.8682% -$834 principal ~~°uan°°~ 4.9634% $54,135 $450 pls°ount Att°v~ $54,969 $15,450 True Interest G®st. $15,000 3.40% - 5.10% Gapitaii~ed interest'. ° 5.50% ce ~. 3.50 /° - Gost °f tssuan G°upon R,ates~. July 1• ~~~~ ate. ppa Taxable General Gl~~i~~ ~r the Sale of $580, Fixing Their Farm ~ Resolution Awai~din~ ~ti0r~: ~« anon Tax Increment $andhe ~ L-xecu~o~Bnd 13elivery: G~G~l P4 (}bl~~. and Specifications; Dizectmg ~,nd Providing for Their Payment. Bid `['abulation Ijpdated Debt Service Schedule p~It~~~~~~t~ ~' Bond Resolution ,, The issue size was whet? Counci} authorized its /~pt~i}, ~p09. led to be X930,000 ° he City to use intea-fund loar~ts for this district far several ' ex ~~ , ,p~<) a}lowtn~ t *Size of issue was origttta}I} ap ed 1511Vi`t~' reduced `~'het~t le~istation p =- mo1-e years- lr-,r~~-li~i~ ~ _,0 ~ - ~ ~~ ~~ - ~ " LEAUFRS ~N PUBI.~C FIN RNCF 3060 Centre Point' ~g~or~e 651-697-8500 Fiosevll{c, MN 551 t°~~n6rirb~~4~t.a. tax 651-697-8555 OfiSices also in Wisconsin and Illinois ~ TI $5~O,OOQ Tlc: ~n~rl bflg~tiOr~ Tax Incr~rr~ent Once, ~eri~s 20 ~I LU f E9 T I N TA SALE: June 8, 2009 ARD: NORTHLAND SECURITIES, INC. TING: Standard & Poor°s Credit Markets "AA" BB{: 4.71 IVET TRUE NAME OF B{DDER {V{ATURITY RATE REOFFER{i~G PRICE {NTEREST INTEREST (February 1p YIELD COST RATE NORTHLAND SECURITIES, INC. Minneapolis, Minnesota CRONIN & COMPANY, INC. Minneapolis, Minnesota 2013 2014* 2015`* 2016"~ 2017`"" 2018`"" 2019"`~* 2020"~' 2021 *"`" 2013 2014 2015 2016 2017 2018 2019 2020 2021 3.400% 3.400% 4.150% 4.150% 4.650% 4.650% 5.100% 5.100% 5.100% 4.000% 4.000% 4.750% 4.750°i° 5.100% 5.100% 5.100% 5.500% 5.500% 3.400% $571,880.00 $221,550.42 4.8682% 3.400% 4.150% 4.150% , 4.650% 4.650% 5.100% 5.100% 5.100% °$110,000 Term Bond due 2014 with mandatory redemption in 2013 `*$120,000 Term Bond due 2016 with mandatary redemption in 2015 *'"$130,000 Term Bond due 2018 with mandatory redemption in 2017 *`*'`$220,000 Term Bond due 2021 with mandatory redemption in 2019-2020 $573,240.00 $238,644.17 5.2421 1 ~ ~ ~ ~ _ _ ____._ _.._ - ~ - - ' ~ -` ~ Minnesota phone 651-6°7-4500 3060 Centre Pointe Drive rEtioErisira Pua~ic rirvarvcE Offices also in Wisconsin and Illinois fax 051-697-8556 Roseville, MN 551 1 3-1 1 22 -3- Ci of Columbia Ileightsg ___ __. FINAL - X580,000 G.C. TIF Bonds, Series 2009B e t e i~~ See 1e Date Principal Coupon _____ Interest Total P+l 02/012010 - - I S,I 67.92 1 s,l s7 92 02/012011 - - 2s,98s.00 2s,98s.00 02/012012 - - 2s,98s.00 2s,98s.00 02/012013 ss,000.00 3.400% 2S 98s.00 80,98s.00 02/012014 5s,000 00 3.400% 24.1 I s.00 79,t I s.00 02!012015 60,000.00 4. ] s0% 22,24s.00 82,24s.00 02/012016 60,000.00 4.1 s0% 19,7ss.00 79,7ss.00 02/012017 6s,000.00 4.6s0% 17,265 00 82,26s 00 02/012018 6s,000 00 4.650% 14,242.s0 79,242.s0 02/012019 70 000 00 s.100% 1 I ,220 00 81,220.00 021012020 7s,000 00 s.100% 7,6s0.00 82,6s0 00 02!012021 7s,000.00 5.100°/a 3,82s.00 78,82s.00 Total n580,000A0 - 5213,430A2 $793,430A2 Yield Statistics Bond Year Dollars _ _ Average Life_ _ _ ,_ Average Coupon _ _ ___. NetlnterestCost(NIC)_____. _ True Interest Cost TI( C) Bond Yield for Arbit~e Purposes _.. -___ AlIlnclusiveCost AIC __ $4,56333 7.868 Years 4.6770728°/a 4 8s50129°/a _ -_- 4.8682116% 4 6494262% _- s.29s7s83°/a IRS Form 8038 Net Interest Cost 4 6770728% Weighted Average Maturity 7 R68 Yeats Ser 098 $480K TIF Bds ~ SINGLE PURPOSE ~ 6/ 82009 ~ 1:24 PM -4- Extract of Minutes of Meeting of the City Council of the City of Columbia Heights, Anoka County, Minnesota Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Columbia Heights, Minnesota, was duly held in the City Hali in said City on Monday, June 8, 2009, commencing at 7:00 P.M. The following members were present: and the following were absent: The Mayor announced that the next order of business was consideration of the proposals which had. been received for the purchase of the City's $580,000 Taxable General Obligation Tax Increment Bonds, Series 2009B. The City Finance Director presented a tabulation of the proposals that had been. received in the manner specified in the Official Terms of Proposal for the Bonds. The proposals are as set forth in Exhibit A attached. After due consideration of the proposals, Member then introduced the following written resolution, the reading of which was dispensed with by unanimous consent, and moved its adoption: 35269~~3 AJP CL162-44 RESOLUTION NO. A RESOLUTION AWARDING THE SALE OF $580,000 TAXABLE GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 2009B; FIXING THEIR FORM AND SPECIFICATIONS; DIRECTING THEIR EXECUTION AND DELIVERY; AND PROVIDING FOR THEIR PAYMENT BE IT RESOLVED By the City Council. of the City of Columbia Heights, Anoka County, Minnesota (the "City") as follows: Section 1. Sale of Bonds. 1.01. Back r~ ound. It is hereby determined that: (a) the City and the Columbia Heights Economic Development Authority (the "Authority") have duly established the Kmart/Central Avenue Tax Increment Financing District (the "TIF District") within the Downtown CBD Redevelopment Project (the "Project") pursuant to 1Vlinnesota Statutes, Sections 469.174 through 469.1.799, as amended (the "TIF Act") and Sections 469.001 through 469.047, as amended, which TIF District was certified by the Anoka County Auditor on July 23, 2004; (b) the City is authorized by Section 469.178 of the TIF Act and Minnesota Statutes, Chapter 475, as amended (the "Bond Act"), to issue and sell its general obligation bonds to pay all or a portion of the public redevelopment costs of the Project, as identified in the tax increment financing plan (the "TIF Plan") for the TIF District; (c} the following costs of the Project to be financed by the Bonds (herein defined) are authorized by the TIF Plan: Activity Project Construction Fund Underwriter's Discount Costs of Issuance Capitalized Interest Rounding Amount Cost $500,000.00 8,120.00 1.5,450.00 54,13 5.42 2,294.58 Total $580,000.00 i?698v AJP 01..162-~-1 2 (d} it is necessary and expedient to the sound financial management of the affairs of the City to issue $580,000 Taxable General Obligation Tax Increment Bonds, Series 2009B (the "Bonds") to provide financing for the above-identified costs of the Project; (e) the Mayor and the City Manager are authorized and directed to execute a Tax Increment Pledge Agreement between. the City and. the Authority (the "Pledge Agreement"), in substantially the form on file in City Hall, pursuant to which the Authority pledges certain Available Tax Increment (as defined in the Pledge Agreement) from the TIF District to pay principal of and interest on the Bonds; and (f} the Authority has requested the City to issue and sell its general obligation bonds to finance a portion of the above-identified costs of the Project. 1.02. Award to Purchaser and Interest Rates. The proposal of Northland Securities, Inc. (the "Purchaser") to purchase the Bonds as described in the Terms of Proposal thereof is found and determined to be a reasonable offer and is hereby accepted, the proposal being to purchase the Bonds at a price of $571,880.00 for Bonds bearing interest as follows: Term Bonds due February 1, 2014 at 3.400%. Term Bonds due February 1, 2016 at 4.150%. Term Bonds due February 1, 2018 at 4.650%. Term Bonds due February 1, 2021. at 5.100%. Net interest cost: 4.85501.29%. 1.03. Purchase Contract. The sum of $580 being the amount proposed by the Purchaser in excess of $571.,300 shall be credited to the Project Fund hereinafter created. The City Finance Director is directed to retain the good faith check of the Purchaser, pending completion of the sale of the Bonds, and to return the good faith checks of the unsuccessful proposers. The Mayor and the City Finance Director are directed to execute a contract with the Purchaser on behalf of the City. 1.04. Terms and Principal Amounts of the Bonds. The City will forthwith issue and sell the Bonds pursuant to the TIF Act and the Bond Act in the total principal amount of $580,000, originally dated July 1, 2009, in the denomination of $5,000 each or any integral multiple thereof, numbered No. R-1, upward, bearing interest as above set forth, and maturing serially on February 1 in the years and amounts as follows: 35269w3 AJP CL162-4-~ 3 Term Bonds due February 1, 2014 in the aggregate principal amount of $110,000. Term Bonds due February 1, 2016 in the aggregate principal amount of $120,000. Term Bonds due February 1, 2018 in the aggregate principal amount of $130,000. Term. Bonds due February 1, 2021. in the aggregate principal amount of $220,000. 1.05. Combined Maturities. The maturity schedule of the Bonds shall be combined with the maturity schedule of the City's $3,935,000 General Obligation Public Facilities Bonds, Series 2009A, which combined maturities conform to Section 475.54, Subdivision 1 of the Bond Act. 1..06. Optional Redemption. The City may elect on February 1, 2019, and on any date thereafter to prepay Bonds due on or after February 1, 2020. Redemption may be in whole or in part and if in part, at the option of the City and in such. manner as the City will determine. If less than all Bonds of a maturity are called for redemption, the City will notify DTC (as defined in Section 7 hereof) of the particular amount of such maturity to be prepaid. DTC will determine by lot the amount of each participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. Prepayments will be at a price of par plus accrued interest. 1..07. Mandatory Redemption. The Term Bonds are subject to mandatory sinking fund redemption. and shall be redeemed in part by lot at par plus accrued interest on the sinking fund installment dates and in the principal amounts as follows: Sinking Fund Installment Date Principal Amount February 1, 2014 Term Bonds 2013 $55,000 201.4 (maturity) 55,000 2016 Term Bonds 2015 60,000 2016 (maturity) 60,000 2018 Term Bonds 2017 65,000 2018 (maturity) 65,000 2021 Term Bonds 2019 70,000 2020 75,000 2021 (maturity) 75,000 352nys~ ~ .a.i~~ cl. ~ r,z-=~ 4 The specific Term Bonds to be redeemed will be selected by lot by the Registrar. All prepayments will be at a price of par plus accrued interest. Section 2. Registration and Payment. 2.01. Registered Form. The Bonds will be issued only in fully registered form. The interest thereon and, upon. surrender of each Bond, the principal amount thereof, is payable by check. or draft issued by the Registrar described herein. 2.02. Dates; Interest Payment Dates. Each Bond will be dated as of the last interest payment date preceding the date of authentication. to which interest on the Bond has been paid or made available for payment, unless (i) the date of authentication is an interest payment date to which interest has been paid or made available for payment, in which case the Bond will be dated as of the date of authentication, or (ii) the date of authentication is prior to the first interest payment date, in which case the Bond will be dated as of the date of original issue. The interest on the Bonds is payable on February 1 and August 1 of each year, commencing February 1, 2010, to the registered owners of record as of the close of business on the fifteenth day of the immediately preceding month, whether or not that day is a business day. 2.03. Registration. The City will appoint a bond registrar, transfer agent, authenticating agent and paying agent (the "Registrar"). The effect of registration and the rights and duties of the City and the Registrar with respect thereto are as follows: (a) Re ig ster. The Registrar must keep at its principal corporate trust office a bond register in which the Registrar provides for the registration of ownership of Bonds and the registration of transfers and exchanges of Bonds entitled to be registered, transferred or exchanged. (b) Transfer of Bonds. Upon surrender for transfer of a Bond duly endorsed by the registered owner thereof or accompanied by a written instrument of transfer, in form 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 will authenticate and deliver, in the name of the designated transferee or transferees, one or more new Bonds of a like aggregate principal amount and maturity, as requested by the transferor. The Registrar may, however, close the books for registration of any transfer after the fifteenth day of the month preceding each interest payment date and until that interest payment date. (c) Exchange of Bonds. When Bonds are surrendered by the registered owner for exchange the Registrar will authenticate and deliver one or more new Bonds of a like aggregate principal amount and maturity as requested by the registered owner or the owner's attorney in writing. (d} Cancellation. Bonds surrendered upon transfer or exchange will be promptly cancelled by the Registrar and thereafter disposed of as directed by the City. (e) Improper or Unauthorized Transfer. Vdhen a Bond is presented to the Registrar for transfer, the Registrar may refuse to transfer the Bond until the Registrar is satisfied that the endorsement on such Bond or separate instrument of transfer is valid and genuine and that the requested transfer is legally authorized. The Registrar will incur no liability for the refusal, in good faith, to make transfers which it, in its judgment, deems improper or unauthorized. (f) Persons Deemed Owners. The City and the Registrar may treat the person in whose name a Bond is registered in the bond register as the absolute owner of the Bond, whether the Bond is overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on the Bond and for all other purposes, and payments so made to a registered owner or upon the owner's order will be valid and effectual to satisfy and discharge the liability upon the Bond to the extent of the sum or sums so paid. (g) Taxes, Fees and Charges. The Registrar may impose a charge upon the owner thereof for a transfer or exchange of Bonds sufficient to reimburse the Registrar for any tax, fee or other governmental charge required to be paid with respect to the transfer or exchange. (h} Mutilated, Lost, Stolen or Destroyed Bonds. If a Bond becomes mutilated or is destroyed, stolen or lost, the Registrar will deliver a new Bond of like amount, number, maturity date and tenor in exchange and substitution for and upon cancellation of the mutilated Bond or in lieu of and in substitution for a Bond destroyed, stolen or lost, upon the payment of the reasonable expenses and charges of the Registrar in connection therewith; and, in the case of a Bond destroyed, stolen or lost, upon filing with the Registrar of evidence satisfactory to it that the Bond was destroyed, stolen or lost, and of the ownership thereof, and upon furnishing to the Registrar an appropriate bond or indemnity in form, substance and amount satisfactory to the Registrar, in which both the City and the Registrar must be named as obligees. Bonds so surrendered to the Registrar will be cancelled by the Registrar and evidence of such cancellation must be given to the City. If the mutilated, destroyed, stolen. or lost Bond has already matured or been called for redemption in accordance with its terms it is not necessary to issue a new Bond prior to payment. (i) Redemption. In the event any of the Bonds are called for redemption, notice thereof identifying the Bonds to be redeemed will be given by the Registrar by mailing a copy of the redemption notice by first class mail (postage prepaid) to the registered owner of each Bond to be redeemed at the address shown on the registration books kept by the Registrar and by publishing the notice if required by law. Failure to 3~26yRv3 A il' ('L 1 f,2-~14 give notice by publication or by mail. to any registered owner, or any defect therein, will not affect the validity of the proceedings for the redemption of Bonds. Bonds so called for redemption will cease to bear interest after the specified redemption date, provided that the funds far the redemption are on deposit with the place of payment at that time. 2.04. Appointment of Initial Re istrar. The City appoints U.S. Bank National Association, Saint Paul, Minnesota, as the initial Registrar. The Mayor and the City Manager are authorized to execute and deliver, on behalf of the City, a contract with the Registrar. Upon merger or consolidation of the Registrar with another corporation, if the resulting corporation is a bank or trust company authorized by law to conduct such business, the resulting corporation is authorized to act as successor Registrar. The City agrees to pay the reasonable and customary charges of the Registrar for the services performed. The City reserves the right to remove the Registrar upon 30 days' notice and upon the appointment of a successor Registrar, in which event the predecessor Registrar must deliver all cash and Bonds in its possession to the successor Registrar and must deliver the bond register to the successor Registrar. On or before each principal or interest due date, without further order of this Council, the City Finance Director must transmit to the Registrar moneys sufficient for the payment of all principal and interest then due. 2.05. Execution, Authentication and Delivery. The Bonds will be prepared under the direction of the City Manager and executed on behalf of the City by the signatures of the Mayor and the City Manager, provided that all signatures may be printed, engraved or lithographed. facsimiles of the originals. If an officer whose signature or a facsimile of whose signature appears on the Bonds ceases to be such officer before the delivery of any Bond, that signature or facsimile will nevertheless be valid and sufficient for all purposes, the same as if the officer had remained in office until delivery. Notwithstanding such execution, a Bond will not be valid or obligatory for any purpose or entitled to any security or benefit under this Resolution unless and until a certificate of authentication on the Bond has been duly executed by the manual signature of an authorized representative of the Registrar. Certificates of authentication on different Bonds need not be signed by the same representative. The executed certificate of authentication on a Bond is conclusive evidence that it has been authenticated and delivered under this Resolution. When the Bonds have been so prepared, executed and authenticated, the City Manager will deliver the same to the Purchaser upon payment of the purchase price in accordance with the contract of sale heretofore made and executed, and the Purchaser is not obligated to see to the application of the purchase price. 2.06. Temporary Bonds. The City may elect to deliver in lieu of printed definitive Bonds one or more typewritten temporary Bonds in substantially the form set forth in Section. 3 hereof with such changes as may be necessary to reflect more than one maturity in a single temporary bond. Upon the execution and delivery of definitive Bonds the temporary Bonds will be exchanged therefor and cancelled. 3J2698r3 AJP CL162-~14 7 Section 3. Form of Bond. 3.01. The Bonds will be printed or typewritten in substantially the following form: No. R- UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF ANOKA CITY OF COLUMBIA HEIGHTS TAXABLE GENERAL OBLIGATION TAX INCREMENT BOND, SERIES 2009B Date of Rate Maturity Original Issue CUSIP February 1, 20_ July 1, 2009 Registered Owner: Cede & Co. The City of Columbia Heights, Minnesota, a duly organized and existing municipal corporation in Anoka County, Minnesota (the "City"), acknowledges itself to be indebted and for value received hereby promises to pay to the Registered Owner specified above or registered assigns, the principal sum of $ on the maturity date specified above, with interest thereon from the date hereof at the annual rate specified above, payable February 1 and August 1 in each year, commencing February 1, 2010, to the person in whose name this Bond is registered at the close of business on the fifteenth day (whether or not a business day) of the immediately preceding month. The interest hereon and, upon presentation and surrender hereof, the principal hereof are payable in lawful money of the United States of America by check or draft by U.S. Bank National Association, Saint Paul, Minnesota, as Registrar, Paying Agent, Transfer Agent and Authenticating Agent, or its designated successor under the Resolution described herein. For the prompt and full payment of such principal. and interest as the same respectively become due, the full faith and credit and taxing powers of the City have been and are hereby irrevocably pledged. The City may elect on February 1, 2019, and on any date thereafter to prepay Bonds due on or after February 1, 2020. Redemption may be in whole or in part and if in part, at the option of the City and in such manner as the City will determine. If less than all Bonds of a maturity are called for redemption, the City will notify Depository Trusi Company ("DTC") of the particular amount of such maturity to be prepaid. DTC will determine by lot the amount of each participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. Prepayments will be at a price of par plus accrued interest. The Term Bonds are subject to mandatory sinking fund redemption and shall be redeemed in part by lot at par plus accrued interest on the sinking fund installment dates and in the principal amounts as follows: Sinking Fund Installment Date Principal Amount February 1, 2014 Term Bands 2013 $55,000 2014 (maturity) 55,000 2016 Term Bonds 2015 60,000 2016 (maturity) 60,000 2018 Term Bonds 2017 65,000 2018 (maturity) 65,000 2021 Term Bonds 2019 70,000 2020 75,000 2021 (maturity) 75,000 The specific Term Bonds to be redeemed will be selected by lot by the Registrar. All prepayments will be at a price of par plus accrued interest. This Bond is one of an issue in the aggregate principal amount of $580,000, all of like original issue date and tenor, except as to number, maturity date, redemption privilege, and interest rate, all issued pursuant to a resolution adopted by the City Council on June 8, 2009 (the "Resolution"), for the purpose of providing money to aid in financing certain public redevelopment costs within the Downtown Central Business District Redevelopment Project in the City, pursuant to and in full. conformity with the home rule charter of the City and the Constitution and laws of the State of Minnesota, including Minnesota Statutes, Sections 469.174 to 469.1799, Sections 469.001 through 469.047, and Chapter 475, as amended, and the principal hereof and interest hereon are payable primarily from tax increments resulting from increases in taxable valuation. of real. property in the K-Mart/Central Avenue Tax Increment Financing District within the Project, as set forth in the Resolution to which reference is made for a full statement of rights and powers thereby conferred. The full faith and credit of the City are irrevocably pledged for payment of this Bond and the City Council has obligated itself to levy ad valorem taxes on all taxable property in the City in the event of any deficiency in tax increments pledged, which taxes may be levied without limitation as to rate or amount. The Bonds of this 3526~)8v3 .~.1P CL162-a~=~ 9 series are issued only as fully registered Bonds in denominations of $5,000 or any integral multiple thereof of single maturities. As provided in the Resolution and subject to certain limitations set forth therein, this Bond is transferable upon the books of the City at the principal office of the Registrar, by the registered owner hereof in person or by the owner's attorney duly authorized in writing, upon surrender hereof together with a written. instrument of transfer satisfactory to the Registrar, duly executed by the registered owner or the owner's attorney; and may also be surrendered in exchange for Bonds of other authorized denominations. Upon such transfer or exchange the City will cause a new Bond or Bonds to be issued in the name of the transferee or registered owner, of the same aggregate principal amount, bearing interest at the same rate and maturing on the same date, subject to reimbursement for any tax, fee or governmental charge required to be paid with respect to such transfer or exchange. The City and the Registrar may deem and treat the person in whose name this Bond is registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose of receiving payment and for all. other purposes, and neither the City nor the Registrar will be affected by any notice to the contrary. IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts, conditions and things required by the home rule charter of the City and the Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be performed preliminary to and in the issuance of this Bond in order to make it a valid and binding general obligation of the City in accordance with. its terms, have been done, do exist, have happened and have been performed as so required, and that the issuance of this Bond does not cause the indebtedness of the City to exceed any constitutional, statutory, or charter limitation of indebtedness. This Bond is not valid or obligatory for any purpose or entitled to any security or benefit under the Resolution until the Certificate of Authentication hereon has been executed by the Registrar by manual signature of one of its authorized representatives. 352698x3 AJP C`L 1 fit-44 ~ 0 IN WITNESS WHEREOF, the City of Columbia Heights, Anoka County, Minnesota, by its City Council, has caused. this Bond to be executed on its behalf by the facsimile or manual signatures of the Mayor and the City Manager and has caused this Bond to be dated as of the date set forth below. Dated: CITY OF COLUMBIA HEIGHTS, MINNESOTA (Facsimile) (Facsimile} City Manager Mayor CERTIFICATE OF AUTHENTICATION This is one of the Bonds delivered pursuant to the Resolution mentioned within. U.S. BANK NATIONAL ASSOCIATION By Authorized Representative The following abbreviations, when used in the inscription on the face of this Bond, will be construed as though they were written out in full according to applicable laws or regulations: TEN COM -- as tenants UNIF GIFT MIN ACT Custodian. in common (Gust) (Minor) TEN ENT -- as tenants under Uniform Gifts or by entireties Transfers to Minors JT TEN -- as joint tenants with right of survivorship and Act . . . not as tenants in common (State) Additional abbreviations may also be used though not in the above list. 352n9R~~; n.)AC'L162-44 ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto the within Bond and ail rights thereunder, and does hereby irrevocably constitute and appoint attorney to transfer the said Bond on the books kept for registration of the within Bond, with full power of substitution in the premises. Dated: Notice: The assignor's signature to this assignment must correspond with the name as it appears upon the face of the within Bond in every particular, without alteration or any change whatever. Signature Guaranteed: NOTICE: Signature(s) must be guaranteed by a financial institution that is a member of the Securities Transfer Agent Medallion Program ("STAMP"), the Stock Exchange Medallion Program ("SEMP"), the New York Stock Exchange, Inc. Medallion. Signatures Program ("MSP") or other such "signature guarantee program" as may be determined by the Registrar in addition to, or in substitution for, STAMP, SEMP or MSP, all in accordance with the Securities Exchange Act of 1934, as amended. The Registrar will not effect transfer of this Bond unless the information concerning the assignee requested below is provided. Name and Address: (Include information for all joint owners if this Bond is held by joint account.) 3526~)$v3 AJP CLIG2-~4 12 Please insert social security or other identifying number of assignee PROVISIONS AS TO REGISTRATION The ownership of the principal of and interest on the within Bond has been registered on the books of the Registrar in the name of the person. last noted below. Signature of Date of Registration Registered Owner Officer of Re ig strar Cede & Co. Federal ID #13-25551.19 3.02. Approving Le ag 1 Oyinion. The City Finance Director is authorized and directed to obtain a copy of the proposed approving legal opinion of Kennedy & Graven, Chartered, Minneapolis, Minnesota, which is to be complete except as to dating thereof and to cause the opinion to be printed on or accompany each Bond. Section 4. Payment; Security; Pledges and Covenants. 4.01. Funds and Accounts. (a) Debt Service Fund. The Bonds are payable from the Taxable General Obligation Tax Increment Bonds, Series 2009B Debt Service Fund (the "Debt Service Fund") hereby created, and all Available Tax Increment (as defined in the Pledge Agreement) received by the City from the Authority pursuant to the Pledge Agreement is pledged to the Debt Service Fund. If a payment of principal or interest on the Bonds becomes due when there is not sufficient money in the Debt Service Fund to pay the same, the City Finance Director is directed to pay such principal or interest from the general fund of the City, and the general fund will be reimbursed for those advances out of the proceeds of Available Tax Increment when received. There is additionally appropriated to the Debt Service Fund proceeds of the Bonds in the amount of $54,135.42, representing capitalized interest through August 1, 2012; and any rounding amount, to the extent directed for deposit therein by the City's financial advisor. (b) Project Fund. The proceeds of the Bonds, less the appropriations made in paragraph (a), together with any other funds appropriated for the Project, will be deposited in a separate Project Fund to be used solely to defray costs of the Project described in Section 1..01. hereof. Vdhen the identified activities are completed and the costs thereof paid, the Project Fund is to be closed and any balance therein shall be deposited in the Debt Service Fund. 352v98v3 n~t~ c~ i r,2-4=~ 13 4.02. No Tax Levy. It is determined that the estimated collection. of Available Tax Increment for payment of principal and interest on the Bonds will produce at least five percent in excess of the amount needed to meet, when due, the principal and interest payments on the Bonds and that no tax levy is needed ai this time. 4.03. County Auditor Certificate as to Registration. The City Finance Director is directed to file a certified copy of this Resolution with the County Auditor of Anoka County and obtain the certificate required by Minnesota Statutes, Section. 475.63. Section 5. Authentication of Transcript. 5.01. City Proceedings and Records. The officers of the City are authorized and directed. to prepare and furnish to the Purchaser and to the attorneys approving the Bonds, certified copies of proceedings and records of the City relating to the Bonds and to the financial condition and affairs of the City, and such other certificates, affidavits and transcripts as may be required to show the facts within their knowledge or as shown by the books and records in their custody and under their control, relating to the validity and marketability of the Bonds, and such instruments, including any heretofore furnished, will be deemed representations of the City as to the facts stated therein. 5.02. Certification as to Official Statement. The Mayor, the City Manager, and the City Finance Director are authorized and directed to certify that they have examined the Official Statement prepared and circulated in connection with the issuance and sale of the Bonds and that to the best of their knowledge and belief the Official Statement is a complete and accurate representation of the facts and representations made therein as of the date of the Official Statement. 5.03. Payment of Costs of Issuance. The City authorizes the Purchaser to forward the amount of Bond proceeds allocable to the payment of issuance expenses (other than amounts payable to Kennedy & Graven, Chartered as Bond Counsel) to Bank. of America, N.A., on the closing date for further distribution as directed by the City's financial adviser, Ehlers & Associates, Inc. Section 6. Book-Entry System; Limited Obligation of City. 6.01. DTC. The Bonds will be initially issued in the form of a separate single typewritten. or printed fully registered Bond for each of the maturities set forth in Section 1.04 hereof. Upon initial issuance, the ownership of each Bond will be registered in the registration books kept by the Registrar in the name of Cede & Co., as nominee for The Depository Trust Company, New York, New York, and its successors and assigns ("DTC"). Except as provided in this Section, all of the outstanding Bonds will be registered in the registration books kept by the Registrar in the name of Cede & Co., as nominee of DTC. 3~26y8v3 A.IP CI , i r~2-~ 14 6.02. Participants. With. respect to Bonds registered in the registration. books kept by the Registrar in the name of Cede & Co., as nominee of DTC, the City and the Registrar will have no responsibility or obligation to any broker dealers, banks and other financial institutions from time to time for which DTC holds Bonds as securities depository (the "Participants") or to any other person on behalf of which a Participant holds an interest in the Bonds, including but not limited to any responsibility or obligation with respect to (i} the accuracy of the records of DTC, Cede & Co. or any Participant with respect to any ownership interest in the Bonds, (ii) the delivery to any Participant or any other person (other than a registered owner of Bonds, as shown by the registration books kept by the Registrar) of any notice with respect to the Bonds, including any notice of redemption, or (iii) the payment to any Participant or any other person, other than a registered owner of Bonds, of any amount with respect to principal of, premium, if any, or interest on the Bonds. The City and the Registrar may treat and consider the person in whose name each Bond is registered in the registration books kept by the Registrar as the holder and absolute owner of such Bond for the purpose of payment of principal, premium and interest with respect to such Bond, for the purpose of registering transfers with respect to such Bonds, and for all other purposes. The Registrar will pay all principal of, premium, if any, and interest on the Bonds only to or on the order of the respective registered owners, as shown in the registration books kept by the Registrar, and all such payments will be valid and effectual to fully satisfy and discharge the City's obligations with respect to payment of principal of, premium, if any, or interest on the Bonds to the extent of the sum or sums so paid. No person other than a registered owner of Bonds, as shown. in the registration books kept by the Registrar, will receive a certificated Bond evidencing the obligation of this resolution. Upon delivery by DTC to the City Finance Director of a written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., the words "Cede & Co.," will refer to such new nominee of DTC; and upon receipt of such a notice, the City Finance Director will promptly deliver a copy of the same to the Registrar. 6.03. Representation Letter. The City has heretofore executed and delivered to DTC a Blanket Issuer Letter of Representations (the "Representation Letter") which. shall govern payment of principal of, premium, if any, and interest on the Bonds and notices with respect to the Bonds. Any Registrar subsequently appointed by the City with respect to the Bonds will agree to take all action necessary for all representations of the City in the Representation Letter with respect to the Registrar to be complied with at all times. 6.04. Transfers Outside Book-Entry System. In the event the City, by resolution of the City Council, determines that it is in the best interests of the persons having beneficial interests in the Bonds that they be able to obtain Bond certificates, the City will notify DTC, whereupon DTC will notify the Participants, of the availability through DTC of Bond certificates. In such event the City will issue, transfer and exchange Bond certificates as requested by DTC and any other registered owners in accordance with the provisions of this Resolution. DTC may determine to discontinue providing its services with respect to the Bonds at any time by giving notice to the City and discharging its responsibilities with respect thereto under applicable law. 352f,98~-3 A.IP Cl_I(,2-4~ 15 In such event, if no successor securities depository is appointed, the City will issue and the Registrar will authenticate Bond certificates in accordance with this resolution and the provisions hereof will apply to the transfer, exchange and method of payment thereof. 6.05. Payments to Cede & Co. Notwithstanding any other provision of this Resolution to the contrary, so long as a Bond is registered in the name of Cede & Co., as nominee of DTC, payments with respect to principal of, premium, if any, and interest on the Bond and notices with respect to the Bond will be made and given, respectively in the manner provided in DTC's Operational Arrangements, as set forth in the Representation Letter. Section 7. Continuing Disclosure. 7.01. City Compliance with. Provisions of Continuing Disclosure Certificate. The City hereby covenants and agrees that it will comply with and carry out all of the provisions of the Continuing Disclosure Certificate. Notwithstanding any other provision of this Resolution, failure of the City to comply with the Continuing Disclosure Certificate is not to be considered an event of default with respect to the Bonds; however, any Bondholder may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the City to comply with its obligations under this section. 7.02. Execution of Continuing Disclosure Certificate. "Continuing Disclosure Certificate" means that certain Continuing Disclosure Certificate executed by the Mayor and the City Manager and dated the date of issuance and delivery of the Bonds, as originally executed and as it may be amended from time to time in accordance with the terms thereof. Section 8. Defeasance. When all Bonds and all interest thereon have been discharged as provided in this Section, all pledges, covenants and other rights granted by this Resolution to the holders of the Bonds will cease, except that the pledge of the full faith and credit of the City for the prompt and full payment of the principal of and interest on the Bonds will remain in full force and effect. The City may discharge all Bonds which are due on any date by depositing with the Registrar on or before that date a sum sufficient for the payment thereof in full. If any Bond should not be paid when due, it may nevertheless be discharged by depositing with the Registrar a sum sufficient for the payment thereof in full with interest accrued to the date of such deposit. 3~3698v3 .4JP C'L162-fi=t I6 The foregoing Resolution was introduced by Member and seconded by Member The following voted in favor of the Resolution: The following voted against: The following were absent: Adopted: June 8, 2009. ATTEST: City Clerk Mayor 3526983 A.IP CLI62-={4 17 STATE OF MINNESOTA ) COUNTY OF ANOKA ) SS. CITY OF COLUMBIA HEIGI-ITS) I, the undersigned, being the duly qualified and acting Manager of the City of Columbia Heights, Anoka County, Minnesota, do hereby certify that I have carefully compared the attached and foregoing extract of minutes of a regular meeting of the City Council of the City held on Monday, June 8, 2009 with the original minutes on file in my office and the extract is a full, true and correct copy of the minutes insofar as they relate to the issuance and sale of $580,000 Taxable General Obligation Tax Increment Bonds, Series 2009B of the City. WITNESS My hand officially as such. City Manager and the corporate seal of the City this day of , 2009. City Manager City of Columbia Heights, Minnesota (SEAL) 3i26yRv3 A.IP CLlh3-4-~ STATE OF MINNESOTA COUNTY AUDITOR'S CERTIFICATE AS TO COUNTY OF ANOKA REGISTRATION WHERE NO AD VALOREM TAX LEVY I, the undersigned County Auditor of Anoka County, Minnesota, hereby certify that a resolution adopted by the City Council of the City of Columbia Heights, Minnesota, on June 8, 2009, relating to Taxable General Obligation Tax Increment Bonds, Series 2009B, in the amount of $580,000, dated July 1, 2009, has been filed in my office and said obligations have been registered on the register of obligations in my office. WITNESS My hand and official seal this day of , 2009. County Auditor Anoka County, Minnesota (SEAL) Deputy EXHIBIT A PROPOSALS 3;wyx~- ; n.i i~ ci . ~ c,z--ta Bld TABULAT#ON S58(#,OEiO Taxable General flbligaticsn Tax increment Blends, Series ZOE}9B CITY OF C®LIIMBIA HEIGHTS, MINNESQTA SALE: June S. 2CI0~ AWARD: Nt~FtTHLAf"J~7 SEGURITIEa. 1P3G. RATING: Standard ~ Paor`s credit PJlarkets ^~," NET TRUE NAME OF BICCtER Po~ATURrrY RATE REOFFERING PRICE INTEREST INTEREST 1Febcuary 1) YIEt_D COST RATE BSI: 4.71°l0 IdC7FtT1-ILAt~tE} SECU€ZkT1ES. Ih~IG 1~linneapalis, C4~linnesota 2 a ' 13' $ .4 C"", 3 .4 C D Q "lam e ~ ~^yy. { 2V 1~* + ~ q vF.4~~. S y ~ y ~ y .J.YVVfl 2(715°„ 4. d_1~0°;~ 2Q'16'g 1 - - 4.150°l0 2 017"' 4.65. _ y 4.650°~ +p + LI~ i V~4 ~_1 3 .. . . .. v 4. U ~ W 4f0 ~'y ~wata G V gq ~~ // ry(( ry 5_ &VSI~JR .y /q ( '~ 5.1t VLJ~/Q ry/yryry ~yy,, r axasx S L 3 L q J. XX 1 J a C/ 9 n ~_ S V Q4j 4 ry } ~+~ y g 2021cts• ( yi y r ~ BViIIQt6 .{ } y / ~. tLl~A1C $57,$80.CIQ S22i,~50.42 4.$$$2~1a Iti ~n _ ~~_ ry2013 4,q.. _. 2014 4. 2~y0t115 -.7- L6~15 q 6 4. g~ _ ~_q~~6 2/4'g1 1 J. H{((. V 201$ 5.1b ._ 2+~}01~a ~.~~- b L~y+L-gag ••~ •-. ._ 202 I J. ~ . 'S110,0(1~ Teem Band due 213. = ~ . tdatary redrr-~;;+i ~3~ in 2013 >5120 ~ ;~ Term Bond due 2... 3 ..~ i...~ndatary rejer;~:~~n in 201 ,,~5 ~,G=, Term Band due 201 3 . itll mandatory redemption In 2017 ~~" ~Z2G, ~JO Term Band due 2021 with mandatory redernpt3an in 20'l~-2Q2fl y573,240.00 X23$,644. 3 f ~.GYL k ~~0 PUBLIC HEARINGS TO BE REMOVED FROM THE AGENDA FOR THE JUNE 8, 2009 MEETING. REMOVE -MOTION: Move to adopt Resolution Number 2009-81, being a 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 Fredrick Sila regarding rental property at 4344 2"d Street N.E.