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HomeMy WebLinkAbout2024-07-22 City Council Meeting MinutesA. C. E. MINUTES MAPLEWOOD CITY COUNCIL 7:00 P.M. Tuesday, July 22, 2024 City Hall, Council Chambers Meeting No. 14-24 CALL TO ORDER A meeting of the City Council was held in the City Hall Council Chambers and was called to order at 7:11 by Mayor Abrams. Mayor Abrams gave an update on the Purple Line discussion that took place at the Workshop meeting and stated there would be another presentation at a future council meeting. PLEDGE OF ALLEGIANCE ROLL CALL Marylee Abrams, Mayor Present Rebecca Cave, Councilmember Present Kathleen Juenemann, Councilmember Present Chonburi Lee, Councilmember Present Nikki Villavicencio, Councilmember Present APPROVAL OF AGENDA Mayor Abrams added a Resolution to agenda item H1. The following items were added to Council Presentations: Philippine Center National Night Out Parks Tour Councilmember Lee moved to approve the agenda as amended. Seconded by Councilmember Juenemann Ayes — All The motion passed. APPROVAL OF MINUTES 1. July 08, 2024 City Council Workshop Meeting Minutes Councilmember Juenemann moved to approve the July 08, 2024 City Council Workshop Meeting Minutes as submitted. Seconded by Councilmember Villavicencio Ayes — All July 22, 2024 City Council Meeting Minutes 1 The motion passed. 2. July 08, 2024 City Council Meeting Minutes Councilmember Cave moved to approve the July 08, 2024 City Council Meeting Minutes as submitted. Seconded by Councilmember Juenemann Ayes — All The motion passed. F. APPOINTMENTS AND PRESENTATIONS 1. Administrative Presentations a. Council Calendar Update City Manager Sable gave an update to the council calendar and reviewed other topics of concern or interest requested by councilmembers. 2. Council Presentations Philippine Center Councilmember Villavicencio attended Philippine Day of Minnesota and announced the Philippine Center in Maplewood will have an open house on September 14, from 12-4pm and invited residents to attend. Mayor Abrams added that ISD 622 will be bringing 10 Philippine teachers to teach in the district. National Night Out Councilmember Juenemann reminded residents that National Night Out is Tuesday, August 61" and encouraged residents to participate. Parks Tour Councilmember Juenemann gave a recap of the Parks Tour and commented on the use and importance of parks. 3. 2023 Annual Comprehensive Financial Report Finance Director Rueb introduced the item. Andrew Grice, Auditor with berganKDV gave the presentation. Councilmember Lee moved to accept the Maplewood 2023 Annual Comprehensive Financial Report. Seconded by Councilmember Juenemann Ayes — All The motion passed. July 22, 2024 City Council Meeting Minutes 2 G. CONSENT AGENDA — Items on the Consent Agenda are considered routine and non- controversial and are approved by one motion of the council. If a councilmember requests additional information or wants to make a comment regarding an item, the vote should be held until the questions or comments are made then the single vote should be taken. If a councilmember objects to an item it should be removed and acted upon as a separate item. Councilmember Juenemann moved to approve agenda items G1-G6. Seconded by Councilmember Cave Ayes — All The motion passed. 1. Approval of Claims Councilmember Juenemann moved to approve the approval of claims. ACCOUNTS PAYABLE: $ 109,289.23 $ 124,120.82 $ 463,249.05 Checks # 121341 thru # 121366 dated 07/09/24 Checks # 121367 thru # 121410 dated 07/16/24 Disbursements via debits to checking account dated 07/01/24 thru 07/14/24 $ 696,659.10 Total Accounts Payable PAYROLL $ 761,997.37 Payroll Checks and Direct Deposits dated 07/05/24 $ 761,997.37 Total Payroll $ 1,458,656.47 GRAND TOTAL Seconded by Councilmember Cave Ayes — All The motion passed. 2. Call for Special Meeting to Canvass 2024 Primary Election Results July 22, 2024 City Council Meeting Minutes 3 Councilmember Juenemann moved to call a special meeting of the city council for Friday, August 16, 2024 at 4:00 p.m. in the council chambers for the purpose of canvassina the Auaust 13. 2024 Primary Election results. Seconded by Councilmember Cave Ayes — All The motion passed. 3. Public Safety Aid Funds Transfer Councilmember Juenemann moved to approve a transfer of $72,317.67 of Public Safety Aid funds from the General Fund to the Public Safety CIP Fund (406) to cover the purchase of the Fotokite Camera. Seconded by Councilmember Cave Ayes — All The motion passed. 4. Resolution Supporting Application for a Minnesota Department of Employment and Economic Development (DEED) Contamination Cleanup Grant, 1375 Frost Avenue East Councilmember Juenemann moved to approve a resolution of support for a grant application to the Minnesota Department of Employment and Economic Development's Contamination Cleanup fund. Resolution 24-07-2332 RESOLUTION IDENTIFYING THE NEED FOR MINNESOTA'S DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT'S CONTAMINATION CLEANUP FUNDING AND AUTHORIZING APPLICATION FOR GRANT FUNDS FOR BEACON'S PROJECT AT 1375 FROST AVENUE EAST BE IT RESOLVED that the city of Maplewood has approved the Contamination Cleanup grant application submitted to the Department of Employment and Economic Development (DEED) no later than August 1, 2024, by the City of Maplewood for the 1375 Frost Avenue East site. BE IT FURTHER RESOLVED that the city of Maplewood is located within the seven -county metropolitan area defined in section 473.121, subdivision 2, and is participating in the local housing incentives program under section 473.254. BE IT FURTHER RESOLVED that the City of Maplewood act as the legal sponsor for the project contained in the Contamination Cleanup Grant Program to be submitted no later than August 1, 2024, and that the Assistant Community Development Director is hereby authorized to apply to the Department of Employment and Economic Development for funding of this project. July 22, 2024 City Council Meeting Minutes 4 BE IT FURTHER RESOLVED that the City of Maplewood has the legal authority to apply for financial assistance, and the institutional, managerial, and financial capability to ensure adequate project administration. BE IT FURTHER RESOLVED that the sources and amounts of the local match identified in the application are committed to the project identified. BE IT FURTHER RESOLVED that the City of Maplewood has not violated any Federal, State or local laws pertaining to fraud, bribery, graft, kickbacks, collusion, conflict of interest or other unlawful or corrupt practice. BE IT FURTHER RESOLVED that upon approval of its application by the state the City of Maplewood may enter into an agreement with the State of Minnesota for the above -referenced project, and that the City of Maplewood certifies that it will comply with all applicable laws and regulation as stated in all contract agreements. NOW, THEREFORE BE IT FINALLY RESOLVED that the Mayor and the Clerk are hereby authorized to execute such agreements as are necessary to implement the project on behalf of the applicant. Seconded by Councilmember Cave Ayes — All The motion passed. 5. Memorandum of Agreement with Minnesota North College for Clinical Internships with the City of Maplewood Councilmember Juenemann moved to approve the Memorandum of Agreement between Minnesota North College and the City of Maplewood. Seconded by Councilmember Cave Ayes — All The motion passed. 6. Contract Modification Number 01 with Leo A. Daly Architect for the East Metro Public Safety Training Facility Councilmember Juenemann moved to approve Contract Modification Number 01 with Leo A. Daly Architect for a Space Needs Assessment, Feasibility and Design for the East Metro Public Safety Training Facility. Seconded by Councilmember Cave Ayes — All The motion passed. H. PUBLIC HEARINGS — If you are here for a Public Hearing please familiarize yourself with the Rules of Civility printed on the back of the agenda. Sign in with the City Clerk before addressing the council. At the podium please state your name and address clearly for the record. All comments/questions shall be posed to the Mayor and Council. July 22, 2024 City Council Meeting Minutes 5 The Mayor will then direct staff, as appropriate, to answer questions or respond to comments. 1. Hill -Murray Project Public Hearing Finance Director Rueb gave the staff report. Sofie Lykke, with Kennedy & Graven, provided further information. Mayor Abrams opened public hearing. The following people spoke: None Mayor Abrams closed the public hearing. Councilmember Juenemann moved to approve the Resolution Authorizing the Issuance Sale, and Delivery of an Educational Facilities Revenue Note (Hill -Murray School Proiect) and ADDrovina the Forms of and Authorizina the Execution and Delivery of the Note and Related Documents. Resolution 24-07-2333 RESOLUTION AUTHORIZING THE ISSUANCE, SALE, AND DELIVERY OF AN EDUCATIONAL FACILITIES REVENUE NOTE (HILL-MURRAY SCHOOL PROJECT) AND APPROVING THE FORMS OF AND AUTHORIZING THE EXECUTION AND DELIVERY OF THE NOTE AND RELATED DOCUMENTS WHEREAS, the City of Maplewood, Minnesota (the "City") is a statutory city, municipal corporation, and political subdivision duly organized and existing under the Constitution and laws of the State of Minnesota. Pursuant to Minnesota Statutes, Sections 469.152 through 469.1655, as amended (the "Act"), the City is authorized to issue revenue obligations to finance, in whole or in part, the cost of the acquisition, construction, reconstruction, improvement, betterment, or extension of a "project," defined in the Act, in part, as any properties, real or personal, used or useful in connection with a revenue producing enterprise, or any combination of two or more such enterprises engaged in any business, which includes an educational facility and an expansion thereto; and WHEREAS, the City Council of the City has received a request from The Hill - Murray Foundation, a Minnesota nonprofit corporation (the "Borrower"), that the City issue its Educational Facilities Revenue Note (Hill -Murray School Project), Series 2024 (the "Note"), in an original principal amount not to exceed $4,000,000, and loan the proceeds derived from the sale of the Note to the Borrower (the "Loan") pursuant to a Loan Agreement, to be dated on or after August 1, 2024 (the "Loan Agreement"), between the City and the Borrower, to: (i) finance the renovation and construction of the nonsectarian portions of an educational facility located at 2625 Larpenteur Avenue East in the City, known as Hill -Murray School, including a new plaza entrance to the school's athletic field and running track and a new entrance to the student union (the "Capital Project"); (ii) fund a debt service reserve fund, if necessary; (iii) pay a portion of the interest on the Note, if necessary; and (iv) pay the costs of issuing the Note (collectively, the Capital Project and the other purposes to which proceeds of the Note are proposed to be applied are the "Project"); and July 22, 2024 City Council Meeting Minutes 6 WHEREAS, Premier Bank, a Minnesota corporation (the "Lender"), has agreed to purchase the Note in a manner consistent with the policies of the City relating to the issuance and sale of non -rated conduit revenue bonds; and WHEREAS, the loan repayments required to be made by the Borrower under the terms of the Loan Agreement will be assigned to the Lender under the terms of a Pledge Agreement, to be dated on or after August 1, 2024 (the "Pledge"), between the City, the Borrower, and the Lender; and WHEREAS, the obligations of the Borrower under the terms of the Loan Agreement and the Pledge will be secured by an Mortgage, Security Agreement, Assignment of Leases and Rents and Fixture Financing Statement, to be dated on or after August 1, 2024 (the "Mortgage"), from the Borrower in favor of the Lender; and WHEREAS, forms of the following documents have been submitted to the City and are now on file with the City: (i) a form of the Note; (ii) the Loan Agreement; (iii) the Pledge; and (iv) the Mortgage; and WHEREAS, pursuant to Section 147(f) of the Code and regulations promulgated thereunder, the Note may not be issued as a tax-exempt bond unless the City Council of the City approves the Note after conducting a public hearing thereon, and Section 469.154, subdivision 4 of the Act requires that prior to submitting an application to the Minnesota Department of Employment and Economic Development ("DEED") for approval of the Project, the City Council of the City must conduct a public hearing on the proposal to undertake a project authorized to be financed under the terms of the Act; and WHEREAS, a notice of public hearing (the "Public Notice") was published in the Pioneer Press, the official newspaper and a newspaper of general circulation in the City, with respect to (i) the required public hearing to be held by the City under Section 147(f) of the Code; (ii) the required public hearing under Section 469.154, subdivision 4 of the Act; and (iii) the approval of the issuance of the Note. The Public Notice was published at least 14 days prior to the date of the public hearing. On the date hereof, the City Council of the City conducted a public hearing at which a reasonable opportunity was provide for interested individuals to express their views, both orally and in writing, with respect to the proposed issuance of the Note and the location and nature of the Project. NOW THEREFORE BE IT RESOLVED by the City Council of the City of Maplewood, Minnesota as follows: Section 1. Issuance of the Note. 1.01 Findings. The City Council hereby finds, determines, and declares that: (a) The issuance and sale of the Note, the execution and delivery by the City of the Note, the Loan Agreement, and the Pledge, and the performance of all covenants and agreements of the City contained in the Loan Agreement and the Pledge are undertaken pursuant to the Act. July 22, 2024 City Council Meeting Minutes 7 1.02 (b) The renovation and construction of the Capital Project and the other costs of the Project to be financed by the Note furthers the economic development purposes stated in Section 469.152 of the Act and constitutes a revenue producing "project," as defined in Section 469.153, subdivision 2(b) of the Act. (c) In accordance with Section 469.154, subdivision 7, of the Act, the officers, employees, and agents of the City are hereby authorized and directed to encourage the Borrower to target employment opportunities to qualified individuals who are unemployed or economically disadvantaged. Such individuals may be identified by such mechanisms as are available to the Borrower, such as a first source agreement in which the Borrower agrees to use a designated state employment office as a first source for employment recruitment, referral, and placement. (d) The loan repayments to be made by the Borrower under the Loan Agreement are fixed to produce revenues sufficient to provide for the prompt payment of principal of, premium, if any, and interest on the Note issued under this resolution when due, and the Loan Agreement also provides that the Borrower is required to pay all expenses of the operation and maintenance of the school facility, including, but without limitation, adequate insurance thereon and insurance against all liability for injury to persons or property arising from the operation thereof, and all lawfully imposed taxes and special assessments levied upon or with respect to the school facility and payable during the term of the Loan Agreement. (e) As provided in the Loan Agreement, the Note shall not be payable from nor charged upon any funds other than the revenues pledged to its payment, nor shall the City be subject to any liability thereon, except as otherwise provided in this paragraph. No holder of the Note shall ever have the right to compel any exercise by the City of its taxing powers to pay the Note or the interest or premium thereon, or to enforce payment thereof against any property of the City except the interests of the City in the Loan Agreement and the revenues and assets thereunder (except for certain unassigned rights of the City, including those related to indemnification and reimbursement for certain costs and expenses), which will be assigned to the Lender under the Pledge. The Note shall not constitute a charge, lien, or encumbrance, legal or equitable, upon any property of the City, except the interests of the City in the Loan Agreement, and the revenues and assets thereunder (except for the unassigned rights of the City referenced above), which will be assigned to the Lender under the Pledge. The Note shall recite that the Note is issued pursuant to the Act, and that the Note, including interest and premium, if any, thereon, is payable solely from the revenues and assets pledged to the payment thereof, and the Note shall not constitute a debt of the City within the meaning of any constitutional or statutory limitations. Issuance and Sale of the Note. The City hereby authorizes the issuance of the Note in the principal amount not to exceed $4,000,000 to finance the Project. The July 22, 2024 City Council Meeting Minutes 8 City hereby further authorizes the issuance of the Note, in the form, and with the terms set forth in the form of the Note now on file with the City. The aggregate principal amount of the Note (subject to the limitations set forth in this Section 1.02), the interest rate of the Note, the terms for adjustment of the interest rate on the Note, the date of the documents referenced in this resolution and the Note, and the terms of redemption of the Note may be established or modified with the approval of the City. The execution and delivery of the Note shall be conclusive evidence that the City has approved such terms as subsequently established or modified. The offer of the Lender to purchase the Note at the price of par plus accrued interest, if any, to the date of delivery at the interest rate or rates specified in the Note is hereby accepted. Upon approval of the Project by DEED, the Mayor and the City Manager of the City (the "City Officials") are authorized and directed to prepare and execute the Note as prescribed in the Loan Agreement and the Note shall be delivered to the Lender. The City Officials are hereby authorized to execute and deliver any agreements with any depository institution, including any representation letter or amendment to any existing representation letter, in the event the City and the Lender elect to register the Note in book -entry form. 1.03. Special, Limited Obligations of City. The Note shall be a special, limited obligation of the City, and the principal of, premium, if any, and interest on the Note shall be payable solely from the proceeds of the Note, the revenues derived from the Borrower pursuant to the Loan Agreement, and the security provided by the Borrower in accordance with the terms of the Loan Agreement, the Mortgage, the Pledge, and any and all other security of any kind or nature provided by the Borrower to the Lender. The Note will be subject to the provisions of a tax certificate, to be dated the date of issuance of the Note (the "Tax Certificate"), by the Borrower, and endorsed by the City. 1.04. Approval of Documents. The City Officials are hereby authorized and directed to execute and deliver the Loan Agreement, the Note, the Pledge, and such other documents as bond counsel considers appropriate in connection with the issuance of the Note (collectively, the "City Documents"). The forms of the City Documents and all other documents listed in the recitals hereof and exhibits thereto, and any consents and such other documents as are necessary or appropriate in connection with the issuance, sale, and delivery of the Note, including without limitation various certificates of the City, a certificate as to arbitrage and rebate, and similar documents (collectively, the "Financing Documents") are approved substantially in the forms on file with the City Manager. The City Documents, in substantially the forms submitted, are directed to be executed in the name and on behalf of the City by the City Officials. The Note is to be executed in the name of and on behalf of the City by the City Officials and delivered to the Lender. Any other Financing Documents and certificates necessary to the transaction described above may be executed by one or more appropriate officers of the City. All of the provisions of the Financing Documents, when executed as authorized herein, shall be deemed to be a part of this resolution as fully and to the same extent as if incorporated verbatim herein and shall be in full force and effect from the date of execution and delivery thereof. The approval hereby given to the various Financing Documents referred to above July 22, 2024 City Council Meeting Minutes 9 includes approval of such additional details therein as may be necessary and appropriate and such modifications thereof, deletions therefrom and additions thereto as may be necessary and appropriate and approved by bond counsel to the City, the appropriate City staff person, or by the officers authorized herein to execute or accept, as the case may be, said documents prior to their execution; and said officers or staff members are hereby authorized to approve said changes on behalf of the City. The execution of any instrument by the appropriate officer or officers of the City herein authorized shall be conclusive evidence of the approval of such document in accordance with the terms hereof. 1.05. Certifications of the City. The Mayor, City Manager, and Finance Director of the City and other officers, employees, and agents of the City are hereby authorized and directed to prepare and furnish to bond counsel and the Lender certified copies of all proceedings and records of the City relating to the issuance of the Note, including a certification of this resolution. Such officers, employees, and agents are hereby authorized to execute and deliver, on behalf of the City, all other certificates, instruments, and other written documents that may be requested by bond counsel, the Lender, or other persons or entities in conjunction with the issuance of the Note. Without imposing any limitation on the scope of the preceding sentence, such officers, employees, and agents are specifically authorized to execute and deliver one or more certificates of the City, an endorsement of the City to the Tax Certificate, an Information Return for Tax - Exempt Private Activity Bond Issues, Form 8038, and all other documents and certificates as shall be necessary and appropriate in connection with the issuance, sale, and delivery of the Note. The City hereby authorizes Kennedy & Graven, Chartered, acting as bond counsel, to prepare, execute, and deliver its approving legal opinion with respect to the Note. 1.06. Security for the Note. The City hereby authorizes the Borrower to provide such security for payment of the Borrower's obligations under the Loan Agreement and for payment of the Note, including the Mortgage, as is agreed upon by the Borrower and the Lender, and the City hereby approves the execution and delivery of such security. 1.07. DEED Application. As required by the terms of Section 469.154 of the Act, the employees, officers, and agents of the City are hereby authorized and directed to submit an application to DEED for approval of the Project and the issuance of the Note. 1.08. Qualified Tax -Exempt Obligation. In order to qualify the Note as a "qualified tax- exempt obligation" within the meaning of Section 265(b)(3) of the Code, the City makes the following factual statements and representations: (a) the Note is a qualified 501(c)(3) bonds (as defined in Section 145 of the Code), and therefore is not treated as a "private activity bond" (as defined in Section 141 of the Code) for the purposes of Section 265(b)(3) of the Code; July 22, 2024 City Council Meeting Minutes 10 (b) the City hereby designates the Note as a "qualified tax-exempt obligation" for purposes of Section 265(b)(3) of the Code; (c) the reasonably anticipated amount of tax-exempt obligations (other than private activity bonds, that are not qualified 501(c)(3) bonds) which will be issued by the City (and all subordinate entities of the City) during calendar year 2024 will not exceed $10,000,000; (d) not more than $10,000,000 of obligations issued by the City during calendar year 2024 have been designated for purposes of Section 265(b)(3) of the Code; and (e) the aggregate face amount of the issue of the Note is not greater than $10,000,000. 1.09. Registration of Transfer. The City will cause to be kept at the office of the City Manager a Note Register for the Note in which, subject to such reasonable regulations as it may prescribe, the City shall provide for the registration of transfers of ownership of the Note. The Note shall be initially registered in the name of the Lender and, subject to Section 1.12, shall be transferable upon the Note Register for the Note by the Lender in person or by its agent duly authorized in writing, upon surrender of such Note together with a written instrument of transfer satisfactory to the City Manager, duly executed by the Lender or its duly authorized agent. The following form of assignment shall be sufficient for said purpose. For value received hereby sells, assigns and transfers unto the within Note of the City of Maplewood, Minnesota, and does hereby irrevocably constitute and appoint attorney to transfer said Note on the books of said City with full power of substitution in the premises. The undersigned certifies that the transfer is made in accordance with the provisions of Sections 1.09 through 1.12 of the Resolution authorizing the issuance of the Note. Dated: By: Registered Owner Upon such transfer the City Manager shall note the date of registration and the name and address of the new Lender in the applicable Note Register and in the registration blank appearing on such Note; subject to receipt of a purchaser letter or certification as required by Section 1.12 hereof. 1.10. Mutilated, Lost or Destroyed Note. In case the Note issued hereunder shall become mutilated or be destroyed or lost, the City shall, if not then prohibited by law, cause to be executed and delivered, a new Note of like outstanding principal amount, number, series and tenor in exchange and substitution for and upon cancellation of such mutilated Note, or in lieu of and in substitution for such Note destroyed or lost, upon the payment by the Lender of the reasonable expenses July 22, 2024 City Council Meeting Minutes 11 and charges of the City in connection therewith, and in the case of a Note destroyed or lost, the filing with the City of evidence satisfactory to the City with indemnity satisfactory to it. If the mutilated, destroyed or lost Note has already matured or been called for redemption in accordance with its terms it shall not be necessary to issue a new Note prior to payment. 1.11. Ownership of Note. The City may deem and treat the person in whose name the Note is last registered in the Note Register for the Note and by notation on the Note whether or not the Note shall be overdue, as the absolute owner of the Note for the purpose of receiving payment of or on account of the principal balance, redemption price or interest and for all other purposes whatsoever, and the City shall not be affected by any notice to the contrary. 1.12. Limitation on Note Transfers. The Note shall be issued to a "qualified institutional buyer" or an "accredited investor" (i.e., the Lender) and without registration under state or other securities laws, pursuant to an exemption for such issuance; and accordingly the Note may not be assigned or transferred in whole or part, nor may a participation interest in the Note be given pursuant to any participation agreement, except to another "qualified institutional buyer" or "accredited investor" in accordance with an applicable exemption from such registration requirements and with full and accurate disclosure of all material facts to the prospective purchaser(s) or transferee(s). The City will require, as a precondition to any transfer, that the transferee provide to the City a written letter or certificate in a form satisfactory to the City and other evidence satisfactory to the City that the transferee is a qualified institutional buyer or other accredited investor under the securities laws. 1.13. Issuance of New Note. Subject to the provisions of Section 1.12, the City shall, at the request and expense of the Lender, issue a new note, in aggregate outstanding principal amount equal to that of the Note surrendered, and of like tenor except as to number, principal amount, and the amount of the periodic installments payable thereunder, and registered in the name of the Lender or such transferee as may be designated by the Lender. Section 2. Miscellaneous. 2.01. Agreements Binding. All agreements, covenants, and obligations of the City contained in this resolution and in the above -referenced documents shall be deemed to be the agreements, covenants, and obligations of the City to the full extent authorized or permitted by law, and all such agreements, covenants, and obligations shall be binding on the City and enforceable in accordance with their terms. No agreement, covenant, or obligation contained in this resolution or in the above -referenced documents shall be deemed to be an agreement, covenant, or obligation of any member of the City Council, or of any officer, employee, or agent of the City in that person's individual capacity. Neither the members of the City Council nor any officer executing the Note shall be liable personally on the Note or be subject to any personal liability or accountability by reason of the issuance of the Note. July 22, 2024 City Council Meeting Minutes 12 2.02. Rights Conferred. Except as herein otherwise expressly provided, nothing in this resolution or in the Loan Agreement, expressed or implied, is intended or shall be construed to confer upon any person, firm, or corporation other than the City and the registered and beneficial owners of the Note, any right, remedy, or claim, legal or equitable, under and by reason of this resolution or any provision hereof or of the Loan Agreement or any provision thereof; this resolution, the Loan Agreement and all of their provisions being intended to be, and being for the sole and exclusive benefit of the City and the registered and beneficial owners of the Note issued under the provisions of this resolution and the Loan Agreement, and the Borrower to the extent expressly provided in the Loan Agreement. No provision, covenant, or agreement contained in the Financing Documents, the Note or in any other document relating to the Note, and no obligation therein or herein imposed upon the City or the breach thereof, shall constitute or give rise to any pecuniary liability of the City or any charge upon its general credit or taxing powers. In making the agreements, provisions, covenants, and representations set forth in such documents, the City has not obligated itself to pay or remit any funds or revenues, other than funds and revenues derived from the Loan Agreement which are to be applied to the payment of the Note, as provided therein and in the Financing Documents. 2.03. Validity. In case any one or more of the provisions of this resolution, or of the documents mentioned herein, or of the Note issued hereunder shall for any reason be held to be illegal or invalid, such illegality or invalidity shall not affect any other provision of this resolution, or of the aforementioned documents, or of the Note, but this resolution, the aforementioned documents, and the Note shall be construed and endorsed as if such illegal or invalid provisions had not been contained therein. If for any reason the Mayor or the City Manager, or any other officers, employees, or agents of the City authorized to execute certificates, instruments, or other written documents on behalf of the City, shall for any reason cease to be an officer, employee, or agent of the City after the execution by such person of any certificate, instrument, or other written document, such fact shall not affect the validity or enforceability of such certificate, instrument, or other written document. If for any reason the Mayor or the City Manager is unable to execute and deliver the documents referred to in this resolution, such documents may be executed by any member of the City Council or any officer of the City delegated the duties of the Mayor or the City Manager with the same force and effect as if such documents were executed and delivered by the Mayor or the City Manager. 2.04. Costs. The Borrower will pay the administrative fees of the City and pay, or, upon demand, reimburse the City for payment of, any and all costs incurred by the City in connection with financing the Project and issuing the Note, whether or not the Note are issued. The Borrower shall indemnify the City against all liabilities, losses, damages, costs, and expenses (including attorney's fees and expenses incurred by the City) arising with respect to the Project or the Note, as further provided for in the Loan Agreement. July 22, 2024 City Council Meeting Minutes 13 2.05. Governmental Program. The City has established a governmental program of acquiring purpose investments for qualified 501(c)(3) organizations' projects. The governmental program is one in which the following requirements of §1.148- 1(b) of the federal regulations relating to tax-exempt obligations shall be met: (a) the program involves the origination or acquisition of purpose investments; (b) at least 95% of the cost of the purpose investments acquired under the program represents one or more loans to a substantial number of persons representing the general public, states or political subdivisions, 501(c)(3) organizations, persons who provide housing and related facilities, or any combination of the foregoing; (c) at least 95% of the receipts from the purpose investments are used to pay principal, interest, or redemption prices on issues that financed the program, to pay or reimburse administrative costs of those issues or of the program, to pay or reimburse anticipated future losses directly related to the program, to finance additional purpose investments for the same general purposes of the program, or to redeem and retire governmental obligations at the next earliest possible date of redemption; and (d) the program documents prohibit any obligor on a purpose investment financed by the program or any related party to that obligor from purchasing bonds of an issue that finances the program in an amount related to the amount of the purpose investment acquired from that obligor; and (e) the City shall not waive the right to treat the investment as a program investment. 2.06. Declaration of Official Intent to Reimburse Expenditures. (a) The United States Department of the Treasury has promulgated final regulations governing the use of the proceeds of tax-exempt bonds, all or a portion of which are to be used to reimburse the City or a borrower from the City for project expenditures paid prior to the date of issuance of such bonds. Those regulations, Section 1.150-2 of the Regulations, require that the City adopt a statement of official intent to reimburse an original expenditure not later than sixty (60) days after payment of the original expenditure. The Regulations also generally require that the bonds be issued and the reimbursement allocation made from the proceeds of the bonds occur within eighteen (18) months after the later of: (i) the date the expenditure is paid; or (ii) the date the project is placed in service or abandoned, but in no event more than three (3) years after the date the expenditure is paid. The Regulations generally permit reimbursement of capital expenditures and costs of issuance of the bonds. (b) The City reasonably expects to reimburse the Borrower for the expenditures made for costs of the Project from the proceeds of the Note. July 22, 2024 City Council Meeting Minutes 14 All reimbursed expenditures shall be capital expenditures, a cost of issuance of the Note, or other expenditures eligible for reimbursement under Section 1.150-2(d)(3) of the Regulations and also qualifying expenditures under the Act. (c) Based on representations by the Borrower, no expenditures for the Project have been made by the Borrower more than sixty (60) days before the date of adoption of this resolution other than: (i) expenditures to be paid or reimbursed from sources other than the Note; (ii) expenditures permitted to be reimbursed under prior regulations pursuant to the transitional provision contained in Section 1.150-20)(2)(i)(B) of the Regulations; (iii) expenditures constituting preliminary expenditures within the meaning of Section 1.150-2(f)(2) of the Regulations; (iv) expenditures in a "de minimis" amount (as defined in Section 1.150-2(f)(1) of the Regulations); or (v) pursuant to a declaration of official intent by the Borrower in accordance with Section 1.150-2 of the Regulations. (d) Based on representations by the Borrower, as of the date hereof, there are no funds of the Borrower reserved, allocated on a long-term basis or otherwise set aside (or reasonably expected to be reserved, allocated on a long-term basis, or otherwise set aside) to provide permanent financing for the expenditures related to the Project to be financed from proceeds of the Note, other than pursuant to the issuance of the Note. This resolution, therefore, is determined to be consistent with the budgetary and financial circumstances of the Borrower as they exist or are reasonably foreseeable on the date hereof. 2.07. Effective Date. This resolution shall be in full force and effect from and after its approval. The approvals contained in the resolution are effective for one year after the date hereof. Seconded by Councilmember Villavicencio Ayes — All The motion passed. UNFINISHED BUSINESS None J. NEW BUSINESS 1. Resolution Ordering the Abatement of Hazardous Building and Public Nuisance Conditions at 1279 Ripley Avenue East Community Development Director Parr gave the staff report. Councilmember Cave moved to approve the Resolution Ordering the Abatement of Hazardous Building and Public Nuisance Conditions at 1279 Ripley Avenue East. Resolution 24-07-2334 RESOLUTION ORDERING THE ABATEMENT OF HAZARDOUS BUILDING July 22, 2024 City Council Meeting Minutes 15 AND PUBLIC NIDSANCE CONDITIONS AT 1279 RIPLEY AVENUE EAST RECITALS WHEREAS, the property located at 1279 Ripley Avenue E and legally described on Exhibit A attached hereto (the "Subject Property") contains a single-family dwelling (the "Dwelling") and is located in the city of Maplewood (the "City"); and WHEREAS, the Subject Property is owned by Michael P. Thompson and James F. Preissner (the "Owners") according to public records and, to the best of the City's knowledge, is presently unoccupied; and WHEREAS, on February 14, 2024, pursuant to a duly obtained administrative search warrant, a physical inspection of the Subject Property and the Dwelling was conducted by the city's building official, Randy Johnson (the "Building Official") and the city's building inspector, Dan Lentz, during which the following conditions were observed: (1) The Dwelling's roof system is seriously deteriorated and compromised with numerous large holes, leaving the interior exposed to the elements and allowing water to infiltrate the Dwelling. (2) The Dwelling's roof sheathing and supporting roof structure are significantly deteriorated and damaged. (3) Ceilings are collapsed and have fallen into numerous areas throughout the interior of the Dwelling. (4) Numerous walls, portions of floors, and other framing throughout the dwelling are deteriorated, rotted, and failing. (5) The Dwelling's interior is extensively filled with piled up rubbish and other debris, including throughout the occupiable spaces that were safely accessible. The Dwelling's interior smells strongly of mold or mildew. (6) The exterior portion of the Subject Property contains an accumulation of rubbish and debris, including scrap materials, a decaying mattress, discarded furniture, and large piles of brush and debris in the yard. WHEREAS, while inside the Dwelling, staff was unable to complete a full inspection of the Dwelling's second floor due to the rotted upper level floor joist and an inability to safely access that location; and WHEREAS, since the above -mentioned inspection, there have been no permits pulled for the Dwelling that would indicate any improvements to the conditions observed on February 14, 2024;and WHEREAS, Minnesota Statutes, section 463.15, subdivision 3 defines a "hazardous building" as "any building ... which because of inadequate maintenance, July 22, 2024 City Council Meeting Minutes 16 dilapidation, physical damage, unsanitary condition or abandonment, constitutes a fire hazard or a hazard to public safety or health"; and WHEREAS, section 18-31(5) of the Maplewood City Code (the "City Code") deems it a public nuisance to accumulate rubbish, debris, and other offensive materials on property; and WHEREAS, Minnesota Statutes, section 463.161 and section 18-37 of the City Code authorize the city council to order the owner of any hazardous building or nuisance property within the City to correct or remove said conditions; and WHEREAS, additionally, Minn. R. 1300.0180 expressly requires that unsafe structures "be abated [under] Minnesota Statutes, sections 463.15 to 463.26."; and WHEREAS, based on the information presented, the city council has determined that the condition of the Subject Property and the Dwelling constitutes a hazard and a public nuisance in violation of both state and local law and, therefore, should be abated. RESOLUTION NOW, THEREFORE, BE IT RESOLVED by the city council of the city of Maplewood as follows: The city council adopts, as factual findings, all of the recitals listed above. 2. The city council finds that the Dwelling is hazardous, as defined by Minnesota Statutes, section 463.15, and unsafe, as defined in Minnesota Rules, section 1300.0180. 3. The city council also finds that the condition of the Subject Property constitutes a public nuisance, as defined by both state and local law, and violates the aforementioned sections of the City Code, and is a menace to the health of the inhabitants of the city. 4. The city attorney shall finalize an abatement order substantially similar to that attached as Exhibit B attached hereto. 5. The city attorney is authorized to take all necessary legal steps to effectuate service of this resolution and the corresponding abatement order in the manner required by state and/or local law. 6. The city attorney and city staff are authorized to take all necessary legal steps to secure compliance with the abatement order and to obtain authority to remove and abate the hazardous and nuisance conditions on the Subject Property by court order and collect and/or assess the costs thereof against the Subject Property, as otherwise permitted by state and/or local law. EXHIBIT A July 22, 2024 City Council Meeting Minutes 17 Lots 25, 26 and 27, Block 1, W.M. Fisher's Addition to Gladstone, Minn., together with the South 1/2 of vacated alley adjoining that accrued thereto by reason of the vacation thereof, Ramsey County, Minnesota. Abstract Property (PID 162922410010) EXHIBIT B Abatement Order STATE OF MINNNESOTA COUNTY OF RAMSEY In the Matter of the Hazardous Building and Nuisance Property Located at 1279 Ripley Avenue E, Maplewood, Minnesota DISTRICT COURT SECOND JUDICIAL DISTRICT Case Type: Other Civil ORDER FOR ABATEMENT OF HAZARDOUS BUILDING AND PUBLICNUISANCE TO: All owners, occupants, and all lienholders of record. The city council of the city of Maplewood, Minnesota hereby orders that within 45 days of service of this order that you abate the hazardous and nuisance conditions which exist on the property located at 1279 Ripley Avenue E, Maplewood, Minnesota, which property is legally described as: Lots 25, 26 and 27, Block 1, WM Fisher's Addition to Gladstone, Minn., together with the South 1 /2 of vacated alley adjoining that accrued thereto by reason of the vacation thereof, Ramsey County, Minnesota (the "Subject Property"). Specifically, the city of Maplewood, pursuant to Minnesota Statutes, chapter 463 and the Minnesota State Building Code, has determined that the unoccupied single-family dwelling (the "Dwelling") located on the Subject Property is hazardous and unsafe due to the following observations: the Dwelling's roof system is seriously deteriorated and compromised with numerous large holes, leaving the interior exposed to the elements and allowing water to infiltrate the Dwelling; the Dwelling's roof sheathing and supporting roof structure are significantly deteriorated and damaged; ceilings are collapsed and have fallen into numerous areas throughout the interior of the Dwelling; numerous walls, portions of floors, and other framing throughout the dwelling are deteriorated, rotted, and failing; the Dwelling's interior is extensively filled with piled up rubbish and other debris, including throughout the occupiable spaces that were safely accessible; and the Dwelling's interior smells strongly of mold or mildew. Additionally, the exterior portion of the above -referenced property contains an July 22, 2024 City Council Meeting Minutes 18 accumulation of rubbish and debris, including scrap materials, a decaying mattress, discarded furniture, and large piles of brush and debris in the yard. For those reasons, the city of Maplewood, pursuant to chapter 18 of the Maplewood City Code and Minnesota Statutes, section 609.74, also has determined that the property constitutes a public nuisance. Pursuant to the above -referenced statutes and ordinances, it is hereby ORDERED that you abate the above -mentioned conditions within 45 days of the date of service of this order by either (i) razing (demolishing) the Dwelling and removing all debris and other materials from the property, or (ii) performing each and every one of the following items: 1. Repair or replace the Dwelling's deteriorated roof system in accordance with the Minnesota State Building Code; 2. Repair or replace all of the Dwelling's deteriorated walls, framing and other structural components in accordance with the Minnesota State Building Code, including a structural analysis of deteriorated components to ensure safety and habitability; 3. Repair or replace all of the Dwelling's deteriorated floors and ceilings in accordance with the Minnesota State Building Code; 4. Determine the existence of mold due to the significant water infiltration and mitigate said mold, as deemed necessary; 5. Remove all accumulations of garbage, rubbish, and other debris from the Dwelling's interior to ensure the health and safety of occupants and sufficient ingress and egress throughout the Dwelling; and 6. Remove the accumulation of rubbish and debris from the property's exterior, including scrap materials, the decaying mattress, discarded furniture, and large piles of brush and debris in the yard. All such work is subject to permitting and required inspections by staff members of the city to ensure compliance with applicable rules and law. This order is not a permit. You are further advised that unless such corrective action is taken or an answer is served on the city and filed within 21 days of the date of service of this order upon you, a motion for summary enforcement of this order may be made to the Ramsey County District Court. Finally, you are further advised that if you do not comply with this order and the city is compelled to take corrective action, it will pursue the Dwelling's demolition and other exterior nuisance abatement efforts, and all necessary costs incurred by the city in taking such corrective action will be collected and assessed against the property pursuant to Minnesota Statutes, section 463.21 and section 18-37 of the Maplewood City Code. In connection thereto, the city also intends to recover all of its expenses incurred in carrying out this order, including specifically but not exclusively, filing fees, service fees, publication fees, attorneys' fees, appraisers' fees, witness fees, including expert witness fees and traveling expenses incurred by the city from the time this order was originally made, also pursuant to state and local law. [ signature page to follow] July 22, 2024 City Council Meeting Minutes 19 Dated , 2024 ------ KENNEDY & GRAVEN, CHARTERED By: David T. Anderson (#0393517) 700 Fifth Street Towers 150 South Fifth Street Minneapolis, MN 55402 (612) 337-9300 Attorney for City of Maplewood ACKNOWLEDGMENT The undersigned acknowledges that costs, disbursements and reasonable attorney and witness fees may be awarded pursuant to Minn. Stat. § 549 .211, subd. 2, to the party against whom the allegations in this pleading are asserted. David T. Anderson Seconded by Councilmember Lee Ayes — All The motion passed. 2. Harvest Park Master Plan Public Works Director Love gave the presentation. Councilmember Juenemann moved to approve the Harvest Park Master Plan. Seconded by Councilmember Cave Ayes — All The motion passed. 3. EAB Private Ash Tree Relief Policy Public Works Director Love gave the presentation. Council discussed the agenda item and came to a consensus on the EAB relief amount and assessment payback period. Councilmember Juenemann moved to approve the EAB Private Ash Tree Relief Poli with a maximum amount of $3,000 per property to be assessed over 5 years. July 22, 2024 City Council Meeting Minutes 20 Seconded by Councilmember Villavicencio Ayes — All The motion passed. K. AWARD OF BIDS None L. ADJOURNMENT Mayor Abrams adjourned the meeting at 8:29 p.m. at,e( � 3��Z� Andrea Sindt, City Clerk July 22, 2024 City Council Meeting Minutes 21