Loading...
HomeMy WebLinkAbout2009-08-12 HRA Packet AGENDA MAPLEWOOD HOUSING AND REDEVELOPMENT AUTHORITY WEDNESDAY, AUGUST 12, 2009 7:00 P.M. CITY HALL, CITY COUNCIL CHAMBERS 1. Call to Order 2. Roll Call 3. Approval of Agenda 4. Approval of Minutes a. July 8, 2009 5. Unfinished Business a. Response to HRA Question: Contacting Owners of Foreclosed and Vacant Homes on Code Enforcement Matters (no report) b. Response to HRA Question about Quarterly Code Enforcement Report 6. New Business a. Vacant Building Registration Report b. Economic Development Authority Ordinance 7. Visitor Presentations 8. Commission Presentations 9. Staff Presentations 10. Adjournment DRAFT MINUTES OF THE MAPLEWOOD HOUSING AND REDEVELOPMENT AUTHORITY 1830 COUNTY ROAD BEAST, MAPLEWOOD, MINNESOTA WEDNESDAY, JULY 8,2009 CITY COUNCIL CHAMBERS I. CALL TO ORDER Chairperson Pearson called the meeting to order at 7:00 p.m. II. ROLL CALL Chairperson Gary Pearson Commissioner Josh Richter Commissioner Joy Tkachuck Vice-Chairperson Beth Ulrich P rese nt Present Absent Present Staff Present: Tom Ekstrand. City Planner III. APPROVAL OF AGENDA The agenda was approved as presented by consensus. IV. APPROVAL OF MINUTES a. June10, 2009 Commissioner Ulrich moved to approve the minutes of June 10, 2009 as presented. Commissioner Richter seconded The motion passed. Ayes - Pearson, Richter, Ulrich V. COMMUNICATIONS a. Request by Paul Ruby of Rolling Hills Manufactured Home Park-Lot Rate Increases Planner Tom Ekstrand explained that Paul Ruby and Justin Bell will give a presentation on lot rent increases for Rolling Hills Manufactured Home Park. Paul Ruby, of Rolling Hills Manufactured Home Park (RHMHP), gave a presentation to the commission to request the city's involvement/assistance in helping to control the lot rent increases at the Rolling Hills Manufactured Home Park. Justin Bell, of All Parks Alliance for Change (APAC), explained possible solutions to curtail the unreasonable rent increases at RHMHP. Mr. Bell said the Metropolitan Council's current report shows that Maplewood will need between 144 and 492 units of affordable housing from 2011 to 2020. Mr. Bell explained that Maplewood has a natural system of affordable housing in manufactured homes. Mr. Bell said that Rolling Hills Manufactured Home Park is at the top of the rent increase list compared with other mobile home parks in the area. Commissioner Ulrich explained that she contacted Ramsey County to check on the property taxes for these parcels and she found that RHMHP property taxes have increased more than 100 Housing and Redevelopment Authority -2- Minutes of 07-08-09 percent since 2005. Ms. Ulrich asked if the Attorney General has been contacted regarding the rent increase issue. Mr. Bell explained that they have contacted the Attorney General, who has a hands-off approach and referred them to other agencies, which ended up being a dead end. Mr. Bell said the next step is to talk with municipalities. Commissioner Pearson encouraged Mr. Bell to contact state representatives and the legislature, since the legislature developed Statute 327(c). Commissioner Pearson explained the history of the RHMHP development within the city. Commissioner Pearson suggested it would be a better proposition for APAC to organize and work to purchase RHMHP. Commissioner Pearson said he does not believe it is the city's position to develop ordinances to control or interpret what "reasonable" is. Mr. Pearson said that is a legislative decision. Commissioner Ulrich agreed saying she also believes it is a state law that governs this and a state law that needs to be better defined. Ms. Ulrich said she recommends that the city does not take action on defining "reasonableness" or setting up some kind of rent control board. Mr. Ulrich said this is not the city's role. Commissioner Ulrich said her mother is a resident of Rolling Hills. Commissioner Ulrich moved to recommend that the city council not take any additional action. Commissioner Richter seconded Ayes - all The motion passed. b. HRA Bylaws Revisions Planner Ekstrand reviewed the staff report concerning the revision of the by-laws to add "Visitor Presentations" to the HRA agenda. Mr. Ekstrand said he researched the HRA bylaws and gave the commission examples of several typical agendas. Planner Ekstrand said the position of "executive director" and the reference to holding an "annual meeting" are not used or needed. Commissioner Ulrich said she would like to leave the executive director position in the bylaws as a possibility in the future if funding would become available. Commissioner Richter moved to revise the HRA bylaws to reestablish the agenda format and to delete the reference to annual meetings. Commissioner Ulrich seconded The motion passed. Ayes - all c. Quarterly Code Enforcement Status Report Update Planner Ekstrand presented the staff report explaining the responses to commission questions on the code enforcement status report update at the last meeting. VI. UNFINISHED BUSINESS Commissioner Ulrich asked staff for a response to her question regarding whether the city has problems contacting the owners of foreclosed or vacant homes on code enforcement complaints. Planner Ekstrand said he will get this information from the code enforcement staff and bring it to the next meeting. Housing and Redevelopment Authority -3- Minutes of 07-08-09 VII. NEW BUSINESS None VIII. DATE OF NEXT MEETING August 12,2009 IX. ADJOURNMENT The meeting was adjourned at 8:03 p.m. MEMORANDUM TO: FROM: SUBJECT: DATE: James Antonen, City Manager Tom Ekstrand, Senior Planner Code Enforcement Status Report Update August 3, 2009 INTRODUCTION On July 8 the HRA asked for a clarification of the June 1, 2009 quarterly report which showed 114 code enforcement complaints pending when it was noted that there were 132 complaints inspected. Dave Fisher will attend the meeting and will discuss his report for clarification. p:HRA\8 09 Code Enforcement Report Follow~up te Attachment: 6/1/2009 Code Enforcement Report PROGRAM: CODE ENFORCEMENT DEPARTMENT: COMMUNITY & PARKS June 1,2009 DEVELOPMENT 2006 2007 2008 2009 Year to Actual Actual Actual 6 -1-2009 OUTPUTSlWoRKLOAD Total number of complaint cases 500 575 548 132 inspected Total number of complaint cases that were referred to the Admin/Judicial 5 3 41 7 process Total number of re-inspections 500 575 822 274 EFFECTIVENESS INDICATORS Total number of complaint cases resolved through the Admin/Judicial 5 5 37 7 process and/or abatements Total number of complaint cases 645 545 536 71 resolved Total number of complaint cases 5 5 12 114 pending COMMENTS The Building Official has been managing code enforcement activities since the resignation of the previous full time Code Enforcement Officer. 2008 ABATEMENTS = 38 2009 Y-T-D ABATEMENTS = 7 2008 CITATIONS = 30 2009 Y-T-D CITATIONS = 0 Estimated Breakdown for 2008: Estimated Breakdown for 2009: Debris & Trash = 115 Debris & Trash = 70 Grass over 8 inches = 126 Grass over 8 inches = 25 Junk vehicles and parking on the grass = 113 Junk vehicles and parking on the grass = 44 Zoning, Home Occupations & Misc. = 82 Zoning, Home Occupations & Misc. = 51 Note the above 2008 & 2009 estimated numbers came from the Edens System soft ware and other info from inspectors. NOTE: 95 PERCENT OF GRASS OVER 8 INCHES ARE VACANT OR FORECLOSED HOMES MEMORANDUM TO: FROM: SUBJECT: DATE: James Antonen, City Manager Tom Ekstrand, Senior Planner Vacant Building Registration August 4, 2009 INTRODUCTION Staff is proposing that the city council consider adopting a Vacant Building Registration ordinance. Refer to the attached memo. This item was on the council agenda for July 27, 2009 but was tabled for future discussion. RECOMMENDATION Please review this proposed ordinance and forward a recommendation to the city council. p:HRA\vacant building registration cover memo 8 09 te Attachment: Vacant Building Registration Memo MEMORANDUM TO: FROM: SUBJECT: DATE: James Antonen, City Manager DuWayne Konewko, Community & Parks Development Director David Fisher, Building Official Consider Amending Chapter 12 - Vacant Building Registration August 4, 2009 for the August 10, 2009 City Council Meeting INTRODUCTION Staff has received numerous complaints regarding vacant (foreclosed) properties throughout the city. In addition, residents have also approached the city council requesting that "something" be done to these vacant properties to bring them into compliance. In response to these complaints, council directed staff to develop strategies to address nuisance issues associated with vacant properties. Staff has been working on developing tools that can be utilized to address these vacant property concerns. To that end, staff is proposing to amend Chapter 12 Buildings and Building Regulations, of the City Code of Ordinances, by creating a vacant property registration ordinance. Attached is a copy of the proposed draft amendment language for your review and discussion. BACKGROUND In 2008, there were approximately 200 foreclosed homes and at least 3 vacant commercial buildings in Maplewood. Beginning January 1, 2009, staff has responded to 68 complaints involving vacant property. Approximately 70% or 48 of these properties were in violation of city code requirement(s). To date, staff has issued 24 abatement orders to vacant property owners for uncompleted correction requirements. In these cases, staff coordinates the completion of the work with Public Works and the costs associated with the clean-up are assessed back to the property. The remaining 24 vacant enforcement cases have been brought into compliance. However, most of these violations were for long grass and the city has to continue to monitor these properties to ensure future compliance. Staff also works very closely with the police department to monitor illegal activity and works collaboratively to resolve any issues. The following list represents a breakdown of the various code infractions at these vacant property locations: . Long grass, garbage and miscellaneous debris scattered on the property; . Broken windows, structure concerns and lack of any safeguards on entry points; . Vandalism, graffiti, and removal of appliances; . Outdoor pools not properly closed or shut down and existing fencing around the perimeter of the pool was severely compromised; . Removal of all copper tubing and other valuable commodities from the dwelling; . Other illegal activity. Staff has contacted other cities in the metro area and also received feedback from service provider companies, who help mortgage companies maintain properties, regarding logistics of vacant building registration and requirements. As a result, an ordinance to address vacant buildings is attached for your review and adoption. The purpose of the ordinance is to help track and manage the conditions of vacant properties, provide a method to improve communication and education for interim owners and potential buyers, provide a method in which to implement long-term foreclosure and revitalization strategies, and help recover some of the costs to the city to perform these functions focusing on those parties that use excessive city resources. The following are highlights of the proposed vacant building registration ordinance: . Require residential and commercial property vacant for more than 30 days to be registered with the city; . Properties vacant for more than 365 days, without an approved property plan, would be required to be demolished; . Provide routine maintenance requirements for the subject property; . Provide action plan to city for marketing / filling vacant property. BUDGET ISSUES A significant amount of city resources are being expended to address vacant property issues, often shifting resources from other program activities. Some budgetary items to consider include: . Staff resources for on-site evaluations, administrative functions, registration process, and similar operations would be required. If fees are recovered through the special assessment certification process, those fees may not be received until the following fiscal year. o Registration fees are as low as $300 a year to more than $3,000 a year for surrounding communities. Many tiered or sliding fee schedules exist, which are based on condition of the property/violations, residential/commercial or length of vacancy. Feedback from agencies and industry varied as well. RECOMMENDATION Staff recommends the council call for the first reading of the proposed vacant building registration for August 24, 2009. Staff will incorporate any comments or feedback the council may have concerning this proposed ordinance amendment. ATTACHMENT: 1. Proposed Amendment: Article XIII. Vacant Buildings - Chapter 12 ORDINANCE NO. AN ORDINANCE AMENDING CHAPTER 12 OF THE CITY CODE BUILDINGS AND BUILDING REGULATIONS ORDINANCES; ADDING NEW SECTIONS RELATING TO THE REGISTRATION AND REGULATION OF VACANT BUILDINGS THE CITY COUNCIL OF THE CITY OF MAPLEWOOD DOES ORDAIN AS FOLLOWS: Section 1. Chapter 12 is amended to add the following new Sections: Article XIII. Vacant BuildinQs Generallv 12-540 throuClh 12-550 Sec. 12-540. Policv Sec. 12-541. FindinCls Sec. 12-542. Definitions. Sec. 12-543. Vacant BuildinCl ReClistration Sec. 12-544. ChanCle of Ownership Sec. 12-545. Inspections Sec. 12-546. Maintenance of Vacant BuildinCls Sec. 12-547. No Occupancy or Trespass Sec. 12-548. Vandalism or Removal of items is Prohibited Sec. 12-549. Appeal Sec. 12-550. Penalties Section 12-540. POLICY. The purpose of sections 12-540 throuah 12-550 is to protect the public health. safety. and welfare bv establishina a proaram for the identification and reaulation of vacant buildinas within the Citv. Sections 12-540 throuah 12-550 also determine the responsibilities of owners of vacant buildinas and provides for administration. enforcement. and penalties associated with the same. Section 12-541. FINDINGS. Vacant buildinas are a maior cause and source of bliaht in residential and non-residential neiClhborhoods. especially when the owner or responsible party of the buildinCl fails to activelv maintain and manaCle the buildina to ensure it does not become a Iiabilitv to the neiahborhood. Vacant buildinas often attract transients. homeless people. trespassers. and criminals. includina drua abusers. Nealect of vacant buildinCls. as well as use of vacant buildinas bv transients and criminals. creates a risk of fire. explosion. or floodina for the vacant buildinCl and adiacent properties. Vacant properties are often used as dumpina arounds for iunk and debris and are often overClrown with weeds and arass. Vacant buildinqs that are boarded UP to prevent entry bv transients and other 10nCl-term vacancies discouraCle economic development and retard appreciation of property values. There is a substantial cost to the citv for monitorinCl vacant buildinqs whether or not those buildinas are boarded UP. This cost should not be borne bv the aeneral taxpavers of the community but rather these costs should be borne bv those who choose to leave their buildinqs vacant. Packet Page Number 159 of 285 Section 12-542. DEFINITIONS. The followina definitions shall applv in the interpretation and enforcement of sections 12-540 throuah 12-550. 1. Compliance Official - the Citv Manaaer and the Citv Manaaer's desianated aaents authorized to administer and enforce sections 12-540 throuah 12-550 of this Code. 2. Buildinq - a buildina or structure desianed for business use or human use or occupancv. 3. Owner - those shown to be the owner or owners on the records of the Ramsev Countv Department of Propertv Taxation: those identified as the owner or owners on a vacant buildina reaistration form. a holder of an unrecorded contract for deed, a mortaaaee or vendee in possession. a mortaaaor or vendor in possession. an assianee of rents. a receiver. an executor. a trustee. a lessee. other person. firm or corporation in control of the freehold of the premises or lesser estate therein. An owner also means anv person. partnership. association. corporation. or fiduciarv havina a leaal or eauitable title or anv interest in the propertv or buildina. This includes anv partner. officer. or director of any partnership. corporation. association or other leaallv-constituted business entity. All owners shall have ioint and several obliaations for compliance with the provisions of sections 12-540 throuah 12-550 of this Code. 4. Responsible party - means an owner. occupant. entitv or person actinq as an aqent for the owner who has direct or indirect control or authoritv over the buildina or real property upon which the buildina is located. Anv partv havina a leaal or eauitable interest in the propertv. Responsible partv mav include. but is not limited to. a realtor. service provider. mortaaaor. leasina aaent. manaaement companv or similar person or entity. 5. Vacant buildina - a buildina or structure is vacant if no person or persons actuallv and currentlv conducts a lawful business or lawfullv resides or lives in anv part of the buildina on a permanent. non-transient basis in accordance with the City's zonina reaulations. Section 12-543. VACANT BUILDING REGISTRATION. 1. Application. The owner or responsible partv must reqister a vacant buildina with the Citv no later than thirtv (30) days after the buildinq becomes vacant. The reaistration must be submitted on a form provided bv the Citv and shall include the followina information supplied bv the owner: a. The name, address. telephone number. and email address. if applicable. of each owner or the owner's representative: b. The names. addresses. telephone numbers. and email addresses. if applicable. of all known lien holders and all other parties with anv leaal interest in the buildina: c. The name. address. telephone number. and email address. if applicable. of a local aaent or person responsible for manaaina or maintainina the property: d. The leqal description. tax parcel identification number. and street address of the premises on which the buildina is situated: e. A description of the premises. includina the common address of the propertv: Packet Page Number 160 of285 f. The date the buildinq became vacant. the period of time the buildinq is expected to remain vacant. and a propertv plan and a proposed timetable for returninq the buildinq to appropriate occupancv or use and for correctinq code violations and nuisances. or for demolition of the buildinq; g. The status of water. sewer. natural qas and electric utilities. h. The owner must notify the compliance official of anv chanqes in information supplied as part of the vacant buildinq reqistration within thirty (30) days of the chanqe. 2. Propertv Plan. The propertv plan identified in section 12-543(1)(f) must meet the followinq requirements: a. General provisions. The plan must complv with all applicable requlations and meet the approval of the compliance official. It must contain a timetable reqardinq use or demolition of the propertv. The plan must be completed within 30 davs after the buildinq is reqistered. b. Maintenance of buildinq. The plan must identify the means and timetable for addressinq all maintenance and nuisance-related items identified in the application. Anv repairs. improvements or alterations to the propertv must complv with the applicable buildinq codes and citv requlations. c. Plan Chanqes. If the propertv plan or timetable for the vacant buildinq is revised in anv wav. the revisions must meet the approval of the compliance official. d. Demolition Required. If a buildinq has remained vacant for a period of three hundred and sixtv-five (365) consecutive davs. and the compliance official has not approved an alternative schedule in the propertv plan. the owner must demolish the buildinq and restore the qrounds. If the owner does not demolish the buildinq. the citv mav commence abatement and cost recovery proceedinqs for the abatement of the violation in accordance with city code sections 18-36. 37 & 38. 3. Non-compliance and Notification. If the owner does not comply with the propertv plan or maintain or correct nuisance items. the City may commence abatement and recover its costs for correction of those items in accordance with State law. In the case of an absent owner and onqoinq nuisance items. the city need not provide notice of each abatement act to the owner. A sinqle notice by the city to the owner that it intends to provide onqoinq abatement until the owner corrects the items will be sufficient notice. 4. Exemptions. a. Fire Damaqe- A buildinq that has suffered fire damaqe is exempt from the reqistration requirement for a period of ninetv (90) davs after the date of the fire if the owner submits a request for exemption in writinq to the compliance official. A request for exemption must be approved bv the code official and include the followinq information supplied bv the owner: i. A description of the premises: ii. The name and address of owner or owners: Packet Page Number 161 of285 Iii. A statement of intent to repair and reoccupv the buildinq in an expeditious manner and the time frame for completion: iv. Actions the owner will take to ensure the propertv does not become a nuisance for the neiqhborhood. b. "Snowbirds." Those persons who leave their residential buildinqs on a temporary basis for vacation purposes or to reside elsewhere durinq the winter season and have the intent to return are exempt from the reqistration requirement. Exemption as a "snowbird" will be qranted with proper verification. 5. Fees. The owner must pav a reqistration fee. The reqistration fee will be in an amount adopted bv resolution bv the Citv Council. The amount of the reqistration fee shall be reasonablv related to the administrative costs for reqisterinq and processinq the reqistration form and for the costs of the City in monitorinq the vacant buildinq site. The fee must be paid in full prior to the issuance of anv buildinq permits or licenses. with the exception of a demolition permit. 6. Waiver of Fee. The reqistration fee mav be waived if the owner or responsible partv has paid all past due reqistration fees and all other financial obliqations and debts owed to the City that are associated with the vacant property and demonstrates. to the satisfaction of the compliance official: a. that the property is re-occupied. with the exception of demolition. within a period of time deemed reasonable to the compliance official: and either b. that he or she is in the process of demolition. rehabilitation. or other substantial repair of the vacant buildinq; or c. that he or she has a plan for the demolition. rehabilitation, or other substantial repair of the vacant buildinq in a period of time that is deemed reasonable to the compliance official; 7. Assessment. If the reqistration fee or anv portion is not paid within 60 days after billinq. or within 60 davs after anv appeal becomes final. the Citv Council mav certify the unpaid cost aqainst the propertv in accordance with the process set forth in section 18-37 of citv code. 8. Issuance of Permit. Upon completion of the reqistration process and pavment of the fee. the City will issue a Vacant Buildinq Permit to the owner. The owner must securelv post the permit on the vacant buildinq. if possible. on a side entrance door that is not qenerally visible from the public street. If no side entrance door is available. the permit must be securelv posted on another available entrance door. If the propertv is abandoned or the owner or responsible partv fails to complete the reqistration process. the propertv will be administrativelv reqistered as a vacant propertv. Section 12-544. CHANGE OF OWNERSHIP. A new owner(s) must reqister or re-reqister a vacant buildinq under section 12-544 within fifteen (15) days of anv transfer of an ownership interest in a vacant buildinq. The new owner(s) must complv with the approved propertv plan and timetable submitted bv the previous owner. Any proposed chanqes in the propertv plan must be submitted and approved bv the compliance official. Packet Page Number 162 of 285 Section 12-545. INSPECTIONS. The compliance official may inspect any vacant buildinq in the City for the purpose of enforcinq and assurinq compliance with sections 12-540 throuqh 12-550 and other applicable requlations. Upon the request of the compliance official. an owner or responsible party must provide access to all interior portions of the buildinq and the exterior of the property in order to complete an inspection. If the owner or responsible party is not available to provide access to the interior of the buildinq. the Citv mav use anv leqal means to qain entrance to the buildinq for inspection purposes. Prior to anv re-occupancv. a vacant buildinq must be inspected bv the Citv and found to be in compliance with Chapter 12 of the Citv Code and all other applicable requlations. All application and re-inspection fees must also be paid prior to anv re-occupancv of the buildinq. All such fees are set bv Resolution of the City Council. Section 12-546. MAINTENANCE OF VACANT BUILDINGS. The owner must complv with and address the followinq items in the propertv plan. as described in section 12-546(2): 1. Appearance. All vacant buildinqs must be so maintained and kept that they appear to be occu pied. 2. Securinq. All vacant buildinqs must be secured from outside entry bv unauthorized persons or pests. Securitv must be bv the normal buildinq amenities such as windows and doors havinq adequate strenqth to resist intrusion. All doors and windows must remain locked. There shall be at least one operable door into everv buildinq and into each housinq unit. Exterior walls and roofs must remain intact without holes. a. Architectural (Cosmetic) Structural Panels. Architectural structural panels mav be used to secure windows. doors and other openinqs provided they are cut to fit the openinq and match the characteristics of the buildinq. Architectural panels mav be of exterior qrade-finished plvwood or Medium Densitv Overlaid plvwood (MDO) that is painted to match the buildinq exterior or covered with a reflective material such as plexi-qlass to simulate windows. b. Temporarv Securinq. Untreated plvwood or similar structural panels or temporary construction fencinq mav be used to secure windows. doors and other openinqs for a maximum period of 14 davs. c. "Artistic" board-up. With prior approval of the compliance official. artistic options mav be utilized to secure a vacant buildinq. d. Emerqency securinq. The compliance official mav take steps to immediately secure a vacant buildinq at his or her discretion in emerqencv circumstances. 3. Fire Safety. a. Fire protection systems. Owners of non-residential vacant buildinqs must maintain all fire protection svstems. appliances and assemblies in operatinq condition and maintain underwriter laboratories (ULl listed monitorinq of all svstems or approved bv the Fire Marshal. b. Removal of hazardous and combustible materials. The owner of any vacant buildinq. or vacant portion thereof. must remove all hazardous material and hazardous refuse that could constitute a fire hazard or contribute to the spread of fire. Packet Page Number 163 of 285 4. Plumbinq fixtures. Plumbinq fixtures connected to an approved water svstem. an approved sewaqe svstem. or an approved natural qas utilitv svstem must be installed in accordance with applicable codes and be maintained in sound condition and aood repair or removed and the service terminated in the manner prescribed bv applicable codes. The buildina's water svstems must be protected from freezina. 5. Electrical. Electrical service lines. wirina. outlets or fixtures not installed or maintained in accordance with applicable codes must be repaired. removed or the electrical services terminated to the buildina in accordance with applicable codes. 6. Liqhtinq. All exterior Iiahtina fixtures must be maintained in aood repair. and illumination must be provided to the buildina and all walkwavs in the same manner as provided at the time the buildina was last occupied or as otherwise provided in the approved vacant buildina plan. 7. Heatinq. Heatina facilities or heatina eauipment in vacant buildinas must be removed, rendered inoperable. or maintained in accordance with applicable codes. 8. Termination of utilities. The compliance official mav reauire that water. sewer. electricitv. or aas service to the vacant buildina be terminated or disconnected. Prior to the termination of anv utility service. written notice must be aiven to the owner. No utility mav be restored until consent is qiven bv the compliance official. Utilities mav be discontinued at the reauest of the owner or responsible partv as part of the approved vacant buildina propertv plan. The compliance official mav authorize immediate termination of utilities at his or her discretion in emeraencv circumstances. 9. Sianaqe. Obsolete or unused exterior sians and installation hardware must be removed. Holes and penetrations must be properlv patched and painted to match the buildina. Surfaces beneath the sians that do not match the buildina must be repaired. resurfaced. painted or otherwise altered to be compatible with the buildina surfaces. All sians must be maintained in aood condition and in compliance with Chapter 44 of citv code. Auction sians or attention-aettina devices mav be placed on a propertv for no more than fourteen (14) consecutive davs prior to the auction date and must be removed within three (3) days followina the auction. 10. Exterior maintenance. The owner must complv with all applicable propertv maintenance reaulations and citv codes includina. but not limited to. the followina: a. Public nuisances. The owner must eliminate anv activitv on the propertv that constitutes a public nuisance as defined bv Section 18-31 of the citv code. b. Grass and weeds. Anv weeds or arass must be no areater than six (8) inches in heiaht. c. Rain Gardens. The owner must maintain existina rain aarden to communitv standards. d. Exterior structure maintenance. The owner must maintain the vacant buildina in compliance with Sections 12-147 & 12-148 as determined to be necessarv bv the code official. e. Abandoned or iunk vehicles. The owner must remove abandoned and iunk vehicles from the property. The Citv mav impound such vehicles consistent with the reauirements in Chapter 18 of the city code. f. Storaqe and disposal of refuse. The storaae and disposal of refuse must comply with the reauirements of Chapter 12 of the city code. a. Animals. The owner must ensure that all animals are removed from the property and handled in a humane manner. Packet Page Number 164 of285 h. Diseased. dead or hazardous trees. The owner must remove diseased. dead or hazardous trees or branches from the propertv in accordance with Chapter 12 & 38 of the citv code. i. Graffiti. The owner must remove all araffiti from the propertv in accordance with citv ordinance. i. Abandoned pools. Swimmina pools must be maintained in aood operatina condition: treated to prevent pest harboraae: or properlv drained and emptied. Swimmina pools must be secured in accordance with citv code section 12-502. 11. Removal of QarbaQe and refuse. The owner of anv vacant buildina. or vacant portion thereof. must remove all aarbaae. refuse. rubbish. swill. filth. or other materials from the vacant buildina and the property upon which the buildinQ is located. 12. Police protections systems. The owner must properlv maintain all alarm svstems in any vacant buildina or portion thereof in operatina condition. 13. LoiterinQ, criminal activities. LoiterinQ or enaaaina in criminal activities is not allowed in the vacant buildina or on the real property upon which the vacant buildinQ is located. The owner or responsible partv must not allow these activities and take immediate actions to eliminate these conditions once notified bv the city. 14. Emerqencv Abatement. The compliance official mav authorize immediate abatement of anv public nuisance or maintenance item if. in the discretion of the compliance official. emeraencv circumstances exist that present an imminent threat to the public health and safety. 15. Other Codes. All other citv codes and applicable reaulations must be complied with. Section 12-547. NO OCCUPANCY OR TRESPASS. No person mav trespass. occupv or reside in. on a temporarv or permanent basis. anv vacant buildina without the owner's consent. Section 12-548. VANDALISM OR REMOVAL OF ITEMS PROHIBITED. No person may vandalize or remove items from a vacant buildina or the propertv upon which it is located. includinQ. but not limited to. appliances. fixtures. electrical wirina. copper. or other similar items without the owner's consent. Section 12-549. APPEAL. Anv person or responsible partv aaarieved bv a decision under sections 12-540 throuah 12-550 may appeal to the Citv Council. The appeal must be in writinQ. must specify the mounds for the appeal. and must be submitted to the Citv Manaaer within ten business davs of the decision that is basis of the appeal. Section 12-550. PENALTIES. Anv person or responsible partv who violates sections 12-540 throuah 12-548 is subiect to the penaltv as provided under section 12-539 of the city code. Nothina in sections 12-540 throuah 12-550. however. is deemed to impair other remedies or civil penalties available to the Citv under this code or state law. includina. but not limited to. Minnesota Statutes Sections 463.15 throuah 463.261. Packet Page Number 165 of285 MEMORANDUM TO: FROM: SUBJECT: DATE: James Antonen, City Manager Tom Ekstrand, Senior Planner Economic Development Authority August 4, 2009 INTRODUCTION On July 27, 2009, the city council approved an ordinance establishing an economic development authority. I have attached Alan Kantrud's memo for the HRA's information. p:HRA\EDA Cover Memo 8 09 te Attachment: EDA ordinance memorandum from Alan Kantrud DATE: TO: FROM: July 22, 2009 City Council H. Alan Kantrud, City Attorney SUBJECT: Maplewood EDA Ordinance Second Reading INTRODUCTION On July 13, 2009 a public hearing was held on the creation of a Maplewood EDA and subsequently a first reading ofthe Ordinance was approved. Although Council passed first reading of the Ordinance, several questions related to operation ofthe Authority were posed. The questions presented were: 1: What are the tax levy consequences of an EDA; how much "taxing authority" does the body have and is it above and beyond the regular authority. 2: What is the status of the funds ($50,000.00) provided to the "Twin Cities Community Capital Fund" and can the funds be withdrawn? This matter is now before Council second reading and further information from staff. DISCUSSION Attached is the Ordinance for the proposed Economic Development Authority approved by first reading. No changes were recommended. Influence of EDA activity on the Tax Levy The Maplewood EDA will have available to it several mechanisms of funding, including directing general funds directly to it. In terms of it own authority to tax however, the most basic approach is the power to request that the governing body levy up to .01813% of the City's TMV (Minn. Stat. S 469.107) to fund its operations and further its goals. That levy amount would be included for purposes oflevy limits and the City could not levy beyond its limit for such operations. The process for this is called out by statute (s 469.107 subd. 2) and essentially gives the taxpayers the ability to request to not be taxed for EDA funds though a "reverse referendum" process. Another mechanism available to raise funds is bonding (Minn. Stat. S 469.102). Council must approve such bonding by superrnajority vote and also must levy the against City's taxable property to pay the principle and interest plus 5% on such bonds (debt service). An EDA may also create special "taxing districts" to address specific concerns such as affordable housing, and may "tax" in that district to further those goals; those districts would also require council action/approval. Mr. Bob Mittet has prepared a short piece for your review on this subject as well, which is included with this report. His report includes the excerpted statutory references as well as communications from other knowledgeable sources such as the Minnesota Department of Revenue. Packet Page Number 22 of 285 Twin Cities Commnnity Capital Fund (TCCCF) participation At Council request, Staff also looked into the City's participation in the TCCCF. As a point of interest, the City is actually specifically authorized to participate in this program by Minn. Stat. S 469.191, the same chapter that essentially authorizes local economic development and specifically authorizes our own EDA. That program calls out membership by eligible City (eligibility is based on geography) and offers "tiers" of membership based on the amount contributed to the Fund. Maplewood has contributed $50,000.00 to the Fund and is considered a "Class C" participant, having contributed the minimum amount to participate. The program is intended to provide loans to businesses that seek to develop in the member-City. To qualify for the loan, a business needs to be sponsored by the member-city, have a financial partner/lending institution that it is working with, and meet other criteria regarding net worth and collateralization. The program is arguably more useful for the expansion of an existing entity than for start-ups due to its requirements (for example, the Fund recently highlighted the expansion of the Cloquet Community Hospital as a successful project), but it is advantageous because it allows members to loan up to ten times the amount that the member has contributed to the fund-in the case of Maple wood up to $500,000.00 is available. While membership is voluntary and the funds can be called back at any time, staff recommends that the EDA consider this first and perhaps consider having the City transferring "member" authority from the City to the EDA and use that generous lending authority itself as many EDA's do now. In the alternative, the City has met its participation obligations and could have the funds returned following council action within 30 days. RECOMMENDATION Staff is recommending that the Council approve second/final reading of the Ordinance forming the Maplewood EDA and direct staff to make the appropriate publication of the action. Packet Page Number 23 of 285 ORDINANCE NO: AN ORDINANCE ESTABLISHING THE MAPLEWOOD AREA ECONOMIC DEVELOPMENT AUTHORITY THE CITY COUNCIL OF THE CITY OF MAPLEWOOD, MINNESOTA ORDAINS: SECTION 1. Definitions. Subdivision 1. Common terms. As used in this Ordinance, the terms defined have the meanings given them. Subd 2. "Authority" - an Economic Development Authority as defined by Minnesota Statutes 469.090 through 469.1081. Subd.3. "City" - the City of Maplewood, Minnesota. Subd.4. "Council" - the duly elected governing body ofthe City of Maple wood, Minnesota. Subd.5. "The Act" - Minnesota Statues 469.090 through 469.1081. Subd. 6. "Enabling Resolution" - this Ordinance. SECTION 2. Establishment. An Economic Development Authority is established which shall have all of the powers, duties and responsibilities of an Economic Development Authority pursuant to Minnesota Statues 469.090 through 469.1081. It shall be the role and responsibility of the Authority to carry out economic and industrial development and redevelopment within the Maplewood area pursuant to Bylaws as may be adopted by the Authority. It shall confer with other City departments, and other public and private groups on matters relating to business and industrial development and periodically survey the area's industrial and commercial climate and report regularly to the Council. SECTION 3. Name. The Economic Development Authority created by the Enabling Resolution shall be known as the Map1ewood Area Economic Development Authority. SECTION 4. Members. The Authority shall consist ofthe Mayor and members of the City Council. The City Manager shall act as Director and ex officio member. Members may be reimbursed for expenses pursuant to City reimbursement policies. SECTION 5. Administration. Subdivision 1. Bvlaws. The Authority shall adopt Bylaws and rules of procedure for administration of its affairs. Subd.2. Officers. The Authority shall elect a chair and a vice-chair on an annual basis. The City Manager or designee shall serve as the Treasurer. Subd. 3. Professional service contracts. The Authority may employ technical experts and Packet Page Number 24 of 285 professionals as deemed necessary. Their salaries and duties shall conform to City policy. Subd.4. Duties and powers. The Officers shall have the duties and powers of their offices and other powers and duties as may be delegated by the Authority, the Bylaws, and the Act. No Act of the Authority may be in conflict with the City's current Comprehensive Plan or controls instituted to effectuate the Plan. No action ofthe Authority is authorized that is in conflict with any official action previously taken by the City Council Subd. 5. Meetings. The Authority shall meet quarterly and at such other times as necessary. SECTION 6. Modification. All modifications to the Enabling Resolution must be by Ordinance and must be adopted after notice and Public Hearing conducted as required for the original adoption of the Enabling Resolution. SECTION 7. Report to Council. The Authority shall submit a written report of its activities and recommendations for modification of the Enabling Resolution to the Council at least annually. SECTION 8. Director. The City's Manager or designee shall attend all meetings of the Authority, shall serve as a consultant and advisor to the Authority and shall make quarterly reports to the Council. SECTION 9. Conflicts of Interest. Except as authorized by Minnesota Statute 471.88, a Member, Officer or employee of the Authority may not have a substantial conflict of interest, in projects undertaken by the Authority. SECTION 10. Budget. Subdivision 1. Fiscal budget. The Authority shall prepare and submit to the Council a detailed budget. A special fund shall be established and designated as the "Development Authority Fund." The Council shall appropriate to the fund money it deems necessary for Authority purposes. This shall constitute the budget of the Authority. All payments drawn on the account of the Authority shall be by written statement signed by two officers of the Authority, directing the City Manager to prepare and deliver payment. All expenditures shall be consistent with the operation of the Authority pursuant to this Ordinance and Minnesota Statutes. Subd. 2. Audit. All financial records of the Authority shall be prepared, audited, and filed with the City, said records being coordinated by the City Finance Department at the direction of the City Manager. SECTION 11. Schedule of powers. Subdivision. 1. Development districts. The Authority may create and define the boundaries of economic development districts and use the powers granted to carry out economic development in these districts. Subd.2. Acquire property. The Authority may acquire, by lease, purchase, devise or through condemnation proceedings, title in property to create economic development in these districts. Property acquired, leased, owned, controlled, used or occupied by the Authority for any of the purposes of Section 469.101, Subd. 2 of Minnesota Statutes is for public governmental and municipal purposes and is exempt from taxation by the state or its political subdivisions. The Packet Page Number 25 of 285 exemption from property taxes only applies while the Authority holds the property for its own purpose(s). Subd. 3. Options. The Authority may negotiate and acquire options to purchase, sell or lease property for the purpose of economic development. Subd. 4. Contracts. The Authority may make contracts for the purpose of economic development. Subd. 5. Limited partnerships. The Authority may become a limited partner in a partnership. Subd.6. Rights and easements. The Authority may acquire rights or easements for a term of years or perpetually. Subd. 7. Receive public propertv. The Authority may accept land, money or other assistance, whether by gift, grant, loan or otherwise in any form from federal, state, local government, any agency of either or a local division of state government. Subd. 8. Public facilities. The Authority may operate, maintain a public parking facility, housing facility or other public facilities to promote economic development in the area. Subd. 9. Other powers. The Authority shall have such other powers as authorized as described in the Act. SECTION 12. General obligation and revenue bonds. The Authority may issue general obligation bonds or revenue bonds after receiving the approval and authorization by four-fifths vote of the Council and in accordance with the provisions of the Act. SECTION 13. This Ordinance shall take effect and be in force upon passage and publication. Adopted by the Maplewood City Council this Packet Page Number 26 of 285 IIiB\IffiAI\Olv To: Jim Antonen, City Manager From: Bob Mittet, Finance Director Date: July 20, 2009 Re: Economic Development Authorities - Levy Considerations BACKGROUND A question arose at the last City Council meeting regarding the ability of an Economic Development Authority (EDA) to levy property taxes. I have consulted with Terri Heaton of Springsted and Shawn Wink of the Minnesota Department of Revenue and have looked through the applicable statutes. FINDINGS 1. Under Section 469.107 subd.1 of Minnesota Statutes, the EDA levy is done as part of the City's levy so is part of the levy limit consideration. It has a maximum rate of .01813% of Taxable Market Value (TMV). Based on a TMV of $3,921 ,346,000, the maximum levy would be $710,940.03. 2. Under Section 469.107 subd.2 of Minnesota Statutes, a reverse referendum will allow the maximum levy to be exceeded provided: a. City Council approves the proposed levy increase. b. City publishes the resolution for two successive weeks and call public hearing. c. After the hearing, the city council may decide to take no action or may adopt a resolution authorizing the proposed increase or a lesser increase. A resolution authorizing an increase must be published in the city's official d. newspaper. The resolution is not effective if a petition requesting a referendum on the resolution is filed with the city clerk within 30 days of publication of the resolution. The petition must be signed by voters equaling five percent of the votes cast in the city in the last general election. 3. Section 469.033 subd.6 provides that EOA's are considered special taxing districts when they are given the authority to levy on their own. Packet Page Number 27 of 285 4. Section 469.102 subd.1 states that EDA's have the authority to issue general obligation bonds when authorized by two-thirds of the council. Subd.5 provides that the EDA may levy for debt service on bonds issued under subd.1. 5. Incidentally, an HRA may levy independently of the City's levy. Item 3 above on special taxing districts will require some more research. I had earlier indicated that an additional amount equal to 10% of the levy amount could be additionally levied. That provision applies only to port authorities so I was mistaken in that statement. Packet Page Number 28 of 285 From: Shawn Wink (MDOR) [mailto:Shawn.wink@state.mn.us] Sent: Monday, Juiy 20, 2009 12:19 PM To: Robert Mlttet Subject: RE: Levy Limits with an Economic Development Authority EDAs are a bit complicated when talking about levy authority. EDAs are consider special taxing districts when they are give the authority to ievy on their own. 469.033, subdivision 6 and 469.102, subdivision 5 provide them with this authority. However, 469.107 requires the city or county to levy on behalf of the EDA so in this case they are not consider a special taxing district but are part of the county or city levy. So if the EDA is levying under 469.107 then the levy would fall under the levy limit of the city. it the EDA was ievying under 469.033, subdivision 6 or 469.102, subdivision 5 then the levy would stand on its own and would not impact the city levy limit. Hope this helpsi From: Robert Mittet [mailto:robert.mlttet@ci.maplewood.mn.us] Sent: Monday, Juiy 20, 2009 9:47 AM To: Shawn Wink (MOOR) Subject: Levy Limits with an Economic Deveiopment Authority Shawn, Maplewood is in the process of setting up an EDA and I am wondering if you can let me know the options we have for funding. Do the levies available to an EDA for funding it's activities and funding operations become a reduction of the city's levy? Does the EDA levy stand on it's own? Is the EDA levy a speciai levy? Robert Mittet Finance Director City of Mapiewood 1830 E. County Road B Maplewood, MN 55109 651-249-2902 Direct 651-249-2909 Fax Packet Page Number 29 of 285 1 MINNESOTA STATUTES 2008 469.033 469.033 PUBLIC REDEVELOPMENT COST; PROCEEDS; FINANCING. Subdivision 1. Financing plans authorized. The entire cost of a project as defined in section 469.002, subdivision 12, including administrative expense of the authority allocable to the project and debt charges and all other costs authorized to be incurred by the authority in sections 469.001 to 469.047, shall be known as the public redevelopment cost. The proceeds from the sale or lease of property in a project shall be known as the capital proceeds. The capital proceeds from land sold may pay back only a portion of the public redevelopment cost. An authority may finance the projects in anyone or by any combination of the following methods. Subd. 2. Federal grants. The authority may accept grants or other financial assistance from the federal government as provided in sections 469.001 to 469.047. Before it uses other financial methods authorized by this section, the authority shall use all federal funds for which the project qualifies. Subd. 3. Bond issue. An authority may issue its bonds or other obligations as provided in sections 469.001 to 469.047. Subd. 4. Revenue pool; use. The authority may provide that all revenues received from its redevelopment areas be placed in a pool for the payment of interest and principal on all bonds issued for any redevelopment project, and the revenue from all such areas shall be paid into the pool until all outstanding bonds have been fully paid. Subd. 5. Special benefit tax fund. If the authority issues bonds to finance a redevelopment project, it may, with the consent of the governing body obtained at the time of the approval of the redevelopment plan as required in section 469.028, notifY the county treasurer to set aside in a special fund, for the retirement of the bonds and interest on them, all or part of the real estate tax revenues derived from the real property in the redevelopment area which is in excess of the tax revenue derived therefrom in the tax year immediately preceding the acquisition of the property by the authority. The county treasurer shall do so. This setting aside offunds shall continue until the bonds have been retired. This subdivision applies only to property that the governing body has by resolution designated for inclusion in a project prior to August 1,1979. Subd. 6. Operation area as taxing district, special tax. All of the territory included within the area of operation of any authority shall constitute a taxing district for the purpose of levying and collecting special benefit taxes as provided in this subdivision. All ofthe taxable property, both real and personal, within that taxing district shall be deemed to be benefited by projects to the extent of the special taxes levied under this subdivision. Subject to the consent by resolution of the governing body of the city in and for which it was created, an authority may levy a tax upon all taxable property within that taxing district. The tax shall be extended, spread, and included Copyright@ 2008 by the Revisor of Statutes, State of Minnesota. All Rights Ra.ltlk8tdaage Number 30 of 285 2 MINNESOTA STATUTES 2008 469.033 with and as a part of the general taxes for state, county, and municipal purposes by the county auditor, to be collected and enforced therewith, together with the penalty, interest, and costs. As the tax, including any penalties, interest, and costs, is collected by the county treasurer it shall be accumulated and kept in a separate fund to be known as the "housing and redevelopment project fund." The money in the fund shall be turned over to the authority at the same time and in the same manner that the tax collections for the city are turned over to the city, and shall be expended only for the purposes of sections 469.001 to 469.047. It shall be paid out upon vouchers signed by the chair of the authority or an authorized representative. The amount of the levy shall be an amount approved by the governing body of the city, but shall not exceed 0.0185 percent oftaxable market value. The authority shall each year formulate and file a budget in accordance with the budget procedure of the city in the same manner as required of executive departments of the city or, if no budgets are required to be filed, by August I. The amount of the tax levy for the following year shall be based on that budget. Subd. 7. Inactive authorities; transfer of funds; dissolution. The authority may transfer to the city in and for which it was created all property, assets, cash or other funds held or used by the authority which were derived from the special benefit tax for redevelopment levied pursuant to subdivision 6 prior to March 6, 1953, whenever collected. Upon any such transfer, an authority shall not thereafter levy the tax or exercise the redevelopment powers of sections 469.001 to 469.047. All cash or other funds transferred to the city shall be used exclusively for permanent improvements in the city or the retirement of debts or bonds incurred for permanent improvements in the city. An authority which transfers its property, assets, cash, or other funds derived from the special benefit tax for redevelopment and which has not entered into a contract with the federal government with respect to any low-rent public housing project prior to March 6, 1953, shall be dissolved as herein provided. After a public hearing after ten days' published notice thereof in a newspaper of general circulation in the city, the governing body of a city in and for which an authority has been created may dissolve the authority if the authority has not entered into any contract with the federal government or any agency or instrumentality thereof for a loan or a grant with respect to any urban redevelopment or low-rent public housing project. The resolution or ordinance dissolving the authority shall be published in the same manner in which ordinances are published in the city and the authority shall be dissolved when the resolution or ordinance becomes finally effective. The clerk of the governing body ofthe municipality shall furnish to the commissioner of employment and economic development a certified copy of the resolution or ordinance of the governing body dissolving the authority. All property, records, assets, cash, or other funds held or used by an authority shall be transferred to and become the property of the municipality and cash or other funds shall be used as herein provided. Upon Copyright ~ 2008 by the Revisor of Statutes, State of Minnesota. All Rights Ra~ge Number 31 of 285 3 MINNESOTA STATUTES 2008 469.033 dissolution of an authority, all rights of an authority against any person, firm, or corporation shall accrue to and be enforced by the municipality. History: 1987 c 291 s 33; 1987 c 312 art 1 s 26 subd 2; 1988 c 719 art 5 s 84; 1989 c 209 art 2 s 1; 1989 c 277 art 4 s 61; 1Sp1989 c 1 art 5 s 35; art 9 s 63; 1993 c 320 s 5; 1994 c 416 art 1 s 47; 1994 c 614 s 9; 1997 c 7 art 1 s 142; 1997 c 231 art 2 s 43; 1Sp2003 c 4 s 1; 1Sp2005 c 3 art 1 s 28; 2008 c 366 art 5 s 11 Copyright (Q 2008 by the Revisor of Statutes, State of Minnesota. All Rights R6~ffdage Number 32 of 285 1 MINNESOTA STATUTES 2008 469.102 469.102 GENERAL OBLIGATION BONDS. Subdivision 1. Authority; procedure. An economic development authority may issue general obligation bonds in the principal amount authorized by two-thirds majority vote of its city's council. The bonds may be issued in anticipation of income from any source. The bonds may be issued: (1) to secure funds needed by the authority to pay for acquired property or (2) for other purposes in sections 469.090 to 469.108. The bonds must be in the amount and form and bear interest at the rate set by the city council. Except as otherwise provided in sections 469.090 to 469.108, the issuance of the bonds is governed by chapter 475. The authority when issuing the bonds is a municipal corporation under chapter 475. Subd. 2. Detail; maturity. The authority with the consent of its city's council shall set the date, denominations, place of payment, form, and details of the bonds. The bonds must mature serially. The first installment is due in not more than three years and the last in not more than 30 years from the date of issuance. Subd. 3. Signatures; coupons; liability. The bonds must be signed by the president of the authority, be attested by its secretary, and be countersigned by its treasurer; the signatures may be facsimile signatures. The interest coupons if any, must be attached to the bonds. The coupons must be executed and authenticated by the printed, engrossed, or lithographed facsimile signature of the authority's president and secretary. The bonds do not impose any personal liability on a member of the authority. Subd. 4. Pledge. The bonds must be secured by the pledge of the full faith, credit, and resources of the issuing authority's city. The authority may pledge the full faith, credit, and resources of the city only ifthe city specifically authorizes the authority to do so. The city council must first decide whether the issuance of the bonds by the authority is proper in each case and if so, the amount of bonds to issue. The city council shall give specific consent in an ordinance to the pledge of the city's full faith, credit, and resources. The authority shall pay the principal amount of the bonds and the interest on it from taxes levied under this section to make the payment or from authority income from any source. Subd. 5. Tax levy. An authority that issues bonds under this section, shall, before issuing them, levy a tax for each year on the taxable property in the authority's city. The tax must be for at least five percent more than the amount required to pay the principal and interest on the bonds as the principal and interest mature. The tax must be levied annually until the principal and interest are paid in full. After the bonds have been delivered to the purchasers, the tax must not be repealed until the debt is paid. After the bonds are issued, the authority need not take any more action to authorize extending, assessing, and collecting the tax. On or before September 15, the Copyright @ 2008 by the Revisor of Statutes, State of Minnesota. All Rights ReGlkfUdaage Number 33 of 285 2 MINNESOTA STATUTES 2008 469.1 02 authority's secretary shaH send a certified copy of the levy to the county auditor, together with fuH information on the bonds for which the tax is levied. The county auditor shaH extend and assess the levied tax annuaHy until the principal and interest are paid in fuH. The authority shaH transfer the surplus from the excess levy in this section to a sinking fund after the principal and interest for which the tax was levied and collected is paid. The authority may direct its secretary to send a certificate to the county auditor before September 15 in a year. The certificate must state how much available income, including the amount in the sinking fund, the authority will use to pay principal or interest or both on each specified issue ofthe authority's bonds. The auditor shall then reduce the bond levy for that year by that amount. The authority shall then set aside the certified amount and may not use it for any purpose except to pay the principal and interest on the bonds. The taxes in this section shaH be collected and sent to the authority by the county treasurer as provided in chapter 276. The taxes must be used only to pay the bonds when due. Subd. 6. Authorized securities. Bonds legaHy issued under this chapter are authorized securities under section 50.14. A savings bank, trust company, or insurance company may invest in them. A public or municipal corporation may invest its sinking funds in them. The bonds may be pledged by a bank or trust company as security for the deposit of public money in place of a surety bond. The authority's bonds are instrumentalities of a public governmental agency. History: 1987 c 291 s 103; 1994 c 416 art 1 s 49; 1995 c 256 s 9; 2002 c 390 s 8 Copyright ~ 2008 by the Revisor of Statutes, State of Minnesota. All Rights R6~ge Number 34 of 285 1 MINNESOTA STATUTES 2008 469.107 469.107 CITY MAY LEVY TAXES FOR ECONOMIC DEVELOPMENT AUTHORITY. Subdivision 1. City tax levy. A city may, at the request of the authority, levy a tax in any year for the benefit ofthe authority. The tax must be not more than 0.01813 percent of taxable market value. The amount levied must be paid by the city treasurer to the treasurer of the authority, to be spent by the authority. Subd. 2. Reverse referendum. A city may increase its levy for economic development authority purposes under subdivision 1 in the following way. Its city council must first pass a resolution stating the proposed amount of levy increase. The city must then publish the resolution together with a notice of public hearing on the resolution for two successive weeks in its official newspaper or if none exists in a newspaper of general circulation in the city. The hearing must be held two to four weeks after the first publication. After the hearing, the city council may decide to take no action or may adopt a resolution authorizing the proposed increase or a lesser increase. A resolution authorizing an increase must be published in the city's official newspaper or if none exists in a newspaper of general circulation in the city. The resolution is not effective if a petition requesting a referendum on the resolution is filed with the city clerk within 30 days of publication of the resolution. The petition must be signed by voters equaling five percent of the votes cast in the city in the last general election. The election must be held at a general or special election. Notice of the election must be given in the manner required by law. The notice must state the purpose and amount of the levy. History: 1987 c 291 s 108; 1988 c 719 art 5 s 84; 1989 c 277 art 4 s 64; 1992 c 511 art 5 s 13 Copyright (Q 2008 by the Revisor of Statutes, State of Minnesota. All Rights Ra~daage Number 35 of 285 DATE: TO: FROM: July 22, 2009 City Council H. Alan Kantrud, City Attorney SUBJECT: Maplewood BEDC Ordinance second reading INTRODUCTION On July 13, 2009 Council considered, and passed first reading of, an ordinance establishing a "business and economic development commission" or "BEDC" for the City. The BEDC is intended to be a companion entity to the City's Economic Development Authority, also under consideration for second reading this evening. Staff was asked to make minor edits and additions to the language and bring the ordinance back for second reading. DISCUSSION Council identified 4 specific areas that needed modification in the previously presented Ordinance: 1) Eliminate the requirement of compensation for BEDC members in Section 5; 2) Mayor Longrie recommended and Council agreed that 3 of the members called out in Section 5 should be representative of "small business" in Maplewood; 3) Change the word "and" to "as" in Section 6, Subd. 4 (I am also capitalizing the word Handbook for consistency); 4) Change the spelling of the "Lilly" News to the "Lillie" News at the end of the Ordinance (I am changing the publication date as well). Staff has modified the Ordinance per request of Mayor and Council; changes are in bold, with deleted language stricken-through. Staff looked into possible definitions of "small business" and found that the working definition within governmental agencies may be a bit awkward for the City's purposes. So-called "small business" is actually defined differently depending on several criteria, from sales figures to numbers of employees and all varying depending on the trade/industry. An entire guidebook is available to help identify qualifying "small business" entities that is readily available, but that seems too complex an analysis when most people can identify "small business" when they see it... To the above-point Staff has essentially created a working definition for you to consider. The additional language regarding small business representation on the BEDC has been Packet Page Number 36 of 285 included in Section 5 and the working definition of "small business" added to Section I, regarding definitions, all in bold typeface. RECOMMENDATION Please review the modified ordinance and consider approval of second reading for the formation of a BEDC for the City. Packet Page Number 37 of 285 ORDINANCE NO. 1999 C AN ORDINANCE 1989 1 D ESTABLISHING THE MAPLEWOOD BUSINESS AND ECONOMIC DEVELOPMENT COMMISSION (BEDC) THE CITY COUNCIL OF THE CITY OF MAPLEWOOD, MINNESOTA ORDAINS: SECTION 1. Definitions. Subdivision 1. Common terms. As used in this Ordinance, the terms defined have the meanings given them. Subd 2. "Commission" - a Business and Economic Development Commission, or "BEDC" Subd.3. "City" - the City of Maplewood, Minnesota. Subd. 4. "City Council" - the duly elected governing body of the City of Maplewood, Minnesota. Subd.5. "Enabling Resolution" - this Ordinance. Subd. 6. "Small Business" - a business whose principal place of operation is in the City of Maplewood and employs thirty people or less and is not a subsidiary of a larger entity or a corporate-owned franchise location. SECTION 2. Establishment. A Business and Economic Development Commission is established which shall have all of the powers, duties and responsibilities of a commission pursuant to Minnesota Statues ~ 13.01, subd. l(c)(5) and formed pursuant to Minnesota Statute ~ 412.21, subd.l '169.123. SECTION 3. Purpose. It shall be the role and responsibility of the Commission to discuss and make recommendations to the Maplewood Economic Development Authority regarding economic and industrial development and redevelopment within the City of Maple wood pursuant to Bylaws as may be adopted by the Commission. It shall confer with other City departments, the Maplewood Economic Development Authority, the local Chamber of Commerce, the Maplewood Parks Commission, and other public and private groups on matters relating to business and industrial development and periodically survey the area's industrial and commercial climate and report regularly to the Maplewood Economic Development Authority, the Maplewood City Council, or both as directed. SECTION 4. Name. The Entity created by the Enabling Resolution shall be known as the Maplewood Business and Economic Development Commission, or BEDC. SECTION 5. Members. The Commission shall initially consist of seven (7) members, three (3) of which shall be representative of, "small business," if available to serve, in Maplewood. The Members shall be appointed by the Mayor and City Council, upon approval by majority vote of the same. Those initially appointed shall be appointed for staggered terms consisting of two members appointed to one (1) year terms; two members appointed to two (2) year Packet Page Number 38 of 285 terms; and three members appointed to three (3) year terms, respectively, with a "small business" representative appointed in each of the initial term timeframes. Thereafter, Members are appointed to three (3)-year terms. Tile Members sllall be ]'laid eom]3eRsatiElB as establiohed by tile CEl_eil. Members may be reimbursed for expenses pursuant to City reimbursement policies. SECTION 6. Administration. Subdivision I. Bvlaws. The Commission shall adopt Bylaws and rules of procedure for administration of its affairs. Subd. 2. Chair. The Commission shall elect a Chair, and a Vice Chair on an annual Subd. 3. Meetings. The Commission shall meet quarterly and at such other times as necessary. Subd. 4. Rules. The Commission shall adopt such rules and guidelines as they deem appropriate, but shall operate in accordance with Maplewood's Commission Handbook as adopted and amended from time to time. No rules shall be adopted by the Commission that are in conflict with the City's Official Commission Handbook and in the event of any conflict or question, the Handbook shall prevail.The ,A,uthority shall meet jointly with the Parks and Reoroation Board at leaot quarterly. SECTION 7. Modification. All modifications to the Enabling Resolution must be by Ordinance and must be adopted by the City Council by majority vote. SECTION 8. Report to Council. The Commission shall submit a written report of its activities and/or recommendations for modification of the Enabling Resolution to the Council at least annually. SECTION 9. Director. The City's Manager, of designee, shall attend all meetings of the Commission, shall serve as a consultant and advisor to the Commission and shall make quarterly reports to the Council. SECTION 10. Conflicts of Interest. Except as authorized by Minnesota Statute 471.88, a Member ofthe Commission may not have a substantial conflict of interest in projects undertaken by the Commission. SECTION 11. Intent to Comply. Except as otherwise authorized by Minnesota Statute, it is the intent of the City Council of Maplewood to create the Business and Economic Development Commission as a "standing" body of the City that shall be subject to the rules, regulations, restrictions and requirements as defined in both the Open Meeting Law, ~ 13D. 01 et seq. and the Minnesota Government Data Practices Act, ~ 13, et seq. SECTION 12. This Ordinance shall take effect and be in force upon passage and publication. Adopted by the City Council this 13th day of FebnuwyJulv. +99-92009. Packet Page Number 39 of 285 GEORGE O'BRIEN Diana Longrie_- MAYOR CITY OF Maplewood ATTEST: James Antonen CITY CLERK TREAStJRERMANAGER An Official Title & Summary of Ordinance f'Qublished in the Lillie News on the 2+8th day of FebnmryJulv. ~2009~ Packet Page Number 40 of 285 Agenda Item K.2.c AGENDA REPORT SUBJECT: City Manager, Jim Antonen Charles Ahl, Assistant City Manager/Public Works Director H. Alan Kantrud, City Attorney Economic Development Authority Consider Accepting and Authorization to Enter into Purchase Agreement with Roadmaster of Minnesota LLC for Parcel on Van Dyke Street North at Castle Avenue July 22, 2009 INTRODUCTION On June 22,2009, the City Council acknowledge the receipt of a purchase agreement from Roadmaster of Minnesota LLC for a vacant parcel owned by the City on Van Dyke Street North, near the intersection with Castle Avenue. It is proposed that the Council authorize the property to be conveyed to the Economic Development Authority and to authorize the execution of the purchase agreement provisions. DATE: TO: FROM: DISCUSSION Attached for the consideration of the City Council is the purchase agreement from Roadmaster of Minnesota LLC who is looking to assemble parcels on the north end of Van Dyke Street near Castle Avenue for the purpose of developing the site. This vacant parcel has been appraised at $420,000, while the purchase agreement is for the sum of $450,000. On June 22"d, members of the Council indicated some concerns with entering into a sale agreement without knowledge of the intended uses for the City. Due to a confidentiality agreement, the developer is unable to divulge the identity of the end users of the site, because of an existing lease that the end user has at their current location. The developer has provided the attached letter indicating specific uses that will not be a part of the City. In addition, the purchase is subject to a re-zoning request that the City can deny, which would negate the purchase. The Purchase Agreement provides for $10,000 of earnest money to be provided from the developer to the City. This money is a non-refundable deposit, that remains available to the City, unless we determine that we are not interested in the sale, prior to the final closing, which is 60-90 away, at a minimum. It is the recommendation of the City staff and City Attorney to proceed with this sale at this time. This action is not the final determination of sale, but an indication that given the current conditions, that the City does intend to sell the property so that the developer can apply for the necessary zoning and planning approvals. At this point, the City staff does not foresee concerns with the uses or sale of this property. RECOMMENDATION It is recommended that the City Council adopt a motion to approve the acceptance and authorize the Mayor and City Manager to execute the purchase agreement for the sale of the vacant city parcel on Van Dyke Street North at Castle Avenue according to the conditions provided within said agreement. Attachments: 1. Purchase Agreement from Roadmaster of Minnesota LLC 2. Letter on uses Packet Page Number 41 of 285 , PURCHASE AND SALE AGREEMENT Tms PURCHASE AND SALE AGREEMENT ("this A-greement") is made as of this _ day of May, 2009, by and between CITY OF MAPLEWOOD, a MiImesota municipal corporation ("Seller"), and ROADMASTER OF MINNESOTA LLC, a Minnesota limited liability company ("Buyer"), upon the following terms and conditions: 1. PROPERTY. Buyer offers to purchase and Seller agreed to sell that certain parcel of real property that is located on VanDyke Street North, in the City of Map1ewood, Minnesota (the "City"), and that is assigned Property Tax Identification Number 11-29-22-33-0022 (the "Property"). The exact legal description of the Property shall be established by the Commitment and confirmed by the Survey. 2. PURCHASE PRICE. The price for the Property is Four Hundred Fifty Thousand and 00/100 Dollars ($450,000.00) (the "Purchase Price"), which Buyer shall pay as follows: Ten Thousand and 00/100 Dollars ($10,000.00) (the "Earnest Money"), in cash upon acceptance of this Agreement by Seller, and the balance in cash the Date of Closing (hereinafter defmed). The parties hereto agree that the Earnest Money shall be deposited with Stewart Title of Minnesota (''Title''), 150 South Sixth Street, Suite 1330, Mi:imeapolis, Minnesota 55402, to be held in escrow by Title and disbursed as provided in this Agreement. Buyer shall pay all escrow fees charged by Title for holding and disbursing the Earnest Money. 3. DEED; MARKETABLE TITLE. Upon performance by Buyer, Seller shall execute and deliver a Warranty Deed (the "Deed") conveying marketable fee title to the Property, subject to (a) building and zoning laws, ordinances, state and federal regulations; (b) reservation of any mineral rights by the State of Minnesota; ( c) an easement for street and utility purposes in favor of the City over and across that portion of the Property legally described on Exhibit A attached hereto and made a part hereof, and (d) exceptions to title which constitute encumbrances, restrictions, or easements which have been disclosed to and accepted by Buyer as hereinafter provided. 4. REAL ESTATE TAXES AND SPECIAL ASSESSMENTS. Real estate taxes due and payable in and for the year of closing shall be prorated between Seller and Buyer on a calendar year basis to the actual Date of Closing, unless otherwise provided in this Agreement. Buyer shall pay on the Date of Closing all installments of special assessments certified for payment with the real estate taxes due and payable in the year of closing. Buyer shall assume on the Date of Closing all other special assessments levied as of the date ofthis Agreement. If any other special assessment becomes pending after the date of this Agreement and before the Date of Closing, Buyer may, at Buyer's option to be exercised by written notice thereof to Seller, either (i) agree to assume payment of said pending special assessments without adjustment to the Purchase Price; or (ii) declare this Agreement null and void by notice to Seller, and in such event the Earnest Money shall be refunded to Buyer. PSA 05- t 9-09 Packet Page Number 42 of 285 Buyer shall pay real estate taxes due and payable in the year following closing and thereafter and any unpaid special assessments payable therewith and thereafter, the payment of which is not otherwise provided for herein. Seller warrants that real estate taxes due and payable in 2009 will be non-homestead classification. Seller makes no representations concerning the amount of future real estate taxes or of future special assessments. Seller shall pay on or before the Date of Closing any deferred real estate taxes (i&, so- called "senior deferred" taxes) or unusual or deferred assessments or charges the payment of which is required as a result of the closing of the sale. 5. REPRESENTATIONS AND WARRANTIES OF SELLER. Seller represents and warrants to Buyer as follows: (a) The Property is not in violation of any law, regulation, ordinance or code affecting the Property, and there is no anticipated condemnation with respect to any part of the Property. (b) If the Property is subject to restrictive covenants, Seller has not received any notice from any person as to a breach of the covenants. (c) Seller has not received any written notice of any liabilities or threatened litigation with respect to the Property. (d) The Property is not subject to any easements, rights-of-way, liens, tenancies, security interest or other encumbrances of any nature that will not be discharged by and at the expense of Seller at or prior to the Date of Closing, with the exception of such matters as may be disclosed by the Survey and/or in the Commitment. (e) No person has any option to purchase all or any portion of the Property, nor shall any person have any right of fITst refusal or similar right with respect to all or any portion of the Property. (t) Except as may be set forth in any Well Disclosure Certificate made by Seller and delivered to Buyer in connection with this Agreement, Seller do not know of any "wells" (within the meaning of Minnesota Statutes Section 103t005, subdivision 21) on the Property. (g) There are no underground or above ground storage tanks located in or about the Property, and to the best of Seller's knowledge and belief no such storage tanks have existed in or about the Property or, if any such storage tanks have existed, there has been no leak or spill of any petroleum or its byproducts from any such storage tanks previously existing on the Properly. Page 2 of 10 Packet Page Number 43 of 285 (h) Seller is not a "foreign person" within the meaning of the Internal Revenue Code of 1954, as amended (the "Code"), and Seller shall execute and deliver to Buyer on the Date of Closing an affidavit satisfYing the requirements of Section 1445 ofthe Code. (i) To Seller's knowledge, without inquiry, (i) no hazardous or toxic materials or substances (including specifically petroleum or any of its byproducts) exist on or under the Property, and (ii) there has never been a release of any substance on, in, under or from the Property which is regulated by any applicable federal, state or local laws, ordinances, rules, regulations, codes, orders or decrees relating to the protection of the enviroment, in violation of such laws, ordinances, rules, regulations, codes, orders or decrees, including (without limiting the generality of the foregoing) any leak or spill of petroleum or any of its byproducts. Q) To the best of Seller's knowledge, the Property has not been used for the production of methamphetamine. The foregoing representations and warranties shall be reaffirmed to Buyer in writing by Seller as of the Date of Closing, and shall survive the delivery of the Deed. 6. CONDITION OF PROPERTY; CONDEMNATION. Buyer is purchasing the Property in its "as-is" condition, with the intention of using it for commercial development. Seller makes no warranties or representations of any kind concerning the condition of the Property, except as set forth in the foregoing Paragraph. Furthermore, the damage or destruction of any improvements that are a part of the Property shall not affect the obligations of Buyer or Seller hereunder, except that in such event Seller shall assign or deliver to Buyer at closing all of Seller's interest in any insurance proceeds, or the actual proceeds, resulting from such damage or destruction, regardless of when paid. Seller shall not (i) make any changes or alterations to the Property except in the ordinary course of business, (ii) execute, modify or extend any agreements affecting the Property, or (iii) initiate or consent to the initiation of any zoning, rezoning, special exception, subdivision or condemnation ofthe Property. Seller shall provide to Buyer a copy of all information available to Seller relating to the condition of the Property including, but not limited to, title insurance policies, surveys, soil reports, environmental reports, plans or specifications for buildings, if any exist, and geotechnical information, within fifteen (15) days after the date on which the last of the parties to this Agreement execute the same, as indicated by the date following the party's signature below (the "Execution Date"). Except as expressly stated in this Agreement, Buyer is not assuming any contracts, agreements, orders, liabilities or obligations of Seller, whether with respect to the Property or otherwise. Buyer assumes no liabilities of Seller of any kind or nature whatsoever, whether known or unknown, fixed or contingent, in connection with or as a result of the acquisition of the Property or Seller's operation of any business, concern or enterprise involving the Property, and Seller shall hold Buyer harmless from all claims with respect to such liabilities. Page 3 oflO Packet Page Number 44 of 285 7. CONTINGENCIES. Buyer's obligations under this Agreement are contingent upon the satisfaction of the following conditions precedent: A. The results of any investigation of the physical conditions of the Property that Buyer in its sole discretion may choose to make, which may include an enviromnental audit of the Property, are satisfactory to Buyer in its absolute discretion. Seller agrees that Buyer and its agents shall have access to the Property at all reasonable times to perfonn such investigations, provided that Buyer shall be responsible for all costs and expenses relating to such investigations, shall hold Seller and the Property hannless from all liability which may arise as the result of such investigations by Buyer, and shall restore the Property to substantially the same condition as existed prior to such investigation. B. All final unconditional penuits and approvals required for the commercial development ofthe Property with such improvements, at such densities and with such infrastructure as Buyer, in its sole discretion, shall deem appropriate for the same ("Buyer's Development Plans"), have been obtained from all governmental or quasi-governmental authorities having jurisdiction over such development. Buyer agrees that its application for approval of Buyer's Development Plans shall be submitted to the Planning Commission of the City within 180 days of the Execution Date. Seller agrees to cooperate with Buyer in obtaining such penuits and approvals, and Seller shall execute such applications and agreements relating to the same as may be required to obtain such permits and approvals, provided that Buyer shall bear all costs and expenses relating thereto, and provided that no final penuits or approvals shall be obtained prior to the Date of Closing. C. Seller shall cause the City to vacate those portions of Cope Avenue adjoining the Property to the North and those portions of Lark Avenue adjoining the property at 2260 Van Dyke Street North (Property Tax Identification Number 11-29-22-33- 0027) to the South. Buyer agrees to include its request for such vacations in its submittal of its application for the approval of Buyer's Development Plans. D. Seller shall cause the public improvement project known as City Project 08-12 to be completed, without cost to Buyer or the Property. Buyer in its sole discretion may waive any or all of the forgoing contingencies, which waiver shall be in writing, given to Seller on or before the date (the "Contingency Date") that is the later to occur of (i) the date that the City gives final approval for Buyer's Development Plans, and (ii) the first anniversary ofthe Execution Date. However, if all of the foregoing contingencies have not been satisfied or waived by Buyer on or before the Contingency Date, then this Agreement shall be null and void, without the need for further action on the part of either party hereto, and thereupon Title shall return to Buyer all Earnest Money held by Title. 8. EXAMINATION OF TITLE. If the Property is abstract property, within ten (l0) days after the Execution Date, Seller shall furnish Buyer with an Abstract of Title to the Property. Using said Abstract of Title, Buyer shall obtain a Commitment for an Owner's Policy of Title Page 4 oflO Packet Page Number 45 of 285 Insurance (ALTA Form B-1970, if available) from Title (the "Commitment") in which Title agrees to insure good and marketable fee title to the Property of record without exception, with standard exceptions thereto for mechanic's liens, matters disclosed by survey and rights of parties in possession deleted, and which provides for increased coverage to include the cost of improvements hereafter constructed on the Property by Buyer or Buyer's assignee. The costs of continuing said Abstract of Title to a current date shall be paid by Seller, and Seller shall pay the costs of producing the above-described searches. The service charge for the Commitment and the premium for the policy issued pursuant thereto, if ordered, shall be paid by Buyer. In addition, upon its receipt ofthe Commitment, Buyer shall order a survey of the Property, dated subsequent to the date hereof and certified to Seller, Buyer and Title by a registered land surveyor licensed in the State of Minnesota as having been prepared in accordance with the Miillmum Standard Detail Requirements for Land Title Surveys, as jointly adopted by the American Land Title Association and the American Congress on Surveying and Mapping in 2005 and as meeting the standards of an "Urban" survey (the "Survey"). All costs related to the production of the Survey shall be borne by Buyer. Buyer shall have ten (10) days after receipt of the Survey to provide Seller with a copy of the Commitment and written objections to the status oftitle disclosed therein. Any matters shown in such title evidence and not objected to within such ten (10) day period shall be deemed to be permitted encumbrances to title, and Buyer shall be deemed to have waived any title objections not made within said ten (10) day period, except that this shall not operate as a waiver of Seller's covenant to deliver the Deed, except that (whether or not objection is made by Buyer thereto) Seller shall be responsible for curing on or before the Date of Closing (i) all liens, mortgages, judgments, past due real estate taxes and/or special assessments (including interest and penalties thereon) not the result of Buyer's actions, and (ii) any matters which arise out of Seller's intentional act (or an active or intentional omission). 9. TITLE CORRECTIONS AND REMEDIES. IfBuyer shall make objection to the status oftitle to the Property as provided hereinabove, Seller shall have until the Date of Closing to make title marketable. Liens or encumbrances for liquidated amounts that can be released by payment or escrow from proceeds of closing shall not delay the closing. Cure of the defects by Seller shall be reasonable, diligent, and prompt. A. If title is marketable, or is made marketable as provided herein, and Buyer defaults in any of its agreements herein, Seller may elect either of the following remedies: 1. Cancel this Agreement as provided by statute and retain all payments made hereunder as liquidated damages. 2. Seek specific performance within six (6) months after such right of action arises, including costs and reasonable attorney's fees, as permitted by law. B. Iftitle is marketable, or is made marketable as provided herein, and Seller defaults in any of its agreements herein, Buyer may elect any of the following remedies: PageS of10 Packet Page Number 46 of 285 1. Terminate this Agreement, and receive a refund of all Earnest Money paid hereunder and all interest earned thereon. 2. Seek specific performance within six (6) months after such right of action arises, including costs and reasonable attorney's fees, as permitted by law. 10. CLOSING; ALLOCATION OF CLOSING COSTS; DELIVERY OF POSSESSION. Closing of the transaction contemplated by this Agreement shall occur on a date which is thirty (30) days after the Contingency Date, or (if such date is a weekend day) the next business day (the "Date of Closing"), in the offices of Title at 150 South Sixth Street, Suite 1330, Minneapolis, Minnesota, Minnesota, at 10 a.m., or at such other place or time of day as the parties hereto may agreed to; provided, however, that the Date of Closing shall be extended to the extent required by the terms hereof for Seller to make title marketable. Buyer shall pay any fee or charge imposed by Title to close the transaction contemplated by this Agreement. Buyer shall be responsible for the payment of the State Deed Tax due on the recording of the Deed. Buyer shall pay for the cost of fIling the documents (if any) required to correctthe title objections that have been raised by Buyer pursuant to the title examination provisions hereof, and Buyer shall pay for the cost of filing the Deed. Seller and Buyer each shall be responsible for the payment of their respective attorneys' fees. For purposes of complying with the reporting requirements of Section 6045( e) of the Code, Title shall be the "real estate broker" as defined in Section 6045(e)(2) of the Code and Title shall be responsible for the filing of the 1099-B forms or other returns required by Section 6045( e)(l) of the Code. Seller shall deliver possession of the Property on the Date of Closing. 11. GENERAL PROVISIONS. (a) Assignment. Buyer shall have the right to assign its interest under this Agreement without the prior written consent of Seller, provided that Buyer shall give Seller written notice of such assignment. Seller may not, without Buyer's prior written consent, assign or encumber all or any portion of the Property or its rights under this Agreement, during the term of this Agreement. (b) Governing Law. The laws ofthe State of Minnesota shall govern this Agreement. (c) Entire Agreement: Amendments. This Agreement contains the entire agreement between Seller and Buyer relating to the purchase and sale of the Property, and it may be amended only by an instrument in writing signed by both parties hereto and consented to by Title. (d) Attornevs' Fees. In the event it becomes necessary for either party hereto to file suit to enforce this Agreement or any provisions contained herein, the party prevailing in Page 6 oflO Packet Page Number 47 of 285 such suit shall be entitled to recover, in addition to all other remedies or damages, as provided herein, reasonable attorneys' fees incuned in such suit. (e) Confidentiality. Neither party hereto shall disclose (without the other party's consent, which consent may be witbheld in that party's sole discretion) the existence or tenns of this Agreement, except as may be required by law, to any person other than persons retained by Buyer to conduct studies or investigations of the Property, and auditors, accountants, lenders, and attorneys who have responsibility to such party for participating in the transaction contemplated by this Agreement. (f) TIME IS OF THE ESSENCE FOR ALL PROVISIONS OF TIDS AGREEMENT. 12. BROKER DISCLOSURE AND BROKER REPRESENTATIONS. The parties acknowledge that Buyer is represented in the transaction contemplated by this Agreement by Don Twombly of Prudential Commercial Services, and Buyer agrees that it shall pay any commission due to its broker at Closing. Buyer agrees to indemnifY and hold Seller harmless from any claims, damages, costs or expenses of or for any fee or commission resulting from its actions or agreements regarding such transaction which may be claimed by its broker. Seller and Buyer each represent to the other that they have not dealt with any other broker, in connection with the transaction contemplated by this Agreement, and each agrees to indemnify and hold the other hannless from any claims, damages, costs or expenses of or for any fee or commission resulting from their actions or agreements regarding such transaction which may be claimed by any such other broker. 13. NOTICES. Any notice, demand, request or other communication which mayor shall be given or served by Seller to or on Buyer, or by Buyer to or on Seller, shall be deemed to have been given or served on the date the same is hand delivered or deposited in the United States mail, registered or certified, postage prepaid, and addressed as follows: Notices to Seller: City of Maple wood Attention: Chuck Ahl 1830 County Road B East Map1ewood, MN 55109 Notices to Buyer: Roadmaster of Minnesota LLC c/o Kirk Dahlstrom 1074 Robert Street South West St. Paul, Minnesota55118 With a copy to: Don Twombly Prudential Commercial Services 1456 Arden View Drive Arden Hills, Minnesota 55112 Page 7 of 10 Packet Page Number 48 of 285 14. DUTIES OF TITLE. The sole duties of Title shall be those described herein, and Title shall be under no obligation to determine whether the other parties hereto are complying with any requirements oflaw or the terms and conditions of any other agreements between said parties. Title may conclusively rely upon and shall be protected in acting upon any notice, consent, order or other document believed by it to be genuine and to have been signed or presented by the proper party or parties hereto, consistent with reasonable due diligence on the part of Title. Title may consult the advice of counsel with respect to any issue concerning the interpretation ofits duties hereunder. Seller and Buyer each hereby acknowledge such fact and indemnify and hold harmless Title from any action taken by Title in good faith and using reasonable diligence in reliance thereon. Title shall have no duty or liability to verify any such notice, consent, order or other document, and its sole responsibility shall be to act as expressly set forth in this Agreement. If any dispute arises with respect to the disbursement of any monies, Title may continue to hold the same or commence an action in interpleader and in connection therewith remit the same to a court of competent jurisdiction pending resolution of such dispute, and Seller and Buyer each hereby indemnify and hold harmless Title for any action taken by Title in good faith in the execution of its duties hereunder. (signature page follows) Page 8 of 10 Packet Page Number 49 of 285 IN WITNESS WHEREOF, Seller and Buyer have caused this Agreement to be executed as of the day and year first above written. CITY OF MAPLEWOOD ("Seller") ROADMASTER OF MINNESOTA LLC ('Buyer'') Its Mayor By J/dd p~ I Its Memb~r Date: May $2009 By And by Its City Manager Date: May -' 2009 CONSENT OF TITLE STEWART TITLE OF MINNESOTA, the party identified as "Title" in the foregoing Agreement, agrees to hold and disburse all instruments and funds deposited with it pursuant to the terms of said Agreement, in accordance with the terms and conditions of said Agreement, subject to the specific disclaimer contained therein. STEW ART TITLE OF MINNESOTA By Its Page 9 oflO Packet Page Number 50 of 285 EXHIBIT A Legal Description of City Easement The south 15.00 feet of the west 20.00 feet of the above described property. And, all that part of the first above described property beginning at the northwest comer of said first above described property; thence South 00 degrees 25 minutes 24 seconds East, assumed bearing, along the westerly line of said first above described property a distance of 107.56 feet; thence North 89 degrees 31 minutes 48 seconds East, a distance of 4. 74 feet; thence northeasterly a distance of 28.52 feet along a non-tangential curve concave to the southeast having a radius of 113.33 feet and a central angle of 14 degrees 25 minutes 13 seconds, the chord of said curve bears North 34 degrees 20 minutes 07 seconds East; thence North 41 degrees 32 minutes 44 seconds East, tangent to the last described curve, a distance of29.17 feet; thence northerly a distance of 55.58 feet along a tangential curve concave to the northwest having a radius of 68.17 feet and a central angle of 46 degrees 42 minutes 42 seconds; thence North 02 degrees 41 minutes 26 seconds East, along a non-tangent line 11.23 feet to a point on the north line of said first above described property distant 58.23 feet easterly from the point of beginning; thence South 89 degrees 38 minutes 06 seconds West, along said north line a distance of 58.32 feet to the point of beginning. PSA 05-19-09 Packet Page Number 51 of 285 Packet Page Number 52 of 285