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HomeMy WebLinkAbout10.07.82Minutes of Maplewood City Council 6:00 P.M., Thursday, October 7, 1982 Council Chambers, Municipal Building Meeting No. 82 -27 A. CALL TO ORDER A regular meeting of the City Council of Maplewood, Minnesota was held in the Council Chambers, Municipal Building and was called to order at 6:02 P.M. by Mayor Greavu. B. ROLL CALL John C. Greavu, Mayor Present Norman G. Anderson, Councilmember Present Gary W. Bastian, Councilmember Present Frances L. Juker, Councilmember Present MaryLee Maida, Councilmember Present C. APPROVAL OF MINUTES 1. Minutes No. 82 -25 (September 13, 1982) Councilmember Anderson moved that the Minutes of Meeting No. 82-25 (September 13, 1982) be approved as corrected: Page 9 — Item F -2 1g: "Seconded by Councilmember Anderson. Ayes all." Seconded by Councilmember Juker. Ayes — all. D. APPROVAL —OF AGENDA— Mayor Greavu moved to approve the agenda as amended: 1. Volunteerism 2. Staff and Council 3. 25th Anniversary Run Seconded by Councilmember Maida. Ayes — all. E. CONSENT AGENDA - 1. 1983 Budget 6:00 P.M. a. Mayor Greavu convened the meeting for a public hearing regarding adoption of the 1983 Budget., b. Manager Evans presented the budget to the Council. C. Councilmember Maida moved to increase the Election Budget by $950 to cover costs of relocating Precinct !_ 3 - -!-- Seconded by Mayor Greavu. Ayes — all. d. Mayor Greavu moved_ to increase the Fire Departments budget by the 4% that was deleted earlier. — 1 — 10/7 Seconded by Councilmember Maida. Councilmember Bastian moved to increase the Fire Departments budget by 3 %. Seconded by Councilmember Anderson. Ayes - Councilmembers Anderson and Bastian. Nays - Mayor Greavu, Councilmembers Juker and Maida. e. Fire Chief Bill Mikiska, Gladstone Fire Department and Don Hove..,, East County Line Fire Department explained their budget requests. Voting on original motion. Ayes - Mayor Greavu, Councilmembers Anderson, Juker and Maida. Nays - Councilmember Bastian. f. Mayor Greavu called for proponents and opponents. None were heard. g. Mayor Greavu closed the public hearing h. Councilmember Bastian introduced the following resolution adopting the 1983 _ Budget and moved its adoption:-- 82 - 10 - 136 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF MAPLEWOOD,MINNESOTA, that the budget for 1983 is hereby adopted with the following appropriations for each department and fund: General Fund: General Government $ 679,680 Finance 174,910 City Clerk 152,020 Public Safety 2,677,180 Public Works 939,240 Community Services- 687,280 Community Development 239,880 _ $ 5,550,190 Hydrant Charge Fund: Public Works 61,910 Sewer Fund: City Clerk 169,220 Public Works 1,914,650 V.E.M. Fund: Public Works 299,470 Park Development Fund: Community Services 114,000 Debt Service Funds 221,030 Special Assessment Fund - -Debt Service Accounts 5,432,350 Total $ 13,762,820 BE IT FURTHER RESOLVED, that all budget changes shall require City Council approval except for budget transfers of up to $1,500 between accounts which shall be implemented upon approval by the City Manager. - 2 - 10/7 BE IT FURTHER RESOLVED, that authorization is hereby given to transfer $307,000 of revenue sharing monies to the General Fund to - partlyfinance the contracts between the City and its three fire departments: Gladstone, Parkside and East County Line. Seconded by Councilmember Anderson. Ayes - all. i. Resolution Levying Taxes Payable in 1983 Councilmember Bastian introduced the following resolution and moved its adoption: 82 - 10 - 137 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF MAPLEWOOD, MINNESOTA that: 1. The following amounts of taxes be levied for 1982, payable in 1983, upon the taxable property in said City of Maplewood, for the following purposes: General Fund $ 3,223,980 Debt Service Funds 88,300 Special Assessment Fund 502,700 Total Levy $ 3,814.980 _ 2. There is on hand in the following sinking funds excess amounts as indicated after each fund and such shall be used to pay on the appropriate obligations of the City: Description 1964 Water Improvement Bonds $ 54,364 1964 Consolidated Improvement Bonds 20,000 1965 Municipal Bonds 684 1965 General Obligation Improvement Bonds 17,000 1966 General Obligation Improvement Bonds 24,000 1967 General Obligation Sanitary Sewer Bonds -2,200 1967 General Obligation Improvement Bonds 8,600 1968 Improvement Bonds 6,500 1969 General Obligation Improvement Bonds 45,000 1971 General Obligation Improvement Bonds - 65,000 1972 General Obligation Improvement Bonds - Series 1 1,600 1972 General Obligation Improvement Bonds - Series 2 2,000 1973 Improvement Bonds 95,000 1977 Public Works Building Bonds 6,400 1977 General Obligation Improvement Bonds - Series 2 65,000 1979 General Obligation Improvement Bonds 9,900 1980 Fire Station Bonds 84,000 Total $507,248 In accordance with Minnesota Statutes 475.61 and 273.13, Subd. 19 (3), (a), (b), (c) and Chapter 297a and Chapter 162 of Minnesota Statutes, the County Auditor of Ramsey County is hereby authorized and directed to reduce by the amounts above mentioned the tax that would be otherwise included in the rolls for the year 1982 and collectible in 1983. 3. It has been determined that the following bond issues have insufficient projected assets to meet projected liabilities, as required by State Statute, and the original resolution levying ad- valorem taxes must be increased in the following amount: - 3 - 10/7 Increase Description In Levy 1970 General Obligation Improvement Bonds 3,100 1977 General Obligation Improvement Bonds- Series 1 115,900 In accordance with Minnesota Statute 475.61, Subd. 2, the County Auditor of Ramsey County is hereby authorized and directed to increase by the amount above mentioned the tax that would be otherwise included in the rolls for the year 1982 and collectible in 1983. 4. Changes set forth in sections one (1) and (2) above result in a net reduction of $388,248 and are summarized and hereby adopted as Schedule "A ".. Such amounts shown are the total amounts to be spread on the rolls in 1982 and collectible in 1983 for each of the bond issues shown, including the reductions and increases in levy amounts set forth in sections one (1) and two (2) above. 5. The City Clerk is hereby authorized and directed to furnish a copy of this resolution to the County Auditor of Ramsey County forthwith. BONDS & INTEREST LEVIES COLLECTIBLE 1983 Seconded by Councilmember Anderson. Ayes - all. j. 1983 Delinquent Sewer Accounts Councilmember Bastian introduced the following resolution and moved its adoption: - 4 - 10/7 Prin. Code Per Bond Amount BOND ISSUES- Amount Date No. Register Levied Water Main Extension Improvement $ 600M 9/15/64 509 $ 54,364 $ - Consolidated Improvement 975M 12/1/64 509 20,000 - Municipal Building 175M 5/1/65 301 16,884 16,200 General Obligation Improvement 835M 12/1/65 509 17,000 - General Obligation Improvement 750M 12/1/66 509 24,000 - General Obligation Imp. San.Swr, 645M 7/1/67 503 12,000 9,800 General Obligation Improvement 450M 12/1/67 504 12,000 3,400 General Obligation Improvement 380M 12/1/68 505 6,500 - *General Obligation Improvement 1,98OM 12/1/69 514 45,000 - * *General Obligation Improvement 605M 12/1/70 521 10,000 13,100 *General Obligation Improvement 1,74OM 8/1/71 514 65,000 - State Aid Bonds 54OM 8/1/71 302 - - General Obligation Improvement 1,090M 5/1/72 510 30,000 28,400 General Obligation Improvement 670M 12/1/72 511 30,000 28,000 General Obligation Improvement 2,175M 7/1/73 513 95,000 - * *General Obligation Improvement 1,240M 11/1/74 521 45,000 45,000 * *General Obligation Improvement 1,360M 12/1/75 521 75,000 75?000 --General Obligation Improvement 1,990M 5/1/76 521 128,600 128,600 General Oblig. Imp.- Series 1 3,730M 4/1/77 519 12,400 128,300 Public Works Building Bonds 995M 4/1/77 303 78,500 72,100 General Oblig. Imp.- Series 2 3,815M 10/1/77 520 65,000 - General Obligation Bonds -1979 825M 8/1/79 522 53,000 43,100 Fire Station Bonds 470M 8/1/80 304 84,000 - $979,248 $591,000 *TAX LEVIES PLEDGED TO REDEEM G. 0. REFUNDING IMPROVEMENT BONDS 1974 ^TAX LEVIES PLEDGED TO REDEEM G. 0. REFUNDING IMPROVEMENT BONDS 1977 Seconded by Councilmember Anderson. Ayes - all. j. 1983 Delinquent Sewer Accounts Councilmember Bastian introduced the following resolution and moved its adoption: - 4 - 10/7 82 - 10 - 138 .RESOLVED that the City Clerk is hereby authorized and directed to certify to the Auditor of Ramsey County the attached list of delinquent sewer rental charges and hydrant charges said list made a part herein, for certification against the tax levy of said property owners for the year 1982, collectible in 1983, and which listing includes interest at the rate of thirteen (13 %) percent on the total amount for one year. - Total amount to be certified: $47,842.34. Seconded by Mayor Greavu. Ayes - all. k. 1983 Delinquent Weed Cutting Charges Councilmember Bastian introduced the foll 82 - 10 - 139 resolution and moved its a RESOLVED, that the City Clerk is hereby authorized and directed to certify to the .Auditor of Ramsey County the attached list of delinquent weed cutting charges said list made part herein for certification against the tax levy of said proper- ty owners for the year 1982, collectible in 1983 and which listing includes interest at the rate of thirteen (13 %) percent on the total amount for the year. 57 48950 010 Ol 57 62750 010 01 57 27500 100 Ol $ 62.16 39.56 41.82 Seconded by Mayor Greavu. Ayes - all. 2. Plan Amendment - Health Resources, Inc. 6:30 P.M. a. Mayor Greavu convened the meeting regarding a plan amendment from C Service Commercial to RB Residential Business as requested by Health Resources, Inc. 2696 Hazelwood Avenue. b. Manager Evans presented the staff report. C. Mayor Greavu called for persons who wished to be heard. The following residents voiced their opinions: Mrs. Barbara Love, 2661 Hazelwood (against) Mr. Ed O'Mara, 1706 Maryknoll (in favor) Mr. Steve Lukin, 1681 E. County Road C (against) Mr. Ron Erickson, 2673 Hazelwood (against) Mr. Jim Love, 2661 Hazelwood (against) Mrs. Christine Stone, 2727 Hazelwood (against) d. Mayor Greavu closed the public hearing. e. Councilmember Anderson introduced the following resolution and moved its adoption: 82- 10 -140 WHEREAS, a proceedings for the amendment of the Maplewood Comprehensive Municipal Plan entitled "Plan for Maplewood" has been initiated by Health Resources, - Inc. for a change of Planned Use from S C- Service Commercial to RB- Residential- - 5 - 10/7 Business, for the following generally described area: Except Hazelwood Park, all that property lying north of the south 510 feet in the Southwest quarter (SW 1/4) of the Southeast quarter (SE 1/4) of Section three (3), Township 29, Range 22. WHEREAS, the procedural history of the proposed amendment is as follows: 1. The City of Maplewood has a Comprehensive Municipal Plan entitled "Plan for Maplewood" adopted pursuant to the provisions of Minnesota Statutes, Chapter 670, Laws 1965 (the Municipal Planning Act, Minnesota Statutes Annotated, Sections 462.351 to 462.364 thereof); 2. Minnesota Statutes, Section 462.355, Subdivision 2 and 3 thereof, provide for amendment of the Comprehensive Municipal Plan or of any section thereof; 3. An amendment of the Comprehensive Municipal Plan has been proposed by Health Resources, Inc. and referred to the Maplewood Planning Commission, which held a public hearing on the 16th day of August, 1982 pursuant to Minnesota Statutes, 462.355, Subdivision 2 thereof, notice by mail and publication having been given, heard all who wished to be heard, considered all written and staff reports and analysis. WHEREAS, the Maplewood City Planning Commission, having considered the testimony of those present, all written submissions to it and staff reports, approved the amendment on the following findings of fact: 1. The present designation of SC- Service Commercial is overly intensive and out - of- character with adjacent planned uses. 2. The resultant density would not be inconsistent with the surrounding land uses. 3. The site is well suited for a seniors' residence. 4. Six of 39 acres of higher density residential land would be regained which had been lost in this neighborhood during the Plan Update process. NOW, THEREFORE, BE IT RESOLVED that the Maplewood City Council hereby certifies the above - described amendment to its Comprehensive Municipal Plan entitled "Plan for Maplewood." Seconded by Councilmember Maida. Ayes - all. Councilmember Bastian excused himself from the meeting at 7:50 P.M. F. PUBLIC HEARINGS 1. Commercial Development Revenue Note - Emerald Inn 7:00 P.M. a.. Mayor Greavu convened the meeting for a public hearing regarding the request of Emerald Inn of Maplewood for a $1,100,000 commercial development revenue note to construct a 66 unit economy motel on County Road D east of White Bear Avenue. b. Manager Evans presented the staff report. - 6 - 10/7 c. Mr. Fred Chute, Jr., President Chayton Corporation, the applicant, spoke on behalf of the proposal. d. Mayor Greavu called for proponents. None were heard. e. Mayor Greavu called for opponents. None were heard. f. Mayor Greavu closed the public hearing. g. Mayor Greavu introduced the following resolution and moved its adoption: 82 - 10 - 141A RESOLUTION RECITING A PROPOSAL FOR A COMMERCIAL FACILITIES DEVELOPMENT PROJECT GIVING PRELIMINARY APPROVAL TO THE PROJECT PURSUANT TO THE MINNESOTA MUNICIPAL INDUSTRIAL DEVELOPMENT ACT AUTHORIZING THE SUBMISSION OF AN APPLICATION FOR APPROVAL OF SAID PROJECT TO THE COMMISSIONER OF ENERGY, PLANNING AND DEVELOPMENT OF THE STATE OF MINNESOTA - AND AUTHORIZING THE PREPARATION OF NECESSARY DOCUMENTS AND MATERIALS IN CONNECTION WITH SAID PROJECT WHEREAS, (a) The purpose of Chapter 474, Minnesota Statutes, known as the Minnesota Municipal Industrial Development Act (the "Act ") as found and determined by the legislature is to promote the welfare of the state by the active attraction and encouragement and development of economi- cally sound industry and commerce to prevent so far as possible the emergence of blighted and marginal lands and areas of chronic unemployment; (b) Factors necessitating the active promotion and development of economically sound industry and commerce are the increasing concentration of population in the metropolitan areas and the rapidly rising increase in the amount and cost of governmental services required to meet the needs of the increased population and the need for development of land use which will provide an adequate tax base to finance these increased costs and access to employment opportunities for such population; (c) The City Council of the City of Maplewood (the "City ") has received from Judson Dayton, Duncan Dayton, Fred Chute, Dr. Edward Chute, David Chute and Arthur B. Johnson, who propose to form a corporation or partnership (the "Company ") a proposal that the City undertake to finance a Project hereinafter described, through the issuance of revenue bonds in the form of a single debt instrument ( "the Note ") pursuant to the Act; - 7 - 10/7 (d) The City desires to facilitate the selec- tive development of the community, retain and improve the tax base and help to provide the range of services and employment opportunities required by the population; and the Project will assist the City in achieving those objectives. The Project will help to increase assessed valuation of the City and help maintain a positive relationship between assessed valuation and debt and enhance the image and reputation of the community; (e) Company is currently engaged in the business of real estate development. The Project to be financed by the Note is an Emerald Inn hotel facility to be located in the City and consists of the acquisition of land and the construction of buildings and improvements thereon and the installation of equipment therein, and will result in the em- ployment of 25 additional persons to work within the new facilities; (f) The City has been advised by representa- tives of Company that conventional, commercial financing to pay the capital cost of the Project is available only on a limited basis and at such high costs of borrowing that the economic feasibility of operating the Project would be significantly reduced, but Company has also advised this Council that with the aid of municipal financing, and its resulting low borrowing cost, the Project is economically more feasible; (g) A public hearing, which was a rehearing on the Project, was held on October 7, 1982, after notice was published, and materials made available for public inspection at the office of the City Clerk, all as required by Minnesota Statutes, Section 474.01, Subdivision 7b at which public rehearing all those appearing who so desired to speak were heard; (h) No public official of the City has either a direct or indirect financial interest in the Project nor will any public official either directly or indirectly benefit financially from the Project. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Maplewood, Minnesota, as follows: 1. The Council hereby gives preliminary approval to the proposal of Company that the City undertake the Project pursuant to the Minnesota Municipal Industrial Development Act (Chapter 474, Minnesota Statutes), consisting of the acqui- sition, construction and equipping of facilities within the City pursuant to Company's specifications suitable for the operations described above and to a revenue agreement between the City and Company upon such terms and conditions with provisions for revision from time to time as necessary, so as to produce income and revenues sufficient to pay, when due, the principal of and interest on the Note in the total principal - 8 - 10/7 amount of approximately $1,500,000 to be issued pursuant to the Act to finance the acquisition, construction and equipping of the Project; and said agreement may also provide for the entire interest of Company therein to be mortgaged to the purchaser of the Note; and the City hereby undertakes preliminarily to issue its Note in accordance with such terms and conditions; 2. On the basis of information available to this Council it appears, and the Council hereby finds, that the Project constitutes properties, real and personal, used or useful in connection with one or more revenue producing enterprises engaged in any business within the meaning of Subdivision lb of Section 474.02 of the Act; that the Project furthers the purposes stated in Section 474.01, Minnesota Statutes; that the availability of the financing under the Act and willingness of the City to furnish such financing will be a substantial 'inducement to Company to undertake the Project, and that the effect of the Project, if undertaken, will be to encourage the development of economically sound industry and commerce, to assist in the prevention of the emergence of blighted and marginal land, to help prevent chronic unemployment, to help the City retain and improve the tax base and to provide the range of service and employment opportunities required by the population, to help prevent the movement of talented and educated persons out of the state and to areas within the State where their services may not be as effectively used, to promote more intensive development and use of land within the City and eventually to increase the tax base of the community; 3. The Project is hereby given preliminary approval by the City subject to the approval of the Project by the Commissioner of Energy, Planning and Development (the "Commissioner "), and subject to final approval by this Council, Company, and the purchaser of the Note as to the ultimate details of the financing of the Project; 4. In accordance with Subdivision 7a of Section 474.01 Minnesota Statutes, the Mayor of the City is hereby authorized and directed to submit the proposal for the Project to the Commissioner requesting his approval, and other officers, employees and agents of the City are hereby authorized to provide the Commissioner with such preliminary information as he may require; 5. Company has agreed and it is hereby determined that any and all costs incurred by the City in connection with the financing of the Project whether or not the Project is carried to completion and whether or not approved by the Commissioner will be paid by Company; 6. Briggs and Morgan, Professional Association, acting as bond counsel, is authorized to assist in the preparation and review of necessary documents relating to the Project, to consult with the City Attorney, Company and the purchaser of the Note as to the,maturities, interest rates and other terms and provisions of the Note and as to the covenants and other provisions of the necessary documents and to submit such documents to the Council for final approval; - 9 - 10/7 7. Nothing in this resolution or in the documents pre- pared pursuant hereto shall authorize the expenditure of any municipal funds on the Project other than the revenues derived _from the Project or otherwise granted to the City for this purpose. The Note shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property or funds of the City except the revenue and proceeds pledged to the payment thereof, nor shall the City be subject to any liability thereon. The holder of the Note shall never have the right to compel any exercise of the taxing power of the City to pay the outstanding principal on the Note or the interest thereon, or to enforce payment thereof against any property of the City. The Note shall recite in substance that the Note including interest thereon, is payable solely from the revenue and proceeds pledged to the payment thereof. The Note shall not constitute a debt of the City within the meaning of any constitutional or statutory limitation; 8. In anticipation of the approval by the Commissioner and the issuance of the Note to finance all or a portion of the Project, and in order that completion of the Project will not be unduly delayed when approved, Company is hereby authorized to make such expenditures and advances toward payment of that portion of the costs of the Project as Company considers necessary, including the use of interim, short -term financing, subject to reimbursement from the proceeds of the Note if and when delivered but otherwise without liability on the part of the City; 9. If construction of the Project is not started within one year from the date hereof, this resolution shall thereafter have no force and effect and the preliminary approval herein granted is withdrawn; 10. The actions of the City Clerk in causing publication of notice of the public rehearing, describing the general nature of the Project and estimating the principal amount of the Note to be issued to finance the Project and in preparing a draft of the proposed application to the Commissioner, for approval of the Project, which has been available for inspection by the public at the City Hall from and after the publication of notice of the hearing, are in all respects ratified and confirmed. Seconded by Councilmember Maida. Ayes — all. h. Mayor Greavu introduced the following resolution and moved its adoption: 82 — 10 — 141E RESOLVED, by the City Council of the City of Maplewood, as follows: ARTICLE ONE DEFINITIONS, LEGAL AUTHORIZATION AND FINDINGS 101. Definitions. — 10 - 7.0/7 The terms used herein, unless the context hereof shall require otherwise shall have the following meanings, and any other terms defined in the Loan Agreement shall have the same meanings when used herein as assigned to them in the Loan Agreement unless the context or use thereof indicates another or different meaning or intent. Act: the Minnesota Municipal Industrial Development Act, Minnesota Statutes, Chapter 474, as amended; Assignment of Rents and Leases: the agreement to be executed by the Borrower assigning all the rents, issues, profits and leases derived from the Project to the Lender to secure the repayment of the Note and interest thereon; Bond Counsel: the firm of Briggs and Morgan, Professional Association, of St. Paul and Minneapolis, Minnesota, or any other firm of nationally recognized bond counsel, and any opinion of Bond Counsel shall be a written opinion signed by such Bond Counsel; Borrower: Emerald Inn of Maplewood, a Minnesota general partnership, its successors, assigns, and any surviving, resulting or transferee business entity which may assume its obligations under the Loan Agreement; City: the City of Maplewood, Minnesota, its successors and assigns; Construction Fund: the fund established by the City pursuant to this Resolution and into -the Proceeds Account of the Construction Fund the proceeds of the Note will be deposited; Construction Loan Agreement: the agreement to be executed by the City, the Borrower and the Lender, relating to the dis- bursement and payment of Project Costs for the acquisition, construction and installation of the Project; Guarantors: [to come] Guaranty: collectively, the guaranties of the payment of, among other things, the principal of, premium, if any, and interest on the Note to be executed by the Guarantors as of the date of this Agreement; Improvements: the structures and other improvements, including any tangible personal property, to be constructed or installed by the Borrower on the.Land in accordance with the Plans and Specifications; Land: the real property and any other easements and rights described in Exhibit A attached to the Loan Agreement; Lender: First National Bank of Minneapolis, in Minneapolis, Minnesota, its successors and assigns; - 11 - 10/7 Loan Agreement: the agreement to be executed by the City and the Borrower, providing for the issuance of the Note and the loan of the proceeds thereof to the Borrower, including any amendments or supplements thereto made in accordance with its provisions; Mortgage: the Combination Mortgage, Security Agreement and Fixture Financing Statement between the Borrower as mortgagor, to the Lender, as mortgagee, securing payment of the Note and interest thereon including any mortgage supplemental thereto entered into in accordance with the provisions thereof; Note: the $1,100,000 Commercial Development Revenue Note of 1982, (Emerald Inn of Maplewood Project) to be issued by the City pursuant to this Resolution; Note Register: the records kept by the City Clerk to provide or the registration of transfer of ownership of the Note; Plans and Specifications: the plans and specifications for the construction and installation of the Improvements on the Land, which are approved by the Lender, together with such modifications thereof and additions thereto as are reasonably determined by the Borrower to be necessary or desirable for the completion of the Improvements and are approved by the Lender; Pledge Agreement: the agreement to be executed by the City and the Lender pledging and assigning the Loan Agreement to the Lender; Principal Balance: so much of the principal sum on the Note as remains unpaid at any time; Project: the Land and Improvements as they may at any time exist; Project Costs: the total of all "Construction Costs" and "Loan and Carrying charges," as those terms are defined in the Loan Agreement; Resolution: this Resolution of the City adopted October 7, 1982, authorizing the issuance of the Note, together with any supplement or amendment thereto. All references in this instrument to designated "Articles," "Sections" and other subdivisions are to the desig- nated Articles, Sections and subdivisions of this resolution as originally adopted. The words "herein," "hereof" and "hereund- er" and other words of similar import refer to this Resolution as a whole not to any particular Article, Section or subdivis- ion. 1 -2. Legal Authorization. The City is a political subdivision of the State of Minnesota and is authorized under the Act to initiate the revenue producing project herein referred to, and to issue and sell the Note for the purpose, in the manner and upon the terms and conditions set forth in the Act and in this Resolution. 12 - 10/7 1 -3. Findings. The City Council has heretofore determined, and does hereby determine, as follows: (1) The City is authorized by the Act to enter into a Loan Agreement for the public purposes expressed in the Act; (2) The City has made the necessary arrangements with the Borrower for the establishment within the City of a Project consisting of certain property all as more fully described in the Loan Agreement and which will be of the character and accomplish the purposes provided by the Act, and the City has by this Resolution authorized the Project and the execution of _the Loan Agreement, the Pledge Agreement, the Note and the Construction Loan Agreement, which documents specify certain terms and conditions of the acquisition and financing the Project; (3) in authorizing the Project the City's purpose is, and in its judgment the effect thereof will be, to promote the pub- lic welfare by: the promotion of tourism in the state, the attraction, encouragement and development of economically sound industry and commerce so as to prevent, so far as possible,-the emergence of blighted and marginal lands and areas of chronic unemployment; the development of revenue - producing enterprises to use the available resources of the community, in order to retain the benefit of the community's existing investment in educational and public service facilities; the halting of the movement of talented, educated personnel of all ages to other areas and thus preserving the economic and human resources needed as a base for providing governmental services and facil- ities; the provision of accessible employment opportunities for residents in the area; the expansion of an adequate tax base to finance the increase in the amount and cost of governmental services, including educational services for the school district serving the community in which the Project is situated; (4) the amount estimated to be necessary to partially finance the Project Costs, including the costs and estimated. costs permitted by Section 474.05 of the Act, will require the issuance of the Note in the aggregate principal amount of $1,100,000 as hereinafter provided; (5) it is desirable, feasible and consistent with the objects and purposes of the Act to issue the Note, for the purpose of financing the Project; (6) the Note and the interest accruing thereon do not constitute an indebtedness of the City within the meaning of any constitutional or statutory limitation and do not consti- tute or give rise to a pecuniary liability or a charge against the general credit or taxing powers of the City and neither the full faith and credit nor the taxing powers of the City are pledged for the payment of the Note or interest thereon; and - 13 - 10/7 (7) the Note is an industrial development bond within the meaning of Section 103(b) of the Internal Revenue Code and is to be issued within the exemption provided under subparagraph (D) of Section 103(b)(6) of the Code with respect to an issue of $10,000,000 or less; provided that nothing herein shall prevent the City from hereafter qualifying the Note under a different exemption if, and to the extent, such exemption is permitted by law and consistent with the objects and purposes of the Project. 1 -4. Authorization and Ratification of Project. The City has heretofore and does hereby authorize the Borrower, in accordance with the provisions of Section 474.03(7) of the Act and subject to the terms and conditions set forth in the Construction Loan Agreement, to provide for the acquisition, construction and installation of the Project by such means as shall be available to the Borrower and in the manner determined by the Borrower, and without advertisement for bids as may be required for the construction and acquisi- tion of municipal facilities; and the City hereby ratifies, affirms, and approves all actions heretofore taken by the Borrower consistent with and in anticipation of such authority and in compliance with the Plans and Specifications. ARTICLE TWO NOTE 2 -1. Authorized Amount and Form of Note. The Note issued pursuant to this Resolution shall be in substantially the form set forth herein, with such appropri- ate variations, omissions and insertions as are permitted or required by this Resolution, and in accordance with the further provisions hereof; and the total principal amount of the Note that may be outstanding hereunder is expressly limited to $1,100,000 unless a duplicate Note is issued pursuant to Sec- tion 2 -6. The Note shall be in substantially the following form: UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF RAMSEY CITY OF MAPLEWOOD Commercial Development Revenue Note of 1982 (Emerald Inn of Maplewood Project) $1,100,000 - 14 - 10/7 FOR VALUE RECEIVED the CITY OF MAPLEWOOD, Ramsey County, Minnesota (the "City "), hereby promises to pay to the order of First National Bank of Minneapolis (the "Lender "), its successors or registered assigns (the Lender and any such successor or registered assignee being also sometimes hereinafter referred to as the "Holder "), from the source and in the manner hereinafter provided, the principal sum of ONE MILLION ONE HUNDRED THOUSAND DOLLARS ($1,100,000) or so much thereof as remains unpaid from time to time (the "Principal Balance "), with interest thereon at the rate specified in paragraphs 1(a) and 1(b) hereof (the "Tax Exempt Rate ") or at such higher rate as provided in paragraph 1(c) hereof (the "Taxable Rate "), in any coin or currency which at the time or times of payment is legal tender for the payment of public or private debts in the United States of America, in accordance with the terms hereinafter set forth. 1. (a) From and after the date hereof through and including September 1, 1983, interest only shall be paid at the rate of 8 per annum. Interest shall accrue from the date hereof and shall be payable on the first day of the calendar month next succeeding the date hereof and on the first day of each and every month thereafter through and including September 1, 1983. (b) Commencing on October 1, 1983 and on the first day of each calendar month thereafter, the Principal Balance shall be amortized in equal consecutive monthly installments of principal and interest the amount of each of which is to be calculated on an assumed thirty -year amortization with interest from September 1, 1983 at the rate of % per annum and a final installment on September 1, 2012 (the "Final Maturity Date ") which shall be equal to the unpaid Principal Balance and accrued interest thereon. Any payment shall be applied first to accrued interest and thereafter to reduction of the Principal Balance. (c)(i) In the event that the interest on this Note shall become subject to federal income taxation pursuant to a Determination of Taxability (as hereinafter defined), the interest rate on this Note shall be increased, retroactively effective from and after the Date of Taxability (as hereinafter defined) to % per annum (the "Taxable Rate "). The City shall immediately upon demand pay to the Holder and to each prior Holder affected by such Determination of Taxability an amount equal to the amount by which the interest accrued retroactively at such increased rate from the Date of Taxability to the date of payment exceeds the amount of interest actually accrued and paid to the Holder and any such prior Holder during said period. (Such obligation of the City shall survive the payment in full of the principal amount of this Note). Commencing on the first day of the month next following the date of payment of such additional interest and continuing on the first day of each month thereafter (unless the Holder shall accelerate the maturity of the Note pursuant to clause (ii) of this paragraph (c)), this Note shall be payable as follows: - 15 - 10/7 (A) if amortization of the Principal Balance had not theretofore commenced under paragraph (b) hereof, the monthly payments of interest only hereunder shall be increased to reflect the accrual of interest at the Taxable Rate and the monthly installments of principal and interest payable commencing with the October 1, 1983 payment shall be recomputed on the basis of the Taxable Rate on an assumed thirty year amortization; or (B) if amortization of the Principal Balance had theretofore commenced under paragraph (b) hereof, the monthly installments of principal and interest payable commencing with the next succeeding payment shall be recomputed on the basis of the,T4xable Rate and amortization over the remaining portion of the original assumed amortization. (ii) Upon a Determination of Taxability, the Holder may declare the entire Principal Balance of this Note together with accrued interest thereon at such retroactively increased Taxable Rate to be immediately due and payable, plus the prepayment premium, calculated in accordance with paragraph 8 hereof. (iii) The Holder shall give notice, as soon as practicable, to the Borrower of any Notice of Taxability, as hereinafter defined, received by the Holder and permit the Borrower to contest, litigate or appeal the same at its sole expense; provided that any such contest, litigation or appeal is, in the reasonable opinion of the Holder, being undertaken and carried forward in good faith, diligently and with reason- able dispatch. In the event any such contest, litigation or appeal is undertaken, the increased interest provided in paragraph (b)(i) shall, nevertheless, be payable to the Holder and shall be held by the Holder in escrow (without paying interest thereon) pending final disposition of such contest, litigation or appeal, provided that the Borrower shall indemnify and hold harmless the Holder and each prior Holder from any and all penalties, interest or other liabilities which they may incur on account of such contest, litigation or appeal. (iv) The terms "Determination of Taxability, "Date of Taxability" and "Notice of Taxability" shall have the meanings ascribed to such terms in the Loan Agreement, dated the date hereof (the "Loan Agreement "), between the City and Tanners Lake Partners (the "Borrower "). 2. In any event, the payments hereunder shall be sufficient to pay all principal and interest due, as such . principal and interest becomes due, and to pay any premium or - 16 - 10/7 penalty, at maturity, upon redemption, or otherwise. Interest shall be computed on the basis of a 360 day year, but charged for the actual number of days elapsed. 3. Principal and interest and any premium due hereunder shall be payable at the principal office of the Lender, or at such other place as the Holder may designate in writing. 4. This Note is issued by the City to provide funds for a Project, as defined in Section 474.02, Subdivisions lb, Minnesota Statutes, consisting of the acquisition, construction and equipping of an Emerald Inn Motel, pursuant to the Loan Agreement, and this Note is further issued pursuant to and in full compliance with the Constitution and laws of the State of Minnesota, particularly Chapter 474, Minnesota Statutes, and pursuant to a resolution of the City Council duly adopted on September 13, 1982 (the "Resolution "). 5. This Note is secured by a Pledge Agreement of even date herewith by the City to the Lender (the "Pledge Agreement "), a Combination Mortgage, Security Agreement and Fixture Financing Statement, of even date herewith between the Borrower as mortgagor, and the Lender as mortgagee (the "Mortgage ") by an Assignment of Rents and Leases, of even date herewith, from the Borrower to the Lender (the "Assignment of Rents and Leases ") and Guaranties from [to coarse] to the Lender collectively, the Guaranty The proceeds of this Note shall be placed in the Proceeds Account of the Construction Fund established pursuant to the Resolution and the Construction Loan Agreement (hereinafter referred to) and disbursement of the proceeds of this Note from the Construction Fund is subject to the terms and conditions of a Construction Loan Agreement of even date herewith among the Lender, the City and the Borrower (the "Construction Loan Agreement "). 6. The Holder may extend the times of payments of interest and /or principal of or any penalty or premium due on this Note, including the date of the Final Maturity Date, to the extent permitted by law, without notice to or consent of any party liable hereon and without releasing any such party. However, in no event may the Final Maturity Date be extended beyond thirty (30) years from the date hereof. 7. The Borrower may prepay the Principal Balance in whole or in part in increments of $100,000 on the first day of any month upon at least 30 days advance written notice to the Holder (or such lesser period of notice as the Holder may approve) and upon payment of an amount equal to the principal amount being so prepaid, plus accrued interest hereon to the date of prepayment, plus the prepayment premium calculated in accordance with paragraph 8 hereof. This Note is also subject to mandatory prepayment in whole or in part pursuant to Section - 17 - 10/7 3.1 of the Construction Loan Agreement in the amount of any sums remainin in the P oceeds Account of the Cons ruction Fund at the Completion Date as such terms are defined in the Construction Loan Agreement), in which event a prepayment premium shall also be payable in accordance with paragraph 8 hereof, and the time of such prepayment may not be extended pursuant to paragraph 6 hereof. Upon the occurrence of certain "Events of Default" under the Construction Loan Agreement, the Loan Agreement and /or under the Mortgage, and as provided in paragraph 12 hereof, the Holder may declare the Principal Balance and accrued interest on this Note to be immediately due and payable (any such action and any similar action pursuant to paragraph l(c)(ii) hereof being hereinafter referred to as an "acceleration" of this Note), in which event a prepayment premium shall also be payable in accordance with paragraph 8 hereof. Upon the occurrence of certain events of damage, destruction or condemnation, the Holder may, as provided in the Mortgage, apply the net proceeds of any insurance or condem- nation award to the prepayment, in whole or in part, of the Principal Balance in which event a prepayment premium may be payable in accordance with paragraph 8 hereof. This Note may be called for redemption and prepayment, in whole, at the option of the Holder, on October 1, 1992 (or at any time within six months following October 1, 1992), on October 1, 1997, on September 1, 2002 and on October 1, 2007, (the "Call Dates "), upon at least thirty (30) days advance written notice to the Borrower (or such lesser period of notice as the Borrower may approve). The Borrower has the right under this Note on any Call Date of which the Holder has given the required notice, in lieu of redemption of this Note, upon five (5) days advance written notice prior to such Call Date, to purchase the Note from the Holder or give notice to the Holder that it has secured a purchaser for the Note. The Holder agrees, in lieu of redemption of this Note to sell the Note to the Borrower or.such purchaser on such Call Date at a purchase price equal to the Principal Balance and accrued interest. S. (a) If at the time of any prepayment on or prior to October 1, 1987 or acceleration of this Note occurring prior to October 1, 1987, the Borrower shall pay, together with the premium, if any, set forth in paragraph (b) hereof, an amount equal to 1 -1/2% of the amount of principal so prepaid. Not- withstanding the foregoing, no such prepayment premium shall be payable with respect to a prepayment made at the option of the Holder pursuant to Article Five of the Mortgage or Section 5.02 of the Loan Agreement, unless an Event of Default had occurred under the Loan Agreement, Construction Loan Agreement or the Mortgage and remains uncured at the time such prepayment is made. - 18 - 10/7 (b) If at the time of any prepayment or acceleration of this Note, occurring prior to October 7, 1992 the yield on U.S. Treasury securities (as published by the Federal Reserve Bank of New York) having a maturity date closest to October 1, 1992 (the "Government Yield "), as determined by the Holder as of the date of prepayment or acceleration, is less than % the Borrower shall pay a premium calculated as follows: a the amount of principal so prepaid shall be multiplied by (i) the amount by which $ exceeds the Government Yield as of the date of prepayment or acceleration, times (ii) a fraction, the numerator of which is the number of days remaining to October 1, 1992 and the denominator of which is 360, (b) the resulting product shall then be divided by the number of whole months then remaining to October 1, 1992 yielding a quotient (the "Quotient "), (c) the amount of the prepayment premium payable under this paragraph shall be the present value on the date of prepayment or acceleration (using the Government Yield as of the date of prepayment or acceleration as the discount factor) of a stream of equal monthly payments in number equal to the number of whole months remaining to October 1, 1992, with the amount of each such hypothetical monthly payment equal to the Quotient and with the first payment payable on the date of prepayment or acceleration. Notwithstanding the foregoing, no such prepayment premium shall be payable with respect to a prepayment made at the option of the Holder pursuant to paragraph l(c)(ii) hereof or pursuant to Article Five of the Mortgage or Section 5.02 of the Loan Agreement unless an Event of Default had occurred under the Loan Agreement, Construction Loan Agreement, or the Mortgage and remains uncured at the time such prepayment is made. 9. The payments due under paragraph 1 hereof shall continue to be due and payable in full until the entire Principal Balance and accrued interest due on this Note have been paid regardless of any partial prepayment made hereunder. 10. As provided in the Resolution and subject to certain limitations set forth therein, thip Note is transfer- able upon the books of the City at the office of the City Manager by the Holder in person or by his agent duly authorized in writing, at the Holder's expense, upon surrender hereof together with a written instrument of transfer satisfactory to the City Clerk duly executed by the Holder or his duly authorized agent. Upon such transfer the City Clerk will note the date of registration and the name and address of the new registered Holder in the registration blank appearing below. The City may deem and treat the person in whose name the Note is last registered upon the books of the City with such registration noted on the Note, as the absolute owner hereof, whether or not overdue, for the purpose of receiving payment of or on the account of the Principal Balance, redemption price or interest and for all other purposes, and all such payments so made to the Holder or upon his order shall be valid and effective to satisfy and discharge the liability upon the Note to the extent of the sum or sums so paid, and the City shall not be affected by any notice to the contrary. - 19 - 10/7 11. This Note and interest hereon and any premium due hereunder are payable solely from the revenues and proceeds under the Loan Agreement pledged to the payment thereof pursuant to the Pledge Agreement, except as the same may otherwise be payable in accordance with, the Mortgage, the Guaranty and the Assignment of Rents and Leases, and do not constitute a debt of the City within the meaning of any constitutional or statutory limitation, are not payable from or a charge upon any funds other than the revenues and proceeds pledged to the payment thereof, and do not give rise to a pecuniary liability of the City or, to the extent permitted by law, of any of its officers, agents or employees, and no holder of this Note shall ever have the right to compel any exercise of the taxing power of the City to pay this Note or the interest thereon, or to enforce payment thereof against any property of the City, and this Note does not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the City, and the agreement of the City to perform or cause the performance of the covenants and other provisions herein referred to shall be subject at all times to the availability of revenues or other funds furnished for such purpose in accordance with the Loan Agreement, sufficient to pay all costs of such performance or the enforcement thereof. 12. It is agreed that time is of the essence of this Note. If the City defaults in the payment when due of any installment of principal or interest or any premium or penalty due hereunder and if said default shall have continued for a period of five (5) days, or if an Event of Default shall occur as set forth in the Mortgage, the Construction Loan Agreement or the Loan Agreement, then the Holder shall have the right and option to declare the Principal Balance, and accrued interest thereon, together with the premium, if any, payable under paragraph 8 hereof, immediately due and payable but solely from the sources specified in paragraph 11 hereof. Failure to exercise such option at any time shall not constitute a waiver of the right to exercise the same at any subsequent time. 13. The remedies of the Holder, as provided herein and in the Mortgage, the Assignment of Rents and Leases, the Guaranty, the Loan Agreement and the Construction Loan Agreement, are not exclusive and shall be cumulative and concurrent and may be pursued singly, successively or together, at the sole discretion of the Holder, and may be exercised as often as occasion therefor shall occur; and the failure to exercise any such right or remedy shall in no event be construed as a waiver or release thereof. 14. The Holder shall not be deemed, by any act of omission or commission, to have waived any of its rights or remedies hereunder unless such waiver is in writing and signed by the Holder, and then only to the extent specifically set forth in the writing. A waiver with reference to one event shall not be construed as continuing or as a bar to or waiver of any right or remedy as to a subsequent event. - 20 - 10/7 IT IS HEREBY CERTIFIED AND RECITED that all conditions, acts and things req- uired to exist, happen and be performed precedent to or in the issuance of this Note do exist, have happened and have been performed in regular and due form as required by law. Seconded by Councilmember Maida. Ayes - all. 2. Rezoning - 2669 and 2677 E. 7th Street 7:15 P.M. a. Mayor Greavu convened the meeting for a public hearing regarding the rezoning of two lots at 2669 and 2677 E. Seventh Street from M -1 -Light Manufacturing to R -1 Residence District. b. Manager Evans presented the staff report. C. Mayor Greavu called for proponents. None were heard. d. Mayor Greavu called for opponents. None were heard. e. Mayor Greavu closed the public hearing. I. Councilmember Juker introduced the following resolution and moved its adoption: H2 -10 -142 WHEREAS, a rezoning procedure has been initiated by the City Council for a zone change from M -1, light manufacturing to R -1, residence district (single dwelling) for the following described property: Lots 19 and 20, Block 4, Midvale Acres Such above property being also known and numbered as Number 2669 and 2677 E. Seventh Street, Maplewood, Ramsey County, Minnesota; WHEREAS, the procedural history of this rezoning procedure is as follows: 1 -. That a rezoning procedure has been initiated by the City Council, pursuant to Chapter 915 of the Maplewood Code; 2. That said rezoning procedure was referred to and reviewed by the Maplewood City Planning Commission on the 20th day of September, 1982, at which time said Planning Commission recommended to the City Council that said rezone procedure be approved; 3. That the Maplewood City Council held a public hearing to consider the rezoning procedure, notice thereof having been published and mailed pursuant to law; and 4. That all persons present at said hearing were given an opportunity to be heard and /or present written statements, and the Council considered reports and recommendations of the City Staff and Planning Commission. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF MAPLEWOOD, RAMSEY County, Minnesota that the above - described rezoning be granted on the basis of the following findings of fact: 1. The rezoning is consistent with the Land Use Plana - 21 - 10/7 2. The property is used for single dwellings, rather than light manufacturing. Seconded by Councilmember Maida. Ayes - all. 3. Code Amendment -- BC M 7 :30 P.M. a. Mayor Greavu convened the meeting for a public hearing regarding a proposal to amend the BC (M) Business Commercial - Modified zone to exclude restaurants and places of amusement recreation or assembly other than a theatre. b. Manager Evans presented the staff report. C. Mayor Greavu called for proponents. None were heard. d. Mayor Greavu called for opponents. None were heard. e. Mayor Greavu closed the public hearing. f. Mayor Greavu moved first reading of an ordinance amending the BC (M) Business__ Commercial Modified zone to clarify the type of restaurant and recreation uses that would be prohibited. -� Seconded by Councilmember Maida. Ayes - all. G. AWARD OF BIDS None. I.—UNFINISHED BUSINESS 1. Planning Fees a. Manager Evans presented the staff report. b. Councilmember Anderson introduced the following ordinance and moved its adoption: ORDINANCE NO. 524 PLANNING FEES Section 1. The Zoning Code of the City of Maplewood is hereby amended to add Chapter 36 -26. 36 -26 Fees. The following nonrefundable application fees shall be required: Zone Change Special Use Permit Planned Unit Development, Special Exception Comprehensive Plan Amendment Variances: R -1 all other districts Vacations Lot Divisons Preliminary Plat Home Occupation Permit $125.00 125.00 125.00 50.00 125.00 35.00 75.00 40.00 25.00 for each lot created 5.00 for each Lot, with a minimum of $50.00 and a maximum of $175. 35.00 for the initial permit and 10.00 for an annual renewal. - 22 - 10/7 Section 2. Section 818.040 (c) of the sign code is amended as follows. 36.258 (c). Permit Fees: (1) A sign permit fee (except for billboards) shall be paid in accordance with the following schedule: Square Feet Fee 1 — 10 $ 5.00 11 — 25 10.00 26 — 50 20.00 51 — 100 50.00 over 100 100..00 -- (2) the fee for billboards shall be $7.00 for the first five square feet, plus 400 for each additional square foot. Section 3. This ordinance shall take effect after its passage and publication. Seconded by Councilmember Maida. Ayes — all. 2. City Council /Planning Committee Meeting. a. Manager Evans stated the City Council, on September 13, decided to set a date on October 7 for a study meeting with the Planning Commission and staff to discuss the proposed environmental protection ordinance and the proposed ordinance regulating setbacks to R -1 zones. b. Council set a Staff — Council work session at 7:00 P.M. and a meeting with the Planning Commission at 7:30 P.M. on Thursday, October 21, 1982. I. NEW BUSINESS None. J. VISITOR PRESENTATIONS None. K. COUNCIL PRESENTATIONS 1. Volunteerism a. Councilmember Maida questioned if Maplewood had an organized volunteer group. She had attended a Volunteer for Minnesota Kick Off Conference and feels Maplewood could benefit from an organized group. There will be planning and training sessions available. The City can apply to be selected for the pilot program. b. Manager Evans was instructed to investigate the volunteer program. 2. Staff — Council a. Councilmember Juker moved that the Council and Manager meet with the Staff individually and the first such meeting be Wednesday, October 13, 1982, 7:00 A at Denny's Restaurant with Police Chief ICen Collins. e Seconded by Councilmember Maida. Ayes — all. — 23 — 10/7 L. ADMINISTRATIVE PRESENTATIONS None. M. ADJOURNMENT 8:09 P.M. za,S�-�f -G,- - City Clerk - 24 - 10/7