HomeMy WebLinkAbout10-26-1998 MINUTES OF MAPLEWOOD CITY COUNCIL
7:00 P.M., Monday, October 26, 1998
Council Chambers, Municipal Building
Meeting No. 98-23
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 7:00 P.M. by Mayor Rossbach.
B. PLEDGE OF ALLEGIANCE
C. ROLL CALL:
George F. Rossbach, Mayor Present
Sherry Allenspach, Councilmember Present
Dale H. Carlson, Councilmember Absent
Kevin Kittridge, Councilmember Present
Marvin C. Koppen, Councilmember Present
D. APPROVAL OF MINUTES:
Councilmember Kittridge moved to approve the minutes of Meeting No. 98-22 (October 12. 1998) as presented.
Seconded by Councilmember Allenspach Ayes -all
E. APPROVAL OF AGENDA:
Mayor Rossbach moved to approve the Agenda as amended.
K.S. Winter Sand Approval Amendment
M.2. Holiday Gas Station
N.1. Closed Session to Discuss Litigation
Seconded by Councilmember Allenspach Ayes -all
F. APPOINTMENTS/PRESENTATIONS
NONE
G. CONSENT AGENDA:
Councilmember Allenspach moved to approve the Consent Agenda as recommended.
Seconded by Councilmember Kittridge Ayes -all
1. Approval of Claims
Approved the following claims:
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ACCOUNTS PAYABLE: $ 78,751.88 Checks #7651-#7666 Dated 10/2/98 thru 10/9/98
$ 144,527.37 Checks #40168-#40305 Dated 10/13/98
$ 5,248.44 Checks #7667-#7669 Dated 10/13/98 thru 10/15/98
$ 576,608.22 Checks #40314-#40446 Dated 10/20/98
$ 805,135.91 Total Accounts Payable
PAYROLL: $ 396,915.33 Payroll Checks and Direct Deposits Dated 10/16/98
$ 48,410.67 Payroll Deduction Checks Dated 10/16/98
$ 445,326.00 Total Payroll
$1,250,461.91 GRAND TOTAL
2. Donation from Mervyn's California
Accepted a $500 donation from Mervyn's California to be used to help defray the operating costs of
the Maplewood Community Service Center.
3. Tax-Exempt Financing -Maple Knoll Apartments (1800-1926 Mesabi Avenue)
Approved the following resolution approving the tax exempt financing resolution approving a $3.525
million in tax-exempt financing for the Maple Knoll Apartments at 1800-1926 Mesabi Avenue with
the following conditions:
1. Mr. Maple and Governmental and Educational Assistance Corporation (GEAC) shall meet the
city's zoning, design and tax exempt financing requirements.
2. Mr. Maple and Governmental and Educational Assistance Corporation shall pay Maplewood
an administrative fee of $28,600 at the bond closing.
3. Any exterior changes to the site will be subject to city staff and possibly CDRB or City
Council review and approval. Any such changes will be subject to the applicable review process
and procedures.
98-10-104
RESOLUTION
RESOLUTION AUTHORIZING THE ISSUANCE OF MULTIFAMILY HOUSING REVENUE BONDS
(MAPLE KNOLL APARTMENTS PROJECT) SERIES 1998A, TAXABLE MULTIFAMILY
HOUSING REVENUE BONDS (MAPLE KNOLL APARTMENTS PROJECT) SERIES 1998B AND
SUBORDINATED MULTIFAMILY HOUSING REVENUE BONDS (MAPLE KNOLL APARTMENTS
PROJECT) SERIES 1998C, AND APPROVING AND AUTHORIZING THE EXECUTION OF
VARIOUS DOCUMENTS IN CONNECTION THEREWITH
WHEREAS, Maple Knoll Apartments -GEAC, LLC, a Minnesota limited liability company, in
which Governmental and Educational Assistance Corporation, an Arkansas non-profit corporation qualified to
do business in the State of Minnesota, is thee sole member (the `Borrower") has determined to acquire a certain
multifamily rental housing building located at 1880 Mesabi Avenue in the City of Maplewood, Minnesota (The
"Project'); and
WHEREAS, the Project shall continue to be leased to persons of low income pursuant to a Section 8
Housing Assistance Payments Contract ("HAP Contract') administered by the Minnesota developments for the
purpose of preserving low-income housing; and
WHEREAS, the Borrower has requested, and Issuer has determined that it is in the best interest of the
public health and welfare that the Issuer issue its Multifamily Housing Revenue Bonds (Maple Knoll
Apartments Project) Series 1998 A (the Series 1998A Bonds', its Taxable Multifamily Housing Revenue
Bonds (Maple Knoll Apartments Project) Series 1998 B (The "Series 1998B Bonds") and its Subordinated
Multifamily Housing Revenue Bonds (Maple Knoll Apartments Project) Series 1998C (the "Series 1998C
Bonds" and, together with the Series 1998A Bonds and the Series 1998 B Bonds, the "Bonds") in an aggregate
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principal amount not to exceed $3,525,000 in accordance with the provisions of the Act to provide funds to the
Borrower to (I) acquire the Project (ii) fund certain reserves; (iii) pay costs o issuance and related expenses; and
(iv) pay certain other costs as permitted in the hereinafter defined Loan Agreements and
WHEREAS, pursuant to Chapter 462C, the Issuer has adopted a housing finance program relating to
the issuance of the Bonds to finance the Project; and
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Maplewood as follows:
1. The following documents (including the exhibits referred to therein) have been submitted to the Issuer
for approval:
a. The Trust Indenture, dated as of November 1, 1998 (the "Indenture")between the Issuer and U. S.
Bank Trust National Association, as trustee thereunder (the "Trustee");
b. A Loan Agreement dated as of November 1, 1998 (the "Loan Agreements by the between the
Borrower and the Issuer;
c. A Combination Mortgage, Security Agreement, Assignment of Leases and Rents and Fixture
Financing Statement dated as of November 1, 1998 (the "First Mortgage") by the Borrower in favor
of the Issuer (to be assigned to the Trustee) for the benefit of the owners of the Series 1998 A Bonds
and the Series 1998 B Bonds assigning the interest in the ground lease and granting a first mortgage
lien against and security interest in the Project to secure the payment of principal of and interest on
the Series 1998 A Bonds and the Series 1998 B Bonds;
d. A Subordinated Combination Mortgage, Security Agreement, Assignment of Leases and Rents and
Fixture Financing Statement dated as of November 1, 1998 (the "Subordinate Mortgage") by the
Borrower in favor of the Issuer (to be assigned to the Trustee) for the benefit of the owners of the
Series 1998C Bonds assigning the interest in the ground lease and granting a second mortgage lien
against and security interest in the Project to secure the payment of principal of and interest on the
Series 1998C Bonds;
e. A Housing Regulatory Agreement, dated as of November 1, 1998 (the "Regulatory Agreement
by and between the Issuer, the Trustee and the Borrower;
f A Bond Purchase Agreement (the "Purchase Agreements") by and between the Issuer, the
Borrower and Miller & Schroeder Financial, Inc. (the "Underwriter") providing for the purchase of
the Bonds by the Underwriter; and
g. A Tad Regulatory Agreement, dated as of November 1, 1998 (the "Tax Regulatory Agreement
by and between the Borrower and the Trustee;
h. A for of Preliminary Official Statement (the "Preliminary Official Statement') describing the
Bonds, the Borrower, the Project and certain provisions of the Indenture, the Loan Agreement, the
Ground Lease and the Mortgages. The agreements described and referred to in paragraphs (a) through
(g) above shall hereinafter sometimes be referred to collectively as the "Agreements".
2. It is hereby found, determined and declared that:
a. The issuance of the Bonds in order to loan the proceeds thereof to the Borrower to finance the
acquisitions of the Project shall further the public purpose of the Act by assisting in the preservation
oflow-income housing in the City of Maplewood, all in accordance with the purposes and the
procedures of the Act;
b. It is desirable that the Series 1998A Bonds, the Series 1998B Bonds and the Series 1998C Bonds,
in the aggregate principal amounts not to exceed those set forth in paragraph 5 below, be issued by
the Issuer, on the terms set forth in the Indenture with maturities, redemption provisions, principal
amounts as between each maturity and interest rates as provided in the Indenture;
a The Project constitutes a "multifamily housing development' within the meaning of the Act and
will operated by the Borrower as a facility for occupancy by low income persons in conformity with
the HAP Contract and the Regulatory Agreement so long as any Bonds remain Outstanding;
d. The Bonds shall be special and limited revenue obligation of ;the Issuer and are not general or
moral obligations of the Issuer and are not secured by and do not constitute a lien, charge or
encumbrance, legal or equitable, against the full faith and credit of the Issuer, and the Bonds are not
payable from any of the Issuer's general funds, taxes, revenues or any other assets (except to the
extend of the Issuer's interest in the Loan Agreements and any other security expressly pledged to the
Bonds);
e. The payments required or provided for by the Agreements are intended to produce income and
revenues sufficient to provide for the payment when due of principal of, and interest on, the Bonds;
3. The Agreements, in substantially the forms of file with the Issuer on the date hereof, are hereby
approved. Such of the Agreements as needed to executed by the Issuer are hereby authorized and directed to be
executed and delivered in the name and on behalf of the Issuer by its Mayor and City Clerk upon execution
thereof by the other parties thereto, upon final approval of the form thereof by the Mayor and City Clerk. The
Bonds and the Agreements shall be executed and delivered as provided therein. Copies of all the documents
necessary for the consummation of the transactions described herein and in the Agreements shall be delivered,
filed and recorded as provided herein and in the Agreements.
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4. The forms and terms of the Agreements maybe varied prior to execution and delivery by the parties
thereto, provided that any such variance shall not be, in the opinion of the Mayor and City Clerk, materially
adverse to the interest of the Issuer. The execution and delivery of the Agreements as provided in the Section 4
shall be conclusive evidence of the determination that any such variance was not materially adverse to the
interest of the Issuer.
5. There shall be issued forthwith the Series 1998A Bonds, the Series 1998B Bonds and the Series 1998C
Bonds, in a combined aggregated principal amount not to exceed $3,525,000 substantially in the form set forth
in the Indenture and this resolution, the terms of which are for this purpose incorporated in this resolution and
made a part hereof as it fully set forth herein. The Bonds shall be dated as specified in the Indenture and shall
mature on the dates (subject to redemption on such earlier dates as provided in the Indenture) and be payable at
the rates, all determined as set forth in the Indenture and this resolution. The bonds shall bear interest at the
lowest rates at which such bonds maybe sold at par, as approved by the Mayor and City Clerk, provided,
however, that the Series 1998A Bonds shall have a net interest cost not exceeding 6.0% and the Series 1998C
Bonds shall have a net interest cost not exceeding 6.40%, and the Bonds shall have a final maturity not later
than October, 2011, or such shorter maturity as is necessary, in the opinion of Bond Counsel to comply with
federal tax law limitations. The Mayor and City Clerk are hereby authorized and directed, upon the request of
the Borrower, and with the advice of Bond Counsel, to determine the precise principal amount of each series of
Bonds to be issued. Execution and delivery of the Indenture shall conclusively evidence such determination.
6. All actions of the members, employees and staff of the Issuer heretofore taken in furtherance of the
Project and issuance of the Bonds are hereby approved, ratified and confirmed.
7. The sale of the Bonds to the Underwriter at the price set forth in the Purchase Agreement, plus accrued
interest, if any, is hereby approved, and the Bonds are hereby directed to be sold to the Underwriter, upon the
terms and conditions set forth in the Purchase Agreement. The Mayor and City Clerk of the Issuer are hereby
authorized and directed to prepare and execute by manual or facsimile signature the Bonds as described in the
Indenture and to deliver them to the Trustee for authentication and delivery to the Underwriter, together with a
certified copy of this resolution, and the other documents required by the Indenture.
8. The Issuer hereby consents to the distribution and the use by the Underwriter in connection with the
sale of the Bonds of an Official Statement in substantially the form of the Preliminary Official Statement, with
such modification and amendments as are appropriate, and ratifies distribution of the Preliminary Official
Statement in substantially the form on file with Issuer. The Preliminary Official Statement and the Official
Statement are the sole materials consented to by the Issuer for use in connection with the offer and sale of the
Bonds. The Issuer has not participated in the preparation of the Preliminary Official Statement or the Official
Statement and assumes no responsibility for the sufficiency, accuracy or completeness of any statement or
information contained therein.
9. The Mayor, City Clerk and other officers of the Issuer are authorized and directed to prepare and
furnish when the Bonds are issued, certified copies of all proceedings and records of the Issuer relating to the
Bonds and such other affidavits and certificates (including but not limited to those required by Bonds Counsel)
as may be require to show the facts relating to the legality, tax exemption and marketability of the Bonds as
such facts appear from the books and records in said officer's custody and control of as otherwise known to
them; and such certified copies, certificates and affidavits, including any heretofore furnished, shall constitute
representation of the Issuer as to the truth of all statements made by the Issuer and contained therein. "Such
officers are further authorized and directed to execute and deliver such collateral agreements, including, but not
limited to, assignment of any of the Agreements to the Trustee, as may be necessary or convenient in
connection with the issuance of the Bonds, the making of the loan to the borrower of the financing of the
Project.
10. In the event any of the officers of the Issuer authorized to execute documents of approve the final
forms thereof on behalf of the Issuer under this resolution shall for any reason be unable to do so, any member
of the City Council of the Issuer, is hereby directed and authorized to do so on behalf of the issuer, with th same
effect as if executed by the officer authorized to do so in this resolution.
Adopted this 26th day of October, 1998.
4. Non-Union Pay Plan Changes
Approved to amend the Non-union Pay Plan to incorporate the positions of Recreation Program
Manager, Public Works Coordinator, Recreation Program Coordinator II, and Fire Marshal I atthe
1998 Salary ranges listed above and to revise the title for Fire Marshal to Fire Marshal II.
5. Disposal of Surplus Property -Sanders
Declared eleven (11) dump truck tailgate sanders as surplus property and authorized disposal at state
auction.
10-26-98 4
6. Birmingham Storm Water, Project 95-12, Change Order No. 3 and Final Payment
Approved Change Order 3 in the amount of $2,642.85. Approved the following resolution to accept
Project 95-12 as complete and to authorize release of the final payment in the amount of $12,741.11
in the form of co-payments to the Ashback Construction Company.
98-10-105
RESOLUTION
DIRECTING MODIFICATION OF EXISTING CONSTRUCTION CONTRACT
WHEREAS, the City Council of Maplewood, Minnesota has heretofore ordered made Improvement
Project 95-12, Birmingham Street Innovative Storm Sewer ,and has let a construction contract pursuant to
Minnesota Statutes, Chapter 429, and
WHEREAS, it is now necessary and expedient that said contract be modified and designated as
Improvement Project 95-12, Change Order 3.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF MAPLEWOOD,
MINNESOTA that the mayor and city clerk are hereby authorized and directed to modify the existing contract
by executing said Change Order 3 in the amount of $2,642.85. The revised contract amount is $202,513.77
The finance director is hereby authorized to make the financial transfers necessary to implement the
financing plan for the project. The project budget is increased by $2,642.85.
Original Project Financing: Revised Project Financing-:
LCMR Grant $100,000 LCMR Grant $88,000
MPCA 319 Grant $79,400 MPCA 319 Grant $79,400
SCSA $165.000 SCSA $183.515
Total Project: $344,400 Total Project: $350,915
98-10-106
RESOLUTION
ACCEPTANCE OF PROJECT
WHEREAS, the City Engineer for the City of Maplewood has determined that Birmingham Street
Innovative Storm Sewer, City Project 95-12 is complete and recommends acceptance of the project;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF MAPLEWOOD,
MINNESOTA, that City Project 95-12 is complete and maintenance of these improvements is accepted by the
City. Release of any retainage or escrow is hereby authorized.
7. Authorization for Program Participation
Approved Maplewood's participation in the alcohol compliance program administered through the
University of Minnesota.
8. Gambling Resolution -Hill Murray Mother's Club
Adopted the following gambling resolution.
98-10-107
RESOLUTION
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BE IT HEREBY RESOLVED, by the City Council of Maplewood, Minnesota, that the premises
permit for lawful gambling is approved for the Hill Murray Mother's Club to operate at Bleechers, 2220 White
Bear Avenue, Maplewood Minnesota.
FURTHERMORE, that the Maplewood City Council waives any objection to the timeliness of
application for said permit as governed by Minnesota Statute 349.213.
FURTHERMORE, that the Maplewood City Council requests that the Gambling Control Division of
the Minnesota Department of Gaming approve said permit application as being in compliance with Minnesota
Statute 349.213.
NOW, THEREFORE, be it further resolved that this Resolution by the City Council of Maplewood,
Minnesota, be forwarded to the Gambling Control Division for their approval.
9. Cigarette and Tobacco Sales-Freedom Value Center, 1535 Beam Avenue
Approved a cigarette and tobacco license for Freedom Value Center at 1535 Beam Avenue.
H. PUBLIC HEARINGS:
NONE
I. AWARD OF BIDS
NONE
J. UNFINISHED BUSINESS
NONE
K. NEW BUSINESS
1. Hillside Shopping Center Sign Plan Change (1690 McKnight Road North)
a. Acting City Manager Haider introduced the staff report.
b. Community Development Director Coleman presented the specifics of the report.
a Mayor Rossbach asked if anyone wished to speak before the Council regarding this matter. The
following person was heard:
Daniel Parker, Developer representing Hillside Center
Councilmember Koppen moved to approve the plans date-stamped September 15, 1998, for the comprehensive
sign plan revisions at the Hillside Shopping Center, 1690 North McKnight Road. The revised sign criteria shall
be as follows (additions are underlined and deletions are crossed out):
Tenant Signs
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1 n.,o ~ c .,,n .~,o o.- A sign maybe placed on the tower for the business that occupies the
tenant space behind the tower only. Other tenants may not place their sign on the tower. Tower-mounted
signs must be confined within the area marked by the four squares on the front face of the towers. Tower
signs must be comprised of individual letters. Cabinet signs are not allowed. If a tenant with atower-front
space has a sign on the tower, they may not have an additional sign on the main building fascia.
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2. w..°~~~°° ~°m~ Tenants may~lace their business name on the pylon sign. Pylon
signs are subject to staff approval.
3. Canopy signs are prohibited, except for Tom Thumb. See the Tom Thumb section below.
4. Eighteen inches shall be the maximum height of signs over the canopies for those tenants that are not
located behind one of the two towers. These tenant signs shall be located on the upper part of the tenants
store front just below the roof flashing.
Tom Thumb Signs
1. One 30-inch-tall, internally-lit sign of individual letters on the west elevation.
2. One sign on
the gas island canopy. This sign shall not extend above or below the canopy facade.
3. One silk-screened sign on the canvas canopy, one 18-inch-tall wall sign on the front of the building or one
sign on the front face of the west tower. The 18-inch-tall wall sign or tower sign shall not be used unless
Tom Thumb first removes the canopy sign and replaces the canopy material with one that matches the
others in the shopping center. If a sign is placed on the tower it must comply with the size, placement and
style requirements as noted above for tenant signs. Cabinet signs are not allowed.
4. "Tom Thumb" and the name of the fuel product sold maybe displayed m~°''^°~°°° on the pylon
sign. The pylon sign is subject to staff approval.
~ewer~igns
Canopy Upgrades
The shopping center owner shall remove the canopy signs and uniformly repair or replace all of the damaged
canopies, except Tom Thumb's, by the end of 1998.
Seconded by Councilmember Allenspach Ayes -all
2. Pleasantview Neighborhood Overlay, Establish Budget
a. Acting City Manager Haider introduced the staff report and presented the specifics of the report.
b. Mayor Rossbach asked if anyone wished to speak before the Council regarding this matter. No
one appeared.
Councilmember Allenspach moved to direct staff to begin meeting with the neighborhood and begin project
development for the streets in the Pleasantview Subdivision and establish a budget of $4,000.
Seconded by Councilmember Koppen Ayes -all
3. Copier Purchase -State Contract
a. Acting City Manager Haider introduced the staff report.
b. City Clerk Guilfoile presented the specifics of the report.
Mayor Rossbach moved to approve the 5 year lease-to-own state contract for the Kodak ImageSource 85AF
Copier from DANKA.
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Seconded by Councilmember Koppen Ayes -all
4. Parkside Neighborhood Public Safety Issue
a. Acting City Manager Haider introduced the staff report and presented the specifics of the report.
b. Mayor Rossbach asked if anyone wished to speak before the Council regarding this matter. The
following person was heard:
Kathleen Janemann, 721 Mt. Vernon
5. Winter Sand Approval -Amendment
a. Acting City Manager Haider introduced the staff report and presented the specifics of the report.
b. City Attorney Kelly explained the process and requirements of receiving quotations.
Mayor Rossbach moved to rescind its October 12, 1998 action on purchase of sand from CAMAS and approve
the purchase of winter sand from SA-AG, Inc.
Seconded by Councilmember Koppen Ayes -all
L. VISITOR PRESENTATIONS
NONE
M. COUNCIL PRESENTATIONS
1. Committee Reports - MIM Liquor Referendum, Bruentrup Farm
2. Motion by Mayor Rossbach, second by Councilmember Koppen to have staff investigate
the request for an additional pump at Holiday Station.
N. ADMINISTRATIVE PRESENTATIONS
1. Closed Session to discuss current litigation.
Councilmember Allenspach moved to close session to discuss pending litigation
Seconded by Councilmember Koppen.
City Attorney Kelly presented the specifics of the litigation.
Councilmember Koppen moved to approve the negotiations as described by Mr. Kelly.
Seconded by Councilmember Kittridge Ayes -all
O. ADJOURNMENT
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Mayor Rossbach moved to adjourn the meeting at 8:33 p.m.
Seconded by Councilmember Allenspach Ayes -all
Karen Guilfoile, City Clerk
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